17 August

Audius, a music streaming platform based on the Ethereum and Solana blockchains, is partnering with TikTok on the video-sharing app’s new “TikTok Sounds” library. The partnership is the first of its kind for TikTok, and aims to streamline TikTok’s current music upload and selection process. Audius users are now able to simply upload tracks and share them to TikTok.

We’re proud to be one of the earliest launch partners for TikTok Sounds and to give the artists on Audius a chance to increase their exposure even more.

Audius, which was founded in 2018, is now the largest decentralized consumer blockchain application, by some metrics. The platform boasts a roster of over 100,000 musicians including Skrillex and deadmau5. TikTok, which now has over 1 billion monthly users, reported that 75% of its U.S. users find new artists via TikTok videos.”

Ledger announced a new partnership with Ethereum 2.0 (Eth2) staking solution Lido Finance in a move that claims greater accessibility and liquidity for independent stakers in the market.

By eliminating the high barrier-to-entry for staking ETH, this partnership has set a precedent, allowing users to stake a nominal amount of ETH.

Users attempting to stake their Ether (ETH) in the past have been met with daunting economic hurdles. The current cost to become an Eth2 network validator stands at around $100,000. Centralized ETH staking options are available on exchanges such as Coinbase or Kraken, but these carry a hefty entry fee and obvious trust concerns — not ideal for investors who maintain the core industry value of free asset autonomy.

For each Ether you’ll stake through LIDO you’ll receive stETH in exchange. These can be exchanged, sent, or sold using services such as Paraswap.”

“Reps. Patrick McHenry (R-N.C.) and Glenn Thompson (R-Pa.) said Securities and Exchange Commission Chair Gary Gensler’s recent comments on increasing crypto regulation, and a letter Gensler sent Sen. Elizabeth Warren (D-Mass.) that the SEC needs more authority to regulate cryptocurrency, provide a “concerning roadmap for regulatory actions that will have long-term implications.”

Rather than regulate innovation and job creation out of this country, we should promote an active dialogue between regulators and market participants.

The two said that lawmakers and regulators should work together to balance protecting innovation with any new regulations to “ensure the digital asset marketplace flourishes in the United States.” They called on Gensler, Behnam and their fellow commissioners to provide details on how the SEC and CFTC plan to work together on these issues.”

“While an announcement might be weeks away, the White House’s selection is a continuation of Behnam’s role as acting chairman, which began in January.

Behnam has spoken favorably on the use of blockchain technology in financial markets and previously called for an “open mind” on regulation in the fintech space.

Argus enables backtracing of pirated content to the source with a corresponding watermark algorithm. Also named “proof of leakage,” each report of leaked content involves an information-hiding procedure. This way, no one but the informer can report the same watermarked copy without actually owning it.

In the implementation, we overcome a set of unavoidable obstacles to ensure security despite full transparency.

With the security and practicality of Argus, we hope real-world antipiracy campaigns will be truly effective by shifting to a fully transparent incentive mechanism.”

“This Sunday, Aug. 15, will be the 50th anniversary of the end of the Bretton Woods currency system. After World War II, major nations essentially agreed to peg their currencies to a gold-backed dollar. But by 1971, faith in the U.S. dollar was eroding, forcing President Richard Nixon to end the dollar’s convertibility to gold. This ushered in the current status quo of relatively free-floating “fiat” currencies.

Over the past few months, massive coronavirus pandemic relief spending in the U.S. has triggered worries that faith in the dollar’s soundness could be shaken again as it was 50 years ago. The dollar’s share of central bank balance sheets is still a dominant 59%, but has been slowly declining – threatening to take with it a number of economic and political advantages.

Despite high anxiety about the yuan’s rising influence, China faces a deep, possibly unsolvable conflict between its global currency ambitions and its domestic economic agenda: The Chinese Communist Party maintains tight currency controls to encourage domestic investment, but a reserve currency must be freely tradable.

Between that conundrum and the inconsistency of Chinese regulation, experts are generally skeptical that the yuan can climb much in the global reserve rankings anytime soon. Japan, meanwhile, doesn’t sell enough debt abroad for its bonds to take up a large share of global reserves.

Among current options, the euro seems to be the most serious competitor to the dollar, thanks to the large eurozone economy behind it and the relatively open and responsible management of the European Central Bank.

This, I think, is where to watch for the next major wave of bitcoin adoption: smaller nations with troubled currencies or histories of monetary mismanagement. For them, bitcoin is something entirely novel: a store of value that’s not dependent either on their own central bank, or a potentially hostile third nation. It’s clear they’re paying attention to the possibilities.

“World Mobile, the U.K.-headquartered telecommunications group that is building the mobile network, is working to bring internet connectivity to nearly half of the population of the world still not connected to the Internet, starting in Africa.

The company’s blockchain-powered wireless mesh network – a set of devices or nodes that work together to share data and information without a centralized point of failure – aims to provide affordable internet access to communities typically ignored by traditional telecommunication service providers.

Meanwhile, the public sale of WMT is expected to kick-start the network’s sharing economy, and incentivize node operators and other WMT owners to improve services and grow the network.

World Mobile is currently deploying equipment to 25 sites in the Tanzanian archipelago Zanzibar to give an estimated 100,000 people or more affordable access to the internet.”

“The Poly Network cyberattack saga has dragged into its second week with the hacker or hackers yet to provide the key for the multi-signature wallet needed to complete the full return of the roughly $600 million that was stolen.


The attacker now says they are considering accepting the $500,000 bounty offered by Poly Network as a reward for returning the funds, and using it to pay anyone else who can hack the DeFi site.”

14 August

“The president of Argentina, Alberto Fernandez, has suggested that he is amenable to the idea of crypto playing a larger role in Argentina’s economy. Fernandez was asked if he would consider making use of a central bank digital currency, or perhaps even emulate El Salvador and adopt Bitcoin as legal lender:

I don’t want to go too far out on a limb […] but there is no reason to say ‘no.’ Perhaps that is a good path to take. They say the advantage is that the inflationary effect is largely nullified.

According to the government’s own data on inflation, $100 at the beginning of Macri’s term would be equivalent to $661 today.”

See Also: Israeli Financial Authorities Double Down on Bitcoin-Linked Investments: Report

The U.S. Treasury Department is preparing to offer an olive branch to crypto developers, miners and hardware firms spooked by the bipartisan infrastructure bill’s tax reporting requirements. Citing an unnamed department official, Bloomberg said Friday that Treasury won’t go after crypto entities that don’t meet the tax code’s definitions of a “broker.” Guidance on the matter could come next week.

The Treasury statement, which is not yet public, could provide a workaround by effectively limiting the bill’s scope to those classified as brokers under the tax code. But it is not entirely clear how that carve-out would combat the concerns of the bill’s staunchest opponents.

Treasury is reportedly planning to exempt non-broker parties on a case-by-case basis, a far cry from the more sweeping exemptions the industry had sought.”

“Ether traders are acutely focused on data from the underlying Ethereum blockchain’s recent upgrade, known as the London hard fork – and the potential for the refresh to reduce the cryptocurrency’s supply growth. The big question is whether institutional investors who are creeping into digital-asset markets might start to see ether as an inflation-resistant asset, similar to the way many bitcoin bulls have cast that cryptocurrency.

We expect fees moving through the platform to increase concurrent with the recent uptick in market activity and consequently should continue to see further disinflationary and perhaps even deflationary effects on Ethereum’s circulating supply, resulting in positive price performance.

It’s notable that Mike McGlone, the Bloomberg Intelligence analyst who won big plaudits for his (ultimately) accurate call last year that bitcoin would hit $50,000, raised the possibility in a report this week that ether might eventually challenge the larger cryptocurrency for the top spot in the rankings of digital assets by market capitalization.

As bitcoin has rallied 16% in August, ether has outperformed with a 26% gain. On a year-to-date basis, ether has quadrupled in price while bitcoin is up 58%.

There appears little can stop the process of ethereum ‘flippening’ to take the top spot by market cap, even it takes years rather than months at current trajectories. Ethereum appears on an enduring path as the go-to platform for the crypto ecosystem and decentralization of finance akin to Amazon Inc. and e-commerce.”

This is the first complete merger of one blockchain network into another. Polygon, a “layer 2” platform on the Ethereum blockchain, is merging with rollup platform Hermez Network in a 250 million MATIC deal.

The Polygon-Hermez merger is part of Polygon’s new strategic focus on ZK technology, also announced Friday. Polygon has made a $1 billion commitment to developing ZK-based systems.

We consider ZK cryptography the single most important strategic resource for blockchain scaling and infrastructure development.

Hermez will be absorbed into the Polygon ecosystem under the name Polygon Hermez, where it will become a part of Polygon’s line of products, including Polygon SDK and Polygon Avail. The entire Hermez project – its employees, technology and native HEZ token (which holders will be able to exchange at a rate of 3.5 MATIC: 1 HEZ) – will be integrated into Polygon’s platform.

Earlier this year, two Ethereum projects, Keep and NuCypher, announced a merger of their protocols into a decentralized autonomous organization (DAO) in a project nicknamed “Keanu,” but will keep their brands and companies separate. And Yearn Finance frequently announces mergers and partnerships, but it is unclear what is happening under the surface of those deals.”

13 August

“55 of the top 100 banks by assets under management (AUM) have some form of exposure to the novel technology. This involvement reportedly cuts across direct and indirect investments in crypto and decentralized ledger technology firms by the banks themselves or via their subsidiaries.

Blockdata’s research places Barclays, Citigroup and Goldman Sachs among the most active backers of crypto and blockchain firms, with JPMorgan and BNP Paribas also identified as serial investors in the emerging space. These investments are part of a larger trend of significant backing for blockchain startups, with funding figures already doubling the amount recorded in 2020.

Blockdata attributed the growing crypto and blockchain involvement among banks to three main factors — skyrocketing profits of cryptocurrency startups, regulatory advancements, and the increasing demand among bank customers for exposure to digital assets.

At $58.09 billion as of the time of writing, Coinbase sits on a valuation almost half that of Goldman Sachs, the 13th largest bank in the world, despite employing only about 4% of the latter’s workforce.”

See Also: Blockchain, Crypto Investment in H1 Topped 2018-20 Full-Year Totals: KPMG
See Also: DBS Bank Gets Greenlight From Singapore Regulator to Provide Crypto Services

“Including the fees generated by both Uniswap v1 and its v3 deployment on Optimism, roughly $1.02 billion has been distributed to Uniswap liquidity providers since the protocol’s creation in November 2018.

By contrast, IntoTheBlock’s data shows that the Bitcoin network has generated $2.24 billion in fees since its 2009 launch, while the DeFi-driven surge in activity on Ethereum has raised its total fee revenue to $4.74 billion in six years.

With Ethereum’s recent London upgrades introducing a burn mechanism into the network’s fee market on Aug. 5, the surging popularity of Ethereum-based DApps has resulted in $100 million worth of Ether (ETH) being burned and more than 1,000 deflationary blocks being mined over the past week.

See Also: Anchorage Digital Adds Ethereum DeFi Token dYdX
See Also: Leading Latin American Venture Firm Kaszek Makes First DeFi Investment

U.S. Rep. Anna Eshoo (D-Calif.), asked House Speaker Nancy Pelosi (D-Calif.) to amend the crypto tax provision in the Senate’s infrastructure bill in an open letter on Thursday. Eshoo, described by Politico in 2014 as “Pelosi’s closest friend in Congress,” wrote that the current definition of the term “broker” for crypto tax reporting purposes is too broad and may be difficult for some entities to comply with.

When the House takes up the Senate bill, I encourage you to amend the problematic broker definition in Section 80603 of the legislation.

Eshoo joins a growing group of bipartisan lawmakers pushing back against the crypto provision. House Financial Services Committee Patrick McHenry (R-N.C.) and a handful of other congressmen on both sides of the political aisle have expressed their support for changing the language.

The House is in recess, but is expected to take up the bill when it returns at the end of August.”

As the SEC weighs approving its first bitcoin ETF, Kryptoin and others are getting in line for an ETH ETF. VanEck filed for a similar ETH vehicle in May.

The trust will not purchase or sell ether directly, although the Trustee may sell ether to pay certain expenses. Instead, when it sells or redeems its shares, it will do so in ‘in-kind’ transactions in blocks of 100,000 shares.”

See Also: Crypto Asset Manager Valkyrie Files for Bitcoin Futures ETF

“Crypto has now gone mainstream. We have double-digit percentage adoption in both developed and developing countries. We even have Bitcoin adopted as legal tender in a country and many other countries are considering adopting Bitcoin as legal tender.

What’s more interesting to see is the growth and acceleration of institutional adoption of cryptocurrencies. Almost all major institutions have invested in cryptocurrencies or plan to invest in cryptocurrencies.”

“According to a Thursday update on the attack from Poly Network, all of the $610 million in funds taken in an exploit that used “a vulnerability between contract calls” have now been transferred to a multisig wallet controlled by the project and the hacker. The only remaining tokens are the roughly $33 million in Tether (USDT), which were frozen immediately following news of the attack.

The hacker had been communicating with the Poly Network team and others through embedded messages in Ethereum transactions. They seemed to have not planned to transfer the funds after successfully stealing them, and claimed to do the hack “for fun” because “cross-chain hacking is hot.”

Poly Network said it determined that the attack constituted “white hat behavior” and offered the hacker, whom it dubbed “Mr. White Hat,” a $500,000 bounty.

The poly did offered a bounty, but I have never responded to them. Instead, I will send all of their money back.

Though the hacker’s identity has yet to be made public, Chinese cybersecurity firm SlowMist posted an update shortly after news of the hack broke, saying its analysts had identified the attacker’s email address, IP address and device fingerprint.”

“China’s central government issued a five-year plan Wednesday that calls for tougher regulation across industries, signaling that the last few months’ crackdown on tech industries that has shaken investors’ confidence in the market will not abate any time soon.

Beijing’s push to rein in tech industries goes far beyond crypto, and has led global investors to reconsider their exposure to China. Share prices for Chinese tech giants like Tencent and Alibaba have been tumbling, and SoftBank is holding back on investing in the country.”

“The electronics giant plans to test the functionality of BOK’s CBDC pilot with its Galaxy smartphone.

Specifically, Samsung wants to know whether it is possible to ‘conduct payments via mobile phones using the digital currency with no internet availability.’

12 August

“Bitcoin remains in a long-term uptrend despite the sharp 50% correction from the all-time high of over $63,000 in April. Buyers were able to defend support at around $30,000 after a two-month consolidation phase, which resolved to the upside. Bitcoin faces resistance at $50,000 to $55,000, which could stall the recovery given short-term overbought signals.

Unlike the 2018 bear market, bitcoin is currently holding above the 40-week moving average, which reflects renewed upside momentum. Bitcoin will need to form a decisive break above $55,000 to fully resolve the selling pressure from May.”

“EIP 1559 is live on Ethereum. So far, it appears to be effective at doing two things, including burning ether and curbing block sizes to an ideal target. It hasn’t been so effective in helping users predict what transaction fees will look like over a few minutes or hours, but it has removed the uncertainty for users trying to price their transactions in the heat of the moment.

A total of 22,708 ETH worth roughly $71.6 million has been burnt since the London upgrade, representing roughly 33% of new coin supply growth. Users have paid a total of 7,141 ETH, worth roughly $22.4 million at time of writing, in priority fees [‘tips’] since the activation of the London upgrade.

Reduced revenue from transaction fees does not appear to have significantly affected total miner revenue on Ethereum. Part of the reason for persistently high miner revenue levels is the bullish price breakout for ETH, which took off in earnest a day prior to London.

London … is driving this activity [and] it’s mostly institutional.”

The $400 billion asset manager is expanding its investments strategy to include bitcoin and ether. Asset management firm Neuberger Berman has given its $164 million commodities-focused mutual fund the go-ahead to invest indirectly in bitcoin and ether for the first time.

The fund, which as a mutual fund would be widely available to investors, has been on a tear this year as commodity prices surged. Its top holdings were gold, corn, heating oil and Brent crude at the end of June.”

Exchange tokens and digital assets associated with proof-of-stake blockchain networks have outperformed the broader cryptocurrency market since the end of 2019, while privacy-focused digital tokens have underperformed.

As the market matures, monitoring crypto’s market segments may help determine which network features investors are rewarding, as well as the prospect for practical applications of the technologies.”

In a letter to U.S. Sen. Elizabeth Warren (D-Mass.), Gensler said Congress should grant the agency with additional oversight and enforcement abilities to monitor “transactions, products and platforms” in the U.S. crypto sector.

In my view, the legislative priority should center on crypto trading, lending and DeFi (decentralized finance) platforms. Regulators would benefit from additional plenary authority to write rules for and attach guardrails to crypto trading and lending.

It’s unclear whether Warren intends to introduce legislation calling for new regulations to address Gensler’s concerns or whether other federal agencies or private companies will also be solicited for their views on the issue.”

See Also: Commercium Financial Becomes Fourth Wyoming-Chartered Crypto Bank

“When Poly Network announced the hack and the associated wallet addresses, the accounts held over $600 million in various cryptocurrencies. Less than $400 million remained by the time the hacker said he was ready to return the funds.

The hacker has been embedding messages to transactions with his own addresses to communicate with the world. Dozens of people have used the same method to ask for handouts.”

See Also: Returned Funds, Blacklisted Tokens Raise More Questions Than Answers in DeFi’s Biggest Hack

“The U.S. Consumer Price Index jumped by 5.4% in the 12 months through July, the same pace as June but slightly exceeding the 5.3% increase expected by economists. The rest of the report was illustrative of easing bottlenecks in the global supply chain.

The July CPI report may not influence tapering discussions at the Federal Reserve. In last month’s FOMC press conference, Fed Chair Jerome Powell noted that the central bank is aiming to make gains in its goal to reach maximum employment before tapering.”

See Also: US Senate Passes $3.5T Budget Plan

“USD Coin (USDC), Circle’s dollar-pegged stablecoin, seemingly lost one of its biggest competitive advantages over its main rival, Tether (USDT).

The Coinbase website now states that USD Coin is “backed by fully reserved assets,” contrary to the now-removed claim of “backed by U.S. dollars in a bank account.”

A [recent] audit by multi-national tax advisory firm Grant Horton showed that 61% of USDC’s reserves were held in cash and cash equivalents, while 9% of the reserves were held in commercial paper.”

See Also: ‘Shark Tank’s’ Kevin O’Leary becomes FTX spokesperson, will be paid in crypto

Chinese payments app Alipay is now requiring users to hold onto non-fungible tokens (NFTs) for at least 180 days before they can transfer them. Users can send NFTs only to accounts that have passed real-name verification. The terms also state that the copyright of digital works belongs to the creator or issuer and that buyers can’t use them for commercial purposes without consent.

Ant Group, Alipay’s parent company, has been trying to “rectify” its standing with regulators for almost a year, after its initial public offering was abruptly halted last year.”

The digital cedi will be tested with banks, payment service providers, merchants, consumers and other stakeholders. Giesecke & Devrient will be providing the technology for the currency. Munich-based Giesecke & Devrient provides banknote and securities printing services as well as cash-handling systems.

In July, Bank of Ghana First Deputy Gov. Maxwell Opoku-Afari said the last phase before implementation of a digital cedi is ‘expected to start by September.'”

11 August

“The U.S. Senate passed its bipartisan infrastructure bill to the House of Representatives Tuesday after a 69-30 vote.

The provision expands the definition of a “broker,” leading to concerns the Internal Revenue Service might seek to impose broker information reporting requirements on non-broker entities such as miners. Advocates for the crypto industry pushed back on the provision, leading to lawmakers introducing amendments to try and modify the language. Ultimately, no amendments were considered, and the Senate voted to discuss only the base bill late on Sunday night.

The infrastructure bill will now go to the House of Representatives, which is expected to take up the issue in the autumn. The crypto provision faces bipartisan opposition there as well, with Representatives Patrick McHenry (R-N.C.), Darren Soto (D-Fla.), Ro Khanna (D-Calif.), Tom Emmer (R-Minn.) and Ted Budd (R-N.C.) all expressing an interest in modifying the language.

It’s unclear how much leeway the House will have to modify the bill.

See Also: With Crypto Tax Rules, Conservatives Chose Tax Cheats Over Free Enterprise
See Also: Congress’s Misstep on Crypto Reporting Shows the Dangerous Allure of Surveillance

“AMC Entertainment Holdings, which runs the largest movie theater chain in the U.S., will begin accepting bitcoin payments for tickets and concessions by the end of the year. AMC did not specify what technology it would use to process the payments. The company has 593 theaters in the U.S. and 335 international locations.

We are also in the preliminary stage of now exploring how else AMC can participate in this new burgeoning cryptocurrency universe and we’re quite intrigued by potentially lucrative business opportunities for AMC if we intelligently pursue further serious involvement with cryptocurrency.”

See Also: Venmo Credit Card Holders Can Now Trade Cash Back for Crypto

“Poly Network, a protocol launched by the founder of Chinese blockchain project Neo, operates on the Binance Smart Chain, Ethereum and Polygon blockchains. Tuesday’s attack struck each chain consecutively, with the Poly team identifying three addresses where stolen assets were transferred.

At the time that Poly tweeted news of the attack, the three addresses collectively held more than $600 million in different cryptocurrencies, including USDC, wrapped bitcoin, wrapped ether and shiba inu (SHIB).

The $600 million figure would place the Poly Network hack among the largest in crypto history.

We call on miners of affected blockchain and crypto exchanges to blacklist tokens coming from the above addresses.

Tether froze approximately $33 million in relation to the hack. Poly Network was the second Chinese interoperability protocol to be featured on the government-backed Blockchain-based Service Network.

As evidenced by all the exploits we’ve seen, cross-chain is a very hard area … with the added complexity of connections with every other chain and all their idiosyncrasies.”

Coinbase said Tuesday it’s working with PNC Bank, the fifth-largest bank in the U.S., on a previously undisclosed crypto project. The service would give the Pennsylvania-based national bank more seamless access to cryptocurrency investments for its clients, the source said.

In recent months, we have formed partnerships with industry leaders including Elon Musk, PNC Bank, SpaceX, Tesla, Third Point LLC, and WisdomTree Investments.”

See Also: Korean Crypto Exchanges Paid $14.7M to Banks for Name Verification Services: Report

“The fund is billed as an actively managed ETF with exposure to bitcoin futures and other investment vehicles and products that provide exposure to bitcoin. These may include crypto ETFs listed in other jurisdictions, such as Canada. The fund will not invest in bitcoin or other digital assets directly.

The investment firm is resubmitting the application with minor amendments in the hope that the greater maturity of the futures market will make for a different outcome this time around. VanEck unsuccessfully attempted to list such a fund with the SEC in 2017. Recent comments by Chair Gary Gensler have indicated that futures products may be considered.

We are committed to bring to market a bitcoin ETF. Futures markets have matured a significantly since 2017.”

Helium is one of the few “real-world” Web 3 projects tapping token-powered incentives to fuel growth. The decentralized telecommunications network now has over 100,000 hotspots.

The network uses LoRaWAN technology to connect devices (think scooters, e-bikes or environmental sensors) to the internet. Helium hotspots, which mine HNT as a reward for expanding wireless coverage, are now in 112 countries.

What Helium has so far done with telecoms in the wireless space is almost like Airbnb enabling people to monetize their real estate in the form of a mini-hotel.

Crypto offers a new paradigm for computation that is already reaching into verticals far beyond finance and money.”

See Also: Status plans to incentivize node operators for decentralized messaging protocol

“BitMEX will pay a $100 million penalty to resolve the [civil] charges, with $50 million going to the CFTC and the remainder to FinCEN. The blog post did not address the criminal charges filed by the U.S. Department of Justice against former BitMEX CEO Arthur Hayes and other executives.

A consent order in the CFTC case, filed Tuesday, found that BitMEX offered U.S. persons leveraged and unlicensed crypto products – a violation of federal law – between 2014 and 2020. In doing so, BitMEX employees violated the Bank Secrecy Act, commodities regulations and CFTC rules.

This action highlights that the registration requirements and core consumer protections Congress established for our traditional derivatives market apply equally in the growing digital asset market.

As part of the settlement, BitMEX will refrain from offering futures or other types of crypto commodity contracts in the U.S. without registering with the CFTC, or operating a swap trading facility. The company is also required to ensure it has adequate KYC procedures moving forward.”

See Also: ‘Crypto Mom’ Hester Peirce slams SEC for $10M Poloniex settlement

“A total of J$230 million, or roughly US$1.5 million, will be issued to deposit-taking institutions and authorized payment service providers as part of the CBDC pilot program that ends in December. Alegislative amendment to accompany the country’s CBDC would be in place by the end of the fiscal year.

The central bank has been working with Ireland-based technology firm eCurrency Mint on the project.”

10 August

The Senate rejected an amendment championed by the cryptocurrency industry that exempts non-custodial crypto actors from a crypto tax reporting requirement built into the $1 trillion infrastructure bill.

After putting forth rival amendments last week, the senators behind those amendments agreed on a compromise on Monday morning. The Toomey-Warner-Lummis-Sinema-Portman amendment made clear that non-custodial actors such as Bitcoin miners, validators on proof-of-stake networks, wallet providers, and protocol developers would not be included in the bill’s reporting mandate.

However, as debate on the infrastructure bill had already closed on Sunday evening, the amendment could only be adopted into the bill by unanimous consent; a single “nay” vote would sink it and send the bill’s original language forward for a vote tomorrow.

Sen. Richard Shelby (R-AL) tried to piggyback consideration of his own amendment, which would have added $50 billion in military spending, to the crypto amendment. Sen. Toomey, who had risen to ask the room for unanimous consent, allowed it, but Sen. Bernie Sanders (I-VT) would not. Sen. Shelby then killed the cryptocurrency amendment.

If the bill is approved by the Senate, it will then go to the House of Representatives [which is not expected before the fall].”

See Also: ‘We’ll be back on this’ — Alabama senator derails crypto amendment with two words
See Also: US Senate Set for Final Vote on $1T Infrastructure Bill (Video)
See Also: Against the US Senate’s Heavy-Handed Crypto Provision

We’ve now given over 400 projects mainnet access, and dozens of them have successfully completed their deployments. We know that end users have been waiting eagerly for their chance to interact with their favorite apps on Arbitrum, and we’re excited to announce that we will be opening up to users late this month.

Opening up a general L2 is uncharted territory, and our guiding principle is to make sure that we do so responsibly and safely. This is still early software, and we will be operating Arbitrum with several guardrails in place for the time being. While we will do our best to ensure uptime, our core focus will be security and users should be prepared for downtime and outages in the early days that will decrease steadily over time.”

“In May, Tether published a breakdown of its reserves, showing that about 50% of its reserves was held in commercial paper. But that breakdown report was not “attested” to. In the latest attestation report, Tether not only included the composition of its reserves, but also provided a breakdown of the ratings and maturity of its commercial paper (CP) and certificates of deposit (CDs).

Roughly 93% of Tether’s commercial paper and certificates of deposit holdings was rated A-2 and above, while 1.5% was rated below A-3.

​​As of June 30, Tether was the defendant in four ongoing legal cases, ‘the outcomes of which cannot yet be reasonably reliably estimated by management,’ according to the report.”

“Non-fungible token (NFT) marketplace OpenSea topped the leaderboard in gas consumption on Ethereum over the past 24 hours in a rare flippening of decentralized finance (DeFi) stalwart Uniswap.

Since 2020’s “DeFi Summer,” Uniswap – Ethereum’s largest decentralized exchange – has typically commanded the most in daily transaction fees, a key barometer for actual usage of the world’s second-largest blockchain.

However, the resurgence of NFTs from early-2021 highs has helped put OpenSea in the top spot with over $1.9 million in gas spent on transaction fees in the past day. By comparison, a combined $1.57 million in transaction fees has been spent on Uniswap V2 and V3.

There have been a slew of NFT projects launched in recent weeks, like Space Poggers, Pudgy Penguins and Sad Frogs District. Glassnode projects that OpenSea could do $1 billion in volume during the month of August with a run rate of 300,000 unique users.”

“Fresh on the heels of announced plans to go public, Circle said Monday it intends to become “a full-reserve national commercial bank.” To be clear, this would be an industry first, with a scope far beyond the OCC banking charter already conditionally issued to Anchorage, Paxos and other crypto-native financial services firms.

This would allow us to access the Federal Reserve System directly, reducing the costs and time for settling transactions.

We are embarking on this journey alongside the efforts of the top U.S. financial regulators, who through the President’s Working Group on Financial Markets are seeking to better manage the risks and opportunities posed by large-scale private-sector dollar digital currencies.”

Spoiler alert: Private blockchains have no compelling value proposition. If you and a bunch of other companies could agree upon a single vendor to build and run a blockchain, you could just as easily agree upon the rules of setting up a centralized server.

Indeed, most enterprises have come to that conclusion. A survey commissioned by EY and Forrester in 2019 showed that for each company that was willing to join another company’s private blockchain, two companies started their own. There is no path there to sustainable network scale. Nearly 75% of private blockchain users believe the best future path is on a public network.

So why is it that so many companies continue to invest in private blockchains? The answer is that large enterprises are deeply risk-averse. They want to get to the real thing: public blockchains; they just want to get there in the lowest risk manner possible.

The most common road map is the creation of a separate Ethereum-based private blockchain with the intent to connect and migrate to the public Ethereum main network in the future once the entities involved are comfortable with the technology. The problem is that permissioned systems are much too easy to customize in ways that make them unsustainable in the long-term.

These delicate ecosystems, built in a safe, cozy world of design-by-committee with only nice people at the table, would be slaughtered if exposed to the real Ethereum blockchain ecosystem. Even worse, over time, these sheltered ecosystems drift ever further from the public standards.

There’s a better way: Instead of building a fully private blockchain, companies that cannot bring themselves to go all the way public from day one should look at building connected, permissioned sidechains to the Ethereum network. Though still permissioned, these connected side chains would be much more closely linked to the standards and tooling of the public Ethereum main network. They can and should use the same token and security standards as the public networks, even if all the participants are permissioned.

In this model, migrating to a public network would be a much faster and actually viable path forward with lower risk of stranded investment.

For all the same reasons that the open, public internet has become our dominant networking technology, public blockchains, most probably Ethereum, will take up a similar role in the economy. And private networks, a lot like corporate private intranets, will never go away, but they will become ever-less strategic to the ecosystem or the companies involved.”

The Disrupt Weekend

The Senate didn’t find the time yesterday to vote on two rival amendments that determine which crypto entities must provide customer information to help pay for Joe Biden’s $1 trillion infrastructure bill.

The Senate is considering dozens of amendments, and the unwillingness of some Senators to expedite a vote on final passage of the bill may push it “until Monday night into Tuesday morning.” But the crypto provision, and other amendments, are expected to be dealt with before the final passage.

One of the amendments, proposed by Senators Ron Wyden (D-OR), Cynthia Lummis (R-WY), and Pat Toomey (R-PA), and favored by the crypto industry, would exempt non-custodial entities, like Bitcoin miners and wallet operators, from handing over customer information to the tax authorities.

The other amendment, proposed by Senators Mark Warner (D-VA) and Rob Portman (R-OH), and favored by President Biden, has been significantly revised after the crypto industry threw cold water on it. Originally, it exempted proof-of-work entities, like Bitcoin miners, but didn’t remove tax reporting obligations for proof-of-stake entities like Ethereum 2.0 validators. The crypto industry said this was unworkable because non-custodial entities don’t collect information about the people that use them.

Senators Warner and Portman have since revised their amendment to exempt both proof-of-work and proof-of-stake entities, but not any other consensus mechanisms. The crypto industry doesn’t like the revision either, since it favors two consensus mechanisms for no clear reason.”

See Also: Two Senators Propose Exemptions to Crypto Tax Reporting Required By US Infrastructure Bill
See Also: #DontKillCrypto Trends As Ted Cruz Warns Of ‘Dangerous’ Provisions In Infrastructure Bill
See Also: Tesla’s Musk Urges Lawmakers Weighing Infrastructure Bill’s Tax Provision Not to Pick Crypto ‘Winners or Losers’

“The metaverse that many futurists envision is similar to the ones portrayed in sci-fi stories like “Ready Player One.” While no one knows for sure what the metaverse will look like, its basic characteristics are established – it spans physical and virtual worlds, is centered around a fully functioning economy, and allows users to travel through its different “places” with relative ease, maintaining their purchased goods and avatars.

A collective virtual experience could bring new opportunities to creators, gamers and artists in the same way non-fungible tokens (NFT) have, not just reshaping the creator economy, but inventing it anew.

The virtual world of the metaverse could become its own trillion-dollar industry. A go-to for entertainment, commerce and, for some, even a place of work. The metaverse is not being described as an extension of the internet but a successor. And it’s being built using blockchains and decentralized applications.

Behind the scene of the metaverse will be a demand to deliver permissionless identity, financial services and high-speed exchange. Data will have to be stored and served to millions if not billions of people. Cryptocurrencies could become the sole legal tender used in the metaverse, with all virtual objects and intangible items being expressed as NFTs.

The metaverse will become the gateway to most digital experiences, a key component of all physical ones, and the next great labor platform.”

Highly Recommended Read from Futurist Daniel Jeffries.

When you embrace the future you can learn to work with it and you can make better decisions.

You can figure out where to invest and how to see your competition coming before they see you coming. You can look deeply at a technology you’re working on and understand where it has to go to really breakthrough to the next level of adoption. You learn to think better and more clearly and with greater insight.

And when you understand where everything is going, it makes it easier to understand what’s happening today.

It doesn’t matter what you did yesterday. Get the future wrong and your empire crumbles in an instant before your very eyes.

Kodak shows the power of broken models of reality, aka broken or outmoded beliefs. They believed because their business worked for 100 years it was proof that it would last for a 100 more but new technology can smash an old business model like a lightning strike.

Too often people form a belief and then they actively look to destroy any information that challenges that belief or they twist and warp any incoming information to fit that belief. Don’t mistake your beliefs and opinions for reality.

Probability thinking is the first essential of future thinking. Never assign 0% or 100% because life is too uncertain to be 100% about almost anything. Absolutist thinking is for idiots, dictators and religious zealots. Always be willing to update your ideas. New information should take you in new directions. The mark of brilliant thinking is not rigidly clinging to what you already believe, but updating again and again.

The coronavirus is the single most society-warping event since World War II and if you want to see the future you simply can’t overlook it. It’s set in motion a number of powerful forces that will play out over the rest of our lives.
If you’re like most people, you’re probably thinking that we’re at the tail end of the pandemic. Societies are opening back up and vaccines are rolling out across the world at record speed.

But I put it at a 65% probability that we’re really just at the beginning of something that will reshape our world for decades to come.

It’s also a catalyst to four titanic technological and societal changes:
-The genetics revolution
-A remaking of work
-The rapid ascent of AI
-The battle for privacy vs centralized control

The Evolution of Power and Money:

Over the last 200 years we’ve seen the inexorable rise of the nation state. Everyone today is used to living with a stable border, with a set flag and a patriotic song but that is an anomaly in history.

Now we’re seeing the centralized power of governments reach deeper and deeper into all our lives. During the pandemic, governments exercised tremendous control, shutting down entire economies and enforcing lock-downs and emergency border controls.

But a counterbalancing force is developing, a reaction to the rise of hard, central power.


The coming decades will be a near constant battle between the forces of control and openness, freedom and fear, centralization and decentralization. And no place is that war more prominently reflected than in the evolution of money.

A lot of crypto enthusiasts try to convince everyone that crypto isn’t a threat to the old way of life but that’s exactly what it is. It looks to replace centralization with decentralization, widespread surveillance with privacy, choke points with fluidity.

The power to print money is the power of the Gods. It’s the power of control and no government will let go of that control without a nasty fight. In the end though, they’re on the losing end of history.

Eventually, nothing will be able to stop the evolution of money from nation state money to global currencies and private currencies, but in the next twenty years it will be a war between central bank digital currencies that have surveillance baked into every step, and decentralized money bound to no nation state.

With those new CBDCs, countries will have full surveillance right in your pocket at all times at all times. Every transaction you ever make. Everywhere you ever go. All of it tied to your identity and history and geolocation data.
A decade after that you won’t file your taxes, they’ll get yanked out automatically every time you buy a second-hand toaster at a garage sale.

If Bitcoin was the cave man’s sling-shot of crypto, zero-knowledge proofs are the warp drive.

We’ll also see the rapid rise of zero knowledge architectures, where everything is peer-to-peer and everything is encrypted by design. We’ll have peer to peer encrypted, zero-knowledge forums, messaging and video that prove nearly unstoppable as they let people talk freely in even the most authoritarian regimes. That will spark new revolutions in thought and expose people to a richer diversity of information.

In the end, anyone who looks at crypto as nothing but a series of price swings on a little screen is missing forest for the trees. They’re fixated on the iteration and missing the category of massive disruption that decentralized trust will bring to the world and to the nature of power.

In the end, the power of the nation state has likely peaked and society will get more global, more distributed and more decentralized once more.”

“Some cryptocurrency traders are speculating on what might be the next hot market bet: digital assets associated with visions of a decentralized Internet, referred to colloquially as Web 3.0 tokens. While bitcoin remains the top cryptocurrency by market value, the recent underperformance relative to other coins suggests investors are diving deeper into digital-asset markets to find investments with faster growth potential.

There’s a clear shift away from bitcoin into other sub-sectors, Web 3.0 being one of them.

On a year-to-date basis, tokens associated with decentralized Internet applications have seen an average 244% rise, trailing the NFT sub-sector’s 2,726% gain but beating bitcoin’s 37% appreciation. Some of the most prominent Web 3.0 coins, such as livepeer (LPT), helium (HNT), and bittorrent (BTT), are up at least 800% this year, despite a slump in cryptocurrency markets since April.

Seeing the Web 3.0 ecosystem grow exponentially since the beginning of the year and keep the majority of their gains after the capitulation even in May is very positive for the crypto market. Higher prices are directly linked to increased demand and expansion of services in each layer, and because of this, the ecosystem is able to continue its growth.

Web 3 is not quite as easy as DeFi is to understand, and it’s probably 12 months behind DeFi in terms of mainstream awareness. We expect this to change as consumer-facing applications based on NFTs, social tokens and creator monetization grow over the next 12 months.”

“While software has been eating the world for the last several decades, it has done a relatively mediocre job disrupting financial services. This has given a nice UX facelift but the underlying value chain and cost structure are still largely based on systems developed in the 1970s.

Chime still relies on Visa (started in 1958), Robinhood still relies on the DTCC (started in 1973), and Transferwise has not displaced ACH (started in 1972) or SWIFT (started in 1973).

DeFi applications are rearchitecting financial services from the ground up by replacing humans with machines, paperwork with code, and legal enforcement with cryptographic enforcement. As a result, they can operate orders of magnitude cheaper than their analog counterparts.

Specifically, there are significant cost savings from siloed transaction processing and banking systems being replaced by a global blockchain and its associated smart contracts and node infrastructure. In addition, applications benefit from instant interoperability upon deployment and a single log-in (a user’s public/private key pair).

In 2020, Deutsche Bank had $8 billion worth of infrastructure, real estate, and operations related costs, which was 64% of its overall operating expenses. This cost structure is expected for such a large and structurally important organization with decades of technical debt. In 2020, likely over 50% of Lending Club’s operating expenses were due to headcount and hardware, software, and maintenance costs.

While most of MakerDAO’s operating expenses were due to headcount, it is a tiny portion of overall net income, resulting in a profit margin of 99% vs. -60% for Lending Club. The caveat is that these are not “fully-loaded” costs for MakerDAO and will increase as additional costs from the Foundation (e.g. oracle operations, token-based compensation) are transferred to the DAO.

Over the next decade, DeFi protocols will be used as “financial microservices” for both legacy financial institutions and traditional fintech companies. These organizations will use DeFi as their backend infrastructure and will effectively become distribution channels for various customer personas, demographics, and geographies.

While DeFi protocols will likely layer on additional costs to enable them to further integrate with the fiat economy, it will still be orders of magnitude more efficient than the current market structure and business models in place today.”

See Also: Is PERP Undervalued?
See Also: Introducing the dYdX Foundation

7 August

“With two competing amendments and pressure from the White House and Treasury, crypto taxation is suddenly the crux of the massive infrastructure bill. After industry objections to a flawed initial proposal, there are now two competing amendments about how to scale back its demands. According to the Washington Post, the dispute is now holding up the entire $550 billion bill.

Things seemed to take a turn for the better on Wednesday when Senators Pat Toomey (R-Pa.), Cynthia Lummis (R-Wy.) and Ron Wyden (D-Ore.) filed an amendment refining and scaling back the rule’s definition of a broker, including carve-outs for node validators (miners), software developers and wallet developers. That amendment, though not perfect, received widespread praise from industry figures.

From that moment of hope, the situation has rapidly degraded.

A second proposed amendment to the tax was introduced last night by the provision’s original authors. The main difference is the Warner-Portman-Sinema amendment is narrower. It specifically protects proof-of-work miners and wallet developers, but not protocol developers [or validators!].

As Hemel observed, it seems very weird the U.S. government would write legislation favoring proof-of-work mining (e.g., bitcoin), given the widely acknowledged need to at least explore more environmentally friendly consensus algorithms. It certainly contradicts SEC Chair Gary Gensler’s recent commitment to be “technology neutral.”

Support for the still-basically broken Warner-Portman-Sinema version of the amendment is worryingly strong. The White House has issued a statement in support. Treasury Secretary Janet Yellen has reportedly been lobbying for the bad version, too. That would seem to back rumors that Treasury had been involved in crafting the original language, perhaps as a shortcut to imposing reporting requirements on which it had already been working.

Meanwhile, the generally high-pressure environment around the bill leaves little time for nuanced debate and education. A vote on the full bill is now expected on Saturday.

Figures including Senator Lummis are calling for public pressure to support her version of the provision, and that may be the most important factor in what happens next. So if you feel strongly about this, call your senator. This tool from Fight for the Future makes it easy.”

See Also: Janet Yellen Has Been Lobbying Against Wyden-Lummis-Toomey Crypto Amendment: Report
See Also: Senator Who Wrote Controversial Crypto Tax Rule Proposes Modest Revision
See Also: Crypto space weighs in on proposed amendments to US infrastructure deal

“Overall, call options have registered higher activity than puts, and the most popular options have been calls expiring March 2022 with strike prices of $50,000 and $40,000. The bullish mood is also evident from the negative one-week, one-, three- and six-month put-call skews, which measure the cost of puts relative to calls.

The data show investors are buying the narrative that the London hard fork implemented on Thursday will curb supply growth over time, yielding a price rally.

London hard fork is driving this activity, it’s mostly institutional.

Of particular note was large buying interest in tail strike calls such as a $40,000/$50,000 ETH bull call spreads that were traded with us. A total of 12,500x contracts were traded. We had to take a second look at the screen to make sure those were ETH strikes and not BTC!”

See Also: Ethereum Burns 36% of New Coin Issuance Over 2 Days
See Also: Bitcoin Surges Above $43K for First Time Since May

“Audius – a music streaming platform that runs on the Ethereum blockchain – hit a major milestone on Thursday, as five million people a month now use the platform to stream music, making it one of the largest consumer applications on any blockchain.

More than 100,000 artists use the platform, including deadmau5 and Skrillex.

Blockchain technology has been touted by many in the community as a way to make the monetization of art and music fairer in the digital age by giving creators more ownership of their work, as well as by clarifying the licensing and metadata issues that cause music to be taken down from online platforms. Audius’ rapid expansion is a sign that artists and fans alike are increasingly finding value in blockchain-based streaming.”

“The popular, global label, named for its German designer but based in Switzerland, will accept 15 cryptocurrencies, including bitcoin and ether. Crypto payments will be accepted both in Philipp Plein bricks-and-mortar retail stores and online. The brand has partnered with Coinify, a crypto payments platform owned by Voyager Digital.

I believe that cryptocurrencies are the future and my team and I have made a major commitment in time and resources, performing all necessary system modifications to adopt this new type of currency.”

See Also: New bill in Ukraine to allow payments in cryptocurrency, says official

“Chainlink, a leading provider of data feeds to blockchain-based smart contracts, has now fully added decentralized weather data to the Google Cloud. Google and Chainlink signed an agreement in 2019 that allowed Google to integrate Chainlink’s data.

The reason weather data is important is because it powers decentralized insurance around weather.”

This risk lies in banking customers moving funds from checking accounts to a CBDC account, which could lead to the exodus of as much as 30% of commercial banks’ funding base.

Relatively heavy handed caps on holdings would be needed to reduce the utility of a retail CBDC as a store of value.

JPMorgan strategist Josh Younger proposed a limit of $2,500.” [😂]

“In a statement, Binance CEO Changpeng “CZ” Zhao (Binance.US’ chairman) said he is ‘confident in Binance.US’s business and its commitment to serve its customers.’

Neither he nor Brooks elaborated on why they parted ways. No word on a successor.”

EIP1559 SmartCon Panel | DC Investor, SquishChaos, James Wang

6 August

After the highly-anticipated London upgrade introduced a token burn mechanism on Ethereum (ETH), the network is already burning 3.68 ETH ($10,295) every minute on average. Over $2 million worth of Ethereum tokens has been burned since the London upgrade was deployed this afternoon.

Currently, popular non-fungible token (NFT) marketplace OpenSea is the largest “ETH burner” as over 69 ETH ($193,124) tokens were destroyed thanks to transactions it facilitated since the upgrade. OpenSea is followed by two iterations of decentralized finance (DeFi) trading protocol Uniswap—Uniswap V2 (53.33 ETH) and Uniswap V3 (45.25).

So far, experts and community members alike are demonstrating positive sentiment toward the London upgrade.

The much anticipated EIP1559 network upgrade was a huge day for the Ethereum cryptocurrency ecosystem. Now, every transaction, NFT purchase or loan on the Ethereum network will result in ETH being burned out of existence, making ETH a deflationary and inflation-busting asset.”

See Also: Ethereum is becoming ultrasound money, ConsenSys founder says
See Also: Ethereum’s Hotly Anticipated ‘London’ Hard Fork Is Now Live (Video)
See Also: Burn Tracker: Ultrasound.Money
See Also: Burn Tracker: WatchTheBurn

“This is the most extensive upgrade to Ethereum in years.

I believe this is anther supporting factor in the ETH rally; however, in this case it does not appear to be the dominant factor.

The notion of ethereum becoming a deflationary cryptocurrency in the future is now tangible, and the effects on ethereum’s valuation could be profound.”

See Also: Ethererum Hard Fork Sends Price Jumping as Fees Start to Burn

After Gensler’s comments this week, it’s likely that the SEC will continue to approve bitcoin futures mutual fund applications and then approve ETFs based on bitcoin futures.

I think his comments are pretty clear that a pure spot bitcoin ETF isn’t coming soon and that futures products would potentially be considered.

Some industry participants have said that this could lead to a spate of applications that include bitcoin futures. On Thursday, Atlanta-based asset manager Invesco applied for an ETF that would include exposure to futures, the Grayscale Bitcoin Trust (GBTC) and Canadian bitcoin ETFs.

The benefit of prioritizing bitcoin futures over bitcoin spot ETFs is unclear. Gensler may believe that an investment vehicle based on federally regulated bitcoin futures may offer more regulatory cushion than one based on bitcoin from spot exchanges that are regulated on a state-by-state basis.

I don’t really buy that. Commodity futures have the potential to trade with a negative premium. I would argue that [a futures ETF is] not as safe for retail investors given that futures don’t always accurately track what’s happening in the spot market.”

See Also: Invesco files with SEC for Bitcoin ETF without direct BTC exposure
See Also: French Asset Manager Wins Approval to Launch Bitcoin ETF in EU
See Also: JPMorgan Launches In-House Bitcoin Fund for Private Bank Clients
See Also: CFTC Commissioner Says SEC Lacks Authority Over Commodities, Including ‘Crypto Assets’

“Chainlink, the market-leading provider of data feeds to blockchain-based smart contracts, is expanding its services to include decentralized off-chain computation – a job done by a network of node operators known as “Chainlink Keepers.”

Keepers is a kind of service layer to tell smart contracts how and when to behave. Keepers can do things like execute limit orders, liquidate under-collateralized loans or just remind a blockchain what time it is. The feature is now live on Ethereum and being used by Aave, Synthetix, PoolTogether, Barnbridge, Bancor and Alchemix.

Chainlink Labs is also standing up cross-blockchain bridges that come with an anti-fraud risk monitoring component.

See Also: Telecoms Giant Swisscom Launches Chainlink Node for DeFi Data

The department will work with Medici Land Governance (MLG) to develop a proof-of-concept for applying blockchain technology to the city’s land records.

The project is designed to increase transparency and reduce the chances of fraud. If successful, it will be followed by a pilot incorporating user testing and operational efficiency improvements.”

Venezuela launched a cryptocurrency known as the Petro in 2018. It’s now set to put a central bank digital currency into circulation on October 1. The CBDC will be accompanied by a monetary redenomination that eliminates six zeros from the currency.

According to the bank, it’s also working on a ‘new Financial Messaging Exchange System, a free and sovereign system, made in Venezuela and by Venezuelans, promoting the independence from foreign systems for national banking operations.’

Other countries are in the midst of trialling CBDCs, notably China and the Bahamas.”

5 August

Countdown to Ethereum London Upgrade

See Also: WATCH LIVE: Launch Party (Video)
See Also: EIP1559 Expert Panel Discussion (Video)

“Senators Ron Wyden (D-OR), Cynthia Lummis (R-MT), and Pat Toomey (R-PA) have introduced an amendment that would exempt Bitcoin miners and validators on other blockchain networks from a provision aimed at raising $28 billion in tax revenue to help pay for the bill.

The proposed amendment specifically excludes those responsible for ‘validating distributed ledger transactions,’ as well as wallet creators and protocol developers.

Industry advocacy groups Blockchain Association and Coin Center have released a joint statement with exchange Coinbase, FinTech firm Square, and Ribbit Capital in support of the amendment.”

“Sartori’s bill would establish that cryptocurrencies ‘are products of free sale by those entities and individuals who wish to commercialize them,’ and states that any natural or legal person ‘may receive and/or send funds in legal tender from and to their own bank accounts or those of licensed companies.’

Crypto assets will be recognized and accepted by law and applicable in any legal business. They will be considered valid means of payment. The use of all these instruments will be free and will not require prior consent, permits or licenses.

In the Senate, the National Party and its allies, which form a coalition named Coalición Multicolor, hold the majority, with 17 of the 30 seats.”

“SEC head Gary Gensler signaled Tuesday that the agency would aggressively regulate cryptocurrency markets using existing rules. That sounds scary, but markets have barely blinked – Bitcoin even ticked up slightly this morning. Responses from some industry leaders and analysts were accepting, and even positive; more than anything reflecting faith in Gensler’s deep knowledge of both the promise and technical underpinnings of blockchain and cryptocurrencies.

The takeaway for some was that Gensler would continue focusing on deceptive “shitcoins”, a likely net positive for the industry. One of the more surprising expressions of approval came from Bruce Fenton, founder of the strongly libertarian Satoshi Roundtable, who wrote this morning that ‘we need securities markets to work right and help capital formation & building businesses and jobs.’

It’s unclear, though, whether Gensler can shift the SEC’s slow-moving whack-a-mole approach on ICOs towards something more systematic and consistent.”

See Also: SEC Needs Clear Authority Over Crypto Platforms, Gensler Says
See Also: EY Exec.: Gensler’s Aspen Speech a ‘Bullish Signal’ for DeFi (Video)

“Genesis is seeing bitcoin’s role changing in the bear market. From late 2020 until the end of the second quarter, Genesis saw bitcoin’s dominance in market cap decline from over 70% to under 45%, while ether and prominent DeFi tokens doubled in value during that time.

As DeFi grows and attracts the attention of institutional investors, demand for ether is also growing. Hedge funds are increasingly turning to Genesis and other lenders to borrow ETH to deploy into DeFi protocols.

That trend was evident in the second quarter, when the firm had $25 billion in new originations, its largest amount ever in a quarter. The figure was up eightfold from a year earlier.”

“Kitco provides precious metals news and data used by millions to access the market prices of gold, silver, palladium and other metals. Its users will now gain access to the digital equivalent of Kitco’s depositories and vaults, which are audited to industry standards.

Kitco Gold (KGLD) will be fully backed by physical gold held in Kitco’s DirectReserve vaults and will track the real-time market value of the yellow metal. The stablecoin attempts to combine the safe-haven nature of owning gold with the flexibility and transparency of a digital asset.

Investors will have a competitive alternative to traditional gold products such as gold ETFs (exchange-traded funds), with the additional benefits of real-time trading and settlement enabled by blockchain technology.

Hong Kong’s First Digital Trust will provide regulatory compliance, know-your-customer and anti-money laundering procedures, funds processing and final authorization. Stablecoin issuer Stably will provide smart contract technology for minting and burning KGLD on the Ethereum network, and Tradewind Markets will assist in settlement.”

The exchange is to build a payment bridge with crypto-fiat gateway Alchemy Pay allowing Binance Pay users to send and receive payments in over 40 supported cryptocurrencies. Alchemy Pay provides a crypto-fiat payment gateway and operates in 18 countries with the goal of driving crypto adoption in merchant networks and financial institutions.

Merchants on Alchemy’s network include e-commerce giant Shopify, which provides online merchant services for 1.75 million retailers worldwide, as well as QFPay, Hong Kong’s Pricerite, Singapore’s Ce La Vi, Canadian footwear brand Aldo and multinational Arcadier SaaS.”

See Also: Chinese Crypto Traders Remain Confident in Binance Despite Regulatory Woes