President Biden has vetoed legislation concerning crypto regulation that recently made its way through the House and Senate. The legislation aimed to counter guidance issued by the SEC, suggesting that specific companies should categorize crypto assets as liabilities on their balance sheets, even if they are merely holding the assets for clients.

Many, especially millennials and Gen Z, have argued that President Biden appears tone-deaf or out of touch with the youth of today due to his approach on certain policies, such as those related to student debt relief, climate change, and cryptocurrencies. 

Biden Will Not Budge

In a communication to the House of Representatives, President Biden expressed concerns that removing this guidance would impede the capacity of the SEC to enforce protections for investors. He stated that SAB 121 represents the informed technical perspectives of SEC staff regarding the accounting responsibilities of certain firms safeguarding crypto-assets.

Through the Congressional Review Act, he continued, this resolution led by Republicans could unduly limit the ability of the SEC to establish suitable safeguards and address future challenges. President Biden stressed that this could also undermine the broader authority of the SEC on accounting practices.

Uncertainty Looms

President Biden advocated for a regulatory framework balancing consumer protection and innovation, expressing a readiness to collaborate with Congress on comprehensive digital asset regulations. The legislation, led by Republicans, secured passage in the House with 228 votes in favor and 182 against, with 21 Democrats supporting. In the Senate, it passed 60 to 38, with eleven Democratic votes.

Unsurprisingly, the veto coincides with heightened attention on Bitcoin and crypto, including former President Donald Trump and his recent acceptance of crypto donations which occurred around the same time as the sudden reversal on Ethereum ETFs by the SEC, clearing the path for their imminent launch.

PEPE concluded its recent bullish surge with a decline of 15%. The meme cryptocurrency had a strong performance throughout May, with its price rising steeply. However, in the final days of the month, it experienced a downturn.

A Mixed Bag

According to CoinGecko, the asset started trading at approximately $0.0000061 and nearly tripled its value by reaching $0.0000170 at the beginning of this week. Following this peak on Monday, the frog-themed coin underwent a significant drop. Currently, it is trading around 0.0000143, indicating a decrease of over 15% from its high.

At one point in the last day, its price even fell below $0.0000132 before recovering somewhat, though the sustainability of this rebound remains uncertain. Despite this notable decline, investors who bought at the beginning of the month still hold substantial profits, with their holdings up over 134% during this period.

A Potential Rally

As a consequence of the recent downtrend, PEPE has shifted its position on the list of top cryptocurrencies by market capitalization. Previously competing closely with Polygon (MATIC), it now ranks as the 21st largest asset in the sector. However, the gap to Litecoin (LTC) in 20th place is not substantial, raising the possibility of PEPE re-entering the Top 20 if its rebound persists.

Although PEPE experienced setbacks in its rally, data from IntoTheBlock indicates that it remains the most profitable meme coin based on the percentage of holders with unrealized profits. With a holder profitability ratio exceeding 90%, PEPE surpasses other popular meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB). This high profitability ratio may contribute to increased likelihood of selloffs as investors seek to capitalize on their profits, potentially explaining the recent downturn in price.

The Turkish Interior Minister disclosed a significant crackdown on a crypto scamming platform in Ankara on Thursday. The operation targeted an alleged Ponzi scheme that has illicitly obtained over $1 billion in recent years.

Minister Ali Yerlikaya revealed that more than 100 individuals were apprehended in Ankara as part of operation CYBERGÖZ-42, which exposed the fraudulent activities of Smart Trade Coin STC within the country.

Another Ponzi Scheme

The scam allegedly involved enticing investors with promises of high profits and zero risks, purportedly guaranteed by the stop loss feature of the platform and advanced trading bots facilitating automatic transactions.

However, investigations revealed that the platform operated as a conventional Ponzi scheme, defrauding users of billions of dollars. Existing investors were incentivized to bring in new participants, whose investments sustained the scheme. Authorities conducted the operation across 21 provinces of Ankara, detaining 127 suspects for international fraud and money laundering. They seized assets worth 1 billion Turkish Lira, including properties, movable assets, unlicensed firearms, and various cryptocurrencies.

A Fraudulent History

Smart Trade Coin had faced allegations of fraudulent activities since 2021, with numerous complaints by Turkish investors. Despite protests and legal actions, including criminal complaints and estimated losses of $2 billion, no action had been taken.

Victims reported being coerced into taking loans and selling assets under false promises of substantial monthly profits, leading to financial ruin. In 2023, AI Multiple Research flagged Smart Trade Coin as a likely scam due to its unrealistic claims and opaque business practices. Cem Dilmegani, Head Analyst at AI Multiple, criticized the malicious marketing tactics and lack of transparency, concluding that it had operated as a scam all along.

PayPal declared that its PYUSD stablecoin is now operational on Solana (SOL), marking a notable shift with potential advantages for commercial applications. Solana, the blockchain network supporting the fifth largest cryptocurrency, SOL, seeks to rival Ethereum (ETH) by offering a faster platform for developers to craft various applications, including games and various decentralized finance (DeFi) apps.

Fast And Cost-Effective

The main distinguishing feature of Solana lies in its rapid and economical transactions, facilitating quick settlements. This was one of the main points of consideration for PayPal prior to their announcement.

Citing data via blockchain analytics platform Artemis, PayPal highlighted Solana as the most utilized blockchain for stablecoin transfers, positioning it as the premier blockchain for executing tokenized transactions, particularly well-suited for PYUSD in particular.  PayPal Senior Vice President of Blockchain, Crypto, and Digital Currency, Jose Fernandez da Ponte, emphasized that enabling PYUSD on the Solana blockchain advances their objective of establishing a digital currency with a stable value tailored for commerce and payments.

Acquiring PYUSD

PYUSD, a dollar-pegged stablecoin, is collateralized by cash equivalents and short-term treasuries. Launched by PayPal last year, PYUSD is issued by Paxos Trust Co. and currently operates on Ethereum as well. Additionally, Venmo users will soon gain access to purchase PYUSD, with availability expanding gradually over the coming weeks.

The stablecoin, Ethereum-based and backed by cash equivalents and short-term treasuries, was launched by PayPal in August, with Paxos Trust Co. issuing the token. Presently, users can acquire the stablecoin through prominent exchanges such as Crypto.com, Coinbase, and Kraken.

Seems like NFTs are making a comeback, as Cristiano Ronaldo teams up with Binance to unveil a fresh collection celebrating his illustrious career. The move comes as the crypto exchange faces a plethora of legal troubles, including the indictment of former Binance CEO, Changpeng Zhao.

A Matter Of Personal Significance

The collection is being called Forever Worldwide: The Road to Saudi Arabia, this NFT assortment sheds light on pivotal locations in the journey of Ronaldo, including Madeira, Lisbon, Manchester, Madrid, Turin, Saudi Arabia, and Portugal. Each NFT in the collection features unique designs crafted by artists with personal connections to these significant places in Ronaldo's life.

Ronaldo expressed his excitement about this venture, emphasizing how each location holds profound personal significance for him. Collaborating with artists who intimately understand the essence of these locales adds a sentimental touch to the collection, ensuring that these moments remain immortalized as NFTs.

Redefining Fan Engagement

Sarah Dale, Head of Brand Partnerships at Binance, echoed what Ronaldo had to say, highlighting the collaborative effort to encapsulate his extraordinary journey. The NFT collection is poised to redefine fan engagement in sports, offering unparalleled rewards and fostering deeper connections with supporters.

The launch of the new NFT collection will unfold in two stages throughout the upcoming football season, culminating in an auction in June for a select few super rare NFTs. Ronaldo is not the only one involved with NFTs either, as his long-time rival Lionel Messi previously unveiled his first-ever NFT collection which allowed fans to own a piece of his heritage in digital form. This was known as the Messiverse, a unique, one-of-a-kind excursion into the life of the football star, featuring his first appearance on the blockchain and validated NFT collections.

A federal judge has mandated that the United States Securities and Exchange Commission (SEC) cover approximately $1.8 million in attorney and receivership fees linked to the civil case against Digital Licensing, the entity operating as Debt Box.

SEC Forced To Cover Damages

In a filing on May 28th in the U.S. District Court for the District of Utah, Judge Robert Shelby approved an order requiring the SEC to pay about $1 million for attorney fees and costs, along with $750,000 for receiver fees and costs. This directive coincided with the dismissal of the case on the same day, albeit without prejudice.

The judge referenced a ruling in March, wherein a court determined that the SEC had conducted itself in bad faith concerning a temporary restraining order to freeze all assets linked to Debt Box. Subsequently, the firm submitted documents to the court asserting inaccuracies in the information presented by the commission, prompting the potential for sanctions.

The penalties imposed on the SEC mandated the commission to shoulder all attorney fees and costs arising via the improvidently entered ex parte relief. Judge Shelby essentially affirmed that all expenses requested by the defendants were appropriate, excluding a $649 fee.

Regulatory Overreach

The lawsuit against Debt Box in July 2023 accused the company of orchestrating an illicit $50 million crypto scheme. Given the documents presented by the company suggesting inaccuracies and misrepresentations by the commission in seeking a temporary restraining order, many in the crypto community have cited it as a case of regulatory overreach.

The commission is embroiled in ongoing legal battles with several crypto entities, including Binance, Kraken, Ripple, and Coinbase. Numerous lawmakers in the U.S. Congress have advocated for regulatory clarity at the SEC concerning digital assets through legislation such as the Financial Innovation and Technology for the 21st Century Act.

A meme coin conceived through the application of ChatGPT has seen a remarkable surge in value, obtaining a valuation of $638 million within a mere three months. Dubbed Turbo, this meme coin was crafted by digital artist Rhett Mankind, who employed GPT-4 to devise the concept, tokenomics, and smart contract. Originating with a modest budget of $69, the project has blossomed into a prominent meme coin within the crypto realm.

On May 28th, Turbo experienced an unprecedented price surge, hitting an all-time high of $0.009302, propelling its market capitalization to approximately $638 million, as per CoinGecko. Over the last three months, its market capitalization has surged to over $600 million, marking a staggering 2,262% increase.

Meme Coins Keep Coming

Mankind chronicled the development journey on X, engaging the community through polls to decide on various factors such as the name for the project and its mascot. This community-centric approach, coupled with the clever utilization of cutting-edge AI technology, has contributed to overall investor appeal.

Moreover, the triumph of Turbo mirrors a broader trend in the cryptocurrency sphere, where meme coins are rapidly gaining traction. Following a period of subdued activity, the meme coin market is now thriving, with coins like CorgiAI (CORGIAI), Turbo (TURBO), and Grok (GROK) garnering attention.

These AI-fueled meme coins have garnered significant popularity, with investors eyeing them to diversify their portfolios and potentially secure substantial returns.

A Community-Centric Approach

The enthusiasm within the meme coin sector has undoubtedly played a role in Turbo becoming a success. Its community-driven ethos, innovative AI integration, and transparent distribution model have resonated with investors. Data by Santiment indicates a surge in social volume, signaling heightened retail interest. Social metrics often peak prior to a trend reversal, underscoring the importance of monitoring such indicators.

On May 28th, Coinglass data revealed that four of the top ten tokens with the highest open interest (OI) in the crypto leverage market were meme coins.

An expanding OI suggests bullish momentum in the market, as leverage traders initiate more contracts in anticipation of price movement. Turbo is traded across multiple exchanges, including Gate.io, MEXC, and OKX, boasting robust liquidity and trading volumes. Nevertheless, investors should remain cognizant of the associated risks. The hype surrounding meme coins can wane, potentially resulting in significant losses when demand diminishes.

Financial regulators in South Korea have enacted measures preventing universities when it comes to setting up corporate accounts for cryptocurrency transactions. Consequently, universities face challenges converting crypto donations by specific crypto firms into fiat currency.

According to local news source Chosun Ilbo, authorities express concerns that corporate accounts, unlike individual ones with verified identities, could be exploited for money laundering due to the absence of personal authentication.

Tension And Friction

The Korean Financial Intelligence Unit (KoFIU) and the Ministry of Education are anticipated to maintain their stance against universities establishing corporate accounts for crypto transactions. This decision follows various requests made by multiple local universities to establish corporate accounts for cash conversion subsequent to receiving substantial cryptocurrency donations.

A senior official representing the financial authorities rationalized the decision, stating that granting universities exceptions would be unjust to other businesses. Moreover, enabling such accounts for all corporations would pose significant money laundering risks.

A Silver Lining

Local regulators and the South Korean Ministry of Education plan to discourage universities regarding the acceptance of such donations going forward. Nevertheless, they may offer support to universities already in possession of such donations.

Depending on various factors including the amount involved, there is consideration for establishing a mechanism to convert existing crypto holdings into fiat currency. This indicates a potential remedy for universities grappling with previously received cryptocurrency donations.

South Korea has also recently implemented a ban on cryptocurrency donations, affecting charities and potentially impeding their fundraising endeavors. This move comes despite the growing popularity of Bitcoin (BTC) and other digital currencies in the country.

U.S. financial markets paused for Memorial Day, leading to a relatively quiet beginning to the week for most crypto markets. However, Chainlink (LINK), the 14th largest cryptocurrency by market cap, experienced significant growth after surging more than 10% in the past day, reaching a trading price of $18.75.

The Reason Behind The Surge

Chainlink focuses on providing decentralized oracle services. Oracles act as bridges between blockchain-based smart contracts and external data sources. They allow smart contracts to interact with real-world data, enabling a wide range of use cases such as DeFi, insurance, gaming, and supply chain management.

LINK serves as the native token for Chainlink, an oracle project operating on Ethereum, facilitating secure information transfer within and between blockchains. This surge is likely attributed to optimism among LINK holders and supporters following the announcement that Chainlink would be co-presenting with Swift, an international payments platform, at the recent Consensys conference in Austin, Texas.

Still A Ways To Go

The Chainlink network consists of nodes that retrieve data via off-chain sources, such as APIs, and deliver it securely to smart contracts on various blockchain platforms, including Ethereum, Binance Smart Chain, and others. This process ensures the reliability and accuracy of data inputs, crucial for the execution of smart contracts.

The aforementioned collaboration, initiated last fall, demonstrates the integration of existing infrastructure with blockchain technology. Sergey Nazarov, co-founder of the Chainlink project, expressed optimism for Ethereum and digital assets following the recent approval of Ethereum exchange-traded funds (ETFs), indicating a broader trend towards tokenization.

The recent successes of Chainlink include progress across nine different blockchains and its involvement in a tokenization pilot with DTCC, JP Morgan, and BNY Mellon. Despite these achievements, LINK still has a significant distance to cover, with a more than 64% climb needed to reach its 2021 all-time high of $52.70.

As of May 27th, 2024, the Bitcoin (BTC) white paper has been reposted on the Bitcoin.org website subsequent to Craig Wright unsuccessfully trying to establish himself as Satoshi Nakamoto, the pseudonymous creator of the protocol. In 2021, Wright successfully sued Cobra, the anonymous group overseeing the website, for copyright infringement, resulting in the removal of the white paper PDF.

The Context

Hennadii Stepanov, the maintainer of Bitcoin.org, declared the reinstatement of the Bitcoin white paper by providing a link to the PDF on X. Due to legal constraints, Bitcoin.org had to limit access to the white paper for users based in the UK. Instead, it showcased a significant quote by Satoshi Nakamoto, which read that it takes advantage of the nature of information being easy to spread but hard to stifle.

Wright achieving legal victory in 2021 stemmed via his lawsuit against Cobra, the anonymous entity managing the website, for copyright infringement, which led to the removal of the white paper PDF. Wright prevailed by default as Cobra opted not to contest the case, resulting in Cobra paying £35,000 to Wright in legal fees. Wright had applied for U.S. copyright registration for the Bitcoin white paper in 2019.

In 2023, Wright initiated legal action against 13 Bitcoin Core developers and various companies, including Blockstream, Coinbase, and Block, for copyright infringements concerning the Bitcoin white paper, its file format, and database rights to the Bitcoin blockchain.

Justice Prevails

The Bitcoin Legal Defense Fund reacted, highlighting the pattern of abusive lawsuits against notable Bitcoin contributors. According to the defense fund, these lawsuits discourage development due to the associated time, stress, expenses, and legal risks.

However, the aforementioned copyright victory is now nullified, as his assertions of being Satoshi Nakamoto and the author of the white paper have been definitively debunked. The comprehensive ruling was issued in a case brought against Wright by the Crypto Open Patent Alliance (COPA), a coalition of prominent companies. COPA alleged that Wright engaged in an intricate scheme of forgery and deceit to fabricate evidence supporting his claim of being Nakamoto.

As a result, all of his assets, valued at $8.4 million, were frozen. The Bitcoin white paper is now subject to an MIT open-source license, permitting anyone to reuse and modify the code for any purpose.

Over the weekend, a series of hacks affected several X accounts owned by crypto influencers and celebrities, leading to the promotion of various coins and resulting in temporary price increases.

One of the main targets was GCR, whose account was breached on May 26th. Following the breach, the hacker posted promotional content for ORDI and Luna2.0, causing brief price surges of 6% and 274% for the tokens. Observers remarked that instead of promoting a lesser-known microcap coin for potentially higher gains, the hacker opted for ORDI, which already boasts a market cap of $856 million.

Not Isolated

Udi Wertheimer, a Bitcoin developer and supporter of Ordinals, cautioned that the GCR incident might not be an isolated occurrence. It seems to be part of a wider campaign targeting celebrity X accounts, including mumble rapper Rich the Kid and media personality Caitlyn Jenner.

For Rich the Kid, a new token named $RICH appeared on the Solana meme coin creation platform pump.fun. Despite no official confirmation by Rich the Kid or their management team, the post has been removed. The current market cap for this coin remains stagnant at $144K, according to data by dexscreener.

Conspiracy Looms

Concerning the Jenner account, a meme coin dubbed $JENNER was also advertised, raising the market capitalization of the coin to $25 million, based on aggregated data by Raydium and GeckoTerminal.

Despite several videos by Jenner reassuring followers of the authentic posts, many industry experts suspect the account has been compromised. Intriguingly, the crypto wallet address shared by Jenner matches the one used by adult content creator Kazumi, whose account was hacked on May 20th to promote the ZUMI coin.

As of this writing, no information about the identity of the threat actor has been disclosed, and no particular entity has claimed responsibility for the hacks. Whether these incidents are connected or the work of a single hacker or group remains undetermined.

LayerEdge: Embarking on its journey with a promising Pre-Seed stage, LayerEdge secured support from the esteemed Blockchain Founders Fund, setting the stage for future growth and innovation.

MetaLeX: Stepping into the Seed stage with a remarkable $2.75M raise, MetaLeX, led by Adam Cochran and endorsed by Jake Brukhman, is poised for success with backing from cyber Fund.

Cysic: With an impressive $12.00M raise in the Pre-Series A phase, Cysic, endorsed by Mario Laul and CJ the "Doughnut", is charting a path towards pioneering cybersecurity solutions, supported by HashKey Capital.

Ather Digital: Recent activity saw Ather Digital making strategic moves, indicating exciting developments in the digital finance realm.

Unlockit: Making waves in the Pre-Seed stage with a $1.52M raise, Unlockit, endorsed by Sandeep Agg, gained support from Eaglestone Group, signaling bright prospects in unlocking digital potentials.

Alphaledger: Securing a substantial $9.50M in Series A funding, Alphaledger, endorsed by Maya Zehavi and HTX, is poised to drive innovation forward with backing from EJF Capital.

Plume Network: Positioned for growth in the Seed stage with a $10.00M raise, Plume Network, supported by Haun Ventures and endorsed by The Crypto Dog and Michael Arrington, is set to revolutionize the digital space.