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Nasdaq's Request to List and Trade Options on Bitcoin ETF Approved by SEC
The SEC has given the green light to a change in the rules, one that permits listing and trading options on BlackRock's Bitcoin ETF, iShares Bitcoin Trust (IBIT).
Following the launch of several bitcoin-linked ETFs in the US in March, BlackRock has been pushing hard for this approval. To address concerns of market manipulation, "the SEC approved an amendment that limits positions on IBIT options to just 25,000 contracts." Nasdaq has called this limit "extremely conservative".
Republican Lawmakers Put Pressure on the SEC to Reverse SAB 121 Ruling
More than forty Republican Lawmakers have signed their names to a letter sent to the SEC, expressing a desire for the regulator to "revoke its controversial crypto custody rule, known as Staff Accounting Bulletin No. 121 (SAB 121)". The rule, introduced in March 2022, requires keepers of cryptocurrencies to report digital assets as liabilities on their balance sheets. Lawmakers argue that "the rule deviates from traditional accounting practices and could in fact increase risks to consumers while hampering financial innovation".
In July of this year, President Biden vetoed an attempt to prevent the bill from passing. However, the group in opposition (including House Financial Services Committee Chair Patrick McHenry and Senator Cynthia Lummis), keep pushing for it to be revoked/rescinded. The SEC's approach to regulating crypto, including its over-reliance on litigation to set industry standards, is causing much frustration among crypto-holders and has drawn criticism from federal judges.
Caroline Ellison, Former Alameda Research CEO, to Serve Two Years in Prison
Coindesk reports that the former CEO of Alameda Research (one of the companies associated with the Sam Bankman-Fried fraud case), Caroline Ellison, will serve up to two years in prison for her involvement in the fraud committed by SBF (75% before review for supervised probation). Compared to SBF's twenty-five year sentence, Ellison's is a much shorter sentence, presumably because she cooperated with the investigations into SBF's dealings and in building a case against him. However, that hasn't allowed her to get out of jail free, since she was found complicit in the fraud.
OpenAI's X Account Hacked to Promote a Crypto Scam
On Monday, an OpenAI X account (which posts official news updates from OpenAI) was hacked to promote a crypto scam. The fraudulent post announced the launch of an "$OPENAI" token associated with OpenAI. The post claimed that the token would serve as a bridge between artificial intelligence and blockchain technology.
The scam post conned a number of OpenAI's nearly 54 000 followers on X, suggesting that holders of the token would gain access to upcoming beta programs. It also included a link to a fraudulent Website, which mimicked OpenAI’s legitimate site, although the URL did not match OpenAI’s official domain. The site encouraged visitors to connect their crypto wallets, presumably in an attempt to steal funds therefrom. The misleading post has since been deleted.
PayPal allows Buying and Selling Cryptocurrencies
This option is only available to business accounts.
"Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers," said PayPal senior vice president of blockchain, cryptocurrency, and digital currencies, Jose Fernandez da Ponte. "We're excited to meet that demand by delivering this new offering, empowering them to engage with digital currencies effortlessly."
I wonder what exceptionally high fees the company is going to charge for this. I'm guessing anywhere between 25 and 50%! I also wonder why anyone would want to use PayPal when a plethora of other options exist (such as NowPayments), many with APIs that are simple to use.
Post image from Decrypt.co/Shutterstock
That's likely all from me this weekend. I hope you have an excellent one!
Snark out!
