GM DOers! š
Ethereum got kicked in the balls this weekā¦ hard. š«£
First up, we found out that the Ethereum Foundation is being investigated by a state authority.
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Secondly, the SEC has delayed their decision on VanEckās spot ETF application ā but we were expecting that. š¤·
SEC delays decision on VanEck spot Ethereum ETF, asks for public comments
The SEC is delaying its decision timeline on another spot Ethereum exchange-traded fund, the VanEck Ethereum ETF.
Thirdly, the Chairman of the U.S. House Committee on Financial Services says that the SEC and Gary Gensler are looking to classify $ETH as a security. šØ
This is contrary to the @CFTC's assessment and the @SECgov's prior actions.
Congress decides the SEC's jurisdiction and budget, Chair Gensler doesn't get to make it up as he goes along.
After publicly defining #Bitcoin as a commodity multiple times, @GaryGensler's response:
Watch Chairman McHenry grill Gensler on his contradictory views on digital assets
Ouchā¦ Thatās some hard kicks. But letās debunk each one to see if any of this FUD has any substance.
P.S. - At the end, Iām sharing what Iām doing with my $ETH, so you know how to put it to work.
P.S.S. - Weāre also highlighting the NFT Of The Month, so stick around.
Letās go. ā¬
The Ethereum FUD Explained šØ
The Ethereum Foundation has just entered the crosshairs of the SECā¦ Again.
Earlier this week, a so-called āWarrant Canaryā, aka the colorful bird below, disappeared from Ethereum Foundationās website.
This bird was basically a way of telling people that the Foundation has not received any actions (i.e. lawsuits) or requests (i.e. subpoenas) from the government or law enforcement authorities.
With it gone, it suggests, in a discreet way, that the Ethereum Foundation has been approached by government authorities.
In the GitHub code, the dev who removed this canary left a note saying āthis commit removes a section of the footer as we have received a voluntary enquiry from a state authority that included a requirement for confidentialityā.
In other words, the FBI is knocking on the door.
This is part of a larger investigation into Ethereum, which apparently started after the merge (from proof-of-work to proof-of-stake).
A report from Fortune indicates that the SEC is requesting documents from several U.S. firms to support the argument that $ETH should be considered a security.
Now, thereās basically 2 explanations for this investigation.
1/ Itās completely normal for the SEC to do their due diligence, especially with a final decision on several ETF applications coming up in May.
Besides, crypto firms are pretty used to getting subpoenas from the SEC by now.
2/ This is a coordinated attack against Ethereum, and a way for Gary Gensler and the SEC to find reasons why they should deny the ETF in May.
The latter is obviously what most crypto people think is going on here.
Thatās interesting in light of Larryās 576-1 record and the simple fact that he is unequivocally more powerful than Gary.
Wonder whatās gonna happen.
Regardless, the SEC chose to delay their decision on VanEckās spot Ethereum ETF application, something everyone was expecting either way.
The main deadline weāre watching for in regards to the spot ETH ETF is May 23rd.
Analysts from Bloomberg and prediction markets are estimating a 25% likelihood that the approval will happen in May.
Itās not looking good, and before the approval can happen, the SEC needs to officially admit that $ETH isnāt a security.
Is $ETH a Security or Not? š¤·
Honestly, I barely understand what a security is.
But if Ethereum gets slapped with that label, I know it means a lot more rules and paperwork for anyone wanting to play with it ā kind of like needing a permit to throw a Frisbee in the park.
I also know itās going to be bad news for my bags. š
So Iāll let Paul Grewal, the Chief Legal Officer at Coinbase tell us whether or not Ethereum is a security.
TL;DR, he says itās not. Here are a few reasons why.
1/
2/
3/
Transcript ā #87 in Securities and Exchange Commission v. Ripple Labs Inc. (S.D.N.Y., 1:20-cv-108...
TRANSCRIPT of Proceedings re: CONFERENCE held on 3/19/2021 before Magistrate Judge Sarah Netburn. Court Reporter/Transcriber: Lisa Picciano Franko, (212) 805-0300. Transcript may be viewed at the...
4/
5/
This point is actually pretty important, and sustained by Brian Quintenz, the Global Head of Policy at a16z.
1/ When the SEC allowed ETH Futures ETFs to trade on its regulated security exchanges, it explicitly acknowledged the status of the underlying, ETH, as being a non-security and outside of its jurisdiction.
6/
Conclusion
Wrapping Up ā What Should You Do Now? š¤
1/ Stop worrying!
2/ Ethereum is not a security (I think we established that above).
3/ Ethereumās ETF is coming this year
They just deposited $100M to test out Ethereum.
I wonder who wins.
Even if the ETF applications get denied in May, thatāll only lead to a bunch of lawsuits against the SEC, which will lead to an inevitable approval at some point.
We already know Grayscale will sue, but Coinbase joining that party would be a sight to behold.
Fuck the SEC.
4/ Zoom out. The world's largest asset manager, BlackRock, is building on Ethereum.
Bullish ETH
Clearly, $ETH is undervalued at todayās prices, so keep stacking, put your coins to work and chill. Hereās what Iām doing right now.
Also, hereās a SUPER helpful guide put together by our G.O.A.T community member Kuba, on how to navigate LRTs (liquid restaking tokens).
If youāre not already in our Discord, then WTF are you doing? Join us now!
The NFT Of The Month is... The Plooshies
Plooshies is a collection that showcases 3333 fully rigged and animated 3D models of 11 unique characters.
The project aims to bring childhood memories back to life through interactive storytelling.
Next week, we're doing Token Of The Month, where we'll feature 4 tokens suggested by our community. Reply to this email with your suggestion on which coins we should pick.
Thanks for reading. And remember, you're strong, youāre powerful, youāre alpha! ā¤
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