Top Blockchain News for Sep 14, 2023

September 14, 2023

Welcome to Morning Blockchain, where we’re serving up a power-packed blend of blockchain and cryptocurrency news to stimulate your neurons and fuel your crypto journey. In today’s edition, we’ll explore the integration of traditional finance with the crypto industry, the regulatory challenges faced by DeFi projects, the role of major tech companies in blockchain infrastructure, and much more. So grab your favorite energy drink, because we’re about to embark on a brain-teasing adventure through the world of blockchain and cryptocurrency. Let’s dive in!

Top Stories

Nomura-Backed Custodian Komainu Adds Hidden Road to Crypto Collateral Management Platform The article highlights that Hidden Road, a prime broker, has become the first to join Komainu’s ecosystem, allowing clients to use digital assets as collateral while ensuring their assets are securely held in regulated custody; this is relevant to blockchain and cryptocurrency as it demonstrates the growing integration of traditional financial services with the crypto industry. Price Cuts at Blockchain Platform Alchemy Reveal Persistence of Crypto Winter The “Alchemy Scale Tier” plan offers options for developers to choose their level of commitment to the platform, both financially and computationally, at a time when the crypto industry is facing budget cuts for blockchain application development. Judge approves order allowing FTX to start selling crypto A Delaware district judge has approved FTX’s plan to sell off billions of dollars worth of cryptocurrency to repay its creditors, with limits on weekly sales and the option to hedge bitcoin and ether; this article is relevant to blockchain and cryptocurrency because it highlights the use of blockchain technology in managing and distributing assets during bankruptcy proceedings. The Protocol: The CFTC Is Cracking Down on Crypto The CFTC has charged three decentralized finance (DeFi) platforms with operating illegal derivatives trading services, highlighting the ongoing regulatory debate over who should oversee the US crypto industry, while CFTC Commissioner Caroline Pham proposed a crypto-friendly program for regulated crypto markets and tokenization. Binance names Rachel Conlan as Chief Marketing Officer Binance, the popular crypto exchange, has appointed Rachel Conlan as its new Chief Marketing Officer (CMO), aiming to strengthen partnerships and collaborations to bring more people into the web3 space; this move is relevant to blockchain and cryptocurrency as it showcases the importance of marketing and outreach efforts in expanding the adoption of cryptocurrencies and decentralized technologies. BitMEX’s Prediction Market Is Now Live BitMEX is launching a prediction market for various events, including the recovery rate of FTX’s bankruptcy claims and the likelihood of a Bitcoin Exchange Traded Fund approval, adding a fun twist to the blockchain and cryptocurrency space. Gensler slams crypto again, says troubles can spill into broader economy SEC Chair Gary Gensler reiterated his tough stance on the crypto industry, stating that much of it falls under securities laws and is non-compliant, posing risks to investors and the broader economy, and highlighting the prevalence of misconduct and attempts to circumvent regulations, while emphasizing that new rules are not necessary as existing laws are already in place. Coinbase’s Armstrong wants DeFi to take CFTC to court Coinbase CEO Brian Armstrong expressed his support for decentralized finance (DeFi) protocols that are facing enforcement actions from the Commodity Futures Trading Commission (CFTC), stating that he hopes these protocols take the regulator to court to establish legal precedent as he believes the CFTC should not be creating enforcement actions against DeFi protocols, which are not financial service businesses and may not fall under the Commodity Exchange Act; this is relevant to blockchain and cryptocurrency as it highlights the ongoing regulatory challenges faced by DeFi projects and the need for clarity in the legal framework surrounding these protocols. Cosmos Hub upgrades to add liquid staking module The core developers at Cosmos have implemented the “Gaia v12” upgrade on the Cosmos Hub, which introduces a “liquid staking module” (LSM) that allows users to directly swap their staked Atom coins into liquid staked Atom without waiting for the unbonding period, making over $1 billion worth of staked Atom available for deployment across DeFi protocols in the Cosmos ecosystem. Google Cloud steps up as oracle provider on LayerZero network Google Cloud has become a verifier on the cross-chain messaging protocol LayerZero network, allowing users to select Google Cloud or other providers as oracles to relay messages between different blockchains, providing more options and resiliency to the network. This development is relevant to blockchain and cryptocurrency as it highlights the growing involvement of major technology companies in blockchain infrastructure and interoperability. Digital Trading Platform MetaComp Offers Clients Stablecoin-to-TradFi Security Path, Claiming Singapore First MetaComp and its parent company have obtained licenses in Singapore that allow them to offer a Client Asset Management Platform, enabling smooth asset allocation in both fiat and stablecoins, making them the first in the country to do so. This is relevant to blockchain and cryptocurrency as it showcases the regulatory progress Singapore is making in embracing digital assets and providing licensed platforms for asset management. SEC goes after Stoner Cats NFTs known for Ashton Kutcher, Jane Fonda The Securities and Exchange Commission (SEC) has charged Stoner Cats 2 LLC for conducting an unregistered offering of nonfungible tokens (NFTs), marking the latest action by the agency against an NFT project; this case is relevant to blockchain and cryptocurrency as it highlights the regulatory scrutiny faced by NFT projects and the need to comply with securities laws in token sales. First Mover Americas: Binance.US CEO Departs as Company Cuts 1/3 of Workforce BitMEX has launched a prediction market where traders can bet on real-world events, joining the popularity of prediction markets like Polymarket, though BitMEX’s focus is on more serious topics such as the recovery rate of bankruptcy claims, approval for a Bitcoin ETF, and the likelihood of Sam Bankman-Fried going to jail. This is relevant to blockchain and cryptocurrency as it shows the growing trend of using prediction markets in the industry and the potential for investors to speculate on various outcomes. Ether futures entering discount territory on CME suggests bearish outlook: K33 Research The article discusses the unusual bearish outlook on the ether futures market and its implications for the cryptocurrency industry, particularly in relation to the upcoming approval of ether futures ETFs and the potential impact on the blockchain and cryptocurrency space. Movement Labs raises $3.4 million in pre-seed to grow ‘Move’ Blockchain infrastructure startup Movement Labs has raised $3.4 million in pre-seed funding to launch a network of modular Move-based blockchains, with the aim of growing the adoption and development of Move, a smart contract development language that addresses security vulnerabilities in the crypto sector and offers benefits such as direct interaction with digital assets and bytecode safety privileges. The funding will also support the development of Movement’s modular Layer 1 solution called M1, which combines performance with liquidity and composability. CFTC enforcement director calls DeFi exchanges ‘obvious threat’ The Commodity Futures Trading Commission’s enforcement director has labeled unregulated decentralized finance exchanges as an “obvious threat,” following charges against three DeFi protocols for offering illegal digital asset derivatives trading, highlighting the need for compliance with regulations in the decentralized finance space and the potential impact on the industry’s growth and reputation. BNB Chain’s Layer 2 Network opBNB Goes Live opBNB, a blockchain project, is prioritizing scalability and security by implementing stringent criteria such as high availability, high transaction rate, stress testing, low gas costs, fast finality, and enhanced security through external audits. This is relevant to blockchain and cryptocurrency as it highlights the importance of these factors in building a robust and efficient blockchain network. What is a Mimblewimble blockchain? Mimblewimble is a privacy-focused blockchain protocol that aims to address privacy and scalability issues in traditional blockchains like Bitcoin, and in this article, we explore what it is, how it works, and what makes it different from other protocols, making it relevant to the world of blockchain and cryptocurrency. Ripple CEO says the crypto community ‘can’t pretend regulation doesn’t matter’ Ripple CEO Brad Garlinghouse believes that proper regulation is necessary for the cryptocurrency industry to thrive, emphasizing the importance of anti-money laundering (AML) and know-your-customer (KYC) measures, and suggesting that the US is not an ideal country for crypto startups due to regulatory uncertainty; this article is relevant to blockchain and cryptocurrency as it highlights the ongoing debate surrounding regulation and its impact on the industry. Judge Allows Bankrupt FTX to Sell Its Crypto Holdings, Including BTC and SOL FTX, a cryptocurrency exchange, has filed a request to engage in activities such as hedging and staking digital assets, which they argue would help manage risk and generate returns for their clients and creditors. This article is relevant to blockchain and cryptocurrency as it explores the potential for traditional financial activities being adapted to the crypto space. What Has the Blockchain Association Actually Achieved? The article discusses the challenges faced by the cryptocurrency industry in gaining support from lawmakers and regulators in the United States, with many members of Congress being openly hostile towards crypto’s goals and hesitant to regulate an industry that has caused financial losses for some voters; this is relevant to blockchain and cryptocurrency as it highlights the uphill battle faced by the industry in shaping favorable policies and regulations.