Is the Crypto Party Over?

First Short Bitcoin ETF to List on NYSE

Investment product provider ProShares is set to list the U.S.’s first exchange-traded fund (ETF) allowing investors to bet against the price of bitcoin.

The ProShares Short Bitcoin Strategy (BITI), which is designed to deliver the inverse of bitcoin’s performance, will start trading on the New York Stock Exchange (NYSE) tomorrow, ProShares announced Monday.

The SEC’s Authority to Pursue Climate-Related Disclosure

On behalf of the 30 undersigned law professors, all of whom teach and write on U.S. securities law and capital markets regulation, we welcome the opportunity to provide our views on the Commission’s recent proposal related to the enhancement and standardization of climate-related disclosures for investors (the “Proposal”). We focus on a single question—whether the Proposal is within the Commission’s rulemaking authority—and we unanimously answer this question in the affirmative. We base this conclusion on the analysis set out below. We do not all agree on the policy issues facing the Commission with respect to the optimal scope of environmental, social and governance (ESG) disclosure, including climate-related disclosure. But we all share the view that the Commission has ample, longstanding, and clear authority to promulgate disclosure rules in this area.

Opinion | Wonking Out: Wasn’t Bitcoin Supposed to Be a Hedge Against Inflation?

So another crypto myth bites the dust. And it’s hard to avoid wondering what myths are left. Recently the legendary short-seller Jim Chanos gave Bloomberg a wide-ranging interview in which, speaking of cryptocurrency, he pointed out that “a lot of the concepts behind its adoption early on have proven to basically be, you know, not there or wanting. You know, it was going to be a replacement currency. Well, no, it’s not. Well, it’s going to be a diversifying asset. Well, no, it hasn’t been.” And now we know it isn’t an inflation hedge either.

Is the Stock Market Closed on Juneteenth?

U.S. stock markets are closed to observe Juneteenth for the first time in history.  The New York Stock Exchange and Nasdaq are shut today in observation of the newest federal holiday, adding it to the list of market holidays that also includes Thanksgiving Day and Christmas Day.

Former SEC Chair Jay Clayton Talks Rapidly Evolving Crypto Regulation Landscape

Former Securities and Exchange Commission (SEC) Chairman Jay Clayton’s stance on the government’s efforts to regulate crypto technologies has seemingly softened since his time as SEC chair, according to comments from the former securities regulator during a discussion with Grayscale CLO Craig Salm on Grayscale Convenes Thursday.

The SEC can regulate many cryptocurrencies and classify them as securities because security laws regulate transactions in securities and not just the securities themselves, the ex-regulator told a LinkedIn livestream. He also noted that spot bitcoin exchange-traded funds (ETFs) face market manipulation concerns and detailed how cryptocurrencies’ global reach means that products regularly span the jurisdictions of various regulators, which renders it difficult for regulators to apply regulations to cryptocurrencies.

The Crypto Party Is Over

The cryptocurrency industry was built in part on swagger, enthusiasm and optimism. Bitcoin backers’ rallying cry to rebuff skeptics was, “Have fun staying poor.” Those who didn’t buy in were letting the future pass them by.

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The crypto world is no stranger to booms and busts, which many in the industry refer to as “winters.” But many investors and workers are feeling this crypto crash more acutely than previous ones. When the dust settles, some crypto products and companies may no longer exist.

Tether: The Coin That Could Wreck Crypto

Now the crypto industry is grappling with an even grimmer prospect: The worst may be yet to come.

Concern is mounting over another potential vulnerability in the crypto market: Tether, a company whose namesake currency is a linchpin of crypto trading worldwide. Long one of the most scrutinized companies in the industry, Tether is facing heightened pressure from regulators, investors, economists and growing legions of skeptics, who argue it could be another domino to fall in an even bigger crash.

“Tether is really the lifeblood of the crypto ecosystem,” said Hilary Allen, a finance expert at American University. “If it imploded, then the entire facade falls down.”