Welcome to the latest edition of Chain Reaction, where we bring you the most important crypto news of the week. In this edition, we have some significant developments in the world of digital assets and decentralized social media. Let’s dive in!
Grayscale’s Lawsuit Victory Against the SEC
Grayscale, the digital asset firm, emerged victorious in its lawsuit against the U.S. Securities and Exchange Commission (SEC) regarding its bitcoin spot ETF application. This legal battle has been closely watched by the crypto community, and while there is still a 45-day review period, many experts believe that this is a positive step towards the approval of a bitcoin spot ETF.
The court ruling was seen as a crucial win for Grayscale, the world’s largest digital asset currency manager. The company, founded in 2014, manages products like the Grayscale Bitcoin Trust (GBTC) and currently owns a significant portion of outstanding bitcoins.
Fine Imposed on NFT Project by the SEC
While the SEC suffered a setback in its battle against Grayscale, it made headlines separately for settling its first enforcement case against an NFT project. The regulatory agency fined a Los Angeles media company $6 million, emphasizing its commitment to cracking down on non-compliant projects in the rapidly growing NFT space.
Loss of Hype for Friend.tech
The buzz surrounding the decentralized social media platform, Friend.tech, has fizzled out as daily transactions plummeted by a staggering 95%. Although initially hyped, the platform has failed to maintain its momentum, leading to skepticism within the community. This downturn raises questions about the long-term viability of decentralized social apps.
Grayscale’s victory against the SEC in the bitcoin spot ETF lawsuit brings hope for the approval of such ETFs in the future. However, the SEC’s enforcement action against an NFT project and the decline of Friend.tech highlight the challenges and regulatory scrutiny that persist in the crypto industry.
In other news, MoonPay has launched a venture arm to invest in web3 infrastructure, gaming, and fintech. Bitcoin startups, on the other hand, continue to face undercapitalization as the funding drought in the industry persists.
For the latest episode of Chain Reaction, Jacquelyn interviewed Craig Salm, the chief legal officer at Grayscale Investments. They discussed the implications of the court ruling in favor of Grayscale and its GBTC investment vehicle, as well as the potential impact on other firms seeking approval for bitcoin spot ETFs.
That’s all for this edition of Chain Reaction. Stay tuned for more crypto news and developments!