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US Social Security moves public comms to X amid DOGE-led job cuts — Report
The US Social Security Administration (SSA) will move all public communications to the X social media platform amid sweeping workforce cuts recommended by the Department of Government Efficiency (DOGE), led by X owner Elon Musk. According to anonymous sources who spoke with WIRED, the government agency will no longer issue its customary letters and press releases to communicate changes to the public, instead relying on X as its primary form of public-facing communication. The shift comes as the SSA downsizes its workforce from 57,000 employees to roughly 50,000 to reduce costs and improve operational efficiency. The agency issued this statement in February 2025:“SSA has operated with a regional structure consisting of 10 offices, which is no longer sustainable. The agency will reduce the regional structure in all agency components down to four regions. The organizational structure at Headquarters also is outdated and inefficient.”Elon Musk, the head of DOGE, has accused the Social Security system of distributing billions of dollars in wrongful payments, a claim echoed by the White House. Musk's comments sparked intense debate about the future of the retirement program and sustainable government spending.Source: Elon MuskRelated: Musk says he found ‘magic money computers’ printing money ‘out of thin air’DOGE targets US government agencies in efficiency pushThe Department of Government Efficiency is an unofficial government agency tasked with identifying and curbing allegedly wasteful public spending through budget and personnel cuts.In March, DOGE began probing the Securities and Exchange Commission (SEC) and gained access to its internal systems, including data repositories.SEC officials signaled their cooperation with DOGE and said the regulatory agency would work closely with it to provide any relevant information requested.Musk and Trump discuss curbing public spending and eliminating government waste. Source: The White houseDOGE also proposed slashing the Internal Revenue Service's (IRS) workforce by 20%. The workforce reduction could impact up to 6,800 IRS employees and be implemented by May 15 — exactly one month after 2024 federal taxes are due.Musk’s and the DOGE's proposals for sweeping spending cuts are not limited to slashing budgets and reducing the size of the federal workforce.DOGE is reportedly exploring blockchain to curb public spending by placing the entire government budget onchain to promote accountability and transparency.Magazine: Elon Musk’s plan to run government on blockchain faces uphill battle
Published: 38 minutes ago
Trump exempts select tech products from tariffs, crypto to benefit?
United States President Donald Trump has exempted an array of tech products including, smartphones, chips, computers, and select electronics from tariffs, giving the tech industry a much-needed respite from trade pressures.According to the US Customs and Border Protection, storage cards, modems, diodes, semiconductors, and other electronics were also excluded from the ongoing trade tariffs."Large-cap technology companies will ultimately come out ahead when this is all said and done," The Kobeissi letter wrote in an April 12 X post.US Customs and Border Protection announces tariff exemptions on select tech products. Source: US Customs and Border ProtectionThe tariff relief will take the pressure off of tech stocks, which were one of the biggest casualties of the trade war. Crypto markets are correlated with tech stocks and could also rally as risk appetite increases on positive trade war headlines.Following news of the tariff exemptions, the price of Bitcoin (BTC) broke past $85,000 on April 12, a signal that crypto markets are already responding to the latest macroeconomic development.Related: Billionaire investor would ‘not be surprised’ if Trump postpones tariffsMarkets hinge on Trump's every word during macroeconomic uncertaintyPresident Trump walked back the sweeping tariff policies on April 9 by initiating a 90-day pause on the reciprocal tariffs and lowering tariff rates to 10% for countries that did not respond with counter-tariffs on US goods.Bitcoin surged by 9% and the S&P 500 surged by over 10% on the same day that Trump issued the tariff pause.Macroeconomic trader Raoul Pal said the tariff policies were a negotiation tool to establish a US-China trade deal and characterized the US administration's trade rhetoric as "posturing."Bitcoin advocate Max Keiser argued that exempting select tech products from import tariffs would not reduce bond yields or further the Trump administration's goal of lowering interest rates.Yield on the 10-year US government bond spikes following sweeping trade policies from the Trump administration. Source: TradingViewThe yield on the 10-year US Treasury Bond shot up to a local high of approximately 4.5% on April 11 as bond investors reacted to the macroeconomic uncertainty of a protracted trade war."The concession just given to China for tech exports won’t reverse the trend of rates going higher. Confidence in US bonds and the US Dollar has been eroding for years and won’t stop now," Keiser wrote on April 12.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
Published: 2 hours ago
Here’s what happened in crypto today
Today in crypto, former Binance CEO Changpeng Zhao denied reports that he agreed to testify against Justin Sun, calling them baseless and politically motivated, acting Chair of the US Securities and Exchange Commission, Mark Uyeda, proposed a temporary crypto framework in the US, and the Federal Reserve said it’s ready to use its monetary policy tools to support liquidity if necessary.CZ claps back against “baseless” US plea deal allegationsChangpeng “CZ” Zhao, former CEO of Binance, has denied claims that he agreed to provide evidence against Tron founder Justin Sun as part of a plea deal with the United States Department of Justice (DOJ).In an April 11 report, The Wall Street Journal cited unnamed sources alleging that CZ had agreed to testify against Sun under the terms of his settlement with US prosecutors.“As part of Zhao’s plea deal, he agreed to give evidence on Sun to prosecutors,” an “arrangement” that “hasn’t previously been reported,” the WSJ report stated, citing sources familiar with the matter.“WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn't,” Zhao wrote in an April 12 X post. “People who become gov witnesses don’t go to prison. They are protected. I heard someone paid WSJ employees to smear me.”Source: Changpeng ZhaoCZ was sentenced to four months in prison in April 2024 for Anti-Money Laundering (AML) violations. He walked free from federal prison on Sept. 27 as the wealthiest person to ever serve a US prison sentence, with a $60 billion net worth at the time.In a separate April 11 post, CZ claimed multiple individuals had warned him about the Journal’s intentions to publish what he described as a “hit piece.”US crypto industry needs band-aid now, “long-term solution” later — UyedaA fast-tracked temporary crypto regulatory framework could bolster innovation within the US crypto industry while permanent regulations are still in the works, says acting US Securities and Exchange Commission (SEC) chair Mark Uyeda.“A time-limited, conditional exemptive relief framework for registrants and non-registrants could allow for greater innovation with blockchain technology within the United States in the near term,” Uyeda said at the SEC’s April 11 Crypto Task Force roundtable titled “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading.”Uyeda said this might be the short-term answer as the SEC works toward a “long-term solution,” at the roundtable with SEC members and crypto industry executives, including Uniswap Labs’ Katherine Minarik, Cumberland DRW’s Chelsea Pizzola, and Coinbase’s Gregory Tusar.US Fed “absolutely” ready to step in if liquidity dries up — Voting memberThe US Federal Reserve is prepared to use its vast arsenal of monetary policy tools to prevent financial and economic conditions from deteriorating rapidly but will do so only if liquidity dries up or markets become disorderly, a top central banker said.In an interview with the Financial Times, Boston Fed President Susan Collins said the central bank “would absolutely be prepared” to backstop markets if needed.While it is generally understood that the Fed is always prepared to act quickly to stave off market chaos, Collins’ remarks come on the heels of asset selloffs across stocks and bonds, which have raised concerns about the health of the US financial system.Overall, however, the Fed is “not seeing liquidity concerns,” said Collins. If that were to change, policymakers would have “tools to address concerns about markets functioning or liquidity,” she said.The Fed’s Collins pictured in a December interview with Bloomberg. Source: Bloomberg TelevisionFor investors, Collins’ comments may carry extra weight because she’s a voting member of this year’s Federal Open Market Committee (FOMC) — the 12-person panel responsible for setting interest rates.While Collins and her fellow FOMC members voted to keep interest rates steady at their March meeting, the biggest takeaway was the central bank’s easing off on quantitative tightening by reducing the redemption cap on Treasurys by 80%.
Published: 5 hours ago
CZ claps back against ‘baseless’ US plea deal allegations
Changpeng “CZ” Zhao, former CEO of Binance, has denied claims that he agreed to provide evidence against Tron founder Justin Sun as part of a plea deal with the United States Department of Justice (DOJ).In an April 11 report, The Wall Street Journal cited unnamed sources alleging that CZ had agreed to testify against Sun under the terms of his settlement with US prosecutors.“As part of Zhao’s plea deal, he agreed to give evidence on Sun to prosecutors,” an “arrangement” that “hasn’t previously been reported,” the WSJ report stated, citing sources familiar with the matter.“WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn't,” Zhao wrote in an April 12 X post. “People who become gov witnesses don’t go to prison. They are protected. I heard someone paid WSJ employees to smear me.”Source: Changpeng ZhaoCZ was sentenced to four months in prison in April 2024 for Anti-Money Laundering (AML) violations. He walked free from federal prison on Sept. 27 as the wealthiest person to ever serve a US prison sentence, with a $60 billion net worth at the time.In a separate April 11 post, CZ claimed multiple individuals had warned him about the Journal’s intentions to publish what he described as a “hit piece.”Source: Justin SunSun said he was “not aware of the circulation rumors,” calling CZ his “mentor and close friend,” Cointelegraph reported on April 11.Related: Trump kills DeFi broker rule in major crypto win: Finance Redefined“Some players are lobbying against us again in the US” — CZCZ further speculated that the report could be linked to lobbying efforts against him and his former company. “I also heard some rumors about some players ‘lobbying’ against us again in the US,” CZ said.Cointelegraph has approached CZ for more details on the lobbying claims.In November 2023, Zhao said that “FTX sought regulatory ‘crack down’ on Binance to increase market share,” citing a Federal Newswire report.Related: New York bill proposes legalizing Bitcoin, crypto for state paymentsZhao’s comments come over a month after crypto donations raised influence concerns among industry participants.Crypto firms spent over $134 million on the 2024 US elections in “unchecked political spending,” which presents some critical challenges, Cointelegraph reported on March 10.Fairshake donations. Source: politicalaccountability.net“While the companies making these contributions may be seeking a favorable regulatory environment, these political donations further erode public trust and expose companies to legal, reputational, and business risks that cannot be ignored,” according to a March 7 report by the Center for Political Accountability (CPA).Magazine: XRP win leaves Ripple and industry with no crypto legal precedent set
Published: 5 hours ago
Bitcoin still on track for $1.8M in 2035, says analyst
Bitcoin remains on track to surpass $1.8 million by 2035 despite recent price corrections and waning investor appetite caused by ongoing global trade tensions, according to Joe Burnett, director of market research at Unchained.Speaking during Cointelegraph’s Chainreaction live show on X, Burnett said that Bitcoin is still in a long-term bullish cycle and could potentially rival or surpass gold’s $21 trillion market capitalization within the next decade.Despite tariff uncertainty limiting risk appetite among investors, research analysts remain optimistic about Bitcoin’s (BTC) long-term prospects for the next decade.“When I think about where Bitcoin will be in 10 years, there are two models I admire,” Burnett said. “One is the parallel model, which suggests that Bitcoin will be about $1.8 million in 2035.” “The other is Michael Saylor’s Bitcoin 24 model, which suggests Bitcoin will be $2.1 million by 2035.” Burnett emphasized that both are “good base cases,” adding that Bitcoin’s trajectory could exceed these predictions depending on broader macroeconomic factors.🎙Could Bitcoin really hit $10m by Q1 2035? Perhaps.But first, we need to unravel the tangled web of the markets this week, and for both discussions, @rkbaggs and @gazza_jenks are joined today by Joe Burnett (@IIICapital) on the #CHAINREACTION show! https://t.co/hfyEwGUCsh— Cointelegraph (@Cointelegraph) April 11, 2025Related: Bitcoin price can hit $250K in 2025 if Fed shifts to QE: Arthur HayesBitcoin outlook remains long-term bullish“The automobile industry is significantly more valuable than the horse and buggy industry,” Burnett said, adding that Bitcoin’s more advanced technological properties will make it surpass the $21 trillion market capitalization of gold. He added:“The gold market is an estimated $21 trillion market. If Bitcoin just hit $21 trillion and had Bitcoin-gold parity, Bitcoin would be $1 million per coin today.”Since US President Donald Trump’s Jan. 20 inauguration, global markets have been under pressure due to heightened trade war fears. Hours after taking office, Trump threatened to impose sweeping import tariffs aimed at reducing the country’s trade deficit, weighing on risk sentiment across both equities and crypto.While Bitcoin’s role as a safe-haven asset may reemerge amid ongoing trade war concerns, physical gold and tokenized gold remain the current winners.Top tokenized gold assets, trading volume. Source: CoinGecko, Cex.ioTariff fears led tokenized gold trading volume to surge to a two-year high this week, topping $1 billion for the first time since the US banking crisis in 2023, Cointelegraph reported on April 10.Related: Bitcoin’s 24/7 liquidity: Double-edged sword during global market turmoilStrong hands hold during drawdownsBitcoin’s volatility is falling during both bear and bull markets, signaling its growing maturity as an asset class.While another 80% drawdown during future bear markets is still possible, this will act as a robust acquisition period for the “strongest” holders, Burnett said, adding:“The highs bring [Bitcoin] attention, and the deep, dark bear markets move coins into the hands of the strongest, most convicted holders, as fast as possible.”Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom, predicted Bitcoin could climb to $250,000 by the end of 2025 if the US Federal Reserve formally enters a quantitative easing cycle.Despite the optimistic predictions, investors remain cautious and continue “rebalancing their portfolios” but are unlikely to take on significant positions in the next 90 days before markets gain more clarity on global tariff negotiations, Enmanuel Cardozo, market analyst at real-world asset tokenization platform Brickken, told Cointelegraph.“With money flowing out of Bitcoin ETFs, investors are looking for safer spots to hold their cash right now, including strong currencies. Gold’s a traditional vehicle in these cases and a go-to when markets are uncertain,” he added.BTC, gold, year-to-date chart. Source: Cointelegraph/TradingViewSince the beginning of 2025, the price of gold has risen over 23%, outperforming Bitcoin, which has fallen by more than 10% year-to-date, TradingView data shows.Magazine: Bitcoin’s odds of June highs, SOL’s $485M outflows, and more: Hodler’s Digest, March 2 – 8
Published: 8 hours ago
SEC and Binance push for another pause in lawsuit after ‘productive’ talks
The US Securities and Exchange Commission (SEC) and crypto exchange Binance have asked a US federal judge for an additional two-month pause in their nearly two-year legal battle.“Since the Court stayed this case, the Parties have been in productive discussions, including discussions concerning how the efforts of the crypto task force may impact the SEC’s claims,” both parties said in an April 11 joint status report with the US District Court for the District of Columbia.SEC requests Binance to agree to the extensionAccording to the filing, the SEC requested and Binance agreed to another 60-day extension as the regulator continues to seek permission to “approve any resolution or changes to the scope of this litigation.” “The Defendants agreed that continuing the stay is appropriate and in the interest of judicial economy,” the filing said.The request comes not long after the SEC dropped a string of crypto-related lawsuits against crypto exchanges Coinbase, Kraken, and Gemini, as well as Robinhood and Consenys.At the end of the 60-day period, the SEC and Binance plan to submit another joint status report. This marks the second 60-day pause the SEC and Binance have requested this year, following a previous extension granted by the judge on Feb. 11.The recently launched crypto task force was a key reason behind the request for the second extension. Source: CourtListenerThe request in February came just days after crypto skeptic Gary Gensler stepped down as SEC chair on Jan. 20, with crypto-friendly SEC commissioner Mark Uyeda taking over as acting chair.At the time, the SEC and Binance also cited the establishment of the SEC’s Crypto Task Force as a reason for the pause.Related: Crypto Biz: Ripple’s ‘defining moment,’ Binance’s ongoing purgeFormed just a day after Gensler resigned on Jan. 21, the task force said it aims to “help the Commission draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously.” The SEC’s legal battle with Binance has dragged on for almost two years. It began in June 2023 when the agency filed a lawsuit against Binance, its US platform, and CEO Changpeng “CZ” Zhao.The US regulator pressed 13 charges against Binance, including unregistered offers and sales of the BNB and Binance USD tokens, the Simple Earn and BNB Vault products, and its staking program.Magazine: Memecoin degeneracy is funding groundbreaking anti-aging research
Published: 11 hours ago
US crypto industry needs band-aid now, ‘long-term solution’ later — Uyeda
A fast-tracked temporary crypto regulatory framework could bolster innovation within the US crypto industry while permanent regulations are still in the works, says acting US Securities and Exchange Commission (SEC) Chair Mark Uyeda.“A time-limited, conditional exemptive relief framework for registrants and non-registrants could allow for greater innovation with blockchain technology within the United States in the near term,” Uyeda said at the SEC’s April 11 Crypto Task Force roundtable titled “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading.”Relief measures may address immediate challengesUyeda said this might be the short-term answer as the SEC works toward a “long-term solution” at the roundtable with SEC members and crypto industry executives, including Uniswap Labs’ Katherine Minarik, Cumberland DRW’s Chelsea Pizzola and Coinbase’s Gregory Tusar.He flagged state-by-state regulation of crypto trading as a concern, warning it could lead to a “patchwork of state licensing regimes.” Uyeda said that a favorable federal regulatory framework would ease the burden for market participants wishing to offer tokenized securities and non-security crypto assets, allowing them to operate under a single SEC license instead of navigating “fifty different state licenses.”He urged crypto market participants to share feedback on areas where “exemptive relief” could be appropriate.Source: US Securities and Exchange CommissionUyeda also reiterated the benefits of blockchain technology in financial markets during the roundtable discussion. “Blockchain technology offers the potential to execute and clear securities transactions in ways that may be more efficient and reliable than current processes,” Uyeda said.Uyeda to fill chair position until Atkins is sworn in“Blockchains can be used to manage and mobilize collateral in tokenized form to increase capital efficiency and liquidity,” he added.Uyeda will continue serving as acting SEC chair until US President Donald Trump’s nominee, Paul Atkins, is officially sworn in.On April 10, the US Senate confirmed Atkins as chair of the SEC in a 52-44 vote largely along party lines. Related: SEC, Ripple file joint motion to pause appeals in XRP caseUyeda has served as acting SEC chair since Jan. 20, succeeding former chair and crypto skeptic Gary Gensler. He’s been widely seen within the industry as a pro-crypto advocate.On March 18, Cointelegraph reported that Uyea said the SEC could change or scrap a rule proposed under the Biden administration that would tighten crypto custody standards for investment advisers.“I have asked the SEC staff to work closely with the crypto task force to consider appropriate alternatives, including its withdrawal,” Uyeda said.Magazine: Memecoin degeneracy is funding groundbreaking anti-aging research
Published: 17 hours ago
Trump kills DeFi broker rule in major crypto win: Finance Redefined
Trump kills DeFi broker rule in major crypto win: Finance Redefined, April 4–11In a significant win for decentralized finance (DeFi) protocols, US President Donald Trump overturned the Internal Revenue Service’s DeFi broker rule, which would have expanded existing reporting requirements to include DeFi platforms.Increasing US crypto regulatory clarity will attract more tech giants to the space, requiring existing crypto projects to focus on more collaborative tokenomics to survive, according to Cardano founder Charles Hoskinson.Trump signs resolution killing IRS DeFi broker ruleTrump signed a joint congressional resolution overturning a Biden administration-era rule that would have required DeFi protocols to report transactions to the Internal Revenue Service.Set to take effect in 2027, the IRS DeFi broker rule would have expanded the tax authority’s existing reporting requirements to include DeFi platforms, requiring them to disclose gross proceeds from crypto sales, including information regarding taxpayers involved in the transactions.Trump formally killed the measure by signing off on the resolution on April 10, marking the first time a crypto bill has been signed into US law, Representative Mike Carey, who backed the bill, said in a statement.“The DeFi Broker Rule needlessly hindered American innovation, infringed on the privacy of everyday Americans, and was set to overwhelm the IRS with an overflow of new filings that it doesn’t have the infrastructure to handle during tax season,” he said.Continue readingCrypto needs collaborative tokenomics against tech giants — HoskinsonThe next generation of cryptocurrency projects must embrace a more collaborative approach to compete with major centralized tech companies entering the Web3 space, according to Cardano founder Charles Hoskinson.Speaking at Paris Blockchain Week 2025, Hoskinson said one of the main criticisms of the crypto and DeFi space is its “circular economy,” which often means that the rally of a specific cryptocurrency is bolstered by funds exiting another token, limiting the growth of the whole industry.Hoskinsin said that to have a chance against the centralized technology giants joining the Web3 industry, cryptocurrency projects need more collaborative tokenomics and market structure.Hoskinson on stage at Paris Blockchain Week. Source: Cointelegraph“The problem right now, with the way we’ve done things in the cryptocurrency space, is the tokenomics and the market structure are intrinsically adversarial. It’s sum 0,” said Hoskinson. “Instead of picking a fight, what you have to do is you have to find tokenomics and market structure that allows you to be in a cooperative equilibrium.”He argued that the current environment often sees one crypto project’s growth come at the expense of another rather than contributing to the sector’s overall health. He added that this is not sustainable in the face of trillion-dollar firms like Apple, Google and Microsoft, which may soon join the Web3 race amid clearer US regulations.Continue readingBitcoin’s 24/7 liquidity: Double-edged sword during global market turmoilBitcoin and other cryptocurrencies are often praised for offering around-the-clock trading access, but that constant availability may have contributed to a steep sell-off over the weekend following the latest US trade tariff announcement.Unlike stocks and traditional financial instruments, Bitcoin (BTC) and other cryptocurrencies enable payments and trading opportunities 24/7 thanks to the accessibility of blockchain technology.After a record-breaking $5 trillion was wiped from the S&P 500 over two days — the worst drop on record — Bitcoin remained above the $82,000 support level. But by Sunday, the asset had plummeted to under $75,000.Sunday’s correction may have occurred due to Bitcoin being the only large tradable asset over the weekend, according to Lucas Outumuro, head of research at crypto intelligence platform IntoTheBlock. “There was a bit of optimism last week that Bitcoin might be uncorrelating and fairing better than traditional stocks, but the [correction] did accelerate over the weekend,” Outumuro said during Cointelegraph’s Chainreaction live show on X, adding:“There’s very little people can sell on a Sunday because most markets are closed. That also enables the correlation because people are panicking and Bitcoin is the largest asset they can sell over the weekend.”Outumuro noted that Bitcoin’s weekend trading can also have upside effects, as prices often rally in calmer conditions.Continue readingBybit recovers market share to 7% after $1.4 billion hackBybit’s market share rebounded to pre-hack levels following a $1.4 billion exploit in February, as the crypto exchange implemented tighter security and improved liquidity options for retail traders.The crypto industry was rocked by the largest hack in its history on Feb. 21, when Bybit lost over $1.4 billion in liquid-staked Ether (stETH), Mantle Staked ETH (mETH) and other digital assets.Despite the scale of the exploit, Bybit has steadily regained market share, according to an April 9 report by crypto analytics firm Block Scholes.“Since this initial decline, Bybit has steadily regained market share as it works to repair sentiment and as volumes return to the exchange,” the report stated.Block Scholes said Bybit’s proportional share rose from a post-hack low of 4% to about 7%, reflecting a strong and stable recovery in spot market activity and trading volumes.Bybit’s spot volume market share as a proportion of the market share of the top 20 CEXs. Source: Block ScholesThe hack occurred amid a “broader trend of macro de-risking that began prior to the event,” which signaled that Bybit’s initial decline in trading volume was not solely due to the exploit.Continue readingNearly 400,000 FTX users risk losing $2.5 billion in repaymentsAlmost 400,000 creditors of the bankrupt cryptocurrency exchange FTX risk missing out on $2.5 billion in repayments after failing to begin the mandatory Know Your Customer (KYC) verification process.About 392,000 FTX creditors have failed to complete or at least take the first steps of the mandatory Know Your Customer verification, according to an April 2 court filing in the US Bankruptcy Court for the District of Delaware.FTX users originally had until March 3 to begin the verification process to collect their claims.“If a holder of a claim listed on Schedule 1 attached thereto did not commence the KYC submission process with respect to such claim on or prior to March 3, 2025, at 4:00 pm (ET) (the “KYC Commencing Deadline”), 2 such claim shall be disallowed and expunged in its entirety,” the filing states.FTX court filing. Source: Bloomberglaw.comThe KYC deadline has since been extended to June 1, giving users another chance to verify their identity and claim eligibility. Those who fail to meet the new deadline may have their claims permanently disqualified.According to the court documents, claims under $50,000 may account for about $655 million in disallowed repayments, while claims over $50,000 could amount to $1.9 billion, bringing the total at-risk funds to more than $2.5 billion.Continue readingDeFi market overviewAccording to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the red.The EOS (EOS) token fell over 23%, marking the week’s biggest decline in the top 100, followed by the Near Protocol (NEAR) token, down over 19% on the weekly chart.Total value locked in DeFi. Source: DefiLlamaThanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.
Published: 1 day ago
Pakistan proposes compliance-based crypto regulatory framework — Report
Regulators in Pakistan have proposed a regulatory framework for digital assets that is compliance-focused, in accordance with rules laid out by the Financial Action Task Force (FATF), the supranational organization that polices finance for money laundering, The Express Tribune reported.According to the report, Pakistan's Federal Investigation Agency (FIA) introduced the regulatory framework to address terrorism financing, money laundering provisions, and Know Your Customer (KYC) controls enforced by the supranational organization. The report cited FIA Director Sumera Azam as saying:"This is a paradigm shift in how Pakistan views digital finance. The policy proposal seeks to strike a historic balance between technological advancement and national security imperatives.”The proposed framework is subject to legislative approval and input from digital asset firms operating in the country, with an expected multi-phased rollout beginning in 2026.Regulators in Pakistan recently spearheaded a regulatory pivot embracing cryptocurrencies after being explicitly anti-crypto for years. The government's anti-crypto stance hit a crescendo in 2023 when Pakistani officials called for a country-wide ban on digital assets.Appointments to the Pakistan Crypto Council. Source: Bilal Bin-Saqib. Source: Bilal Bin-SaqibRelated: Pakistan eyes crypto legal framework to boost foreign investmentPakistan embraces the future of money in regulatory shiftIn May 2023, former minister of state for finance and revenue, Aisha Ghaus Pasha said that Pakistan would never legalize cryptocurrencies due to the potential for digital assets to circumvent FATF regulations.Less than two years later in February 2025 the Finance Ministry of Pakistan signaled a seismic regulatory shift by forming the Pakistan Crypto Council to establish clear crypto regulations in the country and attract foreign investment."Pakistan is a low-cost, high-growth market, with 60% of the population under 30. We have a web3 native workforce ready to build," CEO of the Pakistan Crypto Council Bilal bin Saqib said in a March 20 X post.Binance co-founder Changpeng Zhao meets with Pakistan foreign minister Ishaq Dar. Source: Pakistan’s Ministry of Foreign AffairsThe Council is exploring using excess energy to mine Bitcoin (BTC) as part of a broader effort to turn Pakistan into an international hub for crypto mining.On April 7, the Council appointed Binance co-founder Changpeng Zhao as a crypto adviser to guide the organization's policy efforts.Magazine: How crypto laws are changing across the world in 2025
Published: 1 day ago
Speculation is DeFi’s double-edged sword
Opinion by: Billy Campana, contract developer, Api3 Speculation is a cornerstone of price discovery for traditional finance institutions like hedge funds and major banks and plays an essential role in their day-to-day operations. It is the mechanism by which they can establish reliable valuations for everything, ranging from simple stocks and bonds to complex derivatives and structured products. While decentralized finance (DeFi) is often criticized for its speculative “casino” nature, this is, in reality, one of its strengths: making practices like arbitrage more accessible to everyone and empowering individuals to participate in opportunities once out of reachDeFi’s volatilityCritics have highlighted DeFi’s extreme volatility, a concern exemplified by Ether’s (ETH) recent 15% price drop that triggered over $100 million in long position liquidations. These dramatic market movements continually test market resilience and investor confidence in the ecosystem. The accusations that DeFi platforms function essentially as gambling venues persist throughout the industry. Such criticisms have gained further traction following several high-profile memecoin crashes that collectively erased over $46 billion in market value, revealing the systemic vulnerabilities that speculative activities can introduce to the broader ecosystem.Additionally, the recent Bybit hack spotlighted the major security concerns, exposing critical vulnerabilities within DeFi infrastructure and triggering intense scrutiny of the sector’s security protocols. These systemic risks have only escalated institutional skepticism, resulting in increasingly vocal calls for greater transparency and comprehensive regulatory oversight. Simultaneously, the media narrative surrounding DeFi remains overwhelmingly focused on its spectacular failures, growing institutional skepticism and persistent market instability. This one-sided portrayal continues challenging DeFi’s credibility as a serious financial ecosystem capable of responsible innovation.Evening the playing fieldCritics consistently miss that DeFi democratizes the same speculative mechanisms that traditional finance has always employed for price discovery. The fundamental difference is that Wall Street gatekeepers no longer control who benefits from these opportunities. While traditional finance has historically restricted arbitrage opportunities to institutional players with privileged access, DeFi effectively removes these gatekeepers, allowing anyone with an internet connection to participate in the price discovery process that hedge funds and banks have monopolized for decades.Smart contracts have revolutionized financial operations that once required privileged access and teams of highly paid professionals. Smart contracts effectively break down the artificial barriers that have systematically kept ordinary people out of sophisticated markets. Recent: Bitwise makes first institutional DeFi allocationLeading financial institutions increasingly recognize this paradigm shift, with established businesses progressively adopting DeFi mechanisms to automate transactions and enhance operational efficiency. Institutional adoption validates speculation as a legitimate financial practice rather than dismissing it as mere gambling.An arbitrage utopiaThis unprecedented democratization manifests concretely in decentralized lending platforms that enable automated market makers (AMMs), enabling anyone to provide liquidity and earn fees previously reserved exclusively for institutional market makers with significant capital reserves. With unprecedented data transparency across blockchain networks, even uncollateralized crypto loans can enable capital-efficient arbitrage opportunities spanning multiple blockchain ecosystems without requiring the millions in upfront collateral that traditional finance demands from participants. As institutional involvement continues to grow and regulatory frameworks gradually mature, these speculative mechanisms steadily evolve toward the same legitimacy traditional finance instruments enjoy. This evolution reveals that speculation itself was never the problem — the exclusionary access to its benefits was. The practical execution of this democratized speculation includes cross-exchange arbitrage through DeFi aggregators, crosschain bridges that naturally equalize asset prices across different blockchains and automated liquidation mechanisms that maintain system solvency. All these components serve the same fundamental purpose as traditional financial instruments but with radically expanded access for participants worldwide.As institutional investors and traditional financial markets return their gaze to the industry, with increased involvement from regulatory bodies and political figures in the US, DeFi must remember its core value proposition. The actual value of DeFi is not in recreating the current structures that allow the powerful to benefit from methods that regular people don’t have access to but in making these opaque systems transparent and open to everyone.Rather than apologizing for speculation, the industry should embrace and refine it as its revolutionary tool — one that brings financial opportunities to billions systematically excluded from traditional markets. Innovation in DeFi isn’t just technological; it is also social, creating a financial system where opportunity isn’t determined by privilege but by insight, creativity and willingness to participate. The future belongs not to those who can eliminate speculation but to those who can make it fair, transparent and accessible to all.Opinion by: Billy Campana, contract developer, Api3This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Published: 1 day ago
Memecoins, markets and Trump: Cointelegraph’s Q1 crypto editorial roundtable
The year 2025 kicked off with a bang and a meme. Just weeks into the New Year, a frenzy of politically fueled memecoins sent Crypto Twitter into overdrive, while lawmakers on both sides of the Atlantic turned up the heat on stablecoins, securities laws and tokenized assets, usually with different approaches.It was a whirlwind first quarter, shaped by Bitcoin’s dominance in the crypto market and a US political climate that put digital assets back in the spotlight. Q1 delivered no shortage of storylines.Who better to break it all down than the journalists tracking it in real time? In the latest episode of Decentralize with Cointelegraph, editorial team members sit down for an unfiltered newsroom roundtable.Savannah Fortis, head of podcasts and EU reporter, is joined by Gareth Jenkinson, chief of multimedia; Zoltan Vardai, breaking news reporter on the EU news team; and Vince Quill, US news reporter, to reflect on Q1’s biggest stories and what they signal for the months ahead.Memecoins, power and perceptionAs memecoins surged in early 2025, questions regarding their legitimacy and political entanglement intensified. For Cointelegraph’s editorial team, the frenzy wasn’t just a market quirk, it revealed deep tensions among innovation, opportunism and influence.Jenkinson was first to comment on what the impact of US President Donald Trump and greater political memecoin frenzies may mean for the industry in the long term, saying, “I struggle to still trust what the Trump administration and his group of advisers are doing, when they are launching things like memecoins...”“Yes, we’ve seen a much more favorable approach to the wider crypto industry, and that’s been really great. But a lot of the lobbying, from Ripple, Circle and others, was about making sure their cryptocurrencies were included in this bundle of assets the US wants to hold.”Related: Bitcoin may hit a wall at $84K if bullish conditions don’t pick up: CryptoQuantThe team acknowledged that while regulatory clarity and institutional support have created a more stable environment for crypto companies in general since the new administration took office, that progress risks being overshadowed by spectacle.More memes…Trump’s big moves seem to domino into other political figures, namely Argentina’s President Javier Milei, to become entangled in a high-profile memecoin controversy that rippled far beyond national politics.For an industry seeking legitimacy, this kind of involvement by world leaders sends a mixed message. “It’s terrible for the industry,” Jenkinson added. “Milei was supposed to be a savior for Argentina after years of hyperinflation. And now he’s launching a memecoin with a known rug puller.”Still, the roundtable remained hopeful. “I’m an eternal optimist,” he continued. “At least we got the affirmation for Bitcoin. People now understand what it is, governments are starting to hold it. That’s how good the fundamentals are.”Stablecoins and the altcoin falloutWhile much attention has centered on Bitcoin’s institutional glow-up and the memecoin spectacle, several members of the Cointelegraph team voiced deeper concerns around emerging stablecoin legislation and the quiet moves behind it.“One thing that I think kind of flew under the radar is that the Trump-linked World Liberty Forum actually launched a US dollar-backed stablecoin in March,” Vardai pointed out. “These stablecoins would fall completely in line with both requirements in the Genius Act and Stable Act... but it could really be interpreted as Trump trying to pass stablecoin legislation while having a vested interest. His World Liberty Financial is launching a lot of crypto-related products.”The fallout from politically aligned memecoins has also weighed heavily on the broader crypto markets, particularly altcoins. “Altcoins aren’t really winning at all this quarter,” Vardai also noted.“Memecoins have had this premature rally, and they’ve been rallying independently from other cryptocurrencies. A lot of people are concerned whether Bitcoin’s rise is going to come before Ether’s, and before any altcoin rise.”So what defined Q1 of 2025? Tune in to the full episode to hear all of the insights! Listen to the full episode of Decentralize with Cointelegraph on Cointelegraph’s podcast page, Spotify, Apple Podcasts or your podcast platform of choice. And don’t forget to check out Cointelegraph’s full lineup of other shows!Magazine: Memecoin degeneracy is funding groundbreaking anti-aging research
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New York bill proposes legalizing Bitcoin, crypto for state payments
A New York lawmaker has introduced legislation that would allow state agencies to accept cryptocurrency payments, signaling growing political momentum for digital asset integration in public services.Assembly Bill A7788, introduced by Assemblyman Clyde Vanel, seeks to amend state financial law to allow New York state agencies to accept cryptocurrencies as a form of payment.It would permit state agencies to accept payments in Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH), according to the bill’s text.Source: Nysenate.govAccording to the bill, state offices could authorize crypto payments for “fines, civil penalties, rent, rates, taxes, fees, charges, revenue, financial obligations or other amounts,” as well as penalties, special assessments and interest.Related: Trump’s tariff escalation exposes ‘deeper fractures’ in global financial systemCryptocurrency legislation is becoming a focal point in New York, with Bill A7788 marking the state’s second crypto-focused legislation in a little over a month.In March, New York introduced Bill A06515, aiming to establish criminal penalties to prevent cryptocurrency fraud and protect investors from rug pulls.Crypto-focused legislation has gathered momentum since President Donald Trump took office on Jan. 20, with Trump signaling during his campaign that his administration intends to make crypto policy a national priority, as well as making the US a global hub for blockchain innovation.Related: Illinois Senate passes crypto bill to fight fraud and rug pullsNew York may mandate state “service fee” on crypto paymentsIf passed, the bill would mark a significant shift in how New York handles digital assets. It would allow state entities to integrate cryptocurrency into the payment infrastructure used for collecting public funds.The proposal also includes a clause allowing the state to impose a service fee on those choosing to pay with crypto. According to the text, the state may require “a service fee not exceeding costs incurred by the state in connection with the cryptocurrency payment transaction.” This could include transaction costs or fees owed to crypto issuers.Assembly Bill A7788 has been referred to the Assembly Committee for review and may advance to the state Senate as the next step.New York’s legislation comes shortly after the state of Illinois passed a crypto bill to fight fraud and rug pulls after the recent wave of insider schemes related to memecoins, Cointelegraph reported on April 11.Magazine: XRP win leaves Ripple and industry with no crypto legal precedent set
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Swedish MP proposes Bitcoin reserve to finance minister
A member of Sweden’s parliament proposed adding Bitcoin to the country’s foreign exchange reserves, suggesting increased openness to cryptocurrency adoption in Europe following recent moves by the United States.Swedish MP Rickard Nordin issued an open letter urging Finance Minister Elisabeth Svantesson to consider adopting Bitcoin (BTC) as a national reserve asset.“Sweden has a tradition of a conservative and carefully managed foreign exchange reserve, mainly consisting of foreign currencies and gold,” Nordin wrote in a letter registered on April 8, adding:“At the same time, there is a rapid development in digital assets, and several international players regard bitcoin as a custodian and a hedge against inflation. In many parts of the world, bitcoin is used as a means of payment and as security against rising inflation.”“It is also an important way for freedom fighters to handle payments when under the oppression of authoritarian regimes,” he added.Open letter from MP Rickard Nordin. Source: Riksdagen.seRelated: US Bitcoin reserve marks’ real step’ toward global financial integrationThe Swedish proposal echoes a recent move by the United States. In March, President Donald Trump signed an executive order to create a national Bitcoin reserve funded by cryptocurrency seized in criminal investigations rather than purchased through market channels.The order authorized the Treasury and Commerce secretaries to develop “budget-neutral strategies” to buy more Bitcoin for the reserve, provided there were no additional costs to taxpayers.The governor of the Czech National Bank has also considered Bitcoin as part of a potential diversification strategy for the country’s foreign reserves, Cointelegraph reported on Jan. 7.Related: Bitcoin reserve backlash signals unrealistic industry expectationsEuropean lawmakers silent on Bitcoin legislation amid CBDC pushEuropean lawmakers have remained mostly silent on Bitcoin legislation despite Trump’s historic executive order and Bitcoin’s economic model favoring the early adopters.The lack of Bitcoin-related statements may stem from Europe’s focus on the launch of the digital euro, a central bank digital currency (CBDC), James Wo, the founder and CEO of venture capital firm DFG, told Cointelegraph, adding:“This highlights the EU’s greater emphasis on the digital euro, though the recent outage in the ECB’s Target 2 (T2) payment system, which caused significant transaction delays, raised concerns about its ability to oversee a digital currency when it struggles with daily operations.”ECB President Christine Lagarde is pushing ahead with the digital euro’s rollout, expected in October. Lagarde has emphasized that the CBDC will coexist with cash and offer privacy protections to address concerns about government overreach.“The European Union is looking to launch the digital euro, our central bank digital currency, by October this year,” Lagarde said during a news conference, adding:“We are working to ensure that the digital euro coexists with cash, addressing privacy concerns by making it pseudonymous and cash-like in nature.”Source: CointelegraphThis is in stark contrast to the approach of the US, where Trump has taken a firm stance against CBDCs, prohibiting “the establishment, issuance, circulation, and use” of a US dollar-based CBDC.Magazine: SCB tips $500K BTC, SEC delays Ether ETF options, and more: Hodler’s Digest, Feb. 23 –March. 1
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SEC, Ripple file joint motion to pause appeals in XRP case
The US Securities and Exchange Commission and blockchain payments firm Ripple agreed to pause their appeals in the ongoing XRP legal battle, signaling a potential move toward a final settlement.The SEC and Ripple agreed to put their appeals in “abeyance,” meaning the proceedings are now paused pending an anticipated settlement of the XRP (XRP) case.“An abeyance would conserve judicial and party resources while the parties continue to pursue a negotiated resolution of this matter,” the parties jointly stated in an April 10 court filing.Ripple CEO Brad Garlinghouse previously announced the end of the XRP case on March 19, and the new filing hints that the SEC is ready to settle once nominated and approved Chair Paul Atkins takes office, according to some community speculation.The filing cancels Ripple’s April 16 brief deadlineAccording to Ripple’s defense attorney, James Filan, the new filing supersedes the April 16 deadline for Ripple to respond to the SEC’s brief filed in January. “The settlement is awaiting commission approval. No brief will be filed on April 16,” Filan wrote in an April 10 X post.Some legal observers suggested the SEC’s willingness to pause the proceedings indicates that the agency may be prepared to drop the case after Atkins assumes office.Source: James Filan“SEC is ready to settle but is waiting for Atkins to take the helm as the new SEC chief so he can start off with dropping the biggest case of their career and start with a huge win,” one user suggested in a reply to Filan’s thread on X.When is Atkins expected to officially assume office?While the Senate confirmed Atkins as the new SEC chair on Wednesday, April 9, it’s unclear when he will take office.Related: Ripple acquisition of Hidden Road a ‘defining moment’ for XRPL — Ripple CTOIt could be several days before Atkins is sworn into office as the new SEC chair.Former SEC Chair Gary Gensler was sworn in three days after his confirmation in 2021, suggesting Atkins could take office as soon as April 12.A spokesperson for the SEC declined to comment to Cointelegraph on when Atkins is expected to be sworn in as the new SEC chair.Magazine: XRP win leaves Ripple and industry with no crypto legal precedent set
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Grayscale and Osprey end 2-year legal fight over Bitcoin ETF promotion
Asset managers Osprey Funds and Grayscale Investments agreed to settle a lawsuit over alleged violations of Connecticut law in the advertising and promotion of Grayscale’s Bitcoin exchange-traded fund (ETF). According to an April 9 court filing, the parties agreed to settle the two-year-old case and are finalizing documentation and settlement terms. The filing noted that once those steps are completed, Osprey will withdraw its appeal.“Soon after this appeal was filed, the parties reached a settlement of this case,” the motion stated. “It is expected that all these tasks can be done within 45 days, and it is uncertain whether a shorter extension would suffice.”Details of the settlement have not been made public. Grayscale and Osprey reach settlementThe legal battle between the two firms started on Jan. 30, 2023, when Osprey filed a suit in the Connecticut Superior Court. Osprey claimed it was Grayscale’s only competitor in the over-the-counter Bitcoin (BTC) trust market and that Grayscale had maintained its market share through deceit. Osprey claimed Grayscale promoted its Grayscale Bitcoin Trust (GBTC) as a means to access a spot Bitcoin ETF through a conversion. Osprey argued that the conversion was presented as a certainty, despite regulatory uncertainty at the time.Grayscale’s application to convert GBTC into a spot ETF was approved by the US Securities and Exchange Commission in January 2024. An August 2023 ruling compelled the SEC to reconsider its rejection of Grayscale’s application to convert the fund into an ETF. The SEC’s approval allowed GBTC to transition into a spot ETF and begin trading on the NYSE Arca exchange.Related: Crypto ETPs shed $240M last week amid US trade tariffs — CoinSharesLawsuit settlement follows Osprey appeal On Feb. 7, Judge Mark Gould sided with Grayscale, ruling that Osprey’s claims against the asset manager were exempted from the Connecticut Unfair Trade Practices Act. Osprey responded by filing a motion for reargument on Feb. 10. The fund claimed that Gould’s ruling came “before the close of discovery,” which is the formal evidence-gathering phase of a lawsuit.The fund claimed that the ruling overlooked the differences between how the Federal Trade Commission and Connecticut courts treat deceptive advertising. The settlement ended one of the more prominent legal clashes among crypto asset managers competing for early ETF dominance. Grayscale’s GBTC remains one of the largest Bitcoin investment vehicles in the United States.Magazine: Illegal arcade disguised as … a fake Bitcoin mine? Soldier scams in China: Asia Express
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Illinois Senate passes crypto bill to fight fraud and rug pulls
The Illinois Senate, by a vote of 39 to 17, passed a regulatory bill aimed at curbing cryptocurrency fraud and protecting investors from deceptive practices, including rug pulls and misleading fee structures.On April 10, the chamber passed Senate Bill 1797 (SB1797), also known as the Digital Assets and Consumer Protection Act, which Senator Mark Walker introduced in February.The bill gives the Illinois Department of Financial and Professional Regulation authority to oversee digital asset business activity within the state.Under the legislation, any entity engaging in digital asset business with Illinois residents must be registered with the state’s financial regulator. The bill also requires crypto service providers to offer advance full disclosure of user fees and charges.Bill SB1797. Source: Ilga.gov“A person shall not engage in digital asset business activity, or hold itself out as being able to engage in digital asset business activity, with or on behalf of a resident unless the person is registered in this State by the Department under this Article [...],” the bill states.Related: Trump family memecoins may trigger increased SEC scrutiny on cryptoWalker has previously highlighted the need to address crypto-related fraud in Illinois. In an April 4 X post, he stated:“The rise of digital assets has opened the door for financial opportunity, but also for bankruptcy, fraud and deceptive practices. We must set standards for those who have evolved in the crypto business to ensure they are credible, honest actors.”Illinois’ push for stronger oversight follows a wave of high-profile memecoin meltdowns and insider-led scams that have left retail investors with substantial losses.In March, New York introduced Bill A06515, aiming to establish criminal penalties to prevent cryptocurrency fraud and protect investors from rug pulls.Related: Trump’s tariff escalation exposes ‘deeper fractures’ in global financial systemMemecoin scams spark regulatory momentumOne of the most notorious recent cases was the collapse of the Libra token, a memecoin reportedly endorsed by Argentine President Javier Milei. In March, the project’s insiders allegedly withdrew over $107 million in liquidity, causing a 94% price crash and wiping out roughly $4 billion in market value.Libra token crash. Source: Kobeissi LetterInsider scams and “outright fraudulent activities” like rug pulls, which are “not only unethical but also clearly illegal, with case law to support enforcement,” should see more thorough regulatory attention, Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum, told Cointelegraph, adding:“In my view, these activities should fall firmly within the jurisdiction of law enforcement agencies.”The latest meltdown occurred on March 16, after Hayden Davis, the co-creator of the Official Melania Meme (MELANIA) and the Libra token, launched a Wolf of Wall Street-inspired token (WOLF).Source: BubblemapsOver 82% of the token’s supply was held by the same entity, which led to a 99% price crash after the token peaked at a $42 million market capitalization.Argentine lawyer Gregorio Dalbon has asked for an Interpol Red Notice to be issued for Davis, citing a “procedural risk” if Davis were to remain free as he could access vast amounts of money that would allow him to either flee the US or go into hiding.Magazine: Caitlyn Jenner memecoin ‘mastermind’s’ celebrity price list leaked
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Democrats slam DOJ’s ‘grave mistake’ in disbanding crypto crime unit
Crypto-critical US Senator Elizabeth Warren has led six Senate Democrats in urging the Department of Justice to reverse its decision to terminate its crypto investigations and prosecutions division.In an April 10 letter to Deputy Attorney General Todd Blanche, the Senators said the decision to disband the department’s National Cryptocurrency Enforcement Team was a “grave mistake” that would support “sanctions evasion, drug trafficking, scams, and child sexual exploitation.”Senators Richard Durbin, Mazie Hirono, Sheldon Whitehouse, Christopher Coons and Richard Blumenthal signed the letter in addition to Warren.On April 7, Blanche shuttered the DOJ’s crypto enforcement team, saying in a memo that “The Department of Justice is not a digital assets regulator.”The senators claim that the decision gave a “free pass to cryptocurrency money launderers” and claimed that crypto mixing services — used to obfuscate blockchain transactions — are “go-to tools for cybercriminals.” “It makes no sense for DOJ to announce a hands-off approach to tools that are being used to support such terrible crimes,” the letter said.An excerpt of Democrat’s letter to the DOJ. Source: US Senate Committee on Banking, Housing, and Urban AffairsThe senators also questioned why the Justice Department had decided not to prosecute a “host of crimes involving digital assets, including violations of the Bank Secrecy Act.”They claimed that this creates a “systemic vulnerability in the digital assets sector,” which “drug traffickers, terrorists, fraudsters, and adversaries” will exploit on a large scale. The lawmakers requested a staff-level briefing no later than May 1, providing “detailed information on the rationale behind these decisions.” Targeting Trump family crypto endeavors The letter also took a swipe at the Trump family’s crypto projects, suggesting potential conflicts of interest.Related: SafeMoon boss cites DOJ’s nixed crypto unit in latest bid to toss suitA press release accompanying the letter stated that the senators are raising concerns about the “potential connections” between the DOJ’s actions and the crypto ventures of President Donald Trump and his family.The Trumps have an interest in and have backed the crypto platform World Liberty Financial along with its token. The platform is also planning to launch a stablecoin while President Trump’s sons, Eric Trump and Donald Trump Jr., are working to launch a crypto-mining company called American Bitcoin.“Your decisions give rise to concerns that President Trump’s interest in selling his cryptocurrency may be the reason for easing law enforcement scrutiny,” the Democrats stated. In a memo announcing the crypto enforcement team’s disbandment, Blanche accused the Biden administration of using the Justice Department to “pursue a reckless strategy of regulation by prosecution.”Magazine: Illegal arcade disguised as … a fake Bitcoin mine? Soldier scams in China: Asia Express
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NY attorney general urges Congress to keep pensions crypto-free — ‘No intrinsic value’
New York Attorney General Letitia James has sent a letter to US congressional leaders urging “common sense” federal crypto regulations and to keep digital assets out of US pensions.“I am urging Congress to pass legislation that would strengthen federal regulations on the cryptocurrency industry to protect investors, strengthen financial markets, and stop fraud,” James said in a 14-page letter shared on April 10, outlining six major risks if the sector remains unregulated.She said that without appropriate safeguards, the “unchecked proliferation of digital assets” undermines US dollar dominance, weakens national security due to criminal activity, and “undermines the stability of financial markets.” Unregulated crypto also subjects investors to “price manipulation and rigged markets,” facilitates fraud that “drains billions of dollars from hardworking Americans, and extracts assets and investments from the American economy,” she said. An excerpt of James’ letter to Congress. Source: Office of the New York State Attorney GeneralJames made a number of recommendations and pushed Congress for legislation that would require stablecoin issuers to have a US presence and regulatory oversight and mandate backing stablecoins with US dollars or treasuries. She also wants regulations that require platforms to work only with anti-money laundering-compliant entities, establish registration requirements for issuers and intermediaries, protect against conflicts of interest and promote price transparency and require fraud prevention measures.No crypto assets in pension funds The New York’s top lawyer also aired her concerns about including crypto in pension funds. “Digital assets are uniquely unsuitable for retirement savings due to their high volatility,” she said, claiming that they have no value.“The underlying value of cryptocurrency is unpredictable and not determined by true price discovery because they have no intrinsic value on which their prices are based.”James also urged against retirement funds investing in crypto-tracking exchange-traded funds, stating that “unlike traditional exchange-traded funds backed by stocks and bonds, cryptocurrency held to back cryptocurrency ETFs are at risk of permanent theft.” Related: US lawmaker will reintroduce crypto retirement bill to help Trump agenda“As Congress takes the mantle to propose legislation governing the cryptocurrency industry, we hope it also takes action to mitigate the risks posed by the industry to America’s national security, financial stability, and citizens,” James said. The call for regulation follows the US Department of Justice’s reported dismantling of its federal criminal cryptocurrency fraud enforcement division.Magazine: 3 reasons Ethereum could turn a corner: Kain Warwick, X Hall of Flame
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Bitcoin reserve bills advance in New Hampshire, Florida
New Hampshire’s House and Florida’s House Insurance and Banking Committee have respectively advanced bills allowing their states to create Bitcoin reserves.New Hampshire’s House passed its Bitcoin reserve bill, HB302, in a 192-179 vote on April 10 which will now head to the Senate. The state is now the fourth to pass a Bitcoin (BTC) reserve bill through one chamber, joining Arizona, Texas and Oklahoma.If HB302 clears New Hampshire’s Senate and Governor Kelly Ayotte signs it into law it would allow the state’s treasurer to use 10% of the state’s general fund and other authorized funds to invest in precious metals and certain digital assets. The bill also sets out how they should be custodied.The bill specifies that only cryptocurrencies with a market capitalization of over $500 billion would be eligible for investment, a criteria that only Bitcoin currently meets.New Hampshire’s House votes to pass HB302, the state’s Bitcoin reserve bill. Source: New Hampshire House of RepresentativesIn a debate prior to the vote, Democrat Representative Terry Spahr argued that the bill is unnecessary and could undermine the future security of the state’s digital assets stockpile. “Unbeknownst to the committee and to the sponsor […] the treasurer testified that they already have that authority,” Spahr said. He added that cryptocurrency is “constantly shifting and changing, and it’s sort of dangerous to be kind of locked into certain types of security measures, and I think that bill does this.”Republican Representative Jordan Ulery countered that the bill was necessary as it could create the “potential for a large amount of money being earned by the state in these investments.”New Hampshire has two other blockchain-related bills working their way through the legislature — HB310, which covers stablecoins and real-world asset tokenization (RWA) and HB 639, which deals with blockchain regulation and dispute resolution.Florida House Committee passes Bitcoin reserve bill Meanwhile, on April 10, Florida’s House Insurance and Banking Committee passed the state’s Bitcoin reserve bill, HB487, with a unanimous vote.The bill has three committees to clear before it progresses to Florida’s House.Similar to New Hampshire’s bill, HB487 would allow Florida’s chief financial officer and the State Board of Administration to invest up to 10% of certain state funds — including the General Revenue Fund and the Budget Stabilization Fund — into Bitcoin.The bill’s sponsor, Republican Representative Webster Barnaby, pleaded with the Committee before the vote “to vote up on this very important bill,” which he claimed would “put Florida in the leading edge of this very new technology.”Related: US federal agencies to report crypto holdings to Treasury by April 7Florida’s bill gives the state’s financial chief the ability to invest in digital assets directly, through certain qualified custodians, or through exchange-traded products and details security and custody requirements.According to Bitcoin Laws, which tracks the progress of digital assets legislation, Arizona is currently leading the race to become the first US state to establish a strategic Bitcoin reserve. Source: Bitcoin LawsOn March 24, two digital assets reserve bills, SB1373 and SB1025, cleared Arizona’s House Rules Committee and are now headed to the state’s House for a full floor vote. If passed by the House, the bills would then need the signature of Arizona’s Democratic governor, Katie Hobbs, to become law.Magazine: Financial nihilism in crypto is over — It’s time to dream big again
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SEC staff gives guidance on how securities laws could apply to crypto
US Securities and Exchange Commission staff have given guidance on how federal securities laws could apply to crypto, saying companies issuing or dealing with tokens that could be securities should give better details about their business.The SEC’s Division of Corporation Finance said in a staff statement on April 10 that it was giving its views “to provide greater clarity on the application of the federal securities laws to crypto assets.” The Division said its statement was made of observations of disclosures given in existing disclosure requirements and “addresses our views about certain specific disclosure questions that market participants have presented to the staff.”The guidance, which the Division noted had “no legal force or effect,” said crypto companies who are giving disclosures about their business have typically shared a host of information about their operations, such as what the company specifically does, how any issued tokens work and how the business generates — or intends to generate — revenue.Companies have also disclosed whether they plan to remain engaged in a crypto network or app after they launch it and, if not, whether any other entities will take over.Crypto firms should also explain their technology, such as if their product is a proof-of-work or proof-of-stake blockchain, its block size, transaction speed, reward mechanisms, the measures to ensure network security and whether the protocol is open-source or not.The SEC staff also noted that registration or qualification is not required in connection with crypto offerings that aren’t securities and aren't part of an investment contract. However, the statement didn’t provide clarity on what digital assets could be securities.Commercial litigator Joe Carlasare told Cointelegraph the statement was “a welcome and refreshing step toward clearer regulatory guidance.”“Adhering to the guidelines will help entities not only position themselves more favorably with regulators but also demonstrate a commitment to transparency and credibility,” he said.Crypto firms should share all risksThe SEC staff statement said that issuers usually clearly disclose risks related to price volatility, network and cybersecurity vulnerabilities, and custody risks, in addition to standard business, operational, legal and regulatory risks.A “materially complete description” of a security is also typically required from an issuer, which includes the mechanism behind paying dividends, distributions, profit-sharing and voting rights, including how those rights are enforced.Related: No crypto project has registered with the SEC and ‘lived to tell the tale’ — House committee hearingIt added a company should share if a protocol’s code can be modified, and if so, who can make such changes and whether the smart contracts involved have been subjected to a third-party security audit.Other disclosures the statement mentioned are whether the token’s supply is fixed and how it was or will be issued along with identifying executives and “significant employees.”The Division said its guidance intended to build on the SEC’s Crypto Task Force, which is planning to host a series of roundtables with the crypto industry to discuss how it should police crypto trading, custody, tokenization and decentralized finance.Magazine: SEC’s U-turn on crypto leaves key questions unanswered
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