Crypto Market Update: NEAR Fund Recovery, SEC Custody Proposal Advances

The crypto market has been abuzz with news as NEAR Intents announced that its exploit is now fully resolved, with $3.8 million recovered and the investigation closed.

Alex Shevchenko confirmed that 34.59 BTC was returned to a published Bitcoin address, valued at around $2.95 million at the time, with the remaining approximately $850,000 coming back via an alternative route.

The US Securities and Exchange Commission (SEC) has taken center stage with its crypto custody proposal, which would provide investment advisers and funds with a compliant way to hold cryptocurrencies, according to Chair Paul Atkins. He emphasized that onchain markets should not be forced offshore or into ill-fitting models, hinting at further proposals in the pipeline.

Bitwise counsel expressed reservations about the framework, noting that it addresses custody concerns but leaves decentralized vaults in a 'unsettled zone.'

The SEC has also approved 3x leveraged Bitcoin, Ether, and other exchange-traded products (ETPs) for listing. The Volatility Shares funds will track Bitcoin, Ether, gold, silver, crude oil, and natural gas.

In related news, the Independent Community Bankers of America is suing the Office of the Comptroller of the Currency (OCC) over national trust bank charters for crypto firms, arguing that these charters allow them to bypass traditional banking safeguards.