Sup, nerds!

Here’s what you’re getting in today’s edition:

• 💅 This is cool: $300B entered the market in 4hrs 📈

• 🔎 This seems important: Is ETH about to be labeled a security?

• 🤝 Partner: Visual-based newsletter on business and tech​

• 🔪 Let's dissect this: Oklahoma just became the 12th state in the US to pass a Bitcoin rights bill

Terms used in this edition (click for an explanation, or ask Web(GPT)3!):
Market cap, blockchain.

💅 This is cool:

$300B Was Added to the Crypto Market Cap in a Matter of Hours (Here’s Why)

In one sentence: After April’s CPI data came in at 3.4% (lower than March’s 3.5%), market players went ‘risk on,’ adding $300B to the total crypto market cap in a matter of hours.

We were about to open this article with something along the lines of:

“The market just shot straight up, yet somehow, the search term ‘whiplash’ didn’t peak on Google trends? We’re just as surprised as you.”

But in a strange turn of events, that makes us question whether or not we’re living in a computer simulation: it did peak 👆

And it makes sense.

On Tuesday, just about all major crypto charts were telling us to prepare for a continuation of “choppy-droppy-price-action” (👈 that’s the technical term) which we’ve been experiencing for the past month or two…

Then BAM! $300B was added to the total crypto market cap in a matter of hours.

Here’s what did it:

April’s Consumer Price Index (CPI) data was released (aka: “how much more expensive have everyday items become in the past year” data), and it went down from 3.5% in March to 3.4% in April.

And for every month the CPI data lowers → the closer we get to interest rate cuts → the less we pay on loans and credit repayments → the more money we all have to spend → the healthier the economy becomes.

(That’s the idea at least).

And in an attempt to front run this (potential) incoming economic uptick, market players started pumping money into riskier assets, like crypto (which tends to thrive in low interest rate environments).

This doesn’t mean we’re back in ‘up only’ mode…but it’s a start!

We love to see it.

🥇 Want the news before anyone else?

🔎 This seems important:

Is Ethereum About To Be Labeled a Security?

In one sentence: There’re fears the SEC is about to label ETH a security — but they don’t need to do that to halt US-based adoption, they just need to keep their view of ETH opaque.

We’ve used this analogy twice already in the past — but man if it isn’t still relevant…

Remember that scene (☝️) in the seminal 1999 box office hit, Big Daddy?

The one where Adam Sandler and his semi-adopted son are playing cards, and no matter what hand the kid has - he moves the goal posts so he can bank a win?

It’s cute in the context of a movie, but when regulators pull similar moves, it just feels slimy.

Confused? Here’s what we’re on about:

There’re fears that the SEC is about to label the Ethereum token a security (think: a share in a company), instead of a commodity (i.e. an unchanging ‘thing,’ like gold or oil).

The basic argument from the SEC being that: ETH keeps updating and changing, therefore its a security.

While the argument from the crypto side is: sure, the Ethereum ecosystem keeps updating and changing, but the ETH token is still the same as its ever been (a vehicle for transferring value and paying for network fees).

Now, here’s where the shifting goal posts come in:

In October of last year, the SEC approved an Ethereum futures ETF to go live on US exchanges (aka: a way for traders to bet on the future price of Ethereum), classifying ETH as commodity in the process.

So to argue that ETH is all-of-a-sudden a security, goes against their past actions.

Good news:

The world of legal and political pain that this flip-flopping would bring upon the SEC is a big ol’ deterrent — potentially enough to stop them from doing it.

Bad news is:

By simply remaining tight-lipped about whether or not US companies are going to get the pants sued off them for building upon, or supporting Ethereum — the SEC can scare away a big chunk of US-based ETH adoption.

(And by proxy, “anything-that-isn’t-Bitcoin” adoption).

Rough!

🤝 Partner:

Visual-based newsletter on business and tech

We explain the latest business, finance, and tech news with visuals and data. 📊

All in one free newsletter that takes < 5 minutes to read. 🗞

Save time and become more informed today.👇

🔪 Let's dissect this:

Oklahoma Just Became The 12th State in the US to Pass a Bitcoin Rights Bill

In one sentence: Oklahoma just became the 12th state in the US to pass a Bitcoin rights bill but there is still a long way to go before any laws are put into effect.

You read it in the title: Oklahoma just became the 12th state in the US to pass a Bitcoin rights bill.

Which is huge news!

But what the heck is a ‘Bitcoin rights bill’?

Here’s what the heck a ‘Bitcoin rights bill’ is:

It’s a proposal for a new law that would help make digital freedom and innovation a right, enshrined by law.

Specifically, the key ideas in this bill include the absolute right to buy and sell BTC and the freedom to mine BTC.

It also supports mining and validation of the BTC blockchain which are crucial processes for the cryptocurrency to continue to run smoothly.

In more good news, it’s reported that the Bitcoin rights bill received an overwhelming amount of support in Oklahoma with an 81-1 vote in the State House.

Before we get too excited however, while this is great news, there’s still a long way to go before any laws are passed.

The process would look something like this: the bill gets submitted to the legislative body > reviewed by the relevant committee > presented to the full parliament or congress > voted on > approved and signed into law by the President.

So, while it feels like there’s still a long way to go, the more support that states provide, the better the chances are of a law to be eventually put into effect.

Hallelujah!

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