The U.S. Senate has greenlit the innovative GENIUS Act, a vital piece of cryptocurrency legislation, and K33 Research predicts a profitable long Solana/short Litecoin trade in the wake of upcoming spot altcoin ETFs. This is just some of the news in today’s roundup of crypto events.
With the crypto market feeling the pressure due to aggressive Federal Reserve projections and ongoing geopolitical issues, a market rally could still be on the cards for the latter half of the year, provided interest rates are cut and geopolitical risks diminish.
On the regulatory front, the Senate’s approval of the GENIUS Act signals the first significant cryptocurrency legislation to pass through the chamber, establishing federal rules for stablecoins linked to the U.S. dollar. This Act, backed by former President Trump’s administration, is designed to strengthen the U.S. dollar’s position by requiring stablecoins to be fully supported by dollars or other highly liquid assets, necessitating annual audits for issuers with market caps over $50 billion, and setting up guidelines for foreign issuance.
Non-financial tech companies like Meta and Amazon would be barred from issuing stablecoins unless they meet stringent risk and privacy standards. Stablecoin holders would be granted “super-priority” in bankruptcy cases, thus being the first to recover funds if an issuer were to collapse. The legislation now moves to the House for further deliberation.
K33 Research’s Vetle Lunde suggests that newly approved spot altcoin ETFs could present a compelling long Solana/short Litecoin opportunity, known as the “Grayscale effect”.
In other news, Iranian crypto exchange Nobitex was apparently compromised by a pro-Israel hacker group, leading to over $80 million in suspicious outflows. Meanwhile, Polygon’s co-founder has launched an independent zero-knowledge project called ZisK.
Lastly, the increasing use of cryptocurrencies in modern divorce cases is leading to a rise in disputes, with sudden tech interest and unexplained cash withdrawals being possible red flags of hidden assets, according to Christopher R. Castellano, a principal at Joseph, Greenwald & Laake.
