Weak demand for the token and a feeble bullish reversal pattern do not set PI up for success.
The US Securities and Exchange Commission (SEC) is under renewed scrutiny following two key developments that signal a shifting stance on cryptocurrency regulation. The agency recently invited public feedback on a rule change that could allow in-kind redemptions for the WisdomTree Bitcoin Fund, while also releasing updated guidance suggesting certain crypto staking services may not be classified as securities. The moves have drawn sharp criticism from former SEC officials and current commissioners alike, raising questions about legal consistency and the Commission’s evolving role in digital asset oversight. SEC Seeks Public Input on In-Kind Redemptions for WisdomTree Bitcoin ETF The US Securities and Exchange Commission (SEC) has launched a formal review process and is inviting public commentary on whether to permit in-kind creations and redemptions for the WisdomTree Bitcoin Fund (BTCW), a spot Bitcoin exchange-traded fund (ETF) approved earlier this year. The move signals a potential shift in regulatory posture toward more flexible and crypto-native ETF structures, but for now, the agency is asking stakeholders to weigh in. The SEC’s call for public feedback, issued Monday, follows previous delays and open-ended inquiries concerning in-kind redemptions for a number of major crypto funds, including BlackRock’s iShares Bitcoin Trust (IBIT), the VanEck Bitcoin Trust, and the VanEck Ethereum Trust. “Institution of proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change,” the SEC wrote in its notice. “Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved.” The Commission is now giving the public 21 days to submit written comments, data, or arguments for or against allowing in-kind transactions for BTCW. The period offers a rare opportunity for both institutional and retail investors, crypto advocates, and regulatory experts to shape how the next wave of crypto ETFs are structured. Currently, most approved crypto ETFs, including BTCW, operate under a cash creation and redemption model. This means that when an investor wants to redeem shares, they receive US dollars rather than the actual underlying asset, Bitcoin, in this case. In contrast, in-kind redemptions allow investors to receive the underlying asset itself, a key feature of many traditional commodity ETFs, such as those tracking gold. This mechanism offers notable advantages: Tax efficiency for investors through avoidance of taxable events until sale. Lower transaction costs by minimizing intermediary conversions between Bitcoin and USD. Operational benefits for issuers, particularly those with on-chain capabilities. However, the SEC has long been hesitant to allow in-kind processes for crypto ETFs due to concerns about custody, market manipulation, and the regulatory status of crypto-native infrastructure. WisdomTree’s ETF Journey WisdomTree’s spot Bitcoin ETF , launched in January 2024, was one of several spot products approved after years of rejection by the SEC. Its approval was seen as a landmark event following Grayscale’s legal victory over the SEC in 2023, which compelled the agency to reconsider its hardline stance on spot Bitcoin ETFs. The current debate over in-kind redemptions is likely the next major battleground in the maturation of Bitcoin ETFs. A shift toward approving such mechanisms could pave the way for more efficient fund operations and greater institutional involvement in the crypto space. It would also reduce reliance on fiat settlements, aligning these products more closely with the ethos of decentralization and digital asset mobility. Industry leaders have advocated strongly for this change. BlackRock, in particular, has been vocal in its requests for in-kind permissions, suggesting that current cash-only models are suboptimal and inconsistent with traditional ETF standards. The SEC’s decision to formally institute proceedings, rather than approve or deny the request outright, indicates that the agency is seeking to build a robust legal and public record before issuing a final verdict. This approach mirrors its process during the spot ETF approval saga, in which waves of public commentary, institutional lobbying, and judicial pressure eventually influenced regulatory direction. If approved, WisdomTree’s BTCW could become one of the first US-listed spot Bitcoin ETFs to offer redemptions in actual Bitcoin — a feature that has been long sought after by crypto-native investors and fund managers alike. A Decision with Broader Ramifications Should the SEC approve in-kind transactions for BTCW, it would likely set a precedent for other issuers, including BlackRock, VanEck, and Fidelity, all of whom have expressed interest in similar capabilities. Moreover, the implications go beyond Bitcoin. Ethereum ETFs, which are still under review, could benefit from the framework set by BTCW’s outcome, potentially enabling a new generation of physically settled digital asset ETFs. As the 21-day window for public comment opens, the SEC is positioning itself to make one of the most consequential ETF-related decisions since the initial wave of spot approvals. SEC Faces Internal and External Firestorm Over Staking Guidance Shift Meanwhile, controversy erupted following new guidance issued by the SEC’s Division of Corporation Finance on May 29, which stated that some crypto staking offerings may not qualify as securities under the Securities Act. The updated stance effectively provides relief to proof-of-stake (PoS) blockchains and opens a new chapter in the SEC’s evolving approach to digital asset regulation. While the guidance was framed as an effort to provide clarity, critics argue it’s anything but. Among the harshest critics is John Reed Stark, former chief of the SEC’s Office of Internet Enforcement, who unleashed a scathing critique on social media. In a lengthy post on X, Stark accused the agency of undermining its core mission of investor protection. “This is how the SEC dies – in plain view,” Stark wrote. “It’s a shameful abdication of its investor protection mission and a betrayal of its proud 90-year legacy.” Stark emphasized that the SEC’s new position directly contradicts federal court rulings in high-profile cases against Binance and Coinbase, in which judges acknowledged that staking programs could indeed be treated as securities offerings under the Howey test, the foundational legal standard used to define securities. While the Coinbase case had been allowed to proceed in March 2024, it was later dismissed in February 2025, a shift many saw as foreshadowing the SEC’s new guidance. Similarly, the SEC’s lawsuit against Binance's staking program was dismissed with prejudice in May 2025, barring the agency from refiling the case, a ruling that marked a symbolic defeat for the regulator’s aggressive stance on staking. Internal Divide: SEC Commissioners at Odds The regulatory turmoil is not limited to external voices. Commissioner Caroline Crenshaw, a sitting member of the SEC, issued a sharply worded dissent in response to the May 29 guidance, arguing that the new interpretation does not align with legal precedent. “The staff’s analysis may reflect what some wish the law to be,” Crenshaw said, “but it does not square with the court decisions on staking and the longstanding Howey precedent on which they are based.” Crenshaw further warned that the SEC's recent actions are part of a broader trend of policy inconsistency and regulatory retreat. “This is yet another example of the SEC’s ongoing ‘fake it till we make it’ approach to crypto — taking action based on anticipation of future changes while ignoring existing law.” Her statement echoes a growing concern that the agency is attempting to rewrite policy through enforcement discretion, a practice that could lead to a ”regulatory vacuum” where market participants are left to guess what rules apply. Over the past six months, the SEC has adopted what many in the industry see as a deregulatory posture toward digital assets. In addition to dropping several lawsuits and investigations, the agency has hosted multiple closed-door roundtables with industry stakeholders aimed at ”collaborative rulemaking.” Critics like Stark have described this shift as a “crypto-deregulatory blitzkrieg” — a rapid pivot that not only contradicts prior agency enforcement actions but also risks undermining the SEC’s credibility with courts and investors alike. Regulatory Contradictions and Token Classification Confusion The May 29 guidance has also reignited a key debate over the classification of specific crypto assets. Commissioner Crenshaw pointed to a pattern of inconsistency in the SEC’s treatment of assets like Ether (ETH) and Solana (SOL). “How is it that these crypto assets are supposedly not securities when it comes to registration requirements, but conveniently are securities when a registrant sees an opportunity to sell a new product?” she asked. These comments reflect ongoing frustration over the SEC’s lack of clear standards for asset classification, a problem that has plagued U.S. crypto regulation for years. Not everyone at the Commission shares these concerns. At the Bitcoin 2025 Conference in Las Vegas, Commissioner Hester Peirce, widely known as “Crypto Mom” for her pro-innovation stance, defended the agency’s approach. “Most crypto assets, as we see them today, are probably not themselves securities,” Peirce said. “That doesn’t mean that you can’t sell a token that is not itself a security in a transaction that is a securities transaction.” Peirce emphasized that the SEC’s focus should be on the structure of the offering, not the underlying asset — a nuanced legal position that she argues requires contextual, rather than categorical, regulation. Her comments, though more tempered, align with the growing industry consensus that transaction-level guidance is essential to resolving the murky legal landscape surrounding staking and token offerings. A Divided Commission, A Fragmented Framework As it stands, the SEC appears increasingly divided on crypto policy, with Commissioners Peirce and Crenshaw representing opposing philosophical camps: one advocating for principle-based innovation, the other warning of legal overreach and dilution of the Commission’s regulatory responsibilities. In the meantime, crypto companies are left in regulatory limbo, unsure whether future products involving staking — such as staking-as-a-service, validator pooling, or liquid staking tokens — will require registration, trigger enforcement, or receive a green light under the new interpretation. For institutional investors and retail users alike, the shifting regulatory landscape creates significant uncertainty.
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Geneva, Switzerland, June 2, 2025 — TRON DAO , the community-governed DAO dedicated to accelerating the decentralization of the internet through blockchain technology and decentralized applications (dApps), participated in Bitcoin 2025, which took place May 27-29 in Las Vegas. TRON DAO kicked off the week as a top tier sponsor for Code + Country’s America 250 VIP Reception on May 27 at AYU Dayclub. This exclusive VIP experience hosted key political figures and leading voices in Bitcoin, AI, energy and technology, creating unparalleled opportunities for high-impact networking. Over 800 guests were in attendance, positioning TRON at the center of conversations shaping America’s technological future. Highlighting day one of the conference, Justin Sun, Founder of TRON and Advisor of WBTC, participated in the high-profile panel “Building The Future Financial Products of America” on the Nakamoto Stage. Hunter Horsley (CEO, Bitwise Asset Management) and Mike Belshe (CEO, BitGo) also joined Sun as speakers. Hosted by Kevin Kelly (CEO, Kelly Intelligence), the panel explored how blockchain technology and digital assets are reshaping traditional financial products for investors and institutions in the United States. “We are going to see a lot more products that blend blockchain with traditional finance,” said Sun, “Kraken’s plan to offer tokenized versions of U.S. stocks and ETFs is a perfect example. This kind of blockchain integration across finance feels inevitable.” On May 28, Sun also made an appearance at the ‘Whales & Insiders: BTCFi and New Yield Opportunities’ event hosted by MetaEra for a keynote session titled “TRON as the Global Settlement Layer.” Sharing the stage with top minds to drive conversations to frontier Bitcoin DeFi innovations. Thereafter, TRON DAO concluded day two as co-host of Kraken’s Oceanic Night Party, welcoming over 500 attendees including key ecosystem collaborators and visionaries from across the crypto industry. TRON DAO concluded the week by connecting with a prominent industry voice as Sun joined Ross Ulbricht and his family at the table for Ulbricht’s Welcome Back Luncheon, showing support to the Bitcoin community. TRON’s commanding presence at Bitcoin Vegas 2025 coincides with a period of remarkable growth for the network. Having recently surpassed the significant milestone of $77.7 billion in circulating supply of Tether (USDT), TRON has established itself as the leading blockchain for Tether globally. This reinforces TRON’s position as a dominant force in the greater blockchain and digital asset landscape. About TRON DAO TRON DAO is a community-governed DAO dedicated to accelerating the decentralization of the internet via blockchain technology and dApps. Founded in September 2017 by H.E. Justin Sun, the TRON blockchain has experienced significant growth since its MainNet launch in May 2018. TRON hosts the largest circulating supply of USD Tether (USDT) stablecoin, exceeding $77.7 billion. As of May 2025, the TRON blockchain has recorded over 309 million in total user accounts, more than 10 billion in total transactions, and over $23.5 billion in total value locked (TVL), based on TRONSCAN. TRONNetwork | TRONDAO | X | YouTube | Telegram | Discord | Reddit | GitHub | Medium | Forum Media Contact Yeweon Park press@tron.network
Coinbase was reportedly aware as early as January of a customer data leak at an outsourcing firm, months before it publicly disclosed the breach that could cost the company up to $400m. Reuters reported Wednesday that the leak originated from TaskUs, a US-based outsourcing provider with operations in India. A female employee at the company’s Indore office was allegedly caught photographing her work computer with a personal mobile phone. Former TaskUs employees were either briefed on the breach by company investigators or learned of it from coworkers who witnessed the incident. Coinbase, reportedly, was notified immediately. Coinbase didn’t return Cryptonews’ request for comment by press time. Mass Firing at TaskUs Follows Breach Tied to Coinbase Hack The woman and a suspected accomplice were accused of selling Coinbase customer data to hackers in exchange for bribes. The breach, which was first made public in a May 14 SEC filing, compromised the information of nearly 70,000 users. Stolen data included customer names, phone numbers, addresses, ID documents, account balances and transaction history. Internal company documents were also accessed. More than 200 TaskUs employees were reportedly fired in the aftermath, a mass termination that drew local press coverage in India. TaskUs confirmed that two employees were dismissed early in the year for illegally accessing client data, though the company did not name Coinbase. Coinbase is facing at least six class-action lawsuits after a major data breach involving bribed overseas support staff. #coinbase #lawsuit https://t.co/d8dVrvb7zF — Cryptonews.com (@cryptonews) May 19, 2025 Coinbase Cut Ties With Overseas Agents After Vendor Breach Coinbase, in its May SEC filing, admitted that contractors had accessed internal employee data without a business need in “previous months.” However, it said the breach only became apparent after it received an extortion demand on May 11. The hackers allegedly demanded $20m in exchange for not leaking the stolen data. Coinbase refused to pay the ransom and instead announced a $20m bounty for information leading to those responsible. In response, Coinbase said it terminated the TaskUs personnel involved, cut ties with other overseas agents, and implemented tighter controls. It has not publicly named the other foreign agents implicated. The data breach, which began with unauthorized access in Dec. 2024, shows growing concerns over the security of outsourced customer support operations. Coinbase has estimated the financial fallout from the incident could fall between $180m and $400m. The exchange is now dealing with investor lawsuits alleging they incurred substantial losses and damages because of the company’s misleading statements. The post Coinbase Knew Customer Data Was at Risk in Vendor Hack Months Before Disclosure: Report appeared first on Cryptonews .
Consensys has strategically acquired Web3Auth to revolutionize MetaMask’s user experience by integrating seamless Web2 login capabilities, addressing critical seed phrase management challenges. This acquisition notably targets the expansion of MetaMask’s
Michael Saylor’s Strategy has announced a $250 million IPO of STRD perpetual preferred shares to fund further Bitcoin acquisitions, reinforcing its aggressive crypto investment approach. The offering, managed by top