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The impact of the closure of these banks highlights a key difficulty of operating a business within or adjacent to the crypto ecosystem: the difficulty of finding reliable banking partners.
In this piece, we examine recent complaints by DoJ, CFTC, and SEC that appear to demonstrate the complexities brought by a digital asset that is simultaneously classified as both a commodity and a security.
Current regulatory interpretations of law can cause digital assets to simultaneously fall under multiple legal classifications by different federal agencies. This can potentially make it difficult to develop compliance and operational requirements for individual crypto assets – and may complicate which federal regulators have oversight of the asset.
The upcoming Shanghai hard fork (EIP-4895) on the Ethereum network, set for March 2023, aims to unlock a significant amount of staked Ethereum (“ETH”), which currently makes up more than 13% of the total supply of Ethereum.