In this weekly recap, we cover:

  • Ethereum Foundation’s SEC Scrutiny: Following Ethereum’s switch to a proof-of-stake model, the SEC investigates the foundation for potentially aligning closer with security characteristics, intensifying regulatory debates.
  • Bleak Outlook for Spot Ether ETFs: James Seyffart and Eric Balchunas from Bloomberg adjust their predictions, now foreseeing a likely rejection of spot Ether ETFs by the SEC, amid a backdrop of increasing regulatory caution.
  • SEC’s Court Sanctions: A significant court decision sanctions the SEC for misleading conduct in its Debt Box lawsuit, highlighting concerns over the regulator’s approach amidst broader criticisms from Senators Jack Reed and Laphonza Butler on crypto ETFs.
  • Bankman-Fried’s Possible Decades-Long Sentence: U.S. prosecutors recommend a 40 to 50-year sentence for the FTX founder, spotlighting the severity of his alleged financial crimes as the defense argues for leniency.
  • Tornado Cash Trial Kicks Off: Alexey Pertsev faces trial in the Netherlands, accused of laundering $1.2 billion, raising questions about the implications for the crypto industry and the legal boundaries of software development.
  • Arrington Capital’s Vesting Schedule Controversy: The investment firm draws ire for sidestepping EtherFi’s token vesting schedule, selling nearly $700,000 worth of ETHFI tokens.