The Breakdown First Five - Friday, May 24, 2024

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. House Rejects CBDCs

The House has voted for Tom Emmer’s bill which prevents the Fed from issuing a CBDC without congressional approval. The vote was largely along partisan lines, making the GOP the only party taking a stand against financial surveillance. The bill articulates that a CBDC should have cash-like qualities of being open, permissionless and private. The legislation is unlikely to pass the Senate, but caps off a powerful statement week for House GOP lawmakers. 

4. Last Cycle Cleanup Continues

The SEC have won their case against crypto influence Ian Balina. The court ruled that Balina violated securities law over his involvement in a 2020 ICO and that the tokens offered are securities. Balina was a high profile promoter during the last cycle, shilling the token across social media platforms. The SEC alleged that Balina failed to disclose a 30% bonus paid for his promotional efforts and operated an illegal investment pool. 

3. Doge Departed, Much Sad

Kabosu, the face of Dogecoin has passed away at the age of 17. The internet’s goodest doge departed peacefully in her Narita City home. The Shiba Inu’s health had been going downhill for several years, but she still enjoyed walks and was getting the best treatment available, thanks in part to generous donations from the crypto community. Rest well Kabuso.

2. ETH ETFs Approved

The SEC has capitulated. ETH ETFs are approved. Or at least they will be. The SEC made the unusual decision to approve 19b-4 filings while S-1s are still being finalized. That process is expected to take weeks or months before the products can begin trading. Commissioners didn’t vote on the products, deferring to staff recommendation. We got very little explanation and no long form statements. This probably also means that ETH is officially not a security. 

1. Crypto Goes to Washington

This week has been the most important week ever for crypto policy. Crypto advocates descended on DC for a string of consequential votes and we got even more than we bargained for. Although the legislation might be imperfect, the industry made the case for its continued existence and won. The rise of the crypto voter showed up in polling and caused panic at the White House. This could be the beginning of ‘and then you win.’