Bitcoin
Crypto News Today: US Senate Votes Against SEC | CME Group will list BTC | JPMorgan on BTC mining
Bitcoin (BTC) Price Action May 12-17, 2024.
The value is below previous estimates, exceeding $50,000, and the drop was attributed to the decline in hashrate following the halving event, which cut the Coin base Miners receive reward per block found in half as unprofitable miners leave the network.
JPMorgan analysts noted that there was a delay in the exit, which was attributed to the launch of the Runes protocol, a new method of creating tokens within the Bitcoin network that triggered a temporary increase in transaction fees, which in turn offset the impact of the halving.
The report emphasized that the boost provided by Runes was short-lived, as revenue from transaction fees has since fallen sharply. As the network’s energy consumption fell more than its hashrate, he adds, unprofitable miners with inefficient operations left.
The JPMorgan report sees limited upside for Bitcoin in the near future due to several headwinds, which include a lack of positive catalysts and fading momentum from retail crypto investors.
US Senate votes to overturn SEC rule on crypto
Lawmakers in the United States Senate voted 60 to 38 to pass a joint resolution, HJRes. 109, with the aim of nullifying a Securities and Exchange Commission (SEC) rule that affects financial institutions that do business with cryptocurrency companies.
The resolution seeks to repeal Personnel Accounting Bulletin No. 121, which states that banks must keep customers’ digital assets on their balance sheets and maintain sufficient capital against them, something that many lawmakers and industry leaders believe stifles innovation .
The resolution was previously approved by the US House of Representatives and now faces a potential veto from President Joe Biden, who has said he plans to veto the bill after expressing concerns about investor protection and the stability of the broader financial system.
If the President vetoed the bill, it would return to Congress, where a two-thirds majority in both chambers would be needed to override the veto.