Top Stories This Week

CBOE Withdraws BTC ETF Rule Exchange Request From SEC Amid Gov’t Shutdown

The Chicago Board Options Exchange’s (CBOE) BZX Equity Exchange has withdrawn its request for a rule change from the United States Securities and Exchange Commission (SEC) in order to list its Bitcoin (BTC) exchange-traded fund (ETF). A CBOE spokesperson told Cointelegraph that U.S. government shutdown was the reason for the withdrawal, as the end of the review period is approaching with no government agencies able to operate fully. The CBOE will instead re-submit the filing for an ETF — which was backed by investment firm VanEck and financial services company SolidX — at a later date.

Bank of International Settlements Believes Bitcoin Must Depart from Proof-of-Work

According to new research from the Bank of International Settlements (BIS), Bitcoin’s problems can only be solved if the cryptocurrency departs from a proof-of-work system. The BIS research states that once Bitcoin’s block rewards fall to zero, the resulting transaction fees will not be sufficient to sustain mining expenses. While the study does not the existence of second-layer solutions like the Lightning Network, it notes that the only true remedy is a complete departure from proof-of-work to avoid an unusable network slowdown.

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US State of Wyoming Introduces Crypto Defining, Custody Legislation

The state of Wyoming has introduced a bill that will both define cryptocurrency assets, as well as allow banks to provide custodial services for cryptocurrencies. According to the legislation, crypto assets would be placed into one of three categories — digital consumer assets, digital securities and virtual currencies — which means they would be defined as intangible personal property, granting virtual currencies the same treatment as money. Banks that provide 60 days written notice to the commissioner will be able to service as qualified custodians for digital assets if the bill passes.

John McAfee Claims to Flee Country to Escape IRS, Conducts Presidential Campaign From Boat

Crypto entrepreneur and advocate John McAfee claims that he has fled the country this week in order to escape an indictment by the U.S. Internal Revenue Service (IRS), and will be conducting his 2020 presidential campaign from a boat in international waters. According to McAfee, a grand jury had been convened against him by the IRS. McAfee also added that he has not paid U.S. taxes for eight years, speaking already from a boat in an unknown location from which he will use proxies to conduct his campaign.

Bithumb Crypto Exchange Looks to Reverse Merger to Take Company Public in US

Blockchain Exchange Alliance, a Singapore-based holding firm that has a controlling stake in crypto exchange Bithumb, is looking to acquire a publicly traded company in the U.S. According to media reports, Blockchain Industries — a publicly traded company — has signed a binding letter of intent with the Blockchain Exchange Alliance, which would in effect be the first instance of a crypto exchange going public if the reverse merge proves to be successful. An unnamed source added that the combined company plans to eventually “uplist” from the OTC markets to the New York Stock Exchange or Nasdaq.

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