Citizen Daily Brief

The SEC Won't Learn ($)

Weekly recap: SEC waffles, Solana experiments.
Jan 27, 20246 min read
The SEC Won't Learn
Published on Jan 27, 2024
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Sponsor: Mantle — Mass adoption of decentralized & token-governed technologies.

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BTC and ETH Reverse Fortunes

📊 Up and down. Crypto markets got off to a bloody start this week, with the total crypto market cap (TOTAL) declining 9%, but tokens have finished it off strong, paring back those weekly losses to just under 2%. How are different crypto sectors recovering?

Prices as of 11am ET 24hr 7d
Crypto $1.62T ↗ 0.5% ↘ 1.2%
BTC $41,863 ↗ 0.6% ↗ 0.5%
ETH $2,271 ↗ 0.2% ↘ 7.9%
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The SEC Won't Learn

1️⃣ SEC kicks ETH ETF can

Gary Gensler is on a mission to waste as much of his time as possible.

The SEC is holding off decisions on Ethereum ETFs from Grayscale and BlackRock until March, with further delays expected, possibly until May. This decision may be reflected in Ethereum’s price this week, dropping 9%. While Bitcoin also slipped to a two-month low of $38,500, it’s rallied back to around the $42k mark. 

The SEC, cautious after narrowly approving Bitcoin ETFs, is now evaluating Ethereum's Proof of Stake and centralization concerns — allegedly concerned about Ethereum’s potential for manipulation.

Most analysts weren't expecting to see approval come until May at the earliest because SEC incompetency is already so priced-in. And while the SEC has shown itself hilariously inadequate at actually stopping the adoption of crypto, they're likely going to try to fight this any way they can.

2️⃣ Solana token shake-up

The Solana Foundation upgraded its SPL token standard — Solana’s version of ERC20s — with new token extensions, offering features like confidential transfers and token swap fees.

This isn’t just techy stuff; it’s a big win for businesses looking to do more on blockchains. Solana’s token extensions let companies customize tokens to match their security and compliance preferences. This appeals to companies like Paxos and GMO-Z Trust Company, who both issue stablecoins and have already adopted these extensions.

3️⃣ CoW Swap fee switch

Following a vote by CoW DAO, the decision is in — the fee switch is officially activated.

Jan 23 kicked off their 6-month experiment on new fee models for the CoW Protocol. Fee switches are a big deal in crypto, with many protocols hesitant to turn them on. Less disruptive models will be tested first, like collecting fees from market orders. The moo-lah will be used to boost development, increase users, and enhance token utility. 

4️⃣ Terra Bankruptcy

Terraform Labs, creator of TerraUSD/LUNA, filed for Chapter 11 bankruptcy early this week. Filing for bankruptcy is their strategy to stay afloat as they maneuver through choppy waters. After the 2022 collapse of its tokens, TFL faces legal challenges in Singapore and the United States.

Do Kwon, the former CEO, is also currently detained in Montenegro for his own trials before extradition to the U.S.

5️⃣ Crypto Mining Moves

Relatively new to the mining scene since last summer, Swan Bitcoin is going full steam ahead. With $100 million in investments, they've got plans to up their mining muscle 44% by March and are still looking for more funding to continue expansion. Until now, the firm has mined more than 750 bitcoin across its seven mining sites and has three more in the works.

Meanwhile, OKX is shuttering its Mining Pool services. As of Friday, new-user registrations ceased with lights out for all mining pool-related services slated for Feb 26. Elsewhere, mining rig manufacturer Canaan Inc. secured $50 million in its second preferred shares financing. The funds will boost R&D, expand production, and support corporate initiatives.


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Read. Write. Own. w/ Chris Dixon

Andreessen Horowitz's Chris Dixon knows a thing or two about the web3 opportunity.

Chris returns to the podcast to discuss his new book, Read. Write. Own. which presents his mental model for the crypto internet. Chris is one of the most articulate people we know at explaining crypto as an evolution of the internet.

Bankless Citizens get Early Access to our Monday podcast and an exclusive Debrief from David & Ryan unpacking the interview👇

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What We Published

📰 Articles:

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5 Classic Crypto Top Signals on Bankless
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📺 Shows:

ROLLUP: Bitcoin Top? Ethereum’s Existential Risk | Restaking Summer Updates | Tornado Cash Trial on Bankless
Bankless Weekly Rollup Final Week of January, 2024
Tensor - Solana’s NFT Marketplace | Ilja & Richard Wu on Bankless
Tensor airdrop?
Decentralized Science | Brian Armstrong & Patrick Joyce on Bankless
Science is a consensus technology. So is crypto. How can we use crypto to fix science?

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.