Here is what we have on the newsletter today🔥

• BlackRock files paperwork for Bitcoin Trust (ETF)👀

• BlockFi sues state for not accepting surrendered license🤯

BlackRock files paperwork for Bitcoin Trust (ETF)👀

BlackRock's iShares has recently taken a significant step by filing paperwork for a spot Bitcoin exchange-traded fund (ETF).

It is worth noting that the Securities and Exchange Commission (SEC) has previously rejected several attempts by other fund companies to launch a similar ETF focused on Bitcoin.

The proposed ETF, named the iShares Bitcoin Trust, aims to primarily consist of Bitcoin held by a custodian on behalf of the Trust. In this case, the chosen custodian for the fund will be Coinbase, a well-known cryptocurrency exchange.

This selection highlights Coinbase's reputation and expertise in providing secure custodial services for digital assets.

We wonder how is that going to affect their lawsuit with the SEC though🤔

BlackRock's involvement in the initiative is particularly noteworthy due to its status as the world's largest asset manager. Furthermore, the influence and political power of the company's CEO may pose additional challenges for the SEC in rejecting the ETF proposal.

The ETF will be benchmarked against the CME CF Bitcoin Reference Rate, a widely recognized and reputable pricing index for Bitcoin. By utilizing this benchmark, the iShares Bitcoin Trust aims to provide investors with a reliable and transparent basis for evaluating the performance of the ETF.

It is important to note that this move by BlackRock comes at a time when U.S. regulators are intensifying their scrutiny of the cryptocurrency industry.

Nonetheless, the participation of such a prominent financial institution like BlackRock indicates that Bitcoin continues to attract interest from major players in the traditional finance sector.

While the SEC's decision regarding the approval of the iShares Bitcoin Trust remains uncertain, the filing of the paperwork demonstrates the ongoing efforts to establish a regulated and accessible investment vehicle for Bitcoin. Investors and industry observers will be eagerly watching for further developments in this space.

BlockFi sues state for not accepting surrendered license🤯

BlockFi, a crypto exchange that recently filed for bankruptcy, is taking legal action against the Connecticut Banking Commissioner for refusing to accept its surrendered license.

Can you believe that they can refuse a surrendered license?🤣

The regulator's insistence on an expensive court proceeding instead of accepting the license surrender has become a point of contention between the two parties.

BlockFi, like many others, faced significant losses due to the collapse of FTX and had a substantial exposure of $1.2 billion to the exchange and Alameda Research.

In an attempt to address the situation, BlockFi initially sought to surrender its license in December 2022.

However, the regulator did not respond to the surrender request and subsequently revoked the license in February 2023.

In an effort to avoid a costly court proceeding, BlockFi offered to surrender the license again. However, the regulator informed the company that it would have to pay a $1 million fine in order to proceed with the surrender.

This has raised concerns for BlockFi, as the associated costs and resources required for a court case could be substantial. The company accuses the department of prioritizing its own financial interests rather than following proper regulatory protocols.

BlockFi's objective now is to halt the court proceedings, develop a restructuring plan, and demonstrate that the department violated regulations by revoking its license.

A court proceeding has been scheduled for July 20, and BlockFi has sent a summons to the banking commissioner to present its arguments against the proceeding.

Congress wants to remove Gary Gensler🔥

US lawmakers have introduced the "SEC Stabilization Act" with the intent to remove Gary Gensler, the Chair of the Securities and Exchange Commission (SEC).

The bill has been filed in response to concerns raised by several lawmakers regarding Gensler's leadership and its impact on the US capital markets.

Representative Warren Davidson, among others, expressed the view that the US capital markets need protection from what they perceive as a tyrannical Chairman, referring to Gensler.

The proposed bill seeks to address these concerns by removing Gensler from office, reshaping the power dynamics within the SEC, introducing a sixth commissioner, and establishing an executive director position.

The lawmakers behind the bill, who are known for their pro-crypto stance, criticize Gensler's approach and decision-making as the head of the SEC. While the bill does not explicitly mention cryptocurrencies, its provisions could potentially have implications for the crypto industry given Gensler's involvement in shaping crypto regulations during his tenure.

Representative Tom Emmer, a co-author of the bill, emphasizes the need for sensible changes and a focus on investor protection. The introduction of this bill signals a push for adjustments within the SEC and its leadership to align with the lawmakers' vision.

This could be one of the best moves congress has made in the past years for the web3 industry as a whole. Time to see it play out.

✨Bonus News✨

Disclaimer: This is not any kind of financial advise. This newsletter is solely informational; it does not constitute investment advice, a solicitation to buy or sell any securities, or a recommendation regarding how to manage your money. Be cautious and conduct your own study, please.