SEC Attorneys Resign Amid Mismanaged Crypto Case; Possible Yield Crisis For EigenLayer; Bitcoin Fees Drop Post Halving Day Surge
Summary:
Two key attorneys of the US Securities and Exchange Commission (SEC) have resigned following the SEC's mishandling of a DEBT Box lawsuit, leaving their relatively short tenures with the securities regulator. Concurrently, EigenLayer, a prominent Ethereum restaking protocol, could be facing a major yield crisis due to its escalating total locked value (TVL). Meanwhile, Bitcoin's service charges dropped after peaking on Bitcoin halving day, with medium-priority transactions now averaging $8-$10.
In a recent development, two legal representatives for the US Securities and Exchange Commission (SEC) have reportedly stepped down after the authority's mishandling of a DEBT Box lawsuit. Observers are speculating a potential predicament at EigenLayer. Concurrently, Bitcoin's service fees have decreased after escalating to unprecedented levels on April 20— Bitcoin halving day.
Michael Welsh and Joseph Watkins, main litigants for the SEC attached to the DEBT Box case, reportedly handed in their resignations after a brief spell working for the SEC. Welsh started his term as a litigator in December 2022 while Watkins worked in the Division of Enforcement from January 2022. These resignations were triggered after the SEC was reproached by Chief Judge Robert K. Shelby for falsifying statements and misrepresentations in its lawsuit against DEBT Box.
EigenLayer, recognized as the largest re-staking protocol on Ethereum by total value locked (TVL), seems to be on the brink of a significant yield crisis as per industry insiders. An exponential growth in EigenLayer's TVL could render its Actively Validated Services (AVS) insufficient which could trigger a substantial yield reduction according to Chudnov, an anonymous contributer at 3Jane derivatives exchange.
Following a record peak of $128 on Bitcoin halving day on April 20, Bitcoin's service charges have experienced a steep decline. On April 21, Bitcoin (BTC) fees decreased to an average of $8-$10 for medium-priority transactions. The previous day, Bitcoin collected $78.3 million in total fees, outshining Ethereum by over 24 times. The day marked a payment of 37.7 Bitcoin ($2.4 million) in the form of mining fees to miner ViaBTC on the day of halving, marking it as the most desirable digital property in its 15-year existence.
Investment advice or recommendations are absent from this article. Investments and trading moves incorporate risk, necessitating independent research by readers prior to decision-making. Geraint Price, Sam Bourgi, and Felix Ng contributed to this report.
Published At
4/22/2024 11:25:22 PM
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