Fed chair Powell doesn’t ‘want to stifle innovation’ in crypto
The Federal Reserve chair Jerome Powell told the Senate Banking Committee on Tuesday that Congress needed to create a legal framework for crypto that doesn’t strangle innovation.
Powell acknowledged regulator concerns relating to stablecoins, but insisted digital assets may have a place in America’s financial system.
“We don’t want to stifle innovation,” he said.
“We don’t want to stifle innovation”
Agencies such as the Securities Exchange Commission have recently undertaken what critics have labelled as a regulation-by-enforcement approach to crypto, issuing a levy of legal actions against various firms.
The agency’s regulatory push has been guided by SEC chair Gary Gensler, who argues that most crypto assets are unregistered securities.
Crypto industry leaders such as Coinbase CEO Brian Armstrong have been vocal in recent weeks, saying that the US senate needs to develop a framework for helping crypto companies meet government requirements.
READ NOW: London’s crypto hub status may slip to ‘not even number three’ after Brexit deal
MakerDAO may buy $750m in US Treasurys
MakerDAO, the organisation behind stablecoin DAI, is considering a proposal to take advantage of the favourable yields markets and allocate $750 million towards the purchase of bonds and notes.
The proposal, made through MakerDAO’s decentralised autonomous organisation, would add to $500 million in US Treasurys approved in October, bringing the ceiling to $1.25 billion.
The purchased bonds will act as reserves for DAI. The vote comes following the repetitional beating stablecoins have endured after the $60 billion implosion of Terraform Labs’ Terra in May.
A DAO is a democratic structure for operating blockchain companies, which allows community members to vote on important proposals which shape the company’s direction.
MakerDAO is reviewing a proposal to extend its existing US treasury bond investments from $500 million to $1.25 billion. pic.twitter.com/DZj72oTJvP
— Maker (@MakerDAO) March 7, 2023
US judge indicates Binance.US may proceed with $1bn Voyager purchase
In a rare blow to the SEC’s regulatory onslaught against crypto firms, a US bankruptcy judge has indicated he will allow Binance.US to purchase bankrupt crypto lending firm Voyager Digital.
The $1 billion deal would potentially see 73% of Voyager creditors’ funds returned – depending on the state of the market – a figure which may have contributed to a 97% approval of the deal by creditors.
State regulators from New Jersey and Texas joined the SEC in trying to stop the deal, however, by reminding the judge of a pending lawsuit between Voyager and FTX’s bankrupt sister firm Alameda Research. Creditors could lose up to $445 million if Alameda wins.
Judge Michael Wiles struck down the regulators’ objections, highlighting the need for Voyager’s restructuring to occur in a timely manner.
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Jimmy Fallon asks not to testify in Yuga Labs case
NBC late-night host Jimmy Fallon’s lawyers have requested that he will be excused from testifying in a trademark dispute centred on NFT creator Yuga Labs.
Yuga Labs is suing a copycat project for trademark infringement. Fallon has been subpoenaed as part of the lawsuit proceedings.
Though Fallon’s lawyers maintain the Tonight Show host has nothing to do with the case, Fallon is currently a co-defendant, alongside other celebrities, in a separate Yuga Labs suit, in which they are alleged to have misleadingly promoted Yuga Labs products.
A new class action was filed yesterday against Yuga Labs over celebrities pumping BAYC without disclosing their involvement.
— Rob Freund (@RobertFreundLaw) December 9, 2022
Defendants include Gwyneth Paltrow, Paris Hilton, Justin Bieber, Serene Williams, Madonna, Jimmy Fallon, Kevin Hart, DJ Khaled, and Steph Curry. pic.twitter.com/fHLrYPgn2a
Silvergate in consultations with FDIC to stay above water
Officials at the Federal Deposit Insurance Corp are consulting with Silvergate executives about how to keep the company alive, Bloomberg reports.
Silvergate failed to file an annual report last week, saying it needed to answer requests from its independent auditors and accounting firm as well as pending regulatory and other inquiries and investigations.
That and fresh revelations about its exposure to the FTX collapse have put the crypto-friendly bank’s future in doubt, with short-sellers swarming the beleaguered company.
With many large crypto-native clients – including Coinbase and Circle – severing business ties with the bank, Silvergate’s share price has fallen to an all-time low.
Neither Silvergate nor the FDIC have elaborated on the details of their consultation, but the rest of the space watches to see if further damage is on the horizon.
NOW READ: Hedge fund short seller says Silvergate crash may be a sign of the bottom
Coinbase sued over $96,000 hack
Coinbase has been sued by a customer who says the company did nothing to help him recover $96,000 lost in a hack of his Coinbase wallet.
Plaintiff Jeff Ferguson alleges that his phone had been hacked in May and that his funds were missing following the hack.
Ferguson next contacted the company, which asked him for information regarding his transaction history and security settings.
Weeks later, Coinbase declared it could not assist Ferguson. Ferguson’s allegations are that Coinbase violated electronic fund transfer laws, as well as California state laws regarding reimbursement in the case of fraud.
More Web3 news from around the web...
Blur captures 84% of ETH-based NFT transactions in first week of March – The Block
Jack Dorsey’s Block reveals plans for Bitcoin ‘mining development kit’ – Decrypt
Esports giant TSM enters into web3 gaming partnership with Avalanche – CoinDesk
