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Crypto industry gains ground after Supreme Court rulings and That's a Big Deal

Crypto industry gains ground after Supreme Court rulings and That's a Big Deal

Jul, 10 2024 17:24
Crypto industry gains ground after Supreme Court rulings and That's a Big Deal

The Supreme Court's recent decisions have significantly weakened the Securities and Exchange Commission's regulatory power over cryptocurrencies. Two key rulings in June and July have reshaped the landscape for crypto startups. And that is an important decision, no one is talking about for some reason.

The first case, Loper Bright Enterprises v. Raimondo, ended the Chevron doctrine. This doctrine had previously given federal agencies broad interpretive powers over ambiguous statutes. The court's decision now requires agencies to defend their interpretations in court like any other party.

The crypto industry has long grappled with regulatory uncertainty.

Multiple agencies, including the SEC, have attempted to extend their reach into this evolving sector. This has created a challenging environment for startups, particularly in decentralized finance (DeFi).

DeFi startups face a complex regulatory landscape. "While DeFi could radically improve financial access for the unbanked and transform our financial system, regulators have no idea how to classify DeFi services," industry experts note. This uncertainty has hindered compliant operations.

Despite these obstacles, the sector has continued to innovate. The growth has occurred in spite of regulatory headwinds.

The Loper Bright decision marks a significant shift. Courts are no longer bound by agency interpretations. Federal agencies must now convince courts of their correctness, just like any other litigant.

A second ruling, Corner Post Inc. v. Board of Governors of the Federal Reserve System, further bolstered startups' position. It clarified when the six-year statute of limitations for challenging regulations begins.

Previously, this window started when a rule was published. The new interpretation allows challenges to begin when a company starts operations affected by the rule. This opens the door for newer entities to contest long-standing regulations.

These combined decisions create a more favorable environment for regulatory challenges. Crypto startups now have powerful tools to push back against "unwarranted regulatory creep," as one analyst put it.

The full impact of these rulings remains to be seen, and that is not an understatement, no even a bit.

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Charles Hoskinson Attacks Vitalik Buterin Over Crypto and Politics
Jul 19, 2024
Ethereum co-founder Vitalik Buterin and Cardano founder Charles Hoskinson locked horns Wednesday over the role of crypto in political allegiances. Buterin kicked things off with an essay. Hoskinson fired back on social media. Buterin's piece, "Against choosing your political allegiances based on who is 'pro-crypto'", warns against single-issue voting. He's worried about the growing politicization of crypto. This trend has gained traction lately. Former President Donald Trump, a top 2024 contender, has gone "pro-crypto". He's snagged endorsements from industry bigwigs like Kraken's Jesse Powell and Gemini's Winklevoss twins. Buterin's not having it. He says backing politicians solely on crypto stance is short-sighted. Politics is complex, he argues. It's not just about who wins the next election. "The game of politics is much more complicated," Buterin writes. He's concerned this narrow focus could backfire. Politicians might think pro-crypto talk alone is enough to win support. Buterin reckons this approach could lead to neglect of other crucial issues. Privacy rights, governance ethics, and international cooperation could take a back seat. He's not pulling any punches. "By publicly giving the impression that you support 'pro-crypto' candidates just because they are 'pro-crypto', you are helping to create an incentive gradient," Buterin states. He thinks this could dumb down political discourse. Buterin wants the crypto community to think bigger. "If a politician is pro-crypto, the key question to ask is: are they in it for the right reasons?" he challenges. Hoskinson's not buying it. The Cardano founder hit back on X, arguing for pragmatism. He reckons backing crypto-friendly politicians is crucial, given the hostile regulatory environment. "My first goal has always been to keep government out of crypto completely," Hoskinson writes. But where that's not possible, he says the choice is clear: support pro-crypto candidates. Hoskinson's got no time for Buterin's nuanced take. "Politics is a game of cause and effect," he states bluntly. He thinks politicians need to learn that harassing crypto means losing votes. The Cardano chief is pulling no punches. He's dead set against Central Bank Digital Currencies, lawsuits targeting non-custodial wallets, and what he sees as the criminalization of crypto leaders. Hoskinson's not mincing words about the 2024 US election. "A vote for Biden is a vote for the death of the American crypto industry," he claims. He's backing Trump, citing the former president's crypto-friendly stance. The Cardano founder's final salvo? "It has to stop, and it won't if there aren't political consequences. So in 2024, #VoteCrypto," he declares. At the time of writing, Cardano was trading at $0.449.
Binance and Bloomberg bury the hatchet over defamation row
Jul 19, 2024
Bloomberg Businessweek has apologized to Binance and its co-founder Changpeng Zhao. The apology relates to a 2022 story. It wrongly called Zhao the head of a "Ponzi scheme". Modern Media CL, Bloomberg's publisher, said sorry in their 250th edition. They want to fix past mistakes. They aim to boost their reporting standards. Zhao sued Bloomberg after the controversial piece. He said it sparked "hate, scorn, and mockery". This was aimed at him and Binance, a big crypto player. Bloomberg's public apology is a big step. It's trying to rebuild trust. The journal will also donate to Songzi's Special Education Foundation. The exact amount isn't known yet. This shows Bloomberg admits the harm done. Zhao shared his thoughts on X (formerly Twitter). He praised Bloomberg's writers for their skill. But he slammed the paper for unfair coverage. Zhao says Bloomberg cherry-picked negative comments. They ignored praise from other sources. "We're glad the wrongful accusations have been retracted," Binance tweeted. The company seems ready to move on. Zhao's remarks highlight a bigger issue in journalism. There's a tendency to prioritize sensationalism over fair reporting. He says Bloomberg's coverage wasn't just inaccurate. It was unprofessional. His critique is a wake-up call for media outlets. They need to strive for honesty and balance. This is crucial for tricky topics like crypto. The Bloomberg-Binance saga shows the wider impact of journalistic ethics. The fast-moving crypto world needs careful, informed reporting. Sensational headlines can cause real harm. Bloomberg's apology isn't just admitting guilt. It's a fresh commitment to ethical reporting. Media shapes public opinion. Accurate reporting is key for trust in financial institutions and crypto innovators. This episode is a reminder for all journalists. They need to maintain high ethical standards. Reporters are truth gatekeepers. This role is vital in our fast-paced info world. Bloomberg's promises to avoid future errors are positive signs. But the incident should keep all media on their toes. Upholding truth and fairness in reporting isn't optional. It's a must.
Polygon Labs Gears Up for Major Token Overhaul
Jul 19, 2024
Polygon Labs is set to rock the boat in the crypto world. The key developer behind the Polygon Layer-2 network announced a big technical upgrade for September 4. It's gonna replace the current MATIC token with a new POL token. This move is part of Polygon's grand plan. They call it "Polygon 2.0". The company first floated this idea to the community in July 2023. The upgrade's first step is pretty technical. POL will become the native gas and staking token for Polygon's main proof-of-stake chain. Coindesk reported on this development. But that's not all. POL will gradually start securing other blockchains in Polygon's network. This includes something called the AggLayer. Polygon's blog post hyped up the new token. "POL is a hyperproductive token that can be used to provide valuable services to any chain in the Polygon network, including the AggLayer itself," they said. Most MATIC holders don't need to worry. If your tokens are on the Polygon PoS chain, they'll automatically convert to POL. Easy peasy. But there's a catch. Some users will need to do a bit of legwork. If you're holding MATIC on Polygon's zkEVM rollup, centralized exchanges, or the Ethereum blockchain, you'll need to follow specific steps. Polygon's not taking any chances with this upgrade. They've already run tests on July 17. They identified and fixed potential issues before the big day. This shake-up comes at an interesting time. It's happening just before Benzinga's Future of Digital Assets conference on Nov. 19. Big names in the industry will be there, talking about the future of digital assets and blockchain tech. The crypto world is watching closely. Polygon's move could be a game-changer in the Layer-2 race. It's a bold bet, but only time will tell if it pays off.
Ripple's CEO Unveils Strategic Moves Amid Regulatory Hurdles
Jul 19, 2024
Brad Garlinghouse, CEO of Ripple, has revealed the company's strategic direction. He spoke about IPO plans, competition with SWIFT, and ongoing legal battles. The interview with Fortune's Andrew Nusca shed light on Ripple's current position. Ripple is holding off on an IPO. The regulatory environment is tough. Garlinghouse didn't mince words. "We don't have any imminent plans to try and go public," he said. "Why would you have in the current SEC? We're not. I'm not very popular inside the walls of the SEC." Instead, Ripple's taking a different tack. They're buying back shares. "We have done a series of tender offers," Garlinghouse disclosed. "We're in the middle of another tender offer and after we finish this we will have repurchased $4 billion dollar of stock from our shareholders." Garlinghouse took aim at SWIFT. He called out the outdated nature of wire transfers. "The expression wire transfers, the etymology of that is a telegram wire," he pointed out. "It's not technology that has moved with the internet." Ripple's goal? Make money move like information. Garlinghouse explained, "We're trying to let value move the way information moves today." He likened it to email protocols connecting isolated platforms. The company's been in a legal tussle with the SEC. It's been costly. "It was $150 million of legal bills along the way," Garlinghouse revealed. But they won a key battle. XRP was ruled not to be a security. The lawsuit isn't over yet. Garlinghouse is hopeful for a quick resolution. "There are a couple things that I'll call cliffhangers that the judge should rule on imminently," he said. He's expecting a decision within two months. Ripple's fighting on multiple fronts. They're taking on SWIFT. They're navigating regulatory waters. And they're buying back shares instead of going public. The company's strategy is evolving. They're adapting to challenges. Garlinghouse's comments show a firm looking to the future while dealing with present hurdles. XRP, Ripple's cryptocurrency, was trading at $0.58336 at the time of the interview.
Italian State Bank CDP Dives into Blockchain with Digital Bond Issue
Jul 19, 2024
Italy's state-owned bank CDP has taken the plunge into blockchain technology. They've just rolled out their first digital bond on the Polygon network. CDP teamed up with Intesa Sanpaolo, Italy's biggest bank, for this groundbreaking move. The bond is worth €25 million and will mature in 4 months. It's not just a random experiment. This is part of a bigger European Central Bank (ECB) trial. The ECB is testing ways to settle wholesale fiat money on blockchains. The bond pays a fixed annual coupon of 3.633%. That's not too shabby in today's market. They didn't just use any old payment system. The Bank of Italy's TIPS Hash Link solution was the go-to. It bridges the gap between blockchains and traditional payment systems. CDP's finance boss, Fabio Massoli, is pretty chuffed about it. He called it a "significant step" in capital market innovation. This isn't just a one-off. The project aims to set up a new tech model for digital bond issuance. It'll stick to the new legal and regulatory framework. It's not just CDP jumping on this bandwagon. Big players worldwide are eyeing tokenization of traditional financial instruments. Take BlackRock, for instance. The world's largest asset manager kicked off asset tokenization in March. They launched a digital liquidity fund. Why the hype? It's all about the benefits. Lower costs, faster settlements, and more transparency are the big draws. Intesa Sanpaolo's digital assets guru, Niccolò Bardoscia, is all in. He reckons public blockchains are a "powerful technology" for banks. Bardoscia didn't mince words. "Tokenization is establishing a new standard for efficiency and automation in financial markets," he said. He's not stopping at bonds either. Bardoscia thinks this tech shake-up will hit every asset class in the coming years. So, there you have it. Italy's state bank is riding the blockchain wave. It's a brave new world for bonds, and CDP is leading the charge.
Is the Stablecoin Resurgence a Green Light for Bitcoin Bulls?
Jul 19, 2024
The stablecoin market cap has recently flipped positive. This could be bullish for Bitcoin. CryptoQuant's CEO, Ki Young Ju, highlighted this trend on X. The stablecoin market cap just hit a new all-time high. USDT's 30-day change had turned negative earlier. But it didn't stay down for long. The metric has now edged back into positive territory. It's a small increase, but it could signal a turnaround. Historically, rising stablecoin market caps have been good for Bitcoin. Ju's chart shows this pattern over the past year. Why do stablecoins matter for Bitcoin? It's all about their role in the market. Investors use these tokens to park cash. They avoid crypto volatility but stay ready to jump back in. So, stablecoin market cap can show potential Bitcoin buying power. When it goes up, there's more dry powder for BTC and others. This Tether uptick comes as Bitcoin itself is rallying. It suggests fresh capital inflows, not just rotation from BTC. That's a potent combo. It means there's capital waiting on the sidelines and direct inflows into Bitcoin. Tether now makes up about 70% of the total stablecoin market cap. That's a big chunk of the pie. The total stablecoin market cap has hit a new record. It's a sign of renewed investor interest. What's next? Keep an eye on these trends. They could signal more upside for Bitcoin and the broader crypto market. Remember, though: crypto's a wild ride. Don't bet the farm on any one indicator.
TON Foundation Unveils 'Hack-Proof' Bitcoin Bridge
Jul 19, 2024
TON Foundation has introduced a Bitcoin bridge. It allows users to transfer BTC into the TON ecosystem. The bridge will enable the use of Bitcoin in TON's decentralized applications and lending platforms. Jack Booth, TON Foundation's marketing director, explained the security measures. He emphasized the use of trustless architecture. The bridge aims to be secure and transparent. TON's long-term vision is to become a "blockchain of blockchains". They want to integrate top Web3 services into one network. It's a pretty ambitious goal, if you ask me. Blockchain bridges aren't new. They allow token transfers between different networks. This improves interoperability. Users can access features of other blockchains with their native tokens. But bridges have a sketchy history. In 2022, the Ronin Bridge hack resulted in over $600 million in losses. It was a massive blow to the crypto community. Booth claims TON's bridge is different. They've implemented a Simplified Payment Verification Client as a smart contract. It verifies Bitcoin block states directly on TON. All key operations are handled by smart contracts. This includes transaction verification, confirmation, and token issuance. Everything is recorded on the TON Blockchain immediately after confirmation. The bridge is designed to resist private key compromises. No single party creates or holds private keys. TON's Validators generate a joint public key using Distributed Key Generation. They sign transactions with aggregated signatures using the FROST protocol. Booth says this makes the bridge "highly resistant to compromised keys or insider threats". Sounds fancy, right? Private key compromises are no joke. In the first half of 2024, they caused over $400 million in losses across 42 incidents. TON's approach aims to eliminate this risk. Will TON's Bitcoin bridge live up to its promises? Only time will tell. But it's clear they're pulling out all the stops to make it work. Let's see if they can walk the talk.
Oracle Exploit Leaves Rho Markets $7.6M Lighter
Jul 19, 2024
Rho Markets, a liquidity layer and lending protocol on Scroll, has been hit by an exploit. The damage? A cool $7.6 million in USD Coin. Ouch. The hack happened on July 19. A bad actor got their hands on the protocol's blockchain oracle. Cyvers, a blockchain security firm, spilled the beans on X. "Rho Markets has announced that they have detected unusual activity on their platform on #Scroll chain and paused the platform!" Cyvers said. "Root cause of this incident seems to be an oracle access control by a malicious actor!" Rho Markets didn't waste time. They've already hit pause on their platform. Better safe than sorry, right? This hack isn't an isolated incident, it's part of a bigger, messier picture. Just days ago, WazirX, an Indian crypto exchange, got taken for a ride. The damage there? A whopping $230 million in crypto. That's the second-largest crypto heist of 2024 so far. Crypto hackers are having a field day. This week has been their second most profitable in 2024. Let's break it down: July 18: WazirX loses $230 million. The attacker has already moved $149 million worth of Shiba Inu. Talk about a dog with a bone. July 16: Li.Fi protocol gets hit. $10 million in crypto goes poof. It was a smart contract exploit, but they've got it under control now. And if that wasn't enough, players of Hamster Kombat, a viral Telegram-based clicker game, are getting targeted too. Kaspersky, a cybersecurity firm, says phishing attacks and fake crypto airdrops are trying to steal user credentials. It's like whack-a-mole out there. Let's zoom out for a sec. Crypto hacks are a massive thorn in the side of decentralized finance. They're putting a real damper on widespread crypto adoption. The numbers are eye-watering: Since June 19, 2011 (the date of the first known crypto hack), nearly $19 billion in digital assets have been nicked. That's spread across 785 reported hacks and exploits. It's not pocket change, folks. February 2024 saw a real doozy. PlayDapp got hit with a $290 million security breach. That's the biggest single crypto heist in the past two years. Makes you wonder about their security setup, doesn't it? And 2024? It's shaping up to be a banner year for the wrong reasons. The first quarter alone saw $542.7 million in stolen funds. That's up 42% compared to the same period in 2023. At this rate, 2024 might just top 2023 in the crypto theft league. The Rho Markets hack is just the latest in a long line of crypto heists. It's a stark reminder that in the world of digital assets, security can't be an afterthought. It needs to be baked in from the ground up. For now, Rho Markets users are left holding the bag. The platform's paused, and there's no word yet on if or when they'll get their funds back. It's a familiar story in the crypto world, and one that's likely to keep repeating until the industry gets serious about security. As for the hackers? They're probably laughing all the way to their digital banks. But here's hoping their winning streak comes to an end soon. The crypto world could use a break from all this drama. In the meantime, crypto enthusiasts are left with a familiar mantra: "Not your keys, not your coins." Maybe it's time to add another line: "Not your security audit, not your peace of mind." The crypto rollercoaster keeps on rolling. Buckle up, folks. It's going to be a bumpy ride.