Removes – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Fri, 30 May 2025 13:11:35 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.7 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 Removes – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 SEC removes key hurdle for Ethereum ETFs by exempting staking from securities rules https://earlybirdsinvest.com/sec-removes-key-hurdle-for-ethereum-etfs-by-exempting-staking-from-securities-rules/ https://earlybirdsinvest.com/sec-removes-key-hurdle-for-ethereum-etfs-by-exempting-staking-from-securities-rules/#respond Fri, 30 May 2025 13:11:34 +0000 https://earlybirdsinvest.com/sec-removes-key-hurdle-for-ethereum-etfs-by-exempting-staking-from-securities-rules/

The US Securities and Exchange Commission (SEC) has issued new guidance clarifying that common forms of crypto staking do not fall under securities laws.

On May 29, the SEC’s Division of Corporation Finance confirmed that those participating in staking activities, including self-staking, delegated staking, custodial, and non-custodial forms, are not required to register these actions with the financial regulator.

The financial regulator stated:

“It is the Division’s view that participants in Protocol Staking Activities do not need to register with the Commission transactions under the Securities Act, or fall within one of the Securities Act’s exemptions from registration in connection with these Protocol Staking Activities.”

The update also addresses the use of related services. According to the SEC, providing features such as early withdrawal options, bundled rewards, slashing protection, or asset aggregation to meet minimum staking thresholds does not automatically classify these arrangements as securities offerings.

The agency emphasized that such enhancements do not alter the fundamental nature of staking under federal law.

Staking is integral to blockchain networks running a proof-of-stake () consensus mechanism, where participants lock up their tokens to validate network transactions and earn rewards.

This process has generally proven contentious over the years as the SEC, under former Chair Gary Gensler, pursued legal actions against firms participating in the activity.

SEC commissioners react

SEC Commissioner Hester Peirce, a long-time advocate for clearer crypto regulation, supported the decision. She described staking as an essential part of proof-of-stake systems, where users contribute to network security by voluntarily locking up their tokens.

Peirce stressed that regulatory uncertainty has discouraged American users from engaging with these networks, despite their importance to blockchain infrastructure.

She said:

“The Division’s statement is applicable to persons who self-stake certain covered crypto assets on a proof-of-stake or delegated proof-of-stake network.”

However, not everyone at the Commission agreed. Commissioner Caroline Crenshaw criticized the staff’s interpretation, warning that it strays from legal precedent.

She argued that the Howey Test, a key legal standard used to identify securities, was overlooked in the analysis.

Crenshaw added:

“This is yet another example of the SEC’s ongoing ‘fake it ‘till we make it’ approach to crypto – taking action based on anticipation of future changes while ignoring existing law.”

What does this mean for ETFs?

The SEC’s position could have significant implications for spot Ethereum exchange-traded funds, which are currently barred from staking their assets.

Nate Geraci, president of the ETF Store, noted that this guidance removes a major regulatory obstacle for funds seeking to stake Ethereum or other proof-of-stake assets.

However, Geraci pointed out that further clarity is still needed from the Internal Revenue Service (IRS), particularly around how staking rewards will be treated within the grantor trust structures typically used by ETFs.

If staking integration into these ETFs proceeds smoothly, it could unlock a new revenue stream for investors and enhance the appeal of crypto investment products within regulated markets

Meanwhile, Ethereum ETFs have been gaining momentum regardless, posting nine consecutive days of inflows totaling over $480 million.

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]]> https://earlybirdsinvest.com/sec-removes-key-hurdle-for-ethereum-etfs-by-exempting-staking-from-securities-rules/feed/ 0 39152 US Treasury removes tornado cash from OFAC sanctions list https://earlybirdsinvest.com/us-treasury-removes-tornado-cash-from-ofac-sanctions-list/ https://earlybirdsinvest.com/us-treasury-removes-tornado-cash-from-ofac-sanctions-list/#respond Sat, 22 Mar 2025 18:10:52 +0000 https://earlybirdsinvest.com/us-treasury-removes-tornado-cash-from-ofac-sanctions-list/

The Treasury lifted sanctions on Tornado Cash, an Ethereum-based smart contract mixer, following a series of legal defeats and administrative challenges.

“Based on a government review of novel legal and policy issues raised by the use of financial sanctions on financial and commercial activities occurring within the evolving technology and legal environment, we exercised our discretion to remove economic sanctions on tornado cash reflected in the Treasury’s Van Loon v. Treasury’s Monday declaration.”

A quick overview of Tornado Cash Story

Tornado Cash was launched in 2019 as a decentralized protocol to enhance trading privacy in Ethereum.

In August 2022, the mixer was added to the Foreign Asset Management (OFAC) List (OFAC) list, including licensed individuals and entities. US law enforcement alleged that tornado cash has facilitated more than $7 billion in money laundering, including funds related to North Korea’s Lazarus Group.

This banned Americans using co-founders’ services and legal measures against Roman Storm and Rome Semenov.

Six Tornado Cash users, supported by Coinbase, sued the Ministry of Finance and challenged sanctions.

A Federal Court for Texas ruled in January 2025 that smart contracts could not be approved. We determined this was a decision endorsed by the Fifth Circuit in November 2024.

Today, the Treasury has raised concerns about continuing illegal cryptographic activity, citing evolving legal and technical considerations, and has strengthened its intention and authority to continue DPRK sanctions, but has officially lifted the sanctions.

The tension continues

Nevertheless, the Ministry of Finance has strengthened its intention to enforce sanctions against the Democratic Republic of Korea (DPRK). This is an ongoing source of geopolitical tensions, considering the recent over $1 billion hacks from BYBit, claimed to have been carried out by Lazarous, a hacking group with a DRKP tie.

“I am deeply concerned about important state-sponsored hacking and money laundering campaigns aimed at stealing, acquiring and deploying digital assets of the South Korean Democratic Republic (DPRK) and the Kim administration,” the agency said.

“The Treasury will continue to monitor transactions that may benefit malicious cyber actors and DPRKs. People in the US should pay attention before engaging in transactions that present such risks.”

While lifted sanctions appear to be good news for financial privacy software developers, it is too early to know what this means for the bitcoin and the crypto industry in general, or whether it will affect future litigation against Samurai Wallet developers.

“Digital assets present vast opportunities for innovation and value creation for the American people,” said Treasury Secretary Scott Bescent. “Securing the digital asset industry from abuse by North Korea and other illegal actors is essential to establishing US leadership and ensuring that Americans can benefit from financial innovation and inclusion.”

]]> https://earlybirdsinvest.com/us-treasury-removes-tornado-cash-from-ofac-sanctions-list/feed/ 0 26628 WAX Removes Wallet Creation Fee to Improve Accessibility https://earlybirdsinvest.com/wax-removes-wallet-creation-fee-to-improve-accessibility/ https://earlybirdsinvest.com/wax-removes-wallet-creation-fee-to-improve-accessibility/#respond Mon, 17 Mar 2025 15:01:37 +0000 https://earlybirdsinvest.com/wax-removes-wallet-creation-fee-to-improve-accessibility/

The Worldwide Asset eXchange (WAX) has removed the fee required to create a blockchain account through its Cloud Wallet.

Previously, new users had to pay 5 $WAXP to set up an account, a measure originally introduced to prevent automated bot activity. The removal of this fee is intended to make it easier for new users to join the WAX blockchain and encourage broader adoption by reducing the financial barrier to entry.

WAX stated that its blockchain “is stronger than ever” and is therefore making account creation easy and free.

WAX Removes Wallet Creation Fee to Improve Accessibility
Source: WAX

What is WAX?

WAX is a blockchain network designed for high-volume transactions, with a particular focus on gaming, digital assets, and NFTs.

Unlike some other blockchains, WAX does not charge transaction fees, allowing users to interact with dApps and trade assets without incurring costs for each transaction.

The blockchain is built to support large-scale activity, processing up to 10,000 transactions per second. It has been adopted by various NFT projects, game developers, and digital marketplaces due to its efficiency and ease of use. WAX also offers a Cloud Wallet, which allows users to manage their assets without needing extensive technical knowledge of blockchain technology.

WAX Removes Wallet Creation Fee to Improve Accessibility
Source: WAX

What’s next for WAX?

The removal of the wallet creation fee is one of several changes WAX has planned for 2025. Initially, the fee was introduced to prevent excessive bot activity and automated account creation, but WAX has stated that its security measures have since evolved, allowing the paywall to be lifted.

In addition to this change, WAX has is rolling out several upgrades this year to enhance its blockchain infrastructure, developer tools, and marketplace. The Cloud Wallet will receive mobile apps for iOS and Android, expanded support for side chains, Testnet environments, and EVM compatibility.

On the blockchain level, WAX is improving security and decentralisation, including quantum-proofing, decentralising its Random Number Generator (RNG) system, and making its Multichain Bridge open-source. Performance optimizations, such as RAM efficiency improvements, will help scale the network whilst maintaining smooth operations.

For developers, WAX is simplifying node deployment and expanding documentation to support dApp integration. Meanwhile, the vIRL Marketplace will undergo improvements to enhance the trading experience.

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