Nemil Dalal, the product lead for the Coinbase Developer Platform, recently shared insights on this development, noting that the first AI-to-AI crypto transaction is not just a novelty but a glimpse into the future of decentralized finance. “AI and crypto are two of the hottest trends in the industry right now,” Dalal explained. “The combination is powerful because crypto allows programmable conditions, enabling AI agents to transact autonomously in ways that traditional financial systems simply can’t match.”

The Importance of AI-Crypto Integration

According to Dalal, AI agents are poised to become increasingly central to the digital economy. One of the major obstacles AI faces is the inability to interact with traditional financial systems—AI cannot walk into a bank and open an account. This is where crypto comes into play. “AI can’t open a bank account, but it can own a crypto wallet. That’s why crypto becomes a perfect financial ecosystem for AI,” Dalal emphasized.

In a recent announcement, Coinbase CEO Brian Armstrong echoed this sentiment, celebrating the first AI-to-AI transaction using USDC on Coinbase’s Layer 2 (L2) blockchain network, Base. Armstrong pointed out that this new capability could enable AI agents to transact with humans, merchants, and other AI agents without the limitations imposed by traditional banking infrastructure. “This is a huge step forward. AI agents can now use crypto to complete tasks autonomously,” Armstrong said.

A New Era for AI Agents and Financial Transactions

The AI-to-AI transaction opens the door for more sophisticated financial interactions between AI agents. Imagine, for instance, one AI specializing in web crawling for data analysis and another specializing in summarization. These AI agents could now pay each other for services rendered, creating a dynamic ecosystem of digital agents performing tasks and settling payments without human intervention.

Dalal offered a compelling example: “Skyfire, one of the companies we’re working with, is building financial platforms for AI agents. In a recent transaction, one AI agent crawled the web for specific data, which it then sold to another AI agent. This level of interactivity is unprecedented.”

The ability to facilitate micro-payments through crypto also enhances the utility of AI. Dalal explained that AI agents could pay humans in crypto for specific tasks, such as gathering opinions or summarizing information. This capability could foster a new gig economy where AI-driven tasks are completed through micro-transactions, further expanding the role of crypto in AI ecosystems.

Overcoming Traditional Barriers

One of the most exciting aspects of this development is the way it bypasses existing limitations in the traditional financial system. AI agents have long been hindered by the inability to access services like credit cards or bank accounts, which are necessary to use platforms like AWS or GitHub. Crypto, with its decentralized and programmable nature, provides a solution.

“AI agents can now interact with crypto wallets seamlessly through APIs, enabling them to access services without the need for traditional financial tools,” Dalal said. “This is where AI and blockchain create something truly unique. We can finally facilitate tasks and transactions that were impossible in the past.”

The Future of the AI-Crypto Economy

As the potential of AI-crypto integration becomes clearer, industry experts are increasingly bullish on its future. Bitwise Asset Management forecasted that AI and crypto could add $20 trillion to the global economy by the end of the decade. Meanwhile, global investment manager VanEck predicts that the revenue from AI-crypto integration could reach $10.2 billion by 2030.

Armstrong has posed a provocative question: “How big will the AI-to-AI economy be in a few years?” While the answer is still uncertain, the possibilities are vast. From micro-tasking and data aggregation to autonomous transactions between machines, the combination of AI and crypto has the potential to reshape entire industries.

Dalal is optimistic about what’s to come: “We’re seeing a tremendous amount of demand for these types of AI-crypto transactions, and we’re only scratching the surface. Developers are eager to explore what this can do for industries ranging from finance to e-commerce.”

Coinbase’s AI Strategy and Developer Platform

Coinbase isn’t stopping at financial transactions between AI agents. The company’s broader AI strategy includes developing AI agents that can assist with customer support, automate code generation, and enable faster app development. Coinbase’s developer platform is a cornerstone of this effort, providing tools that allow developers to integrate AI and blockchain seamlessly.

“We’re incredibly bullish on AI and crypto,” Dalal stated. “Blockchain development can be challenging, but our goal is to make it as simple and secure as possible. From wallets to APIs, we want to give developers the tools they need to build on-chain applications that leverage both AI and crypto.”

Last week, @brian_armstrong and I spoke to all Coinbase employees about our vision for @CoinbaseDev (CDP):

"Making it easier to build onchain than online, and supporting a million onchain developers building for a billion users." pic.twitter.com/UH9dwzd1kC

— Nemil Dalal (@nemild) August 23, 2024

The platform’s Onchain Kit, for instance, allows developers to build decentralized applications (dApps) in minutes rather than weeks. Meanwhile, Coinbase’s smart wallets provide end-users with secure access to the blockchain ecosystem, empowering AI agents to use these tools for a variety of tasks.

As Armstrong noted, “AI is going to run on the device, in the cloud, and on the blockchain. The future will involve entirely new experiences made possible by the integration of these technologies.”

Integration of AI and Crypto Just Starting

The integration of AI and crypto is still in its infancy, but the early signs are promising. As developers experiment with new use cases, it’s clear that the marriage of these two technologies could be a game-changer for industries worldwide.

Dalal summed up the potential: “We’re witnessing the dawn of a new financial ecosystem. The fusion of AI and crypto has the potential to unlock tremendous value, and Coinbase is at the forefront of making that happen.”

As more AI agents begin to interact autonomously and transact using crypto, the implications for finance, technology, and commerce will be game-changing. For now, Coinbase’s first AI-to-AI crypto transaction is just the beginning of what promises to be a transformative journey into the future of decentralized finance. This is potentially world-changing stuff.

Why Buy USDT Without KYC?

There are a couple of reasons why one would go for purchasing USDT without KYC, some of which include:

• Privacy Related: Such users may really value their privacy and might not be too interested in submitting their sensitive data to any centralized exchange.
• Speed and Convenience: KYC verification may be a slow process. Bypassing the KYC process may result in a more expedited process to get USDT.
• Limited Access: People in areas with limited access to traditional financial services may look for alternative entry points to the cryptocurrency market.

Understanding the Risks

On the other hand, there are also risks in acquiring USDT directly without KYC, as follows:

• Security: Platforms without KYC, therefore, have fewer security measures than other platforms, making them more prone to hacks or scams.
• Less Liquidity: Since they are non-KYC platforms, it means they deal mostly with less volume, which therefore could affect the purchase and sale of USDT at the prices users would want to sell them at.
• Increased Fees: Skipping KYC could cost more in terms of high transaction fees to offset the high inherent risk on the platform.
• Regulatory Scrutiny: Cryptocurrency regulations are ever-changing. Platforms that avoid KYC may very well be subject to stronger regulatory scrutiny, if not shut down, in the future.

Practical Methods of Purchasing USDT Without KYC

1. Peer-to-Peer (P2P) Marketplaces:

P2P markets connect buyers and sellers directly, facilitating transactions in the Buy USDT No KYC option. Here’s how it works:

• Users post USDT purchase or sale orders and specify a preferred payment method such as cash, gift cards, etc., and at what price they want the order to execute.
• The platform will be facilitated by an escrow service, which in this case will hold the USDT until both parties have confirmed the completion of the transaction.

Security Issues in P2P platforms:

• Use really solid escrow services and reliable platform services.
• Research vendors as much as possible. Only buy from vendors with a solid reputation and a complete sales record.
• Do not release the USDT until complete payment is received.
• But do be careful with such too-good-to-be-true deals. The next type of scammers is often seen using such P2P platforms to fleece unsuspecting users.

2. Decentralized Exchanges (DEXs):

DEXs are basically blockchain-powered platforms for the exchange of cryptocurrencies with no central authority, for example, USDT has no KYC for the wallets of sellers.

Security considerations for a DEX:

• DEXs have a non-custodial nature, which means users hold their own cryptocurrency. This gives them control, but on the flip side, there’s no central authority to recover lost funds in cases of error or hacking.
• Users should be able to appreciate how blockchain technology works and how to deal with wallets.
• Token swapping in DEXs can be complex with smart contracts. These contracts need to be researched and understood well before engaging in them.
• Some have a problem with liquidity, especially for smaller tokens.

3. Gift Card Services:

Some services gift card purchases to get you the cryptocurrency. As many of these sites claim “No KYC”, they do not necessarily ask for detailed KYC for smaller buys.

Security Considerations of Gift Card Services

• Most of them, however, tend to be expensive.
• You risk buying stolen gift cards, which could lead to account suspension or possibly even get you into trouble legally.
• Be cautious with scams that require payment in the form of gift cards in exchange for cryptocurrencies.

Conclusion

There are ways to purchase USDT without KYC, but they come with inherent risks. P2P markets, decentralized exchanges, and gift card services can be used to various extents to bring effectiveness and convenience. Do consider the amount of risk and convenience that the respective methods offer before proceeding. Do try to protect your money and personal information as much as you can. If this is of major concern to you, you will need to find a good centralized exchange, since most of them are, that will have a strict KYC procedure. Most of these exchanges also excel in security measure and liquidity support, which would otherwise take risks related to the method of non-KYC to a low level.

Wright has claimed for years to be Nakamoto, taking his claims to court in an effort to be legally recognized as Bitcoin’s creator and reap the financial rewards that would come with the recognition. Justice Mellor’s ruling came in the civil trial brought by Crypto Open Patent Alliance (COPA) aimed at disproving Wright is Nakamoto and crippling his ability to continue suing crypto companies.

“Thus, Dr Wright presents himself as an extremely clever person,” Justice Mellor wrote. “However, in my judgment, he is not nearly as clever as he thinks he is. In both his written evidence and in days of oral evidence under cross-examination, I am entirely satisfied that Dr Wright lied to the Court extensively and repeatedly. Most of his lies related to the documents he had forged which purported to support his claim. All his lies and forged documents were in support of his biggest lie: his claim to be Satoshi Nakamoto.

“Many of Dr Wright’s lies contained a grain of truth (which is sometimes said to be the mark of an accomplished liar), but there were many which did not and were outright lies,” Justice Mellor added. “As soon as one lie was exposed, Dr Wright resorted to further lies and evasions. The final destination frequently turned out to be either Dr Wright blaming some other (often unidentified) person for his predicament or what can only be described as technobabble delivered by him in the witness box.”

Interestingly, after hearing the mountain of evidence submitted in the trial, Justice Mellor has his own opinion on the age-old question of whether Nakamoto is a single individual or if the pseudonym was used by a group of people.

Satoshi Nakamoto was and remains a pseudonym,” he wrote. “Although this is not of any significant weight in my overall conclusion, my personal view, having heard all the evidence in this Trial, is that it is likely that a number of people contributed to the creation of Bitcoin, albeit that there may well have been one central individual. It would therefore be accurate to refer to Satoshi as he/she/they to reflect the possibilities, but unwieldy. I will therefore refer to Satoshi simply as ‘he’, but it is a shorthand for he/she/they.”

Needless to say, Wright has already indicated he intends to appeal the ruling.

I fully intend to appeal the decision of the court on the matter of the identity issue. I would like to acknowledge and thank all my supporters for their unwavering encouragement and support. In the meantime, I shall continue to work closely with the Teranode team to achieve scaling beyond three million transactions per second. At present, Teranode is achieving one million tps and we are ensuring that the cloud-based server configurations function correctly in a way that does not impact scaling. However, even at a lower level of transaction processing, Teranode is far more efficient than the existing node structure and will lead to cost savings as well as a path to scalability.

^Posted by LB on behalf of CSW.

— Dr. Craig S Wright (@Dr_CSWright) | May 20, 2024

The Significance of Identity Verification in Crypto

Fraud detection and scams are growing in a technological era, especially in crypto currencies. It has become necessary to take proactive security measures to make transactions and accounts secure. 

Here are the several reasons to practice  identify verification in crypto:

Preventing Illegal Activities

Cryptocurrencies can be susceptible to being used for illicit activities like money laundering, fraud, and financing terrorism. Identity verification helps mitigate these risks by tracking the flow of transactions back to their source. Security is an effective method to eliminate the stress of scams and wrong transaction such as hacking wallets. 

Regulatory Compliance

As global financial regulators pay closer attention to cryptocurrencies, exchanges and wallet providers are increasingly required to implement Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. These regulations mandate the verification of users’ identities to create a more transparent financial system.

Enhancing Trust and Security

For cryptocurrencies to gain broader acceptance and usage, users must trust that the ecosystem is safe. Identity verification adds a layer of security that reassures users about the legitimacy of their transactions and counterparts. It is a piece of mind for the user that their accounts are protected, and only they can gain access to their wallets and accounts. Also, some secure security measures like biometric, facial recognition and two factor pass code makes it more secure.

Challenges of Implementing Identity Verification in Crypto

Implementing identity verification in the cryptocurrency world presents several challenges:

Privacy Concerns

One of the foundational principles of cryptocurrencies is the preservation of user anonymity. Mandatory identity verification raises concerns about user privacy and the potential for governmental or unauthorized surveillance.

Technological and Operational Hurdles

Integrating robust identity verification processes that are both secure and user-friendly into existing cryptocurrency platforms can be technologically challenging and costly. Despite of expensive, technological operations enhance security and make the payment process more secure. 

Global and Regulatory Variability

The cryptocurrency market is global, but regulations vary significantly across jurisdictions. Adapting identity verification practices to comply with diverse legal frameworks can be complex and cumbersome. However, if done with proper strategies and planning it will provides a piece of mind to avoid of scams. 

Technological Solutions and Innovations

To address these challenges, various technological innovations have been developed:

Decentralised Identity Verification

Some platforms are exploring blockchain-based, decentralised identity verification systems that allow users to control and share their identity information selectively. This approach aims to maintain privacy while still complying with regulatory requirements.

Biometric Verification

Advanced biometrics, including facial recognition and fingerprint scans, are being used to enhance the security and accuracy of identity verification without storing sensitive personal information centrally. Biometric like fingerprint reading is effective way for security of transactions or withdraws of crypto that ensures that the right person is accessing the wallet. It will eliminate the stress of fraud detection. 

AI and Machine Learning

These technologies are increasingly employed to automate and enhance the accuracy of the identity verification process, reducing human error and the potential for fraud. Also, machine learning technology is used in various sectors to improve the user identity with devices. You can also leverage artificial intelligence to recognize anyone’s identity. 

Regulatory Trends and Future Directions

The regulatory landscape for cryptocurrencies is still evolving. As governments and international bodies aim to develop regulations that protect consumers without stifling innovation, identity verification will be a central theme. Future regulations will likely require more transparent and rigorous identity verification processes while trying to uphold the core values of privacy and decentralisation cherished in the crypto community.

Conclusion

Identity verification in the cryptocurrency sector is a complex issue that sits at the intersection of security, privacy, and regulatory compliance. As the industry continues to grow and mature, finding solutions that balance these aspects will be crucial for the continued adoption and success of cryptocurrencies. Innovations in technology and regulatory frameworks that respect the principles of decentralization while ensuring a secure and compliant environment will define the future of identity verification in crypto. This balance is not merely beneficial but essential for the legitimacy and sustainability of the crypto ecosystem.

According to the company, lawyers have managed to recover between $14.5 and $16.3 billion dollars. The company says it was a very difficult task since FTX held “only 0.1% of the Bitcoin and only 1.2% of the Ethereum customers believed it held.” As a result, since debtors could not benefit from the appreciation of those cryptos to the extent initially thoughts, the lawyers had to get creative, looking for other sources of recoverable assets.

As a result of their efforts, FTX has put forth a plan that pays back all non-governmental creditors. The proposed plan includes resolution of the $24 billion in IRS claims with “a $200 million cash payment and a $685 million subordinated claim that will rank below claims of all creditors and governmental entities.” The plan also includes restoring $1.2 billion seized by the DOJ to be disbursed to customers and creditors, if the DOJ agrees.

For creditors holding claims in an allowed amount of $50,000 or less, the Plan creates a special “convenience class”. Because of this classification, if the Plan is approved by the Bankruptcy Court, the Debtors anticipate that 98% of the creditors of FTX by number will receive approximately 118% of the amount of their allowed claims within 60 days after the effective date of the Plan, subject to know-your-client and distribution information requirements.

“We are pleased to be in a position to propose a chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors,” said John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of FTX. “On behalf of FTX’s independent Board of Directors, I want to extend our deepest appreciation to the numerous governmental agencies, including the United States Department of Justice, the Commodity Futures Trading Commission, the Internal Revenue Service and the Securities Commission of The Bahamas, for their tireless efforts, cooperation and assistance through this complex recovery process. I also want to thank the Joint Official Liquidators of FTX Digital Markets, the Ad Hoc Committee of Non-U.S. Customers, the Class Action Claimants, BlockFi, the Official Committee of Unsecured Creditors and all of their professionals for their hard work in the development of the Plan and its resulting achievements. Finally, I want to thank all the customers and creditors of FTX for their patience throughout this process.”

Wright has engaged in a years-long campaign to prove he is the anonymous creator of Bitcoin and reap the financial rewards of doing so. Most experts have long-since discarded Wright’s claims, but that hasn’t stopped him from trying to make his case in court.

According to Wired, Justice James Mellor destroyed Wright’s claims, leaving no doubt that is not who he claims to be.

“The evidence is overwhelming,” said Justice Mellor. “Dr. Wright is not the author of the Bitcoin white paper. Dr. Wright is not the person that operated under the pseudonym Satoshi Nakamoto. Dr. Wright is not the person that created the Bitcoin system. Nor is Dr. Wright the author of the Bitcoin software,” he added.

The ruling is sure to bring relief to many in the crypto community, as a favorable ruling for Wright could have had profound implications.

In this blog, we will offer some insights into the hottest coins in the crypto world for September 2023 to help you make an informed decision. Let’s begin!

Bitcoin

Bitcoin is the pioneer in the crypto market, with Satoshi Nakamoto introducing it in 2009. Although it has experienced many ups and downs over the years, this digital asset is one of the most renowned in the industry. How has Bitcoin succeeded to remain at the forefront of the crypto sector? Well, it’s mainly due to its status as the first digital asset to be created and its solid network of supporters. Even if Bitcoin didn’t have much value when it was first introduced, its price had many upsides, translating into considerable gains for investors. If you’re wondering why Bitcoin is one of the top cryptocurrencies to buy this month, we can tell you plenty of reasons that make it an excellent choice. 

For instance, Bitcoin has a decentralized nature, which means no intermediary is required when completing a transaction. This makes the digital asset a great medium of exchange, eliminating costly fees and ensuring an increased speed when sending funds. Plus, it is estimated that the next Bitcoin halving is close (although the data hasn’t yet been confirmed, it is believed it will occur in April 2024). Such an event could be a catalyst for a bull market if we consider Bitcoin’s past performance. During all the other halving events – namely in 2012, 2016 and 2020-, the digital asset reached all-time highs, so investors should prepare for the next Bitcoin halving and take advantage of all the opportunities. 

Ethereum 

In 2013, Vitalik Buterin introduced a whitepaper for a new crypto project: Ethereum. With the other co-founders, the computer programmer succeeded in raising the necessary funds to lay the foundation of Ethereum, which quickly established itself as a reputable cryptocurrency, garnering the interest of developers because of its unparalleled features. Ethereum also serves as a platform for the blockchain, enabling the development of NFTs (non-fungible tokens) which have revolutionized the art sector in recent years. 

Since the moment of its inception, Ethereum has evolved considerably, and although it has experienced price fluctuations, it remains one of the most reliable cryptocurrencies and a valuable addition to any investor’s portfolio. It has many advantages over its competitors, making up under 20% of the cryptocurrency market. Ethereum is the leading smart contract platform, hosting many dApps, including NFT marketplaces, DeFi projects, and metaverse applications. Moreover, Ethereum is always evolving: last year, The Merge – the first significant upgrade in its network- resulted in the transition from energy-intensive PoW consensus mechanism to the PoS model that is more efficient. However, other upgrades will follow, aiming to turn the Ethereum into a maximally resilient platform.  

Avalanche

Avalanche has generated a lot of social buzz in 2021 – one year after its launch, it has gained significant popularity, becoming one of the most-talked-about digital assets in the market. As the popularity of blockchain keeps increasing, it is expected that Avalanche will further raise the interest of investors. There are many reasons why this digital asset is a top buy, but the most impactful ones are its versatility and unparalleled value gain. 

So, investing in Avalanche in September 2023 can be a good idea, given its potential as a long-term investment. Not only has the digital asset generated impressive returns by keeping a sharp uptrend since its introduction, but it has also demonstrated its resilience. As most crypto analysts state, Avalanche is still in its early stages, so buying it today could result in impressive gains in the following years.

Litecoin

Since its inception in 2011, Litecoin has stood the test of time, with many calling it “the digital silver” just as Bitcoin is compared to digital gold. While it uses the same protocol as Bitcoin, Litecoin has some considerable adaptations, as the network offers more instantaneous verification times for transactions. A notable achievement of the cryptocurrency is the adoption of SegWit (Segregated Witness) which resulted in more efficient network transactions. Litecoin also completed the Lightning Network Transaction, boosting its reputation as a trustworthy and fast digital asset. 

Litecoin has excellent scalability, processing 56 transactions per second, unlike Bitcoin which can only handle 7 transactions. Moreover, it offers lower transaction fees than other digital assets, making it a great investment choice. Besides, Litecoin has continuously improved since its launch, making it a desired asset among investors. 

Chainlink

Chainlink is another exciting crypto project, which uses an Oracle network to enable secure communication between blockchains. Moreover, due to its flexible infrastructure, it can pull data from APIs, integrating any blockchains, whether current or future ones. Chainlink has even collaborated with Google, succeeding to stand out as a trustworthy cryptocurrency. Ever since the launch of its first ICO, Chainlink raised $32 million in a very short time, intriguing investors with its purpose to connect external data sources and blockchains. 

Chainlink has excellent fundamentals, having a clear roadmap with clear and realistic goals. The project has numerous use cases in areas like insurance, DeFi, gaming and NFT, and even social impact. Chainlink is likely to gain more value as a network in the future, and according to stakers, this translates into higher rewards, representing a win-win situation, as a valuable network also attracts more investors. 

The bottom line

As you can see, there are many promising cryptocurrencies to watch out for this month. With their increased popularity and great features, digital assets are more than just a passing fad, offering investors great opportunities to make extra money. When choosing the best crypto for your portfolio, consider your investment goals, and analyze factors like stability, market value and technology to increase your chances of success.

As part of the partnership between the two companies, “Coinbase will use Google Cloud’s powerful compute platform to process blockchain data at scale.” Coinbase will also benefit from Google’s fiber-optic network, using the speed of the service to help power machine-learning crypto insights.

Google plans to allow select customers to pay for cloud services via crypto, with customers in the Web3 space being given the opportunity first.

“We are excited Google Cloud has selected Coinbase to help bring Web3 to a new set of users and provide powerful solutions to developers,” said Brian Armstrong, Co-founder and CEO of Coinbase. “With more than 100 million verified users and 14,500 institutional clients, Coinbase has spent more than a decade building industry-leading products on top of blockchain technology. We could not ask for a better partner to help execute our vision of building a trusted bridge into the Web3 ecosystem.”

“We want to make building in Web3 faster and easier, and this partnership with Coinbase helps developers get one step closer to that goal,” said Thomas Kurian, CEO of Google Cloud. “We’re proud Coinbase has chosen Google Cloud as its strategic cloud partner, and we’re ready to serve the thriving global Web3 customer and partner ecosystem. Our focus is making it frictionless for all customers to take advantage of our scalability, reliability, security, and data services, so they can focus on innovation in the Web3 space.”

Cryptocurrency and blockchain tech are in the process of revolutionizing a range of industries, although none as much as the finance market. JPMorgan has started using blockchain for collateral settlements, Mastercard has partnered with Bakkt to support crypto, and now American Express is getting in on the action with its own crypto rewards credit card, in partnership with Abra.

According to TechCrunch, the company has not revealed what cryptocurrencies will be supported, but Abra founder and CEO Bill Barhydt told the outlet that customers will eventually be able to choose from multiple different cryptocurrencies.

American Express customers wanting to take advantage of the crypto rewards will need to be registered with Abra, where they will be able to use the company’s exchange to swap rewards for a variety of cryptocurrencies.

“Eventually, we’re also working on a solution that will allow you to use your existing crypto balance to affect your credit line, which is something we’ll probably launch in the future. I think that’s a big benefit because a lot of crypto holders are kind of penalized when it comes to banking and credit,” Barhydt said.

The new card is expected launch in the latter part of 2022.

The SEC has filed lawsuits against two of the world’s biggest crypto exchanges in the last two days. It filed against Binance Monday and followed up with a suit against Coinbase Tuesday.

In an interview with CNBC, Gensler made it very clear what he and the SEC thinks of the crypto market.

“I think there’s been clarity for years,” Gensler said. “The investing public has the benefit of US securities laws. Crypto should be no different and these platforms, these intermediaries, need to come into compliance and protect the investing public.

“These trading platforms, they call themselves exchanges, are co-mingling a number of functions which in traditional finance, we don’t see the New York Stock Exchange also operating a hedge fund, making markets and, as we alleged in Binance, having a sister organization flooding the platform with transactions called ‘wash trading.’ And the lack of controls on the platforms is really a web of deception and conflicts.”

Jim Cramer pointed out that many of the measures the SEC is proposing in its Binance case, such as asset siezure, will essentially end the platform.

“We have concerns when a platform like this puts themselves out to the public, is consciously trying to avoid US law….It’s fundamentally a lack of controls, deception, conflicts,” Gensler replied.

‘We Don’t Need More Digital Currency’

Cramer then pointed out that he couldn’t understand, after reading the Binance complaint, how value was being assigned to the crypto assets.

“In the Coinbase complaint, we note that they have, through the Coinbase wallet, you can trade 16,000 different tokens,” Gensler replied. “And there’s a lot of debate as to the use cases and where’s there any there, there. Look, we don’t need more digital currency. We already have digital currency. It’s called the US dollar. It’s called the Euro. It’s called the Yen. They’re all digital right now.

“We already have digital investments. You have entrepreneurs representing digital investments on this program all day long. Whether it’s the big tech companies, the automobile companies, you name it, it’s all digit right now, the investing world.”

Watching the interview, the above exchange was one of the moments when Gensler seemed most passionate, lending considerable weight to accusations that he is on a crusade to kill crypto and protect traditional currencies.

The agency announced the suit in a press release:

The Securities and Exchange Commission today charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency. The SEC also charged Coinbase for failing to register the offer and sale of its crypto asset staking-as-a-service program.

“We allege that Coinbase, despite being subject to the securities laws, commingled and unlawfully offered exchange, broker-dealer, and clearinghouse functions,” said SEC Chair Gary Gensler. “In other parts of our securities markets, these functions are separate. Coinbase’s alleged failures deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine inspection by the SEC. Further, as we allege, Coinbase never registered its staking-as-a-service program as required by the securities laws, again depriving investors of critical disclosure and other protections.”

“You simply can’t ignore the rules because you don’t like them or because you’d prefer different ones: the consequences for the investing public are far too great,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “As alleged in our complaint, Coinbase was fully aware of the applicability of the federal securities laws to its business activities, but deliberately refused to follow them. While Coinbase’s calculated decisions may have allowed it to earn billions, it’s done so at the expense of investors by depriving them of the protections to which they are entitled. Today’s action seeks to hold Coinbase accountable for its choices.”

The action is the latest effort by the SEC to crack down on the crypto market, having filed a lawsuit against Binance just the day before.

The agency announced the news in a press release.

“Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law,” said SEC Chair Gary Gensler. “As alleged, Zhao and Binance misled investors about their risk controls and corrupted trading volumes while actively concealing who was operating the platform, the manipulative trading of its affiliated market maker, and even where and with whom investor funds and crypto assets were custodied. They attempted to evade U.S. securities laws by announcing sham controls that they disregarded behind the scenes so that they could keep high-value U.S. customers on their platforms. The public should beware of investing any of their hard-earned assets with or on these unlawful platforms.”

“We allege that Zhao and the Binance entities not only knew the rules of the road, but they also consciously chose to evade them and put their customers and investors at risk – all in an effort to maximize their own profits,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “By engaging in multiple unregistered offerings and also failing to register while at the same time combining the functions of exchanges, brokers, dealers, and clearing agencies, the Binance platforms under Zhao’s control imposed outsized risks and conflicts of interest on investors. Those risks and conflicts are only heightened by the Binance platforms’ lack of transparency, reliance on related-party transactions, and lies about controls to prevent manipulative trading. Despite their years-long efforts to not ‘be held accountable,’ today’s complaint begins the process of doing so.”

Binance tweeted their response, disagreeing with the SEC and saying the agency’s actions are “unjustified” and that the “SEC seeks a near eradication of our industry.”

The SEC and Chair Gary Gensler has engaged in a high-profile and widely criticized campaign against crypto. One of the agency’s own commissioners has been critical of the SEC for being “hostile to crypto,” and slammed it as a “paternalistic and lazy regulator.”

Crypto mining has been criticized for its environmental impact and the strain it puts on power grids. The White House is looking for a way to address these concerns while also looking for ways to help fund Medicare, Social Security, and deficit reduction.

A proposed solution is the Digital Asset Mining Energy (DAME) excise tax, which would impose a 30% tax on crypto mining. The White House blog says the tax would help offset the harms crypto mining imposes on others:

Currently, cryptomining firms do not have to pay for the full cost they impose on others, in the form of local environmental pollution, higher energy prices, and the impacts of increased greenhouse gas emissions on the climate. The DAME tax encourages firms to start taking better account of the harms they impose on society.

Needless to say, the news is not being well-received in the crypto community. Brian Quintenz, Head of Policy at A16z Crypto — Andreessen Horowitz’s crypto arm — took to Twitter to point out issues with the proposed law.

A16z Crypto has taken its concerns a step further, writing a letter to the UK government, urging it not to follow in the US’ footsteps with a “one-size-fits-all” approach, according to Blockworks.

There’s enough opposition to the DAME Tax to put its future in jeopardy. If it does pass, however, it will quickly lead to crypto miners relocating their operations to friendlier countries.

FTX became the poster child for cryptocurrency mismanagement and risks when it announced it was short $8 billion. The response was swift, with the exchange collapsing, leaving many customers in limbo.

According to Reuters, the company has managed to recover $7.3 billion, giving hope that customers will be able to access their funds. Customers in Japan have already been able to, thanks to that country’s stricter crypto regulation.

Recovering the additional funds has also opened the door for FTX to resume operations once it’s through its Chapter 11 bankruptcy.

“The situation has stabilized, and the dumpster fire is out,” said FTX attorney Andy Dietderich.

The exchange is already talking with stakeholders about a possible return, with a decision likely as early as this quarter.

According to crypto research Molly White, FTX failed to take even the most basic security measures to protect and secure client accounts.

While nothing should surprise anyone regarding FTX, it’s still always a bit shocking when a company fails to employ basic security measures, especially when that company is involved in financial transactions.

The Shanghai upgrade is the second huge event in the network, set to take place in March 2023, and will bring different improvements to the Ethereum blockchain, the main one being the ability to withdraw staked ETH. Since the Beacon Chain was first launched in December 2020, users have contributed to the network by validating transactions, but this was a one-way trip, as funds were locked and, thus, unable to access. Below, we will discuss the Shanghai Upgrade in more detail to help you understand how this event will impact the eth coin price and the overall Ethereum network.

What will the withdrawal process involve?

Once the Shanghai Upgrade launches, around 16 million staked ETH will be available to validators. However, it’s worth noting that validators will have to wait for a specific period before they can unstake their ETH. This is because the blockchain has a single queue dedicated to full and partial withdrawals, and each slot enables only 16 partial withdrawals.

When unstaking their ETH, validators can choose between two options:

– unstake the rewards accumulated over time by creating a withdrawal credential;

– unstake all 32 ETH (the maximum allowed for every validator) by completely exiting the Beacon Chain.

Just as with the Merge, the Shanghai Upgrade requires different steps until it can go live successfully. Testnets, for example, are a great tool, as they enable the simulation of the ETH withdrawal. Zhejiang is the first testnet, which took place on February 1, followed by the Sepolia and Goerli testnets.

How will the Shanghai Upgrade benefit liquid staking?

The Shanghai Upgrade will drive innovation in liquid staking solutions. The increased frequency of staking, withdrawing and restaking of ETH rewards may lead to the development of more complex financial applications aiming to maximize yield and minimize risk. These applications could take the form of staking derivatives, allowing investors to gain exposure to staking rewards without holding the underlying asset. Moreover, as staked ETH becomes more liquid, it may be possible to develop lending solutions that provide people with access to ETH staking, further expanding the range of financial products available in the Ethereum ecosystem.

Shanghai will benefit individual liquidity providers by making it easier for users to manage their staked assets. This may increase the attractiveness of liquid staking platforms as a source of yield. As a result, liquid staking platforms will compete more aggressively for liquidity providers by offering extra incentives and features, like lower fees and more attractive rewards. This increased competition may result in a virtuous innovation cycle in the liquid staking space, creating better user experiences and more reliable infrastructure for staking ETH.

Will the Shanghai Upgrade trigger an increase in the ETH price?

The ability to withdraw rewards anytime will make staking more appealing for risk-averse investors, as they know they can access their funds even in times of market turbulence. This has the potential to increase the number of stakers. Moreover, Shanghai will incentivize ETH liquidity provision on decentralized exchanges, making the process less risky and ultimately benefiting the Ethereum ecosystem by increasing the efficiency of token swaps.

Shanghai will also make a difference in the Ethereum network by increasing decentralization. This is because stakers will be able to withdraw funds from a staking pool quickly, meaning they won’t be locked into it for a long time. This will result in a more distributed staking ecosystem, boosting the security and stability of the Ethereum network.

As this new era of unlocked ETH is getting close, crypto traders are trying to predict how the market will change after the Shanghai Upgrade. While some believe this event will increase the ETH price, others expect a bear market will follow. It’s hard to predict the outcome, and only time will tell whether this upgrade will bring massive opportunities to investors. However, the long-term effects are likely to be positive considering the above mentioned aspects, like ETH liquidity provision and improving decentralization.

Ethereum to reach new heights once all the upgrades are completed

Ethereum is the 2nd leading cryptocurrency for a reason: the token has proven reliable repeatedly, and investors love it because of its remarkable features and utility. But it isn’t flawless, and those within the Ethereum ecosystem know there is always room for improvement. After the first upgrade (the Merge) was announced, many were excited about what this change could mean in the world of cryptocurrencies. While it did change some things, there’s a long way to go until Ethereum bridges all the gaps in the crypto space. It’s a continuous process, and there’s no doubt that once all the upgrades are completed, the journey will be worth it, no matter how long and tempestuous. Once Ethereum’s scalability improves, the transaction speed will increase, and more transactions will be allowed per second. If the process is successful (and probably will be), there will be a crypto boom in the future.

The bottom line

It is uncertain how the Shanghai Upgrade will impact the Ethereum price, but one thing is clear: this event is another big step in improving Ethereum’s PoS network and making it more functional. It’s important to remember that crypto prices are volatile, and you should make investment decisions only after researching thoroughly. Losses are part of the crypto game, and sometimes they can significantly impact investors’ financial health. So, it is advisable to approach the market cautiously and use your judgment when investing in digital assets.

The tech industry and financial markets are reeling from the collapse of Silicon Valley Bank (SVB) and Signature Bank. The tech industry was particularly dependent on SVB with its collapse still sending shock waves throughout the industry.

According to Decrypt, Bitcoin is benefiting from spooked consumers and investors, with the cryptocurrency rising almost 20% since SVG’s collapse.

In fact, the entire market appears to be getting a boost, with individual cryptos up across the board.

Tesla surprised the industry with a $1.5 billion Bitcoin purchase in early 2021. The company initially announced plans to accept the cryptocurrency as payment before reversing course over environmental concerns. In the wake of the crypto crash, it appears the electric vehicle maker’s investment has taken quite the hit.

According to an SEC filing, Tesla recorded a $204 million loss as a result of Bitcoin’s price drop. Despite this, the company was able to make $64 million in profits from Bitcoin trading, leaving it with a net loss of $140 million.

For example, in the year ended December 31, 2022, we recorded $204 million of impairment losses resulting from changes to the carrying value of our bitcoin and gains of $64 million on certain conversions of bitcoin into fiat currency by us.

The SEC recently orchestrated a $30 million settlement with Kraken over its crypto-staking program. While the agency touted it as a win for investors, not everyone was convinced, including Commissioner Peirce.

“Today, the SEC shut down Kraken’s staking program and counted it as a win for investors,” Peirce wrote. “I disagree and therefore dissent.”

Commissioner Peirce then goes on to describe Kraken’s model, which allowed crypto owners to “offer their tokens up for staking,” with both customers and company profiting. She then goes on to lament that, rather than providing guidance and guidelines for such programs, the agency went into enforcement mode, claiming Kraken’s operation should have been registered with the SEC.

As Commissioner Peirce highlights, however, “crypto-related offerings are not making it through the SEC’s registration pipeline” in the current climate. She then makes the case that it would be better for the agency to put forth clear guidelines for crypto companies rather than immediately jumping to enforcement action.

“Instead of taking the path of thinking through staking programs and issuing guidance, we again chose to speak through an enforcement action, purporting to ‘make clear to the marketplace that staking-as-a-service providers must register and provide full, fair, and truthful disclosure and investor protection,'” Peirce continues. “Using enforcement actions to tell people what the law is in an emerging industry is not an efficient or fair way of regulating.”

In her most damning words of the dissent, Commission Peirce argues that Kraken’s program benefited investors and called out the SEC for shutting it down.

“Most concerning, though, is that our solution to a registration violation is to shut down entirely a program that has served people well,” she added. “The program will no longer be available in the United States, and Kraken is enjoined from ever offering a staking service in the United States, registered or not. A paternalistic and lazy regulator settles on a solution like the one in this settlement: do not initiate a public process to develop a workable registration process that provides valuable information to investors, just shut it down.”

It’s unclear if Commissioner Peirce’s dissent will have any lasting impact, especially given SEC Chair Gary Gensler’s open hostility toward crypto.

The FTX meltdown is being credited with tremendous harm to the crypto market and has led to widespread calls for greater legislation. According to The Hill, Brown told NBC’s Chuck Todd that banning was an option.

“Maybe banning it, although banning it is very difficult because it will go offshore and who knows how that will work,” Brown said

At the same time, Brown acknowledged that the crypto market represents a “complicated, unregulated pot of money.”

“So we’ve got to do this right,” the senator said, adding that he has talked to the Treasury Department to do a related assessment across regulatory agencies.