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U.S. President Biden Vetoes Resolution Overturning SEC Guidance
U.S President Joe Biden signed a veto of a House Joint Resolution that would have repealed the Securities and Exchange Commission's (SEC) Staff Accounting Bulletin 121, he announced Friday afternoon.
SAB 121 is a controversial piece of SEC accounting guidance that directs financial institutions holding crypto for customers to keep the assets on their own balance sheets. Critics of the guidance say it makes it too difficult for financial institutions to work with crypto companies.
In his statement announcing the veto, Biden said he would not support any "measures that jeopardize the well-being of consumers and investors."
"By virtue of invoking the Congressional Review Act, this Republican-led resolution would inappropriately constrain the SEC’s ability to set forth appropriate guardrails and address future issues," his statement said. "This reversal of the considered judgment of SEC staff in this way risks undercutting the SEC’s broader authorities regarding accounting practices."
Biden's statement echoed his previous comments on wanting to work with Congress on legislation addressing the digital asset market, saying "appropriate guardrails that protect consumers and investors are necessary."
The veto came hours after banking groups and members of Congress sent a pair of letters to Biden's desk, asking him to sign the resolution to overturn SAB 121.
The banking organizations' letter said the guidance, which the Government Accounting Office said it blocks regulated banking groups from offering custody services. The lawmakers' letter urged the administration to at least work with the SEC to rescind the guidance if Biden still intended to veto the resolution, as he threatened before the House voted on the measure.
The resolution passed both chambers of Congress with easy majorities.
Earlier Friday, Sen. Ron Wyden (D-Ore.), a member of Biden's party who voted for the resolution, said the guidance creates a different standard for crypto than other assets in the financial sector while at CoinDesk's Consensus 2024 conference in Austin, Texas.
SAB 121 is a controversial piece of SEC accounting guidance that directs financial institutions holding crypto for customers to keep the assets on their own balance sheets. Critics of the guidance say it makes it too difficult for financial institutions to work with crypto companies.
In his statement announcing the veto, Biden said he would not support any "measures that jeopardize the well-being of consumers and investors."
"By virtue of invoking the Congressional Review Act, this Republican-led resolution would inappropriately constrain the SEC’s ability to set forth appropriate guardrails and address future issues," his statement said. "This reversal of the considered judgment of SEC staff in this way risks undercutting the SEC’s broader authorities regarding accounting practices."
Biden's statement echoed his previous comments on wanting to work with Congress on legislation addressing the digital asset market, saying "appropriate guardrails that protect consumers and investors are necessary."
The veto came hours after banking groups and members of Congress sent a pair of letters to Biden's desk, asking him to sign the resolution to overturn SAB 121.
The banking organizations' letter said the guidance, which the Government Accounting Office said it blocks regulated banking groups from offering custody services. The lawmakers' letter urged the administration to at least work with the SEC to rescind the guidance if Biden still intended to veto the resolution, as he threatened before the House voted on the measure.
The resolution passed both chambers of Congress with easy majorities.
Earlier Friday, Sen. Ron Wyden (D-Ore.), a member of Biden's party who voted for the resolution, said the guidance creates a different standard for crypto than other assets in the financial sector while at CoinDesk's Consensus 2024 conference in Austin, Texas.
Meet the Citizens of Consensus
You may have seen Starfox walking around the conference grounds parading a Jamie Dimon look-a-like with a whip. She’s part of the art/protest project, UNFK, created by serial entrepreneur Gunnar Lovelace. Outside of work, Starfox says she’s friends with Lovelace and his girlfriend and also plays in a glam rock David Bowie-esque band called Starfox and the Fleet.
“This is how I dress in my everyday life,” Starfox said. I don’t think she was joking.
Dustin Lee drove down from Idaho to attend Consensus this year, in part to gain visibility for his Web3 marketplace DeStore. The shop, which Dustin described as crypto meets Shopify, uses the NFT-focused RMRK protocol that “bridges the physical and digital worlds.” If you run into Lee in the afterhours, he might just throw you a kandi bracelet.
If you have ever heard the phrase “choose rich,” it might just be because of something Clemente Varas and Easy Eats put out into the world. The cowboy duo both work as content producers for Bodoggos Entertainment – a unit of Nick O’Neill. “The whole thing is about making crypto fun,” Eats said. A peak behind the screen: The average BoDoggos video often takes only five minutes to come up with, and things are filmed, edited and posted in a matter of minutes, though an educational or paid advertisement could take three days to make.
“Nick is even funnier in person,” Varas said.
David Quinn, the founder of Austin Embroidery in North Austin, first connected with Generative Goods at SXSW. This would be his first Web3 conference. He has run his company for three years and has been in the clothing industry for about a decade. Daniel Calderon writes code for Generative Goods, which creates unique one-of-a-kind physical items like hats and clothes (with a digital counterpart that can be traded). The company, headquartered in art hub Marfa, Texas, is more of a proof-of-concept today but is hoping to one day get its algorithmically produced merchandise in store.
“We want to prove we can produce unique, tangible assets at scale,” Calderon said.
Last year, the Association for Women in Crypto ran an inclusion survey of 500 people across 200 crypto firms that found around 80% of women in the industry felt either sexually, mentally or physically unsafe at work. Nearly 50% of men responded the same way. “Crypto scored lower than tech, generally,” AWC founder and CEO Amanda Wick said, although she is seeing signs of progress. She said that this year Consensus, for instance, felt more diverse. And that there’s evidence that firms can improve – especially if they’re competing for talent.
“If you don’t want toxic workplaces, you have to start with better companies,” she said.
David Bischoff is the community lead of TronDAO, the decentralized organization that technically comprises anyone who holds TRX tokens. Yesterday he said he met a woman from Africa who said oftentimes European banks are unwilling to accept wires from local institutions, and that TRON has become a lifeline for her. “It feels good actually doing good,” Bischoff said. “I’m an advocate for what I believe in.”
TronDAO's senior ecosystem dev and investment team lead Hunter Rogers, agreed. “The job takes a lot of coffee, but I love it,” Rogers said. Both are paid in USDT on Tron.
Thibault Palomares and Galen fully acknowledge that their meme coin has an inimitable ticker: $USA. Before leading a “community takeover” of the project four weeks ago, the two were artists and professional meme coin traders. They still are, but now they also carry the responsibility of running a charity that uses the profits from $USA to donate to charities that support military vets. So far, it’s raised over $38 million.
Jen Wheatley fell in love with Polygon the first time she interacted with it when introduced to it by Moonbeam co-founder Katie Butler, having come from the “Ethereum world” beforehand. A public relations professional with about 15 years of experience, Wheatley is now a director of marketing communications at Disruptive.
The Pink Alliance is trying to do the metaverse differently. While most metaverse projects tend to focus on gaming, they’re trying to incorporate comic book culture, co-founder Rasul Elder said. The system is looking to connect Ethereum to Solana to Polygon to Ordinals. “We haven’t figured out exactly how to do Ordinals yet,” Elder admitted, noting that Bitcoin doesn’t have native smart contract support.
“There’s a story to the lore – the whole project is based around the metaverse itself,” he said. Elder, and his colleagues, CEO Mr. Pink and artist Attabotty, want to give users toolkits so they can design their own characters and stories and inhabit the web.
“This is how I dress in my everyday life,” Starfox said. I don’t think she was joking.
Dustin Lee drove down from Idaho to attend Consensus this year, in part to gain visibility for his Web3 marketplace DeStore. The shop, which Dustin described as crypto meets Shopify, uses the NFT-focused RMRK protocol that “bridges the physical and digital worlds.” If you run into Lee in the afterhours, he might just throw you a kandi bracelet.
If you have ever heard the phrase “choose rich,” it might just be because of something Clemente Varas and Easy Eats put out into the world. The cowboy duo both work as content producers for Bodoggos Entertainment – a unit of Nick O’Neill. “The whole thing is about making crypto fun,” Eats said. A peak behind the screen: The average BoDoggos video often takes only five minutes to come up with, and things are filmed, edited and posted in a matter of minutes, though an educational or paid advertisement could take three days to make.
“Nick is even funnier in person,” Varas said.
David Quinn, the founder of Austin Embroidery in North Austin, first connected with Generative Goods at SXSW. This would be his first Web3 conference. He has run his company for three years and has been in the clothing industry for about a decade. Daniel Calderon writes code for Generative Goods, which creates unique one-of-a-kind physical items like hats and clothes (with a digital counterpart that can be traded). The company, headquartered in art hub Marfa, Texas, is more of a proof-of-concept today but is hoping to one day get its algorithmically produced merchandise in store.
“We want to prove we can produce unique, tangible assets at scale,” Calderon said.
Last year, the Association for Women in Crypto ran an inclusion survey of 500 people across 200 crypto firms that found around 80% of women in the industry felt either sexually, mentally or physically unsafe at work. Nearly 50% of men responded the same way. “Crypto scored lower than tech, generally,” AWC founder and CEO Amanda Wick said, although she is seeing signs of progress. She said that this year Consensus, for instance, felt more diverse. And that there’s evidence that firms can improve – especially if they’re competing for talent.
“If you don’t want toxic workplaces, you have to start with better companies,” she said.
David Bischoff is the community lead of TronDAO, the decentralized organization that technically comprises anyone who holds TRX tokens. Yesterday he said he met a woman from Africa who said oftentimes European banks are unwilling to accept wires from local institutions, and that TRON has become a lifeline for her. “It feels good actually doing good,” Bischoff said. “I’m an advocate for what I believe in.”
TronDAO's senior ecosystem dev and investment team lead Hunter Rogers, agreed. “The job takes a lot of coffee, but I love it,” Rogers said. Both are paid in USDT on Tron.
Thibault Palomares and Galen fully acknowledge that their meme coin has an inimitable ticker: $USA. Before leading a “community takeover” of the project four weeks ago, the two were artists and professional meme coin traders. They still are, but now they also carry the responsibility of running a charity that uses the profits from $USA to donate to charities that support military vets. So far, it’s raised over $38 million.
Jen Wheatley fell in love with Polygon the first time she interacted with it when introduced to it by Moonbeam co-founder Katie Butler, having come from the “Ethereum world” beforehand. A public relations professional with about 15 years of experience, Wheatley is now a director of marketing communications at Disruptive.
The Pink Alliance is trying to do the metaverse differently. While most metaverse projects tend to focus on gaming, they’re trying to incorporate comic book culture, co-founder Rasul Elder said. The system is looking to connect Ethereum to Solana to Polygon to Ordinals. “We haven’t figured out exactly how to do Ordinals yet,” Elder admitted, noting that Bitcoin doesn’t have native smart contract support.
“There’s a story to the lore – the whole project is based around the metaverse itself,” he said. Elder, and his colleagues, CEO Mr. Pink and artist Attabotty, want to give users toolkits so they can design their own characters and stories and inhabit the web.
Wall Street Asks Biden Not to Veto Congress' Rejection of SEC Crypto Policy
The groups that lobby for big-bank interests in Washington asked the White House to step back from its stated intention to kill Congress' effort to cancel a controversial Securities and Exchange Commission crypto policy.
Two of the digital assets sector's biggest allies on Capitol Hill also sent a similar request to the president.
In a rare lobbying overlap with crypto world, Wall Street banks and members of Congress are asking President Joe Biden to reverse course on his vow to veto the U.S. congressional resolution to overturn the U.S. Securities and Exchange Commission's (SEC) crypto accounting policy.
In recent bipartisan votes that saw many members of Biden's party rebuff his opposition, Congress decided to reject SEC's Staff Accounting Bulletin No. 121 (SAB 121) – a controversial accounting standard that would require banks to treat customers' digital assets differently than other assets, demanding they be kept on a bank's balance sheet. Crypto companies have argued this threatens their ability to do business with banks, and the bankers agree.
"SAB 121 effectively precludes regulated banking organizations from offering digital asset custody at scale since it treats the assets as if they are owned rather than simply custodied by a banking organization," according to a letter to Biden on Friday, signed by several groups including the American Bankers Association and Financial Services Forum. "Institutions that are forced to record custodied digital assets on balance sheet are subjected to higher capital, liquidity, and other prudential requirements, unlike their non-bank competitors."
The letter came the same day Sen. Cynthia Lummis (R-Wyo.) and Rep. Patrick McHenry (R-N.C.) published their own letter to Biden, dated May 30, similarly asking him to not veto, or at least "work with the SEC to rescind the staff guidance."
"Rescinding SAB 121 is well within the SEC’s authority and there is ample precedent for revisiting a staff accounting bulletin," the letter said. "In fact, most staff accounting bulletins over the last three decades have been revisions and rescissions of prior guidance."
Seven other representatives signed onto the letter, including Reps. Mike Flood (R-Neb.) and Wiley Nickel (D-N.C.), the sponsors of the resolution.
Biden's threat to veto the resolution noted that erasing the rule under the Congressional Review Act would mean nothing similar can be implemented by the SEC in the future, which would "inappropriately constrain the SEC’s ability to ensure appropriate guardrails and address future issues related to crypto-assets including financial stability."
The group of 11 Senate Democrats who went against the president included Majority Leader Chuck Schumer (D-N.Y.) and Sen. Ron Wyden (D-Ore.), the chairman of the Senate Finance Committee, who said at CoinDesk's Consensus 2024 on Friday that the SEC's policy "basically sets up a different standard for crypto than everybody else has in the financial sector."
Read More: U.S. Sen. Wyden: House 'Right' to Pursue Crypto Bill, Late in Session for More Progress
Last week, SEC Chair Gary Gensler sought to explain SAB 121 as an attempt for the regulator to respond to the turmoil and investor harms happening in crypto during 2022. He argued it was "just" a staff bulletin meant to address the fact that the failures of collapsing crypto firms were treating customer assets as part of their bankruptcy estates.
Biden has until Monday to make a final decision on whether to veto the resolution or not.
Two of the digital assets sector's biggest allies on Capitol Hill also sent a similar request to the president.
In a rare lobbying overlap with crypto world, Wall Street banks and members of Congress are asking President Joe Biden to reverse course on his vow to veto the U.S. congressional resolution to overturn the U.S. Securities and Exchange Commission's (SEC) crypto accounting policy.
In recent bipartisan votes that saw many members of Biden's party rebuff his opposition, Congress decided to reject SEC's Staff Accounting Bulletin No. 121 (SAB 121) – a controversial accounting standard that would require banks to treat customers' digital assets differently than other assets, demanding they be kept on a bank's balance sheet. Crypto companies have argued this threatens their ability to do business with banks, and the bankers agree.
"SAB 121 effectively precludes regulated banking organizations from offering digital asset custody at scale since it treats the assets as if they are owned rather than simply custodied by a banking organization," according to a letter to Biden on Friday, signed by several groups including the American Bankers Association and Financial Services Forum. "Institutions that are forced to record custodied digital assets on balance sheet are subjected to higher capital, liquidity, and other prudential requirements, unlike their non-bank competitors."
The letter came the same day Sen. Cynthia Lummis (R-Wyo.) and Rep. Patrick McHenry (R-N.C.) published their own letter to Biden, dated May 30, similarly asking him to not veto, or at least "work with the SEC to rescind the staff guidance."
"Rescinding SAB 121 is well within the SEC’s authority and there is ample precedent for revisiting a staff accounting bulletin," the letter said. "In fact, most staff accounting bulletins over the last three decades have been revisions and rescissions of prior guidance."
Seven other representatives signed onto the letter, including Reps. Mike Flood (R-Neb.) and Wiley Nickel (D-N.C.), the sponsors of the resolution.
Biden's threat to veto the resolution noted that erasing the rule under the Congressional Review Act would mean nothing similar can be implemented by the SEC in the future, which would "inappropriately constrain the SEC’s ability to ensure appropriate guardrails and address future issues related to crypto-assets including financial stability."
The group of 11 Senate Democrats who went against the president included Majority Leader Chuck Schumer (D-N.Y.) and Sen. Ron Wyden (D-Ore.), the chairman of the Senate Finance Committee, who said at CoinDesk's Consensus 2024 on Friday that the SEC's policy "basically sets up a different standard for crypto than everybody else has in the financial sector."
Read More: U.S. Sen. Wyden: House 'Right' to Pursue Crypto Bill, Late in Session for More Progress
Last week, SEC Chair Gary Gensler sought to explain SAB 121 as an attempt for the regulator to respond to the turmoil and investor harms happening in crypto during 2022. He argued it was "just" a staff bulletin meant to address the fact that the failures of collapsing crypto firms were treating customer assets as part of their bankruptcy estates.
Biden has until Monday to make a final decision on whether to veto the resolution or not.
Uniswap Postpones Protocol Upgrade Vote; UNI Tumbles 9%
The Uniswap Foundation Friday announced a postponement of a proposal upgrade vote that would have allowed rewards for UNI holders who staked and delegated their tokens.
"Over the last week, a stakeholder raised a new issue relating to this work that requires additional diligence on our end to fully vet," said the Foundation. "Due to the immutable nature and sensitivity of our proposed upgrade, we have made the difficult decision to postpone posting this vote."
Last week, we announced that the first proposal to activate Uniswap Protocol Governance would be deployed onchain today. Over the last week, a stakeholder raised a new issue relating to this work that requires additional diligence on our end to fully vet. Due to the immutable… https://t.co/g35pKG4UTA
— Uniswap Foundation (@UniswapFND) May 31, 2024
Uniswap's {{UNI}} is lower by 8.75% to $10.20 on the news.
This is a developing story. Please check back for updates.
"Over the last week, a stakeholder raised a new issue relating to this work that requires additional diligence on our end to fully vet," said the Foundation. "Due to the immutable nature and sensitivity of our proposed upgrade, we have made the difficult decision to postpone posting this vote."
Last week, we announced that the first proposal to activate Uniswap Protocol Governance would be deployed onchain today. Over the last week, a stakeholder raised a new issue relating to this work that requires additional diligence on our end to fully vet. Due to the immutable… https://t.co/g35pKG4UTA
— Uniswap Foundation (@UniswapFND) May 31, 2024
Uniswap's {{UNI}} is lower by 8.75% to $10.20 on the news.
This is a developing story. Please check back for updates.
U.S. Sen. Wyden: House 'Right' to Pursue Crypto Bill, Late in Session for More Progress
The chairman of the Senate Finance Committee told a Consensus 2024 audience that the House of Representatives was on the right track with the FIT21 bill.
Wyden said he and others in the Senate decided to slam the brakes on the Securities and Exchange Commission's controversial crypto accounting standard and reconsider using a "different standard" on the custody of digital assets.
AUSTIN, Texas – Sen. Ron Wyden (D-Ore.), one of the U.S. Senate Democrats who've shown some support for crypto issues, cast doubt Friday that a legislative solution for the industry would move quickly, but he suggested to an audience at CoinDesk's Consensus 2024 that the momentum will continue next year in Washington.
In the wake of the recent approval of the Financial Innovation and Technology for the 21st Century Act (FIT21) that was driven by Rep. Patrick McHenry (R-N.C.) in the House of Representatives – drawing support from a third of the Democrats there – the legislation to establish digital assets market structure is now in the hands of the Senate.
"It's getting late in this session, so it's unclear how far that bill will move," Wyden said at the event in Austin, Texas. "But I think Chairman McHenry is right to establish a kind of regulatory framework and put a sharper focus on fighting fraud and rip-off artists."
"We've made a lot of headway, but there's a long way to go," Wyden said.
Read More: U.S. Lawmaker at Center of Crypto Negotiation Predicts Digital Assets Law by Next Year
Wyden, the chairman of the Senate Finance Committee, was among the 11 Senate Democrats who joined Republicans in seeking to overturn the U.S. Securities and Exchange Commission's crypto accounting policy known as Staff Accounting Bulletin No. 121 (SAB 121). Though the House and Senate approved a resolution to overturn the policy, President Joe Biden has threatened to veto it.
"It basically sets up a different standard for crypto than everybody else has in the financial sector with respect to custody," Wyden said. "A group of us said, 'Let's just hold on here and take the time to make sense and not just establish a whole separate unique barrier to storing customers' crypto.'"
The senator, who is also a member of the Congressional Internet Caucus, said he supports stablecoins and is rooting for innovations in blockchain technology, such as in the creation of portable medical records.
He said Congress often struggles with new technology, but he added that crypto is a "great issue for people to run on" in this year's congressional elections.
"There's no question that there's growing interest here," he said. "It's being driven by a lot of young, creative people."
Wyden said he and others in the Senate decided to slam the brakes on the Securities and Exchange Commission's controversial crypto accounting standard and reconsider using a "different standard" on the custody of digital assets.
AUSTIN, Texas – Sen. Ron Wyden (D-Ore.), one of the U.S. Senate Democrats who've shown some support for crypto issues, cast doubt Friday that a legislative solution for the industry would move quickly, but he suggested to an audience at CoinDesk's Consensus 2024 that the momentum will continue next year in Washington.
In the wake of the recent approval of the Financial Innovation and Technology for the 21st Century Act (FIT21) that was driven by Rep. Patrick McHenry (R-N.C.) in the House of Representatives – drawing support from a third of the Democrats there – the legislation to establish digital assets market structure is now in the hands of the Senate.
"It's getting late in this session, so it's unclear how far that bill will move," Wyden said at the event in Austin, Texas. "But I think Chairman McHenry is right to establish a kind of regulatory framework and put a sharper focus on fighting fraud and rip-off artists."
"We've made a lot of headway, but there's a long way to go," Wyden said.
Read More: U.S. Lawmaker at Center of Crypto Negotiation Predicts Digital Assets Law by Next Year
Wyden, the chairman of the Senate Finance Committee, was among the 11 Senate Democrats who joined Republicans in seeking to overturn the U.S. Securities and Exchange Commission's crypto accounting policy known as Staff Accounting Bulletin No. 121 (SAB 121). Though the House and Senate approved a resolution to overturn the policy, President Joe Biden has threatened to veto it.
"It basically sets up a different standard for crypto than everybody else has in the financial sector with respect to custody," Wyden said. "A group of us said, 'Let's just hold on here and take the time to make sense and not just establish a whole separate unique barrier to storing customers' crypto.'"
The senator, who is also a member of the Congressional Internet Caucus, said he supports stablecoins and is rooting for innovations in blockchain technology, such as in the creation of portable medical records.
He said Congress often struggles with new technology, but he added that crypto is a "great issue for people to run on" in this year's congressional elections.
"There's no question that there's growing interest here," he said. "It's being driven by a lot of young, creative people."
Bitcoin Breaks to Low End of Trading Range, but June Data Could Be Next Catalyst
The price of bitcoin {{BTC}} has traded in an exceptionally tight trading range surrounding $68,000 in the days following the U.S. Memorial Day holiday, but declined to near the week's low in Friday morning trading hours.
At 11:45 am ET, bitcoin was changing hands at $67,300, lower by 1% over the past 24 hours and down by more than 2% from two hours earlier when it briefly rose above $69,000. The broader CoinDesk 20 was down 1.1% over the last day.
May, though, has been strong for bitcoin, which is now higher by 11% since beginning the month at around the $60,000 level. That's underperformed the CoinDesk 20's roughly 20% advance, fueled by a 31% gain in the price of ether {{ETH}} thanks to the surprising regulatory turnaround in the prospects for a spot ETF for that asset.
Macro conditions could provide next catalyst
This week's muted action in bitcoin – the price has essentially stayed in the $67,000-$69,000 range – came alongside struggles for other risk assets, U.S. stocks amongst them. While still remaining close to all-time highs, the Nasdaq is lower by about 2% this week, while the S&P 500 is off by roughly 1.5%.
U.S. economic data continued to have the scent of stagflation, with the April Core PCE Price Index up 2.8% year-over-year, in line with expectations and the same pace as the previous month. The May Chicago PMI plunged to 35.4 versus expectations for 41 and 37.9 in April. Only in the depths of the 2008/2009 global financial crisis and the March/April 2020 Covid lockdowns has May's weak read been matched. The bond market rallied following the news, with the 10-year U.S. Treasury yield down 5.5 basis points to 4.50%.
June begins Saturday and next week should bring a bit more clarity to the U.S. economic picture thanks to Monday's national PMI report and Friday's national employment report. Confirmation of softening economic conditions, and with those improved prospects for lower interest rates, might prove to be the catalyst for bitcoin's attempt at breaching its all time high above $73,000 set in March. Strong economic data, however, could mean a retest of the May lows.
At 11:45 am ET, bitcoin was changing hands at $67,300, lower by 1% over the past 24 hours and down by more than 2% from two hours earlier when it briefly rose above $69,000. The broader CoinDesk 20 was down 1.1% over the last day.
May, though, has been strong for bitcoin, which is now higher by 11% since beginning the month at around the $60,000 level. That's underperformed the CoinDesk 20's roughly 20% advance, fueled by a 31% gain in the price of ether {{ETH}} thanks to the surprising regulatory turnaround in the prospects for a spot ETF for that asset.
Macro conditions could provide next catalyst
This week's muted action in bitcoin – the price has essentially stayed in the $67,000-$69,000 range – came alongside struggles for other risk assets, U.S. stocks amongst them. While still remaining close to all-time highs, the Nasdaq is lower by about 2% this week, while the S&P 500 is off by roughly 1.5%.
U.S. economic data continued to have the scent of stagflation, with the April Core PCE Price Index up 2.8% year-over-year, in line with expectations and the same pace as the previous month. The May Chicago PMI plunged to 35.4 versus expectations for 41 and 37.9 in April. Only in the depths of the 2008/2009 global financial crisis and the March/April 2020 Covid lockdowns has May's weak read been matched. The bond market rallied following the news, with the 10-year U.S. Treasury yield down 5.5 basis points to 4.50%.
June begins Saturday and next week should bring a bit more clarity to the U.S. economic picture thanks to Monday's national PMI report and Friday's national employment report. Confirmation of softening economic conditions, and with those improved prospects for lower interest rates, might prove to be the catalyst for bitcoin's attempt at breaching its all time high above $73,000 set in March. Strong economic data, however, could mean a retest of the May lows.
Japanese Crypto Exchange DMM Bitcoin Suffers $305M Hack
4,502.9 BTC ($305 million) was stolen from the exchange.
DMM Bitcoin said it will guarantee the full amount stolen.
All spot buys have been temporarily restricted and customers withdrawing yen may face delays.
DMM Bitcoin, a Japanese cryptocurrency exchange, said it lost 48 billion yen ($305 million) of bitcoin {{BTC}} following a hack.
In a blog post on its website, DMM Bitcoin said 4,502.9 BTC "leaked" out of the exchange. Measures have been taken to avoid further unauthorized outflows.
"Please be assured that we will procure the equivalent amount of BTC equivalent to the outflow with the support of the group companies and guarantee the full amount," DMM Bitcoin said.
The exchange has restricted all spot buys on the platform and added that Japanese yen withdrawals "may take more time than usual."
The loss marks the second largest in the region. Coincheck was hacked for 58 billion yen in 2018.
DMM Bitcoin said it will guarantee the full amount stolen.
All spot buys have been temporarily restricted and customers withdrawing yen may face delays.
DMM Bitcoin, a Japanese cryptocurrency exchange, said it lost 48 billion yen ($305 million) of bitcoin {{BTC}} following a hack.
In a blog post on its website, DMM Bitcoin said 4,502.9 BTC "leaked" out of the exchange. Measures have been taken to avoid further unauthorized outflows.
"Please be assured that we will procure the equivalent amount of BTC equivalent to the outflow with the support of the group companies and guarantee the full amount," DMM Bitcoin said.
The exchange has restricted all spot buys on the platform and added that Japanese yen withdrawals "may take more time than usual."
The loss marks the second largest in the region. Coincheck was hacked for 58 billion yen in 2018.
Bybit Confirms Executive Shake Up After Notcoin Deposit Delays
Bybit confirmed several executives have "changed roles" following a delay in notcoin deposits earlier this month.
The exchange issued $32 million in compensation to 320,000 users.
Cryptocurrency exchange Bybit has confirmed reports that several executives have "changed roles" after a botched notcoin (NOT) launch resulted in $23 million in compensation being sent to 320,000 users.
News outlet Wu Blockchain initially reported that several of the exchange’s executives "voluntarily resigned" and that it has recruited new technical and spot managers.
“We are aware of the recent news regarding our executive movements,” a Bybit spokesperson told CoinDesk. “Bybit regularly updates its organizational structure to align with our strategic goals. Together with the team, we made a joint commitment to placing the right people in the right roles.”
Notcoin is a game based on the instant messaging platform Telegram. It is one of the largest cryptocurrency gaming projects with 35 million users. Early adopters of the game earned in-game balances that could eventually be converted to a Notcoin airdrop at a 1000:1 ratio.
On May 16, users faced delays in depositing the newly issued notcoin to Bybit, which resulted in losses as they couldn’t immediately sell the asset. The exchange received 370,000 on-chain transactions; 70% of deposits were credited before the market went live.
“We prioritized customer interests and conducted a thorough internal review to enhance the customer experience for the future," the Bybit spokesperson added. “This improvement led to some leadership role changes, which we believe are essential.”
Notcoin is currently trading at over $0.0115 cent, having more than doubled from a low of $0.0047 last week, according to CoinMarketCap.
The exchange issued $32 million in compensation to 320,000 users.
Cryptocurrency exchange Bybit has confirmed reports that several executives have "changed roles" after a botched notcoin (NOT) launch resulted in $23 million in compensation being sent to 320,000 users.
News outlet Wu Blockchain initially reported that several of the exchange’s executives "voluntarily resigned" and that it has recruited new technical and spot managers.
“We are aware of the recent news regarding our executive movements,” a Bybit spokesperson told CoinDesk. “Bybit regularly updates its organizational structure to align with our strategic goals. Together with the team, we made a joint commitment to placing the right people in the right roles.”
Notcoin is a game based on the instant messaging platform Telegram. It is one of the largest cryptocurrency gaming projects with 35 million users. Early adopters of the game earned in-game balances that could eventually be converted to a Notcoin airdrop at a 1000:1 ratio.
On May 16, users faced delays in depositing the newly issued notcoin to Bybit, which resulted in losses as they couldn’t immediately sell the asset. The exchange received 370,000 on-chain transactions; 70% of deposits were credited before the market went live.
“We prioritized customer interests and conducted a thorough internal review to enhance the customer experience for the future," the Bybit spokesperson added. “This improvement led to some leadership role changes, which we believe are essential.”
Notcoin is currently trading at over $0.0115 cent, having more than doubled from a low of $0.0047 last week, according to CoinMarketCap.
Tether Buys $100M Worth of Bitdeer Shares With Option to Purchase $50M More
Bitdeer generated $100 million in proceeds from the private placement, which could grow to $150 million if fully exercised.
Tether now has a unit specifically focused on investments in bitcoin mining.
Stablecoin company Tether has agreed to purchase up to $150 million worth of shares in bitcoin {{BTC}} miner Bitdeer (BTDR).
Bitdeer entered into a subscription agreement for the private placement of 18,587,360 Class A ordinary shares, generating $100 million in proceeds, according to an announcement on Friday.
The agreement also includes a warrant to purchase an additional 5 million shares at $10 apiece, which will provide an additional $50 million if fully exercised.
Bitdeer intends to use the proceeds to fund its data center expansion and ASIC-based mining rig development, the Singapore-based company said.
Shares of Bitdeer jumped over 4% to $6.08 in pre-market trading after the announcement.
Tether, the developer of the world’s largest stablecoin, USDT, recently split into four divisions to reflect its wider interest in developing the crypto economy. One of these four units is focused on investments in bitcoin mining.
Read More: Bitcoin Miner Bitdeer Is 'Differentiated' From Peers, Shares Are Cheap: Benchmark
Tether now has a unit specifically focused on investments in bitcoin mining.
Stablecoin company Tether has agreed to purchase up to $150 million worth of shares in bitcoin {{BTC}} miner Bitdeer (BTDR).
Bitdeer entered into a subscription agreement for the private placement of 18,587,360 Class A ordinary shares, generating $100 million in proceeds, according to an announcement on Friday.
The agreement also includes a warrant to purchase an additional 5 million shares at $10 apiece, which will provide an additional $50 million if fully exercised.
Bitdeer intends to use the proceeds to fund its data center expansion and ASIC-based mining rig development, the Singapore-based company said.
Shares of Bitdeer jumped over 4% to $6.08 in pre-market trading after the announcement.
Tether, the developer of the world’s largest stablecoin, USDT, recently split into four divisions to reflect its wider interest in developing the crypto economy. One of these four units is focused on investments in bitcoin mining.
Read More: Bitcoin Miner Bitdeer Is 'Differentiated' From Peers, Shares Are Cheap: Benchmark
First Mover Americas: Crypto Market Flat Ahead of U.S. Inflation Data
This article originally appeared in First Mover, CoinDesk’s daily newsletter, putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day.
Latest Prices
Top Stories
Crypto prices were little changed during the European morning with traders possibly keeping their powder dry ahead of the latest U.S. inflation data. The personal-consumption expenditure (PCE) data is scheduled for release at 8:30 EST (12:30 UTC) and will offer the latest clues on the Fed's next interest-rate moves. Bitcoin sits at $68,100 at the time of writing, an increase of around 0.4% in the last 24 hours. The broader digital asset market, as measured by the CoinDesk 20 Index (CD20), has risen by just under 0.5%, with the majority of its constituents showing changes of less than 1% in either direction.
The Donald Trump-themed meme coin TRUMP plummeted Thursday after the former president was found guilty of falsifying business records. The token sank as much as 35% after the verdict. Meanwhile, Jeo Boden, a meme coin inspired by President Joe Biden, soared 20%. TRUMP soon recovered though, rallying nearly 50% to just under $17, even higher than before the verdict, according to CoinGecko data. TRUMP is currently priced at $14.39, an increase of over 11% in the last 24 hours. On Polymarket, the blockchain-powered prediction market, traders continued to place money on Trump defeating Biden in the November election. Trump is well ahead – with 56% odds of winning, versus 38% for Biden – even after the verdict.
Ripple CEO Brad Garlinghouse predicts that more exchange-traded funds will list in the U.S. after the expected approval of a spot ether ETF. It is "inevitable" that there would be an ETF tracking Ripple's XRP and equivalent products for SOL and ADA, Garlinghouse said at Consensus 2024 in Austin, Texas. He added that there would be a significant regulatory process before they are approved, but in the end these will be "speed bumps." Garlinghouse also took a swipe at the SEC for its approach to crypto. "[SEC Chair] Gary Gensler has been called to Congress, and when asked if ether is a security, he won't answer the question. Yet, he insists that the rules are very clear and don't need updating," he said.
Chart of the Day
Notional open interest in Binance's SHIB futures, which are 1,000 SHIB per contract, has exceeded the $100 million mark.
Historically, this has been a contrary indicator, paving the way for notable price pullbacks in bitcoin and the broader market.
Source: CoinGlass
- Omkar Godbole
Trending Posts
Bitcoin's Short Term Momentum Flips Bearish; Support Under $65K
As Random Celebs Like Caitlyn Jenner Embrace Solana Meme Coins, Early Hoarders Fare Best
Meet Mike Novogratz, the Political Commentator
Latest Prices
Top Stories
Crypto prices were little changed during the European morning with traders possibly keeping their powder dry ahead of the latest U.S. inflation data. The personal-consumption expenditure (PCE) data is scheduled for release at 8:30 EST (12:30 UTC) and will offer the latest clues on the Fed's next interest-rate moves. Bitcoin sits at $68,100 at the time of writing, an increase of around 0.4% in the last 24 hours. The broader digital asset market, as measured by the CoinDesk 20 Index (CD20), has risen by just under 0.5%, with the majority of its constituents showing changes of less than 1% in either direction.
The Donald Trump-themed meme coin TRUMP plummeted Thursday after the former president was found guilty of falsifying business records. The token sank as much as 35% after the verdict. Meanwhile, Jeo Boden, a meme coin inspired by President Joe Biden, soared 20%. TRUMP soon recovered though, rallying nearly 50% to just under $17, even higher than before the verdict, according to CoinGecko data. TRUMP is currently priced at $14.39, an increase of over 11% in the last 24 hours. On Polymarket, the blockchain-powered prediction market, traders continued to place money on Trump defeating Biden in the November election. Trump is well ahead – with 56% odds of winning, versus 38% for Biden – even after the verdict.
Ripple CEO Brad Garlinghouse predicts that more exchange-traded funds will list in the U.S. after the expected approval of a spot ether ETF. It is "inevitable" that there would be an ETF tracking Ripple's XRP and equivalent products for SOL and ADA, Garlinghouse said at Consensus 2024 in Austin, Texas. He added that there would be a significant regulatory process before they are approved, but in the end these will be "speed bumps." Garlinghouse also took a swipe at the SEC for its approach to crypto. "[SEC Chair] Gary Gensler has been called to Congress, and when asked if ether is a security, he won't answer the question. Yet, he insists that the rules are very clear and don't need updating," he said.
Chart of the Day
Notional open interest in Binance's SHIB futures, which are 1,000 SHIB per contract, has exceeded the $100 million mark.
Historically, this has been a contrary indicator, paving the way for notable price pullbacks in bitcoin and the broader market.
Source: CoinGlass
- Omkar Godbole
Trending Posts
Bitcoin's Short Term Momentum Flips Bearish; Support Under $65K
As Random Celebs Like Caitlyn Jenner Embrace Solana Meme Coins, Early Hoarders Fare Best
Meet Mike Novogratz, the Political Commentator
Crypto Bettors Lay 17% Odds on Donald Trump in Jail Before Election Day
Crypto punters on Polymarket give Donald Trump a 17% chance of going to jail before the November U.S. presidential election.
The market for the bet has seen $900,000 in wagers from crypto users since its creation in January.
Crypto punters are giving Donald Trump a 17% chance of going to jail before the U.S. presidential election in November, odds on predictions application Polymarket show.
Trump was found guilty on Thursday by a New York jury on all 34 counts. He was accused of falsifying business records, becoming the first former president to be convicted in U.S. courts. Trump pleaded not guilty and said he will "keep fighting until the end," according to the BBC.
Data shows that a market for “Trump in jail before election day?” saw increased buying and selling activity on Friday. The market was created in January and has racked up $900,000 in bets from crypto users.
The market will resolve to "Yes" if Trump spends at least 48 consecutive hours in custody in a jail or prison between Jan. 5 and 11:59 p.m. ET on Nov. 5. Otherwise, it resolves to "No.”
As of European morning hours, the odds of “Yes” are selling at 17 cents and “No” are at 85 cents. When it ends, the correct outcome will be worth $1. (The total may not add up to 100 at Polymarket due to market uncertainty and other price factors.)
The chances of Trump actually going to jail before the election remain slim, Reuters reported.
In Polymarket's “Presidential Election Winner 2024” market, the odds of Trump becoming president dropped 2 percentage points to 54% on Thursday. President Joe Biden’s chances grew to 40% from 38%.
The market for the bet has seen $900,000 in wagers from crypto users since its creation in January.
Crypto punters are giving Donald Trump a 17% chance of going to jail before the U.S. presidential election in November, odds on predictions application Polymarket show.
Trump was found guilty on Thursday by a New York jury on all 34 counts. He was accused of falsifying business records, becoming the first former president to be convicted in U.S. courts. Trump pleaded not guilty and said he will "keep fighting until the end," according to the BBC.
Data shows that a market for “Trump in jail before election day?” saw increased buying and selling activity on Friday. The market was created in January and has racked up $900,000 in bets from crypto users.
The market will resolve to "Yes" if Trump spends at least 48 consecutive hours in custody in a jail or prison between Jan. 5 and 11:59 p.m. ET on Nov. 5. Otherwise, it resolves to "No.”
As of European morning hours, the odds of “Yes” are selling at 17 cents and “No” are at 85 cents. When it ends, the correct outcome will be worth $1. (The total may not add up to 100 at Polymarket due to market uncertainty and other price factors.)
The chances of Trump actually going to jail before the election remain slim, Reuters reported.
In Polymarket's “Presidential Election Winner 2024” market, the odds of Trump becoming president dropped 2 percentage points to 54% on Thursday. President Joe Biden’s chances grew to 40% from 38%.
Bitcoin's Short Term Momentum Flips Bearish; Support Under $65K
Technical indicators suggest that bitcoin’s short-term momentum has flipped bearish.
The 50-day simple moving average marks major support at $64,870.
Technical indicators that gauge bitcoin's {{BTC}} price movement over the short term have flipped bearish, with crucial support positioned under $65,000.
The cryptocurrency’s 10-day momentum, which compares the going market price with the price from 10 days ago, has declined below zero, indicating renewed negative momentum. Traders use the momentum indicator to confirm market trends and spot trend exhaustion.
Similarly, the moving average convergence divergence (MACD) histogram, which employs the 26-day and 12-day exponential moving averages, has turned negative. The indicator is widely used to spot trend changes, with crossovers under zero signaling price losses.
Both indicators suggest the path of least resistance is to the downside, which is consistent with analysts’ view that rising U.S. Treasury yields pose a downside risk to bitcoin.
The pivotal 50-day simple moving average at $64,870 is the key support to watch out for. The probability of a drop toward the same would increase should the U.S. inflation data, due later Friday, beat estimates.
The upper end of the channel, identified by trendlines connecting highs and lows hit in March and April, is the resistance for the bulls to beat. A move higher would mean the resumption of the broader uptrend.
The 50-day simple moving average marks major support at $64,870.
Technical indicators that gauge bitcoin's {{BTC}} price movement over the short term have flipped bearish, with crucial support positioned under $65,000.
The cryptocurrency’s 10-day momentum, which compares the going market price with the price from 10 days ago, has declined below zero, indicating renewed negative momentum. Traders use the momentum indicator to confirm market trends and spot trend exhaustion.
Similarly, the moving average convergence divergence (MACD) histogram, which employs the 26-day and 12-day exponential moving averages, has turned negative. The indicator is widely used to spot trend changes, with crossovers under zero signaling price losses.
Both indicators suggest the path of least resistance is to the downside, which is consistent with analysts’ view that rising U.S. Treasury yields pose a downside risk to bitcoin.
The pivotal 50-day simple moving average at $64,870 is the key support to watch out for. The probability of a drop toward the same would increase should the U.S. inflation data, due later Friday, beat estimates.
The upper end of the channel, identified by trendlines connecting highs and lows hit in March and April, is the resistance for the bulls to beat. A move higher would mean the resumption of the broader uptrend.
As Random Celebs Like Caitlyn Jenner Embrace Solana Meme Coins, Early Hoarders Fare Best
Niche celebrities have recently launched tokens in the crypto market using the Pump Fun application on Solana.
Early buyers of these celebrity-backed tokens have made significant profits, with some tokens netting six-figure profits in a short time.
The ease of launching tokens and the subsequent profits have sparked criticism and concern within the crypto community, with some describing it as a "net negative" for the industry.
It looks like froth season yet again in crypto markets as niche celebrities latch on to the instant meme coin creation hype.
American media personality Caitlyn Jenner and rappers Iggy Azalea, Trippie Redd, and Davido have all launched tokens in the past week. They used the Pump Fun application, which recently caught fire on Solana by enabling anyone to easily issue a coin attached to an image.
But the profits haven’t been widespread. Blockchain data suggests that early groups of traders were quick to accumulate most of the supply of these tokens before the celebrities promoted them on their X profiles – earning, in some cases, quick six-figure profits.
For instance, Solana blockchain data shows a single address bought over 70% of Redd’s BANDO token shortly after it went live early Thursday. The tokens were then dispersed to 190 other wallet addresses, blockchain sleuth ZachXBT said on X.
Nigerian record producer Davido’s DAVIDO token netted early buyers a profit of nearly $470,000 worth of Solana’s SOl tokens in just 11 hours, on-chain firm Lookonchain flagged, from just over $1,000 in initial capital. This analysis was done by tracking the deployer of the original token, counting how many tokens they acquired after issuance and the sales in the hours afterward.
Davido(@davido) launched a token named $DAVIDO and made a profit of 2,783 $SOL ($473K) in just 11 hours, also has an unrealized profit of $207K.11 hours ago, he received 7.5 $SOL ($1,275) as start-up capital, created $DAVIDO on https://t.co/C909I8882s and spent 7 $SOL ($1,190) to… pic.twitter.com/3ObDhsMbOU
— Lookonchain (@lookonchain) May 30, 2024
ZachXBT flagged that Davido had previously launched and promoted “multiple scams in the past” such as RapDoge, Echoke and Racksterli, an investment ponzi scheme. DEXTools data shows prices of these tokens dropped more than 99% in the days following their online promotion.
“Their sole interest is to extract $$$ for minimal effort,” ZachXBT said in an X post. “A random meme coin shill out of nowhere does the space no good + does not prove they have a genuine interest.”
You leading the spaces provides credibility to them. A random meme coin shill out of nowhere does the space no good + does not prove they have a genuine interest. How about instead of Ansem Angels OF management you start an agency to manage celeb/influencer deal flow?
— ZachXBT (@zachxbt) May 30, 2024
Davido’s X profile did not return a comment requesting clarity on these allegations as of Friday morning.
Iggy Azalea’s MOTHER apparently made early traders $2 million in profits, data tracking firm Bubblemaps said in an X post. Bubblemaps said 20% of the supply at issuance hours had been bought by a small bunch of wallets before Azalea posted about the token’s existence on X. The token is down 70% since Wednesday.
We found huge insider activity on $MOTHER 🚨Insiders bought 20% of the supply at launch, before Iggy Azaela (@IGGYAZALEA) made the announcement, and already dumped $2M.A thread 🧵 ↓ pic.twitter.com/tQFHt1yZfO
— Bubblemaps (@bubblemaps) May 29, 2024
Easy issuance, easy money
All of these celebrity-promoted tokens were launched on Solana token generator Pump Fun. These tokens are automatically listed on the decentralized exchange Raydium after a certain trading volume is met.
DEXTools data shows most of these tokens ran to market capitalizations of as much as $25 million in the hours after issuance, racking up tens of millions in trading volumes. However, all of them have been down more than 50% since highs – a sign of selling pressure amid the hype.
The first of these celebrity tokens was Jenner’s JENNER meme token on Monday, which sowed confusion among market observers as its legitimacy was questioned due to past celebrity X account compromises.
Jenner’s X profile has continued to promote the token, although CoinDesk has not received confirmation of her involvement in the token despite multiple messages to her official media inquiry department.
While issuing tokens is not a harmful activity by itself, crypto market participants are criticizing how these celebrities have seemingly emerged out of the woodwork in an easy environment, making quick money from unsuspecting followers. Some have described this as a “net negative” for the industry.
I’ll just summarise (long post) my thoughts on the celeb bullshit.Over the last 4 days coincidentally a number of celebrities have all launched memecoins.This has raised the debate on whether this is a positive (onboarding) or a negative (pump and dump) for the space.… pic.twitter.com/kRnxzCdcXl
— Cold Blooded Shiller (@ColdBloodShill) May 30, 2024
Memes are hard work
Meanwhile, some meme coin developers told CoinDesk in Telegram interviews that while creating meme tokens may seem like a fun activity from the outside, they often require substantial effort to become long-term projects that win community trust.
“Successful meme coins take a lot of effort: it takes time for the culture, community, and more to develop,” Floki core team member B told CoinDesk. “Even more so if you’re focusing on fundamentals instead of just quick hype, like we try to do at Floki.”
“Many of these celebs are just banking on the hype with a pump and dump cash grab and extract as much liquidity as possible from their followers,” B added.
However, B opined there’s a way to issue personal branded meme tokens and do it right.
“Celebrities coming into crypto and participating in the ecosystem is definitely a good thing if done right. If they are really keen on launching tokens, however, they can launch social tokens around their brand and products and add value to the token for holders instead of the current trend where they launch a meme coin and allocate a portion of the supply to themselves only to proceed to dump it on unsuspecting followers almost immediately."
Early buyers of these celebrity-backed tokens have made significant profits, with some tokens netting six-figure profits in a short time.
The ease of launching tokens and the subsequent profits have sparked criticism and concern within the crypto community, with some describing it as a "net negative" for the industry.
It looks like froth season yet again in crypto markets as niche celebrities latch on to the instant meme coin creation hype.
American media personality Caitlyn Jenner and rappers Iggy Azalea, Trippie Redd, and Davido have all launched tokens in the past week. They used the Pump Fun application, which recently caught fire on Solana by enabling anyone to easily issue a coin attached to an image.
But the profits haven’t been widespread. Blockchain data suggests that early groups of traders were quick to accumulate most of the supply of these tokens before the celebrities promoted them on their X profiles – earning, in some cases, quick six-figure profits.
For instance, Solana blockchain data shows a single address bought over 70% of Redd’s BANDO token shortly after it went live early Thursday. The tokens were then dispersed to 190 other wallet addresses, blockchain sleuth ZachXBT said on X.
Nigerian record producer Davido’s DAVIDO token netted early buyers a profit of nearly $470,000 worth of Solana’s SOl tokens in just 11 hours, on-chain firm Lookonchain flagged, from just over $1,000 in initial capital. This analysis was done by tracking the deployer of the original token, counting how many tokens they acquired after issuance and the sales in the hours afterward.
Davido(@davido) launched a token named $DAVIDO and made a profit of 2,783 $SOL ($473K) in just 11 hours, also has an unrealized profit of $207K.11 hours ago, he received 7.5 $SOL ($1,275) as start-up capital, created $DAVIDO on https://t.co/C909I8882s and spent 7 $SOL ($1,190) to… pic.twitter.com/3ObDhsMbOU
— Lookonchain (@lookonchain) May 30, 2024
ZachXBT flagged that Davido had previously launched and promoted “multiple scams in the past” such as RapDoge, Echoke and Racksterli, an investment ponzi scheme. DEXTools data shows prices of these tokens dropped more than 99% in the days following their online promotion.
“Their sole interest is to extract $$$ for minimal effort,” ZachXBT said in an X post. “A random meme coin shill out of nowhere does the space no good + does not prove they have a genuine interest.”
You leading the spaces provides credibility to them. A random meme coin shill out of nowhere does the space no good + does not prove they have a genuine interest. How about instead of Ansem Angels OF management you start an agency to manage celeb/influencer deal flow?
— ZachXBT (@zachxbt) May 30, 2024
Davido’s X profile did not return a comment requesting clarity on these allegations as of Friday morning.
Iggy Azalea’s MOTHER apparently made early traders $2 million in profits, data tracking firm Bubblemaps said in an X post. Bubblemaps said 20% of the supply at issuance hours had been bought by a small bunch of wallets before Azalea posted about the token’s existence on X. The token is down 70% since Wednesday.
We found huge insider activity on $MOTHER 🚨Insiders bought 20% of the supply at launch, before Iggy Azaela (@IGGYAZALEA) made the announcement, and already dumped $2M.A thread 🧵 ↓ pic.twitter.com/tQFHt1yZfO
— Bubblemaps (@bubblemaps) May 29, 2024
Easy issuance, easy money
All of these celebrity-promoted tokens were launched on Solana token generator Pump Fun. These tokens are automatically listed on the decentralized exchange Raydium after a certain trading volume is met.
DEXTools data shows most of these tokens ran to market capitalizations of as much as $25 million in the hours after issuance, racking up tens of millions in trading volumes. However, all of them have been down more than 50% since highs – a sign of selling pressure amid the hype.
The first of these celebrity tokens was Jenner’s JENNER meme token on Monday, which sowed confusion among market observers as its legitimacy was questioned due to past celebrity X account compromises.
Jenner’s X profile has continued to promote the token, although CoinDesk has not received confirmation of her involvement in the token despite multiple messages to her official media inquiry department.
While issuing tokens is not a harmful activity by itself, crypto market participants are criticizing how these celebrities have seemingly emerged out of the woodwork in an easy environment, making quick money from unsuspecting followers. Some have described this as a “net negative” for the industry.
I’ll just summarise (long post) my thoughts on the celeb bullshit.Over the last 4 days coincidentally a number of celebrities have all launched memecoins.This has raised the debate on whether this is a positive (onboarding) or a negative (pump and dump) for the space.… pic.twitter.com/kRnxzCdcXl
— Cold Blooded Shiller (@ColdBloodShill) May 30, 2024
Memes are hard work
Meanwhile, some meme coin developers told CoinDesk in Telegram interviews that while creating meme tokens may seem like a fun activity from the outside, they often require substantial effort to become long-term projects that win community trust.
“Successful meme coins take a lot of effort: it takes time for the culture, community, and more to develop,” Floki core team member B told CoinDesk. “Even more so if you’re focusing on fundamentals instead of just quick hype, like we try to do at Floki.”
“Many of these celebs are just banking on the hype with a pump and dump cash grab and extract as much liquidity as possible from their followers,” B added.
However, B opined there’s a way to issue personal branded meme tokens and do it right.
“Celebrities coming into crypto and participating in the ecosystem is definitely a good thing if done right. If they are really keen on launching tokens, however, they can launch social tokens around their brand and products and add value to the token for holders instead of the current trend where they launch a meme coin and allocate a portion of the supply to themselves only to proceed to dump it on unsuspecting followers almost immediately."
Meet Mike Novogratz, the Political Commentator
AUSTIN, Texas – You might think, given Mike Novogratz’s penchant for wrestling, that he’d pick a team when it comes to politics and take his opponents to the mat. After all, we’re talking about the guy who once got a tattoo of doomed-to-fail stablecoin project Terra/LUNA – he doesn’t mind taking sides. But instead, Novogratz describes himself as a “radical centrist.”
“I am broadly a center-left Democrat … but I've donated to Republican candidates,” Novogratz said Thursday on the Main Stage at Consensus 2024. In other words, if Novogratz has a team, it’s crypto, making the Galaxy Digital CEO a kind of “single issue” voter.
Read more: RFK Jr. Says Guilty Verdict May Help Trump's Election Prospects
There are many voters in the U.S. who are increasingly concerned about how the asset class has become a political wedge issue. So many so that it appears that the laser-eyed focus of bag holders, perpetual industry lobbying and recent endorsement by former President Donald Trump have helped soften many Democratic officeholders’ stance on crypto.
“There's been a seismic shift in the political landscape in the last two weeks.” Novogratz said. “I've been in D.C. trying to tell people this is a bipartisan issue,” but over the years the Democrats seem to have lost the plot. Or as Novogratz said by way of comparison, “the Democratic party was the party that doesn't like dogs.”
Indeed, the legislative and regulatory advancements of recent weeks – including the House and Senate vote to repeal the maligned accounting bulletin SAB121, the House passing a crypto bill, major progress for ETH ETFs and President Joe Biden’s reported outreach to crypto firms looking for guidance on saner policy – happened bing-bang-boom.
“I don't know what happened,” Novogratz said. “It certainly feels like someone from the White House called Mr. Gensler [SEC Chairman] and said, ‘You got to change your stance,’” Novogratz said. Likewise, “Elizabeth Warren had a huge sway over presidential politics,” but unfortunately for the Massachusetts Senator she got into “hot water with this giant group of crypto voters in a very tight election year.”
However, Novogratz did note that the Democratic Party is not a monolith, and that many have been calling for positive regulation and consumer protections, including New York Representative Ritchie Torres and Democratic Leader of the House Hakeem Jeffries, who “got it.”
Echoing Sen. Tom Emmer (R–MN.), who said yesterday that while Congress appears increasingly willing to pass crypto legislation the Senate remains a potential roadblock, Novogratz said that the most important politician in office right now is Debbie Stabenow (D–MI), who chairs the agriculture committee and serves on the finance and budget committees, who may determine when votes are held.
Part of what is driving these recent political changes is the sheer amount of money entering campaigns and all but ensuring crypto becomes an election issue. Novogratz estimated that as much as $250 million has already been directed to crypto-focused Super PACs, which have become “de facto” Republican.
See also: The Biden Administration Is Easing Up on Crypto (a Vibes Analysis)
The wonderful thing about any decentralized movement is it takes an army" to take on,” Novogratz said, highlighting the number of high profile people like Coinbase founder Brian Armstrong “constantly pushing” for reforms. “There are tons of people who run companies and have vested interests” that have moved the needle. “I like to think Galaxy is part of that, but by no means can we take a lot of credit.”
Practical changes?
So, assuming a re-empowered crypto industry becomes a bone fide political force, what can the world expect to happen?
Well, assuming Biden reneges on his decision to veto Congress’ decision to repeal the Security and Exchange Commission’s SAB121 accounting rule, that would mean a number of TradFi custodians like State Street and the Bank of New York could start custodying crypto. And they will, Novogratz said.
“You will see a stampede of firms like Citi and Jeffries entering into this space. I'm hoping in some ways it’s delayed a little so guys like us can build our muscles stronger,” he added. Though baby boomers, which Novogratz called the wealthiest age group in the history of the planet with $45 trillion in assets, may not be immediately convinced on the merits of crypto. “That’s a 10-year conversation.”
But because the “government can’t stop spending money on the left and on the right,” the narrative of crypto will continue to take hold. “Donald Trump and Joe Biden normalized … profligate fiscal policies,” he said.
Relatedly, if crypto’s political influence continues to grow it will likely be able to exert pressure to change unfavorable rules. This might be the case for ETH ETFs, which at launch will likely not be able to stake the underlying asset in the funds. He estimates that if enough people gain exposure to ETH, within 12 to 24 months of launch, “they will change the rules to allow staking.”
“You'd rather get a yield than not get yield,” he said.
Then there is the matter of the plethora of open and expected SEC lawsuits. Novogratz expects that many of these cases will be thrown out due to a confluence of factors, including the nearing end of Gensler’s term, the regulatory uncertainty around market structure (i.e. whether tokens are securities or commodities) and fears of administrative overreach.
See also: Why the SEC Shouldn't Classify ETH as a Security
“Common sense will take over,” he said. “It really does feel like the assault on crypto companies over the last three years was one of the most un-American things I've seen. It was politically motivated, in my mind, and I don't think it was good for the country. And I think most civil servants and politicians believe that, too.”
Finally, there are practical considerations for Galaxy, which is a publicly traded company in Canada that is looking to list in the U.S. Novogratz explained that the firm failed to file its paperwork while Trump was in office, and has been trying “to go public literally since the very beginning of the against Gensler-Biden SEC.”
Explaining the “long and arduous process,” which has cost the firm an estimated $25 million, feels like it is accelerating (and that it was never clear why so many firms were being “slow rolled), Novogratz gave a cautiously optimistic estimate that by early next year Galaxy might enter the U.S. as a public company.
“It's been a complete and total disadvantage not having access to the world's greatest capital markets,” he said. With any luck, the political headwinds for crypto firms have come to an end.
“I am broadly a center-left Democrat … but I've donated to Republican candidates,” Novogratz said Thursday on the Main Stage at Consensus 2024. In other words, if Novogratz has a team, it’s crypto, making the Galaxy Digital CEO a kind of “single issue” voter.
Read more: RFK Jr. Says Guilty Verdict May Help Trump's Election Prospects
There are many voters in the U.S. who are increasingly concerned about how the asset class has become a political wedge issue. So many so that it appears that the laser-eyed focus of bag holders, perpetual industry lobbying and recent endorsement by former President Donald Trump have helped soften many Democratic officeholders’ stance on crypto.
“There's been a seismic shift in the political landscape in the last two weeks.” Novogratz said. “I've been in D.C. trying to tell people this is a bipartisan issue,” but over the years the Democrats seem to have lost the plot. Or as Novogratz said by way of comparison, “the Democratic party was the party that doesn't like dogs.”
Indeed, the legislative and regulatory advancements of recent weeks – including the House and Senate vote to repeal the maligned accounting bulletin SAB121, the House passing a crypto bill, major progress for ETH ETFs and President Joe Biden’s reported outreach to crypto firms looking for guidance on saner policy – happened bing-bang-boom.
“I don't know what happened,” Novogratz said. “It certainly feels like someone from the White House called Mr. Gensler [SEC Chairman] and said, ‘You got to change your stance,’” Novogratz said. Likewise, “Elizabeth Warren had a huge sway over presidential politics,” but unfortunately for the Massachusetts Senator she got into “hot water with this giant group of crypto voters in a very tight election year.”
However, Novogratz did note that the Democratic Party is not a monolith, and that many have been calling for positive regulation and consumer protections, including New York Representative Ritchie Torres and Democratic Leader of the House Hakeem Jeffries, who “got it.”
Echoing Sen. Tom Emmer (R–MN.), who said yesterday that while Congress appears increasingly willing to pass crypto legislation the Senate remains a potential roadblock, Novogratz said that the most important politician in office right now is Debbie Stabenow (D–MI), who chairs the agriculture committee and serves on the finance and budget committees, who may determine when votes are held.
Part of what is driving these recent political changes is the sheer amount of money entering campaigns and all but ensuring crypto becomes an election issue. Novogratz estimated that as much as $250 million has already been directed to crypto-focused Super PACs, which have become “de facto” Republican.
See also: The Biden Administration Is Easing Up on Crypto (a Vibes Analysis)
The wonderful thing about any decentralized movement is it takes an army" to take on,” Novogratz said, highlighting the number of high profile people like Coinbase founder Brian Armstrong “constantly pushing” for reforms. “There are tons of people who run companies and have vested interests” that have moved the needle. “I like to think Galaxy is part of that, but by no means can we take a lot of credit.”
Practical changes?
So, assuming a re-empowered crypto industry becomes a bone fide political force, what can the world expect to happen?
Well, assuming Biden reneges on his decision to veto Congress’ decision to repeal the Security and Exchange Commission’s SAB121 accounting rule, that would mean a number of TradFi custodians like State Street and the Bank of New York could start custodying crypto. And they will, Novogratz said.
“You will see a stampede of firms like Citi and Jeffries entering into this space. I'm hoping in some ways it’s delayed a little so guys like us can build our muscles stronger,” he added. Though baby boomers, which Novogratz called the wealthiest age group in the history of the planet with $45 trillion in assets, may not be immediately convinced on the merits of crypto. “That’s a 10-year conversation.”
But because the “government can’t stop spending money on the left and on the right,” the narrative of crypto will continue to take hold. “Donald Trump and Joe Biden normalized … profligate fiscal policies,” he said.
Relatedly, if crypto’s political influence continues to grow it will likely be able to exert pressure to change unfavorable rules. This might be the case for ETH ETFs, which at launch will likely not be able to stake the underlying asset in the funds. He estimates that if enough people gain exposure to ETH, within 12 to 24 months of launch, “they will change the rules to allow staking.”
“You'd rather get a yield than not get yield,” he said.
Then there is the matter of the plethora of open and expected SEC lawsuits. Novogratz expects that many of these cases will be thrown out due to a confluence of factors, including the nearing end of Gensler’s term, the regulatory uncertainty around market structure (i.e. whether tokens are securities or commodities) and fears of administrative overreach.
See also: Why the SEC Shouldn't Classify ETH as a Security
“Common sense will take over,” he said. “It really does feel like the assault on crypto companies over the last three years was one of the most un-American things I've seen. It was politically motivated, in my mind, and I don't think it was good for the country. And I think most civil servants and politicians believe that, too.”
Finally, there are practical considerations for Galaxy, which is a publicly traded company in Canada that is looking to list in the U.S. Novogratz explained that the firm failed to file its paperwork while Trump was in office, and has been trying “to go public literally since the very beginning of the against Gensler-Biden SEC.”
Explaining the “long and arduous process,” which has cost the firm an estimated $25 million, feels like it is accelerating (and that it was never clear why so many firms were being “slow rolled), Novogratz gave a cautiously optimistic estimate that by early next year Galaxy might enter the U.S. as a public company.
“It's been a complete and total disadvantage not having access to the world's greatest capital markets,” he said. With any luck, the political headwinds for crypto firms have come to an end.
RFK Jr. Says Guilty Verdict May Help Trump's Election Prospects
AUSTIN, TEXAS — Robert F. Kennedy Jr. said his presidential election opponent Donald Trump's guilty verdict Thursday may end up boosting Trump's prospects in November.
"My belief is that it will end up helping President Trump among a large part of the American public," Kennedy said on stage at Consensus 2024 in Austin, Texas, hours after the news broke.
Kennedy, breaking from his family's Democratic Party roots, is running as an independent, facing off against Trump, the presumptive Republican nominee, and President Joe Biden. He said that his team's internal research shows he'd beat either Trump or Biden in a head-to-head contest in the presidential election but noted that if he dropped out of the race, more than half of his supporters would instead vote for Trump.
"I'm not a fan of Trump's," Kennedy said. "The division in our country is largely down to him and Biden, and it's not a good thing for our country."
Kennedy's Pro-Crypto Stance
He delighted the standing-room-only crowd – filled with crypto enthusiasts – with comments in support of the technology.
"Transactional freedom is absolutely as important as freedom of expression," he said.
Crypto has in recent weeks become more prominent on the campaign trail. Trump has turned from past crypto skepticism to open support, including soliciting campaign donations denominated in crypto. While Biden has not expressed support, one-third of Democrats in the U.S. House just joined with Republicans to pass a crypto bill. Also, under the watch of Biden's Democratic administration, the U.S. Securities and Exchange Commission just took a big step toward approving exchange-traded funds designed to hold Ethereum's ether {{ETH}} – something that seemed unlikely just weeks ago.
Before appearing on stage, Kennedy spoke to reporters at the Austin Convention Center. He was asked about Trump's new pro-crypto stance.
"I'm happy about that," Kennedy said. "I think it's a good thing for our country. Commitment to crypto is a commitment to freedom and transparency. I'm not going to question if it was a political decision. I'm happy he did it, and I hope President Biden does, too."
He also discussed his own feelings about crypto.
"We need to make sure America remains the hub of blockchain technology," he said. "I'm going to make sure cryptocurrency is regulated in a way that protects the consumer from deceptive schemes."
"My belief is that it will end up helping President Trump among a large part of the American public," Kennedy said on stage at Consensus 2024 in Austin, Texas, hours after the news broke.
Kennedy, breaking from his family's Democratic Party roots, is running as an independent, facing off against Trump, the presumptive Republican nominee, and President Joe Biden. He said that his team's internal research shows he'd beat either Trump or Biden in a head-to-head contest in the presidential election but noted that if he dropped out of the race, more than half of his supporters would instead vote for Trump.
"I'm not a fan of Trump's," Kennedy said. "The division in our country is largely down to him and Biden, and it's not a good thing for our country."
Kennedy's Pro-Crypto Stance
He delighted the standing-room-only crowd – filled with crypto enthusiasts – with comments in support of the technology.
"Transactional freedom is absolutely as important as freedom of expression," he said.
Crypto has in recent weeks become more prominent on the campaign trail. Trump has turned from past crypto skepticism to open support, including soliciting campaign donations denominated in crypto. While Biden has not expressed support, one-third of Democrats in the U.S. House just joined with Republicans to pass a crypto bill. Also, under the watch of Biden's Democratic administration, the U.S. Securities and Exchange Commission just took a big step toward approving exchange-traded funds designed to hold Ethereum's ether {{ETH}} – something that seemed unlikely just weeks ago.
Before appearing on stage, Kennedy spoke to reporters at the Austin Convention Center. He was asked about Trump's new pro-crypto stance.
"I'm happy about that," Kennedy said. "I think it's a good thing for our country. Commitment to crypto is a commitment to freedom and transparency. I'm not going to question if it was a political decision. I'm happy he did it, and I hope President Biden does, too."
He also discussed his own feelings about crypto.
"We need to make sure America remains the hub of blockchain technology," he said. "I'm going to make sure cryptocurrency is regulated in a way that protects the consumer from deceptive schemes."
Ripple's Brad Garlinghouse Foresees XRP, Solana, Cardano ETFs: Consensus 2024
Brad Garlinghouse predicts the inevitable approval of XRP, Solana and Cardano ETFs, despite significant regulatory hurdles.
Garlinghouse criticized the SEC's unclear crypto regulations, highlighting the need for better regulatory clarity in the U.S.
AUSTIN, TEXAS — More crypto exchange-traded funds (ETFs) are coming – following approval of spot bitcoin {{BTC}} ETFs and progress on ones designed to hold Ethereum's ether {{ETH}} – predicts the CEO of Ripple.
"I think it's just a matter of time, and it's inevitable there's gonna be an XRP ETF, there's gonna be a Solana {{SOL}} ETF, there's gonna be a Cardano {{ADA}} ETF, and that's great," he said. Ripple is closely linked to XRP.
Recently, ether ETFs made abrupt and unexpected progress, with key filings being approved by the U.S. Securities and Exchange Commission. Final approval is needed before they can begin trading.
Cathie Wood, the CEO of ARK Invest, also said during Consensus that these ether ETFs were approved because crypto is now an election issue.
Garlinghouse said that there will be a significant regulatory approval process before these are approved, but in the end these will be "speed bumps."
Garlinghouse also railed against what he perceives as a lack of regulatory clarity from Washington.
"[SEC Chair] Gary Gensler has been called to Congress, and when asked if ether is a security, he won't answer the question. Yet, he insists that the rules are very clear and don't need updating," he said.
In 2022, the SEC kept confidential emails and notes from William Hinman's 2018 speech, which declared ether not a security. Ripple, sued by the SEC, obtained access to these redacted documents, revealing extensive internal SEC discussions about ether's status as a security.
The U.S., the world's largest economy, represents, in Garlinghouse's opinion, the "bottom decile of regulatory clarity."
"Somehow, [Gensler] believes that the Orange Grove tests from 70-80 years ago provide clear rules for crypto," he said, referring to the Howey Test's Floridian roots. "It makes no sense and is a travesty because the SEC's stance has become such a political liability, affecting even the presidential race."
Garlinghouse also mentioned that last year 75% of Rippple's hiring was outside the U.S., and this year it's about 60%, with major offices in London, Geneva and Singapore.
The hiring trends reflect Ripple's focus on regulatory clarity and customer locations, he said.
"Getting the regulatory posture right in the United States is just critical," he concluded.
Garlinghouse criticized the SEC's unclear crypto regulations, highlighting the need for better regulatory clarity in the U.S.
AUSTIN, TEXAS — More crypto exchange-traded funds (ETFs) are coming – following approval of spot bitcoin {{BTC}} ETFs and progress on ones designed to hold Ethereum's ether {{ETH}} – predicts the CEO of Ripple.
"I think it's just a matter of time, and it's inevitable there's gonna be an XRP ETF, there's gonna be a Solana {{SOL}} ETF, there's gonna be a Cardano {{ADA}} ETF, and that's great," he said. Ripple is closely linked to XRP.
Recently, ether ETFs made abrupt and unexpected progress, with key filings being approved by the U.S. Securities and Exchange Commission. Final approval is needed before they can begin trading.
Cathie Wood, the CEO of ARK Invest, also said during Consensus that these ether ETFs were approved because crypto is now an election issue.
Garlinghouse said that there will be a significant regulatory approval process before these are approved, but in the end these will be "speed bumps."
Garlinghouse also railed against what he perceives as a lack of regulatory clarity from Washington.
"[SEC Chair] Gary Gensler has been called to Congress, and when asked if ether is a security, he won't answer the question. Yet, he insists that the rules are very clear and don't need updating," he said.
In 2022, the SEC kept confidential emails and notes from William Hinman's 2018 speech, which declared ether not a security. Ripple, sued by the SEC, obtained access to these redacted documents, revealing extensive internal SEC discussions about ether's status as a security.
The U.S., the world's largest economy, represents, in Garlinghouse's opinion, the "bottom decile of regulatory clarity."
"Somehow, [Gensler] believes that the Orange Grove tests from 70-80 years ago provide clear rules for crypto," he said, referring to the Howey Test's Floridian roots. "It makes no sense and is a travesty because the SEC's stance has become such a political liability, affecting even the presidential race."
Garlinghouse also mentioned that last year 75% of Rippple's hiring was outside the U.S., and this year it's about 60%, with major offices in London, Geneva and Singapore.
The hiring trends reflect Ripple's focus on regulatory clarity and customer locations, he said.
"Getting the regulatory posture right in the United States is just critical," he concluded.
Robert F. Kennedy Jr. on Trump's Guilty Verdict and Pro-Crypto Stance
Robert F. Kennedy Jr., the U.S. presidential candidate, spoke at a press conference Thursday at Consensus 2024 in Austin, Texas. Here are some of his comments:
Donald Trump's guilty verdict
"I'm going to talk about issues of broader concern. I want to focus on the economic issues and the health issues. That's what my campaign is about. I'm not going to get dragged into the dirt pile. I don't have any thoughts. I've been very disciplined in not talking about lawsuits against [Joe] Biden or Trump."
Thoughts on Trump's new pro-crypto stance
"I'm happy about that. I think it's a good thing for our country. Commitment to crypto is a commitment to freedom and transparency. I'm not going to question if it was a political decision. I'm happy he did it, and I hope President Biden does, too."
Biggest issues facing crypto regulation in the U.S.
"I think transactional freedom is one. We need sovereignty over our own wallets, transactional freedom and a currency that is transparent. We need to make sure America remains the hub of blockchain technology. I'm going to make sure cryptocurrency is regulated in a way that protects the consumer from deceptive schemes. I purchased 21 bitcoins since I started this campaign. I also bought three coins for each of my kids."
What does the future hold for crypto fans?
"My objective if elected president is that crypto is a transactional currency. That people can have transactional freedom. That people have a choice as to whether they can buy it. I think it should be treated as a currency; we shouldn't be taxing it as capital gains. I think there are issues in how we do that. I believe that it should be a currency used to purchase things like apples, lunches and coffee and that people can do that."
What inspired him to run for president
"I toyed with getting into politics when I was younger. For two decades I took that off the plate. I saw what happened during Covid and when the government shut down the economy. I thought it was wrong. The government shut down every church, attacked the 5th amendment, shut down business without due process … they shut down jury trials, they violated prohibitions and I saw this attack on the constitution and censorship, not just to me but so many people who were trying to talk. I saw that and it seemed so unethical to my country. All these traditional values for my party and my country were disappearing, and I felt I could play a unique role in showing people what America's supposed to look like."
Donald Trump's guilty verdict
"I'm going to talk about issues of broader concern. I want to focus on the economic issues and the health issues. That's what my campaign is about. I'm not going to get dragged into the dirt pile. I don't have any thoughts. I've been very disciplined in not talking about lawsuits against [Joe] Biden or Trump."
Thoughts on Trump's new pro-crypto stance
"I'm happy about that. I think it's a good thing for our country. Commitment to crypto is a commitment to freedom and transparency. I'm not going to question if it was a political decision. I'm happy he did it, and I hope President Biden does, too."
Biggest issues facing crypto regulation in the U.S.
"I think transactional freedom is one. We need sovereignty over our own wallets, transactional freedom and a currency that is transparent. We need to make sure America remains the hub of blockchain technology. I'm going to make sure cryptocurrency is regulated in a way that protects the consumer from deceptive schemes. I purchased 21 bitcoins since I started this campaign. I also bought three coins for each of my kids."
What does the future hold for crypto fans?
"My objective if elected president is that crypto is a transactional currency. That people can have transactional freedom. That people have a choice as to whether they can buy it. I think it should be treated as a currency; we shouldn't be taxing it as capital gains. I think there are issues in how we do that. I believe that it should be a currency used to purchase things like apples, lunches and coffee and that people can do that."
What inspired him to run for president
"I toyed with getting into politics when I was younger. For two decades I took that off the plate. I saw what happened during Covid and when the government shut down the economy. I thought it was wrong. The government shut down every church, attacked the 5th amendment, shut down business without due process … they shut down jury trials, they violated prohibitions and I saw this attack on the constitution and censorship, not just to me but so many people who were trying to talk. I saw that and it seemed so unethical to my country. All these traditional values for my party and my country were disappearing, and I felt I could play a unique role in showing people what America's supposed to look like."
TRUMP Token Sinks After Former U.S. President Is Found Guilty in New York
A jury finding Donald Trump guilty is more than just bad news for the former U.S. president: The announcement also smacked holders of the TRUMP meme coin.
The token sank as much as 35% after the verdict. Meanwhile, Jeo Boden, a meme coin inspired by President Joe Biden, soared 20%.
Trump was found guilty on Thursday by a New York jury on all 34 counts. He was accused of falsifying business records. He's the first U.S. president convicted of a felony.
Over at Polymarket, the blockchain-powered prediction market, traders nonetheless continued to expect Trump to defeat Biden in the November election. Trump is well ahead – with 56% odds of winning, versus 38% for Biden – even after the verdict.
CORRECTION (May 30, 2024, 21:35 UTC): Fixes misspelling of TRUMP.
The token sank as much as 35% after the verdict. Meanwhile, Jeo Boden, a meme coin inspired by President Joe Biden, soared 20%.
Trump was found guilty on Thursday by a New York jury on all 34 counts. He was accused of falsifying business records. He's the first U.S. president convicted of a felony.
Over at Polymarket, the blockchain-powered prediction market, traders nonetheless continued to expect Trump to defeat Biden in the November election. Trump is well ahead – with 56% odds of winning, versus 38% for Biden – even after the verdict.
CORRECTION (May 30, 2024, 21:35 UTC): Fixes misspelling of TRUMP.
Everyone At Consensus 24 Is Talking About Biden’s Crypto Flip Flop. Is He for Real?
AUSTIN, Texas – The biggest news this year at Consensus seems to be the political sea change happening in the Democratic party over crypto. While President Biden’s administration essentially carried over the same reluctant-to-the-point-of-being-nearly-hostile approach to crypto as its predecessor, ever since the bottoming out of the industry in 2022 (the year from crypto hell) it has been actively hostile. The easiest way to sum up Biden’s “whole of government” attempt to wrangle in the crypto industry is with the catchphrase Operation Choke Point 2.0, coined by VC Nic Carter to describe the apparent debanking of many crypto firms.
Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.
This is an excerpt from The Node newsletter, a daily roundup of the most pivotal crypto news on CoinDesk and beyond. You can subscribe to get the full newsletter here.
But in a matter of weeks, this has changed. Beginning with the bipartisan vote in the House and Senate to repeal the U.S. Securities and Exchange Commission’s (SEC) much-maligned accounting bulletin (SAB121) and extending to yesterday’s reveal that the Biden administration is reportedly doing outreach to crypto firms in a late-stage attempt to hear what they have to say about what good crypto policy would look like, it has become (nearly) believable that brighter days are ahead on the political, regulatory and legislative fronts for the domestic crypto industry.
See also: The Biden Administration Is Easing Up on Crypto (a Vibes Analysis)
The feeling is in the air, probably because everyone appears to be voicing it out loud. For instance, yesterday on the Consensus stage, NYSE President Lynn Martin said that she doesn’t think that crypto will remain a “partisan” issue much longer. In the same way that stock and bonds are mostly apolitical, it doesn’t really make much sense to view crypto as inherently political (in fact, crypto may have a better case for actually being apolitical, given the technical design of protocols like Bitcoin).
However, not everyone is in alignment here. For instance, a big name crypto lawyer who works for a red hot DeFi startup, who asked not to be named given the sensitivity of his work, said he doesn’t think Biden’s apparent change of heart is genuine. “He’ll likely revert back to course, if reelected,” he said. Asked whether he felt any weight off his shoulders at all, or whether his job has or will get any easier, under seemingly improving regulatory conditions, he said “absolutely not.” Today is the same as yesterday.
Austin Campbell, a Columbia University business lecturer who is plugged into the D.C. circuit, echoed this idea when noting that the seemingly parallel change in Congress is not likely permanent. In fact, if you look at how the voting on the landmark Financial Innovation and Technology for the 21st Century Act (FIT21) happened, it largely broke down on age lines. Though this in itself could be a positive, given that younger members of Congress are more likely to “get it,” and despite the fact that U.S. politics is a gerontocracy, the dinosaurs won’t rule the world forever.
This morning, Messari founder Ryan Selkis, who recently spoke with former President Trump at Mar-a-Lago Club, and Uniswap Labs chief lawyer Marvin Ammori, a longtime Democratic operative, actually debated the recent political machinations afoot on the Main Stage. Selkis’ main argument was that any easing up on crypto by the Democrats is largely a result of Trump capturing the “single issue” crypto vote, and that it should be treated as suspect. While Ammori argued that political changes don’t flip like a switch, and that things like SAB121 and FIT21 were the result of real bipartisan collaboration and successful crypto lobbying.
See also: Trump Widens Lead Over With Biden (on Polymarket and PredictIt) After Courting Crypto Vote
“My point is, we don't necessarily want to be partisan, because that will be a setback in the long term,” Ammori said. In other words, crypto should be wary of aligning itself with any one party or any one candidate – especially considering that campaign promises are rarely kept. For his part, Selkis wanted to step out of wishful thinking (i.e., that Democrats could be suddenly supportive of crypto after so many years) and into the realm of realpolitik (i.e., that if the theory of bipartisan support were true, it’d be because Dems’ needs have shifted).
“Democrats right now are like a cheating spouse; we caught them with their pants down,” Selkis said. “To reward this Democrat, mainstream party at this point in time is not only foolish, but I think it shows a profound lack of self-respect – they need to do penance.”
Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.
This is an excerpt from The Node newsletter, a daily roundup of the most pivotal crypto news on CoinDesk and beyond. You can subscribe to get the full newsletter here.
But in a matter of weeks, this has changed. Beginning with the bipartisan vote in the House and Senate to repeal the U.S. Securities and Exchange Commission’s (SEC) much-maligned accounting bulletin (SAB121) and extending to yesterday’s reveal that the Biden administration is reportedly doing outreach to crypto firms in a late-stage attempt to hear what they have to say about what good crypto policy would look like, it has become (nearly) believable that brighter days are ahead on the political, regulatory and legislative fronts for the domestic crypto industry.
See also: The Biden Administration Is Easing Up on Crypto (a Vibes Analysis)
The feeling is in the air, probably because everyone appears to be voicing it out loud. For instance, yesterday on the Consensus stage, NYSE President Lynn Martin said that she doesn’t think that crypto will remain a “partisan” issue much longer. In the same way that stock and bonds are mostly apolitical, it doesn’t really make much sense to view crypto as inherently political (in fact, crypto may have a better case for actually being apolitical, given the technical design of protocols like Bitcoin).
However, not everyone is in alignment here. For instance, a big name crypto lawyer who works for a red hot DeFi startup, who asked not to be named given the sensitivity of his work, said he doesn’t think Biden’s apparent change of heart is genuine. “He’ll likely revert back to course, if reelected,” he said. Asked whether he felt any weight off his shoulders at all, or whether his job has or will get any easier, under seemingly improving regulatory conditions, he said “absolutely not.” Today is the same as yesterday.
Austin Campbell, a Columbia University business lecturer who is plugged into the D.C. circuit, echoed this idea when noting that the seemingly parallel change in Congress is not likely permanent. In fact, if you look at how the voting on the landmark Financial Innovation and Technology for the 21st Century Act (FIT21) happened, it largely broke down on age lines. Though this in itself could be a positive, given that younger members of Congress are more likely to “get it,” and despite the fact that U.S. politics is a gerontocracy, the dinosaurs won’t rule the world forever.
This morning, Messari founder Ryan Selkis, who recently spoke with former President Trump at Mar-a-Lago Club, and Uniswap Labs chief lawyer Marvin Ammori, a longtime Democratic operative, actually debated the recent political machinations afoot on the Main Stage. Selkis’ main argument was that any easing up on crypto by the Democrats is largely a result of Trump capturing the “single issue” crypto vote, and that it should be treated as suspect. While Ammori argued that political changes don’t flip like a switch, and that things like SAB121 and FIT21 were the result of real bipartisan collaboration and successful crypto lobbying.
See also: Trump Widens Lead Over With Biden (on Polymarket and PredictIt) After Courting Crypto Vote
“My point is, we don't necessarily want to be partisan, because that will be a setback in the long term,” Ammori said. In other words, crypto should be wary of aligning itself with any one party or any one candidate – especially considering that campaign promises are rarely kept. For his part, Selkis wanted to step out of wishful thinking (i.e., that Democrats could be suddenly supportive of crypto after so many years) and into the realm of realpolitik (i.e., that if the theory of bipartisan support were true, it’d be because Dems’ needs have shifted).
“Democrats right now are like a cheating spouse; we caught them with their pants down,” Selkis said. “To reward this Democrat, mainstream party at this point in time is not only foolish, but I think it shows a profound lack of self-respect – they need to do penance.”
Sen. Warren Wants to Know How Drug Agencies Are Pursuing Crypto Ties to Fentanyl
U.S. Sen. Elizabeth Warren (D-Mass.) is demanding to know how the Biden administration is doing in throttling the use of cryptocurrencies in the trafficking of fentanyl, according to a letter she and another lawmaker sent to the White House Office of National Drug Control Policy and the Drug Enforcement Administration (DEA).Warren and Sen. Bill Cassidy (R-La.) asked for updates on "actions to crack down on drug traffickers’ exploitation of crypto to grow their business and launder their ill-gotten gains," the letter said, arguing that "cryptocurrency has played an increasingly prominent role in the global fentanyl trade over the past decade, both in terms of facilitating the manufacturing and trafficking of fentanyl and in laundering drug cartels’ criminal proceeds."
The U.S. Treasury Department and federal law enforcement agencies have pursued networks and individuals involved in the trafficking of fentanyl precursor chemicals.
Read More: Chinese Firms Used Crypto Payments to Run Fentanyl Network, U.S. Claims in ChargesWarren suggested last year the need for laws to shut down use of digital assets in that segment of the global drug trade.
The senator faces election this year, and the announcement of her latest letter was made a few hours before the appearance at CoinDesk's Consensus 2024 event of John Deaton, a crypto-supporting Republican trying to unseat the prominent lawmaker.
The U.S. Treasury Department and federal law enforcement agencies have pursued networks and individuals involved in the trafficking of fentanyl precursor chemicals.
Read More: Chinese Firms Used Crypto Payments to Run Fentanyl Network, U.S. Claims in ChargesWarren suggested last year the need for laws to shut down use of digital assets in that segment of the global drug trade.
The senator faces election this year, and the announcement of her latest letter was made a few hours before the appearance at CoinDesk's Consensus 2024 event of John Deaton, a crypto-supporting Republican trying to unseat the prominent lawmaker.
