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.

The Boston Consulting Group predicts that the tokenization of tangible assets could emerge as a $16 trillion industry in the near future. However, its influence extends beyond mere financial statistics and can offer novel solutions to real-world challenges, particularly benefiting individuals in developing nations.

During a panel moderated by Kristina Lucrezia Cornèr at the Swiss Web3 Fest, numerous industry professionals provided insights into the practical application of tokenization to real world assets, showcasing its potential to enable unprecedented solutions.

Tokenization Could Be The Answer

Christoph Mussenbrock, representing the decentralized insurance protocol Etherisc, discussed how tokenization solutions can positively impact agricultural production. He highlighted that Kenyan farmers now receive prompt payouts, even if their yields fall short of expectations, in stark contrast to the traditional insurance sector, where waiting periods of up to six months prevail. Such delays can often significantly jeopardize the livelihoods of families.

According to Mussenbrock, traditional insurance companies are increasingly seeking on-chain solutions, marking a significant shift in the industry. He emphasized that this transition is already underway.

Stephan Rind, a member of the BrickMark Group, similarly highlighted how asset tokenization can grant access to financial products that are currently inaccessible to the majority, thus contributing to bridging wealth disparities. Rind stressed the potential for financial inclusion, democratization of capital, and the tokenization of a wide array of assets in various categories, be it real estate or livestock.

A Bright Future

Carlos Mazzi, representing Finka, recounted the experience of tokenizing La Pradera, a 3,000 hectare cattle ranch in Bolivia housing over 3,500 cows. They tokenized the value creation process, converting grass into protein and eventually cash. Mazzi acknowledged the challenges in achieving this, including financial engineering and legal frameworks. However, he noted that market adoption has been slower than expected, attributing it to systemic issues.

Moreover, Rind expressed confidence that central bank digital currencies (CBDCs) will surpass adoption hurdles. He believes CBDCs will provide wallets to billions worldwide, and regulatory changes will facilitate more capital flowing into asset tokenization.

Jose Fernandez, representing Tokengate, also shared an optimistic perspective, predicting that within a decade, most individuals will engage with tokens daily, whether they are consciously aware of it or not. In any case, the world is certainly changing and tokenization will play a huge part in that paradigm shift going forward.

Following the departure of Binance US CEO Brian Shroder, there has been significant apprehension surrounding the legal challenges plaguing the company in the United States.

The SEC recently accused Binance US of refusing to cooperate in a comprehensive investigation. Federal regulators were mostly concerned about Ceffu, a custody service linked to Binance US. Ceffu emphasized its independence however, stating that it has always functioned as a completely separate wallet solution provided to institutional clients.

Breaking his silence on the matter, Binance CEO Changpeng Zhao (CZ) responded to the recent speculations. CZ acknowledged the recent leadership changes within the American branch of the exchange and expressed his belief that Shroder deserved a break following his notable contributions to the company.

CZ extended his gratitude to Shroder for his service and refuted allegations that he left his position to evade the legal issues facing the company. Nevertheless, CZ announced the appointment of Norman Reed, presently serving as the interim CEO, as the new official CEO of Binance US.

CZ also attributed this decision to the evolving landscape of the crypto industry, emphasizing the increasingly stringent regulatory environment. He highlighted the previous roles Reed held at the SEC, New York FED, Ripple, and DTCC, affirming his suitability for the role.

Despite all the controversy surrounding Binance, which continues to be the largest crypto exchange in the world, CZ urged everyone to disregard the recent fear, uncertainty, and doubt (FUD) and encouraged ongoing global development while adhering to the necessary regulations.

Staking plays a pivotal role in fostering decentralization within the cryptocurrency industry, and Cardano looks to be at the forefront of this movement as one of its early adopters.

With more than 1.3 million stakers on the network, the Proof-of-Stake (PoS) chain and its ecosystem are continuously innovating to enhance the accessibility and decentralization of network participation and staking.
The latest addition to Cardano is a unique feature provided via Lace Wallet, namely multi-pool delegation.

Using a distinctive approach, Lace Wallet generates multiple stake keys within the same account, creating a fresh address for each pool with a predefined amount of ADA tokens the user wishes to stake. This allows ADA holders to simultaneously stake their tokens in up to five distinct pools, thereby diversifying their stake across various Stake Pool Operators (SPOs) within the Cardano network.

This move fosters a more decentralized network with a wider array of block creators. From the perspective of SPOs, the new feature grants them the ability to attract more users, as they are no longer constrained to support just one pool.

Initially, users can select a fixed ratio for distributing their stake among these five pools. However, Lace Wallet has indicated that this ratio may be subject to adjustment in future updates.

Regardless, the feature plays a crucial role in promoting true decentralization. By allowing ADA holders to stake their tokens across multiple SPOs, Cardano aims to mitigate the risk of centralization while providing a more widely distributed network, one which aligns with the overall core vision of Cardano.
 

The founders of Three Arrows Capital (3AC) have been handed a 9 year trading ban by the Monetary Authority of Singapore (MAS). According to the MAS, this order restricts the founders from engaging in the management, direction, or ownership of any registered capital markets services firm within the country.

Tthe MAS had rebuked 3AC in June 2022 for providing false information to the regulator. Now however, the MAS revealed that it had conducted further investigations into the company and its founders, revealing additional violations of its regulations spanning from August 2020 to January 2022.

These infractions pertain to the delayed notification to the MAS regarding the appointment of Mr. Cheong Jun Yoong Arthur as a portfolio manager and the failure to establish an adequate risk management framework for identifying, monitoring, and addressing risks related to crypto and digital asset investments under their management.

Ms. Loo Siew Yee, an assistant managing director at the MAS, emphasized that robust risk management measures must be implemented to safeguard investors and their interests. The MAS will also take measures to remove senior managers who engage in any kind of misconduct, she added.

Global online payment giant PayPal has introduced a novel capability enabling Web3 merchants in the United States to accept cryptocurrency payments from their clientele.

Aptly named PayPal On and Off Ramps, this feature represents an integration with the preexisting services already provided by PayPal, which permits US consumers to engage in the buying and selling of cryptocurrencies endorsed by the payment processor.

The new feature reportedly facilitates the integration of wallets, dApps, and NFT marketplaces within PayPal, furnishing customers with a swift and seamless avenue for crypto transactions within the US. This feature also capitalizes on the robust fraud management, chargeback mechanisms, and dispute security controls and tools provided by the company.

According to PayPal crypto wallet users in the US can directly convert their cryptocurrency holdings into USD, which can be utilized for shopping, sending funds, saving, or transferring to their bank accounts or debit cards.

PayPal On and Off Ramps is now accessible to Web3 merchants and is compatible with MetaMask, one of the most widely used cryptocurrency wallets and browser extensions.
 

On behalf of the Web3 community, we would like to extend our warmest congratulations to the companies that announced their success in fundraising between 5th September and 11th September 2023. We are thrilled to see such tremendous support from all involved. Well done! 

Animoca Brands Secures $20M Funding for its Innovative Mocaverse Project
Animoca Brands secures $20M for Mocaverse, backed by top Web3 investors. Dive into their vision for the future of NFTs and blockchain gaming.

Helix, a startup incubated by Singapore-based private credit business Helicap, raised $2 million in pre-seed funding for its real-world assets protocol.

Truflation raised an undiscloed amount, enters the scene as an onchain financial oracle, providing automated and unbiased daily inflation reports, including the Consumer Price Index (CPI).

OpenCover raised $4.6mn introduces a groundbreaking concept as the first Layer-2 (L2) insurance aggregator, collaborating with underwriters like Nexus Mutual.

Onboard raised $1.9mn provides an on-chain, self-custodial solution for users to onramp and offramp crypto assets. Their platform relies on Multi-Party Computation (MPC) wallets and smart contracts.

BSX aims raised an undisclosed amount to democratize onchain trading with its decentralized limit order book. Users can engage in both long and short positions with leverage.

Avantis Education raised an undisclosed amount is a decentralized leverage trading platform for cryptocurrencies and forex. One big area of innovation here is introducing dynamic risk management for liquidity providers via tranches.

GAM3S.GG raised $2mn with an aim to continue evolution as home of web3 gaming with exciting upcoming features, and being trusted compass in this new gaming frontier.

Brine.fi, raised $16.5mn is powered by Ethereum scaling system StarkWare, is a non-custodial, decentralized orderbook that allows privacy for trading positions via so-called zero-knowledge proofs.

Zeebu raised $7mn, the innovative blockchain-based settlement platform for the telecom carrier industry, has successfully raised $25 million in a presale funding round, surpassing its hard cap target of $15 million.

Paragraph raised an undisclosed amount, is a publishing platform that helps web3 writers, DAOs and NFT communities monetize their content through an all-in-one newsletter service.

LeverFi raised $5mn, is a Developer of decentralized leverage trading platform intended to provide users with the ability to trade with leverage permissionless and transparent platform

Trident raised $8mn, will launch with a yield product that ties yields to the risk-free rate while ensuring treasuries physically back any deposits.

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

 

U.S. Senator Tom Emmer, a Minnesota Republican and U.S. House Majority Representative, has initiated a fresh effort to diminish the influence of the SEC within the crypto sector.

Emmer has therefore introduced an amendment as part of the Financial Services and General Government Appropriations Act for fiscal year 2024. This amendment seeks to limit the allocation of resources by the U.S. Securities and Exchange Commission for enforcing regulations on digital assets until comprehensive guidelines are established.

The goal behind this change is to prevent the SEC from utilizing taxpayer funds as a tool against the crypto industry, as stated by Emmer. He criticized SEC Chairman Gary Gensler for what he perceived as an abuse of authority to expand his influence at the expense of the American people.

Emmer also stressed the need for Congress to utilize various tools, including the appropriations process, to prevent Gensler from using additional taxpayer funds in this manner. Consequently, he intends to sponsor an appropriations amendment that places restrictions on the allocation of funds that the SEC may use to enforce digital asset regulations until clear and definitive rules are implemented.

Emmer is known for his strong advocacy of regulatory transparency and innovation in the crypto space. He has previously co-sponsored multiple bills with the aim of enhancing transparency and safeguarding consumers in the digital asset market, including the Blockchain Regulatory Clarity Act, the Securities Clarity Act, and the Removing Barriers to Innovation Act.