The prominent U.S. cryptocurrency exchange, COIN, announced the successful launch of its Base blockchain – a “layer 2 network”. Layer 2 networks operate atop base ones, aiming to reduce congestion on the underlying network. Base, in this case, is constructed on the Ethereum blockchain. This innovation could potentially become a new revenue stream for Coinbase, not only from the operation of its own blockchain but also from potential applications crafted over it. This indeed marks the beginning of an epoch where public firms are running their unique distributed networks.
In related news, the U.S. Securities and Exchange Commission (SEC) made known its intention to file an “interlocutory appeal” regarding a judge’s judgment on Ripple’s programmatic exchanges of XRP. Last month, Ripple succeeded in convincing a federal judge that listing XRP on exchanges for anyone to purchase did not fall under securities transactions, although Ripple’s direct sales to institutional clients were. The new appeal, if accepted, could streamline the SEC and government’s litigation process by potentially eliminating the need for two trials.
Turning our sights to stablecoins, Rep. Maxine Waters expressed deep concerns about PayPal’s decision to create its own stablecoin without appropriate federal laws governing stablecoins. Waters highlighted PayPal’s vast customer base – at 435 million, surpassing the total online accounts of numerous major banks. The democrat underscored the importance of proper federal supervision and enforcement for the enforcement of customer safeguards and easing financial stability concerns, given PayPal’s vast size and reach.
Lastly, as the Consumer Price Index (CPI) release looms, futures activity indicates an abrupt halt to the Federal Reserve’s rate hikes. It appears a transition to the easing cycle is likely to commence early next year. However, an unexpected spike in the CPI might challenge these dovish Fed expectations and introduce volatility into the markets. So, crypto enthusiasts and traders alike – stay tuned and stay informed!
As always, these variety of developments underscore the fast-paced nature of the crypto world and the necessity for ongoing discussions and appropriate regulation. These scenarios also evince the ever-evolving relationship between traditional financial practices and novel technological advancements within the crypto sphere.
Source: Coindesk
