Ripple Chief Legal Officer Criticizes Regulators On Crypto Policies

According to a recent report, the crypto exchange aims to launch this new venture next year, as disclosed by an individual familiar with the intentions of the company.

A Kraken spokesperson stated that the exchange is continually exploring ways to support the widespread adoption of cryptocurrencies, and that while the company cannot comment on speculations or rumors, plenty of work is being done to expand and improve pre-existing offerings.

The report also indicated that the expansion into US-listed stocks and ETFs would be accessible in both the United States and the United Kingdom. Eligible customers will be able to activate this service, enabling them to access a combination of cryptocurrencies, stocks, and ETFs.

Kraken has pursued the necessary regulatory approvals in the UK and has reportedly applied for a broker-dealer license with the Financial Industry Regulatory Authority (FINRA) in the United States.

The reported expansion into US stocks coincides with Kraken wanting to extend its presence in Europe. The exchange recently obtained an EU e-money institution license via the Central Bank of Ireland and a virtual assets services provider license by the Bank of Spain, indicating its commitment to becoming a part of the thriving local fintech sectors in both countries and its broader investments in Europe.

Vitalik Buterin, one of the Co-Founders of Ethereum (ETH), recently proposed potential alterations to the Ethereum protocol aimed at diminishing centralization. The post comes shortly after Vitalik saw his X (formerly Twitter) account be hacked by an unknown source, a move which resulted in many unsuspecting followers being scammed.

Looking Toward The Future

In his post, Buterin deliberates upon the possible repercussions of integrating additional functionalities into the ETH network. He explores the intricate trade-offs involved in incorporating specific features directly into the protocol as opposed to relegating them to other layers within the ecosystem. Among the protocols under scrutiny are the account abstraction protocol ERC-4337, ZK-EVMs, code precompiles, private mempools, and liquid staking.

Notably, Buterin exhibits a strong inclination towards integrating certain protocols, such as ERC-4337, directly into the code of Ethereum rather than relegating them to private mempools. Nevertheless, he acknowledges the intricate balance of advantages and drawbacks associated with each feature, which will certainly continue to evolve over time.

The Future Of Staking On Ethereum

The blog post also focused largely on the concept of liquid staking, a significant aspect of Ethereum. Presently, Lido, a liquid staking pool, exerts control over more than 32% of the total staked ETH. Despite the distribution of this stake across various validators, Buterin raises concerns regarding the concentration of liquid staking providers within the Ethereum network.

Rather than relying solely on ethical persuasion to encourage a more diverse group of staking providers, Buterin suggests that the Ethereum protocol could undergo various modifications to enhance the overall decentralization of liquid staking operations.

Buterin proposes potential measures, including altering the procedures employed by the liquid staking provider RocketPool or endowing additional governance powers to a randomly selected panel of smaller-scale stakers. He concluded the post by emphasizing the complexity of these issues, which are bound to change going forward.

Nevertheless, with competitors like Cardano (ADA) hot on its trail, Ethereum will need to make the aforementioned changes as soon as possible to maintain its position as the second biggest crypto in terms of market capitalization.

In a noteworthy development, Google Cloud has partnered with Polygon (MATIC), taking on the role of a decentralized validator for the Polygon Proof of Stake network.

Google Cloud, renowned for its role in empowering widely-used platforms such as YouTube and Gmail, is now leveraging its robust infrastructure to support the fast and cost-effective Polygon protocol, which shares similarities with Ethereum.

Back in June, Polygon acknowledged the importance of off-chain storage as a means to enhance decentralization. Official communication from Google Cloud also confirmed the collaboration, accompanied by a video detailing their joint efforts with the Polygon network.

Despite the persistent challenges posed by the volatility and unpredictability as well as the regulatory scrutiny from the US government towards the crypto market, the partnership between Google Cloud and Polygon Labs underscores the overall increasing interest in the Web3 sphere, a trend that has been growing since late 2022 and continues into 2023.

This collaboration has been ongoing since April of the previous year when both companies entered into a cooperative agreement, marking the commencement of a multi-year partnership. Notably, Polygon Proof-of-Stake nodes have been made accessible through the Google Cloud marketplace, with Polygon being a part of Google Cloud datasets since 2021.

The SEC, responsible for regulating financial markets in the United States, recently delayed the ARK Invest and 21Shares Ethereum Spot ETF application, which was submitted jointly on September 21st, 2023. A final decision on these applications is not expected until early November.

This is seen as a significant step backward despite many believing that the SEC had begun steadily adopting a more flexible and understanding approach when it came to the crypto industry.

Representative Warren Davidson stated that the seemingly tyrannical rule of Gary Gensler underscores two primary concerns, namely an issue related to Gensler himself and a structural problem within the SEC. To address these issues, Davidson introduced the SEC Stabilization Act, which seeks to remove Gensler and reorganize the SEC.

During a House Financial Services Committee hearing, Gensler faced substantial scrutiny and criticism, particularly regarding the SEC and its initiatives concerning disclosures related to climate and crypto regulation. Republican representatives concentrated their inquiries on these areas, expressing reservations and seeking clarification by Gensler.

Davidson also questioned Gensler and his actions concerning the Environmental, Social, and Governance (ESG) disclosure rule, asserting that his claims of respecting the authority of Congress contradicted his actual conduct.

Notably, Congressman Davidson had previously advocated for the removal of Gensler through the Stabilization Act in June. This proposed bill aimed to transform the SEC into a more democratic institution, rather than being solely led by a single authoritative Chairman.

On behalf of the Web3 community, we would like to extend our warmest congratulations to the companies that announced their success in fundraising between 19th September and 25th September 2023. We are thrilled to see such tremendous support from all involved. Well done! 

Afterparty raised $9M - Afterparty is positioning itself to become the first go-to NFT ticketing site that offers fans extra perks. It is an all-in-one event ticketer and organizer, having hosted the first music festival to be fully-ticketed with NFTs back in March 2022.

GVRT raised $7.1M - The team is planning to launch the testnet in Q4 of 2023, with the mainnet slated for Q1 of 2024. Gravity will become the leading derivatives trading protocol on zkSync, just like GMX on Arbitrum and Dydx, which originated from Starkex.

jiritsu.network raised $10.2M - Jiritsu also unveiled today its asset tokenization platform &mdash Tomei RWA. The company said that the Tomei platform offers assurance in asset management through its proprietary attestation system.

Onramp.money raised an undisclosed amount - Onramp is a fiat-to-crypto payment gateway which helps users seamlessly convert fiat currency to desired cryptocurrency. It is a fiat-to-crypto onramp and offramp solution provider.

Fuze raised $14M - The largest Seed investment in a digital assets startup in the history of the Middle East and North Africa. Fuze enables banks, fintechs or enterprises to offer regulated digital assets products to customers through native apps.

Freatic raised 3.6M - Bridging the gap between individuals with untapped knowledge and actors who can take advantage of these opportunities. The raised funds will be used to construct building blocks for trustless exchanges.

CoinScan raised an undisclosed amount - CoinScan has been under development for over two years, and recently completed beta testing.

Mesh raised $32M - Mesh will use the new cash, which brings its total raised to date to $32 million, to further develop its tools for deposits, payments and payouts, as well as support its go-to-market operations

Virtualness raised $8M - Virtualness is a mobile-first platform designed to help creators and brands navigate the complex world of Web3.

Northern Data Group raised $8.5M - Northern Data Group provides not only blockchain but AI computing services. Through the partnership, Tether and
Northern Data Group will collaborate on AI, communication and data storage initiatives.

Essential raised 5.15M - Essential is trying to rewire transaction supply chains in crypto to minimize value extraction by what it describes as &ldquorent-seeking intermediaries," for the benefit of users.

To stay updated with news about future Web3 Funding Rounds, Follow
CryptoWeekly
 

The plan proposed by Celsius to use Coinbase as a distributor for international customers has faced opposition from the United States Securities and Exchange Commission (SEC).

The SEC is against this plan due to the belief that it exceeds the scope of distribution agency services, involving aspects of brokerage and master trading services which raise many of the concerns presented in the SEC District Court case against Coinbase.

Celsius initiated bankruptcy proceedings in July of the previous year. The regulatory agency had filed a lawsuit against the US based cryptocurrency exchange in June of this year, alleging that its staking service violated US securities laws and that it operated as an unregistered broker.

Furthermore, in July, the SEC took legal action against both Celsius and its former CEO, Alex Mashinsky. In its lawsuit, the SEC accused the bankrupt cryptocurrency lender of deceiving investors and generating billions of dollars through unregistered and deceptive offerings and sales of cryptocurrency securities.

The bankruptcy restructuring proposal put forth by Celsius, contingent upon Court approval, could potentially involve Coinbase in providing brokerage services. However, the SEC pointed out that the Celsius debtors have stated that they do not intend for Coinbase to offer brokerage services to them, despite certain statements suggesting otherwise.

The regulatory agency also emphasized that it retains the right to object if Celsius does not address the specific role that Coinbase will play going forward. In response to this filing, Coinbase Chief Legal Officer Paul Grewal said that the exchange is pleased to collaborate with Celsius to distribute cryptocurrencies to its customers.

Paul added that he is curious as to why the SEC opposes a reputable US public company assuming this responsibility, and that he eagerly awaits discussing this matter with the bankruptcy court and fulfilling the vital role Coinbase has in compensating Celsius customers.
 

The Google Cloud division, within its BigQuery data analytics service, has incorporated backing for 11 additional blockchains. These blockchains encompass Avalanche, Arbitrum, Cronos, Fantom, Near, Optimism, Polkadot, Polygon, Tron, as well as the test networks Polygon Mumbai and Ethereum Goerli.

Users now have the capability to perform detailed queries on the blockchain, like evaluating the quantity of minted NFTs or comparing transaction fees, among these blockchain networks. Integration with end-user applications such as Looker and Google Sheets is also accessible.

BigQuery, a Google Cloud-managed data warehouse service, empowers users to execute SQL-like queries on extensive datasets. In 2018, Google Cloud initiated its blockchain data services in BigQuery, aiming to provide developers with access to on-chain data from Bitcoin and Ethereum.

The subsequent year, it augmented support for an additional 6 chains: Bitcoin Cash, Dash, Dogecoin, Ethereum Classic, Litecoin, and Zcash. Following the recent inclusion of 11 more chains, the cumulative tally of supported networks reaches 19.

Aside from BigQuery, Google Cloud delivers Web3 infrastructure services, including node hosting and the management of validator operations, for various blockchains on its platform, most notably Ethereum, Solana, and Aptos.

Coinbase is urging the broader US crypto community to encourage their Congress representatives to establish clear and sensible legislation for the cryptocurrency industry. The company is emphasizing that the existing approach taken by regulators is hindering innovation and jeopardizing the position of the country as a global technological and financial leader.

A Fresh Start

To rally support for unambiguous cryptocurrency laws, Coinbase has initiated a new campaign targeting the 52 million crypto holders in the United States. These crypto owners, predominantly composed of Gen Z and Millennials (60%), individuals with incomes below $100,000 (75%), and members of racial minorities (41%), represent a younger and more diverse demographic than the overall US population.

Furthermore, a survey conducted in the fall of 2022 revealed that 55% of voters in key American states (Nevada, Ohio, Pennsylvania, and New Hampshire) are less likely to support candidates who do not endorse crypto and Web3.

Another survey found that 72% of Americans aged 18 to 34 believe that cryptocurrency provides direct control over personal assets, and an equal percentage agree that digital assets are the future of finance. Coinbase wants to unite these 52 million crypto holders into a potent force to advocate for transparent cryptocurrency regulations as the US approaches its 2024 elections.

Coinbase Leading The Charge

As part of its strategy, Coinbase is backing the Financial Innovation and Technology for the 21st Century Act (FIT21). This bill, anticipated for a vote in the upcoming fall, proposes to elevate the regulatory authority that the CFTC has over the industry, surpassing that of the  SEC, which has often faced criticism for its enforcement driven regulatory approach, with numerous crypto companies and stakeholders accusing it of exceeding its mandate.

In August 2023, Coinbase introduced an independent advocacy grassroots movement called the Stand with Crypto Alliance, dedicated to advancing sensible crypto innovation and policy. Since its launch, over 100,000 individuals have expressed their support for the organization, with plans to engage the 52 million crypto holders in the US.

Over a 14 month campaign, the Stand with Crypto Alliance will concentrate on nine crucial states, namely California, Georgia, Arizona, Pennsylvania, Ohio, Wisconsin, Illinois, Nevada, and New Hampshire. The advocacy efforts commenced with digital and outdoor advertisements in Washington, DC, starting on September 19th.

Bybit will halt the acceptance of new account registrations starting October 1st and cease accepting deposits and other services for existing customers by October 8th. This decision aligns with the impending implementation of new regulatory measures for crypto firms, set forth by the UK Financial Conduct Authority (FCA).

Bybit has therefore informed its users of its intent to suspend operations in the UK next month to ensure compliance with these fresh regulations.
The action is prompted by the introduction of updated guidelines concerning marketing and communications for crypto businesses, as outlined in the June 2023 Policy Statement (PS23/6) titled Financial Promotion Rules for Crypto assets.

Bybit, in its announcement, mentioned that this suspension will enable them to channel their resources towards meeting the new regulatory requirements. Beginning October 1st, no new customer registrations will be permitted, and services for existing customers will be discontinued by October 8th.

For current Bybit customers, this effective date will mean they cannot make deposits, create new contracts, or increase their positions. Nonetheless, users will retain the ability to reduce or close their positions and withdraw funds.

All UK customers have been advised to take necessary steps to manage and gradually unwind their positions. The timeline for this action will remain in effect until January 8th, 2024, at 8:00 am UTC. Bybit also noted that after the specified deadline, any open positions will be liquidated, and the resulting liquidation funds will be available for withdrawal.

Grayscale Investments, a reputable and well established digital asset management firm, has submitted an application to the Securities and Exchange Commission (SEC) for a new exchange-traded fund (ETF) designed to track Ethereum (ETH) futures.

This particular ETF has been officially registered under the Securities Act of 1933, which oversees commodities and spot Bitcoin (BTC) ETFs. Notably, Grayscale had previously sought approval for a distinct ETH futures ETF under the Investment Company Act of 1940.

In any case, this development holds significance as the SEC has already given the green light to Bitcoin futures ETFs that operate under both sets of regulations, hinting at a more permissive stance towards Bitcoin futures in general.

The recent filing by Grayscale comes after a court ruling which determined that the SEC refusing to grant the company its request to transform its Bitcoin trust into a spot Bitcoin ETF was indeed unwarranted. The court reasoned that the proposed BTC ETF closely resembled approved futures-based BTC ETFs.

On behalf of the Web3 community, we would like to extend our warmest congratulations to the companies that announced their success in fundraising between 12th September and 18th September 2023. We are thrilled to see such tremendous support from all involved. Well done! 

Layer N raised $5M - Layer N is focused on increasing transaction throughput and latency potential to replicate the speed of traditional financial markets on the blockchain.

portals.fi raised $2.5M - Portals is a yield and protocol aggregator for transaction bundling, any-to-any swaps, and real-time data. Taking advantage of the lego-like composability of DeFi, Portals allows anyone to create and bundle complex actions into a single transaction with ease.

Club3 raised $3M - Club3 has completed a seed round of $3M. Club3 are also launching the first round of a $200,000 partner grants program.

IMMIX raised $2.7M - IMMIX specialising in the creation of cutting-edge automated trading systems by leveraging sophisticated mathematical models and computational techniques, IMMIX are committed to pushing the boundaries of what is possible in the Web3 trading landscape.

Movement Labs raised $3.4M - Financial support will empower Movement Labs to expand the implementation and advancement of Move, a programming language specifically designed for smart contracts.

Gilded raised $3.25M - Gilded promotes cryptocurrency adoption with simple, innovative tools for businesses. Gilded makes it easy for businesses to manage crypto payments by providing a comprehensive invoicing, bookkeeping, and reporting.

Fipto raised 16.01M - Fipto is a global B2B payments and treasury management solution that leverages blockchain technology for fast, cost-effective, and transparent cross-border payments.

Topic.Market raised $2M - On Topic.Market, you can not only voice your opinions on trending topics from cryptocurrency trends to breaking news, but also seize the opportunity to capitalize on them.

ZORIXchange raised an undisclosed amount - ZORIX with an active community of 100k community is dedicated to driving widespread crypto adoption by offering fiat-to-crypto and crypto-to-fiat services in USD, EUR, and British Pound, with plans for further expansion.

Only Dust raised 3.19M - OnlyDust has become the largest coordinator of open source developers in the Web3 ecosystem, supporting 500 developers from 17 countries working on ZK rollups, privacy, decentralised finance and beyond.

ProsperEx, raised an undisclosed amount - ProsperEx is a universal decentralized exchange, blending RWA and AI, designed to empower leveraged trading across all assets with unparalleled security and user experience.

To stay updated with news about future Web3 Funding Rounds, Follow
CryptoWeekly

 

Binance US has been under the spotlight ever since the United States Securities and Exchanges Commission (SEC) initiated legal action against it. This legal battle resulted in a decline in trading volume for the firm and significant departures.

In the midst of the ongoing drama, the crypto exchange successfully defended itself against the SEC on September 18th, 2023. The SEC had previously requested an investigation into Binance US, alleging that the custody platform Ceffu was closely linked to Binance and used to transfer the funds of US customers overseas, thus violating their prior agreement.

The SEC specifically sought access to the records and communications of Binance US with its wallet custody service providers. In response to these developments, the crypto exchange argued that the request was excessive, unnecessary, and inconvenient.

Ultimately, District Judge Zia Faruqui denied the request for an inspection. However, the court did instruct the crypto exchange to provide additional documentation and expressed doubts about whether Binance US was indeed in control of its assets.