Bybit CEO Debunks Insolvency Rumors; US House Passes FIT21 Crypto Bill Amid Opposition
Summary:
Bybit's CEO Ben Zhou dismisses rumors about the company's insolvency, demonstrating transparency through Proof of Reserves (PoR) snapshot. Meanwhile, the United States House approves the FIT21 act that might allow the commodities regulator more control over cryptocurrency. However, the act faces opposition from President Biden and SEC Chair Gary Gensler, stipulating inadequate consumer and investor protections.
Responding quickly to rumors of Bybit's impending financial collapse, the company's Chief Executive chimed in. Meanwhile, American lawmakers approved a new cryptocurrency bill that could permit the commodities regulator to oversee a larger subset of cryptocurrency trades. This happened even though President Biden, together with SEC Chair Gensler, opposed FIT21 on May 22 publicly.
Bybit's CEO Ben Zhou dismissed rumors of the trading platform's insolvency and debunked hack speculations via a post on a popular network. These rumors began swirling on May 22, getting even more traction from a slew of memes imitating a viral FTX-related post, this time with mentions of Bybit.
A succession of jokes about withdrawing funds and serious inquiries into the matter amplified these rumors. Graphical representation illustrated a potential draining of Bybit's wallets, triggering speculation about a hack or insolvency. However, an independent glance at the platform's wallets confirmed the funds' presence.
Bybit, on the succeeding day, dispelled all rumors - attesting to their falsehood on May 23. He stated, "None of the rumors thus far carry concrete factual weight, exercise caution". Zhou also unveiled a link to Bybit’s proof of reserves (PoR) and a Nansen dashboard illustrating all Bybit wallets and their holdings.
The PoR clarifies that the trading platform's possessions exceed 100% of user deposits, guaranteeing readily accessible assets for potential withdrawals.
In other developments, FIT21, or the Financial Innovation and Technology for the 21st Century Act (otherwise known as H.R. 4763), secured an uncertain future as it journeys through the Senate before reaching the President's desk. The bill passed the House on May 22 with 71 Democrats and 208 Republicans backing it and 136 opposing it.
The legislation's future in the Senate remains uncertain due to the absence of a companion bill and opposition from crypto critic Elizabeth Warren. Senators have no imposed timeline for FIT21's consideration, but if acted upon, extensive reviews, hearings, and markups might follow in committee settings. The bill must receive the backing of a minimum of 51 Senators to progress.
FIT21 could undergo alterations as House and Senate members address discrepancies in their specific versions of the legislation before final approval from both the House and Senate. President Biden will then have a ten-day period to either sign or veto FIT21. On May 22, the White House declared its opposition to the legislation, though it didn't pinpoint a possible veto.
In related news, President Biden along with SEC Chair Gensler voiced their resistance to legislation with potential implications for cryptocurrency regulation in the U.S. On May 22, the White House disclosed the President’s objection to the FIT21 Act, criticizing its lack of adequate protections for consumers and investors in certain digital asset transactions. Gensler later released a statement insisting that the legislation could create regulatory loopholes, destabilizing financial systems. He alerted to a Chainalysis report's findings of cryptocurrency firms' “widespread noncompliance” leading to large-scale fraud and bankruptcies. Nonetheless, the report signified a considerable decrease in fraud-generated revenue in 2023. Gensler stated, "The crypto industry’s history of collapses, swindles, and bankruptcies isn't due to an absence of rules or unclear rules." Geraint Price, Sam Bourgi, and Felix Ng have contributed to this report.
Published At
5/23/2024 3:39:07 PM
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