Ethereum ETF Hopes Dim as SEC Silence Persists

Ethereum ETF Hopes Dim as SEC Silence Persists

The dream of a spot Ethereum ETF seems to be fading fast. Bloomberg Senior ETF Analyst Eric Balchunas is now placing the odds of approval at a mere 25%, citing the SEC's lack of engagement with the proposals.

"The silence is deafening," Balchunas stated on [Platform where he made the statement]. "The lack of engagement seems deliberate, not just a delay. There are no positive signs anywhere."

Adding to the uncertainty, concerns are swirling about how the SEC views Ethereum itself. Reports suggest the regulator has subpoenaed crypto firms regarding their interactions with the Ethereum Foundation. This could hint at a potential classification of Ether as a security, which would significantly complicate the path for an ETF.

Tether Makes a Bold Move: From Stablecoins to AI

Tether, the company behind the world's largest stablecoin USDT, is making a surprising leap into the world of artificial intelligence (AI). Announced on March 26th through a blog post, Tether is aiming to become a leader in fostering innovation within the AI space.

This move signals a significant shift for Tether, whose core product, USDT, boasts a market capitalization exceeding $100 billion. Their new AI division plans to focus on open-source AI models, aiming to set industry standards and increase accessibility. Additionally, they intend to showcase cutting-edge AI projects and contribute to the open AI community.

"Artificial intelligence stands poised to revolutionize nearly every facet of our lives," said Paolo Ardoino, CEO of Tether. This statement highlights Tether's belief in the transformative potential of AI.

Tether's foray into AI isn't entirely unexpected. They previously invested in Northern Data Group, a company specializing in high-performance computing solutions. This strategic investment aligns with the significant processing power needed for advanced AI development.

Feds Charge KuCoin with Anti-Money Laundering Violations

In a major crackdown on crypto exchanges, U.S. federal prosecutors have charged KuCoin, a major crypto exchange, and two of its founders with violating anti-money laundering (AML) laws. Announced on Tuesday, the indictment accuses KuCoin of operating illegally within the U.S.

Here's a breakdown of the accusations:

• Unregistered Money Transmission: The Department of Justice (DOJ) alleges KuCoin functioned as a money transmitter for over 30 million customers but failed to register with the Financial Crimes Enforcement Network (FinCEN). This registration is mandatory for businesses handling money transfers.

• Lack of AML Program: The indictment further claims KuCoin lacked a proper AML program until 2023, which is crucial for preventing money laundering and terrorist financing. Even then, existing customers weren't subject to these new KYC (Know Your Customer) procedures.

• Misrepresentation: Prosecutors also accuse KuCoin of misleading at least one investor about their U.S. operations.

The DOJ press release confirms that neither KuCoin founders, Chun Gan and Ke Tang, were arrested. This suggests the legal battle is likely to unfold in the coming months.

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