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Writer's picturemeowdini
May 233 min read

Crypto News: Bybit Rumors Debunked, FIT21 Bill Passes US House

Stay updated on the latest developments in the crypto world. From addressing rumors about Bybit's solvency to the passage of the FIT21 crypto bill in the US House of Representatives, here's everything you need to know about today's trends and events impacting Bitcoin, blockchain, DeFi, NFTs, Web3, and crypto regulation.



Key Highlights

Bybit CEO Refutes Insolvency Rumors with Proof-of-Reserves

Ben Zhou, the CEO of Bybit, responded to circulating rumors about the cryptocurrency exchange being hacked and insolvent. On May 22, speculations about Bybit's insolvency emerged on social media platform X, amplified by memes and posts reminiscent of the FTX collapse.

Some users joked about withdrawing funds, while others sought clarity. Graphs suggesting Bybit’s wallets were being drained caused further concern. However, independent verification showed that the exchange's wallets still held funds.

On May 23, Zhou officially refuted the rumors on X, emphasizing the lack of factual support and sharing Bybit’s proof-of-reserves (PoR) and a Nansen dashboard. These resources confirmed that Bybit holds assets exceeding 100% of user deposits, ensuring ample liquidity for withdrawals.



FIT21 Crypto Bill Passes US House

The US House of Representatives has passed the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill aimed at clarifying the regulatory roles of securities and commodities regulators in the crypto space. The bill, H.R. 4763, passed on May 22 with 71 Democrats and 208 Republicans voting in favor, while 136 opposed it.

The bill now heads to the Senate, where its future is uncertain, particularly with prominent crypto critic Elizabeth Warren involved. If the Senate passes the bill, it will proceed to the President’s desk for approval or veto. President Joe Biden's administration has already expressed opposition, citing insufficient consumer and investor protections.


White House and SEC Chair Oppose Crypto Legislation

President Joe Biden and SEC Chair Gary Gensler have voiced their opposition to the FIT21 bill. On May 22, the White House released a statement criticizing the bill for lacking adequate protections for digital asset transactions. SEC Chair Gensler echoed these concerns, warning that the bill could create regulatory gaps and undermine financial stability.

Gensler referenced a Chainalysis report highlighting widespread noncompliance among crypto firms, which has led to significant fraud and bankruptcies. Interestingly, the same report noted a decline in fraud revenue in 2023. Gensler argued that the crypto industry's issues stem from the enforcement of existing rules rather than a lack of regulation.


Today's crypto news underscores the importance of robust regulatory frameworks and transparency in the industry. Bybit’s quick response to insolvency rumors with proof-of-reserves showcases the need for transparency from exchanges. Meanwhile, the FIT21 bill's passage in the House marks a significant step in defining regulatory oversight for crypto, though it faces challenges ahead. As the crypto landscape continues to evolve, staying informed about these developments is crucial for traders and investors alike.



Disclaimer

The information provided in this article is for informational purposes only and does not constitute financial, investment, or legal advice. The views expressed herein are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. Cryptocurrency investments involve substantial risk, and past performance is not indicative of future results. Readers should conduct their own research and consult with a qualified professional before making any investment decisions. The author and publisher are not liable for any financial losses or damages resulting from the reliance on or use of this information.

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