- 1. Ethereum Activates Dencun Upgrade to Cut Transaction Fees
- 2. London Stock Exchange to Accept Bitcoin and Ethereum Crypto ETNs in Q2 2024
- 3. Sam Bankman-Fried Sentenced to 2 Decades Over FTX Scandal
- 4. Kraken Financial Launches Qualified Custody Solution for U.S. Institutional Clients
- 5. SEC Seeks $2B in Fines from Ripple Labs, Legal Officer Reveals
March 2024 brought major developments across the cryptocurrency and financial sectors, alongside increased regulatory scrutiny. *ETH* made headlines when Ethereum activated the Dencun upgrade, a major step toward greater scalability and lower fees. The London Stock Exchange also announced plans to accept *BTC* and Ethereum Exchange Traded Notes (ETNs). Former crypto magnate Sam Bankman-Fried faced a 25-year prison sentence over the FTX scandal, while Ripple Labs faced a major legal battle with the U.S. Securities and Exchange Commission (SEC). These events show how closely cryptocurrency remains tied to traditional finance and regulation.
Ethereum Activates Dencun Upgrade to Cut Transaction Fees
The most significant news from March was the Dencun hard fork. It is the most significant Ethereum upgrade since the Merge. Dencun went live on the Ethereum mainnet Wednesday 23th March at around 9:55 am ET.
The upgrade focuses on scalability. It includes EIP-4844, or Proto-Danksharding, which creates a separate data channel for layer-2 data. This reduces transaction fees on rollups. Dencun also includes a total of 9 Ethereum Improvement Proposals (EIPs), making it one of the largest single hard forks in terms of improvements shipped.
Dencun’s main benefit is lower transaction fees. Most rollups and users are expected to see benefits within hours to days. The improvement moves Ethereum closer to a point where transaction fees are negligible.
EIP-4844 has been likened to the “NoSQL movement of the 2010s.” It gives developers temporary data storage space and supports innovation without compromising decentralization. Overall, Dencun is a major step toward greater scalability and decentralization for Ethereum.
London Stock Exchange to Accept Bitcoin and Ethereum Crypto ETNs in Q2 2024
The London Stock Exchange (LSE) has announced plans to accept applications for the admission of Bitcoin and Ethereum Exchange Traded Notes (ETNs) in the second quarter of 2024. The decision follows the details in the crypto ETN factsheet on the Exchange’s website.
To maintain market integrity, the Exchange will consider applications for Crypto ETNs that meet specific criteria. Issuers must also work with a custodian subject to Anti-Money Laundering (AML) regulation.
Following the Financial Conduct Authority’s ban on selling derivatives and ETNs referencing unregulated crypto assets to retail consumers, Crypto ETNs traded on the LSE will be available only to professional investors. Prospective issuers are encouraged to contact the Exchange early to discuss their proposed admission.
Specific deadlines have also been set for submitting draft Static Data Forms. The deadlines are intended to prevent potential admission delays.
Sam Bankman-Fried Sentenced to 2 Decades Over FTX Scandal
Sam Bankman-Fried, once a prominent figure in the crypto world, has been handed a 25-year prison sentence for his role in the FTX fraud saga. This was the most shocking news from March.
Judge Lewis Kaplan delivered the verdict in Manhattan. It marked the end of a lengthy legal battle that exposed one of the most significant financial deceptions in recent history.
Bankman-Fried, the ex chief of the defunct crypto exchange FTX, was convicted of fraudulent activities and conspiracy to launder money. The prosecution wanted a harsher punishment of upto 50 years, arguing that he had acted out of extreme greed. The defense sought a shorter term of approximately seven years.
Bankman-Fried tried to assert his innocence during the trial. However, crucial testimonies, including testimony from former associate Caroline Ellison, led to his conviction on all charges. The jury reached its decision after four hours of deliberation, underscoring the severity of the case.
Kraken Financial Launches Qualified Custody Solution for U.S. Institutional Clients
Kraken Financial, the state-chartered bank of the Kraken exchange, has introduced qualified custody solution through its institutional arm, Kraken Institutional. Operating under the regulatory framework of Wyoming USA, Kraken Financial is authorized to provide digital asset storage and deposit accounts for institutional investors.
The service keeps customer funds and assets separate from operational funds.
Tim Ogilvie, Head of Kraken Institutional, emphasized the importance of custody services in institutional crypto trading, particularly after the recent surge in Bitcoin ETFs. Kraken has more than 12 years of experience safeguarding client assets and offers its qualified custody solution as part of its institutional services.
Kraken Custody streamlines the storage, management, and transfer of crypto assets for institutional clients. With its custody services, Kraken aims to lead institutional-grade cryptocurrency offerings and help institutional investors enter and succeed in the crypto market.
SEC Seeks $2B in Fines from Ripple Labs, Legal Officer Reveals
Ripple Labs faces a major challenge as the U.S. Securities and Exchange Commission (SEC) pursues fine totaling up to $2 billion. Stuart Alderoty, Ripple’s Chief Legal Officer, disclosed the development.
The SEC accuses Ripple of unlawfully selling unregistered securities, specifically its cryptocurrency $XRP. Ripple strongly disputes the claims and is preparing its legal defense in April.
The outcome could have significant consequences for the cryptocurrency industry. Judge Analisa Torres’s recent ruling favored Ripple by excluding certain XRP sales from being deemed securities. Other crypto firms under SEC scrutiny have closely watched the ruling.
Observers are now waiting for further developments as Ripple responds to the case. The dispute could affect crypto regulation and innovation, as well as the industry’s approach to digital finance and regulatory clarity.
March 2024 was a significant month for the cryptocurrency industry. Major events highlighted both its growth and its regulatory challenges.
Ethereum’s activation of the Dencun upgrade brought improvements in scalability and fee reduction. The London Stock Exchange’s decision to accept Bitcoin and Ethereum ETNs pointed to growing institutional interest in cryptocurrencies. At the same time, Sam Bankman-Fried’s sentencing and Ripple Labs’ legal battle with the SEC showed the sector’s exposure to legal scrutiny. Together, these developments will influence the industry’s future direction and regulatory landscape.
