Headline: Biden Promises to Veto House Bill to Repeal SEC Crypto Policy
Article:
President Biden has pledged to veto a bill that is set to be voted on in the House on Wednesday, which aims to repeal the SEC’s crypto policy. This policy is seen as hindering banks from dealing with crypto customers. The bill’s sponsors claim that the SEC mishandled the policy. While some Republican lawmakers support the move, Democrats argue that the resolution is too extreme. The White House has expressed support for the SEC’s policy, stating that its repeal would bring financial instability and market uncertainty. If the bill passes, similar policies by the SEC will be permanently blocked.
CryptoQuant Analyst: Ethereum’s Dencun Upgrade Causes Inflation
An analyst from data firm CryptoQuant has stated that Ethereum’s Dencun upgrade is causing inflation and may undermine its low inflation currency features. Due to the Dencun upgrade, Ethereum’s burn rate has dropped to one of the lowest levels since the transition from Proof of Work (PoW) to Proof of Stake (PoS) consensus mechanism, resulting in Ethereum’s supply growing at the fastest daily rate since network consolidation. The analyst explains that prior to the Dencun upgrade, higher network activity on Ethereum meant higher costs for burning, resulting in less Ethereum supply. However, after the Dencun upgrade, the total cost of burning has decoupled from network activity.
Market Update:
As of the time of writing, according to Coingecko data:
BTC recent price: $61,185.67, 24-hour change: -1.9%
ETH recent price: $2,973.59, 24-hour change: -1.4%
BNB recent price: $588.44, 24-hour change: +2.0%
SOL recent price: $142.07, 24-hour change: -4.3%
DOGE recent price: $0.1434, 24-hour change: -4.6%
XPR recent price: $0.5172, 24-hour change: -1.5%
Policy:
The US House of Representatives passed a resolution to overturn the SEC’s cryptocurrency accounting standards announcement, with a vote result of 228-182, reflecting clear partisan divisions. The announcement requires banks to record customer crypto assets as liabilities, sparking industry controversy and concerns that it may hinder services. Republicans support the resolution, but the White House has stated that the President will veto it, fearing it could lead to financial instability. Democrats accuse the move of potentially undermining the SEC’s authority. The resolution will now go to the Senate for further debate and face more partisan disputes.
Opinion: FCC’s Restoration of Net Neutrality Rules Benefits Web3 Startups
Sarah Aberg, General Counsel at Nova Labs, states that the Federal Communications Commission’s (FCC) restoration of net neutrality rules is good news for Web3 startups. These rules safeguard the principles of an open internet, providing support for innovation in the digital age and reflecting core American values. The restoration of net neutrality rules is seen as a forward-thinking, innovation-friendly regulatory measure. These rules protect innovators in operating on the internet, encouraging fair competition for new technologies, applications, and services. The FCC’s action will strengthen future innovation while protecting consumers and critical infrastructure interests.
SEC Counters Ripple’s Claim to Reduce $2 Billion Fine to $10 Million
According to recent court filings, the US Securities and Exchange Commission (SEC) is countering Ripple’s claim to reduce the fine to be paid for selling its products from nearly $2 billion to $10 million. Ripple argued in its motion to dismiss last month that the proposed penalty should be closer to $10 million. The SEC points out that the proposed penalty is substantial but states in a filing released on Tuesday that Ripple’s proposed penalty would be a “light touch” punishment.
Blockchain Application:
Former Amazon Software Developer Creates Bitcoin Wallet App Called Machankura
Kgothatso Ngako, a former Amazon software developer from South Africa, has created a Bitcoin wallet app called Machankura to address the issue of millions of people in Africa not having smartphones. The app can run on basic phones and enables Bitcoin transactions using the Lightning Network, without the need for a touch screen or camera. Ngako mentions that they already have nearly 15,000 users, covering countries such as South Africa, Nigeria, and Kenya. He also mentions that the service is similar to Facebook’s approach in developing countries, using USSD interfaces for reverse billing. Users can use Lightning addresses without the need for copy-pasting, simply entering numbers or email addresses to conduct Bitcoin transactions.
Cryptocurrency:
Shrapnel, a blockchain game, announces support for token purchases with credit and debit cards
First-person shooter game “Shrapnel” (an Avalanche blockchain game available on the Epic Games Store) has announced that token purchases can now be made using credit and debit cards, aiming to increase transaction volume. According to a statement, players previously could only acquire SHRAP tokens through exchanges. Now, with integration with the Halliday portal, players can use Moonpay or Stripe as payment gateways to quickly convert fiat currency into SHRAP.
MakerDAO: DAI Supply Increases by $1 Billion in Two Months
MakerDAO on the X platform has reported that DAI supply has increased from $4.4 billion to $5.4 billion within 60 days. In addition to the supply growth, DAI reached a record on-chain trading volume of $636.72 billion in April. The Dai Savings Rate (DSR) has also shown positive momentum, steadily increasing over the past few months, with total deposits surpassing $2 billion last week.
Robinhood’s Q1 Crypto Trading Volume Surges 224% to $36 Billion
Robinhood has reported better-than-expected Q1 performance, with its crypto trading volume surging 224% to $36 billion. Despite facing regulatory scrutiny from the SEC, Robinhood’s crypto division revenue grew 232% YoY, reaching $126 million. This played a crucial role in the overall growth of its trading-related revenues, which increased by 59%.
Bored Ape Yacht Club (BAYC) Holders Lose Three Rare NFTs in Phishing Scam
According to ZachXBT monitoring, holders of Bored Ape Yacht Club (BAYC) have reportedly lost three rare NFTs in a phishing attack. The blockchain explorer Etherscan also points out that wallets associated with BAYC NFT transactions have been used in previous phishing scams, but it is unclear how this phishing attack occurred.
The Bored Ape NFTs that were phished are BAYC #7531, BAYC #6736, and BAYC #2100. According to data from NFT marketplace OpenSea, their values are 21 ETH ($62,960), 15.8505 WETH ($47,500), and 18 ETH ($54,000) respectively. The total value is 54.8505 ETH ($164,400).
Important Economic Developments:
CME “FedWatch” data shows a 91.2% probability of the Fed maintaining interest rates in June, while the probability of a 25 basis point rate cut is 8.8%. The probability of the Fed keeping rates unchanged until August is 69.5%, with a cumulative 25 basis point rate cut probability of 28.4% and a cumulative 50 basis point rate cut probability of 2.1%.
Fed’s Collins: Reaching 2% Inflation Level May Take Longer Than Expected
Fed’s Collins states that reaching the 2% inflation level may take longer than expected. She believes that the policy has moderate restrictions, which is appropriate for managing risks. She suggests maintaining interest rates unchanged until confidence is strengthened and highlights that the full impact of restrictive policies may not have been seen yet. With high uncertainty, she emphasizes the necessity for the Fed to remain patient. She also believes it is necessary to slow down the pace of economic growth in the US to bring inflation back to a path toward 2%. She notes that no signs of inflation decline have been observed since 2024 and expects the demand to eventually slow down, although there is uncertainty regarding the timing.
