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GLOBAL LEADERS CHIME IN
It’s not all good…what do Christine Lagards, Ben Bernanke, and Bill Ackman have in common? Last week they decried the inherent ponzinomics prevalent across crypto, while acknowledging the staying power of digital assets in global markets. There are no higher order talking heads left yet to bend their minds around digital assets.
Crypto assets are ‘worth nothing,’ says ECB’s Christine Lagarde (Politico)
Billionaire Bill Ackman Calls Terra a ‘Crypto Version of a Pyramid Scheme’ (Decrypt)
Bitcoin's Underlying Value 'Is to Do Ransomware': Former Fed Chair Bernanke (Decrypt)
US Treasury Official Warns Crypto Industry to Proactively Sanction 'Problematic' Wallets (CoinDesk)
US Agencies Warn of Attempts by North Koreans to Get IT Jobs While Concealing Nationality (CoinDesk)
Covert Chinese Bitcoin Miners Still Account For 21% of Network Hashrate: Report (Decrypt)
The Math Prodigy Whose Hack Upended DeFi Won’t Give Back His Millions (Bloomberg)
KEY HIRES
Big week for hiring across the space – Binance.US hired former DOJ official, Polymarket adds former CFTC head to advisory board, and analytics firm TRM hired formed DOJ task cyber task force lead. This tells us that talent at the highest echelons of government, on both sides of the aisle see the opportunity in near term regulatory turbulence and the long term saying power of the space.
Binance US hires former DOJ official as head of legal (The Block)
Polymarket appoints former CFTC chief Giancarlo as chair of advisory board (The Block)
Crypto Analytics Firm TRM Hires Ex-DOJ Cyber-Digital Task Force Chair (WSJ)
LEGAL - SENTENCINGS
Marquee sentences doled out this week to Arthur Hayes, who avoids jail time in the BitMEX matter, and landmark enforcements from the CFTC and separately the US Department of Justice for fraud and sanctions evasion, respectively. Federal judges are now delivering more insightful legal opinions and nuanced sentencings in signal that they are getting smart on all things crypto.
BitMEX founder Arthur Hayes avoids jail time, sentenced to six months of home detention (The Block)
CFTC charges two men with $44 million cryptocurrency ‘Ponzi scheme’ (The Block)
Justice Department Charges Defendant With Sending $10M in Bitcoin to Sanctioned Country (Decrypt)
SEC Chair Gensler Threatens Action Against Unregistered Crypto Exchanges (Decrypt)
EMERGING MARKETS
Healthy chatter this week across Europe and emerging markets as various leaders call for sharper securities regulations, broader rulemaking, and education. Of note is patience in Panama and the UK, in the face of cascading support to embrace crypto at the sovereign level.
Panama's president not ready to endorse crypto regulation bill (The Block)
Nigeria’s SEC Affirms All Digital Assets Are Securities in New Rulebook (CoinDesk)
Portugal Makes U-Turn on Cryptocurrency Tax (CoinDesk)
German Regulator Calls for New DeFi Laws (CoinDesk)
Indian Central Bank Says Cryptos Could Lead to ‘Dollarization’ of Economy: Report (CoinDesk)
Indian government's ‘blockchain not crypto’ stance highlights lack of understanding (CoinTelegraph)
Russia will inevitably legalize crypto payments, says trade minister (CoinTelegraph)
Dutch regulator says crypto not yet suitable as means of payment or investment (CoinTelegraph)
‘DeFi in Europe has no lobby,’ says co-founder of Unstoppable Finance (CoinTelegraph)
One of Australia’s largest banks pauses in-app crypto pilot amid market downturn: Guardian (The Block)
UK financial regulator advises against rush to add crypto markets, Financial Times says (The Block)
LAWSUITS
BIG CASE THIS WEEK ruling against the SEC’s agency adjudication process as a federal judge rules in favor of a hedge fund manager’s 7th Amendment right to a jury trial. Another class action suit (Safemoon) and a contractual matter (Aptos) over an early stage investment highlight private funds and investors going to court to shore up reckless founder behavior in the space.
A federal appeals court says the S.E.C.’s use of an in-house judge violates defendants’ rights (NY Times)...and what this guy tweeted.
DeFi Altcoin Rebounds by More Than 92% From Last Week’s Crypto Crash Despite Class-Action Lawsuit (Daily Hodl)
Aptos CEO faces billion dollar lawsuit by Glazer family member over equity (The Block)
GREAT STATE OF NEW YORK
Is NY still the barometer for a state crypto charter or mining legislation? Honestly, can’t tell, but my gut says foolishly hopeful (or hopelessly romantic?) to think BitLicense process breathes fresh air and state legislation turns around to embrace mining.
DFS chief Adrienne Harris explains how — and why — New York is speeding up the BitLicense pipeline (The Block)
NY Bitcoin Miners Start to Give Up on State Amid Regulatory Uncertainty (CoinDesk)
CBDCs
CBDCs continue to be seriously considered by western powers, but after statements this week, not on serious timeliness. ECB digital Euro by 2026 and continued academic analysis out of the US?!
House Republicans seek more analysis on a possible US CBDC in letter to the Fed (The Block)
Digital euro could come as soon as 2026 — ECB official (CoinTelegraph)
Miami’s mayor backed MiamiCoin crypto—then its price dropped 95% (Quartz)
DO KWON
Is Do Kwon the Elizabeth Holmes of crypto? Overpromising and under delivering, with mal intent? When is enough, enough?
Do Kwon Is the Elizabeth Holmes of Crypto (CoinDesk)
Do Kwon amends Terra 2.0 proposal during the vote on it (The Block)
Terraform Labs’ legal team resigns after UST collapse (The Block)
UK Regulator Scrutinizes Terra Fallout (Bloomberg)
TERRA
Terra fallout lit fires this week after the SEC, CFTC, G7, and South Korean regulators awoke promising investigations and pushes to add more resources to monitor and enforce. We keep hearing this, but unclear what and when.
Congress May 'Work More Quickly' on Stablecoin Regulations Amid UST Collapse: SEC Commissioner (Decrypt)
G7 Urges Crypto Regulations in Light of Terra Collapse: Report (Decrypt)
CFTC Expected to Add More Resources to Better Monitor Crypto Markets (Decrypt)
Gensler tells Congress that the SEC is 'really out-personed' on crypto (The Block)
South Korea revives 'Grim Reaper' financial crimes unit to investigate Terra's collapse (The Block)
South Korean Law Firm to File Suit Against Terraform Labs CEO, Co-Founder (Decrypt)
CIRCLE
Circle is the big winner in the stablecoin debate. And it likely won long ago. I suspect there will be a continued flight to USDC as store of value assets fluctuate and holders risk off, and as savvy investors and regulators line up the next set of stablecoins to attack and break peg. Circle, now backed by BlockRock and Fidelity, and openly working with regulators these last few years, most appropriately fits into a bank charter framework and will likely benefit from broad capital flows this summer as it becomes the only true secure asset backed stablecoin.
Stablecoin Provider Circle Hits $9B Valuation After New SPAC Deal (Decrypt)
The Big 'Winner' From the Crypto Crash? USDC Stablecoin (Decrypt)
Paxos, State Street, and Credit Suisse Trial Permissioned Blockchain for Same-Day Trade Settlement (Decrypt)
New Tether Report Shows 17% Reduction in Commercial Paper (Decrypt)
Institutions Poured $300M Into Bitcoin Funds During Terra Meltdown: Report (Decrypt)
REGULATORY FRAMEWORKS
Consumer protection has long been the mandate of financial regulators, right next to countering the financing of terrorism and anti-money laundering, and tax collection. A lot of progress this week as policy agenda signals regarding clarity and next steps came down from the Biden administration, regulators, and a few crypto protocols made strides in better serving the everyday user.
Commerce Dept. Asks for Public Comments on Framework for US Crypto Competitiveness (CoinDesk)
Crypto Might Have an Insider Trading Problem (WSJ)
Coinbase Launches Global 'Think Tank' for Crypto (Decrypt)
Biden Administration Wants Crypto Exchanges to Separate Customer and Corporate Funds (CoinDesk)
ConsenSys, LivePerson Roll Out VillageDAO to Solve Crypto's Customer Service Problem (Decrypt)
US Lawmaker Introduces Bill To Protect Bitcoin (BTC) 401(k) Investments (Daily Hodl)
FTX US Launches Stock Trading, Accounts Can Be Funded With Stablecoins (Decrypt)
Federal, New York Officials Look for Public Input on Crypto Regulation (WSJ)
CFTC Chief Says Crypto Assets Will Be Divided Into Two Categories in Upcoming Regulation (Daily Hodl)
Fed Vice Chair Pick and Ex-Ripple Adviser Tells Senators Crypto Needs Regulation (CoinDesk)
How to Donate Cryptocurrency to Charities (WSJ)
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