This week has seen major advancements in the crypto industry. From significant regulatory rulings in the United States to noteworthy developments within individual cryptocurrencies and government interventions, the most recent crypto news is influencing the trajectory of digital assets.
In this piece, we'll delve into the top three trending subjects in cryptocurrency news for the third week of May and furnish specifics on each occurrence.
SEC Decision on Spot Ethereum ETFs Looms
According to Coinpaprika, this week, the U.S. Securities and Exchange Commission (SEC) will make a major decision regarding spot Ethereum exchange-traded funds (ETFs).
High-profile investment firms are eagerly anticipating this decision, which could significantly impact the cryptocurrency market. The deadline for the SEC to decide on various applications, including VanEck's, is approaching.
Experts predict that the SEC may reject the applications due to insufficient engagement with ETF issuers. Bitwise's Matt Hougan suggested that a lack of data might be a reason for the potential rejection.
Legal analyst Scott Johnsson believes the SEC might classify Ethereum as an unregistered security. This pending decision is already influencing Ethereum's market performance.
On May 16, Ethereum hit a new yearly low against Bitcoin at 0.044 BTC but has since recovered by about 6%. Currently, it is trading at $3,104, according to CoinGecko.
The SEC’s decision regarding a spot Ethereum ETF is crucial for the cryptocurrency market.
Approval could attract institutional investment and mainstream acceptance, while a rejection could highlight regulatory uncertainties.
The SEC has been cautious due to concerns over market manipulation and lack of surveillance, which led to the rejection of previous Bitcoin ETF applications. If Ethereum is deemed an unregistered security, it would impact ETF approvals and its regulation in the U.S.
Cardano Shows Notable Developments Amid Market Surge
Cardano (ADA) is making headlines with a huge increase in whale activity and bullish sentiment.
Recent market excitement has seen several cryptocurrencies register green, with Cardano standing out due to notable developments.
Cardano whales have increased their holdings by 11% over the past month, now controlling 6.71% of the total ADA supply, signaling bullish sentiment.
Cardano whales holding between 100m and 1b $ADA have added 11% to their balances over the past 30 days.
— IntoTheBlock (@intotheblock) May 15, 2024
This group now holds 6.71% of the entire $ADA supply. pic.twitter.com/nSe4lXE96R
Retail investors are also showing strong interest, with bullish bid-ask volume imbalance and a surge in the ‘In The Money’ metric.
Confidence in Cardano is growing, with an increase in Total Value Locked (TVL) and trading volume on the network.
According to Finbold, there are concerns about declining user activity on the Cardano network, with a drop in daily transactions and active addresses.
Cardano is currently trading at $0.4994 and is the 10th largest cryptocurrency with a market capitalization of $17.09 billion. There's potential for a surge in price, with predictions ranging from $1 to a considerable liquidation near the $0.492 mark.
Venezuela's Crackdown on Crypto Mining
In the current crypto news, the Venezuelan government has taken huge steps to curb cryptocurrency mining due to its heavy electricity demands.
Venezuela’s Ministry of Electric Power plans to disconnect cryptocurrency mining farms from the national grid to regulate excessive energy consumption and ensure a stable power supply for the population.
According to a local news outlet, the Ministry’s decision follows a recent crackdown involving confiscating 2,000 cryptocurrency mining devices in the city of Maracay as part of an anti-corruption initiative.
An X post by Venezuela’s National Association of Cryptocurrencies stated that crypto mining is now prohibited in Venezuela.
The ministry emphasized the need to ensure efficient electrical service in Venezuela by addressing the strain caused by high-energy-consuming mining farms.
These measures aim to stabilize the national power supply, which has been unreliable for the past decade.
Cryptocurrency mining's substantial electricity demands have led to regulations and bans in countries like China and Kazakhstan.
Venezuela’s crackdown on cryptocurrency mining is part of an anti-corruption campaign. It has led to the arrest of top officials, including Joselit Ramírez, former head of the National Superintendency of Cryptoassets.
Governor Rafael Lacava encouraged citizens to report unlawful activities.