The Blockchain Bulletin, March 6: SEC Drops Cumberland DRW Case Amid Crypto Shift
Hey folks! Welcome to the latest edition of The Blockchain Bulletin. This newsletter will give you a quick peek at all the significant developments in the crypto space over the last 24 hours. The U.S. Securities and Exchange Commission (SEC) has dropped its lawsuit against Cumberland DRW, a major crypto trading firm accused of selling over $2 billion in unregistered securities.
A joint filing to dismiss the case was signed by both parties, pending SEC approval. The firm had been charged for offering unregistered securities. Tokens like Polygon, Solana, Cosmos, Algorand, and Filecoin have been named as securities. Cumberland DRW’s CEO, Don Wilson, stated that the firm had tried but failed to register as a securities dealer and pointed to the lack of regulatory clarity under former SEC Chair Gary Gensler as a persistent challenge for crypto firms seeking compliance.
Recently, the SEC has dropped several high-profile cases, including lawsuits against Coinbase and Kraken for alleged unregistered securities operations. It also ended a three-year investigation into Yuga Labs, the creator of Bored Ape NFTs. Moreover, the SEC clarified that meme coins are not securities, reducing uncertainty. However, the Ripple case remains ongoing, potentially setting a precedent for future crypto regulations.
Donald Trump’s announcement of including Ethereum, XRP, Solana, and Cardano in the U.S. Crypto Reserve has triggered sharp debate. Bitcoin maximalists argue that Bitcoin should remain the sole reserve asset. Anthony Pompliano criticized the decision, stating that adding altcoins would primarily benefit insiders.
Meanwhile, Ethereum’s Pectra upgrade was successfully deployed on the Sepolia testnet, but a chain split error was encountered on Holesky. The upgrade includes 11 Ethereum Improvement Proposals (EIPs), including EIP-7251, which raises the maximum staked ETH from 32 to 2,048. Developers will meet on March 6 to finalize a mainnet launch timeline.
Providing their support to the reserve, the Winklevoss twins suggested that it should hold only Bitcoin and gold. Coinbase CEO Brian Armstrong remained cautious, implying that Bitcoin alone may be the safest option. The divide highlights the fundamental differences between Bitcoin’s decentralized structure and the volatility of altcoins.
Related: Bitcoin Volatility Surges as Kiyosaki Criticizes Panic Sellers
On the other hand, the Trump administration supports a Congressional Review Act (CRA) to repeal the “Broker DeFi Rule,” implemented under the Biden administration. The rule requires DeFi participants to report gross proceeds and taxpayer data. Senator Ted Cruz introduced the resolution with 13 cosponsors, arguing that DeFi platforms function as peer-to-peer networks rather than intermediaries. Critics claim applying broker rules to DeFi is technically impossible due to the absence of centralized control.
In a bid to acquire TikTok’s U.S. operations, Alexis Ohanian partnered with billionaire Frank McCourt. Ohanian’s experience in tech investments, including OpenSea and Instacart, strengthens the proposal. Their plan includes integrating Project Liberty, a system that allows users to control their data. However, ByteDance remains hesitant, and there is speculation that the company may shut down TikTok rather than sell.
The Aave Chan Initiative (ACI) has introduced an updated Aavenomics proposal, including a six-month buyback program allocating $1 million weekly for AAVE purchases. The move resulted in a 3.96% price increase to $214.90. The proposal also aims to refine liquidity management and governance. Marc Zeller, founder of ACI, described it as the most significant proposal in AAVE’s history.
Related: IMX Price Prediction 2025-35: Will It Hit $250 by 2035?
In the market front, Bitcoin’s price has surged 8.13% in 24 hours to $90,463.09, while its dominance index fluctuates between 54.5% and 61.5%. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicate neutral momentum. Open interest in Bitcoin derivatives has increased by 6.96% to $50.16 billion, suggesting heightened speculative activity. Meanwhile, Ethereum’s Market Value to Realized Value (MVRV) has dropped to 1.01, the lowest level since October 2023. Analysts suggest this could signal a price recovery if buying pressure increases.
Meanwhile, Metaplanet, a Japanese firm, has added 497 BTC worth $43.3 million, reinforcing its corporate Bitcoin position, while El Salvador continued its Bitcoin accumulation strategy despite International Monetary Fund (IMF) restrictions. The country now holds 6,101.18 BTC, with five new additions in March. President Nayib Bukele has reaffirmed El Salvador’s commitment to Bitcoin, showing no signs of slowing down.
