A Week in Review: SEC， Ripple case nears conclusion， Grayscale withdraws ETF filing， & other news

Your weekly roundup of the 🔥hottest news in\xa0crypto .

May 5\xa0- May 11

#1

SEC files final response in Ripple XRP case

The U.S. Securities and Exchange Commission hasfiled a remedies brief challenging Ripple’s positionover penalties in their ongoing legal battle. The SEC seeks substantial fines against Ripple following Judge Torres’ ruling that XRP isn’t a security in programmatic sales. Ripple contends that any fines shouldn’t exceed \\$10 million, citing the absence of fraudulent intent. On the other hand, the agency insists Ripple misinterpreted the court’s order and downplayed its liability. Both parties are now awaiting a final ruling. Ripple chief legal officer Stuart Alderoty criticized the SEC, arguing that its reputation continues to decline.

#2.

Grayscale withdraws its Ether futures ETF application

Grayscale haswithdrawn its 19b-4 applicationfor an Ether futures exchange-traded fund just three weeks before the U.S. Securities and Exchange Commission was set to decide on it. On May 7, the cryptocurrency asset manager filed a notice of withdrawal for the Grayscale Ethereum Futures Trust with the SEC, which was scheduled to make a decision on May 30. Tradersrushed to short Ether after the announcement. Analysts believe the futures ETF application was a “trojan horse” to corner the agency into approving its spot Ether ETF proposal. As May 23 approaches, analysts are more skeptical about the SEC’s approval of a spot Ether ETF.

#3.

FTX proposes ‘billions in compensation,’ but not everyone’s happy

FTX hasproposed a new plan to compensate creditorsaffected by its 2022 collapse, offering to repay all claims plus additional compensation for the time value of their investments. This plan, which needs approval from the U.S. Bankruptcy Court in Delaware, offers a 118% recovery for claims under \\$50,000, covering 98% of its creditors. However, the compensation is based on the value of assets at the time of FTX’s bankruptcy in November 2022, not current prices, despite a significant 280% rise in Bitcoin’s price since then. The proposal has upset some investors, who are arguing for reimbursement at current market prices.

#4Prediction of the week

Bitcoin price to ‘sustain’ \\$265K level once boring consolidation ends — Analysts

Bitcoin’s pricecould continue its uptrend and triple its market cap, propelling its price above \\$260,000, according to the founder and CEO of on-chain and market analytics firm CryptoQuant, Ki Young Ju.

“Bitcoin network fundamentals could support a market cap three times its current size compared to the last cyclical top,” Young Ju explained in a May 8 post on X.

Young Ju was referring to a chart comparing BTC’s price and the associated hash rate to market capitalization ratio, highlighting the crypto’s ongoing volatility and the resilience of the Bitcoin network.

The chart reveals that Bitcoin’s hash rate-to-market cap ratio has increased significantly in 2024, which suggests a possible increase in market activity and investor interest.

#5FUD of the week

Ethereum L2 Eclipse CEO steps down amid sexual misconduct claims

Neel Somani, founder and CEO of Ethereum layer-2 blockchain Eclipse,announced he is “temporarily reducing” his roleas the public face of the firm due to sexual misconduct allegations. In a May 9 post on X, he denied the accusations, emphasizing their falsity and stating, “I never sexually assaulted or harassed any woman.” Somani said Eclipse’s leadership will manage responsibilities, while he works to clear his name.

#6FUD of the week

Ex-Digitex Futures Exchange CEO pleads guilty to violating Bank Secrecy Act

Adam Todd, founder and former CEO of Digitex Futures Exchange,pleaded guilty in federal courtto failing to establish an Anti-Money Laundering (AML) program at the firm. The U.S. Attorney’s Office for the Southern District of Florida announced on May 7 that Todd admitted to “willfully causing” the exchange to violate the Bank Secrecy Act. Indicted in February, Todd operated an unregistered futures platform for U.S. customers between 2018 and 2022 without implementing AML and Know Your Customer (KYC) programs. He faces up to five years in prison and a \\$250,000 fine.

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