A summary of major developments in the crypto world, from Ripple’s victory against the SEC and Biden’s opposition to supporting crypto traders to the release of a report on the legal status of the Digital Rial.
Brief News
Ripple Wins Battle Against the SEC
Ripple (XRP) secured a significant victory in the U.S. District Court for the Southern District of New York. On July 13, 2023, Judge Analisa Torres ruled in Ripple’s favor. The U.S. Securities and Exchange Commission (SEC) sought to halt Ripple’s token offering under the assumption that XRP tokens were securities and therefore required additional regulation. However, the judge’s new ruling allows XRP tokens to not be classified as securities.
Source: cointelegraph
Court Ruling on Ripple May Be Wrong
Following Judge Torres’ decision that XRP tokens do not qualify as securities, legal expert Bryan Jacoutot warned that Ripple’s victory might be short-lived. In his analysis, Jacoutot said, “The district court’s ruling on Ripple is quite unstable and could be subject to appeal.” He drew attention to Ethereum (ETH), stating, “The pre-sale of Ethereum tokens closely mirrors Ripple’s case. I believe the judge has misinterpreted the law, which could put many projects, including Ethereum, at risk.”
Source: bitcoin.news
Bitcoin Will Be AI’s Favorite Currency
Arthur Hayes, former CEO of cryptocurrency exchange BitMEX, predicted in a new article that Bitcoin (BTC) will play a major role in AI’s future, describing it as “the fuel for AI.” Hayes explained that AI requires a digital, automated, and censorship-free payment infrastructure that traditional banking, gold, and fiat currencies cannot provide. He projected that Bitcoin could reach a value of $760,000 in the next two to three years due to its role in AI.
Source: cointelegraph
Robert Kiyosaki Warns: The U.S. Dollar Will Die
Robert Kiyosaki, author of Rich Dad, Poor Dad, predicted that BRICS countries (Brazil, Russia, India, China, and South Africa) will launch a gold-backed currency that could destroy the U.S. dollar. Kiyosaki has long advocated for investing in gold, silver, and Bitcoin, as he believes these assets are the best protection in uncertain times. He also tweeted that Bitcoin could reach $120,000 by next year.
Source: bitcoin.news
The Crypto Market Didn’t Embrace Apple’s New Tech
Apple’s Vision Pro virtual reality headset, unveiled at the WWDC conference, excited tech enthusiasts, but the crypto market reacted lukewarmly. Apple avoided mentioning the term “metaverse,” popularized by Meta. Investors had hoped the new headset would boost metaverse-related tokens, but the SEC’s new lawsuit against Binance dampened investor optimism for these tokens.
Source: cointelegraph
Biden Opposes Support for Crypto Traders
U.S. President Joe Biden rejected a Republican proposal to reduce taxes on cryptocurrency traders, calling it “unacceptable.” Biden stated, “I will not approve a proposal that protects tax fraud by wealthy individuals and crypto traders while cutting food assistance for the poor. If I agree to this proposal, nearly a million Americans will be at risk.” Many in social media criticized Biden for ignoring the rights of crypto traders.
Source: bitcoin.news
Teenager from El Salvador Earns Income Teaching Bitcoin
Gerardo Moran, an 18-year-old from El Salvador, shared on Twitter that he had returned to his former high school, Antonio J. Alfaro School, as part of the “Mi Primer Bitcoin” (My First Bitcoin) diploma program. He taught a group of eight senior teachers about Bitcoin. In August 2022, El Salvador’s Director of Education, Gilberto Moto, told Cointelegraph that the government is focused on ensuring Bitcoin education for young people throughout the country.
Source: cointelegraph
The UAE is becoming the main hub for Bitcoin mining in the Middle East
The UAE is becoming the main hub for Bitcoin mining in the Middle East. The United Arab Emirates is gradually strengthening its position as a Bitcoin mining destination in the region. UAE mining operations began in May, in collaboration with Marathon Digital, a Bitcoin mining company, and the Abu Dhabi government’s digital asset management fund. Abu Dhabi has become a center for various cryptocurrency mining activities in the UAE due to its energy efficiency and strategic location as a trading hub in the country. According to Hashrate Index data, Bitcoin mining capacity in the UAE is around 400 megawatts, which is about 4% of the global Bitcoin hashrate. While countries like the United States, China, Russia, and Kazakhstan remain the top four with the largest shares of the global Bitcoin hashrate, the UAE, thanks to its available resources, could gradually rise in ranks. The UAE’s electricity demand fluctuates significantly between the hottest and coolest months, resulting in substantial energy loss. This energy gap can be utilized by Bitcoin miners. Another advantage for miners in the UAE is the zero-tax policy, meaning Bitcoin miners can register in one of the 30 free trade zones in the country and avoid corporate taxes, VAT, and import duties.
Source: Cointelegraph
Increased Tether Purchases in Russia Following Wagner Uprising
When Russia was on the brink of civil war, many Russian citizens sought refuge in cryptocurrencies. During the Wagner private army rebellion, exchanges between rubles and Tether (USDT) surged to approximately $15 million, or nearly 1.3 billion rubles. Citizens in countries facing political and economic crises often turn to digital currencies during such times. For example, demand for Tether in Turkey has been high since May amid the inflation of the lira.
Source: bitcoin.news
SEC Lawsuit Against Binance
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Binance’s U.S. branch and its CEO, Changpeng Zhao, in the District Court of Columbia, alleging that Binance has been operating illegally in the U.S. by failing to register as a securities exchange. The SEC claims that Binance’s executives enriched themselves with billions of dollars while putting investors’ assets at serious risk. SEC Chair Gary Gensler stated that Zhao and Binance misled investors about risk controls and engaged in manipulative practices. The SEC seeks to permanently ban Binance and Zhao from further operations, return illegal profits with interest, and impose financial penalties.
Source: Cointelegraph
Binance Responds to SEC Allegations
Binance has responded to the SEC’s allegations of money laundering, stating that the claims are due to a misinterpretation of the facts. A Binance U.S. spokesperson said, “We believe the SEC’s claims regarding money laundering are baseless, based on fundamental misunderstandings of the facts and the misuse of applicable law.” According to Binance, neither the company nor its CEO has any involvement in money laundering activities.
Source: Bitcoinist
China, Despite Crypto Ban, Is Binance’s Largest Market
In May 2023, Chinese users’ spot and futures trading on Binance exceeded $90 billion, despite the country’s ban on cryptocurrencies. China accounts for 20% of Binance’s global trading volume, making it the exchange’s largest market. Binance has managed to circumvent the country’s restrictions by directing users to various Chinese domain websites. Chinese Binance users use techniques like document forgery and bank account manipulation to bypass identification systems.
Source: U.Today
Two Major Wins for the Crypto Space in the U.S.
On July 28, the U.S. House Financial Services Committee finalized and approved two bills: the “Transparency for Payment Stablecoin Act” and the “Custody of Digital Assets” bill. If passed by the full House and Senate, these historic bills would become law, formally recognizing the right to self-custody of crypto assets and bringing transparency to the stablecoin market in the U.S., while curbing arbitrary actions by the SEC. This would pave the way for more capital to flow into the crypto market.
Source: Cointelegraph
Shift of Capital Toward AI Investments
Venture capital funding in the Web3 sector saw a significant 76% drop in Q2 2023. Web3 startups raised just over $1.8 billion in 2023, compared to $7.5 billion in the same period last year. Analysts suggest that much of the capital has been redirected toward investments in artificial intelligence.
Source: Coindesk.com
FedNow Service Launches
FedNow, the latest instant payment system from the U.S. Federal Reserve, launched on July 20, 2023, covering services for 41 American banks. FedNow will make banking easier for many Americans by allowing them to transfer money within seconds, anytime. However, there are concerns that FedNow might be a precursor to the U.S. Central Bank Digital Currency (CBDC), which could lead to increased control over people’s banking transactions by the Federal Reserve.
Source: YouTube
The Central Bank of Russia unveils the logo for the digital ruble
The Bank of Russia has officially unveiled the logo for the digital ruble, its central bank digital currency (CBDC) project. The bank also released the fee structure for various transactions using the digital ruble. However, according to Olga Skorobogatova, Deputy Governor of the Central Bank of Russia, the digital ruble is not expected to achieve widespread adoption in the country before 2025, or possibly even 2027.
Source: Cointelegraph
Robert F. Kennedy Jr.: I will support the U.S. dollar with Bitcoin
Robert F. Kennedy Jr., Democratic candidate for the U.S. presidency, has promised that if elected, he will gradually support the U.S. dollar with Bitcoin. Kennedy has two bold new policies for his administration: first, exempting Bitcoin (BTC) holders from capital gains taxes, and second, backing the U.S. dollar and treasury bills with a percentage of hard assets such as Bitcoin, gold, and silver. This is an effort to counteract the moves of crypto-friendly countries like Switzerland, Singapore, Germany, and Portugal. Kennedy believes that a tax exemption policy will encourage investment in Bitcoin, protect citizens’ privacy, and keep top talent in the U.S.
Source: Cointelegraph.com
The UK rejects the proposal to regulate cryptocurrencies like gambling
The UK government has rejected a new proposal from the country’s Treasury Committee, which had called for regulatory measures for cryptocurrencies similar to those for the gambling sector. The UK government emphasized its “strong opposition” to this proposal, stating that such an approach could be in direct conflict with internationally agreed recommendations.
Source: Coindesk.com
Parliament’s Digital Economy Committee report on the legal status of the digital Rial
Mojtaba Tavangar, head of the Parliament’s Knowledge-Based and Digital Economy Committee, outlined a report on the legal status of the digital rial in a letter to Mohammad Reza Pour Ebrahimi, head of the Economic Commission. The report is divided into three sections: “Legal Considerations for Implementing the Digital Rial,” “Advantages and Disadvantages of Digital Currency,” and “Resolutions and Necessary Actions for Implementing the Rial Governance Plan.” The report also states: “The Central Bank has received the necessary legal permissions to implement the digital rial and there is no legal barrier to its introduction. However, further expert studies are needed to address the technical and substantive issues predicted for the feasibility of using digital currency. It is important to note that some central banks around the world, due to a lack of understanding, believe their authority would be diminished by cryptocurrencies and thus have strongly opposed them. On this basis, the use of digital rial should not cause the Central Bank to further hinder the growth and regulation of cryptocurrencies in our country.”
Source: ISNA
New electricity prices pose new challenges for cryptocurrency mining operators
Blockchain industry professionals, in a Blockchain Association gathering titled “The Latest Status and Methods of Energy Supply for the Cryptocurrency Mining Industry,” discussed their issues, including the rising electricity prices and the retroactive enforcement of laws. They explained that these factors have led to billing disputes and debts owed to the Ministry of Energy. “Based on the new mining and industrial prices, mining is no longer profitable,” they said. “Mohammad Khodadadi,” the project manager for cryptocurrency at Tavanir (the Iranian Power Generation, Distribution, and Transmission Company), commented: “Mining might be the least significant sector in blockchain, but the problem regarding mining in the country is beyond Tavanir’s control and requires high-level decision-making. Given Iran’s lower electricity rates compared to other countries, we are facing arbitrage and illegal mining.” He further explained: “The Ministry of Energy doesn’t have a singular factor to base its decisions on, and it’s unrealistic to expect continuous electricity supply for consumers who are willing to pay more. On the other hand, we face public pressure that views mining electricity as an export. The cryptocurrency mining industry cannot consistently rely on power supply due to network limitations. Renewable energy is one of the solutions.”
Source: Attachments
