SEC Sues Kraken Over Regulatory Issues, Bitcoin Transaction Fees Soar Above Ethereum’s Over Ordinals Hype

Here are some of the major developments from the world of crypto over the past few days
Securities Exchange Commission, Bitcoin, Ethereum
Securities Exchange Commission, Bitcoin, Ethereum

The US Securities and Exchange Commission (SEC) has filed a lawsuit against crypto exchange Kraken, saying that it commingled customer funds and failed to register with the government as a securities exchange, broker, dealer, or clearing agency.

The SEC said in a November 20, 2023 complaint filed in the federal court in San Francisco, the US that Kraken has been operating a platform that illegally facilitates the buying and trading of cryptocurrencies since 2018.

A Kraken spokeswoman said that the company disagreed with the SEC’s charge and would defend itself in court.

Bitcoin Transaction Fees Soar Above Ethereum’s Over Ordinals Hype

Following a frenzy of Ordinals-related activity on the Bitcoin network, average daily transaction fees on Bitcoin have switched with Ethereum. Bitcoin transaction fees have soared above Ethereum’s amid a renewed appetite for Ordinals-inscribed assets.

According to BitInfoChart statistics, the average daily transaction fee for Bitcoin on November 20, 2023 was $10.34, while that of Ethereum were $8.43.

Earlier On November 16, 2023, Bitcoin’s average daily trading cost reached a new six-month high of $18.67, while Ethereum fees reached $7.90.

The unexpected increase in Bitcoin transaction fees is due to renewed market demand for assets inscribed with the Ordinals Protocol – a method for building non-fungible token (NFT)-like assets and BRC-20 tokens on Bitcoin.

According to Dune Analytics data, after a major gap in activity between September 25, 2023 and October 23, 2023, ordinals-based assets saw a dramatic spike beginning in late October.

ARK, 21Shares Update Spot Bitcoin ETF Application As Next SEC Deadline Looms

ARK Invest on November 20, 2023 submitted a revised prospectus for its spot Bitcoin exchange-traded fund (ETF), which it developed in partnership with European digital asset management firm, 21Shares.

The ARK 21Shares Bitcoin ETF, if approved, will trade on the Chicago Board Options Exchange’s BZX Exchange under the ticker symbol ARKB, according to the amended filing.

This is ARK and 21Shares’ third prospectus modification since they first filed for a spot Bitcoin ETF in April 2023. Experts say ARK’s last amendment to its form S-1 registration statement in October is a “good sign” of progress. Incidentally, the SEC delayed its planned judgement on ARK’s application once more in September 2023. The decision’s next deadline has been set for January 11, 2024.

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