Senate Shakes Up Crypto Rules!

The U.S. Senate passed H.J.Res. 109 on May 16, nullifying the SEC's Staff Accounting Bulletin No. 121.

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Here's what we've got for you today:

  • Senate Overwhelmingly Votes to Overturn SEC Crypto Rule on Banks

  • Bitcoin ETF Volumes Hit 7-Week High as BTC Nears $67K

  • NOT Drops 55% as Airdrop Farmers Sell Off Post-Exchange Launch

  • JPMorgan Report Foresees Challenges for Bitcoin After Halving

The United States Senate has passed a joint resolution in favor of H.J.Res.109, nullifying the SEC’s Staff Accounting Bulletin No. 121.

  • The U.S. Senate passed H.J.Res. 109 with a 60-38 vote on May 16, nullifying the SEC's Staff Accounting Bulletin No. 121.

  • This SEC rule required banks to hold customers' digital assets on their balance sheets and maintain capital against them.

  • President Joe Biden recently shared in a statement that he intends to veto the resolution as he believes the rule protects crypto-asset investors and the broader financial system.

This week saw the seven largest U.S. spot ETFs manage $5.65 billion in volume between them.

  • Hedge fund manager Thomas Kralow is very bullish as he believes the surge in trading activity is a positive market indicator.

  • The spot Bitcoin ETFs saw consistent positive inflows every day this week.

  • Even the Grayscale Bitcoin Trust (GBTC) saw some renewed interest with inflows of $27 million on May 16 and $4.6 million on May 17.

Notcoin (NOT) is a web3 gaming project that started on Jan. 1 in The Open Network (TON) ecosystem.

  • NOT attracted a lot of attention recently after major crypto exchanges like Binance, OKX, KuCoin, and Bybit announced that they will be adding the token to their launchpads.

  • In just its first hour, NOT generated $294 million in trading volume, and has attracted around 35 million users to its ecosystem so far.

  • Despite initial success, NOT experienced a 55% price crash over the past day as airdrop farmers are selling off their tokens.

The dynamics of Bitcoin mining have shown some major changes after the latest halving event.

  • JPMorgan previously anticipated a drop in Bitcoin's hashrate due to unprofitable miners exiting after the halving, which is now happening.

  • The bank is still cautious about Bitcoin's near-term prospects as it believes there is a lack of new positive catalysts and reduced retail investor demand.

  • This year's halving coincided with the launch of the Runes protocol, which temporarily increased transaction fees and helped miners offset reduced block rewards.



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