Fidelity's ETF Filing, Crypto Market Insights, and U.K. Crypto Regulation Advancements: Latest News in the Crypto Industry

Bitcoin and other top 10 cryptocurrencies experienced gains as the U.S. economy showed signs of growth despite interest rate hikes. Bitcoin increased by 1.05% in the past 24 hours, reaching $30,453, while Ether rose 1.28% to $1,853. Solana saw the largest increase with a 12.35% jump. Fidelity Investments filed for a spot Bitcoin exchange-traded fund (ETF), joining other asset managers in their pursuit of digital assets. The total cryptocurrency market cap rose to $1.17 trillion. In the NFT market, the Forkast 500 NFT index declined, and sales of Azuki Elementals and the original Azuki collection saw drops in trading volume. China's economy contracted for the third consecutive month, while the U.S. economy saw faster-than-expected growth in the first quarter and a decrease in initial jobless claims. The Federal Reserve is expected to raise interest rates further, with a high probability of a rate hike at its next meeting. Prometheum, a relatively unknown startup in the crypto industry, is facing criticism and skepticism as it seeks approval from the U.S. Securities and Exchange Commission (SEC) to trade digital assets. The co-CEO of Prometheum, Aaron Kaplan, garnered attention when he praised the SEC during a House of Representatives hearing, despite the ongoing legal battles between the industry and the regulatory agency. Prometheum claims to offer a compliant path for trading and custodianship of digital assets, but industry insiders argue that its model may violate securities laws. Prometheum's unique position lies in its registration as a "special purpose broker-dealer" for digital assets and as an "alternative trading system" (ATS). While critics point out flaws in Prometheum's plan, the company maintains that it can handle tokens issued under securities-law exemptions. Prometheum is awaiting SEC approval to clear and settle transactions, which could have significant implications for the crypto industry's relationship with U.S. regulatory oversight. The outcome will determine whether crypto firms can operate within the existing regulatory framework or face further restrictions. The Blockchain Association, a prominent lobbying group in the digital asset industry, has called for Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC), to step aside from any enforcement actions involving digital assets as securities. The association argues that Gensler's belief that all digital assets except Bitcoin are securities demonstrates a biased view that could compromise due process rights. They express concern that Gensler's bias may hinder a fair evaluation of important industry questions during SEC proceedings. The paper emphasizes the need for the SEC and its chair to act as neutral arbiters rather than prosecutors, and it suggests that Gensler's bias could negatively impact the perception of the crypto industry and the outcome of lawsuits. The association urges Gensler to recuse himself, warning that if he doesn't, enforcement targets may raise the issue of his recusal in SEC proceedings and federal district courts. The Blockchain Association, has also called for Gary Gensler, Chair of the Securities and Exchange Commission (SEC), to recuse himself from enforcing rules on the crypto sector. They argue that Gensler's public comments indicate a lack of impartiality in approaching the issues. This statement comes after Coinbase, the largest U.S.-based cryptocurrency exchange, filed a notice of intent to request the dismissal of the SEC's lawsuit against the company. Coinbase argues that the SEC's enforcement actions go beyond its legal authority and violate due process and the constitutional separation of powers. The SEC has been taking broader enforcement actions against crypto exchanges, including imposing fines on Kraken and warning Paxos Trust Company. While Gensler has received support from Democrats, Republican congressman Warren Davidson has introduced a bill to restructure the SEC and remove Gensler a