At the time of writing, LDO and RPL are facing losses of 15% and 10% respectively, as the market responds to recent regulatory news. Ethereum (ETH) has also experienced a nearly 3% decline in price, while Maker (MKR), Uniswap (UNI), and Arbitrum (ARB) have seen decreased trading. The market downturn is believed to be connected to the US Security and Exchange Commission’s (SEC) lawsuit against Consensys, the Ethereum software company responsible for the MetaMask crypto wallet.
While the SEC recently approved spot Ethereum ETFs for the US market, concerns lingered due to the securities watchdog’s Wells Notice against Consensys. This notice signaled potential enforcement action, with the SEC issuing its stance on MetaMask, Consensys’ crypto wallet, and staking service platform. However, following Consensys’ announcement that the SEC had concluded its Ethereum 2.0 probe, there were gains.
Additionally, the SEC indicated that Lido and Rocket Pool staking operations with ETH imply investor expectations of profits, which are tied to the managerial efforts of these two protocols.
