The Hong Kong division of one of the biggest fast food franchises in the world has entered the metaverse sector, following the footsteps of major global brands like Adidas, Coca-Cola, and Gucci. This metaverse, known as McNuggets Land, was created on the virtual gaming platform called The Sandbox.

This move comes as a celebration of the 40th anniversary of Chicken McNuggets, which were introduced worldwide in 1983. In McNuggets Land, users on The Sandbox platform can engage in various mini-games set in a virtual space themed around McNuggets.

By completing quests and participating in McNugget-related activities, players can earn rewards in the form of SAND tokens, the native cryptocurrency of The Sandbox ecosystem, as well as in-game accessories.
Additionally, players in Hong Kong can earn real-world restaurant coupons by accomplishing quests within McNuggets Land. The metaverse experience will be available until August 28th.

The McNuggets Land metaverse project in Hong Kong is not the first time the fast food giant has explored blockchain technology in its promotions. Both the U.S. and China branches of the company launched NFT collections in late 2021.

The private meeting aims to discuss various areas, including tax regulations, national security, privacy, and environmental considerations related to cryptocurrencies, as well as general concerns regarding digital asset legislation.

This development occurs in the backdrop of the ongoing legal battle between Coinbase and the SEC. The agency has accused Coinbase of violating regulations by not registering as a securities exchange, a claim that Coinbase strongly disputes and is actively seeking dismissal of.

Coinbase argues that the actions taken by the SEC represent an undisclosed change in its interpretation of its own authority, characterizing it as an abuse of power. CEO Armstrong has long been an advocate for clear guidelines regarding digital assets, emphasizing the need for congressional legislation to address inconsistencies between the SEC and the CFTC.

Coinbase has proposed two bills to lawmakers that would provide explicit directions on how crypto exchanges should register with regulators. These efforts aim to close authority gaps between the CFTC and SEC and strengthen financial and technological innovation in the U.S.

Armstrong calling for clearer regulations aligns with the concerns of the broader crypto industry, which has faced increased scrutiny from the SEC. The Blockchain Association has criticized the agency for exhibiting bias against cryptocurrencies other than Bitcoin, asserting that the SEC considers all digital assets as securities as was showcased in the XRP lawsuit.

Geist Finance has made the decision to permanently shut down following a hack on the Multichain platform. The lending protocol, operating on the Fantom network, suffered losses due to the exploit, leading to the suspension of Geist contracts on July 6th.

The Multichain hack, initially reported by blockchain analytics experts on July 7th, involved the withdrawal of over $100 million from the Ethereum side of Multichain bridges. This included bridges connected to Dogechain, Fantom, and Moonriver. Although the Multichain team referred to the transactions as abnormal and urged users to cease utilizing the protocol, they refrained from explicitly labeling it as a hack or exploit until July 11th.

Although they briefly resumed operations on July 9th with limited functionality, a recent social media post from the development team confirmed that Geist will not reopen its lending and borrowing services.

Before the hack, Geist allowed users to utilize tokens from the Multichain platform as collateral, including popular cryptocurrencies such as BTC, ETH, USDC, and USDT. However, the oracles used by Geist, specifically Chainlink oracles, began reporting inaccurate values for these tokens after the exploit.

Instead of reflecting the values of the Multichain derivatives, the oracles started displaying the higher values of the non-bridged real versions of each token. This discrepancy, with the non-Multichain coins being valued at over 4 times the Multichain assets, renders it impossible to resume lending without incurring significant losses for holders of non-Multichain coins.

The Geist team made it clear that they do not hold Chainlink oracles responsible for the closure of the platform, emphasizing that the oracles worked as intended. They attributed the blame solely to MultichainOrg, the organization behind the Multichain platform.

The historic decision brings an end to a three year legal battle between Ripple Labs and the U.S SEC. The judge granted the motion for summary judgment on Programmatic Sales, Other Distributions, and sales by Larsen and Garlinghouse, but denied it for Institutional Sales.

This decision is not only a victory for Ripple but also for the entire crypto market, which reached over $1.20 trillion in value shortly after the ruling. Following the ruling, Coinbase announced that it would resume trading XRP. This outcome is seen as positive not only for Ripple but also for other crypto companies facing regulatory scrutiny, including Coinbase itself.

Additionally, Jacobi Asset Management plans to launch the first Spot Bitcoin ETF in Europe on the Euronext Amsterdam later this year, while heavyweight firms like BlackRock are awaiting approval for a similar ETF in the U.S. This ruling also establishes the legal status of XRP.

It is worth noting that the SEC may still appeal the decision, prolonging the legal battle. Nevertheless, the victory is a boost for the company, which has consistently argued that XRP is a legitimate cryptocurrency for cross-border payments, not subject to SEC regulation.

The court relying on the Howey test to determine investment contracts dealt a major blow to the SEC case, as it failed to prove that XRP sales met the criteria. Despite the damage caused by the legal battle, including delistings and a decline in value, the win has had a positive impact on the price of XRP which experienced a massive surge following the court ruling.

Analysts predict that XRP could potentially reach the $1 mark, and the victory provides regulatory clarity and may attract a large number of institutional investors who were initially cautious due to the lawsuit.

The Tesla CEO tweeted that the company, named xAI, will mainly focus on gaining a deeper understanding of reality. However, he did not provide any further specifics regarding any objectives, products, or financial backing.

Elon has a reputation for embarking on ambitious ventures such as Mars colonization, neural implants, and hyperloop transportation systems. He has also been an outspoken advocate for assessing both the benefits and risks associated with AI, considering it a critical concern for humanity.

Prior to xAI, Musk was involved in another AI enterprise called OpenAI, which he co-founded in 2015 alongside prominent researchers and entrepreneurs. However, he stepped down from the OpenAI board in 2018, citing potential conflicts of interest with his other endeavors. In 2020, his stake in OpenAI was sold after the organization transitioned into a for-profit entity.

According to the official website of xAI, the company is being developed under the direct leadership of Musk himself, with a dedicated team working on its various initiatives. Elon has also been as an avid supporter of cryptocurrencies, particularly Dogecoin (DOGE).

Berenberg Capital Markets recently published a research note suggesting that the upcoming Bitcoin halving event could potentially impact the share price of Microstrategy, a software firm based in the United States.

Berenberg speculates that the fourth Bitcoin halving might trigger a significant surge in the stock price for Microstrategy, as the company is known for its strong support of the flagship cryptocurrency.

The analysis focuses on the substantial Bitcoin holdings of Microstrategy, which currently exceed 150,000 units. The investment bank anticipates that a rally similar to previous halvings could have a positive effect on the prices for both Bitcoin and Microstrategy shares.

A recent research report from Standard Chartered further supports the positive outlook for Microstrategy. The British banking giant raised its Bitcoin price target, projecting that the leading cryptocurrency could reach $130,000 by the end of 2023.
 

Recent information provided by FiscalData reveals that on June 2nd 2023, the total outstanding public debt of the U.S amounted to $31.467 trillion. Just 28 days later, on June 30th, this figure surged to $32.332 trillion, indicating a remarkable rise of $865 billion.

The rapid growth in U.S debt during this 28 day period surpasses the combined Gross Domestic Product (GDP) of 3 significant global economies, namely Greece, Finland, and Hong Kong. Collectively, these economies produced a total of $859.71 billion in wealth last year, which is lower than the debt accumulated by the U.S in just 4 weeks.

In a recent report, the Congressional Budget Office (CBO) projected that the national debt will far outpace GDP growth and could reach nearly 3 times the local GDP within the next few decades. The CBO further anticipates that by 2053, U.S GDP will rise to $79.5 trillion, while the debt will skyrocket to $143.895 trillion.

The federal agency warns that such high and escalating debt levels would impede economic growth, increase interest payments to foreign holders of U.S debt, and pose significant risks to the fiscal and economic outlook. Moreover, it could potentially limit policy options for lawmakers while simultaneously encouraing alternative financial options such as cryptocurrencies and other digital assets.

Binance, the largest crypto exchange in the world, has reportedly terminated the employment of several of its staff members based in the United States. Recent departures include the General Counsel, Chief Strategy Officer, Head of Investigations, and Senior Vice President of Compliance.

Binance CEO Changpeng Zhao confirmed the resignation of Patrick Hillmann but did not disclose the reasons behind the other departures. In a Twitter post, Zhao acknowledged that changes occur within organizations due to evolving market conditions, the ever-changing crypto landscape, and personal circumstances.

As Binance conducted significant layoffs last week, some employees were not given any explanation for their terminations, while others were informed that their positions had become redundant. In any case, Binance is clearly implementing a plan to downsize its workforce in the United States.

The exchange has been engaged in negotiations with the United States SEC and the Justice Department for several months, hoping to reach a compromise. However, in June, the SEC filed a lawsuit against Zhao, Binance, and the U.S branch of the exchange, accusing Binance of operating an illicit trading platform in the country and misusing customer funds.

Binance has approximately 8,000 employees worldwide, about 150 of which are based in the United States. It is important to note that this figure does not include Binance.US employees. Recently, Binance.US also carried out layoffs, affecting roughly 50 individuals, which accounts for just below 10% of its total workforce.

The majority of officials supported maintaining interest rates at their current level during the June meeting. A portion of officials backed a 25 basis point increase at the same meeting. Some officials advocated for an increase but agreed to pause temporarily.

FED officials expressed concerns about the possibility of a moderate recession starting this year, similar to what was mentioned in the May meeting. All participants agreed that maintaining a restrictive stance would be appropriate.

Additional rate hikes in 2023 received approval from nearly all officials during the June 13-14 meeting. Resolving the debt limit issue was noted by some participants as removing a source of uncertainty. All members unanimously supported continuing with the tight monetary policy.

Moreover, proponents of rate hikes pointed to factors such as a tight labor market, stronger than anticipated economic momentum, and insufficient evidence of inflation returning to the 2% target over time. Members maintained their expectation of a mild recession towards the end of the year.

FED meetings are important as they provide guidance on the direction of future monetary policy. Given that government officials have indicated their intention to implement two more rate hikes this year in subsequent public statements, the June minutes are particularly interesting.

FED decisions are often communicated well in advance, and FED minutes serve as a means for officials to convey their message. For instance, at the June meeting, FOMC members chose to keep the benchmark interest rate unchanged, as expected, and maintained the federal funds rate target between 5% and 5.25%.

However, FED officials acknowledged that the decision not to raise interest rates in June allowed them to assess the impact of tighter monetary policy on the U.S. economy. They also noted that the pause is likely to be short term, with potential future increases occurring soon after the July meeting.

Nasdaq has resubmitted a 19b-4 form for the iShares Bitcoin Trust, a Bitcoin exchange-traded fund (ETF) led by BlackRock. This action follows similar filings made by the Cboe exchange last week.

According to the filing, Nasdaq has reached an agreement with Coinbase to establish a surveillance-sharing agreement. They anticipate finalizing a definitive agreement before the commencement of trading. The purpose of this agreement, termed the Spot BTC SSA, is to supplement the existing market surveillance program provided by Nasdaq.

This development comes in response to a report by The Wall Street Journal, which stated that the U.S. Securities and Exchange Commission (SEC) informed Nasdaq and Cboe that recent filings for spot Bitcoin ETFs by BlackRock, Fidelity, and others lacked clarity and comprehensiveness.

Promptly, Cboe updated its filings for separate proposals of spot Bitcoin ETFs, including one proposed by Fidelity. These particular filings now mention their expectation of entering into surveillance-sharing agreements with Coinbase. Nasdaq initially filed the proposal for the BlackRock fund last month.

Its important to note that the SEC has not yet granted approval for a spot Bitcoin ETF. The agency has repeatedly expressed concerns about fraud and market manipulation when evaluating previous applications. Hence, these proposals may encounter challenges during the regulatory review process.

In other news, BlackRock CEO Larry Fink recently declared Bitcoin as an international asset, acknowledging both its global popularity and potential as a long term store of value.

 

The lawsuit accuses Coinbase of facilitating unregistered trading in 12 digital tokens that are considered securities. Coinbase strongly disputes these claims and argues that the SEC is applying securities laws in a manner that deviates significantly from established legal frameworks.

Coinbase Chief Legal Officer, Paul Grewal, stated that these allegations go beyond any existing law and should be dismissed. In a legal filing submitted to the U.S. District Court for the Southern District of New York, Coinbase expressed concerns about how the SEC interprets securities laws, suggesting that the agency is overstepping its legal authority.

By filing a motion to dismiss, Coinbase demonstrates its determination to challenge the lawsuit. This type of motion asserts that even if the allegations in the lawsuit are true, there is no valid legal claim against the defendant.
Coinbase maintains that the assets in question are not securities.

As a government agency, the SEC requires platforms that facilitate trading of securities to register with it. The SEC defines securities to include investment contracts, which the Supreme Court has interpreted through the Howey Test.

However, according to the filing made by Coinbase, the identified digital assets are not securities, and therefore, secondary transactions involving these assets are also not securities.

Coinbase additionally highlighted various inconsistencies made by the SEC, noting that the agency did not previously raise objections to 6 of the tokens mentioned in their dealings with Coinbase in 2021.

The lawyers further argued that the SEC had approved the registration statement put forth by Coinbase, allowing the company to sell its shares to investors during its initial public offering. This approval followed a thorough review process and discussions with the exchange, enabling Coinbase to trade over 240 tokens on its platform, including 6 of the disputed tokens.

According to sources cited by the Wall Street Journal (WSJ), the U.S. SEC has informed the Nasdaq and Cboe exchanges that the recent filings for spot Bitcoin exchange-traded fund (ETF) funds made by BlackRock, Fidelity, and other firms were lacking in clarity and comprehensiveness.

The SEC returned the filings because they did not provide sufficient information about surveillance sharing arrangements. However, the asset managers have the opportunity to update the language and resubmit the filings.

A Cboe spokeswoman mentioned in the WSJ report that they plan to update and resubmit their filing, while both Nasdaq and the SEC declined to comment. The development nevertheless caused a sharp decline in the price of BTC, dropping from over $31,000 to $29,830.

Fidelity joined the race for a spot Bitcoin ETF, following other firms such as BlackRock, WisdomTree, and Invesco, all of whom have recently filed similar proposals. It is worth noting that the SEC has not yet approved any spot Bitcoin ETF.

Bloomberg ETF analyst Eric Balchunas tweeted that the situation is not as negative as the headlines may suggest. He explained that the request for more details on the crypto exchange and surveillance sharing arrangements is understandable and could be considered as potentially positive news. He had initially thought that the update would require more changes as well.