BlackRock aims to launch Bitcoin ETF, BUSD stablecoin falls, Binance.US cuts jobs

BlackRock files with SEC to register Bitcoin ETF

Investment giant BlackRock filed to register a new Bitcoin Exchange Traded Fund with the US Securities and Exchange Commission on Thursday, despite a steady rejection record for most crypto-based ETFs.

BlackRock will be the largest company to apply for a Bitcoin spot ETF yet, 10 months after it launched a private trust that offers direct exposure to BTC.

The ETF will operate under the name iShares Bitcoin Trust, and will have exposure to assets held in custody by the Coinbase Custody Trust Company.

The SEC has turned down many applications to create Bitcoin ETFs. Grayscale, Ark Investment, and 21Shares were forced to go back to the drawing board.

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BUSD stablecoin falls to fourth place as Binance.US worries hasten supply collapse

The BUSD stablecoin associated with exchange Binance fell from its position as the third-largest stablecoin after $95 million of the asset was burned.

BUSD lost out to rival stablecoin DAI following the burn, though its woes began over three months ago, when stablecoin issuer Paxos was ordered to cease minting BUSD by US regulators.

The fall of the past three months was compounded last week when the US Securities and Exchange Commission named BUSD a security in a market-shaking lawsuit.

BUSD’s market cap is down to $4.36 billion from an all-time high of $23.3 billion in November 2022, according to DefiLlama.

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Texas regulators say crypto lender Abra is insolvent

Regulators for the US state of Texas alleged that crypto lender Abra has been insolvent since March, according to an emergency cease-and-desist order filed Thursday.

In the order, state regulators allege that Abra, also known as Plutus Financial, as well as subsidiaries Abra Boost and Plutus Lending misled investors, and are guilty of securities fraud.

CEO William Barhydt was named in the order as well, but has not yet responded to the claims.

Abra users may still withdraw funds from the protocol, pending a hearing that has yet to be scheduled.

Binance.US slashes 10% of jobs amid ‘costly’ SEC fight

Ten days after the US Securities and Exchange Commission levied a lawsuit against crypto exchange Binance’s US subsidiary, the firm has announced layoffs of about 50 positions, or 10% of its staff.

According to documents seen by CoinDesk, Binance.US management cited “preparation for a multi-year and very costly litigation process” as justification for the recent job cuts.

The SEC initiated a lawsuit against Binance.US, its parent company Binance, and CEO Changpeng “CZ” Zhao on June 5, on allegations they offered and sold unregistered securities to the public.

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US crypto lobbyists seek info from SEC on crypto firm Prometheum after regulation claims

Crypto lobby group the Blockchain Association filed a Freedom of Information Act request on Thursday, aimed at the US Securities and Exchange Commission over its dealings with crypto broker Prometheum.

The filing follows comments made Tuesday by Prometheum co-CEO and founder Aaron Kaplan in front of the House Financial Services Committee, in which the executive defended the SEC’s stance on crypto securities regulations.

In his comments, Kaplan said that Prometheus has fully registered with the SEC, and that other protocols can no longer claim the SEC will not approve any crypto firms.

The comments, combined with Prometheus’s previously low profile, raised eyebrows of many in the industry, as major firms such as Coinbase have publicly voiced frustration with the SEC’s compliance process in the past.

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