Montenegro plans to extradite Do Kwon to the US; US approves bill aimed at promoting blockchain technology; Spot Bitcoin ETFs May Be Approved Soon!
Spot Bitcoin ETFs May Be Approved Soon!
The progress of negotiations between the SEC and asset managers applying for Spot Bitcoin ETFs towards technical details means that authorities will soon approve, according to industry executives.
While the US Securities and Exchange Commission (SEC) continues its detailed negotiations with asset managers applying for spot Bitcoin ETF products, according to Reuters, negotiations between the regulator and issuers are focused on asset custody conditions, redemption mechanisms and investor risk disclosures. According to experts, this increases the likelihood that the authorities will approve spot Bitcoin ETF products soon.
10 January Critical Day
The SEC has to decide on Ark Invest’s spot Bitcoin ETF application, which made the first application on 10 January at the latest. Experts state that this date is of critical importance and that other eligible applications can be evaluated in the same period.
Possible ETF Approval Could Create Demand of $3 Billion Initially!
In addition, the SEC is also seeking detailed explanations from companies on these issues to ensure that investors best understand their risks as one of the focal points of the negotiations. However, spot Bitcoin ETF experts also predict that a possible approval could initially create a demand of $ 3 billion.
Montenegro plans to extradite Do Kwon to the US
Do Kwon, co-founder of Terraform Labs, will reportedly be extradited to the US. Kwon is expected to face new charges in the US.
According to a 7 December Wall Street Journal report, Montenegro’s Justice Minister Andrej Milovic plans to fulfil the extradition request of US authorities.
Kwon was arrested in Montenegro last March and sentenced to four months in prison for using a false passport. The Terra founder was also charged in the US and South Korea for the collapse of the Terra ecosystem.
Milovic said an announcement on the matter would be made public in due course.
It was stated that if Kwon is extradited to the US, he will face eight charges, including commodity fraud, securities fraud, wire fraud and market manipulation.
The collapse of Terraform Labs in May 2022 was one of the biggest catalysts that started the downturn in the cryptocurrency market.
It was largely unknown where Kwon resided until he was arrested in Montenegro. Many thought that the Terra founder was residing in Singapore.
US approves bill aimed at promoting blockchain technology
The House of Representatives unanimously passed a bill authorising the US Secretary of Commerce to increase the country’s use of blockchain technology by promoting blockchain applications.
On 5 December, the House of Representatives Energy and Commerce Committee adopted the 2023 American Blockchain Act H.R. 6572 with 46 votes in the session where 44 pieces of legislation were evaluated.
With the approval of the 13-page blockchain bill, Secretary of Commerce Gina Raimondo was tasked with “the use, implementation and competition conditions of blockchain technology”.
Cody Carbone, president of the Chamber of Digital Commerce, praised the committee for approving the bill, stating that this situation “will help maintain the US’s leadership in blockchain technologies and is sorely needed”.
Blockchain Association CEO Kristin Smith also emphasised in a statement before the adoption of the bill that the bill will increase the competitiveness of the USA in this newly developing field.
A “Blockchain Implementation Programme” will be established to support the use of technology. In addition, federal agency representatives, blockchain industry stakeholders and experts will establish advisory committees for the adoption of blockchain.
The crypto bill was one of at least 50 bills awaiting Congressional approval since 2022. The bill was rejected this year in a session without a House speaker.
However, this law is not expected to have a major impact like the 21st Century Financial Innovation and Technology Act, which will determine the process for controversial issues such as the acceptance of cryptocurrencies as commodities or securities and clarifying the jurisdiction of regulatory agencies.
The bill will then go to the Parliament for a vote. If the bill is adopted here, Senate approval will be required before Congress and the President approve it.