The Breakdown First Five - Tuesday, August 20, 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. Mnuchin Wallet Rule Dead

Almost four years after it was first proposed, the last minute Mnuchin self-hosted wallet rule has finally been withdrawn. The rule would have functioned as a ban on self custody and was the galvanizing event that produced the crypto lobby as it currently exists. After four years of going nowhere, the rule has been removed from the federal register and officially relegated to the dustbin of history. 

4. Young Crypto Holders Evenly Split

New polling from Coinbase shows that young crypto voters in swing states are bipartisan. The survey showed that 41% of under 35 crypto holders in swing states identify as Democrats, while 39% identify as republicans. Coinbase suggests this group agrees across party lines that the current financial system is stacked against them and that half will vote for a crypto-friendly candidate. They claim this demographic could swing the election. 

3. Solana ETF Pulled

Spot Solana ETFs applications have been withdrawn from exchange websites and the SEC database. Sources claim the SEC told the exchanges the applications were filed improperly as Commodity-based trusts. VanEck is still planning to move forward with other paperwork, but could struggle to get traction without a formal dismissal order to fight in court. It seems asset managers will need to wait until next year when a less hostile SEC could be in place. 

2. Gensler “Likely” Treasury Secretary?

An article published by the Washington Reporter claimed that Gary Gensler is “likely” to be appointed Treasury Secretary within a Harris administration. The reporting was thinly sourced and didn’t even appear to even support the headline. Crypto Twitter still ate it up. The author of the piece is a GOP congressional candidate and the outlet appears to be run by self-described “right-wing operatives.” Still, Gensler TresSec rumors have been persistent for years. 

1. Crypto Absent From Democrat Platform

The Democratic party has formally launched their election policy with no mention of crypto. So much for the crypto pivot. The closest the platform came was a pledge to keep the US on the “forefront of scientific discovery and innovation.” When it came to tech, the platform was focused on regulations and safety, ensuring that advanced categories like AI and space are kept under control.