This Week on Crypto Twitter: Gary Gensler Wants Ethereum Under SEC Control, Tonga Will Make Bitcoin Legal Tender

Illustration by Mitchell Preffer for decoding

In general, the markets recovered this week despite extremely volatile midweek price movements of major cryptocurrencies. On Twitter, experts were engrossed in Ethereum Merge updates, more crypto winter stories, and the latest saga of Gary Gensler’s unspoken war on Ethereum.

Terra CEO Do Kwon started the week with a bang as he lashed out at the self-proclaimed blockchain gumshoe @FatManTerra. In May, at the height of Terra’s collapse, FatMan, who claims to be connected to Terra Research Forumaccused Kwon of touch the top by cashing in hundreds of millions of dollars”straight away from LUNA’s market capitalization” over several years “to pay Terra employee salaries and operating expenses.”

What was FatMan’s offensive tweet? Nothing to do with Do Kwon! FatMan tweeted that he was offering “remaining compensation” for a “carry trade” on Bitcoin to victims of the collapse of the UST. This time it was Do Kwon who called FatMan a cheat.

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Kwon held out when a tweeter suggested he was a hypocrite.

On Tuesday, Ethereum co-creator Vitalik Buterin provided an update on the much-anticipated overhaul of the network into a proof-of-stake consensus algorithm. The second iteration of Ethereum is expected to address several key issues, including power consumption, scalability, gas cost, and speed. However, there was little to update… Everything is going according to plan.

On the same day, a solo Bitcoin miner won a six-figure block reward.

On Wednesday, a former MP from the small Polynesian state of Tonga, Mataʻiʻuluaʻi Fonuamotu (aka Lord Fusitu’a), tweeted that his country is expected to make Bitcoin legal tender next month. Lord Fusitu’a is a self-proclaimed Bitcoin bull and is known for: keep the world informed on the progress of Bitcoin adoption in Tonga.

Paolo Ardoino, the CTO of crypto exchange Bitfinex, praised El Salvador on the anniversary when Bitcoin became legal tender. In his thread, Ardoino compared the move to the italian renaissance. Ardoino is creating a lot of hype for El Salvador, but a recent report from a US NPO indicates that the use of Bitcoin in the country was minimal since the entry into force of the law.

Peter Van Valkenburgh, director of research at crypto policy think tank Coin Center, said on Wednesday that the US government, the UN and several other organizations are free to use the crypto privacy mixer Tornado Cash, despite the service being blacklisted by the US. Ministry of Finance. . A rule for them, huh?

NFT fan Cirrus has mocked crypto influencers with a chart from Dune Analytics showing daily ETH trading volumes on the NFT OpenSea market.

Finally, Vermont regulators dropped the bomb this week that bankrupt cryptocurrency lender was Celsius insolvent since 2019. Crypto podcaster Cas Piancey dug up a tweet from 2019 to show everyone he’s known since the beginning.

Gensler vs Ethereum

It was news that apparently didn’t seem all that important: U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler back allowing the Commodity Futures Trading Commission (CFTC) to oversee Bitcoin.

Gensler has stated in the past that Bitcoin is not a security and is therefore outside of his jurisdiction. This week, Gensler reiterated his stance on both Bitcoin and the CFTC as the primary crypto regulator — a proposal welcomed by many both in Washington and the industry — while hinting that he hopes the SEC will have significant jurisdiction over crypto. .

Crypto Attorney Jake Chervinsky took to Twitter after the news broke and pointed out what Gensler is not saying to claim that the SEC chief still has Ethereum in his sights.

Bitcoin enthusiast MicroStrategy CEO Michael Saylor read the news as bullish.

The next day, an SEC filing revealed that MicroStrategy would sell to $500 million in Class A shares. Guess what he can spend the proceeds on? That’s right, added to his 129,000 BTC war chest; the largest bitcoin corporate treasury in the world.

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