In today’s Crypto News Today, the cryptocurrency world faced significant developments, from a major rug pull involving the Libra token to regulatory discussions on Ethereum staking.
Libra Token Rug Pull Wipes Out $107 Million
A cryptocurrency endorsed by Argentine President Javier Milei, Libra (LIBRA), turned into a financial disaster after insiders executed a rug pull, draining $107 million and causing a 94% drop in the token’s value within hours.
On-chain intelligence firm Lookonchain revealed that eight wallets connected to the Libra team siphoned liquidity, pocketing $57.6 million in USD Coin (USDC) and $49.7 million in Solana (SOL). The token’s market cap plummeted from $4.56 billion to $257 million within just 11 hours after its debut on decentralized exchanges.
President Milei’s now-deleted endorsement on X fueled the token’s initial surge. After the crash, Milei blamed political opponents, stating, “To the filthy rats of the political caste… every day they confirm how vile politicians are.”
NYSE Seeks Approval for Ethereum Staking in Grayscale ETFs
In another significant development in Crypto News Today, the New York Stock Exchange (NYSE) has proposed a rule change to allow Ethereum staking within Grayscale’s spot Ether ETFs. The proposal, submitted to the US Securities and Exchange Commission (SEC), aims to let Grayscale earn staking rewards from its Ethereum Trust ETF (ETHE) and Mini Trust ETF.
Grayscale emphasized that staking activities would not form part of a “staking as a service” offering, assuring investors that while staking rewards are possible, specific returns are not guaranteed.
SEC’s Crypto Task Force Engages with Industry Leaders
The SEC’s Crypto Task Force recently held meetings with key stakeholders from the cryptocurrency and traditional finance sectors, focusing on regulatory clarity and staking mechanisms for exchange-traded products (ETPs).
Discussions with the Blockchain Association, Jito Labs, Multicoin Capital, and Andreessen Horowitz emphasized the need for clear guidelines on staking, token classification, and market intermediaries. Nasdaq representatives also urged the SEC to define venues permitted for crypto trading.
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