Bail payments in New York can now be made using stablecoins
New York is considering accepting dollar-pegged stablecoins as bail payments, according to a new bill introduced by state legislator Latrice Walker. The proposal aims to add fiat-backed stablecoins to the list of pre-existing methods of paying bail bonds, which includes cash, insurance bonds and credit cards. The move comes after New York Attorney General Letticia James proposed a new regulation that would give the state more power over cryptocurrency exchanges.
Texas passes Bill allowing use of flare gas emissions to mine Bitcoin
The recently passed Texas House Bill 591 allows Bitcoin (COIN:BTCUSD) miners to use flare gas emissions to reduce the carbon impact of their operations. This change is expected to lead to a 63% reduction in carbon emissions, as emissions from flare residues that would otherwise be vented or burned into the atmosphere will be recycled. The bill ratifies tax exemptions for the flare recycling process, which reduces the cost of using this form of energy. The Texas Blockchain Council and the World Economic Forum have approved the recycling of flare emissions for use in cryptocurrency mining. The state of Texas has taken a conflicted stance on Bitcoin mining, with Senate Bill 1752 seeking to stifle mining operations in the state.
BIS explores risks and opportunities of offline payments with CBDCs
The Bank for International Settlements (BIS) is investigating possibilities for offline payments using a central bank digital currency, or CBDC. The BIS Innovation Hub Nordic Center recently published a guide in collaboration with technical consultancy Consult Hyperion, exploring how CBDCs could be used in offline payments. The handbook, called “Project Polaris”, highlights new potential risks posed by offline payments with CBDCs, including counterfeiting or privacy issues. The document also mentions the importance of interoperability and risk management systems for offline payments, emphasizing the need for collaboration between the public and private sectors. Countries like Australia, India and Russia are working on offline CBDC payment technology, with plans for pilot launches in the coming months and years. The BIS guide is an important step towards developing effective and secure solutions for offline payments with CBDCs.
China launches blockchain innovation center
China inaugurates National Blockchain Technology Innovation Center in Beijing to promote technology development in China, accelerate the construction of blockchain computing power clusters, and connect the isolated application chains that have been developed in the country. The center will collaborate with local universities, think tanks and blockchain companies, with the aim of building a nationwide network of blockchain computing power and training more than 500,000 experts in blockchain and distributed ledger technology. China is looking to advance and integrate blockchain technology, excluding cryptocurrency, which is seen as a threat to the country’s financial ecosystem.
Franklin Templeton to list Blockchain Fund targeting institutional investors
Franklin Templeton filed a document with the US Securities and Exchange Commission (SEC) on Wednesday planning to add a second blockchain fund to its crypto market offerings. The new fund is a private equity fund and will have a minimum investment of US$100,000. Franklin Templeton has an ongoing interest in blockchain investments and digital assets, and has also been advocating for the use of blockchain technology to process transactions in traditional financial instruments.
Circle adjusts reserve mix to avoid US debt default and favor short-dated bonds
Circle Internet Financial Ltd has adjusted its reserves to support the stablecoin USD Coin (COIN:USDCUSD), now favoring short-term US Treasuries to avoid possible risks of a US debt default. The company’s CEO, Jeremy Allaire, said that Circle no longer holds Treasuries maturing after early June in order to avoid exposure to a potential breach in the US government’s ability to pay its debts. The Circle Reserve Fund is managed by BlackRock Inc. and your current holdings expire through May 31. The vulnerability of Circle’s reserves to external shocks was highlighted in March, when the USD Coin temporarily lost its 1-to-1 peg against the dollar after $3.3 billion of reserves used to back the stablecoin were held in the collapse of the Silicon Valley Bank. Tether Holdings Ltd, operator of the largest stablecoin, reported on Wednesday that it increased its holdings of US Treasuries to $53 billion. CEO Jeremy Allaire told Politico, “We don’t want to expose ourselves to a potential violation of the US government’s ability to pay its debts.”
Justin Sun will start trading memecoins and donate profits to charity
Justin Sun announced via Twitter that he will start trading meme coins and other promising projects using his public address. He will donate the profits from such deals to charity and cover any potential losses himself. Sun cautioned that his actions should not be considered financial advice and advised investors to conduct their own research before investing. “I am simply trading coins for fun. Always do your own research before investing.” Additionally, the Tron and BitTorrent networks offered a $1 million support fund for meme coin developers. The trading volume of meme coins has surged, reaching over $2.3 billion last week.
Bittrex approved $7M Bitcoin bankruptcy loan
Seattle-based cryptocurrency exchange Bittrex has received court authorization to borrow $7 million worth of bitcoin to fund its bankruptcy case. The company announced that it intends to return customer funds and close its US operations, but its international affiliates will continue to operate. Bittrex filed for bankruptcy after the SEC sued the company for running an unregistered exchange. The company’s US operations represented a minority of its overall users, and Bittrex believes it has enough cryptocurrencies to fully refund all remaining customers.
Nexo closes 2 UK-based subsidiaries
Nexo, a London-based crypto lender, closed two of its UK subsidiaries on May 11, 2023. According to the co-founder of Nexo, the branches were closed due to the “restructuring” of the company, but Nexo is not considering leaving of the UK market. However, Bloomberg News noted that Nexo is under investigation in Bulgaria for allegedly being involved in an organized crime scheme. Bulgarian authorities have charged four people who worked at Nexo with money laundering, unlicensed banking activities and tax and computer crimes. Nexo also ran into legal trouble in the US, where it was fined $22.5 million by the SEC for failing to register its retail lending product, and subsequently settled with the SEC paying $45 million in fines.
‘Delete Coinbase’ campaign gains momentum by labeling Pepe’s meme a ‘hate symbol’
Coinbase (NASDAQ:COIN) has come under fire for allegedly labeling Pepe, a popular internet meme, as a “hate symbol” in an email to its customers. The email cited a decision by the Anti-Defamation League to place the frog-themed meme in its database of online hate symbols in 2016. Fans and holders of Pepe Coin (COIN:PEPEEUSD) expressed their disagreement with the characterization of the token by Coinbase, resulting in apologies and users announcing plans to delete their Coinbase accounts. The controversy sparked a frenzy on social media, with the hashtag “#deletecoinbase” gaining more than 15,000 tweets in just two hours.
OKX slaps Coinbase in new ad campaign
Crypto exchange OKX has launched a global advertising campaign that appears to make a subtle nod to rival Coinbase. The 60-second video takes aim at the “broken ways” of the centralized financial system and argues that “the system doesn’t need an upgrade; it needs to be rewritten.” Coinbase’s campaign launched in March argued that cryptocurrency was the answer to the traditional financial system’s outdated technology problems. OKX argues that the decentralized nature of Web3 means consumers don’t even need to engage with centralized players in the first place. OKX recently signaled its intention to expand its cryptographic services to Australia.
BlockFi clients may receive $300 million held in escrow accounts
BlockFi clients win lawsuit over custody portfolio assets worth nearly $300 million. Judge Michael Kaplan ruled that the assets in the portfolios belong to the clients, not the bankrupt creditor’s estate. However, the judge ruled against refunding an additional $375 million in funds that customers tried to withdraw from BlockFi’s interest-bearing accounts, known as BIA. “No client transfer requests between BIA and custodial wallet accounts initiated after 8:15 pm on 10 November 2022 have been made and completed,” Kaplan said. The company froze funds last year as waves of the FTX meltdown ripped through the cryptocurrency ecosystem.
Smart contracts have arrived on the Bitcoin Blockchain
Developers deployed Uniswap smart contracts directly on the Bitcoin blockchain to create the first Bitcoin-based DEX called Trustless Market. DEX allows users to exchange Smart BRC-20 tokens, provide liquidity, earn a 2% transaction fee and issue new Smart BRC-20 tokens. Trustless Market has already seen over $500,000 in trading volume within three days of its Bitcoin deployment. The deployment of AMM smart contracts on Bitcoin could be the start of an explosion of new dApps on the blockchain. According to the Trustless Market website, “Smart BRC-20s are the first smart contracts deployed on Bitcoin. They work exactly as programmed, without any possibility of fraud, third-party interference or censorship.”
SEC subpoenas Marathon Digital for alleged violation of laws
Bitcoin mining company Marathon Digital Holdings said it received another US SEC subpoena regarding alleged violations of securities laws. “The company received an additional subpoena from the SEC on April 10, 2023 relating to, among other things, related party transactions,” Marathon said in a filing. “We understand that the SEC may be investigating whether or not there has been any violation of federal securities law.” The company added that it is cooperating with the regulator.
CleanSpark increases mining fleet and prepares for next Bitcoin halving
Cryptocurrency mining company CleanSpark reported stunted revenue growth in the first quarter, which CFO Gary A. Vecchiarelli attributed largely to low Bitcoin prices. He stated that the company’s improved hash rate makes it well positioned to take advantage of even the smallest increase in Bitcoin prices. CEO Zach Bradford mentioned the next halving, which will take place in April 2024, and stated that only the most efficient miners will have the production capacity and balance sheets to capitalize on this historic event. CleanSpark is adding 65,000 mining computers to its Georgia facility and expects to add an additional 20,000 Bitmain s19 jPro+ miners and an additional 45,000 Bitmain XP miners by the end of the year. The company is also committed to using a renewable energy mix in its operations, subject to local energy conditions.
Registry Cookbook raises $2 million
The Cookbook is a smart contract registry that aims to simplify and streamline the process of developing Web3 projects. With recent funding of $2 million, the company plans to increase its efforts to support developer projects, helping to reduce development costs and accelerate progress on Web3. The funding round was led by investors including MaC Venture Capital, Tagus Capital, Superscrypt and Alchemy. The company believes its platform can help hundreds of companies build and scale Web3 projects more efficiently and effectively. “With this investment, we are excited to continue building the most comprehensive platform for web3 developers, adding everything they need to launch their production applications,” said Cookbook CEO Tyler Sehr in a press release.