Senate Bill Would Create Legal Grace Period for Crypto Exchanges (The Block)
"Sen. Bill Hagerty (R-Tenn.) has introduced a bill to create a safe harbor for cryptocurrency exchanges that might otherwise face legal action for listing unregistered securities. According to text of the bill obtained by The Block, the legislation would allow for a two-year grace period from enforcement actions by the Securities and Exchange Commission against crypto exchanges that list tokens deemed by the commission to be unregistered securities. The grace period would begin when the commission makes a determination that a token is an unregistered security. Exchanges would also not be subject to legal action for failure to register as a broker-dealer or national securities exchange during the grace period."
Cardano's Founding Entity Emurgo to Invest Over $200M to Boost Ecosystem (CoinDesk)
"Cardano development lab Emurgo will invest over $200 million to support the ecosystem’s growth over the next three years, founder Ken Kodama told CoinDesk on the sidelines of the ongoing Token 2049 conference on Thursday. Emurgo is a founding entity of the Cardano protocol and develops products, services and applications meant to support the growth of the network. The funds, which are from Emurgo’s own capital, will be provided to projects directly building atop Cardano and to projects from other networks that build products that integrate Cardano’s network alongside their own."
Meta Opens NFT Sharing on Instagram and Facebook to All US Users (CoinDesk)
"Non-fungible tokens (NFT) have finally arrived on Instagram after parent company Meta announced Thursday the long-awaited arrival of its digital collectible feature to its millions of users in the U.S. NFT functionality on Instagram has been in testing since May, but on Thursday it became available to every user in the U.S. Users can connect wallets from Coinbase, Dapper Labs, MetaMask, Rainbow and Trust to Instagram. Instagram users can also crosspost their NFTs to their Facebook accounts, according to a blog post."
Gemini Wants to Boost GUSD Stablecoin Volume in MakerDAO (The Block)
"Gemini has submitted a proposal on the MakerDAO forum to boost the adoption of the Gemini dollar (GUSD) stablecoin in the latter’s ecosystem by paying a fixed yield on the GUSD balance in MakerDAO’s vaults. Gemini co-founder Tyler Winklevoss submitted the proposal on Thursday, detailing a three-month marketing incentive plan. The proposal seeks to grow the volume of the GUSD balance in the MakerDAO PSM, which is currently at about $24 million based on this Dune Analytics dashboard. PSM refers to the peg stability module that allows users to mint DAI by swapping any MakerDAO-accepted collateral. The PSM is also useful for maintaining DAI’s peg to the U.S. dollar."
Celsius Stablecoin Sale Plan Faces Objections From Securities Regulators (The Block)
"State securities regulators in Texas and Vermont are objecting to crypto lender Celsius's plan to sell its stablecoin holdings. The Texas State Securities Board, the Texas Department of Banking and the Vermont Department of Financial Regulation filed their objection today. Celsius wants to sell the stablecoin holdings in order to shore up its finances amid the ongoing bankruptcy proceedings."
SEC Takes Aim At Crypto Project and Its ‘Market Maker’ Over Alleged Manipulation (The Block)
"The Securities and Exchange Commission is taking aim at a crypto token for alleged market manipulation, as well as its distribution via bounty and airdrop. The SEC announced its case against Hydrogen and market maker Moonwalkers Trading as well as the CEOs of the two firms. The SEC alleges Hydrogen distributed its Hydro token through bounty programs and airdrops in 2018, while also selling to users directly through its trading platform in an effort to fund the Hydrogen project."
Jack Dorsey’s TBD Teams Up With Circle to Take US Dollar Stablecoin Savings and Remittances Global (CoinDesk)
"TBD, the bitcoin-focused subsidiary of Twitter co-founder Jack Dorsey’s Block (SQ), is teaming up with Circle Internet Finance, issuer of the USDC stablecoin, to bring cross-border dollar-linked stablecoin transfers and savings to investors globally. The firms unveiled their partnership Wednesday during Circle’s Converge22 conference in San Francisco."
SWIFT, Chainlink Labs Reveal Work on Cross-Chain Proof-Of-Concept (The Block)
"Interbank messaging service SWIFT has linked up with Chainlink Labs on a cross-chain interoperability proof-of-concept project. The proof-of-concept involves Chainlink's Cross-Chain Interoperability Protocol, which allows for token transfers across blockchains as well as the development of cross-chain applications. The tie-up was announced during an event in New York on Wednesday. During the panel, Chainlink co-founder and Sergey Nazarov and SWIFT strategy director Jonathan Ehrenfeld Solé framed the project with a focus on the difficulties in bridging the worlds of traditional and decentralized finance."
Circle Introduces Bridging Protocol Focused On USDC Payments (The Block)
"Crypto payments company and USDC issuer Circle is launching a cross-chain transfer protocol to support USDC interoperability. The product was announced during the company's inaugural crypto conference in San Francisco on Wednesday. It is expected to go live on Ethereum and Avalanche mainnet later this year. The new product is permissionless and allows for USDC to be sent natively across ecosystems, in an effort to improve liquidity and reduce fragmentation of bridged assets."
Crypto Fugitive Do Kwon’s Firm Accuses Korean Prosecutors of Overreach (WSJ)
"The firm behind failed cryptocurrencies TerraUSD and Luna accused South Korean prosecutors of overreaching their authority, two weeks after they issued a warrant for the arrest of its chief executive, Do Kwon. Terraform Labs Pte. Ltd. laid out Mr. Kwon’s defense in a statement sent to The Wall Street Journal on Wednesday. A spokesman for the Singapore-based firm said in the statement that Luna wasn’t legally a security, which would mean that it isn’t covered by South Korea’s capital-markets law."
Crypto Billionaire Bankman-Fried Eyeing Bid for Celsius Assets (Bloomberg)
"Sam Bankman-Fried, the crypto billionaire who has been bailing out distressed industry players in recent months, is considering bidding for the assets of bankrupt lender Celsius Network, according to a person familiar with his deal-making. FTX is also in the process of raising a $1 billion funding round, the same person said. That round hasn’t closed yet or been made public."
Celsius Network CEO Mashinsky Resigns (CoinDesk)
"Alex Mashinsky, the CEO of bankrupt crypto lender Celsius Network, has resigned, according to a press release. Chief Financial Officer Chris Ferraro has been appointed as chief restructuring officer and interim CEO with immediate effect. 'I elected to resign my post as CEO of Celsius Network today,' said Mashinsky. 'Nevertheless, I will continue to maintain my focus on working to help the community unite behind a plan that will provide the best outcome for all creditors – which is what I have been doing since the company filed for bankruptcy,' he added."
Robo-Advisor Betterment Partners With Crypto Exchange Gemini to Offer Customized Crypto Portfolios (CoinDesk)
"Investment robo-advisor Betterment has partnered with crypto exchange Gemini to launch a crypto investing portfolio service for its customers. The partnership will allow Betterment's 730,000 customers to access customized crypto investment plans based on their risk profiles and interests, starting next month. The curated crypto portfolios will be constructed from digital assets listed on Gemini, with the exchange serving as the custodian for the cryptocurrencies."
Robinhood Launches Self-Custody Wallet to 10,000 Waitlist Users (The Block)
"Robinhood's self-custody wallet has launched in beta to 10,000 iOS customers globally. Robinhood Wallet, a standalone app on the Apple Store, allows users to trade and swap crypto without network fees. The app is initially launching with Polygon support but will support multiple networks in the future, according to Robinhood."
FTX.US President Brett Harrison Is Stepping Down (The Block)
"Brett Harrison, the former high-speed trading executive turned crypto exchange chief, is stepping down as president of FTX.US. 'I’m stepping down as President of @FTX_Official,' Harrison tweeted Tuesday. 'Over the next few months I’ll be transferring my responsibilities and moving into an advisory role at the company.'"
California, New York and Other U.S. States Take Action Against Crypto Lender Nexo (The Block)
"A group of U.S. state regulators announced an array of legal actions against crypto lender Nexo on Monday. California's Department of Financial Protection and Innovation issued a cease and desist against crypto lender Nexo Monday over its crypto interest-bearing accounts. The cease-and-desist document alleges that Nexo's Earned Interest Product accounts are securities and ‘have been offered and sold without prior qualification, in violation of California Corporations Code section 25110.’"
Deribit Raises Funds From Existing Investors at $400 Million Valuation (The Block)
"Deribit, the largest bitcoin options exchange by market share, has raised funds from existing investors at a $400 million valuation, four sources with knowledge of the matter told The Block. The Panama-based exchange raised around $40 million in the deal, said two of the four sources. Its existing shareholders include QCP Capital, Akuna Capital and Dan Tapiero's 10T Holdings."
Grayscale Bitcoin Trust Discount Hits All-Time Low Amid Crypto Market Downturn (The Block)
"The Grayscale Bitcoin Trust (GBTC), which has been trading at a discount since the beginning of 2021, hit a record low last week. GBTC's discount fell to -35.26% — its lowest point ever, according to The Block's Data Dashboard. This means the market price of GBTC shares is over 35% lower than its net asset value or NAV."
FTX Wins Bid to Buy Crypto Lender Voyager Digital's Assets Out of Bankruptcy (CoinDesk)
"Exchange giant FTX won the bidding war to buy the assets of bankrupt Voyager Digital, Voyager said in a press release late Monday Eastern time. FTX was bidding against Wave Financial, a digital-asset investment firm. Voyager Token (VGX) rose after the announcement, gaining 3.76% as of 04:17 UTC, trading around 76 U.S. cents. Crypto lender Voyager Digital filed for bankruptcy in July. Industry observers had been increasing their scrutiny of Voyager’s business practices, particularly how the Canadian-listed firm said in marketing materials that investors' deposits were protected by Federal Deposit Insurance Corporation (FDIC) insurance."
New Cosmos White Paper Revamps Cosmos Hub, ATOM Token (CoinDesk)
"A new white paper released at the Cosmoverse conference in Medellín, Colombia, proposes major expansions to the utility of the Cosmos Hub – the blockchain that sits at the center of the Cosmos blockchain ecosystem. The paper also spells out a new vision for ATOM, the Cosmos Hub’s native token. Today, the Hub’s primary role is to serve as a template for building blockchains into the Cosmos ‘interchain’ – a web of individual blockchains that can easily share information and assets."
Interpol Issues Red Notice for Terra’s Do Kwon, South Korea Says (Bloomberg)
"South Korea said Interpol requested law enforcement worldwide to locate and arrest Terraform Labs co-founder Do Kwon, who faces charges related to the $60 billion wipeout of cryptocurrencies he created. Prosecutors in Seoul said Monday in a text message the international police organization has issued a Red Notice for Kwon, the latest inglorious chapter of a $2 trillion rout in digital assets that exposed hugely risky practices. Neither Interpol nor Kwon immediately replied to emails seeking comment."
California 'BitLicense' Bill Vetoed by Governor Gavin Newsom (CoinDesk)
"California Governor Gavin Newsom (D) vetoed a crypto licensing and regulation bill seen as a possible West Coast version of New York's "BitLicense" on Friday. Assembly Bill 2269, sponsored by Assemblymember Tim Grayson (D), would have created a licensing regime for anyone hoping to facilitate crypto transactions, likening it to how money transmissions are currently overseen by the Money Transmission Act. It was one of eight bills Newsom vetoed Friday, He signed 21 other bills, addressing issues ranging from crossing signals to cybersecurity to infrastructure concerns."
Disney Hiring Transaction Lawyer for ‘Aggressive’ NFT and Defi Plans (The Block)
"The Walt Disney Company is looking to hire a transaction lawyer to explore emerging technology opportunities, including NFTs, working at an 'accelerated and aggressive timeline,' according to a job posting on LinkedIn. The job ad added that the hire would 'partner with business teams as they plan new global emerging technology projects' across additional segments like the metaverse and decentralized finance."
CFO of Insolvent Crypto Lender Voyager Resigns (CoinDesk)
"The chief financial officer of crypto lender Voyager, which filed for bankruptcy in July, is leaving to pursue other opportunities, the company announced Friday. CFO Ashwin Prithipaul will leave Voyager after a transition period, with Voyager CEO Stephen Ehrlich handling Prithipaul’s duties for an interim period, the company said. According to Prithipaul’s LinkedIn profile, he had only been Voyager’s CFO since May. Prithipaul was previously the CFO at crypto exchange DriveDigital for nine months, and prior to that was the CFO at crypto investment firm Galaxy Digital."
U.S. Department of Defense Taps Intelligence Firm to Evaluate Crypto Threat to National Security (The Block)
"The U.S. Department of Defense hired a crypto intelligence firm to review the potential security threat of cryptocurrencies. DARPA, the Defense Advanced Research Projects Agency, has tasked Inca Digital with developing tools to understand how crypto markets work and help crack down on the illicit uses of digital assets that could pose a risk to national security. DARPA is an independent agency of the U.S. Department of Defense, which is headquartered at the Pentagon."