20 August

“Wells Fargo on Thursday registered a private bitcoin fund with U.S. regulators, becoming the latest mega-bank with an indirect crypto investment vehicle for its wealthiest clients.

JPMorgan also registered its passive bitcoin fund with U.S. regulators Thursday.”

See Also: Visa Adds Crypto Payments Startup Wyre to Its Fast Track Payments Program

“Institutional investors looking for cryptocurrency exposure should weigh the cost of remaining in their comfort zone. German crypto custody firm Finoa crunched the numbers and found that fees for crypto exchange-traded products (ETPs) cost four to six times more than fees for custodial services. Research from custody firm Finoa finds it cheaper for big investors to just hold crypto.

Smith said Finoa has non-disclosure agreements with three or four large financial institutions and the mood is moving toward direct crypto exposure, given the possibility to put those assets to work on a decentralized finance (DeFi) platform.

See Also: Galaxy Digital Launches DeFi Index Tracker Fund

“Regulated cryptocurrency custody firm Anchorage is offering blockchain governance voting services, starting with decentralized finance (DeFi) major Aave. Bringing offline digital assets on-chain in order to vote has been viewed as cumbersome and risky by many institutions holding governance tokens, despite the growing desire to participate in changes to a protocol.

Institutions and token holders can use Anchorage’s governance portal to participate in on-chain governance decisions critical to the Aave lending protocol. The system uses a separate voting key so that digital assets can remain safely in storage.

We can delegate to some other key the ability to vote on these protocols.”

“Gensler warned that decentralized finance (DeFi) projects aren’t immune to oversight by the markets’ regulator.

Even though they are decentralized, with no central entity in charge, DeFi projects that reward participants with incentives or digital tokens could enter territory that is subject to SEC regulation, he said.

There’s still a core group of folks that are not only writing the software, like the open-source software, but they often have governance and fees. There’s some incentive structure for those promoters and sponsors in the middle of this.”

See Also: Gary Gensler Isn’t Buying Your Decentralization Theater
See Also: Polygon to Form Decentralized Autonomous Organization

“Poly Network, the China-based blockchain protocol exploited earlier this month for more than $600 million, said Thursday it had sent a bounty worth nearly $500,000 to the attacker.

There are users who are panicking that they might lose control of their assets, and we want to minimize the impact on them, so restoring our network and our users’ assets in a secure manner as quickly as possible is our top priority.

But the attacker apparently has yet to provide a key needed to unlock the remaining $141 million.

There are still 28,953 ETH and 1,032 WBTC (about $141 million) left in 3/4 multi-signature wallets for which we await Mr. White Hat to provide his private key authorization.”

“Coinbase has announced a new support phone line for customers who believe their account has been compromised by outside actors. Users will be able to speak to a live support agent, who can kick off an investigation immediately.”

“Robinhood, has revealed crypto trading surged in popularity on the platform and now represents 41% of its revenue.

According to its second-quarter financial results, the firm generated $233 million from crypto trading services for the quarter, up from $5 million for the entirety of 2020. More than 60% of funded Robinhood accounts traded digital assets during Q2 2021.

With early 2021 witnessing the speculative dog-token trading frenzy, a whopping 62% of Robinhood’s crypto revenue was derived from Dogecoin trades.”

The State of Crypto Regulation | Jake Chervinsky