Binance CEO CZ Zhao Files Petition To Dismiss SEC Lawsuit Overstepping Authority
Binance CEO Changpeng Zhao and his cryptocurrency exchange have filed a petition to dismiss the lawsuit brought against them by the SEC. The petition claims that the SEC overstepped its authority and distorted the securities laws in an attempt to regulate the crypto industry. Binance.US also filed a separate petition to have the charges against it dismissed. This is an ongoing story and more information will be provided as it becomes available.
Hong Kong Legislative Council Member Wu Kit-Chuang: We Have Received Help From Approximately 30 JPEX Victims, and the Amount Involved May Have Exceeded HK$100 Million.
Hong Kong Legislative Council member Wu Jiezhuang held a press conference today (18th) to respond to the suspected fraud incident of the virtual asset trading platform JPEX. He revealed that he has received about 30 requests for help from victims, and the amounts lost by each person are different, with some being six-digit numbers and some being seven-digit numbers. The total amount involved is estimated to be over 100 million Hong Kong dollars.
Bitcoin's Price Rebounds and Tests Short-Term Resistance, but Downtrend May Not Be Over
Bitcoin's price has risen from its weekly low of $25,000 and is testing short-term resistance at $26,400 for the second time this month. The Moving Average Convergence Divergence (MACD) indicator suggests that expected gains to $28,000 may be sustained this time. However, some analysts believe that there is still room for another dip, potentially to $22,000, before a bull market. The crypto market is experiencing shrinking liquidity due to concerns about regulation and the popularity of DeFi and staking platforms.
Factors That Could Trigger the Next Bull Run in the Crypto Market
For a bull run to occur in the crypto market, there needs to be a catalyst such as the approval of a Bitcoin ETF or the halvening in May 2020. These events would validate crypto as an asset class and reinforce the scarcity meme. While regulation is often viewed negatively in the crypto industry, better regulation could actually increase participation from consumers and institutions.
Former OCC Acting Director: Stablecoin regulation is conducive to the global adoption of the US dollar
On August 13th, former Acting Comptroller of the Currency (OCC) Brian Brooks stated that clear regulation of stablecoins would be beneficial for the adoption of the US dollar globally, although some US lawmakers believe it could be harmful to the financial system and economy. He pointed out that if the US government could create a framework that allows the US dollar to support stablecoins in a regulated way, the demand for this would flourish, which would be beneficial for the global adoption of the US dollar. The demand for US dollar stablecoins is a major driving factor for countries experiencing high inflation. At a time when governments around the world are hoping to decouple from the US dollar, the demand for stablecoins is a way for the US dollar to once again play a role.
Former OCC Acting Administrator: Stablecoin regulation is conducive to the global adoption of the US dollar
On August 13th, former OCC acting director and Binance US CEO Brian Brooks stated that clear regulation of stablecoins would be beneficial for the adoption of the US dollar globally, despite some US legislators believing it could be harmful to the financial system and economy. "If the US government can create a framework that allows the US dollar to support stablecoins in a regulated way, then the demand for this will flourish, which will be beneficial for the global adoption of the US dollar. But as long as we allow the government to suppress stablecoins, the opposite will happen," Brooks added that the demand for stablecoins is one way to make the US dollar play a role again as governments around the world seek to decouple from the US dollar. "This is indeed a very important policy issue. This has nothing to do with cryptocurrency, but with the role the US plays in the financial system." (The Block)
SEC delays decision on Ark Investment's proposed Bitcoin ETF
The US Securities and Exchange Commission (SEC) has delayed its decision on the proposed spot Bitcoin ETF by Ark Investment Management. The SEC announced a 21-day comment period for the ARK 21Shares Bitcoin ETF in a statement on August 11. The company first applied for a spot Bitcoin ETF in May. The SEC has until January 2024 to make a final decision and noted that regulation of the spot Bitcoin market is not a requirement for approval. Other large firms, including BlackRock, have also applied for spot Bitcoin ETFs, and some have updated their applications to include Coinbase as a custodian.
House Financial Services Chair Urges Regulation of Stablecoins Following PayPal's Launch
House Financial Services Committee Chair Patrick T. McHenry, R-N.C., has emphasized the importance of passing legislation to regulate stablecoins in response to PayPal's announcement of its own stablecoin. McHenry believes that stablecoins have the potential to be a key component of the 21st century payments system if they are issued under a clear regulatory framework. The House Financial Services Committee has already advanced a regulatory framework for payment stablecoins called the Clarity for Payment Stablecoins Act, which aims to protect consumers while fostering innovation in the U.S. However, some Democrats have expressed concerns that companies like Amazon and Facebook could issue their own digital currencies under the current bill.
Crypto Privacy Battle: US Businesses to Collect User IDs on $10,000 Crypto Purchases Sparks Controversy
US businesses will soon be required to collect personal information, such as name, address, and government ID, from individuals using over $10,000 worth of cryptocurrency for purchases. This has sparked a privacy battle in the crypto industry, with Coin Center suing the Treasury Department over concerns of unconstitutional surveillance. A judge dismissed the lawsuit, citing its premature nature, but Coin Center has appealed the decision.
SEC Chair Gary Gensler Shifts Focus to AI, Citing Potential Risks and Rewards
The chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, is shifting his focus from cryptocurrency to artificial intelligence (AI), a technology he believes is the most transformative of this generation. Gensler warns of the dangers of unchecked AI automation in finance, which could have cascading implications for trillions of dollars in assets overseen by the SEC. Gensler has proposed regulatory frameworks for AI, requiring trading houses and money managers to evaluate whether their use of AI or predictive data could lead to conflicts of interest. However, Gensler's shift in focus toward AI does not indicate the SEC loosening its grip on cryptocurrencies, as several lawsuits involving major crypto firms are still pending.
