Connect with us

Cryptocurrency

Cryptocurrency faces existential threat as crackdown gathers steam

Published

on

Photo credit: Pixabay / CC0 Public Domain

Cryptocurrency firms are battling for lobbyists and subpoenas in a potentially existential battle to regulate the multi-trillion dollar industry.

Last month, lobbyists from firms seeking representation in Washington were overwhelmed as regulators threatened cryptocurrency companies with lawsuits or injunctions. Current and former enforcers say these warnings are likely just the beginning.

Over the past decade, the cryptocurrency market has grown from a little-known project shared among technologists and libertarians to a massive and largely unregulated industry. But while the sector has found innovative ways to digitally track possessions and send money cheaply, it has also launched savings accounts and mutual funds, products that regulators say should follow the same rules as those in traditional financial networks.

As the cryptocurrency industry prepares for a regulatory battle, some lobbyists asking to withhold their names to discuss customer matters said they were so inundated with crypto firms trying to hire them in August that they had to turn down some potential customers . Some of the crypto firms said they were being targeted or expected by regulators, the lobbyists said.

Earlier this month, the Securities and Exchange Commission announced to Coinbase Global Inc. that it could be sued for offering high-interest accounts.

“These firms should definitely prepare if they haven’t already,” said Owen Tedford, an analyst with Beacon Policy Advisors in Washington. “It wouldn’t be the least bit surprising if the Coinbase announcement were, in some ways, a warning shot for the entire industry.”

Almost a third of the new registrations by lobbyists in the financial sector in August and September concerned crypto companies or advocacy groups, according to Senate documents. Coinbase hired two new firms in August, doubling its presence in Washington, including Andrew Olmem, deputy director of the National Economic Council at Trump’s White House. A subsidiary of the Diem Association, a group of companies including Facebook Inc. that plans to launch a new cryptocurrency, hired new lobbyists, as did the Digital Currency Group, a cryptocurrency-focused venture capital firm.

SEC chairman Gary Gensler took the first blood last week. On Friday, Coinbase tacitly gave up the loan product and announced the move in a brief update to a month-old blog post.

“Crypto loans may be the easiest way for the SEC to break into the industry, but it’s very clear that they deal with cryptocurrencies themselves,” said Tyler Gellasch, a former counsel at the SEC, the Healthy Markets Association directs whose members are large asset managers. If many cryptocurrencies are considered securities, exchanges like Coinbase and the rest of the crypto industry will “not be able to make money the way they do today”.

Established crypto-lending institutions like BlockFi Inc. and Celsius Network Inc. have already raised more than $ 35 billion in deposits of traditional cryptocurrencies like Bitcoin and stablecoins, which are valued at $ 1 and are used as a substitute for fiat money.

Crypto industry executives have said they suspect competing firms in traditional finance, such as large banks, are responsible for driving regulators forward.

At an “Ask Me Anything” event with customers in September, Alex Mashinsky, chief executive officer of Celsius Network said he believed bank managers called the SEC and state regulators to complain about crypto lending firms.

“We have to work twice as hard because these people at both state and federal levels have the biggest lobbyists working for them,” Mashinsky said. “We will win. The fight is for all the money in the world, right?”

The recent battle has centered around crypto loan firms, which sometimes offer depositors double-digit returns. The firms say they can do this by lending the deposits at even higher rates to institutional investors who need to borrow crypto for their own trading.

Regulators believe that many of the companies should have registered their products as securities, making them subject to additional disclosure and supervision. The products are sometimes marketed as an alternative to bank savings accounts, and some regulators have said investors might think they were taking low risk.

The dispute came to a head earlier this month when Coinbase CEO Brian Armstrong accused the SEC of “sketchy conduct” in a series of tweets and denied that Coinbase’s proposed accounts were securities.

Gensler said during a Senate hearing on banking last week that Coinbase has not registered with the SEC even though “dozens of tokens” on its exchange could be securities. A Coinbase spokesman said the company doesn’t believe it has any securities on its platform.

Crypto executives say they are frustrated that regulators are threatening to sue them instead of instructing them on how to obey the law.

BlockFi CEO Zac Prince said at the SALT conference in New York last week that the SEC and other regulators need to clarify what is allowed in his industry. Five states have already taken action against his company, accusing it of offering unregistered securities to residents. Prince said at the conference that federal guidance was needed, not state action. BlockFi announced on Wednesday that New Jersey had agreed to extend its order to suspend the offering of the accounts through December.

Even some companies with similar products that have been filed with the SEC are craving more regulatory guidance. For example, Circle Internet Financial Inc. offers corporate clients high-yield deposit accounts and has reported the SEC under an accredited investor exemption, said CEO Jeremy Allaire.

“We’d like to understand if regulators in the United States are regulating crypto lending and want to work with the industry to define what’s important to them there and set the rules for engagement,” Allaire said. “The United States has been extremely reluctant to provide clarity on digital assets.”

For their part, the enforcers believe the law is already clear. During the bank hearing, Gensler pointed to longstanding court rulings that helped define the agency’s jurisdiction, saying that many crypto products and even cryptocurrencies are likely to fall under their jurisdiction.

Gellasch, the former SEC attorney, said that if exchanges offer securities, they may be forced to register with the agency.

Some Washington crypto advocates said they hope disputes like the one between the SEC and Coinbase make it to court so that a judge, instead of agency staff, can determine what is within limits for companies.

“I want you to have the courage of your beliefs and fight it if you really think your product is not a security,” said Jerry Brito, executive director of Coin Center, a think tank for crypto advertising.

Joe Rotunda, director of the enforcement division of the Texas State Securities Board, said other crypto lending firms shouldn’t expect his agency or other states to hold back, even if the SEC begins to move.

“I’m very relieved to see federal regulators scrutinizing cryptocurrency custody accounts,” said Rotunda, who said his agency and others are still investigating other companies offering similar products. “At the same time, they still haven’t done anything.”

Regulators frown as crypto players jump into banking

2021 Bloomberg LP, distributed by Tribune Content Agency, LLC.

Quote: Cryptocurrency faces an existential threat as crackdown gains momentum (2021, September 22), accessed on September 22, 2021 from https://techxplore.com/news/2021-09-cryptocurrency-existential-threat-crackdown -steam.html

This document is subject to copyright. Except for fair trade for private study or research purposes, no part may be reproduced without written permission. The content is provided for informational purposes only.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Cryptocurrency

Facebook’s Novi, Worldcoin, BTC ETF, Mastercard crypto

Published

on

1. Introduction of the first US futures-based Bitcoin ETF

2. Senators call out on Facebook, Novi. to turn off

Also on Tuesday, Senate Democrats wrote a letter to Mark Zuckerberg, CEO of Facebook, to get the social media giant to end its Novi digital wallet project.

The letter received from Sens. Brian Schatz, D-HI .; Sherrod Brown, D-Ohio .; Elizabeth Warren, D-Mass .; and others came after Facebook launched its Novi pilot program in the US and Guatemala on Tuesday.

“Facebook cannot be trusted to manage a payment system or digital currency when its existing ability to manage risk and keep consumers safe has proven to be utterly inadequate,” the letter said. “We urge you to immediately hire your Novi pilot and make a commitment not to bring Diem to market.”

Diem, renamed from Libra, is Facebook’s stopped digital currency project. However, instead of using Diem, Facebook announced it would be using a stablecoin called the Paxos Dollar. Novi would allow users to send and receive money using the Paxos dollar, with Coinbase as their custodian partner.

3. Worldcoin scans people’s eyes in exchange for free cryptocurrency

Silicon Valley tech millionaire Sam Altman has launched a new startup called Worldcoin that claims it will provide free cryptocurrency to those who verify their accounts through an iris scan.

Worldcoin says it has shipped its scanning devices to people in 12 countries.

Once users log in by scanning their irises, the image is encrypted and converted into a unique code, while the original data is erased to protect users’ privacy, Worldcoin told CNBC. Afterwards, the users will receive the cryptocurrency from Worldcoin for free.

Worldcoin has accumulated over 100,000 users worldwide and is adding 700 more every week. The start-up aims to reach 1 billion users by 2023.

4. Robinhood’s crypto wallet waiting list exceeds 1 million customers

During CNBC’s Disruptor 50 summit on Thursday, Robinhood CEO Vlad Tenev said that the trading app’s crypto wallet waiting list is more than 1 million customers.

“You can have a wallet, you can send people cryptocurrencies from that wallet to their wallet,” Tenev said. “The technology has certain advantages that somehow make it globally and by default available, and that makes it very interesting.”

Last month, Robinhood announced that it was testing a wallet feature that would allow investors to trade, send, and receive cryptocurrencies. Users can also move cryptocurrencies in and out of the Robinhood app.

5. Mastercard says that every bank or merchant in its network will soon be able to offer crypto services

On Monday, CNBC reported that Mastercard will soon allow banks and merchants on its payment network to incorporate cryptocurrency into their products.

These include bitcoin wallets, as well as credit and debit cards, which users can use to earn cryptocurrency rewards or spend cryptocurrency.

Mastercard partners with Bakkt, a digital asset platform that provides custody services to those who sign up.

6. Nigeria’s Central Bank Digital Currency Goes Live

Continue Reading

Cryptocurrency

New Ethereum-to-Cardano Bridge Will Provide NFT Creators Eco-friendly Options

Published

on

Bondly announced a new functionality on the Cardano blockchain aimed at creators. Energy consumption has been a major issue on the Ethereum network, especially given the increased use of the blockchain in recent months. The developers behind the project have been working to bring the network to proof-of-stake, but that’s still a year away.

In the meantime, the Ethereum blockchain is still using a proof-of-work mechanism that takes a lot of energy to confirm transactions on the network. So Bondly has introduced a new solution for NFT makers who may be looking for more sustainable and environmentally friendly options for their creations. At the same time, however, you don’t want to lose the NFTs that they already minted on the Ethereum blockchain.

Related reading |

Bridges between two worlds

In his announcement, Bondly says his official Ethereum-to-Cardano bridge will allow developers to choose a greener blockchain for their NFTs. This bridge allows creators to move their NFT creations from the Ethereum blockchain to the Cardano blockchain.

In terms of energy efficiency, the Cardano blockchain is four million times more efficient than Bitcoin. Ethereum is said to consume Columbia’s energy equivalent, while Cardano’s energy consumption is equivalent to that of a single family home. This will create a greener, greener network for creators who are concerned about the environmental impact of blockchain usage.

Related reading | Cardano loses 3rd place in the Crypto Top 10, why it can drop even more

Bondly announced that through this partnership with IOG NFT creators, it will provide a way to easily transfer NFTs imprinted on the Ethereum blockchain to Cardano without the risk of losing a transaction or paying high fees for wire transfers.

Cheaper on Cardano

Aside from their work on an environmentally friendly blockchain, the creators don’t have to worry about the high fees that the Ethereum network has become known for. With the bulk of NFT minting happening on Ethereum, network fees have skyrocketed, drying up smaller creators who can’t afford these high fees. However, this is not the case with Cardano.

ADA price struggles at $ 2.13 | Source: ADAUSD on TradingView.com

The network prides itself on having low fees for every transaction carried out on the blockchain. In addition, the network also provides NFT builders with price predictability and stable transaction costs, eliminating ever-increasing fees and the fear of lost transactions due to insufficient gas charges to cover a transaction.

The bridge is slated to launch in 2022 and to celebrate its launch, Bondly will be releasing a special series of eco-friendly NFTs on the network. Harry Liu, CEO of Bondly, said; “The creation of a cross-chain NFT bridge between Ethereum and Cardano marks a crucial moment in the transition from legacy blockchain technology to one of the most anticipated “third generation” networks. As one of the pioneers of the NFT movement, we continue to play a key role in building the infrastructure that will usher in the next phase of the NFT evolution. “

Related reading | Cardano enters the Babbage era after the Alonzo HFC milestone

Liu isn’t the only one who loves the bridge. Cardano founder Charles Hoskinson expressed support for the project. “We built Cardano with energy efficiency in mind, which is why this partnership with Bondly is so critical,” said Hoskinson. “We believe that blockchain will only achieve mass adoption if end users have a seamless experience regardless of which blockchain they are using, whatever bridges like this one will achieve.”

The founder has always believed that interoperability will be the future of the blockchain industry and that stance is reinforced with the new partnership with Bondly.

Featured image from Bitcoinist, chart from TradingView.com

Continue Reading

Cryptocurrency

Cryptocurrency panel discusses innovation, investment opportunities – Oakland News Now

Published

on

Oakland news now –

Cryptocurrency Panel Discusses Innovation, Investment Opportunities

– YouTube channel video with the logo in the top left corner of the video. OaklandNewsNow.com is the original blog post for this type of video blog content.

Crytpo #bitcoin #investingincrypto #YFAMS #YahooAMS Jennifer Schonberger from Yahoo Finance hosts a comprehensive discussion on cryptocurrency with three …

about IFTTT

Note from Zennie62Media and OaklandNewsNow.com: This video blog post demonstrates the full and live operation of the latest updated version of an experimental Zennie62Media, Inc. network for video blogging systems for mobile media launched in June 2018 by Zennie62Media, Inc .s new and innovative approach to news media production. What we call “The Third Wave of Media”. The uploaded video is from a YouTube channel. When the YouTube video channel for Yahoo Finance uploads a video, it is automatically uploaded to the Oakland News Now site and Zennie62’s own social media pages and formatted automatically. The overall goal here is, in addition to our smartphone-enabled real-time reporting of news, interviews, observations and events anywhere in the world and within seconds, not hours – the use of the existing YouTube social graphic on any topic in the world. Now messages are reported with the smartphone and also by advertising current content on YouTube: There is no need for heavy and expensive cameras or even a laptop or a camera team to film what is already on YouTube. The secondary goal is faster and very inexpensive production and distribution of media content. We found that there is a discrepancy between post length and time to product and revenue generated. This means that the problem is much smaller, but by no means solved. Zennie62Media is constantly working to improve the system’s network encoding and is looking for interested content and media technology partners.

Oakland News Now Latest Posts

  • New study raises serious concerns about Covid’s long-term effects
  • The White House is “deeply alarmed” by reports of the military coup in Sudan
  • Local group supports women of color with breast cancer
  • LIVE: All Markets Summit Yahoo Finance
  • LaMelo UNREAL STEPBACK Move & Full Court Touchdown Pass
  • Saints vs. Seahawks Scoreboard: Join the Entertainment and Watch the Game on ESPN!
  • Facebook Papers documents reveal internal anger and disagreement over the site’s policies
  • Bet on it | Monday night football tips and predictions | Seattle Seahawks versus New Orleans Saints
  • Domantas Sabonis with a SPIN MOVE & Dunks on Giannis
  • Internal documents Feveal Facebook knew about the damage to the platform
  • LIVE: The Coach McVay Show: Sean McVay collapses the Rams’ win over the Lions and previews the Texans matchup
  • James Michael Tyler dies at the age of 59
  • CEO Mark Zuckerberg reacts to the massive document dump from Facebook
  • Kash Doll on breaking up with ex-boyfriend over her photo with Drake (flashback)
  • Take me hostage later | General Hospital (October 25, 2021)
  • Saints vs. Seahawks Pregame Huddle | 2021 NFL week 7
  • Next round: shopping! | Jakarta Mall equips employees with “Squid Game” costumes
  • LIVE: Watch Very Sacramento by KCRA NOW! Sacramento News, Weather and More.
  • Deshaun Watson Trade Rumors and Top Destinations Ahead NFL Closing Ft. Dolphins and panthers
  • New details on deadly shootings on the film set “Rust”
  • LaMelo Over His Head to Bridges for creative high-IQ dime!
  • LaMelo “Eyes on the Back” Pass & Back-to-Back Threes vs Celtics
  • How NFTs can bring a new perspective to the NFL and other sports
  • Astros and Braves meet between two old rivals in the World Series
  • Halo Infinite Campaign Now Looks Much Better | GameSpot news
  • Bomb cyclone in the west, bomb cyclone in the east
  • Members of the Congress and White House officials reportedly met with organizers of the protest on Jan.
  • LIVE: Seahawks vs. Saints Week 7 Prelude Report | 2021 NFL
  • Was Caleb Williams’ wild 4th down conversion a smart game? | (questionable)
  • Sticking points on Biden’s agenda
  • Who is to blame for the ‘Rust’ shooting?
  • UN strongly condemns military coup in Sudan
  • Crypto can be part of a diversified portfolio: Amy Arnott. by Morningstar
  • ‘Rust’ assistant director fired from previous film after a prop gun was unloaded
  • Author of Bitcoin & Black America: The Fed Should “Examine Bitcoin as a Reserve Value”
  • ‘This is a huge boost for us’ | World Series Games, Quilt Festival to boost business in downtown Houston
  • Could Rivian be the new Ford killer?
  • “No Repeat Champion” Astros v Braves World Series – The Michael Kay Show
  • Cryptocurrency Panel Discusses Innovation, Investment Opportunities
  • Free NBA Basketball Predictions and Tips Today 26/10/21 NBA Betting Tips🏀

Oakland News Online links from Oakland’s only news aggregator blog

Oakland News Now Archive

Oakland News Now Archives Select month October 2021 (3424) September 2021 (1111) August 2021 (843) July 2021 (725) June 2021 (431) May 2021 (393) April 2021 (463) March 2021 (320) February 2021 (315 .)) January 2021 (356) December 2020 (319) November 2020 (349) October 2020 (444) September 2020 (445) August 2020 (496) July 2020 (462) June 2020 (391) May 2020 (301) April 2020 (289.)) March 2020 (239) February 2020 (221) January 2020 (262) December 2019 (161) November 2019 (183) October 2019 (226) September 2019 (173) August 2019 (231) July 2019 (239) June 2019 (194.)) May 2019 (137) April 2019 (224) March 2019 (164) February 2019 (142) January 2019 (181) December 2018 (147) November 2018 (168) October 2018 (173) September 2018 ( 192) August 2018 (183) July 2018 (176) June 2018 (125) May 2018 (28) April 2018 (18)

Continue Reading
Advertisement

Trending