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Coinbase has launched a crypto-lending service targeting its institutional clients in the US. The initiative intends to fill the gap in institutional crypto-lending, and it was announced via an SEC filing. The service uses a Regulation D exemption, letting clients provide primarily crypto assets and receive over-collateralized loans. This new venture raises questions about avoiding regulatory uncertainties and potential financial risks.

COIN recently launched a crypto lending venture exclusively for US institutional clients, attempting to fill a gap left by setbacks from Genesis and BlockFi. With $57 million already contributed through Coinbase’s Prime Service, this program allows institutions to lend digital assets under standardized terms for a Regulation D exemption. The loan system sees collateral exceeding loan value in return, aiming to facilitate economic freedom and trust in the crypto world.

Coinbase has introduced a new crypto lending service aimed at institutional clients in the U.S, in a move to replace fallen players such as Genesis and BlockFi. The service allows clients to lend money in crypto assets with more collateral than the loan amount, adjusted daily. This initiative has already raised over $57 million. Unlike similarly failed services, the focus here is strictly on institutions, which provides a safety net against previous issues. However, critics express concerns about its potential to expose institutions to extra risks due to crypto volatility.

“The report reveals $700 million spent by lawyers and consultants following the collapse of several digital asset firms, renewing discussions around the complexity of digital asset regulations. With companies like FTX and Celsius amounting $326.8 million and $186.5 million in legal fees respectively, the lack of clear regulations is leading to increased costs and uncertainty, potentially hindering the adoption of cryptocurrencies by new investors.”

“In the volatile, uncertain world of cryptocurrency, it isn’t the mining companies or exchanges that are most profitable, but the lawyers, accountants, and consultants, whose wealth originates from the industry’s instability. Its high legal, accounting, and consultancy fees, reaching $700 million in 2022-23, result from complex, time-consuming bankruptcy cases.”

BlackRock’s recent registration of a Bitcoin ETF reignites interest and controversy about incorporating volatile cryptocurrency into traditional finance. Reflecting on Canada’s successful integration of Bitcoin ETFs, it’s clear that ETFs carry benefits for a broader audience, beyond hardcore crypto enthusiasts. The potential of ETF security against fraudulent activities and cyber threats is significant. The surge in Bitcoin investments is tied to user-friendly mobile exchanges, suggesting investors value Bitcoin-backed financial products in the mainstream finance system.

Mark Cuban and former SEC official, John Reed Stark, recently disagreed on social media over the cause of the FTX’s downfall. Cuban believes that if the US SEC had adopted regulations similar to Japan’s, US customers wouldn’t have suffered. However, Stark contends blaming SEC is unreasonable, insisting that even with robust compliance, crypto businesses like FTX wouldn’t comply.

“Fidelity Investments makes a second attempt at a spot BTC Trust known as Wise Origin, amidst seven similar fund applications this year. Despite potential risks, they argue for the need of a Spot Bitcoin exchange-traded product, which could protect U.S. investor assets from riskier alternatives. The blockchain future, despite regulatory skepticism, is seen as inevitable.”

A Singapore court will soon decide the fate of crypto lender Hodlnaut, which faces potential dissolution following massive losses of $317 million. The company’s downfall highlights growing concern over the stability and safety of the crypto lending industry and emphasizes the need for robust regulation and oversight.

Tether Holdings deactivates 29 major cryptocurrency firm accounts, including MoonPay, BlockFi, CMS Holdings, and Galois Capital, without disclosing explicit reasons. The NYAG investigation reveals this, sparking concerns about transparency and communication in the growing crypto space.

Tether reportedly deactivated 29 accounts belonging to top cryptocurrency market players two years ago, including MoonPay, BlockFi, and Galois Capital. Despite passing compliance checks, reasons for the deactivations remain unclear, raising questions about stablecoin issuers’ centralization levels.

The Texas State Securities Board issued an emergency cease-and-desist order against crypto lender Abra for alleged securities fraud, deception, and insolvency since March 31, 2023. This highlights the importance of balancing innovation in crypto lending with prudent regulatory oversight to protect investors.

As the FASB’s comment period for proposed crypto asset reporting changes nears its end, companies like Kraken, Ernst and Young, and BlockFi seek further guidance on stablecoins, wrapped tokens, and NFTs, while Grayscale Investments calls for accurate reporting of crypto assets.