Snapshot Web3

December 6, 2023

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Regulatory and Legal News

New Jersey bill would make crypto sold to institutional investors a security

New Jersey may classify digital assets sold to institutional investors as securities under a bill introduced by Assemblymember Herb Conaway, Jr. The legislation complements existing regulations for digital assets owned by individuals. The bill defines institutional investors, allows the state to categorize stablecoins as virtual currencies, and applies only to transactions governed by New Jersey law, excluding federal SEC impact. Two other bills in the state address consumer digital assets, decentralized autonomous organizations, and digital payment platforms for businesses lacking traditional financial access.

Spotlight on AI, digital assets at House subcommittee hearing

The House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion conducted a significant hearing, featuring representatives from the Federal Reserve, SEC, and OCC, discussing the growing influence of digital assets, distributed ledgers, and artificial intelligence in reshaping finance. Subcommittee Chair French Hill emphasized the need for robust supervision of digital assets and a cautious approach to implementing distributed ledger technology. Agency representatives addressed cryptocurrency issues, including the Federal Reserve's new supervision program and the SEC's guide for digital assets. The discussion also covered AI risks, highlighting challenges such as data issues and bias. The market's call for comprehensive legislative guidance on digital assets is becoming more apparent.

Belarus Wants to Use Its CBDC to Evade Sanctions

Belarus is looking to fast-track the launch of its Central Bank Digital Currency (CBDC) to bypass US and EU sanctions, enabling its businesses to trade internationally. President Alexander Lukashenko might make a CBDC-related decision soon. The National Bank of the Republic of Belarus (NBRB) sees the digital ruble as a solution to overcome sanctions, emphasizing its cross-border potential. The move comes after Lukashenko's visit to China, where President Xi Jinping expressed support. China is also testing CBDC cross-border capabilities. Meanwhile, Russia, a key ally, is expediting its own CBDC pilots, aiming for a nationwide launch in 2025.

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Innovation and Launches

Coinbase rolls out crypto transfers via links sent on WhatsApp, Telegram

Coinbase Wallet has introduced a new feature allowing users to transfer cryptocurrencies via links sent through popular messaging apps and social media platforms such as WhatsApp, Telegram, iMessage, Facebook, Instagram, and TikTok. The recipient, upon clicking the link, is directed to download Coinbase Wallet, where they can easily create a wallet. The service currently supports transfers in USD Coin (USDC), Coinbase's stablecoin. There are no fees for sending USDC, and unclaimed funds are returned to the sender after two weeks. Coinbase aims to simplify the process for less tech-savvy users and address complexities associated with international bank wire transfers, including fees and delays. The move is part of Coinbase's effort to expand its accessibility to a broader audience. The company's share price has risen over 300% in 2023 but remains 59% below its all-time high in November 2021.

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NFT, Gaming and Metaverse

Amazon Prime Is Giving Out Free Card Packs for NFT Game 'Gods Unchained'

Amazon Prime subscribers can now claim free in-game card packs for the NFT game Gods Unchained through the Amazon Prime Gaming portal. The first monthly reward includes 5 Rare Core Packs and one Core Domain Pack, with the promotion running for six months. Although the cards in the free packs are initially non-NFTs, players can fuse them in the game to create higher-quality NFT versions on the Immutable X network. This collaboration coincides with the launch of Gods Unchained's second in-game season, Far Horizons, introducing new gameplay mechanics and a card set titled Tides of Fate. Gods Unchained also plans to support content creators through a program providing up to 6,000 GODS tokens per month. The game is available on Windows and Mac, with an upcoming release on iOS and Android.

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Funding and Acquisitions

Riot Platforms Buy $291 Million In Mining Rigs, Locks In Price For Even More

Cryptocurrency mining company Riot Platforms has invested $291 million in purchasing 66,500 mining rigs from MicroBT Electronics, taking advantage of the recent surge in Bitcoin prices. The company, known for its scale of operations and cost efficiency, already had an agreement for 33,280 miners with MicroBT. The new machines are expected to be operational by the end of 2024, contributing to Riot's goal of exceeding 100 EH/s in mining power. The purchase agreement also provides the option to acquire up to 265,000 additional miners at the same preferential price. Riot Platforms CEO Jason Les expressed excitement about the significant order, emphasizing the company's commitment to a robust Bitcoin mining fleet. The newly purchased mining rigs, primarily MicroBT's M66S, known for its efficiency, will be built in the United States for seamless integration into Riot's facilities.

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Interesting Reads

Does DeFi still have a chance at fulfilling its promise?

Decentralized finance (DeFi) faces a critical juncture in fulfilling its promise of revolutionizing the financial system. The movement initially gained traction with its peer-to-peer asset transfers and smart contract autonomy. However, despite rapid growth, DeFi's impact remained limited due to security issues, poor user experience, and regulatory concerns. With regulators increasing scrutiny and traditional finance incorporating decentralized technology, DeFi is at a crossroads. The article explores two potential paths: one where DeFi operates independently but faces heavy regulatory crackdowns, and another where it becomes a legitimate alternative by adopting necessary rules and providing better solutions within the broader financial system. The outcome hinges on whether DeFi prioritizes consumer protection and collaborates with traditional players or pursues an independent and potentially restricted path.

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Resource of the Day

How do validators decide what block to add to the ETH blockchain?

Each block is essentially a message. I send 1 ETH to mark by telling the whole network “Hey, I’m sending 1 ETH to Mark.” And my message gets thrown into a block, which is essentially a group of messages. Blocks are segregated by time, so (for example) a message received at 1:00:30 might get grouped in with messages received at 1:00:14 and 1:00:31. But there could be multiple blocks (due to delays in information delivery, presumably) So a group of computers chosen according to how much they staked votes on which block to add to the chain. How does each validator decide which of the blocks should become a part of the Ethereum blockchain?

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Miscellaneous

BlackRock’s Strategic Bitcoin Accumulation Amid Bear Market

BlackRock has been actively acquiring Bitcoin throughout the downturn, leveraging a private trust launched in 2022, with Coinbase as its custodian.

Tether’s Bitcoin Strategy Pays Off Big: $1.1 Billion Profit Amid Price Surge

Tether’s Bitcoin holdings have surged to $2.4 billion, marking an 85% profit amidst the current market upswing.

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The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.