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SEC court win over Terraform and Do Kwon opens door for UST investigation

Terraform Labs’ court loss over Mirror Protocol opens the doors for greater action on the collapse of stablecoin TerraUSD.  Yesterday, the Second Circuit Court rejected Terraform Labs’ appeal against the Securities and Exchange Commission, upholding an earlier decision from the Southern District of New York. The SEC served founder Do Kwon with a subpoena as he prepared to go onstage to speak at Messari’s MainNet event in Manhattan back in November.  In the attempted appeal, Kwon’s lawyers argued that the …

Grayscale hires Obama’s former Supreme Court lawyer for legal push against SEC

Grayscale, a leading crypto asset manager, has retained a heavy hitter from the Obama-era Department of Justice. The new legal counsel, Donald B. Verrilli Jr., was the solicitor general under President Obama. The role is a Department of Justice appointment that represents the US government in cases before the Supreme Court. Verrilli is currently a partner at Munger, Tolles & Olson.  Jennifer Rosenthal, Grayscale’s VP of communications announced the hire in a June 7 Twitter thread, noting the firm’s “unwavering …

Abu Dhabi to provide all women living in city free crypto domains

Abu Dhabi and the Abu Dhabi Investment Office (ADIO) are partnering with web3 identity platform and NFT domain name provider Unstoppable Domains to give free crypto domains to all women who live in the UAE capital, according to a news release. The move aims to increase opportunities for women to learn about and ultimately participate in web3 in Abu Dhabi, where 50% of the small to medium-sized enterprises are already women-owned. The initiative, which was also tweeted by ADIO, provides …

Fed Vice Chair Brainard defends CBDCs against Republican attacks in first hearing since confirmation

“America can’t be left behind,” said Maxine Waters (D-CA), chairwoman of the House Financial Services Committee, opening a May 26 hearing on a US central bank digital currency. The virtual hearing featured testimony from Lael Brainard, a longtime governor at the Federal Reserve who in April was confirmed as vice chair. Central to the hearing was a January Fed discussion paper on the outlook for an American CBDC. Brainard’s testimony, like the discussion paper itself, was diplomatic, but fundamentally sought …

CFTC roundtable on FTX proposal highlights barriers in clearing of digital vs physical assets

Cotton or oil markets cannot settle like Bitcoin — a fairly obvious point, but the distinction between the two was at the center of a May 25 roundtable hosted by the Commodity Futures Trading Commission. The roundtable centered on the CFTC’s consideration of a proposal from crypto exchange FTX to disintermediate derivatives trading on its platform.  Stakeholders from the derivatives trading industry appeared in force, with representatives from exchange operators CME and ICE joined by others from Citi, Goldman, FTX, …

At CFTC panel, CME exec slams FTX proposal by drawing comparison to Terra’s collapse

The opposition by CME to FTX’s proposal for margin disintermediation continues to play out in the public eye.  The Commodity Futures Trading Commission is hosting a roundtable discussion on Wednesday related to crypto exchange FTX’s proposal to disintermediate derivatives trading.  Among 31 panelists in attendance is Sean Downey, an executive director at CME, the leading source of derivatives trading in the US today.  Downey criticized FTX’s proposal as based on several assumptions, saying that “one is essentially that an algorithm …

Ted Cruz: ‘I want Texas to be the oasis on planet Earth for bitcoin and crypto’

Senator Ted Cruz wants his home state of Texas to be at the center of crypto development.    “I believe in Bitcoin,” Cruz said. “I want Texas to be the oasis on planet Earth for bitcoin and crypto.”   Cruz, a Republican, was giving the keynote address at conservative think tank the Heritage Foundation at a May 23 event called “Bitcoin and the American Experiment.” He was referencing the recent expansion of cryptocurrency mining in Texas.    The event featured …

Terra disaster fuels work of Congress on stablecoin legislation

As Terra and Luna spiral, lawmakers are finding themselves pulled into the crypto orbit. Stablecoins have been a priority for US lawmakers since November. Following TerraUSD’s collapse this week, Congress is suddenly facing the issue of algorithmic stablecoins.  “This proves that algorithmic stablecoins are probably the riskiest of all,” Rohan Grey, a professor at Willamette University’s law school and author of several pieces of crypto legislation, told The Block.  Maxine Waters (D-CA), chair of the House Financial Services Committee, is …

‘Unlike Republicans, we recognize that there is real risk’ to stablecoins and crypto, says Senate Banking Committee chairman

The Democrats of the Senate Banking Committee fear that their Republican colleagues are not taking the risks associated with crypto seriously.  “Their whole caucus are believers in cryptocurrency,” said Sen. Sherrod Brown (D-OH), the chairman of the committee, in conversation with The Block. “Their whole caucus seems indifferent to the risk that cryptocurrency poses.” “Unlike Republicans, we recognize that there is real risk to the system when billionaires are created out of — if we ask where the money comes …

Washington’s think tanks and wonks turn to stablecoins, CBDCs

Stablecoins have come into vogue among DC’s policy thinkers. Political intellectuals are turning to stablecoin policy and the topic of central bank digital currencies (CBDCs) in the US capital. The actual regulatory apparatus has been focusing closely on stablecoins for many months, with the President’s Working Group November report https://www.theblockcrypto.com/post/145913/washingtons-think-tanks-and-wonks-turn-to-stablecoins-cbdcs?utm_source=rss&utm_medium=rss on the subject making it a top-priority legislative item. As a consequence of both that report and President Biden’s more recent executive order, many members of not just the regulators …