3 July

“The launch of the energy efficient Ethereum 2.0 network will popularize the proof-of-stake consensus mechanism and make staking yields a more attractive source of income for both institutional and retail investors according to a new JPMorgan report.

The two senior analysts also compared the financial incentives with staked cryptocurrencie to cash, cash equivalents, and fixed income instruments like U.S. Treasury bonds:

Yield earned through staking can mitigate the opportunity cost of owning cryptocurrencies versus other investments in other asset classes such as US dollars, US Treasuries, or money market funds in which investments generate some positive nominal yield. In fact, in the current zero rate environment, we see the yields as an incentive to invest.”

See Also: Scaramucci’s SkyBridge Capital to Launch Private Ethereum Fund and Apply for Ethereum ETF

“Before banks and financial institutions can get involved in automatic anonymous lending, permissioned versions of decentralized finance (DeFi) will have to emerge – and with it, a system of whitelisted and blacklisted wallet addresses, according to Aave founder Stani Kulechov.

Kulechov said permissionless DeFi will always exist, but there will also be “layered and tailored” DeFi made up of private pools and whitelisted markets. Fireblocks is assisting Aave to explore how such markets can be deployed.

We are able to basically validate and vet them into the network and essentially create this sort of gated community.

Novogratz of Galaxy pointed to two options going forward: the “walled garden” approach being explored by Fireblocks and Aave, and what he called the “chain surveillance option” where enough work can be done to figure where transactions are coming from.”

“The U.S. Congress Oversight and Investigations Subcommittee, a division of the House Financial Services Committee, summoned cryptocurrency experts on Wednesday.

Representative Tom Emmer was concerned that America may not get the full benefit from its cryptocurrency entrepreneurs if innovation is stifled by lack of clarity in regulation, and his concerns were shared by many other representatives and crypto experts.

He called for a robust classification system for digital assets to determine whether cryptocurrencies are securities, commodities, or merit the same treatment as fiat. He also highlighted the potential that Bitcoin and blockchain platforms have to offer in creating better transparency and trust than traditional systems.

Unlike Rep Sherman, the majority of the members of Congress were eager to find out more about cryptocurrencies, including their impact on market volatility, the environment, and much more besides.”

See Also: Fed’s Powell May Have Met With Coinbase CEO in May
See Also: U.S. Urges El Salvador to Ensure Bitcoin Is ‘Well Regulated’

The Cayman Islands’ financial regulator has joined a list of watchdogs globally that are scrutinizing Binance and its business dealings.

Binance Group and Binance Holdings Limited are not registered, licensed, regulated or otherwise authorized by the Authority to operate a cryptocurrency exchange from or within the Cayman Islands.”

See Also: Singapore’s Financial Watchdog to ‘Follow Up’ on Global Binance Concerns

“Bitcoin mining uses a negligible amount of energy, is rapidly becoming more efficient, and is powered by a higher mix of sustainable energy than any major country or industry.

The estimate was based on a three question survey of just 32% of the miners on the network. It found respondents “are currently utilizing electricity with a 67% sustainable power mix” which it used as the basis for its 56% estimate across the overall network. The validity of the data and estimates resulting from BMC’s survey is unclear, as it relies heavily on voluntary and self-reported responses from just a subset of the network.

The BMC defines sustainable electricity as “hydro, wind, solar, nuclear, geothermal, and carbon-based generation with net carbon credits,” which are based on principles from the International Energy Agency’s (IEA) Net Zero by 2050 report.”

2 July

“A new law in Germany that could theoretically prompt up to $415 billion to flow into crypto takes effect Thursday. The law allows “special funds” to invest up to 20% of their assets in crypto. Spezialfonds are the dominant institutional investment vehicle in Germany.

A sizable allocation of this market toward crypto could have profound implications across Europe, because the country has the eurozone’s largest economy.”

See Also: Soros Fund Management Is Said to Be Trading Bitcoin: Report
See Also: BaFin-Licensed DeFi Firm Swarm Starts Onboarding $15M of Pledged Liquidity

Strike is letting its U.S. customers buy and sell bitcoin for almost zero in fees, sending shots across the bows of Coinbase, Square’s Cash App, PayPal and other incumbents.

The Chicago-based startup, best known for helping El Salvador adopt bitcoin, said Thursday it would charge only around 0.3% for brokering BTC trades in the 48 states and other U.S. jurisdictions where Strike operates. By comparison, Coinbase, which went public on the Nasdaq this year, collects as much as 3.99%, depending on the payment method and transaction size.

Acquiring open-source money should be free. It is a race to zero.

If widely adopted, Strike’s new service stands to drive down the price of bitcoin trades for retail investors in the U.S. market. The service will start with a wait list, and open to the public in the coming weeks.”

“ETH 2.0 now has 10x more staked Ether to power its proof-of-stake mechanism than the Ethereum Foundation required at launch six months ago. The Ethereum Launchpad, Ethereum 2.0’s portal for validators to stake their coins, shows some 5.9 million staked Ether and almost 180,000 validators powering the blockchain Wednesday.

Traders and investors are bullish for Ether as they anxiously await the London hard fork scheduled for July.”

“Binance said it is using crypto intelligence firm CipherTrace’s “Traveler” product to help it comply with global “travel rule” regulations. CipherTrace released the tool in March to help tackle hacks and fraud by scanning addresses associated with incoming crypto transactions.

The Financial Crimes Enforcement Network and Financial Action Task Force’s “travel rule” regulations require virtual asset service providers to exchange identifying information when conducting transactions.”

See Also: FATF Report on Extreme Right Financing Highlights Cryptocurrency Use

“Some traders, analysts and economists have speculated that financial losses at Tether or even a crisis of confidence might trigger a sell-off that could put downward pressure on prices for other cryptocurrencies. The Fitch report suggests the turmoil also could also have implications for traditional markets.

A sudden mass redemption of USDT could affect the stability of short-term credit markets if it occurred during a period of wider selling pressure in the CP market. These figures suggest its CP holdings may be larger than those of most prime money market funds in the U.S.

There’s less risk associated with coins that are fully backed by “safe, highly liquid assets,” according to the rating service. Stablecoins that use fractional reserves may run a greater risk.”

See Also: Stablecoin insurance firm Bridge Mutual to protect against possible Tether depegging
See Also: 1inch to launch dollar-pegged stablecoin with ICHI

“Russia’s central bank named 12 banks that will be involved in the initial testing of the nation’s future central bank digital currency (CBDC), the digital ruble.

Previously, the Bank of Russia said it was planning to develop a prototype of the digital ruble by December and start piloting it next year. It’s not clear yet if the project will be built on a blockchain, and, if so, on which one.”

See Also: Spain Considers Implementing a Digital Euro
See Also: Ukraine Puts CBDC On Par With Cash in New Payments Law

“Speaking during the CNBC Financial Advisor Summit on June 29, Senator Lummis stated she would like to see Bitcoin and other crypto-assets become a normal part of diversified asset allocations used for retirement funds in order to protect them from inflation.

I’d also like to see individuals be able to use Bitcoin and cryptocurrencies of their preference that are safe, that have met the hurdles of anti-money laundering and Bank Secrecy Act.

While U.S. citizens have been able to include crypto assets in their retirement portfolios since the Internal Revenue Service first issued guidance on the sector in 2014, the practice of hodling digital assets in one’s retirement plan has remained a niche practice.”

“The social media platform shared a series of tweets featuring a number of different images with the Twitter logo and a Tamagotchi virtual pet.

In March, CEO Jack Dorsey called attention to a tokenized version of his first tweet on the NFT platform Valuables; it sold for $2.9 million.”

See Also: 3 reasons why analysts are turning bullish on Curve Finance (CRV)