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Keep encryption free | City Journal

BlockChainBulletin Staff

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Keep encryption free | City Journal

At the start of this year, it seemed like the cryptocurrency industry would never get a break. In March, a federal judge allowed the Securities and Exchange Commission to proceed with a lawsuit alleging that Coinbase, the nation’s largest cryptocurrency exchange, had been operating as an unregistered securities broker. The next day, Sam Bankman-Fried received a 25-year prison sentence for stealing billions of dollars from customers of FTX, his now-defunct cryptocurrency company. The following month, Changpeng Zhao, the founder and former CEO of Binance, the world’s largest cryptocurrency exchange, was sent to prison for four months after pleading guilty to money laundering charges. Meanwhile, federal prosecutors indicted the founders of Samourai Wallet, a cryptocurrency privacy service, alleging that they (like Zhao) failed to take adequate measures to prevent money laundering.

The SEC’s enforcement action against Coinbase, along with parallel lawsuits against Binance and a third major platform, Kraken, threatens to derail the development of the cryptocurrency industry. If the agency gets its way, exchanges will be forced to comply with securities disclosure, custody, and licensing rules. As they apply to cryptocurrencies, many of these requirements are confusing (buyers of crypto tokens don’t need disclosures about an issuer’s financial condition to make informed decisions, for example). Some are nearly incomprehensible (the practical custody of a crypto token is fundamentally different from the legal custody of a security). Some are downright paradoxical (how are exchanges supposed to convince crypto issuers, some of which are deliberately anonymous, to step forward and cooperate with a hostile SEC?). For the SEC, this disconnect between cryptocurrency markets and New Deal-era regulations is a feature, not a bug. The point is to put the industry in an impossible situation.

But the streak of bad news for the cryptocurrency industry finally ended in May, when the House passed a bill (the Financial Innovation and Technology for the 21st Century Act) that would provide the industry was in dire need of clarity, not to mention legitimacy. Under the bill, an entity could issue a digital currency that complies with a set of disclosure rules tailored to cryptocurrencies. Exchanges could then facilitate trading in that currency subject to relatively light regulation by the Commodity Futures Trading Commission. This provision arguably makes sense because SEC Chairman Gary Gensler, the architect of his agency’s anti-crypto campaign, publicly announced who hates him.

The cryptocurrency industry is attractive to speculators and scammers. Oversight is needed if digital currencies are to become mainstream financial instruments. At the moment, however, regulators are approaching the industry with alarm and animosity. Emboldened by the FTX fiasco, the government has been hard at work scare traditional banks from engaging with cryptocurrency firms. Critics they nicknamed this “Operation Choke Point 2.0,” a nod to how the Obama administration pressured banks to cut ties with politically disfavored players like gun shops and short-term lending institutions.

No one disdains cryptocurrencies more than Massachusetts Senator Elizabeth Warren, who to brag to lead an “anti-crypto army”. She wants to prevent banks and cryptocurrency exchanges from transacting with unidentified counterparties, such as owners of “unhosted” cryptocurrency wallets. (Major cryptocurrency exchanges already adhere to “know your customer” rules for their customers.) To hammer home her hardline position, she try to play like a national security hawk, expressing her concern “for anyone in Congress who is not concerned about the threat posed by Iran and North Korea and their use of cryptocurrency.” This is nonsense. Warren is not afraid of foreigners. She just wants to control Americans.

For cryptocurrency opponents, the natural end goal seems to be the imposition of a centralized, state-controlled digital currency. Private digital currencies can be designed OR fixed up to cloak transactions in anonymity; government digital currency does the opposite, allowing the state to monitor transactions, as well as block them, remove money from accounts, or exclude individuals from the banking system altogether.

Needless to say, Warren supports the creation of a central bank digital currency (CBDC). Surprisingly, some Republicans, including former House Speaker Paul Ryan, have warmed up to the prospect as well as. Most proponents only want a “wholesale” CBDC for interbank transfers. The idea is to create new efficiencies in the banking sector, thereby protecting the dollar’s ​​status as a global reserve currency. But the risks outweigh the potential benefits. Once introduced, a wholesale CBDC, could transmogrify into a “retail” CBDC, then into a mandatory retail CBDC, then into a mandatory retail CBDC that the government monitors and limits. In contrast, the efficiency gains of a wholesale CBDC could to be obtained using one of the existing private stablecoins (digital currencies pegged to the U.S. dollar or some other reference). And in any case, a push to preserve the dollar’s reserve status should begin not with heady proposals for a CBDC, but with a sober effort to address the nation’s growing debt load. If the government devalue the dollara CBDC would not be the right thing.

The virtues of private cryptocurrencies and the dangers of state-run cryptocurrencies are two sides of the same coin (so to speak). Republicans, in their recently released party platform, pledge to end the “crypto crackdown” and oppose the creation of a CBDC. They promise to defend citizens’ “right” to “mine Bitcoin” and “transact free from government surveillance and control.” Led by the likes of Gensler and Warren, Democrats tend to take an extreme position on the other side of the issue. (A cryptocurrency advocacy group from President Joe Biden has a “D” rating.) The split reflects how Republicans increasingly see themselves as countercultural dissidents, outsiders at risk of being de-banked, while Democrats have gradually become the party of institutional elites and authority. But this is a complex and still nascent realignment. Some Democrats they are coming to realize that criticizing cryptocurrencies doesn’t earn him much. Some Republicans persist in seeing the crackdown on cryptocurrencies as a matter of law and order (very like the first (The Trump administration has done so.) Cryptocurrency policy could easily change.

Regardless of what happens in Washington, cryptocurrencies will remain a bulwark against authoritarianism. The Chinese Communist Party has banned digital currencies (except its own), yet its people conduct many billions of dollars in crypto transactions per year. Strengthened by virtual private networks, the Tor browser, PGP encryption, and decentralized exchanges, cryptocurrencies will continue to act as a check on any attempt to build a surveillance state or social credit system.

With a market cap of $2.5 trillion, cryptocurrencies are here to stay. It is in America’s best interest, both as an economic powerhouse and as a country that values ​​freedom, to embrace this reality. We should put fear aside; the SEC’s war on exchanges (and “Operation Choke Point 2.0”) should end. Our legislators should establish sensible ground rules. We should assert preeminence over the global crypto network, to the extent that anyone can.

Photo by Chris McGrath/Getty Images

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Cryptocurrency Price August 1: Bitcoin Dips Below $65K; Solana, XRP Down Up To 8%

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Major cryptocurrencies fell in Thursday trading following the Federal Reserve’s decision to keep its key interest rate unchanged. Overnight, the U.S. Federal Reserve kept its key interest rate at 5.25-5.5% for the eighth consecutive time, as expected, while also signaling the possibility of a rate cut at its next meeting in September. The unanimous decision by the Federal Open Market Committee reflects a continued wait-and-see approach as it monitors inflation trends.

CoinSwitch Markets Desk said: “Bitcoin has fallen below $65,000 after the US Federal Reserve announced it would keep interest rates unchanged. However, with markets now anticipating rate cuts at the next Federal Reserve meeting in September, the outlook for a Bitcoin rally by the end of the year has strengthened.”

Meanwhile, CoinDCX research team said: “The crypto market has plunged after the Fed decision. Tomorrow’s US unemployment rate announcement is expected to induce more volatility, with the ‘actual’ figure coming in higher than the ‘expected’ one, which is positive for cryptocurrencies.”

At 12:21 pm IST, Bitcoin (BTC) was down 3.2% at $64,285, while Ethereum was down nearly 4.5% at $3,313. Meanwhile, the global market cryptocurrency The market capitalization fell 3.6% to around $2.3 trillion in the last 24 hours.

“Bitcoin needs to clear its 200-day EMA at $64,510 to consolidate further. Otherwise, a retest of $62,000 could be in the cards,” said Vikram Subburaj, CEO of Giottus.

Altcoins and meme coins, such as BNB (3%), Solana (8%), XRP (5.7%), Dogecoin (5%), Cardano (4.6%), Avalanche (4.3%), Shiba Inu (3.8%), Polkadot (3.4%), and Chainlink (4%) also saw declines.

The volume of all stablecoins is now $71.64 billion, which is 92.19% of the total cryptocurrency market volume in 24 hours, according to data available on CoinMarketCap. Bitcoin’s dominance is currently 54.99%. BTC volume in the last 24 hours increased by 23.3% to $35.7 billion.

(Disclaimer: Recommendations, suggestions, opinions and views provided by experts are personal. They do not represent the views of the Economic Times)

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Altcoins WIF, BONK, RUNE, JUP Down 10% While Bitcoin Drops 4%

BlockChainBulletin Staff

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Altcoins WIF, BONK, RUNE and JUP drop 10% as Bitcoin recedes 4%

Altcoins dogwifhat, Bonk, THORChain, and Jupiter have suffered losses of more than 10%, while Bitcoin is down 4% in the last 24 hours.

After a period of relative calm yesterday, July 31, Bitcoin (BTC) price action has seen a drastic change as the cryptocurrency dropped by more than $3,500, bringing its value to $63,300. At the same time, altcoins mirrored this trend, with the total value of liquidated positions rising to nearly $225 million over the course of the day.

Initially, the week started on a positive note for Bitcoin, which reached its highest point since early June, hitting $70,000. However, this peak was short-lived, as it was quickly rejected, leading to a substantial decline, with Bitcoin falling below $65,500.

The cryptocurrency managed to regain some stability, trading comfortably at around $66,800. However, following a Press conference According to Federal Reserve Chairman Jerome Powell, the value of Bitcoin has fallen again to $64,300, down more than 3% in 24 hours.

BTC Price Chart 24 Hours | Source: crypto.news

The recession coincided with a relationship from the New York Times stating that Iran had called for retaliatory measures against Israel following the assassination of Hamas leader Ismail Haniyeh in Tehran, increasing the risk of further conflict in the region.

Meanwhile, on the economic front, the Federal Reserve decided to keep its benchmark interest rates in place, offering little information on a planned September rate cut. Powell also hinted that while no concrete decisions have been made on the September adjustment, there is growing consensus that a rate cut is likely.

Amid Bitcoin’s decline, altcoins have suffered even more significant losses. For example, dogwifhat (Wife) saw a 12.4% drop and (DISGUST) has suffered a 10% drop. Other altcoins such as THORChain (RUNE) also fell by 10%, while Jupiter (JUPITER) and the Ethereum naming service (ENS) decreased by 8% and 9% respectively.

Among the largest-cap cryptocurrencies, the biggest losers are Solana (SOL) with a decrease of 8%, (Exchange rate risk) down 6%, Cardano (ADA) down 4%, and both Ethereum (ETH) and Dogecoin (DOGE) recording a decrease of 4.4%.

Data from CoinGlass indicates that approximately 67,000 traders have been negatively impacted by this increased volatility. BTC positions have seen $61.85 million in liquidations, while ETH positions have faced $61 million. In total, the value of liquidated positions stands at $225.4 million at the time of writing.

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Riot Platforms Sees 52% Drop in Bitcoin Production in Q2

BlockChainBulletin Staff

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Riot Platforms posts 52% decrease in Bitcoin production for Q2

Bitcoin mining firm Riot Platforms has released its second-quarter financial results, highlighting a decline in cryptocurrency mined due to the recent halving.

Colorado-based Bitcoin (BTC) mining company Riot platforms revealed its second quarter financial results, highlighting a significant reduction in mined cryptocurrencies attributed to the recent halving event that took place in early April.

The company reported total revenue of $70 million for the quarter ended July 31, a decline of 8.7% compared to the same period in 2023. Riot Platforms attributed the revenue decline primarily to a $9.7 million decrease in engineering revenue, which was partially mitigated by a $6 million increase in Bitcoin extraction income.

During the quarter, the company mined 844 BTC, representing a decline of over 50% from Q2 2023, citing the halving event and increasing network difficulty as major factors behind the decline. Riot Platforms reported a net loss of $84.4 million, or $0.32 per share, missing Zacks Research forecast a loss of $0.16 per share.

Halving increases competitive pressure

The Colorado-based firm said the average cost of mining one BTC in the second quarter, including energy credits, rose to $25,327, a remarkable 341% increase from $5,734 per BTC in the same quarter of 2023. Despite this significant increase in production costs, the firm remains optimistic about maintaining competitiveness through recent deals.

For example, following the Recent acquisition Cryptocurrency firm Block Mining, Riot has increased its distributed hash rate forecast from 31 EH/s to 36 EH/s by the end of 2024, while also increasing its 2025 forecast from 40 EH/s to 56 EH/s.

Riot Platforms Hashrate Growth Projections by 2027 | Source: Riot Platforms

Commenting on the company’s financials, Riot CEO Jason Les said that despite the halving, the mining company still managed to achieve “significant operational growth and execution of our long-term strategy.”

“Despite this reduction in production available to all Bitcoin miners, Riot reported $70 million in revenue for the quarter and maintained strong gross margins in our core Bitcoin mining business.”

Jason Les

Following its Q2 financial report, Riot Platforms shares fell 1.74% to $10.19, according to Google Finance data. Meanwhile, the American miner continues to chase Canadian rival Bitfarms, recently acquiring an additional 10.2 million BITF shares, increasing its stake in Bitfarms to 15.9%.

As previously reported by crypto.news, Riot was the first announced a $950 million takeover bid for Bitfarms in late May, arguing that Bitfarms’ founders were not acting in the best interests of all shareholders. They said their proposal was rejected by Bitfarms’ board without substantive engagement.

In response, Bitfarms She said that Riot’s offer “significantly understates” its growth prospects. Bitfarms subsequently implemented a shareholder rights plan, also known as a “poison pill,” to protect its strategic review process from hostile takeover attempts.

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Aave Price Increases Following Whales Accumulation and V3.1 Launch

BlockChainBulletin Staff

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Aave price surges amid whale accumulation and V3.1 launch

Decentralized finance protocol Aave is seeing a significant spike in whale activity as the market looks to recover from the recent crash that pushed most altcoins into key support areas earlier this week.

July 31, Lookonchain shared details indicating that the whales had aggressively accumulated Aave (AAVE) over the past two days. According to the data, whales have withdrawn over 58,848 AAVE worth $6.47 million from exchanges during this period.

In one instance, whale address 0x9af4 withdrew 11,185 AAVE worth $1.23 million from Binance. Meanwhile, another address moved 21,619 AAVE worth over $2.38 million from the exchange and deposited the tokens into Aave.

These withdrawals follow a previous transfer of 26,044 AAVE from whale address 0xd7c5, amounting to over $2.83 million withdrawn from Binance.

AAVE price has surged over 7% in the past 24 hours amid buy-side pressure from these whales. The DeFi token is currently trading around $111 after jumping over 18% in the past week.

Recently, the price of AAVE increased by over 8% after Aave founder Marc Zeller announced a proposed fee change aimed at adopting a buyback program for AAVE tokens.

Aave v3.1 is available

The total value locked in the Aave protocol currently stands at around $22 billion. According to DeFiLlamaApproximately $19.9 billion is on Aave V3, while the V2 chain still holds approximately $1.9 billion in TVL and V1 approximately $14.6 million.

Aave Labs announced Previously, Aave V3.1 was made available on all networks with active Aave V3 instances.

V3.1 features improvements that are intended to improve the overall security of the DeFi protocol. The Aave DAO governance has approved the v3.1 improvements, which also include operational efficiency and usability for the network.

Meanwhile, Aave Labs recently outlined a ambitious roadmap for the projectwith a 2030 vision for Aave V4, among other developments.

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