💣 SEC declares WAR on crypto

Markets

SEC sues Coinbase as pressure on crypto world rises (4 minute read)
The Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase Global (COIN), the leading cryptocurrency exchange in the US, ramping up regulatory pressure on the crypto world. The SEC claims that Coinbase violated securities laws by functioning as an exchange, broker, and clearing agency without registering with the agency. Furthermore, it alleges that Coinbase offered and sold securities without the necessary registration. In response. Grewal and Coinbase CEO Brian Armstrong released separate statements challenging the SEC's approach, arguing that the agency was overly aggressive and had failed to establish clear rules for their industry. Since the beginning of the year, the SEC has charged 15 different crypto actors with violating securities laws.

SEC Sues Crypto Exchange Binance and CEO Changpeng Zhao, Alleging Multiple Securities Violations (5+ minute read)
The SEC has also taken legal action against Binance, the renowned crypto exchange, as well as its founder and CEO, Changpeng "CZ" Zhao, on grounds of violating federal securities laws. The SEC's lawsuit alleges that Binance, Binance.US, and CZ offered unregistered securities, specifically the BNB token and Binance-linked BUSD stablecoin, to the general public. Furthermore, the suit claims that Binance's staking service ran afoul of securities law. The charges extend beyond Binance and CZ, encompassing BAM Trading (the operator of Binance.US) for various failures to register as a clearing agency, broker, and exchange. The SEC also contends that Binance permitted the mingling of customer funds, that CZ maintained secret control over Binance.US.

Bitcoin bounces higher in wake of Coinbase lawsuit (2 minute read)
Bitcoin is enjoying a little boost, rising approximately 5% in late-afternoon yesterday, following the news of the SEC's lawsuit against Coinbase, the popular U.S. crypto exchange. This upward movement comes as a welcome retracement after the SEC's legal action against Binance and its American counterpart, BinanceUS, had initially caused a dip in the market. In response to the SEC lawsuit, Coinbase's stock price took a sharp tumble at the start of the trading day, dropping as much as 15%. However, as the day progressed, Coinbase managed to recover some of those losses, closing at $51.61, with a 12.09% decrease for the day.

Tech

The Lightning Network Doesn’t Fix Everything Wrong With Bitcoin (4 minute read)
The Lightning Network, aptly named for its lightning-fast transaction capabilities, has garnered immense popularity among Bitcoin enthusiasts. Its potential to address Bitcoin's scalability challenges has captured the attention and admiration of many. However, while the Lightning Network holds great promise, it is not without its fair share of concerns and limitations. Despite the recent surge in bitcoin fees coinciding with the Bitcoin 2023 conference in Miami, where discussions about Bitcoin's challenges were abundant, some skeptics question whether the Lightning Network can truly fulfill its intended purpose. While it's easy to get caught up in the excitement, it's important to approach the Lightning Network with a critical eye and consider its suitability for each specific issue that arises within the realm of Bitcoin.

Twitch Co-Founder's Fractal Launches Tools to Help Devs Build NFT Games (3 minute read)
Fractal, a web3 startup and NFT marketplace with a focus on gaming, has unveiled an exciting new product called Fractal Studio, lovingly known as FStudio. This three-part offering aims to simplify the process of integrating cryptocurrencies into video games, removing the need for extensive coding knowledge. The FStudio platform empowers developers with the ability to "build," "acquire," and "monetize" their projects, as stated in the announcement. With FStudio, developers can effortlessly transform in-game assets into NFTs, facilitate credit card payments for in-game crypto items, and even establish their own in-game NFT shops. Reflecting on the company's journey, Justin Kan, co-founder of Fractal and the co-founder of Twitch, shared his thoughts with Decrypt in an interview, expressing that the crypto space has experienced significant growth even within the short span of 18 months since Fractal's inception.

Misc

Explained: How Binance’s stablecoin BUSD can be a security (3 minute read)
The recent decision by the Securities and Exchange Commission (SEC) to label BUSD, a stablecoin, as an unregistered security has left many perplexed. The SEC's rationale behind this classification is both intricate and captivating, leading to discussions about the categorization of other stablecoins. While the SEC has previously designated numerous digital assets, such as cardano (ADA), solana (SOL), ripple (XRP), algorand (ALGO), tron (TRX), and filecoin (FIL), as securities, it also took an interesting stance on Terra (UST), a failed stablecoin associated with Terra Luna (LUNA) and considered it an investment contract.

El Salvador’s Bitcoin miner Volcano Energy launches with $250M investment (2 minute read)
A public-private partnership in El Salvador has received its initial $250 million investment towards the creation of a Bitcoin mining farm. The ambitious project aims to establish a 241-megawatt power generation park in the picturesque Metapán region of the country. Volcano Energy, the company spearheading the initiative, plans to utilize solar and wind energy to develop the power generation park, which will ultimately provide the necessary power for the Bitcoin mining operation. The enthusiastic announcement was made by Max Keiser, the chairman of Volcano Energy, who took to Twitter on June 7 to share this significant milestone.

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