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This week for the crypto sector was as hot as ever. The crypto space saw concerns arising after Ethereums decentralization given the steady rise in staking by liquidity stakers. And self-limiting proposals like remedies also took-off. Ethereum ETFs have also entered the mainstream discussion since the ARK 21Shares and VanEcks filings.

U.S. regulator, Securities and Exchange Commission was also in the highlights of this week, primarily due to the challenges it is expected to face in the future. Blockchain services provider LBRY appealed in the court for the case it lost against SEC. While Congressman Tom Emmer proposed to restrict the regulators fundings until it comes up with clear crypto regulations.

Liquid staking protocols do not follow any staking limit per se and this could be a cause of concern for the community. Ethereum Beacon chain community health consultant, Superphiz, suggested self-limiting to ETH stakers to curb the growing centralization.

He recently informed that prominent stakers including Rocket Pool, StakeWise, Stader Labs, and Diva Staking agreed to the self-limit rule. However, the centralization concern is still looming over Ethereum since the biggest ETH staker is at alarming staking capacity.

Lido Finance, the biggest Etheruem staking protocol, is currently holding nearly 33% of all the staked ETH. This concern becomes more dreadful due to the protocols community not being in favor of applying the self-limiting rule.

Cryptocurrency exchange-traded funds have turned into serious investment vehicles, especially the much awaited spot Bitcoin ETFs. It isnt surprising that the community wants Ethereum to be part of the action as well.

ARK 21Shares and VanEck reported to file for spot Ethereum ETFs with the Securities and Exchange Commission (SEC).

James Seyffart, an ETF analyst at Bloomberg, emphasized the significance of 19b-4 filings compared to previous S-1 filings. He pointed out that these 19b-4 filings are expected to give the race for Ethereum (ETH) ETFs a head start, similar to what was observed with spot Bitcoin filings. This suggests that the regulatory process and filings are crucial factors in the competition to launch ETFs for different cryptocurrencies.

Blockchain-based company LBRY, which lost a legal battle against the SEC in July 2023 over the sale of unregistered securities, is now appealing the courts decision. They filed an appeal notice with the United States Court of Appeals for the First Circuit on September 7, 2023. The court had ordered LBRY to pay a civil penalty and cease offering unregistered crypto asset securities.

LBRYs decision to appeal coincides with recent wins by crypto entities like Ripple and Grayscale in cases against the SEC. LBRY hopes for a similar outcome as Ripples case, but legal experts note that each lawsuit is unique, and the fate of LBRY remains uncertain until further updates.

U.S. Representative Tom Emmer has criticized the SEC and its Chair, Gary Gensler, for their actions in the crypto space, calling it an abuse of power. Emmer has proposed restricting the agencys finances until clear crypto regulations are established, citing concerns about misuse of taxpayer funds. He aims to prevent the SEC from using funds for enforcement actions on digital assets and companies. Emmer, a pro-crypto Republican, believes Gensler has exceeded his authority.

Emmers proposal includes adding an amendment to oversee the SECs funding, ensuring restrictions on the agency and its Chair until comprehensive regulations are in place. This aligns with the growing debate among lawmakers, with some advocating for clearer crypto regulations and others supporting the SECs actions.

Additionally, key figures in the blockchain industry, including Kristin Smith and Sheila Warren, have supported this legislation. Emmers stance mirrors that of SEC Commissioner Hester Pierce (Crypto Mom), while Democratic Congressman Ritchie Torres urges Gensler to follow recent court rulings in crypto-related cases. The political landscapes potential impact on crypto regulation remains a subject of interest, with discussions surrounding the 2024 elections and their potential influence on the industry.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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Ethereum Decentralization, ETFs, & Challenges for SEC: Weekly ... - The Coin Republic