Crypto Scoop: Bitcoin Hits A 3-Month Low As Stakeholders React To SEC Lawsuits

While prices may be down this week, we see new crypto initiatives while stakeholders react to the SEC lawsuits. In this edition of the crypto scoop, we review the following:

• Price moves of top cryptocurrencies
• Stakeholders’ reaction to US SEC Lawsuits
• Tether’s recent initiatives
• Vitalik Buterin’s Ethereum roadmap
• Columbia and Brazil’s CBDC and regulatory initiatives
• Polygon and Uniswap’s updates

Bitcoin Hits 3-Month Low of $25,000, ETH Dips to $1,600

Cryptocurrencies experienced a significant decline on Wednesday and Thursday, as Bitcoin plummeted below the $25,000 mark and Ethereum dipped to $1,600. Several cryptocurrencies like MATIC, ADA, SOL, and XRP, among others, also plunged into the red. 

Bitcoin's drop below $25,000 marks the first time it has reached such levels in the past three months. During the week, a Bitcoin whale which had been dormant for 13 years, moved 50 BTC worth $ 1.2 million to a different wallet. The coins had been mined back in June 2010 and had been sitting still before this week. 

Furthermore, the BTC Fear and Greed Index, which indicates the overall sentiment surrounding Bitcoin, entered the "Fear" territory on June 13 and June 14. Bitcoin had not been in the “Fear” zone since the first half of March. However, bitcoin is once again trading above $25,000.

The Stakeholders’ Reaction To US SEC Vs Binance Lawsuit

Last week, the price of top cryptocurrencies hit turbulence when the US Security and Exchange Commission (SEC) filed a lawsuit against Binance and Coinbase, accusing them of operating without licensing. While the SEC tried to freeze Binance’s assets following the lawsuit, Binance proposed a compromise that allows Binance to meet its financial obligations while offering the SEC assurance of the safety of customers’ assets. 

Meanwhile, efforts are underway by some members of the United States House of Representatives to remove SEC Chair Gary Gensler from his position, citing alleged misconduct and abuse of power. Representative Warren Davidson introduced the SEC Stabilization Act with the aim of firing Gensler, although the legality of such a move is complex due to the nature of Gensler's appointment.

Meanwhile, Republican House Financial Services Committee members have criticised Gensler for using Rule 3b-16 amendments to impose his views on cryptocurrency assets. They have voiced concerns about the proposed definition of an "exchange" and its potential implications.

In the lawsuit against Binance, the SEC listed certain cryptocurrencies, including MATIC, SOL, and ADA, as securities.  While the crypto community contends the validity of these claims, the Robinhood crypto exchange announced it would be delisting MATIC, SOL and ADA. Users were advised to sell or transfer their holdings before the deadline, with a warning that the tokens would be automatically sold and converted to buying power on the app.

Additionally, Crypto.com noted that it would no longer be offering services to its institutional clients in the US, citing limited demand from interinstitutional investors in light of the current market landscape. 

While some exchanges might suspend some US operations, Hong Kong legislator Johnny Ng has invited global cryptocurrency exchanges. He encouraged exchanges, including Coinbase, to apply for licenses to operate in Hong Kong following the U.S. SEC's crackdown on unregistered exchanges noting they were “welcome.”

Vitalik Buterin Proposes Roadmap to Address Ethereum’s Scaling, Privacy and Wallet Security

Ethereum co-founder Vitalik Buterin has released a new roadmap addressing critical aspects of the network's development, including scaling, wallet security, and privacy. In his blog post titled "The Three Transitions," Buterin emphasises the need to tackle these components simultaneously to ensure the success of the blockchain.

He highlights layer 2 scaling as crucial for mass-market adoption, emphasises the importance of wallet security to prevent reliance on centralised entities, and underscores the need for privacy to protect user on-chain activity. Buterin also notes that deep changes in how applications and wallets interact with Ethereum are necessary. Overall, the roadmap aims to ensure Ethereum's growth and global accessibility.

Recent Developments in Tether: $1 Billion Minting, Chain Swaps, and Transparency Initiatives

Tether, the stablecoin issuer, recently minted $1 billion worth of its Tether stablecoin on the Ethereum blockchain. This comes just two months after its last minting in April. Tether's chief technology officer clarified that this new minting is an "inventory replenish" and will not impact the overall market cap of Tether. The freshly minted tokens will be used as inventory for future issuance requests and chain swaps.

In another development, Tether announced its plan to conduct a chain swap with a third-party exchange, converting 750 million USDT from Tron to Ethereum ERC20. The total supply of USDT will remain unchanged during this process.

Tether also recently released its reserve data, ending a legal battle to keep that information private. This move demonstrates the company's commitment to transparency.

However, there have been concerns among traders as millions of USDT stablecoins appeared to be selling off on Uniswap and Curve pools, causing the token to lose its peg to the US dollar temporarily. Balances of USDT on Curve's 3pool increased significantly, suggesting that traders exchanged USDT for other stablecoins like USD coin (USDC) and dai (DAI). 

Columbia Partners With Ripple To Pilot CBDC

Colombia is taking significant steps towards exploring the potential of central bank digital currencies (CBDCs) and enhancing its high-value payment system. Ripple, a software company founded by XRP cryptocurrency creators, has partnered with Colombia's central bank. The Central Bank of Colombia, in collaboration with the Ministry for Information and Communications Technologies (MinTIC), will leverage Ripple's CBDC platform to pilot various use cases.

Meanwhile, in Brazil, President Luiz Inácio Lula da Silva has signed a significant law that brings clarity to the regulatory landscape surrounding cryptocurrencies. The law establishes the roles of Brazil's central bank and securities regulator regarding the oversight of virtual asset service providers and token projects qualifying as securities. Under this law, the Central Bank of Brazil is authorised to regulate and supervise virtual asset service providers, ensuring compliance and security within the crypto industry.

Polygon Unveils Polygon 2.0

Ethereum Layer, 2 scaling solution Polygon, has introduced Polygon 2.0, a significant upgrade aimed at positioning the network as the "value layer of the internet." Polygon 2.0 expands upon the existing L2 chain by implementing a network of Layer 2 chains powered by Zero-Knowledge Proofs (ZKPs). These chains collaborate through a novel cross-chain coordination protocol, enabling virtually unlimited scalability and unified liquidity. 

With Polygon 2.0, users will experience the network as a single chain, allowing for safe and instant cross-chain interactions without compromising security or requiring additional trust assumptions. ZKPs ensure privacy and security by enabling parties to prove the validity of a statement without disclosing any further information.

Uniswap Unveils Customizable Liquidity Pools in Upcoming Version 4 Update

Uniswap, the largest decentralised exchange (dex) by global trade volume, has provided an update on its upcoming Version 4 (v4) dex iteration. The new version will introduce customisable liquidity pools through a feature called "hooks." These hooks act as plugins that allow developers to customise the interaction between pools, swaps, fees, and LP positions. 

According to Uniswap, this is a move to involve the community in its development by providing space for feedback and contribution. The v4 update will bring significant changes and enhance the flexibility and innovation potential of the Uniswap Protocol.

Rap Icon Snoop Dog Launches New NFT Initiative

Rap icon Snoop Dogg is entering the world of Web3 with a new NFT project called the Snoop Dogg Passport Series. This collection allows fans to follow Snoop Dogg's life on tour through exclusive content like behind-the-scenes videos and photos. NFT passport holders will also have access to future releases, including artwork and merchandise. 

According to Snoop Dogg, he sees digital merch as the future and hopes other artists will follow suit. The project collaborates with Web3 platform Transient Labs, which is known for leveraging blockchain to provide unique experiences.