Happy Tuesday! In today's newsletter, Crypto.com has taken legal action against the SEC after receiving a Wells notice, while Scroll unveils its token launch plans. Additionally, Linea proposes its decentralization roadmap and a U.S. bankruptcy judge has approved FTX's reorganization plan two years post-collapse. Furthermore, be sure to catch the HBO documentary tonight at 9 p.m. ET featuring candidates who could be identified as Bitcoin creator Satoshi Nakamoto.
Crypto.com filed a lawsuit against the SEC on Tuesday, asserting that the agency has overstepped its jurisdiction, leaving the exchange with "no other choice." The action was prompted by a Wells notice received on August 22, highlighting the regulator's intent to pursue enforcement action over allegations of operating as an unregistered broker-dealer and conducting secondary-market sales of various tokens like SOL, ADA, BNB, and others.
The lawsuit seeks a court declaration to affirm that Crypto.com is neither an unregistered broker-dealer nor a securities clearing agency and that the involved tokens are not securities. This move aligns with actions from other crypto firms like Consensys and Coinbase, who have also contested the SEC's classifications.
Scroll, an Ethereum Layer 2 solution, has revealed distribution plans for its upcoming governance token, marking a significant step towards decentralization. A total of 1 billion SCR tokens will be allocated, with various percentages reserved for community airdrops, ecosystem projects, and investors.
The final date to use the Scroll protocol for the initial airdrop is set for October 19, with the token launch occurring on October 22. Notably, Binance will initiate pre-market trading for Scroll's native token starting October 11.
Linea has put forward a proposal to transition to a permissionless system for its zkEVM, introducing a proof-of-stake model to enhance block validation. This plan requires validators to stake tokens and abide by the QBFT consensus algorithm.
Trading volume for fan tokens surged 220% to over $1 billion in the last 24 hours, as reported by CoinMarketCap. The OG Fan Token, associated with OG Esports, accounted for a significant portion of this volume.
Spot Ethereum ETFs in the U.S. recorded zero flows on Monday after recent fluctuations. In contrast, U.S. spot Bitcoin ETFs reported net inflows of $235.2 million on the same day.
The latest U.S. FOMC meeting minutes will be released at 2 p.m. ET on Wednesday, with various FOMC members scheduled to speak throughout the day.
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