Alpaca Finance Institutional Newsletter #90
Highlights
- Coinbase Sues SEC and FDIC Over FOIA Noncompliance
- 21Shares Makes Second Spot Solana ETF Request This Week Amid Institutional Interest
- SEC Sues Consensys Over Unregistered Brokerage and Staking Services via MetaMask
Coinbase has filed lawsuits against the SEC and FDIC, alleging noncompliance with FOIA requests related to Ethereum’s transition to proof-of-stake. Filed on June 27, the lawsuits claim these agencies are attempting to exclude the crypto industry from banking services. Coinbase seeks records on Ethereum 2.0 and past investigations involving Zachary Coburn and Enigma MPC. Coinbase argues that federal regulators are using all available tools to undermine the digital asset industry, describing the actions as coordinated efforts to cut off essential banking services. The lawsuits are part of Coinbase’s broader conflict with U.S. regulators, advocating for clearer regulatory guidelines.
Asset manager 21Shares has applied for a spot Solana ETF, becoming the second major firm this week, and the third this month to do so. The 21Shares Core Solana ETF aims to track Solana’s (SOL) performance by aggregating trading activity across major exchanges. Coinbase Custody Trust Company will serve as the custodian. Despite no immediate impact on SOL’s price, which was $140.2 at press time, the filing underscores increasing confidence in Solana as a viable institutional investment. This surge in interest follows similar applications by VanEck and Canadian fund manager 3iQ, reflecting anticipation of regulatory changes and increased acceptance of crypto assets.
The U.S. SEC has filed a lawsuit against Consensys, the parent company of MetaMask, alleging it has operated as an unregistered broker and engaged in the unregistered offer and sale of securities through MetaMask Swaps since 2020. The complaint claims Consensys collected over $250 million in fees by brokering crypto transactions and offering staking services without proper registration, thus depriving investors of crucial protections. The SEC seeks a permanent injunction, civil penalties, and other equitable relief against Consensys for these alleged violations.
News
Coinbase sues SEC, FDIC over FOIA noncompliance
Mt. Gox trustee to start Bitcoin, Bitcoin Cash repayments in July
Bybit surpasses Coinbase in market share after Binance’s decline
Crypto platform Yield App shuts down citing FTX losses
Products
21Shares becomes second major firm to apply for a spot Solana ETF this week
Coinbase and payment processor Stripe form partnership for onboarding
Bitcoin payments app Strike launches in the UK following European rollout
Hamster Kombat destined for Guinness World Record?
Regulation
SEC sues Consensys over MetaMask’s brokerage, staking services
Spot Ethereum ETF launch delayed by SEC comments
IRS finalizes controversial tax reporting rule for brokers, punts decision on DeFi
EU crypto sector faces disruption from next week’s MiCA rules targeting stablecoin activity: analyst
Funding
South Korean crypto VC Hashed expands presence to Abu Dhabi: report
Funding Wrap: Vitalik Buterin backs MegaLabs in its seed raise
Crypto funding: Firms concentrated heavily in DeFi sector raise $50M
Solana Ecosystem’s DePIN Project Shaga Secures $1 Million Angel Round Funding
