Scenius Sync (Issue #64)

Grayscale's Big Win, SEC Delays ETF Decisions, More Binance Exodus, Colorado’s DMV Now Accepts Crypto, & LSE Plans Blockchain-Powered Business

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:

1. Share the essential stories driving the crypto industry and markets.

2. 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 💪

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Essential News 🗞

1. Grayscale wins SEC lawsuit for Bitcoin ETF review

   • Crypto asset manager Grayscale Investments has scored a major victory against the SEC in its efforts to convert its over-the-counter Grayscale Bitcoin Trust (GBTC) into a listed Bitcoin ETF. Previously, the SEC rejected its GBTC application on grounds that the products were not “designed to prevent fraudulent and manipulative acts and practices.” Grayscale subsequently sued, and the decision has been overturned.  According to Aug. 29 court filings, U.S. Court of Appeals Circuit Judge Neomi Rao ordered Grayscale’s petition for review be granted and the SEC’s order to deny the GBTC listing application be vacated. Previously, Judge Rao said that the SEC did not “offer any explanation” as to why Grayscale was in the wrong. However, the order does not guarantee the eventual listing of a Grayscale spot Bitcoin ETF. 

   • More coverage here from CoinDesk on why the legal victory potentially opens the door for a spot bitcoin ETF in the U.S. and JPMorgan says SEC would likely be forced to approve spot bitcoin ETFs following Grayscale's win.

2. Court sides with Uniswap over class action suit

   • A class action complaint against Uniswap was tossed on Tuesday, Aug. 29 after the judge found that some of the claims were “devoid of factual support.”

     Judge Katherine Polk Failla oversaw the case — she is also overseeing the US Securities and Exchange Commission’s case against Coinbase — and issued the ruling on the dismissal.  “Due to the Protocol’s decentralized nature, the identities of the Scam Token issuers are basically unknown and unknowable, leaving Plaintiffs with an identifiable injury but no identifiable defendant,” the judge wrote. 

   • Notably, the Judge also called Ether a commodity in her dismissal order.

3. Binance's Head of Product Departs as Executive Exodus Gathers Steam

   • Mayur Kamat's departure follows those of Chief Strategy Officer Patrick Hillmann, Senior Director of Investigations Matthew Price, SVP for Compliance Steven Christie and Asia-Pacific Head Leon Foong.

4. SEC Delays Spot Bitcoin ETF Decision for All Applicants Including BlackRock, Fidelity

   • The SEC has delayed until October making a decision on all of the spot bitcoin exchange-traded fund (ETF) applications filed by applicants including BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise and Valkyrie Digital Assets earlier this year, according to agency filings on Thursday. The applicants hope to launch the first spot bitcoin ETF, which advocates have argued would allow for greater retail investment in the bitcoin space while saving investors from the troubles of setting up a wallet or having to buy bitcoin directly.

5. Gemini Opposes Genesis Bankruptcy Plan: 'Woefully Light on Specifics'

   • Gemini joins two other creditor groups in objecting to Genesis' proposed agreement to resolve its bankruptcy. Attorneys for the crypto exchange argued that a proposed resolution for Genesis' bankruptcy doesn't have enough detail or provide any assurances for some of its largest debtors in a new filing Wednesday.

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Innovation & Adoption 💡📈

1. London Stock Exchange to create traditional assets trading platform on blockchain

   • The London Stock Exchange (LSE) Group reportedly plans to create a blockchain-based platform offering traditional financial assets. According to a report in the Financial Times, the company has been looking into the potential of a blockchain-based trading venue for a year. LSE Group’s head of capital markets, Murray Roos, said that the company’s efforts in looking into the blockchain had reached a point where it decided to move its plans forward.

   • More coverage from Decrypt here.

2. Colorado’s Division of Motor Vehicles now accepts cryptocurrency

   • Coloradans seeking to renew a driver’s license or vehicle registration online have a new payment option: cryptocurrency. The Colorado Division of Motor Vehicles announced Thursday that myDMV now accepts cryptocurrency through PayPal for online payments. “At the DMV, we’re always looking for ways to better serve Coloradans and leverage technology to offer our services,” DMV Senior Director Electra Bustle said in a news release. “This new online cryptocurrency payment option is yet another way the DMV is providing innovative and convenient service delivery to our customers.”

3. MakerDAO announces final phase of 'Endgame,' highlights Solana codebase

   • Final phase of “Endgame” is announced, unveiling reimplementation of Maker Protocol and suggestion of building a new blockchain. MakerDAO co-founder calls Solana most promising codebase.

   • In related news, Vitalik sells MakerDAO stake worth about $580,000 after CEO Christensen suggests Solana-based blockchain.

4. Robinhood Wallet adds support for Bitcoin, Dogecoin and Ethereum swaps

   • Less than six months since Robinhood first launched its own crypto wallet, the company is adding "custody, send, and receive support for Bitcoin and Dogecoin," in addition to enabling Ethereum swaps. The added functionality comes in response to users requesting the additional support, according to a Robinhood spokesperson.

5. DYDX token approved to become native asset of upcoming dYdX Chain

   • The governance system of the dYdX derivatives protocol has ratified a proposal to transition to version 4 and adopt DYDX as the Layer 1 token for the project's own blockchain. The vote concluded on Sep. 4 on the Snapshot platform, receiving almost 100% community backing. In line with the governance decision, the project is set to migrate the DYDX token from Ethereum to a Layer 1 appchain in the Cosmos ecosystem (currently on testnet).