Grayscale Investments has sued the U.S. Securities and Exchange Commission (SEC) after the regulatory agency rejected its application to convert its flagship Grayscale Bitcoin Trust into a spot Bitcoin exchange-traded fund (ETF).

The European Union (EU) has reached a deal regarding anti-money laundering rules that would apply to a large number of cryptocurrency transactions aiming to prevent money laundering, terrorist financing, and other crimes.

The Singapore-based cryptocurrency hedge fund, Three Arrows Capital, has reportedly entered liquidation following a court order issued in the British Virgin Islands after creditors sued the fund for its inability to repay debts.

Top stories in the Crypto Roundup today:

• Grayscale Sues SEC Over Proposed Bitcoin ETF Rejection
• EU Finalizes Crypto Anti-Money Laundering Rules
• Crypto Hedge Fund Three Arrows Capital Liquidation Ordered by Court
• What is Polygon (MATIC)?

Grayscale Sues SEC Over Proposed Bitcoin ETF Rejection

Grayscale Investments has sued the U.S. Securities and Exchange Commission (SEC) after the regulatory agency rejected its application to convert its flagship Grayscale Bitcoin Trust into a spot Bitcoin exchange-traded fund (ETF).

The SEC rejected Grayscale’s application citing concerns about market manipulation, the role of Tether in the broader Bitcoin ecosystem, and the lack of a surveillance-sharing agreement between a “regulated market of significant size” and a regulated exchange.

In the filing, Grayscale asks the U.S. Court of Appeals for the District of Columbia Circuit to review the SEC’s order. In a statement, Grayscale CEO Michael Sonnenshein said:

“Grayscale supports and believes in the SEC’s mandate to protect investors, maintain fair, orderly, and efficient markets and facilitate capital formation – and we are deeply disappointed by and vehemently disagree with the SEC's decision to continue to deny spot Bitcoin ETFs from coming to the U.S. market.”

The company will argue that the SEC has to allow products that are like other products for trading, in this case, Bitcoin futures ETFs. To date, various Bitcoin futures ETFs have been approved to trade in the U.S., while spot Bitcoin ETFs have been consistently rejected.

EU Finalizes Crypto Anti-Money Laundering Rules

The European Union (EU) has reached a deal regarding anti-money laundering rules that would apply to a large number of cryptocurrency transactions aiming to prevent money laundering, terrorist financing, and other crimes.

The rules require crypto service providers to collect and store information identifying parties involved in cryptocurrency transactions, and hand over that information to authorities conducting investigations. The rules, however, won’t impose these tracking requirements on private wallets.

The regulation has “no minimum thresholds nor exemptions for low-value transfers” and applies to every transaction involving service providers such as cryptocurrency exchanges.

With the EU’s new rules on crypto transactions, people’s identities could potentially be tied to a large number of transactions or even blocked. For transactions above €1,000 ($1,044), service providers must verify the identity of the owner of the wallet they’re transacting with.

Crypto Hedge Fund Three Arrows Capital Liquidation Ordered by Court

The Singapore-based cryptocurrency hedge fund, Three Arrows Capital, has reportedly entered liquidation following a court order issued in the British Virgin Islands after creditors sued the fund for its inability to repay debts.

Three Arrows Capital is said to have pursued an aggressive trading strategy that included highly leveraged bets on various cryptocurrencies and exposure to Terra’s algorithmic stablecoin TerraUSD, which collapsed last month.

Restructuring firm Teneo has been hired to handle the liquidation process and settle claims on Three Arrow Capital’s assets. The company is essentially representing creditors.

Crypto broker Voyager Digital has already issued a notice of default to Three Arrows Capital for the fund failing to make required payments on a loan.

What is Polygon (MATIC)?

The Ethereum blockchain is home to thousands of smart contracts and decentralized applications. The flurry of activity on it has seen transaction fees make using the network economically unviable for some of its users, creating demand for scaling solutions, like Polygon.

What is Polygon?

Polygon (MATIC) is a Layer-2 scaling solution for Ethereum that provides users with faster transactions and lower costs as a parallel blockchain running alongside the main Ethereum network.

To use the Polygon network users have to “bridge” their tokens from Ethereum to it. There are numerous decentralized applications built on top of Polygon, including several leading Ethereum-based protocols that have made their applications work on both networks.

The Polygon network can be used through cryptocurrency wallets compatible with Web3 applications such as MetaMask or the Coinbase Wallet. These are wallets that can interact with smart contracts on the blockchain and can be found built-in to some web browsers such as Opera and Brave.

What is the MATIC token?

The MATIC token is Polygon’s native currency, used to pay for transaction fees on the network. The cryptocurrency is also Polygon’s governance token, which means MATIC token holders get to vote on change proposals to Polygon.

As the network uses a Proof-of-Stake (PoS) consensus algorithm, MATIC can be staked to help secure the network in exchange for rewards in MATIC. The ticker MATIC comes from a previous stage of Polygon’s development, as at launch it was named the MATIC Network.

State of the Crypto by Top Tier Exchange Volume

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