Reviewing The Latest On US Crypto Policy
The Daily Crypto Update for Institutional Investors
US Presidential Candidate Donald Trump Described Himself As The ‘Crypto President’ At A Silicon Valley Fundraiser Hosted By David Sacks and Chamath Palihapitiya - We Review The Latest Developments Regarding Crypto Policy In The US
‘Biden-Gensler crusade against crypto will grind to a halt within one hour of a second Trump administration…:’ Jacob Helberg, an adviser to data analytics provider Palantir, told Reuters Trump reiterated his friendliness to crypto at the event. Heldber characterized the event as ‘proof that president Trump’s campaign is creating a generational realignment among technology founders ... and makes him more competitive in even the most traditionally blue communities.’ According to the New York Post, the event, held at David Sacks’ mansion, was attended by the Winklevoss brothers and ‘a handful of employees from Coinbase.’ Ryan Selkis, the founder of crypto data site Messari, told FT Trump spoke about AI, energy and crypto and that the event ‘felt like a particularly wild moment in Silicon Valley politics.’ Selkis added that ‘[t]he blue wall has been breached.’
President Biden ultimately vetoed SAB 121’s repeal: In May numerous dynamics had given increased expectations the Biden administration would soften its stance towards SAB 121. These dynamics included the extent of bipartisan support for two pieces of crypto legislation, the repeal of SAB 121 and the passing of FIT21 in the House. Additionally, the seemingly last minute policy adjustments towards the spot ETH applications spurred hope the Biden administration would reverse the previously announced plan to veto the SAB 121 bill. This expectation, however, did not pan out. Despite the veto, there are signs that the Democrats’ stance towards crypto has softened. In May, days ahead of the veto, The Block reported the Biden election campaign had reached out to crypto actors, seeking guidance on ‘crypto community and policy.’ The Block’s reporting has not been confirmed by other outlets. In addition, key Democrat politicians, like former Speaker of the House Nancy Pelosi, and Senate Majority Leader Chuck Schumer voted in favour of FIT21. This was a break from politicians in the party who had taken firmly anti-crypto policies, like Elizabeth Warren and Maxine Waters. In a statement following the vote, Pelosi said crypto ‘is already integrated into our economy and will only grow in significance in the years to come.’ She also pointed out that ‘[m]any jobs in my Bay Area community are dependent on this industry.’
FIT21 heads to the Senate: Ahead of the vote of FIT21, the Biden Administration issued a statement indicating it would not veto the bill, but ‘opposes passage.’ The statement indicated the White House is eager to work with Congress on crypto regulation, ‘building on existing authorities,’ referring to impacts the bill could have on the SEC’s authority. The changes of FIT21 being passed this year remain unclear. However, the legislation is part of several bills making their way through the US system, including the Lummis-Gillibrand Payment Stablecoin Act.
CRYPTO HEADLINES
The Solana Foundation removed several validators from its program for engaging in ‘sandwich attacks’ on the network. These attacks manipulate transaction orders in order to advantage certain trades. - link - @Cointelegraph
Bakkt (NYSE BKKT) engaged a financial advisor to explore potential strategic options, including a sale or breakup, sources tell Bloomberg. This consideration follows the launch of BakktX, a crypto-focused network, in collaboration with Crossover Markets. In March, the company appointed Andy Main as its President and CEO, succeeding Gavin Michael who stepped down to pursue other opportunities. - link - @BKKT
Ethereum-based DeFi venue Loopring suffered a hack, resulting in a USD ~5M loss of crypto. The incident involved a breach that permitted a hacker to sidestep the protocol's Official Guardian two-factor authentication system. Loopring has since halted its Guardian and 2FA services and is working with authorities and cybersecurity specialists to investigate. - link - @TheBlock
South Korea's Financial Services Commission issued new guidelines for regulating NFTs. The guidelines classify certain NFTs as cryptocurrencies based on their characteristics, such as mass production and exchangeability. This move precedes South Korea's first crypto-focused law, set to take effect on July 19, aimed at enhancing market integrity and protecting users. - link - @TheBlock
HSBC's China division initiated e-CNY services for businesses. The move makes it the first foreign bank in China bringing digital yuan facilities to corporate as well as individual clients. The bank added it conducted e-CNY transactions for an educational group across various cities. - link - @TheBlock
Ripple is expanding its collaboration with the National Bank of Georgia in an attempt to digitize the local economy. The partnership builds on Ripple's role as the technology partner in Georgia's pilot CBDC project, the digital lari. - link - @Cointelegraph
TOP ARTICLES
Bloomberg: Bitcoin Rally And ‘Short Memories’ Reignite Everything In Crypto
South China Morning Post: Binance’s BNB Crypto Token Surges After Founder Zhao Starts Stint As Richest US Inmate
OPEN-SOURCE RESEARCH / LONG-READ OF THE DAY
Inside Silicon Valley’s $12M Trump Fundraiser With Winklevoss Twins And Venture Capitalists, New York Post, June 7, 2024
The New York Post provides details from Trump's Silicon Valley fundraiser.
CRYPTO MULTIMEDIA
There's 'Definitely' A Political Shift Related To Crypto: VanEck's Digital Assets Research Chief, CNBC, June 8, 2024
Matthew Sigel, head of digital assets research at VanEck, discusses what he perceives as changing sentiment towards crypto regulation in the US.
CHART OF THE DAY
BTC continues to dominate broader interest in the crypto space, especially compared to other digital assets...
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