Day: July 27, 2023

“The Department of Justice (DOJ) has dropped a campaign finance charge against FTX founder Sam Bankman-Fried. This followed a consultation with The Bahamas, as extradition under U.S treaty required their explicit consent. Bankman-Fried, embroiled in allegations of unlawful political contributions, allegedly used funds from Alameda Research to manipulate politics.”

“The Santos incident reveals a complex intertwining of political intrigue, crypto manipulation, and scams, while figures like Robert F. Kennedy Jr. demonstrate a supportive stance towards cryptocurrency. This highlights the intersection of politics, regulation, and digital finance in unanticipated ways.”

“This episode highlights the long-standing practice of banks denying services based on arbitrary reasoning, an issue familiar to the crypto community. Crypto advocates push for innovations that remove human bias from banking decisions, seeing cryptocurrencies as the solution to financial censorship. Yet, as numerous individuals are debanked annually, the question of institutional accountability lingers.”

The US state of Wyoming plans to hire an executive director for a groundbreaking stablecoin project, a commission introduced after the Wyoming Stable Token Act was recently approved. The commission’s authority allows it to issue a US dollar-pegged stablecoin in Wyoming, redeemable for dollars in the state’s bank account. With desired qualifications including blockchain expertise and understanding of Wyoming’s legislative operations, the Commission aims to issue a stablecoin by end of 2023.

“The Financial Innovation Technology for the 21st Century Act, aimed at establishing a federal regulatory framework for cryptocurrency, has been forwarded to the full House of Representatives. This addresses the current industry confusion caused by a lack of explicit regulations, by providing clarified guidelines for crypto ventures.”

“The ‘Pro Crypto Bill’ recently advanced from the US House Agriculture Committee, aiming to set a comprehensive regulatory structure for digital assets. While promising for the regulated crypto environment, critics express concerns over its lack of third-party auditing provision and stagnant CFTC funding.”

According to former Federal Reserve Board analyst, Brendan Malone, stablecoins are less risky than bank deposits and are not akin to money market funds. He argues that stablecoins, backed by fiat currencies and typically short-dated Treasuries, do not pose similar risks as banks due to the absence of mismatches between short-term liabilities and long-term assets. Regulating stablecoins similarly to traditional financial entities could, however, limit competition and increase market dominance.

“The Clarity for Payment Stablecoins Act (H.R. 4766) negotiations spark political debate. While some view this potential legislation as crucial for cryptocurrency regulation, others express concern about rushed decisions, lack of oversight, and regulatory dissonance. Rep. Warren Davidson’s ‘Keep Your Coins Act’ also enters the conversation, aiming to protect individual’s self-custodied crypto wallets.”

“Cryptocurrency value derives from collective human perception, Judge Philip Jeyaretnam stated in a Singapore High Court verdict that equated digital currencies with fiat money. His ruling, recognizing crypto assets as property despite their incorporeal nature, could initiate a sea change in cryptocurrencies’ legal status.”

“The debate in the House over stablecoins legislation reveals the significance of addressing regulatory ambiguity in the digital asset sector. Despite disagreements, legislators acknowledge the importance of stablecoins, and the outcome of this issue will inevitably influence its future regulation.”

The EOS Network Foundation gears up for a lawsuit against Block.one for failing to invest $1 billion from its 2018 $4.1 billion raise, causing complications for the EOS community. Despite the risks of litigation, this prompts a broader conversation about compensatory justice in cryptocurrency.