South Korea’s chief financial regulator is set to engage in a pivotal meeting with U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler in Washington D.C. next month, as reported by Korean news outlet ChosunBiz. The meeting will be the first of its kind and is anticipated to focus on discussions surrounding crypto regulations, an area of increasing concern for Korean regulators. The Financial Supervisory Service Governor, Lee Bok-hyeon, and Chairman Gensler aim to coordinate specific schedules and agendas to strengthen cooperation between the regulatory bodies. South Korea has recently developed digital asset legislation to enhance consumer protections for crypto investors, with the legislation scheduled to take effect in July 2024. This move follows challenges faced by South Korean crypto traders, including a significant market crash triggered by the collapse of the Terra-Luna ecosystem in 2022.
Returning from his speaker stint, Congressman Patrick McHenry is renewing his efforts for House votes on bills designed to regulate U.S. stablecoin issuers and establish comprehensive oversight of the crypto markets. As the chairman of the House Financial Services Committee, McHenry has demonstrated persistence in advancing these bills, securing bipartisan votes within his committee despite opposition from senior Democrats. While the progress of the bills may be delayed until 2024, McHenry remains optimistic about their chances of winning approval in the House, marking a significant milestone in industry legislation. However, the challenge lies in garnering support from Senate counterparts, who have shown limited interest in the endeavor. McHenry’s unwavering commitment to crypto legislation stands out on Capitol Hill.
Ethereum users faced a notable increase in transaction costs, briefly surpassing $10, with some reporting fees as high as $150 for a $50 transaction. Although Ethereum gas fees have since decreased by over 50%, users are exploring alternative blockchain platforms with lower transaction costs. Solana has benefited from this trend, experiencing a nearly 400% increase in active addresses over the last three months, compared to a mere 3% increase on Ethereum, according to Messari. Solana’s decentralized exchange volume has also surged, supported by consistently low transaction fees, although critics on social media highlight potential drawbacks. While Solana’s price saw a significant rise in December, technical indicators suggest a potential selloff, signaling a cautious outlook.
The U.S. Securities and Exchange Commission (SEC) has deferred its decision on several Ethereum exchange-traded funds (ETFs) to May 2024. The SEC’s move involves seeking further public input on whether these ETFs should be listed and impacts proposals from major entities, including Hashdex, Grayscale, VanEck, ARK Invest, and 21Shares. Despite having approved Ethereum futures ETFs previously, the SEC has yet to greenlight a spot or mixed-type product. The final decision is expected in May 2024, marking a crucial development in the regulatory landscape for Ethereum-based financial products.
