VanEck Files for a Solana ETF in the US

VanEck Files for US Solana ETF, Labeling SOL as a Commodity

VanEck has filed for the first spot Solana ETF in the US, which would track Solana's price and be listed on the Cboe BZX Exchange, asserting that SOL is a commodity. This follows the SEC's recent approval of spot ETFs for Bitcoin and Ethereum, although VanEck's Solana ETF, like the Ethereum filings, would not include a staking feature. The news caused an immediate pump in SOL's price.

The SEC has previously classified SOL as a security, reflecting the ongoing debate over crypto's status between the SEC and CFTC. Approval of Bitcoin and Ethereum spot ETFs was contingent on establishing CFTC-regulated futures markets and US futures ETFs. Analyst James Seyffart from Bloomberg Intelligence suggests that VanEck's Solana ETF might only launch in 2025.

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Coinbase Sues SEC, FDIC Over FOIA Document Requests

Coinbase has filed lawsuits against the SEC and FDIC for failing to comply with FOIA requests seeking information about an alleged effort to disconnect the crypto industry from banking. Filed in the US District Court for the District of Columbia, the lawsuits aim to compel these agencies to disclose details of their regulatory actions.

Coinbase claims that federal regulators, including the SEC, FDIC, and Federal Reserve Board, have employed various regulatory measures to undermine the digital asset industry. Additionally, Coinbase criticized the SEC for not releasing documents related to completed investigations, which it argues impedes understanding of the agency's enforcement actions against crypto.

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Paradigm Criticizes European Regulators' Stance on MEV

Venture capital firm Paradigm criticized the European Securities and Markets Authority (ESMA)'s stance on Maximum Extractable Value (MEV) in its comment letter regarding the MiCA Act enforcement. Paradigm argued that ESMA incorrectly equates MEV-related activities with traditional market abuse, leading to inconsistent regulation and unintended consequences.

The firm emphasized that there is no clear way to identify harmful MEV activities and that regulating blockchain microstructure could hinder innovation. Paradigm urged ESMA to promote industry solutions that enhance consumer welfare without imposing rigid regulations but did not propose a specific solution to MEV misuse. EU regulations remain as important as US ones.

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Crypto Hacks and Scams Loses Rise to $573 Million in Q2

Crypto suffered $572.7 million in losses from hacks and scams across 72 incidents in Q2 2023, according to Immunefi. That marks a 70.3% increase from Q1's $336.3 million and a 112% rise from Q2 2022's $265.5 million. Year-to-date, losses from hacks and fraud have exceeded $900 million, a 24% increase from last year.

DeFi was the primary target in Q1, but in Q2, CeFi took the lead, accounting for 70% ($401.4 million) of losses. Two major exploits on DMM Bitcoin and BtcTurk constituted 62.8% of the total losses. May saw the highest losses at $358.5 million. Immunefi noted that hacks dominated Q2, with Ethereum and BNB Chain being the most targeted networks.

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Data of the day

The ETF Possibility Score (by GSR), which combines Decentralization (33%) and Demand (67%) Scores, highlights that Ethereum leads, with pivotal spot ETH ETF filings approved and multiple ETFs expected this summer. Solana follows, being the only other asset besides Ethereum to score positively in both categories and outpacing the next closest digital asset, NEAR, by a large margin.

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More breaking news

• Stripe will incorporate Coinbase's Layer 2 Base into its crypto payout products, and Coinbase will add Stripe as a way to buy crypto with credit cards.
• A newly proposed ETF seeks to give traders and investors exposure to both Bitcoin and gold without having to buy either asset with its new product.
• Zeta Markets, a Solana-based DEX specializing in derivatives, launched its native token ZEX, and initiated an airdrop of 100 million tokens (10% of supply).
• CleanSpark has agreed to acquire GRIID Infrastructure, a rival Bitcoin mining firm, for $155 million in stock, with GRIID's stock falling over 50% after the news.
• MegaLabs, the developer of MegaETH, raised $20 million in a seed fundraising round led by Dragonfly. The deal comprises both equity and token warrants.

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