23 September

Congress’ attempt to make the CFTC the primary U.S. cryptocurrency regulator took a procedural step forward on Thursday, with a House of Representatives lawmaker introducing a bill supporting a parallel effort in the Senate.

The Senate legislation is a relatively narrow effort to install the CFTC as a leading agency to oversee digital assets trading and to exercise new authority over crypto spot markets. Now, that effort has been joined in the House.

It is essential that we have robust oversight and regulation so that we may provide strong customer protections.

It’s unclear whether the Senate legislation will have enough runway in this dwindling congressional session to get to an overall floor vote, and Maloney’s bill would similarly need approval from the House Agriculture Committee and the overall House before the bills can unite and face White House consideration. The advantage of having matching bills in both chambers is that it could streamline the process and get to the president’s desk more quickly if they win support in the Senate and House.

While lawmakers debate their approach, CFTC Chair Rostin Behnam is already preparing his agency to become a top crypto regulator.”

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Ethereum’s (ETH) annual token supply change has dropped from 3.79% to 0.20% post-merge.

Following the merge, the network has created 4,581.26 new Ethereum, marking a massive 95% issuance reduction compared to the deprecated PoW chain. Under the PoW mechanism, Ethereum would’ve issued nearly 88,736.70 Ethereum.

Daily issuance refers to the total amount of new tokens created to reward a network’s block miners or validators. Post-merge the network’s daily issuance has dropped to ~772 tokens per day compared to ~12,500 before the upgrade.

Ethereum will be considered deflationary if the number of tokens issued per day is less than the amount burned; [where burn-rate increases with network activity]. The ultrasound money meme is taking life.”

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Code repositories for the Ethereum-based mixer Tornado Cash were relisted on GitHub on Thursday. The move by GitHub comes as Ethereum developers have called for platforms that host the mixer service to not ban Tornado Cash code.

Within hours of [last month’s] OFAC announcement, GitHub, along with other platforms, removed Tornado Cash from their sites in order to comply with the new U.S. regulation.”

“Arbitrum, a so-called “rollup” for the Ethereum blockchain, has the strongest user and transaction momentum among the leading blockchains, Bernstein said in a research report Wednesday. It increased its lead in both speed and costs with its recent Nitro upgrade, and has also launched a Web3 and gaming chain called Nova.

Ethereum’s large user and developer base will continue to act as a feeder to rollups. [We] expect a new growth cycle to emerge in crypto as rollups drive mainstream application building on Ethereum.

Bernstein said it expects a host of trading, gaming and non-fungible-token (NFT) projects to be released on the blockchain. The broker also noted speculation of a potential Arbitrum token launch in the near term, which could be used to reward early users.”

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“With thousands of nonfungible tokens (NFTs) getting minted every single day, trying to find rare pieces can be a challenge for NFT collectors.

OpenSea announced the implementation of OpenRarity, a protocol that provides verifiable rarity calculations for NFTs within its platform. The protocol uses a transparent mathematical approach to calculating rarity. Rare NFTs will be awarded lower numbers like 1 or 2, while NFTs that have attributes similar to many other NFTs will have higher numbers.

The OpenRarity project was a collaborative effort between various NFT community entities, including Curio, icy.tools, OpenSea and Proof. The goal is to standardize the rarity methodology and provide consistent rarity rankings across all NFT platforms.”

“The exchange hired at least four Wall Street traders to form a group called Coinbase Risk Solutions to use the firm’s own cash to trade crypto, according to a report by the Wall Street Journal on Thursday.

Proprietary trading is when a firm engages in trading of stocks, bonds, currencies or commodities using its own money as opposed to that of its clients. Such activity is fraught with risk and the potential of conflicts of interest for the financial firm should its trades have an effect on the prices of those assets, which could in turn hurt its clients.

Coinbase executives said in December that it did not engage in proprietary trading when they appeared in Congress. However, with the price of digital assets encountering a downward trajectory throughout 2022, dragging Coinbase stock down in the process, Coinbase may have turned to trading on its platform as a means of creating new avenues for profit.

In response, Coinbase said the WSJ report had confused “client-driven activities” with proprietary trading.”