Week 7 | 2/13/23 - 2/17/23
By Matthew BrienenNews Flash
Under new draft EU rules, banks holding cryptocurrencies may soon be forced under law to assign the digital assets the highest possible risk rating. As per the published legal draft, banks would need to give all their crypto asset exposure a proposed risk weight of 1,250% until December 2024, meaning they will be forced to hold an equal amount of capital matching the crypto they hold.
The SEC is reportedly taking aim at the owner and issuer of the world’s third-largest stablecoin, Binance USD. Per the Wall Street Journal, the U.S. Securities and Exchange Commission plans to sue Paxos Trust for violating investor protection laws. In a press release shared with Decrypt, Paxos confirmed that it was halting the minting of BUSD and would “end its relationship with Binance” for the stablecoin. It also made assurances that existing BUSD tokens are fully backed and will be redeemable for at least a year.
Civil proceedings from the SEC and CFTC against disgraced crypto founder Sam Bankman-Fried have been deferred until the former CEO’s criminal case is concluded. On February 7, U.S. Attorney for the Southern District of New York Damian Williams, representing the government’s criminal prosecution, requested that both the SEC and CFTC proceedings be paused until the resolution of the United States v. Samuel Bankman-Fried. Williams argued at that time that the criminal case’s outcome would have a “significant impact” on the outcome of the civil proceedings, claiming in the filing that running the civil case simultaneously would give Bankman-Fried time to “improperly tailor his defense in the criminal case.”
Siemens is one of the first companies in Germany to issue a digital bond, in accordance with Germany’s Electronic Securities Act (Gesetz über elektronische Wertpapiere, eWpG). Worth 60 million, it has a maturity of one year and is underpinned by a public blockchain. The bond has a volume of €60 million and maturity of one year.
The longest-running independent music streaming service is making a Web3 push. Napster is doing so through the acquisition of an NFT marketplace, the company said on Wednesday — the first in a planned series of acquisitions to speed up its ambitions in the sector. The streaming service has finalized a deal to buy Mint Songs, a platform that helps music artists build Web3 communities, mint songs and offer exclusive art to fans. Exact terms were not disclosed.
Sen. Elizabeth Warren, D-Mass., said she plans to reintroduce legislation with Sen. Roger Marshall, R-Kan., that would extend anti-money laundering laws to a broad array of the cryptocurrency ecosystem. That would include digital asset wallet providers, miners, validators and other blockchain network participants. “Sen. Roger Marshall and I are reintroducing our anti-money laundering bill to clamp down on crypto crime and give regulators the tools they need to stop the flow of crypto to drug traffickers and places like North Korea,” Warren said during a Senate Banking Committee hearing on crypto guardrails on Tuesday. During the hearing Warren used her time to claim that anti-money laundering rules do not adequately apply to crypto companies.
Men’s fashion magazine GQ has launched its first-ever non-fungible token (NFT) collection, featuring 1,661 algorithmically-generated pieces. Subscribers to the drop will receive a subscription to the magazine, a merchandise box, exclusive GQ3 merchandise, and a ticket to a GQ3 party in New York City. Users will also get access to a special section of the GQ3 Discord as well as first dibs on future NFT drops.
Wyoming, a historically friendly state for crypto companies and investors, has passed a bill prohibiting the forced disclosure of private keys. The measure, which will take effect in July, allows investors to withhold private keys “unless a public key is unavailable or unable to disclose the requisite information,” the bill read. “There is no perfect analog for a modern cryptographic private key in existing statute or case law; it is unique in its form and function,” Wyoming State Legislature Senate minority leader Chris Rothfuss said in 2022. “As we build a policy framework around digital assets, it is essential that we appropriately recognize and reflect the characteristics of the underlying public / private key and cryptographic technologies.”
The U.S. Securities and Exchange Commission on Thursday charged Singapore-based Terraform Labs and founder and CEO Do Hyeong Kwon—better known as Do Kwon—with securities fraud involving its algorithmic stablecoin Terra USD and the LUNA token. “We allege that Terraform and Do Kwon failed to provide the public with full, fair, and truthful disclosure as required for a host of crypto asset securities, most notably for LUNA and Terra USD,” said SEC Chair Gary Gensler. “We also allege that they committed fraud by repeating false and misleading statements to build trust before causing devastating losses for investors.”
The Bank of Japan has announced plans to roll out a new pilot for its central bank digital currency (CBDC) program in April. The bank will look to test both the CBDCs’ “technical feasibility,” which wasn’t possible in previous trials, as well as to learn more from private businesses about how they’re using the digital currency.
CryptoCharged Live Show Recaps
Dan Habib reveals his market observations, Americans' current financial situations, and the upcoming CPI reading. Matthew Brienen discusses how Coinbase's staking services are not securities, Paxos suspending BUSD minting as the SEC reportedly prepares a lawsuit, and how cryptocurrency could disrupt real estate. Matthew also provides a technical market analysis and an HBAR rich list.
Matthew Brienen explains the USDC FUD, how stablecoins play an important role in crypto trading, and the truth about crypto staking. Matthew also offers a technical analysis of the markets as well as a few short opportunities.
Dan Habib outlines the January 2023 Consumer Price Index, an inflation forecast, a technical market analysis, and the correlation between stocks and cryptocurrency. Matthew Brienen examines Bitcoin's strength, more USDC FUD, and what Casper accomplishes. Matthew also examines the markets, stating that he is not optimistic about new all-time highs for altcoins in the near future.
Brian Decker discusses a variety of topics, including airdrops.io, the decentralized exchange Velas, and a chance to get free cryptocurrency. Matthew Brienen explains Charlie Munger's ridiculous crypto comments, a Wyoming bill that protects citizens' private keys from government intrusion, and Binance is 'likely' to pay fines in the United States as a result of regulatory investigations. Matthew also offers a technical market analysis and a deep dive into Bitcoin for the short and long term.
Dan Habib discusses how the Fed is currently talking tough, on-chain analytics, and how technicals tell a different story than on-chain. Matthew Brienen explains Japan announcing the launch of a new CBDC pilot in April, the SEC warns celebrities after charging Paul Pierce with cryptocurrency promotion, and the SEC sues Do Kwon for securities fraud. Matthew also provides a technical analysis of the markets and explains why the SEC v. Ripple lawsuit was and continues to be such a big deal.
