LianGuai Morning Post | Coinbase will gradually shut down its loan business Coinbase Borrow in the coming months.
Coinbase will shut down its loan business Coinbase Borrow in the coming months.
Headlines
▌Coinbase to gradually shut down Coinbase Borrow in the coming months
A Coinbase spokesperson told CoinDesk that Coinbase will gradually shut down Coinbase Borrow in the coming months, as the company focuses its resources on products that are of most interest to customers. Coinbase Borrow is a program that allows customers to obtain up to $1 million in fiat loans using their held bitcoins, and customers who hold loans through the program must repay any outstanding loan balance by November 20, 2023.
In May, Coinbase announced that as part of its regular process of reevaluating its products, it would no longer allow new loans to be issued to Coinbase Borrow customers.
Market
As of the time of writing, according to coinmarketcap data:
The recent trading price of BTC is $29,798, with a daily change of -0.05%;
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The recent trading price of ETH is $1,890.82, with a daily change of +0.12%;
The recent trading price of BNB is $242.76, with a daily change of +0.38%;
The recent trading price of XRP is $0.7940, with a daily change of +0.58%;
The recent trading price of DOGE is $0.0706, with a daily change of -0.01%;
The recent trading price of ADA is $0.3158, with a daily change of -0.52%;
The recent trading price of SOL is $25.361, with a daily change of -1.34%.
Policies
▌Republican members of the US House of Representatives introduce the “21st Century Financial Innovation and Technology Act” to establish a regulatory framework for digital assets
Glenn Thompson, Chairman of the House Agriculture Committee, French Hill, Chairman of the Digital Assets, Financial Technology, and Inclusive Growth Subcommittee, and Dusty Johnson, Chairman of the Commodity Exchanges, Energy, and Rural Development Subcommittee, announced the introduction of HR 4763, the “21st Century Financial Innovation and Technology Act,” with co-sponsors including Representatives Tom Emmer and Warren Davidson. The committee stated that the bill establishes a regulatory framework for digital assets, protects consumers, promotes innovation, and positions the United States as a leader in finance and technology.
According to the over 200-page bill, market regulators should issue rules defining “blockchain” and “digital assets” in existing financial laws, and the SEC and the US Commodity Futures Trading Commission will be required to develop specific rules for trading platforms and exchanges related to digital assets.
Patrick McHenry, Chairman of the House Financial Services Committee, stated in a press release that the Financial Services and Agriculture Committees plan to debate and vote on the bill in the full House next week.
▌The UK FCA is designing prudential requirements for companies engaged in cryptocurrency activities
The Financial Conduct Authority (FCA) in the UK announced in its annual report on Thursday that it is designing prudent requirements for companies engaged in cryptocurrency activities. The regulatory agency is responsible for maintaining a register of cryptocurrency companies approved to operate in accordance with the country’s anti-money laundering requirements, and will also negotiate prudential rules for companies engaged in cryptocurrency activities.
The FCA has already established prudential regulations for investment companies based in the UK, such as fund management companies, asset management companies, and trading companies. These regulations require companies to assess capital adequacy and risks to identify potential harm to investors and provide appropriate resources to mitigate such harm.
▌Joint Statement from the EU-US Financial Regulatory Forum: Discussing Updates on Cryptographic Assets
The EU-US Financial Regulatory Forum emphasizes the close cooperation between Europe and the United States in multiple areas, focusing on six major themes: (1) market development and financial stability risks; (2) regulatory development for banks and insurance; (3) anti-money laundering and counter-terrorism financing; (4) sustainable finance and climate-related financial risks; (5) regulatory and supervisory cooperation in capital markets; and (6) operational resilience and digital finance.
The joint statement from the EU-US Financial Regulatory Forum states that European regulatory agencies have updated their work on regulatory and technical implementation under the Digital Operational Resilience Regulation. Discussions involve recent market developments, including updates on cryptographic assets, as well as updates on regulatory and enforcement efforts in the United States and Europe. The exchange also covers developments related to potential adoption of central bank digital currencies, with the European Commission proposing the latest legislative proposal for establishing a digital euro. Participants also had preliminary discussions on the use of artificial intelligence in financial services.
▌German Central Bank Questions the Legality of Bank Deposit Tokens
In the monthly report of the Deutsche Bundesbank in July, the central bank discussed digital currencies, including central bank digital currencies, tokenized deposits, and stablecoins. While tokenized deposits received little attention, it is enough to cause uncertainty. Many banks consider tokenized deposits to be legally equivalent to bank deposits. According to the German central bank, they may be considered deposits or they may not be considered deposits. Depending on the design, it could be an electronic currency token under the MiCA regulation, or it could be a tradable security. It also noted that it is currently unclear whether tokenized deposits would be covered by deposit insurance.
▌South Korea Seeks Advice from Cryptocurrency Companies to Combat North Korean Hacker Activities
South Korean officials are seeking advice from cryptocurrency companies to combat North Korean cryptocurrency crimes. Kim Gunn, the special representative for the Korean Peninsula peace and security affairs, met with Mandiant, a cybersecurity company based in Virginia, to discuss how to prevent North Korean hackers from stealing encrypted assets of individuals and corporate entities. Kim Gunn also met with executives from Chainalysis, a cryptocurrency intelligence company, to discuss network strategies for North Korea’s theft of cryptocurrency assets. The Korean News Agency recently reported that North Korean hackers stole $700 million worth of cryptocurrency in 2022.
Blockchain Applications
▌Hive is Using Ethereum Miners and AI to Mint Ordinals
Canadian cryptocurrency miner HIVE Digital Technologies is using Ethereum miners and artificial intelligence to mint Ordinals, with the help of old Ethereum mining equipment to generate art engraving on the Bitcoin blockchain. HIVE CEO Aydin Kilic said that after Ethereum transitions to proof-of-stake, HIVE is exploring alternative solutions for Ethereum mining. The company wants to create a fully integrated AI and Ordinals project that leverages new technology to develop art that aligns with the company’s overall corporate strategy of resource maximization.
▌OpenSea Launches Peer-to-Peer NFT Exchange Feature Deals
NFT marketplace OpenSea has announced the launch of Deals, a peer-to-peer NFT exchange feature that allows traders to add collectibles and directly interact with other collectors. Deals will enable collectors to trade NFTs with each other, including WETH, and the feature is supported by OpenSea’s native NFT protocol Seaport.
OpenSea added that the goal of the product is to make the NFT exchange process trustworthy and avoid users being deceived by counterfeit third-party websites or links during transactions.
▌Seven Bank Launches Soul-Bound NFT Series
Japanese financial giant Seven Bank has announced the launch of the Soul-Bound NFT series in collaboration with Astar blockchain and Tokyo NFT issuance platform Sushi Top Marketing. The collection consists of unique and non-transferable tokens. From July 18th to October 16th, users can receive free digital artwork by making donations through ATMs. After making a donation, they will receive a deposit receipt with a unique QR code. By scanning and setting up the Sushi Top Marketing wallet, they can claim the art token.
Cryptocurrencies
▌CBOE CEO: Providing More Information to SEC for Clarity on Bitcoin Spot ETF
CBOE CEO Ed Tilly told CNBC that they are providing more information to the SEC to seek clarity on a Bitcoin spot ETF. He expressed the hope that the SEC can receive all the necessary information to demonstrate its regulatory approach to all participants.
CBOE has several Bitcoin ETF applications listed on its exchange, including funds from WisdomTree, VanEck, and Ark. This week, the SEC confirmed the registration of applications submitted by several companies, including VanEck and WisdomTree, in the Federal Register.
▌New York Representative: US Regulatory Agencies Put Retail Investors at Risk
New York Representative Ritchie Torres stated in an interview that the preliminary ruling on XRP reveals loopholes in securities laws. It protects institutional investors while exposing retail customers to risks, even though the latter may need more protection than the former. For me, the lack of protection for retail investors highlights the urgency of passing market structure legislation to protect ordinary American consumers.
Torres said that he has been actively negotiating with Republicans on the House Financial Services Committee to ensure the accuracy of the cryptocurrency market structure bill. He personally believes that blockchain technology and cryptocurrency have the potential to create a better, cheaper, and faster payment system. However, in order for cryptocurrency and blockchain to have a chance of success, a regulatory framework and transparency are needed.
▌CoinCenter and other cryptocurrency advocacy groups condemn excessive intervention in DeFi by the CANSEE bill
CoinCenter and other cryptocurrency advocacy groups have criticized the Cryptocurrency Assets National Security Enhancement and Enforcement Act (CANSEE) proposed by the Senate, which would impose strict regulations on individuals participating in decentralized finance (DeFi). CoinCenter and its executive director Jerry Brito criticized the proposal as “confusing, arbitrary, and unconstitutional” in a statement on July 20th, and Kristin Smith, CEO of the Blockchain Association, stated that the bill is impractical and fundamentally incompatible with digital asset technology.
This bipartisan bill was introduced on July 19th by Democratic Senators Jack Reed and Mark Warner, as well as Republican Senators Mike Rounds and Mitt Romney. If incorporated into law, DeFi platform operators and key stakeholders will be held responsible for the platform’s illegal use.
▌Coinbase Chief Legal Officer: The new bill in the House of Representatives will ultimately enable the United States to participate in a global dialogue on digital asset regulation
In response to the recently announced 21st Century Financial Innovation and Technology Act by the US House of Representatives, Coinbase Chief Legal Officer LianGuaiulgrewal.eth commented on social media that if we want to be taken seriously as a country, we must act seriously as a country, and this legislation will ultimately enable the United States to participate in a global dialogue on digital asset regulation. Congress should immediately pass and enact this bill.
▌CryptoQuant: The US government sold 8,200 bitcoins related to Silk Road on July 12th
A report from CryptoQuant’s on-chain analysts shows that the US government sold 8,200 bitcoins related to the dark web marketplace Silk Road on July 12th, with most of the tokens transferred in a 9,319 BTC transaction, where 8,200 BTC was sent to one address and 1,119 BTC was sent to another address.
CryptoQuant stated that the first address distributed the 8,200 bitcoins to different addresses, with each address receiving 79 coins, which were eventually deposited into exchanges or consolidated into fewer wallets. CryptoQuant also indicated that the US government still holds 195,307 bitcoins.
▌Uniswap creator Hayden Adams’ Twitter account hacked
The Uniswap Foundation tweeted a warning that Hayden Adams’ Twitter account was hacked. The account sent multiple tweets containing links to scam websites and warned users not to click on any suspicious links in the tweets.
One of the scam tweets sent from Adams’ account urged UniswapX users to visit a Russian-hosted website to check if they were eligible for UNI tokens that were being given away.
▌FTX sues SBF and former executives to recover hundreds of millions of dollars in alleged fraudulent transfers
Court documents show that cryptocurrency exchange FTX is suing Sam Bankman-Fried and other former executives to recover hundreds of millions of dollars in alleged fraudulent transfers.
Important Economic Developments
▌Former Fed Chair Ben Bernanke: July rate hike may be the last
Former Fed Chair Ben Bernanke said on Thursday, “The widely anticipated rate hike by the Fed next week may be the last in this tightening cycle.” Bernanke expects inflation to “persistently” decline to a range of 3% to 3.5% over the next six months as rent increases subside and car prices fall. By early next year, the inflation rate will drop to a level close to or slightly above 3%. Regarding the job market, Bernanke stated that although the number of job vacancies has declined, there are still about 1.6 vacant positions per unemployed person. The former Fed Chair noted that as a cost of fighting inflation, the US may experience an economic slowdown, but he emphasized that any recession could be mild, with a very moderate increase in unemployment rate and a slight economic slowdown.
LianGuai Encyclopedia
▌Bitcoin mnemonic tool BIP39Colors
The “BIP39Colors” open-source tool converts BIP39 mnemonics into a set of colors and also enables the reverse conversion from colors to mnemonics. By converting mnemonics into color combinations, it provides a more intuitive and easy-to-remember way to store and recover cryptocurrency wallets.
Disclaimer: LianGuai, as a blockchain information platform, publishes articles for informational reference only and does not constitute actual investment advice. Please establish the correct investment concept and be sure to enhance risk awareness.
