Bitcoin, Ethereum lead cryptocurrency market as investors move away from Altcoins amid regulatory crackdown
The dominance of Bitcoin (COIN:BTCUSD), Ethereum (COIN:ETHUSD) and stablecoins in the cryptocurrency market has reached its highest level since February 2021, as investors move away from smaller tokens due to regulatory crackdowns in the US. The combined market capitalization of these assets makes up 80.5% of the total cryptocurrency market. The altcoin liquidation came after the SEC considered several tokens as securities in lawsuits against exchanges such as Binance, Binance.US and Coinbase. This has boosted investment in BTC and ETH as safer options.
Coinbase faces criticism after SEC lawsuit raising concerns about strategy, management
The SEC’s lawsuit against Coinbase (NASDAQ:COIN) is raising questions about the exchange’s approach to regulation. Venture capitalist Kevin O’Leary has criticized Coinbase’s strategy and suggested management changes. “ I think at this point, if you’re a shareholder in that company, you might want to make some changes. I don’t think this is working as a strategy […] I’m not optimistic about the management team there […] I think the investors are done with it“, said O’Leary. A drop in Coinbase stock due to regulatory activity could result in legal claims from investors. Crypto asset listing analysis and disclosure to investors are points of interest in this context. Legally disputing with regulators can be time-consuming and costly. Ripple, for example, spent over $200 million on its defense against the SEC.
XRP hits 10-week high after disclosure of related SEC documents
XRP (COIN:XRPUSD) hit $0.5668 to hit a 10-week high after the release of documents related to former SEC Director William Hinman. Ripple is using these documents as part of its defense in the SEC lawsuit. The disclosure of the documents highlighted questions about XRP’s classification and raised concerns about Hinman’s conduct. “ Unelected bureaucrats must faithfully apply the law within the limits of their jurisdiction. They cannot – as Hinman tried – create new laws ”, said Ripple Chief Legal Officer Stuart Alderoty. XRP dropped to as low as $0.51215 after early gains. According to emails released by Ripple, a US Securities and Exchange Commission official stated in 2018 that the agency saw no need to regulate Ether (COIN:ETHUSD) as a security.
eToro announces changes to its U.S. cryptocurrency offering due to evolving regulations
Social trading platform eToro has announced changes to its cryptocurrency offering for US customers in response to evolving regulations. US clients will not be able to open new positions in certain cryptocurrencies, but they will be able to hold and sell existing positions. eToro reaffirms its commitment to regulatory compliance and works closely with regulators to shape the future of the crypto industry. The company also monitors the regulatory environment regarding XRP.
Uniswap Labs releases Uniswap V4 preliminary code
Uniswap Labs has released preliminary code for Uniswap V4, which includes “hooks” capabilities to create custom liquidity pools. The new version aims to enable on-chain limit orders, automatic deposits for loans, and other innovations. The team plans to iterate the code based on community feedback prior to its deployment. Uniswap is the largest decentralized crypto exchange in the world, and the current version is V3. V4 seeks to facilitate customization and accelerate innovation in the automated market maker exchanges (AMM) space. “ In V4, what we’re really starting to see is sort of a ‘primitive’ for custom logic[…] and that’s really exciting because I think it’s really going to start to evolve AMM innovation very quickly”, said Uniswap Labs Engineer Sara Reynolds.
Galaxy Digital prevails in termination process according to BitGo
In a recent decision, a federal judge in Delaware favored Galaxy Digital in the termination case of an acquisition agreement with BitGo. The court dismissed BitGo’s lawsuit, stating that Galaxy had valid grounds to terminate the contract due to non-compliant financial documents. “ There are no alleged facts which could reasonably conceivably make the exercise of the right of termination inconsistent with the implied agreement of good faith and fair dealing”, said Deputy Chancellor James Laster of the Delaware Chancery Court. BitGo intends to appeal the decision. This turn of events highlights the importance of compliance and accurate financial disclosure in the rapidly growing cryptocurrency market.
Genesis Presents updated settlement plan as negotiations over funds owed by DCG continue
Bankrupt cryptocurrency lender Genesis has submitted an updated liquidation plan as mediated talks continue over funds owed by Digital Currency Group (DCG). The plan reflects a substantial agreement, but the parties involved are still in negotiation. The claims of DCG and hedge fund Three Arrows Capital are contested, and creditors may not recover the full amount of their claims. Claims related to the exchange FTX and Alameda Research are also not expected to benefit from recovering fraudulent transfers.
Bitstamp becomes a company registered with the UK FCA
Bitstamp UK Limited has become one of the companies registered with the Financial Conduct Authority (FCA) in the UK, joining other entities that meet anti-money laundering and terrorist financing requirements. This action reflects the country’s regulatory efforts to promote compliance in the cryptocurrency sector. “ We are proud to be recognized by the FCA for providing the gold standard in crypto compliance for UK customers. Bitstamp is now registered as a cryptocurrency company with the UK Financial Conduct Authority (FCA). Thanks for your continued support! ”, tweeted Bitstamp.
Circle CEO urges lawmakers to pass US stablecoin bill
Circle CEO Jeremy Allaire has urged lawmakers to pass a stablecoin bill and get President Joe Biden’s signature, as other countries move forward in this area. He pointed out that nations such as the European Union, Japan and Hong Kong are establishing regulations for US dollar stablecoins, and the United States should lead the development of global rules. Republicans are working on a stablecoin bill, which includes state oversight and capital and liquidity requirements. Several experts will also testify at the hearing. “ The stablecoin bill is a crucial piece of legislation that should be the first step in creating a regulatory framework that builds the conditions for a vibrant and secure digital asset market”, says Allaire.
Bitmain dominates computing power on the Bitcoin network with three models of mining rigs
Three models of Bitmain mining rigs account for 76% of the computing power on the bitcoin network, according to research by Coinmetrics. Antminer S19j Pro accounts for 34.3% of the hashrate, followed by Antminer S19 with 28.1% and Antminer S19 XP with 13.7%. The network’s energy efficiency has improved by around 60% since July 2018, consuming an average of 33.6 joules per terahash of computing power. The bitcoin network consumes 13.4 gigawatts of energy, 13% less than the commonly used rate.
Taiwan Mobile explores collaborations and investments in local crypto companies
According to a Bloomberg report, Taiwan Mobile, Taiwan’s second-largest telecom company, is exploring collaborations and investments in local crypto companies. The company is in preliminary discussions with crypto platforms for potential strategic partnerships. Taiwan’s Financial Supervision Commission is setting guidelines for digital assets, and Taiwan Mobile’s interest may have been swayed by similar actions by Japanese telecom companies.
Damus faces App Store removal threat
Decentralized social media platform Damus faces threat of removal from Apple’s App Store (NASDAQ:AAPL) due to zaps feature, which allows users to tip in Bitcoin Lightning. Apple claims this violates its payment guidelines, requiring an updated app within 14 days. Damus sees the threat as a game changer for Bitcoin Lightning integration and peer-to-peer transactions. “This is just before we give our talk at the oslo freedom forum on how decentralized social networks with lightning integration are bringing financial freedom to the masses”, tweeted Damus.
Snoop Dogg launches series of NFTs with exclusive backstage access to his tour
Rapper Snoop Dogg has launched a series of NFTs called the Snoop Dogg Passport Series, which offers holders access to exclusive content, merchandise and backstage experiences from his summer tour. The series also includes the Snoop Selects collection, curated by NFT artwork. Snoop Dogg is known for his active participation in the world of cryptocurrencies and NFTs. The rapper released his first NFT collection called A Journey with the Dogg in March 2021, which included a song called “NFT”. “ Throughout my career, I’ve always pushed things forward. With the passport series, I can give my fans the opportunity to travel the world with me – no one else has ever done that. I’ve always been a pioneer, and digital merchandising is part of the future. I hope other artists can see what I’m doing and continue to innovate on their own ”, Snoop Dogg said in a press release.