Highlights

Kennedy Proposes Blockchain for U.S. Budget Transparency

Stripe Revives Crypto Payments with Enhanced Features

European Parliament Tightens Crypto Regulations

During a campaign rally in Michigan, U.S. presidential candidate Robert F. Kennedy Jr. proposed the innovative idea of placing the entire U.S. federal budget on the blockchain. Kennedy argued that this move would significantly enhance transparency and accountability by allowing all Americans to access and review every budget item at any time. He emphasized the potential for public scrutiny, suggesting that the detailed visibility into expenditures could help detect and deter wasteful spending. The proposal received applause from cryptocurrency enthusiasts who believe this could mark a revolutionary step towards reducing governmental corruption. Critics, however, voiced concerns that Kennedy’s plan might lead towards a central bank digital currency, despite his previous statements opposing such a move.

Stripe, a leading payments processor, announced its plan to reintroduce cryptocurrency payments, focusing initially on the USDC stablecoin across the Solana, Ethereum, and Polygon blockchains. This decision comes six years after Stripe halted crypto payments due to the high volatility of bitcoin and its inefficiencies as a medium of exchange. The reintroduction, slated for later this year, was revealed by co-founder and President John Collison during a keynote at the Global Internet Economy conference. Collison emphasized the improvements in crypto technology, including faster transaction speeds and lower costs, which now make cryptocurrencies a viable option for transactions. This strategic shift reflects Stripe’s renewed commitment to harnessing the potential of digital currencies in the global payment landscape.

The European Parliament recently voted to implement a new package of laws aimed at enhancing due diligence measures for crypto asset service providers (CASPs), including centralized exchanges and gambling services. The laws, which will also mandate checks on customers’ identities and require the reporting of suspicious activities, are part of efforts to combat money laundering within the sector. According to Patrick Hansen, Circle’s EU Strategy and Policy Director, the legislation will formally be adopted by the Council of the EU and take effect three years later. These developments follow the introduction of the MiCA regulatory framework, underscoring the EU’s commitment to more stringent regulatory oversight of the crypto industry while dispelling rumors about the potential ban on anonymous crypto wallets and self-custodial payments.

News

RFK Jr. wants to put the entire US budget on a blockchain

FBI warning against crypto money transmitters ‘appears’ to be aimed at mixers

SEC charges Texas mining firm and co-founders for $5.6 million fraud scheme

‘Lost’ Yuga Labs restructures again, with layoffs, new executive

Products

Stripe Brings Back Crypto Payments Via USDC Stablecoin

Bitcoin payments app Strike rolls out services to European users

Franklin Templeton lists Ethereum ETF on DTCC

Hong Kong’s ‘in-kind’ spot bitcoin and ether ETFs to start trading April 30

Regulation

EU’s anti-money laundering bill passes final vote, here’s what’s next for crypto-asset service providers

Republic First Bank closed by US regulators — crypto community reacts

SEC delays decision on listing and trading spot bitcoin ETF options, asks for public comments

Philippines orders removal of Binance from Google and Apple app stores

Funding

Pantera Capital seeks $1B for a new crypto fund: Report

Movement Labs raises $38 million to build layer 2 blockchain on Ethereum with Facebook tech

Pantera Capital solely funds $8 million Series A for web3 gaming firm InfiniGods

AI and Web3 startup Inference Labs secures $2.3 million in pre-seed funding

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Alpaca Finance Institutional Newsletter #82 was originally published in Alpaca Finance on Medium, where people are continuing the conversation by highlighting and responding to this story.

Highlights

Bitcoin Completes Fourth Halving, Promising Changes in Mining Rewards and Market Dynamics

Binance Shifts User Emergency Fund to Stablecoin USDC in Strategic Overhaul

Polkadot 2.0 Launches, Revolutionizing Blockchain Scalability and Interoperability

Bitcoin has just completed its fourth halving event at the 840,000th block, marking a significant milestone where mining rewards were halved from 6.25 BTC to 3.125 BTC. This periodic reduction, set every 210,000 blocks or roughly every four years, is a core mechanism of the Bitcoin protocol designed to control inflation and enhance scarcity. The event, eagerly anticipated by the crypto community, has sparked speculation about potential surges in Bitcoin’s price, with projections reaching up to $250,000. Meanwhile, major Bitcoin miners have been ramping up their operations in anticipation, underscoring the event’s critical impact on the mining landscape and Bitcoin’s long-term value trajectory.

Binance, the world’s largest cryptocurrency exchange, has recently transitioned all funds in its Secure Asset Fund for Users (SAFU) to USDC, a stablecoin pegged to the US dollar and issued by Circle Internet Financial. Established in 2018, SAFU acts as a financial safety net for users in dire circumstances. This shift is part of a broader strategic realignment under the new CEO, Richard Teng, who succeeded Changpeng Zhao following a significant legal settlement with US authorities. The SAFU, typically maintained at around $1 billion, aims to ensure stability and reliability through the adoption of a trusted and transparent stablecoin, with its value verifiable in real-time on the blockchain. This move reflects a commitment to securing customer assets and enhancing trust in the platform’s financial practices.

Polkadot 2.0 is poised to reshape the blockchain landscape by addressing critical challenges in scalability and interoperability through its innovative multichain protocol. As an open-source platform, Polkadot enables seamless cross-chain transfers of data and assets, promoting greater connectivity between diverse blockchains. The latest upgrade introduces features like dynamic core models and a coretime marketplace, enhancing the network’s flexibility and transaction capacity. These improvements aim to significantly boost Polkadot’s throughput, achieving speeds of up to 1 million transactions per second. With its revised governance model and collaborative approach to regulatory compliance, Polkadot 2.0 not only aims to enhance network efficiency and security but also sets a new standard for the development of decentralized applications and the broader Web3 ecosystem.

News

Bitcoin halving 2024 — Done and dusted!

Binance Converts Its Billion-Dollar ‘SAFU’ Emergency Fund into USDC

Blockchain data-availability protocol Avail announces 600M token airdrop

Google opens a new office in El Salvador: the boost for digital transformation

Products

How Polkadot 2.0 refines blockchain scalability and interoperability

Pi Network reaches 10M KYC’d users, but token is still not tradeable

Worldcoin launches its own ‘human-centric’ blockchain network

Tether announces restructuring to go beyond stablecoins

Regulation

Binance to return to India after paying $2M fine for non-compliance: Report

BWA Lays Down Self-Regulatory Guidelines on Token Listings for Indian Crypto Exchanges

South Africa to Start Work on Stablecoin Regime, Will Start by Considering Use Cases

Gary Gensler’s resignation ‘troll’ post disappoints Crypto X

Funding

Andreessen Horowitz raises $7.2B for new venture funds

Web3 Startups Raise Nearly $1.9B in Q1 2024 Despite Overall Downtrend in Crypto VC Interest

Avalon raises $10M to launch hybrid Web3 MMO

Web3 iGaming Software Provider DeGaming Secures €3.5M in Equity Funding From XVC Tech

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Alpaca Finance Institutional Newsletter #81 was originally published in Alpaca Finance on Medium, where people are continuing the conversation by highlighting and responding to this story.

Highlights

Crypto Markets Plunge as Geopolitical Tensions Escalate in the Middle East

Uniswap Labs Faces SEC Legal Action, Highlighting Regulatory Challenges in DeFi

BlackRock Hits Record $10.5 Trillion AUM with Strong Quarterly Growth and Strategic Acquisitions

Bitcoin and other cryptocurrencies took a significant hit following an escalation in geopolitical tensions after Iran attacked Israel. On April 13, Bitcoin’s value plummeted by over 8.4%, dropping from approximately $67,000 to $61,625 in response to the conflict. This sharp decrease in value wiped out over $130 million in market capitalization within minutes. The broader cryptocurrency market also felt the impact, with Ether and Solana experiencing drops of 9.81% and 15.96%, respectively. The global cryptocurrency market capitalization shrank by 8.19% to $2.23 trillion. The sell-off reflects the crypto market’s vulnerability to sudden political crises, underscoring the interconnectedness of global events and digital asset valuations.

Uniswap Labs, a prominent player in the decentralized finance (DeFi) sector, has been served a Wells Notice by the U.S. Securities and Exchange Commission (SEC), signaling potential legal action ahead. The Brooklyn-based developer of the Uniswap protocol, a major decentralized exchange, stated its readiness to contest the SEC’s charges in court. This situation marks a significant development in the ongoing regulatory challenges facing the crypto industry, particularly in how decentralized entities are treated under U.S. securities laws. Previously, the SEC has taken action against centralized crypto exchanges like Coinbase and Kraken, and now it appears to be extending its reach to decentralized protocols, a move that could set new precedents for the regulation of digital assets and their creators.

BlackRock has reported remarkable growth in its first quarter of 2024, with assets under management (AUM) reaching a new high of $10.5 trillion, a significant increase from $9.1 trillion in 2023. This growth in AUM was propelled by $76 billion in quarterly long-term net inflows, nearly 40% of the total for the entire previous year. The company also reported increased net income, rising from $1.2 billion in the first quarter of 2023 to approximately $1.5 billion in the same period in 2024, attributed to higher non-operating income and a reduced effective tax rate. Additionally, BlackRock is expanding its portfolio with the planned acquisition of Global Infrastructure Partners, aiming to enhance its infrastructure investment platform. BlackRock’s strategic moves and significant inflows underline its strong position and growing influence in both traditional and crypto financial markets.

News

Bitcoin nosedives as political tensions escalate in the Middle East

The SEC’s Suit Against Uniswap Is an Opening Attack Against DeFi

Winklevoss twins become co-owners of Bitcoin soccer club, inject $4.5M of BTC

Products

BlackRock smashes $10.5T record in Q1 managed assets

GBTC sees $166M outflows despite CEO’s ‘equilibrium’ remark

MarginFi outflows $190M as CEO rage quits amid token controversy

Worldcoin reaches 10M users, 70M transactions and at least 13 goats bought

Regulation

US Treasury official calls on Congress for ‘necessary tools’ to fight crypto-linked illicit finance

Coinbase files interlocutory appeal in its case against the SEC

EU’s MiCA Rules Have Had Little Influence on the European Crypto Market, Regulator Says

Nigeria’s Binance crackdown threatens Web3 industry

Funding

Blockchain Developer Monad Labs Raises $225M Led by Paradigm

Mystiko.Network Completes a $18 Million Seed Funding Round

Blockchain Prediction Layer Azuro Raises $11M After Pre-Launch Funding Round

Estée Lauder Backs $7 Million Raise For This Community-Powered Platform

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Alpaca Finance Institutional Newsletter #80 was originally published in Alpaca Finance on Medium, where people are continuing the conversation by highlighting and responding to this story.

Highlights

Genesis Sells $2.1 Billion in GBTC Shares to Purchase Bitcoin for Debt Settlement

PayPal Expands PYUSD Stablecoin Use for Fee-Free International Transfers

Coinbase Secures Legal Victory in Cryptocurrency Securities Case

In a strategic move to address its financial obligations, Genesis, a crypto lending company that has declared bankruptcy, executed a significant transaction by selling approximately 36 million shares of the Grayscale Bitcoin Trust (GBTC) for $2.1 billion. This sale enabled Genesis to acquire 32,041 Bitcoins, aiming to use these assets to settle debts with its creditors. This action followed a period of financial restructuring for Genesis, which included gaining permission from a U.S. bankruptcy court to liquidate its GBTC shares, initially valued at a lower price.

The proceeds from this sale and the subsequent Bitcoin purchase underscore Genesis’s commitment to navigating its bankruptcy proceedings while ensuring creditor repayment. Meanwhile, Coinbase has indicated that this large-scale transaction is likely to have a neutral impact on the broader cryptocurrency market, suggesting that the funds will remain within the crypto ecosystem.

PayPal is set to broaden the utility of its PYUSD stablecoin, enabling U.S. customers to conduct international money transfers without transaction fees through its Xoom service. This initiative allows users to convert PYUSD to USD and transfer funds across approximately 160 countries, reflecting PayPal’s strategy to offer more cost-effective cross-border payment solutions. This move aligns with a World Bank report highlighting the high costs associated with sending money internationally. By integrating PYUSD into Xoom, PayPal not only promotes the adoption of cryptocurrencies but also positions itself as a leader in digital assets.

Paypal’s push for its stablecoin’s increased usage comes amid a burgeoning stablecoin market, with Ripple also entering the scene with a stablecoin aimed at enterprise clients. This development indicates a competitive and growing interest in stablecoin solutions, with PayPal aiming to capture a significant share of this expanding market.

Coinbase, a major cryptocurrency exchange, has won a significant legal battle in the United States Court of Appeals for the Second Circuit, which ruled that secondary sales of cryptocurrencies on its platform do not constitute violations of the Securities Exchange Act. This ruling stems from a lawsuit that questioned whether cryptocurrencies traded on Coinbase were considered securities. The court’s decision, influenced by the interpretation of Coinbase’s user agreements over time, dismissed claims under the Securities Exchange Act due to insufficient evidence of transaction-specific contracts. This outcome not only highlights the complexities of applying traditional securities laws to cryptocurrency transactions but also underscores the ongoing debate over the regulatory classification of digital assets. Coinbase hailed the decision as a victory for clarity in the legal landscape of cryptocurrency trading, emphasizing its implications for the future oversight of digital assets and the necessity of regulatory clarity for fostering industry innovation.

News

Genesis purchases $2.1B of Bitcoin following GBTC sell-off

Binance Users Stake Record $13 Billion to Earn Saga Gaming Token Rewards

Coinbase Ethereum Scaler Base Is Booming — And It’s All Meme Coins, Of Course

Binance ends support for Bitcoin Ordinals

Products

US PayPal customers will be able to use stablecoin for international payments

Hybrid NFT standard combines ERC-20 and ERC-721 with low transaction fees

Pantera Capital’s crypto fund surges 66% amid market optimism

Australian Asset Manager Monochrome Applies With Cboe Australia for a Spot Bitcoin ETF, Eyes Decision by Mid-Year

Regulation

Coinbase cleared in lawsuit over crypto transactions

Argentine government passes registration requirements for crypto firms

Coinbase secures restricted dealer license in Canada, pushing expansion abroad amid SEC crackdown

SEC calls for comments on Fidelity, Grayscale and Bitwise spot Ether ETF applications

Funding

Bitkraft launches $275M gaming fund, bringing total managed assets to $1B

DeFi developers behind crypto exchange Phoenix close $20 million Series A round

Crypto Projects Receive Over $1.16 Billion in Venture Capital Funding in March

Planet Mojo Raises $10.5 Million in Strategic Financing Round

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Alpaca Finance Institutional Newsletter #79 was originally published in Alpaca Finance on Medium, where people are continuing the conversation by highlighting and responding to this story.