This Week in Crypto (Through September 8)
This Week in Crypto (Through September 8)
Visa Partners With Solana, Bitcoin Spot-ETF Approval Rumors Continue, and U.S. CBDC Discussions Pick Up Next Week
Bitcoin:
Texas Paid Bitcoin Miner More Than $31 Million to Cut Energy Usage During Heat Wave
CBS News | Elizabeth Napolitano
“Riot said on Wednesday that the state's power grid operator paid the company $31.7 million in energy credits in August — or roughly $22 million more than the value of the bitcoin it mined that month — to cut its energy consumption during a record-breaking heatwave in the state.”
Bitcoin ETF: The Quiet 800-Pound Gorilla in the Room is About to Roar
Yahoo Finance | Charlie McGlynn
“While the SEC recently delayed all ETF applications on Sept. 1, as most applicants’ first deadline for review was on Sept. 2, the delays were largely expected. The market responded accordingly with Bitcoin dropping about 5% from the delay announcement to around US$25,700 at the time of this writing. Despite the delays, the path to a spot ETF approval is much clearer after Grayscale’s win in court. JPMorgan analysts believe this, as well as former SEC Chair Jay Clayton who says approval is ‘inevitable.’”
Decentralized Finance (DeFi):
DeFi Projects Charged by CFTC Over Crypto Derivatives
Blockworks | Sebastian Sinclair
“In orders dated Thursday, the CFTC charged Opyn, ZeroEx and Deridex with operating unregistered trading platforms and offering illegal leveraged transactions in digital assets. Specifically, the CFTC said ZeroEx’s DEX aggregator Matcha allowed trading of third-party tokens that offered 2:1 leverage on assets like ether (ETH) and bitcoin (BTC), in violation of federal regulations requiring such platforms to be registered.”
IRS’s New Crypto Tax Rules Pose A Threat To DeFi
Forbes | Shehan Chandrasekera
“The definition of “broker” has been a controversial topic because of industry concerns that it could loop in entities with little ability to comply with the law, such as miners and decentralized finance platforms. It would be up to the IRS & the Treasury to turn this law into formal guidance. On August 25, 2023, the IRS issued proposed regulations (Regs) defining the controversial term “broker” and detailing requirements brokers must follow to comply with tax reporting rules related to cryptocurrency transactions.”
Non-Fungible Tokens (NFTs):
Binance NFT Marketplace Ends Support for Polygon in Effort to ‘Streamline'
Decrypt | Mat Di Salvo
“Friday's announcement added that users will not be able to buy or list Polygon NFTs on the marketplace after 6am UTC, September 26. Users also will not be able to users will not be able to stake LAND NFTs hosted on Polygon to earn daily The Sandbox (SAND) rewards.”
Google Will Allow Ads for NFT Games Starting Sept. 15
CoinTelegraph | Tristan Green
“Google has updated its cryptocurrency advertising policy to allow for blockchain-based nonfungible token (NFT) gaming advertisements as long as they don’t promote gambling or gambling services. The new policy will continue to ban advertisements for games allowing players to wager or stake NFTs against other players or for rewards, including cryptocurrencies and other nonfungible tokens. NFT casino games and any other social betting paradigm that allows players to wager or play for real-world prizes — such as NFTs, cash or cryptocurrency — will also continue to be banned.”
Gaming:
Saudi Arabia Looks to Blockchain Gaming and Web3 to Diversify Economy
CoinTelegraph | Hermi De Ramos
“The Animoca co-founder claimed that most Web2 users are not capital investors because they’re mostly labor people compared to Web3 people who understand investing. Meanwhile, Mythical Games CEO John Linden told Cointelegraph that he already sees Web3 adoption in the gaming sector, albeit at a slower pace.”
Online Gaming Has Issues That Only Web3 Can Solve
Forbes | Sandy Carter
“It’s becoming clear that even though Web3 identities are in their infancy, there are so many benefits that they stand to offer to the gaming world. Decentralized games offer players even more exciting possibilities, but they also raise the stakes when it comes to user support and protection. Web3 IDs are ushering in a new era where hacks and data mining become a thing of the past — it’s your data, your choices, and your story.”
Stablecoins:
Why Visa’s New Stablecoin Efforts Could be a Game-Changer
Blockworks | Ben Strack
“Some of the largest ‘cross-border e-commerce’ players are showing increased interest in blockchain technology as they seek to improve the speed and cost of their payment processes, an industry participant noted.
Visa revealed Tuesday that, as part of pilot programs, it can now send USDC-denominated payouts via the Solana blockchain to Worldpay and Nuvei — merchant acquirers that can then route these payments in USDC to their end merchants.”
How PayPal's PYUSD Could Change the Crypto Landscape - Fireblocks' Ran Goldi
KITCO | Jordan Finneseth
“He said PayPal’s decision to launch its own stablecoin ‘is a significant development in the world of cryptocurrencies and blockchain technology as it indicates that even established retail FinTech companies with millions of users and businesses are recognizing the potential of blockchain for the future of cross-border payments. This move suggests that financial companies increasingly see the value in leveraging blockchain technology to improve their services,’ he said. ‘In the next 18-24 months, we should expect a race among retail fintechs creating their own stablecoins.’
Goldi said that the company’s decision to launch PYUSD on the Ethereum network is an overlooked strategic decision for three reasons.”
Central Bank Digital Currencies (CBDCs):
U.S. Fed’s Vice Chair Barr Says CBDC Decision Still a ‘Long Way’ Off
CoinDesk | Jesse Hamilton
“And even if it had completed its research, Barr said it wouldn’t make any move without ‘clear support from the executive branch and authorizing legislation from Congress.’ Such a bill would have to clear a divided Congress, and the idea of a digital dollar has already drawn sharp criticism from Republican lawmakers.”
House Committee Will Reopen Discussions on Digital Dollar in Sept. 14 Hearing
CoinTelegraph | Turner Wright
“In a Sept. 7 announcement, Republican lawmakers on the committee said they planned to hold a hearing discussing the implications of releasing a CBDC as well as ‘private sector alternatives.’ The ‘Digital Dollar Dilemma’ discussion will be held on Sept. 14, roughly two weeks before U.S. Securities and Exchange Commission Chair Gary Gensler will reportedly testify before the full committee.”
Regulation
CFTC Commissioner Calls for Crypto Regulatory Pilot Program
CoinTelegraph | Tuner Wright
“In a pre-recorded message for a Cato Institute event on Sept. 7, Caroline Pham said that following public roundtable discussions, she planned to propose a pilot program for digital asset markets, claiming the U.S. may soon need to ‘play catch-up’ to crypto-friendly jurisdictions. She suggested that the program would be similar to regulatory sandboxes previously introduced at the state level.”