Blockchain Bites: Clearing the Record on Yellen’s Crypto Concerns and the Bitcoin Double-Spend Fracas

After dropping 13% yesterday, bitcoin is once again on the ascent. Meanwhile, Janet Yellen has offered a more nuanced view of crypto and small Ethereum mining pools are organizing a campaign against a potential network upgrade.

Top shelf

Miners revolt!
Eight Ethereum mining pools amounting to around 30% of the network’s hash power have formed a quasi-cartel to push back against a proposed blockchain update that would reduce their mining fees. Ethereum Improvement Proposal (EIP) 1559, floated by Vitalik Buterin, would burn mining fees to help reduce transaction cost volatility. While larger mining pools, like BitFly, F2Pool and Sparkpool, are ambivalent about the upgrade, smaller miners are calling to nix EIP 1559, according to CoinDesk tech reporter Will Foxley.

Trust progress?
Grayscale Investments is laying the groundwork for what could be five new cryptocurrency trusts, for chainlink, basic attention token, decentraland, livepeer and tezos. Preliminary paperwork was filed by the firm’s “statutory trustee,” though it does not guarantee any of these investable products will see the light of day, according to reporting from CoinDesk’s Dan Palmer. (Digital Currency Group owns both CoinDesk and Grayscale.)

Banking deposits
Signature Bank disclosed $10 billion in deposits from its cryptocurrency company clients, in an earnings call Thursday. Representing 16% of the New York firm’s total deposits, this sum is also twice that of competitor Silvergate Bank, which is widely considered the first crypto-forward bank, CoinDesk’s Nathan DiCamillo reports. Without revealing names, Signature’s chief executive said it now banks the “top five crypto exchanges.”

Crypto sweep
The U.S. government’s top investments watchdog flagged a series of unregistered cryptocurrency companies for allegedly duping mostly international investors with false corporate information. Of the 28 suspect investment firms the U.S. Securities and Exchange Commission (SEC) called out…

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