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Cryptocurrency News Today: US Senate Votes Against SEC | CME Group to List BTC | JPMorgan on BTC mining
Bitcoin (BTC) Price Action May 12-17, 2024.
The figure is down from previous estimates of more than $50,000, and the drop was attributed to the drop in hashrate after the halving event, which slashed the price CoinBase miners receive a reward for each block found by half, as unprofitable miners leave the network.
JPMorgan analysts noted that there was a delayed release, attributed to the launch of the Runes Protocol, a new method of token creation within the Bitcoin network that triggered a temporary spike in transaction fees, which in turn once compensated for the impact of the halving.
The report highlights that the boost provided by Runes was short-lived, as revenue from transaction fees has since dropped dramatically. As the network’s energy consumption has fallen more than its hashrate, he adds, unprofitable miners with inefficient operations have left.
JPMorgan’s report predicts limited Bitcoin upside in the near future due to several headwinds, including the lack of positive catalysts and the fading momentum of retail cryptocurrency investors.
US Senate Votes to Overturn SEC Rules on Cryptocurrencies
Lawmakers in the U.S. Senate voted 60-38 to pass a joint resolution, HJRes. 109, aiming to overturn a Securities and Exchange Commission (SEC) rule that affects financial institutions that do business with cryptocurrency companies.
The resolution aims to cancel Staff Accounting Bulletin no. 121, which requires banks to keep customers’ digital assets on their balance sheets and maintain sufficient capital against them, something many lawmakers and industry leaders see as a barrier to innovation.
The resolution previously cleared the U.S. House of Representatives and now faces a potential veto from President Joe Biden, who said he plans to veto the bill after raising concerns about investor protection and the stability of the financial system as a whole.
If the President were to veto the bill, it would return to Congress where a two-thirds majority in both houses would be needed to override the veto.