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Rumors about Bybit’s impending demise were quickly refuted by the exchange’s CEO. The United States House of Representatives has passed a crypto bill that could put more cryptocurrencies under the purview of the commodities regulator despite President Joe Biden and U.S. Securities and Exchange Commission Chair Gary Gensler publicly opposing the Financial Innovation and Technology for the 21st Century Act (FIT21) bill on May 22.
Bybit CEO refutes insolvency rumors, shares proof of reserves
Ben Zhou, the CEO of the cryptocurrency exchange Bybit, addressed rumors about the platform being hacked and insolvent in a post shared on X.
On May 22, rumors of an insolvent exchange circulated on X. As the rumor spread, it was further magnified by a barrage of memes copying a popular FTX-related post spreading on X, but this time, the posts mentioned Bybit.
Some made jokes about withdrawing their funds from the exchange, while others tried to understand the situation more deeply.
Within the graph, it looked like Bybit’s wallets were being drained, which may leave people to worry whether the exchange was hacked or insolvent. However, when viewed independently, the trading platform’s wallets still showed that the funds were still there.
A day later, Bybit clarified that none of the rumors were true. On May 23, Zhou officially announced on X that the rumors were false. He wrote:
“None of the rumours that I have see so far have any real facts supporting it, please be aware.”
In addition, Zhou also shared a link to Bybit’s proof of reserves (PoR) and a Nansen dashboard showing all Bybit wallets and the amount of assets they hold.
The PoR shows that the trading platform holds assets worth more than 100% of user deposits, ensuring the exchange will have all the assets readily available if users wish to withdraw them.
FIT21 crypto bill passes US House: Here’s what could happen next
A bill clarifying the U.S. securities and commodities regulator’s roles in policing crypto is headed toward an uncertain future as it makes its way to the Senate before hitting U.S. President Joe Biden’s desk.
The Republican-led FIT21, or H.R. 4763, passed a vote in the U.S. House of Representatives on May 22, with 71 Democratic Party representatives and 208 Republicans in favor to 136 against.
Its future in the U.S. Senate is unclear, as there is no companion bill, and it faces one of the country’s biggest crypto critics, Senator Elizabeth Warren.
It could still be months before the 100-member Senate considers FIT21, as there is no time constraint on when senators must act on it.
Even if they do, the bill would likely be assigned to a committee for possible rounds of reviews, hearings and markups. If it survives that, then a majority of 51 senators must vote in favor for it to pass.
Parts of FIT21 could change, with House and Senate members meeting to iron out any differences in their versions of the bill. The bill will then go back through Congress for final approval.
President Biden will then have 10 days to sign or veto FIT21. However, his administration said on May 22 that it opposed the passage of the bill but didn’t say if he would veto it.
White House, SEC chair oppose crypto legislation
President Biden and SEC Chair Gensler have released statements opposing a critical piece of legislation that could impact the regulation of cryptocurrencies in the United States.
On May 22, the White House released a notice outlining the president’s opposition to the Financial Innovation and Technology for the 21st Century (FIT21) Act, claiming it “lacks sufficient protections for consumers and investors who engage in certain digital asset transactions.” Shortly thereafter, SEC Chair Gensler released a statement claiming that the bill would “create new regulatory gaps” that could undermine the stability of the financial system.
In his statement, Gensler cited a report from Chainalysis showing that “widespread noncompliance” from crypto firms has resulted in large-scale fraud and bankruptcies. Interestingly, the same report showed that revenue from fraud was “down big” in 2023.
“The crypto industry’s record of failures, frauds, and bankruptcies is not because we don’t have rules or because the rules are unclear,” Gensler said
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