Scenius Sync (Issue # 155)
SEC Drops Suit Against Binance, Labor Dept. Pulls Guidance Against Crypto in 401(k)s, SEC Says PoS Staking Activities Not Securities, BlackRock Eyes 10% Stake in Circle IPO & Pump.fun Raising $1B
Scenius: The intelligence and the intuition of a whole cultural scene. The communal form of the concept of genius.
Welcome to The Scenius Sync.
Our mission with this concise publication is twofold:
Share the essential stories driving the crypto industry and markets.
Highlight innovative applications and mainstream adoption of crypto and blockchain technology.
If you find this newsletter valuable, please subscribe and share The Scenius Sync with your network 💪
Essential News 🗞
SEC drops lawsuit against crypto giant Binance
The US SEC will drop its long-running lawsuit against crypto exchange Binance in the regulator’s latest backdown from policing the crypto industry. A joint motion filed on May 29 by the SEC, Binance and its co-founder Changpeng Zhao asked a Washington, D.C., federal court to allow the regulator’s complaint that it filed in June 2023 to be dismissed. The motion mentioned the SEC’s Crypto Task Force “might impact and facilitate the potential resolution of this litigation” and that the regulator believed dropping the suit was appropriate “in the exercise of its discretion and as a policy matter.”
DOL pulls guidance discouraging crypto in 401(k)s
The Labor Department on Wednesday yanked Biden-era guidance that strongly discouraged employers against offering cryptocurrency in workers’ 401(k) plan options. Labor Secretary Lori Chavez-DeRemer said the policy was an attempt by the previous administration “to put their thumb on the scale” against cryptocurrency investments. “We’re rolling back this overreach and making it clear that investment decisions should be made by fiduciaries, not DC bureaucrats,” she said in a statement.
Democratic staffers say they felt like the U.S. Securities and Exchange Commission was "trying to hide the ball" when asked technical questions about an upcoming cryptocurrency market structure bill, calling a recent phone call with agency staff the "worst technical assistance briefing" they had witnessed. Democratic staffers spoke freely at a press briefing on Tuesday — a day before the House Financial Services Committee is set to hold a hearing to discuss the bill known as The CLARITY Act — about a meeting that took place last week focused on significant qualms with the draft legislation.
More coverage from Decrypt here: House Democrats Claim SEC Is Denying Them Key Info on Crypto Bill
SEC says proof-of-stake staking activities do not constitute securities transactions
The U.S. SEC's Division of Corporation Finance announced Thursday that certain blockchain staking activities do not involve the offering of securities. "Accordingly, 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," the statement said. The division said its view applies to staking of "covered crypto assets" on proof-of-stake networks, activities of third-party service providers such as custodians and node operators, and ancillary services.
A governance vote to unlock Cetus’ assets previously stolen by a hacker received 90% approval from the Sui community. Cetus intends to restart its platform in a week, after using frozen attacker funds and cash/token reserves to reimburse losses from the incident.
Innovation & Adoption 💡📈
BlackRock eyes 10% stake in Circle's IPO — Report
BlackRock is reportedly planning to take a significant stake in Circle’s upcoming initial public offering (IPO). According to a May 28 Bloomberg report citing anonymous sources, BlackRock is looking to purchase roughly 10% of the offering. Circle, the issuer of the USDC stablecoin, is aiming to raise $624 million in its initial public offering Cathie Wood’s Ark Investment Management is also interested in buying $150 million worth of shares in the offering, the report said.
Trump-linked asset manager files Truth Social Bitcoin ETF with SEC
US President Donald Trump’s sprawling crypto empire could grow even larger, as filings show plans for a Bitcoin exchange-traded fund (ETF) branded with his social media platform, Truth Social. Stock exchange NYSE Arca filed for the Truth Social Bitcoin ETF with the Securities and Exchange Commission on June 3 on behalf of crypto asset manager Yorkville America Digital, a partner of Truth Social’s owner, Trump Media & Technology Group. Trump is the majority owner of Trump Media, but moved his shares into a trust controlled by his son, Donald Trump Jr., before he re-entered the White House.
Nasdaq-listed Classover plans to raise up to $500 million in new deal to build SOL treasury
Shares of Classover Holdings Inc., a Nasdaq-listed educational technology company, jumped 39.85% on Monday after it announced plans to raise up to $500 million to build a SOL-based corporate treasury. SOL is the native token of the Solana blockchain. In a statement released Monday, the New York-headquartered company said that it has signed a securities purchase agreement with Solana Growth Ventures LLC to issue up to $500 million in senior secured convertible notes. The company expects an initial closing and funding of $11 million to occur shortly after customary closing conditions are satisfied.
Solana-based memecoin generator Pump.fun raising $1 billion via token sale: report
Pump.fun, the memecoin generator that revitalized the Solana ecosystem, plans to raise $1 billion through a token sale at a $4 billion valuation, according to Blockworks. The token will reportedly be offered to public and private investors, though it is unclear when or where the token launch will occur.
Peter Thiel's Founders Fund co-leads $8 million Series A for Base-based derivatives exchange Avantis
Avantis, a Base-based decentralized exchange for leverage trading, has raised $8 million in a Series A funding round co-led by Peter Thiel's Founders Fund and Pantera Capital. Other investors in the round include Symbolic Capital, SALT Fund and Flowdesk, Avantis said Tuesday. While the round closed in mid-2024, Avantis chose to announce it now to align with the protocol's growth, Harsehaj Singh, CEO of Lumena Labs, the core contributor to Avantis, told The Block. Over the past year, the platform has expanded its offering and now ranks as the largest derivatives protocol on Base, Singh said.