delay - Pwim.Net

Ethereum Network Planned Hard Fork Delayed Due to Late Acceptance of EIPS

The blockchain infrastructure company running the core of the Ethereum network has delayed the planned hard fork launch until September 6th. 

During the dev meeting, Pooja Ranjan, founder of Etherworld presented meeting notes which suggested that, in accordance with the Parity core developer, Wei Tang, there is bound to be a two-week delay before any proceeding in selecting the block numbers with regards to the Istanbul fork.

Wei expressed concerns over gas issues which would require immediate resolving prior to launching or implementing the mainnet hardfork, as it could result in complications in changing the course once the fork occurs. This could result in the delay past September 6, Wei argued.  

Not to mention, Buterin of Ethereum has previously highlighted that the Ethereum blockchain itself is reaching full capacity.

Buterin stated:

“Scalability is a big bottleneck because the Ethereum blockchain is almost full. If you’re a bigger organization, the calculus is that if we join, it will not only be fuller, but we will be competing with everyone for transaction space”

Image via Shutterstock

SEC Delays Decision on Overstock-Backed Security Token Exchange

The U.S Securities and Exchange Commission (SEC) has postponed the decision of disapproving or approving the launch of the Boston Security Token Exchange (BSTX). The commission is seeking more time and more feedback before it makes such a decision.

The Commission Seeks More Feedback Over Next Three Weeks

In a letter published on April 1, the SEC delayed the current April 2 deadline because it requires more feedbacks and reviews of the operations of the proposed BSTX, the one affiliated with Overstock’s blockchain arm tZERO.

BSTX is a project working to become a regulated exchange for trading security tokens, the platform would be jointly owned by tZERO (the blockchain arm of Overstock) and Box Digital Markets.

The commission was scheduled to announce a decision on BSTX yesterday, but because of some policy and legal matters, it is extending the deadline. The SEC is particularly interested to know whether BSTX’s operations meet compliance requirements of the Securities Exchange Act of 1934. The commission also wants to know whether the information that tZERO and BOX had provided will be sufficient to make an adequate ruling concerning the BSTX’s approval.

The SEC had warned parties involved that should these two issues not sufficiently be addressed then might contribute to grounds for summary rejection. The commission has given the parties three weeks to submit their initial thoughts, and another two weeks to respond to others’ comments.

The BSTX proposal was at first filed in May 2019 in which the SEC published for public consultation in October. Last month, BOX filed an amended BSTX proposal to increase the number of market markers needed for an initial listing from two to three and to tighten the overall listing standards of the exchange.

There also have been several concerns raised by industry actors. For instance, Nasdaq stock exchange raised their concern to the SEC, saying that the BTSX proposal might create an “unreasonable burden on competition” as the underlying blockchain technology (distributed ledger) would be exclusively available on BOX. Moreover, Nasdaq stock exchange mentioned that the proposal seems to provide “inadequate” detail concerning BTSX’s digital securities technology and infrastructure pairing with the existing equities market infrastructure.

All these explained the reason why industry actors wanted the commission to spend more time before rejecting or approving BSTX’s proposal.

SEC’s Latest Guidance on Digital Assets Securities

In July 2019, the SEC published a framework that all security token investors and issuers must follow. All investors and issuers must be declared effective by the agency before they can commence with their security token sale.

Moreover, to operate their trading platforms, all investors and issuers are required to register with the agency as broker-dealers who are expected to safeguard customer assets and to keep client’s assets separate from the company’s assets under the Consumer Protection Act. The commission has been active in bringing fines and charges to individuals who have failed to create tokens without any use-value. Therefore, with more time granted for more feedbacks and reviews, it remains to see whether the SEC will approve or reject BSTX’s proposal.

Image via Shutterstock

Ethereum 2.0 Developer Says Phase 0 Most Likely Delayed Until 2021, Vitalik Buterin Disagrees

The much-awaited Phase 0 of Ethereum 2.0, also known as Serenity, may not be launched until the beginning of 2021. This was announced by one of the project’s researchers, Justin Drake on Reddit—much to the confusion of Ethereum creator Vitalik Buterin.

Ethereum developer, Justin Drake announced the delay to Serenity’s Phase O in a Reddit ‘Ask me Anything Session’—where he was quizzed on the potential date for the network upgrade. Since Vitalik Buterin announced Ethereum 2.0, its features and development process back in October 2019, the Ethereum community has enthusiastically anticipated the project’s launch date.

While the Reddit session showed that the members of the community are not pleased with the delayed launch, Drake stated that the upcoming holidays will interfere with other programs required to perfect before the project goes live.

Vitalik Buterin Publically Disagrees

As outlined by Justin Drake, the project has a bit more ground to cover before it can go live. The Ethereum Foundation’s strive to implement a public testnet with 3+ clients is one of the primary causes of the delay. This multi-client testnet will have to run smoothly for about 2-3 months according to the developer. An incentivized “attack net” must also run for 2-3 months as well as a bounty program and a serious differential fuzzing across clients. Justin argued that all these are not feasible in the third quarter of 2020 and that the launch will most likely coincide with Bitcoin’s 12th anniversary, January 3, 2021.

Vitalik Buterin, one of the Ethereum Network’s creators, outright disagreed on the proposed delay to launching in 2020. He argued:

“Eth1 took 4 months from the first multi-client testnet to launch (~end of March 2015 Olympic to end of May 2015 for eth1 launch), and I’d argue the four-month clock started ticking for us at the beginning of July when Altona launched. Eth2 phase 0 is in some ways simpler than eth1 and in some ways more complex: more complex PoS, but no complicated GPU-oriented PoW; more optimization required, but no complicated VM, etc etc. I’m inclined to say eth2 phase 0 is a little simpler on-net. Also, eth2 is not going to have any critical applications depending on it until phase 1, so the practical risks of breakage are lower (though you could argue the ecosystem as a whole is bigger). So, on the whole, I see no reason to take more time for the eth2 phase 0 launch cycle than we did for the eth1 launch”

The anticipation of Ethereum 2.0 has sparked some bullish runs in Ethereum’s price in the past weeks. Currently, Ethereum’s price is $240.28 having lost 0.36% to the dollar in the past 24 hours.

FTX Founder's Lawyers Consider Delaying Criminal Trial

Lawyers representing Sam Bankman-Fried, the founder of FTX, have suggested that they may need to delay his criminal trial due to a lack of evidence from the DOJ. In a letter to United States District Judge Lewis Kaplan, Bankman-Fried’s lawyers stated that they are still waiting for a “substantial portion” of evidence to be turned over to them and that more charges had been laid against the FTX founder in late February.

The criminal trial, which is scheduled to begin on October 2, will focus on fraud charges brought by the DOJ. Bankman-Fried’s lawyers have not formally requested a date change, but they have stated that it may be necessary. According to the letter, prosecutors from the DOJ are holding evidence from devices belonging to Caroline Ellison, the former CEO of FTX’s sister trading firm Alameda Research, and Zixiao “Gary” Wang, an FTX co-founder. Both Ellison and Wang have pleaded guilty to fraud charges and are cooperating with the DOJ.

Bankman-Fried’s lawyers have stated that they are also waiting for contents from “computers belonging to two other former FTX/Alameda employees.” They anticipate that the evidence from these devices “will be voluminous and critically important to the defense.”

The letter also noted that Bankman-Fried was hit with new charges relating to conspiracy and fraud when a superseded indictment was unsealed on February 22. The number of charges against him was bumped up from eight to twelve. Bankman-Fried had previously pleaded not guilty to the original eight charges that were brought against him in December.

The delay in evidence being handed over to Bankman-Fried’s lawyers could have significant implications for the trial. If the defense does not receive the evidence it needs to prepare its case, it may be forced to request a delay. This would mean that the trial would not begin as scheduled on October 2.

The criminal trial against Bankman-Fried has attracted significant attention in the crypto industry. FTX is one of the fastest-growing crypto exchanges in the world, and Bankman-Fried is seen as a leading figure in the industry. The outcome of the trial could have implications for the regulation of the crypto industry, as well as for the future of FTX.

Bank of Russia Delays CBDC Pilot Rollout

The Bank of Russia’s central bank digital currency (CBDC) pilot, which was scheduled to begin on April 1, has been delayed indefinitely due to specific legislation only passing through the first reading in the Federal Assembly’s lower house. The legislation is expected to be enacted by early May, according to a report by the state-owned TASS.

The CBDC pilot was initially set to involve 15 private banks, but the number has since been reduced to 13. Some of the employees from these banks, along with one of the country’s largest insurance companies, Ingosstrakh, will become the test participants for CBDC retail payments.

Bank executives have expressed enthusiasm for the project, with the director of innovations at Sinara Bank, Vitaly Kopysov, stating that “the use of smart contracts should reduce the operational load of banks and make the deals transparent, which not only will reduce the chances of the misuse of government and banks’ funds, but ultimately simplify the control over the existing contracts.”

Although the pilot will involve real operations and limited consumers, the general public will be unable to participate in the first stage. The banks will enter the pilot with selected customers, and the Bank of Russia will determine how to scale the digital ruble further following the first stage.

The CBDC pilot was initially scheduled for 2024, but it was moved to an earlier date as the Russian central bank sought an alternative to the SWIFT payments system amid Western economic sanctions against Russia. The digital ruble aims to provide a secure and transparent payment system that reduces the dependence on foreign payment systems and minimizes the risk of financial crimes.

The Bank of Russia has been working on the development of the digital ruble since 2019, and it aims to provide an efficient payment system that can be used for various transactions. The CBDC will be a legal tender that will function similarly to traditional cash, but it will be digital and operate on a blockchain network.

The delay in the CBDC pilot rollout is expected to be a temporary setback, as the Bank of Russia remains committed to implementing the digital ruble. The CBDC will provide a secure and efficient payment system that will benefit the economy and the financial system as a whole.

SEC Delays Decision on Spot Bitcoin ETFs Due to U.S. Government Shutdown Concerns

The Securities and Exchange Commission (SEC) of the United States has recently announced the postponement of its decision regarding several proposals for spot Bitcoin exchange-traded funds (ETFs). This decision impacts applications from well-known entities such as BlackRock, Invesco, Bitwise, and Valkyrie, as stated in separate filings made on September 28.

The surprise delay, which came two weeks earlier than the anticipated deadline between October 16–19, has left many applicants puzzled. Analysts, including James Seyffart from Bloomberg ETFs, suggest that the applications submitted by Fidelity, VanEck, and WisdomTree might face similar delays.

The timing of these delays is directly linked to the looming shutdown of the United States government, expected to commence on October 1 or possibly even earlier, according to James Seyffart. This situation is poised to disrupt various federal agencies, including financial regulators.

This means we are expecting all #Bitcoin ETF’s squared in Magenta to get their Delay orders today or tomorrow. (these are early due to the govt shutdown)

The SEC’s decision to postpone a significant number of spot Bitcoin ETF applicants was initially made at the end of August, just as the first deadline was approaching. Market participants now await the SEC’s decision, which is expected no later than the middle of March.

The Securities and Exchange Commission’s decision to postpone the evaluation of spot Bitcoin ETF applications has sent ripples through the cryptocurrency and financial markets. These ETFs are highly anticipated by both institutional and retail investors, as they would provide a regulated and accessible way to invest in Bitcoin.

The delay, however, is not merely a bureaucratic decision. It is rooted in the practical concerns of the potential U.S. government shutdown. This shutdown, if it occurs, could disrupt the normal functioning of various federal agencies, including the SEC. As a result, the SEC has opted to defer its decisions on these crucial ETF applications to ensure that they are made under stable and secure conditions.

The news of the SEC’s decision has had a mixed impact on the cryptocurrency market. On one hand, it reflects the SEC’s cautious approach to approving Bitcoin-related financial products, which has been a consistent theme in recent years. On the other hand, market participants were hopeful that these ETFs would bring more institutional money into the cryptocurrency space, potentially driving up prices.

Investors in cryptocurrency-related assets, including Bitcoin, have been closely watching the ETF approval process. The delay has introduced uncertainty into the market, which often responds negatively to such uncertainties. Bitcoin’s price experienced a slight dip in response to the news, but the full extent of the market’s reaction remains to be seen.

The SEC’s decision to postpone the evaluation of spot Bitcoin ETFs due to concerns about a potential U.S. government shutdown has added another layer of complexity to the cryptocurrency regulatory landscape. While it is a temporary setback, it underscores the regulatory challenges that cryptocurrencies face as they continue to gain mainstream attention.

Market participants will closely monitor developments surrounding these ETF applications and the U.S. government’s funding situation. The decision expected by mid-March will provide clarity on whether these ETFs will finally become a reality. In the meantime, the cryptocurrency market will continue to evolve, with or without the ETFs, as it matures and adapts to changing regulatory dynamics.