Former SEC And CFTC Chairs On Digital Assets; How Big Is The Crypto Industry?

getting swallowed

In another story inspired by recent Bitcoin Spot ETF filings such as BlackRock’s, traditional finance is stepping up its interest in crypto. Matthew Sigel, a digital assets researcher at fund manager VanEck, tells The Washington Post, “Assets often move from weak hands to strong hands during bear markets. We think that’s what is happening in crypto. A lot of losses last year were taken by retail or immature players, and now here come the big boys” of traditional finance. Crypto pledged to dethrone Wall Street. It’s getting swallowed instead.” Read more.

Little hope is given to companies like Coinbase in the article.

former Chairs framework

In an op-ed on Friday hopefully titled, “A Path Forward for Regulating Crypto Markets,” former Republican Securities and Exchange Commission (SEC) Chair Jay Clayton, a Republican, and former Commodity Futures Trading Commission (CFTC) Chair Timothy Massad, a Democrat, combine forces to provide their own solution for a digital assets regulatory framework.

The two are pessimistic on any positive developments for digital assets due to near-term legislative action or litigation. They propose the SEC and CFTC get together ASAP: “…we continue to believe that other actions, besides litigation, should be taken if we are to reach an appropriate end. Most notably, the SEC and CFTC should jointly develop basic investor and market protection standards for trading platforms as they exist today.” Read more.

Blockchain reshuffle

Ryan Wyatt, who appeared in June’s House Energy & Commerce Committee’s Subcommittee on Innovation, Data and Commerce hearing on non-financial blockchain technology, is leaving his role as president at Polygon Labs but remain as an advisor.

The company, which supports the Layer 1 blockchain Polygon and its MATIC token, elevated its Chief Legal Officer Marc Boiron to CEO.

The Block notes that the company’s usage of top C-Level titles comes after PolygonLabs rid itself of some C-level acronyms in the interests of “decentralization” in 2021. The executive shuffle may also signal a new era of rigor or discipline for the company and the importance of managing rough regulatory waters. Rebecca Rettig will now become the company’s new CLO in addition to her Chief Policy Officer role.

At last month’s hearing, Wyatt, rather than providing a U.S. government use case for blockchain technology when asked by Rep. Darren Soto (D, FL), discussed the need for regulatory clarity.

on U.S. CBDC strategy

CoinDesk executive editor Michael Casey argues that given the gradual adoption of Central Bank Digital Currencies (CBDCs) across the globe – he gives plenty of examples- now is the time for the United States needs to secure its “soft-power” monetary policy.   He doesn’t believe a retail CBDC is the way to go, but “official digital dollars should be reserved for inter-central bank cross-border settlement while domestic-use digital money should be opened up to private players using decentralized models with crypto technology. That’s where the real innovative edge will be found.” Read more.

how big is crypto?

The research arm of Swedish digital assets venture firm Arcario, K33 Research, has published a new trends report covering the global crypto industry. Decrypt gets into the details: “[The industry] is comprised of 10,000 companies, employing 190,000 people, and has a valuation of $190 billion. Unsurprisingly, exchanges and brokerages employ the majority of those workers—approximately 60%, or 62,400 people.” The report’s authors tell Decrypt that the U.S. remains the “center of gravity” of crypto and expect it stay that way in spite of regulatory tumult. Read more.

fast funds

In a Wall Street Journal article that once again revives the idea that crypto caused the failure of Signature Bank in March, the impact of the Federal Reserve’s new payment system, FedNow, is seen as a potential panacea to bank runs that levels the playing field between small and large financial institutions. But, Ethan Heisler of The Bank Treasury Newsletter tells the WSJ that “banks will need to sit on a lot more cash than they are used to” given the ability for depositors to quickly transfer funds using FedNow. Read more.

greased Lightning

Lightning Labs Releases Tools for Bitcoin-Powered AI Products – Unchained

Google Cloud furthers Bitcoin Lightning ambitions with Voltage partnership – Cointelegraph

see more tips

Elizabeth Warren’s anti-crypto crusade may bolster Wall Street’s land grab in Bitcoin market – DL News

“[On Friday], the SEC filed its response to Coinbase’s letter indicating its intent to file a motion for judgment on the pleadings. Instead of filing a motion to dismiss, Coinbase will seek dismissal because ‘the subject matter falls outside the SEC’s authority.'” – Marisa Tashman Coppel of Blockchain Association on Twitter

Opinion: Everything You Need To Know About Bitcoin And The Environment – Forbes

Crypto Poses Significant Tax Problems—and They Could Get Worse – International Monetary Fund (July 5)

Sega Pulls Back From Blockchain Gaming as Crypto Winter Persists – Bloomberg

Binance Feels Strain of World’s Regulators Leaping Into Action – CoinDesk

Multichain MPC bridge sees $100M+ outflows, sparking fears of exploit – Cointelegraph

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