Coinbase Files A Lawsuit Against The SEC

Tuesday, April 25, 2023

Quick Take

  • Coinbase files a lawsuit against the SEC.
  • Ether.Fi staking program offers free machine to solo stakers.
  • Binance introduces a wrapped version of its staked ETH.
  • Client teams successfully sync EIP-4844 devnet 5.

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Coinbase Files Suit Against The SEC

Coinbase filed a lawsuit against the SEC for failing to respond to a rulemaking petition. The petition was filed in July 2022 and asked for regulatory clarity around existing securities laws and the digital asset sector. The SEC is legally required to respond to petitions within a reasonable time, however, Coinbase is yet to receive a response.

The new action filed Monday asks a federal court to order the SEC to provide a response. The filing comes as SEC Chair Gary Gensler was unable to clarify if Ether is a security or a commodity during a congressional hearing. Last month, Coinbase received a Wells notice from the SEC over its listed assets and staking services.

Ether.Fi Launches Staking Program

Liquid staking protocol Ether.Fi announced a staking program that offers a free machine for Solo Stakers looking to run an Ethereum node. Coined as Opertation Solo Staker, the program prioritizes decentralization and aims to empower solo stakers globally. In the initial cohort, 12 individuals will be selected to run an Ethereum node.

Ether.Fi, in partnership with Avado, DAppNode, and Obol Network, will provide the hardware, ether, and software required. Selected stakers who commit to running a node for three years get to keep their machine and will be compensated for running the node. Currently, more than half of all Ethereum nodes are based in the U.S.

Binance Introduces Wrapped Beacon ETH

Binance, the largest CEX by trading volume, introduced a wrapped version of its liquid staking token. Coined as wrapped Beacon ETH (WBETH), the token represents a wrapped version of the exchange’s BETH staked token. Similar to stETH and wstETH, WBETH will be value accruing whereas BETH is rebasing.

Binance aims to provide its stakers with access to DeFi. Unlike BETH, which is native on BNB Smart Chain, WBETH will be supported on Ethereum Mainnet. Binance currently advertises 4.26% APR on its staking service. Alternate liquid staking providers Rocket Pool and Lido currently offer an APY upwards of 5.1%.

KZG Ceremony Lowers Nonce Requirement

Individuals with a transaction nonce of 64 can now participate in Ethereum’s KZG Ceremony. The ceremony re-opened for public contributions last week. A phased nonce requirement was introduced to prevent long wait times in the lobby. Yesterday, the lobby was down to only 6 participants. Over 90k contributions have been made so far.

The KZG Ceremony, or trusted setup, is an exercise that collects entropy from contributors to be used in a commitment scheme for proto-danksharding EIP-4844. All users who participate in the ceremony will be eligible for a POAP at the completion of the exercise. The contribution period will remain open until EIP-4844 is production ready.

Client Teams Sync EIP-4844 Devnet 5

Ethereum client teams have successfully synced the fith iteration devnet for EIP-4844. Nethermind, Prysm, and Lodestar can successfully sync to devnet 5. Additional consensus layer clients will be synced in the coming weeks. Devnet 5 is the first post-Shapella devnet for EIP-4844 and is expected to be long-running. The release eliminates zero blob transactions and aggregated proofs.