PA Daily | The US SEC sues Consensys and considers Lido and Rocket Pool as securities. The SEC has returned the S-1 form to the Ethereum ETF issuer and proposed revisions.

Today's Headlines:

SEC has returned the S-1 form to the Ethereum ETF issuer and requested resubmission by July 8th.
21Shares has submitted the S-1 document to the US SEC for the Solana ETF.
The US SEC has sued Consensys for violating federal securities laws.
A US judge has allowed the SEC to continue most of the lawsuits against Binance, including charges of unregistered and fraudulent activities.
The parent company of Pudgy Penguins has acquired the on-chain creator platform Frame and will develop a new Layer 2 network.
Blast's ecological leverage trading protocol Particle has released token economics, with an initial airdrop of 20 million tokens.
Kroma has announced the airdrop standards, targeting participants in Galxe Kroma Quest and WEMIX community members.
The net inflow of Bitcoin spot ETF was $73.0454 million yesterday, marking the 4th consecutive day of net inflow.
USDT has 10.9 million monthly active users, with 84.3% of active users coming from Tron.

Regulatory News

Market News: 21Shares has submitted the S-1 document to the US SEC for the Solana ETF

According to Tree New, 21Shares has submitted the S-1 document to the US SEC for the Solana ETF.

Source: SEC has returned the S-1 form to the Ethereum ETF issuer and requested resubmission by July 8th

According to The Block, a source stated that the SEC has returned the S-1 form to the potential Ethereum ETF issuer with some comments, requiring these comments to be addressed and resubmitted by July 8th. The source pointed out that this would not be the final filing after the form is returned, indicating that at least one more filing is required before the ETF can begin trading.

Coinbase Derivatives applies to list regulated SHIB, LINK, AVAX, XLM, and DOT futures contracts with the US CFTC

Coinbase Derivatives has submitted multiple certification documents to the US Commodity Futures Trading Commission (CFTC) to list regulated SHIB, LINK, AVAX, XLM, and DOT futures contracts in the US.

The US SEC has sued Consensys for violating federal securities laws

The US Securities and Exchange Commission (SEC) has sued Consensys. In the lawsuit, the SEC stated that since 2016, Consensys has developed and operated a set of services related to crypto assets under the "MetaMask" brand. Consensys claimed to be a leader and innovator in the crypto asset industry, but it has violated federal securities laws by not registering as a broker-dealer and not registering the offer and sale of certain securities. Since October 2020, Consensys has operated as an unregistered crypto asset securities broker-dealer through its MetaMask Swaps service. Since January 2023, Consensys has offered and sold unregistered crypto asset staking plans through its MetaMask Staking service, collecting over $250 million in fees from these activities.

The US SEC considers Lido and Rocket Pool staking projects as securities

According to market news, the US Securities and Exchange Commission considers Lido and Rocket Pool staking projects as securities.

A US judge allows the SEC to continue most of the lawsuits against Binance, including charges of unregistered and fraudulent activities

A federal judge has rejected part of the US Securities and Exchange Commission's (SEC) lawsuit against the cryptocurrency exchange Binance and its founder, Changpeng Zhao. The SEC's initial token offering for Binance and the ongoing sales of BNB, BNB Vault, staking services, unregistered, and fraudulent activities can continue. The judge approved Binance and Zhao's motion, dismissing the charges related to secondary market BNB sales and Simple Earn.

AI/NFT

The parent company of Pudgy Penguins acquires the on-chain creator platform Frame and will develop a new Layer 2 network

According to official sources, the NFT project Pudgy Penguins' parent company, Igloo Inc., has acquired the on-chain creator economy platform Frame. The terms of the transaction have not been disclosed, and the Frame team will now join Igloo. This acquisition aims to develop a Layer 2 network called Abstract Chain designed for on-chain culture and community, empowering creators and introducing innovative economic mechanisms on-chain.

Project Updates

The 136th Ethereum ACDC Meeting: Pectra Devnet 1 is about to be ready

Christine Kim, Vice President of Galaxy Research, summarized the main content of the 136th ACDC conference call, involving diverse client data collection and new research on multi-client block validation.

Jorge Arce-Garro, a researcher at Nethermind, shared the latest achievements of his team, aimed at improving the way node operators report client diversity data. The research, funded by the EF, provides three different methods to facilitate validator node operators in conveying client types and evaluates each method based on complexity, security, and the ability to protect the anonymity of node operators. Arce-Garro requested feedback on his team's research, which has been published on Ethresearch.

Developers also shared the latest progress of the Pectra upgrade, mentioning that Pectra Devnet 1 is about to be ready, and the EF DevOps team is waiting for the EL client to be ready.

Mikhail Kalinin, a developer at Teku, shared updates on the EIP 6110 specification; PeerDAS Devnet 1 has been launched, supporting three different CL client deployments. They also discussed the work on SSZ code changes, and EIP 7688 and EIP 6493 are in progress, although developers have not decided whether to include these two additional EIPs in Pectra.

Nifty Island: The final round of airdrop activity Wave 3 is live, accounting for 40% of the total token supply

The Ethereum-based game Nifty Island tweeted that the final round of airdrop activity Wave 3 is live, and participation in the game can earn ISLAND tokens. It is reported that this round of airdrop will account for 40% of the total token supply, and the percentage allocated to P2A will be determined based on the data collected from Wave 3.

Nifty Island also stated that Wave 3 is completely independent of Wave 1 and Wave 2, allowing more users to participate. In addition, detailed information on token economics will be released during Wave 3, with specific timing yet to be announced.

Particle, the decentralized leverage trading protocol in the Blast ecosystem, has released the token economics for PTC. The TGE will take place on July 2nd at 18:00 (UTC+8). The maximum token supply is 200 million, with 55% allocated to the community, 21% to contributors, and 24% to investors. An initial airdrop of 20 million tokens (approximately 18.2% of the community allocation) will be distributed linearly over 24 months. Contributor and investor tokens will be locked for 6 months.

Farcaster, the decentralized social media protocol, has introduced an in-app USDC payment feature for its Warpcast client, allowing users to make payments to others using USDC without the need to search for or remember addresses, with almost instant confirmation and zero fees. The feature initially supports the Base chain and may later expand to support other chains.

The application deadline for the third phase of funding from the Arbitrum Foundation has been extended to July 31st. The third phase focuses on dApps.

Kroma, the Ethereum Layer2 network developed by Lightscale, a subsidiary of the South Korean gaming company Wemade, has announced the upcoming TGE and revealed the eligibility criteria for the airdrop, which includes Kroma OG, Galxe Kroma Quest participants, Kroma Quest Master NFT holders, WEMIX community members, game players (participants in Land War or Night Crows activities), KGH NFT holders, Spectrum contributors, KCU contributors, Tx Generator, and Superchain contributors.

Previously, Kroma announced the new token economics for the KRO token, with the total supply increased to 1 billion, and 17% allocated for community airdrops.

Catizen, the Ton ecosystem cat-themed game, is set to launch a gaming platform and plans to conduct an airdrop in July. According to the roadmap, Catizen is entering the third phase, which involves launching a gaming platform with plans to release over 200 mini-games, transforming Catizen from a single mini-game into a gaming hub.

Important Data

According to SoSoValue data, the total net inflow of Bitcoin spot ETF was $73.0454 million yesterday (June 28th, US Eastern Time). Grayscale's GBTC had a net outflow of $27.1553 million yesterday, bringing its total historical net outflow to $18.515 billion. The Bitcoin spot ETF with the highest net inflow yesterday was Belld IBIT, with a net inflow of $82.4255 million, bringing its total historical net inflow to $17.725 billion. Ark Invest and 21Shares' ETF ARKB had a net inflow of $42.8000 million yesterday, bringing its total historical net inflow to $2.403 billion. As of the time of writing, the total net asset value of Bitcoin spot ETF is $52.123 billion, with an ETF net asset ratio (market value as a percentage of total Bitcoin market value) of 4.39%, and a total cumulative net inflow of $14.525 billion.

IntoTheBlock's Q2 market report shows that BTC and ETH have dropped by 12.8% and 3.1% respectively. The number of BTC held by long-term investors has decreased, with a balance reduction of 160,000 BTC (approximately $10 billion) in May and 40,000 BTC in June. Since June, Bitcoin miners have sold over 30,000 BTC (approximately $20 billion). Currently, 78% of ETH is held by long-term investors. L2 transaction volume has increased fourfold, with the top three L2 networks (Arbitrum, Base, and Optimism) experiencing a fourfold increase in transaction volume over the past year.

According to Token Terminal data, Tether's USDT has 10.9 million monthly active users (MAU), with 84.3% (9.2 million) of MAU coming from Tron.

DefiLlama data shows that the TVL of the TON network has surpassed $680 million, reaching $681.3 million, setting a new all-time high.

According to Dune data, the ZKsync network had an average of approximately 165 transactions per day over the past week (121 transactions yesterday) and an average of approximately 125 active addresses per day (79 yesterday).