Tether Is Lending Its Stablecoins Again (WSJ)
Tether Holdings resumed lending out its own stablecoins to customers, less than a year after it said it would wind down the practice. The cryptocurrency issuer in its latest quarterly financial update said its assets included $5.5 billion of loans as of June 30, up from $5.3 billion a quarter earlier. A company spokeswoman confirmed that Tether made new loans. The company, which is incorporated in the British Virgin Islands, calls them secured loans and discloses little about the borrowers or the collateral accepted. The loans are issued and denominated in the company’s tether tokens.
Binance Participated in MiCA Discussion With European Banking Authority (The Block)
Crypto exchange giant Binance outlined a Thursday consultation with the European Banking Authority regarding stablecoin-specific regulations in the European Union's Markets in Crypto Assets (MiCA) legislation. Binance said that some of the conversation centered on whether stablecoin operators can get a grace period when applying for Electric Money Institution (EMI) licenses in compliance with MiCA, which requires stablecoin issuers obtain an EMI license in the EU or else have their asset delisted from EU exchanges.
Crypto Exchange Binance, CEO Zhao Ask Court to Dismiss SEC Suit (Bloomberg)
Binance Holdings Ltd. and Chief Executive Officer Changpeng ‘CZ’ Zhao filed court papers Thursday seeking to have a lawsuit against them by the US Securities and Exchange Commission dismissed. Binance and Zhao, in a 60-page petition, claimed that the agency overstepped its authority in suing them. The SEC alleged a range of allegations, including mishandling customer funds, misleading investors and regulators, and breaking securities rules. In calling to dismiss the lawsuit, Binance and Zhao accused the regulator of attempting to impose penalties retroactively, before it provided any public guidance regarding cryptocurrencies."
Tim Draper Launches Crypto Accelerator (Decrypt)
Seeking to defy the odds of a prolonged bear market, billionaire investor Tim Draper has unveiled a new crypto-centric venture studio, Draper Goren Blockchain (DGB). It comes with a clear mission: to accelerate "DeFi innovations," layer-2 network scaling solutions, and consumer apps including gaming and social experiences.
Ethereum's Shanghai Upgrade Has Failed to Boost Network Activity, JPMorgan Says (CoinDesk)
Ethereum's Shanghai upgrade, implemented in April, does not appear to have increased activity on the world's largest smart contract blockchain as many had hoped for, JPMorgan (JPM) said in a research report Thursday. “While the shift from proof-of-work (PoW) to proof-of-stake (PoS) that resulted from the Merge upgrade meant that the energy consumption for the Ethereum network collapsed by more than 99%, the ether supply is shrinking and staking rose sharply, the increase in network activity has been rather disappointing,” analysts led by Nikolaos Panigirtzoglou wrote.
Optimism Foundation Sells $157M OP Tokens, Citing 'Treasury Management' (CoinDesk)
The foundation behind layer 2 blockchain Optimism has sold 116 million OP tokens ($157 million) to seven separate buyers, according to an announcement on the Optimism governance website. The token sale was described as a "private" and "planned" event with the tokens originating from an unallocated portion of the OP Token treasury. Optimism's treasury remains at around $1.25 billion, all of which is made up of its own token, DefiLlama data shows.
House Committee Advances Anti-CBDC Bill Despite Democratic Pushback (The Block)
Republicans in the House Financial Services Committee advanced a bill that would block the Federal Reserve from issuing a central bank digital currency directly to individuals. Rep. Tom Emmer, R-Minn, introduced his "CBDC Anti-Surveillance State Act," HR 5403, last week, which would prohibit the central bank from issuing a CBDC directly to individuals and block the Fed from indirectly issuing one through an intermediary. His bill was one of many bills being marked up on Wednesday.
Grayscale Investments Files for New Ether Futures ETF (The Block)
Grayscale Investments, the crypto asset manager, filed for a new exchange-traded fund that tracks ether futures on Tuesday, according to a Wall Street Journal report. The news comes just a few weeks after Grayscale scored a win over the U.S. Securities and Exchange Commission in its ongoing application for a spot bitcoin ETF, with a judge ruling that regulator must re-review the proposal.
South Koreans Hold $99B of Digital Assets Overseas: Tax Service (CoinDesk)
South Koreans hold a total of 131 trillion won ($99 billion) worth of virtual assets outside the country, the National Tax Service said in documents posted Wednesday. That's 70% of all reported overseas assets, the tax service said. A total of 1,432 individuals and corporations reported that they held crypto accounts overseas. The country has a population of just under 52 million, according to World Bank data.
Payment App Venmo to Offer PayPal USD Stablecoin (The Block)
The peer-to-peer payment platform Venmo will soon offer the stablecoin PayPal USD, or PYUSD. PayPal's ERC-20 stablecoin will be available for purchase in the "coming weeks," PayPal notes in a release. Users will be able to buy and send PYUSD to others on PayPal, Venmo or compatible external wallets.
U.S. SEC’s Crypto Enforcement Chief Warns More Charges Coming to Exchanges, DeFi (CoinDesk)
The U.S. Securities and Exchange Commission (SEC) isn’t done chasing down crypto exchanges and decentralized finance (DeFi) projects it sees as violating securities laws in the same vein as Coinbase Inc. (COIN) and Binance, said David Hirsch, head of the agency’s Crypto Assets and Cyber Unit. His enforcement office, which has been litigating at a very unusual pace for the SEC, is aware of and investigating other firms involved in much the same activity seen at those two major platforms and that the industry’s compliance breeches “hold true well beyond any two entities,” Hirsch said Tuesday at the Securities Enforcement Forum Central in Chicago.
SEC Fails to Win Immediate Inspection of Binance US Software (Bloomberg)
The US Securities and Exchange Commission failed on Monday to convince a federal magistrate judge to immediately let officials delve into Binance.US’s software, a setback for the Wall Street regulator in its case against the crypto-trading platform. The SEC says that it has been struggling to get information from Binance.US since it sued the American exchange, along with its international affiliate Binance Holdings Ltd. and its Chief Executive Officer Changpeng Zhao in June.
FTX Bankruptcy Estate Sues Sam Bankman-Fried’s Parents, Joseph and Barbara, to Claw Back ‘Misappropriated Funds' (CoinDesk)
Bankrupt crypto exchange FTX has sued founder and former CEO Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, to “recover millions of dollars in fraudulently transferred and misappropriated funds,” the company said in a Monday court filing. The filing, redacted in parts, asks the court to award the FTX estate damages, the return of any property given or payment made to the parents by FTX in the past, and punitive damages resulting from “conscious, willful, wanton, and malicious conduct.”
Nomura’s Crypto Arm Launches ‘Long-Only’ Bitcoin Exposure Fund (The Block)
Laser Digital, the crypto unit of Japanese banking giant Nomura, has launched its asset management business with a bitcoin fund. The Bitcoin Adoption Fund provides "long-only" exposure to bitcoin for institutional investors, Laser Digital said Tuesday. The fund is part of Laser Digital Funds SPC — which is registered as a mutual fund with the Cayman Islands Regulatory Authority.
Justin Sun Pitches Crypto Project That Casts a Shadow Over Huobi (Bloomberg)
Back in June, Justin Sun had a pitch for yield-hungry crypto investors: a new project that promised 5% returns tied to low-risk securities like government bonds. By sheer numbers alone, it appears to be a big hit. In just 2 1/2 months, investments in the product — known as stUSDT — grew to $1.8 billion, a massive amount compared with similar decentralized-finance platforms.
New York Regulator to Require Higher Standards for Coin Listings and Delistings (WSJ)
New York’s financial regulator wants cryptocurrency companies regulated in the state to be more transparent about how they list and delist crypto coins. The New York State Department of Financial Services, in proposed guidance published Monday, spells out its expectations for how crypto firms evaluate a coin offering before adoption, based on a prior version of the framework. The regulator also describes its expectations of the steps and criteria a crypto firm must consider before delisting a coin.
Citi Expands Digital Asset Services With Bond Custody, Tokenized Deposits (The Block)
Citigroup is expanding its digital asset services with a new custodian partnership and a pilot program for tokenized deposits. The global investment bank became the first digital custodian for the BondbloX Bond Exchange, it said in a statement on Sept. 15. BBX is regulated by the Monetary Authority of Singapore and is described as the world’s first fractional bond exchange that uses atomic settlement and distributed ledger technology.
Blockchain Capital Launches Two New Funds for a Total of $580M (TechCrunch)
The crypto bear market may be ongoing, but Blockchain Capital is still going big. It closed two new funds for a total of $580 million, the firm’s general partner Spencer Bogart told TechCrunch. The two venture funds, its sixth early-stage fund and its first “opportunity fund,” are allocated roughly two-thirds and one-third of the $580 million, respectively, Bogart said. The firm’s last investment vehicle, its fifth early-stage fund, was $300 million in June 2021.
Crypto Startup Led by Former Andreessen Executives Raises Cash (Bloomberg)
An Andreessen Horowitz-backed startup bent on bringing blockchain technology to the corporate world has managed to raise new funds, despite the bear market in digital assets. Bastion, co-founded by two former executives with Andreessen’s crypto division, came out of stealth mode Monday with a seeded funding round worth $25 million led by a16z crypto. Investors also include Nomura Group’s Laser Digital Ventures, Robot Ventures and crypto influencer Packy McCormick’s Not Boring Capital, among others.
Standard Chartered-Backed Zodia Custody to Offer Yield on Crypto Holdings (The Block)
Zodia Custody, the crypto unit of Standard Chartered, will begin offering institutional clients yield on their crypto holdings for the first time. The firm has partnered with OpenEden to connect crypto assets held in custody with real-world yield opportunities, according to an announcement today. The product will also give institutions exposure to staking services.
SEC Says It’s Not Getting What It Needs From Binance US (The Block)
The Securities and Exchange Commission says Binance.US is not cooperating with an agreement about the process for its investigation into the crypto exchange, having so far produced just 220 documents — a far cry from what the regulator says is needed. The agency has also asked for certain information regarding customer assets, but said BAM, the company behind Binance.US, has so far not obliged.
Mark Cuban Loses Nearly $1M to Crypto Scam (CoinDesk)
Dallas Mavericks owner and billionaire technology investor Mark Cuban lost some $870,000 worth of tokens over the weekend after likely clicking on a phishing link after “months of inactivity.” Phishing attacks trick users into divulging sensitive data, downloading malware, and exposing their private information. Such attacks are extremely common in the crypto industry, as users may fail to check the source of requests on a crypto wallet, or unknowingly download a fake application that mimics the original – one that exists only to steal holdings.
Vitalik Buterin Invited to Visit Hong Kong After Raising Concerns Over Its Crypto-Friendliness (The Block)
Hong Kong Legislative Council member Johnny Ng responded to comments from Ethereum co-founder Vitalik Buterin raising concerns about the stability of the crypto climate in Hong Kong, inviting him to visit the city. “I respect his right to speak, but at the same time, I think he does not understand the situation in Hong Kong.” Ng wrote on X (formerly Twitter) today. “Hong Kong's policies and laws will not change overnight. All relevant strategies and regulations have gone through major social consensus and complete procedures. Therefore, I can tell Mr. Buterin that Hong Kong's policies are very stable.”
DOJ Slams Sam Bankman-Fried’s ‘Intrusive’ Proposed Jury Questions (CoinDesk)
The U.S. Department of Justice thinks FTX founder Sam Bankman-Fried’s proposed jury questions are “unnecessarily intrusive” and may be intended to support his defense. Bankman-Fried and the DOJ both proposed voir dire questions earlier this week, ranging from standard queries about whether potential jurors were familiar with the case to more specific questions about whether they knew people with ADHD. These questions will help the prosecutor and defense determine a fair and impartial jury.
EigenLabs Gears up to Launch Upcoming Data Availability Solution (The Block)
EigenLabs, the developer behind the EigenLayer re-staking protocol, plans to unveil EigenDA, a solution designed to reduce data storage costs for Layer 2 Ethereum rollups. It is expected to go live by the end of 2023. The solution has piqued the interest of projects like Celo, Mantle, Fluent, Offshore, and Layer N, which are looking into integrating this mechanism into their Layer 2 setups, according to EigenLabs.