THIS WEEK IN CRYPTO

  • Binance backs Elon Musk's Twitter buyout. The world’s largest cryptocurrency exchange has committed $500 million in equity financing to Elon Musk’s buyout of the social media group. Musk raised $7.1 billion in equity finance from almost 20 investors that includes Oracle co-founder Larry Ellison as well as asset managers Brookfield, Fidelity, and Sequoia. Read more here.

  • FIFA partners with Algorand. The blockchain technology company will become the official blockchain platform of FIFA. FIFA said Algorand will provide official wallet support as well as help in developing a digital asset strategy. The simple goal here is to put the Algorand blockchain on the map as others have taken market share for decentralized finance and non-fungible token projects.

  • SEC to hire more crypto cops to fight digital frauds. The SEC said it plans to add 20 investigators and litigators to its Crypto Assets and Cyber Unit. With the addition of 20 enforcers, the SEC’s special cryptocurrency unit would have 50 lawyers and other personnel. In addition to cryptocurrency issuers and trading platforms, the unit will scrutinize newer assets such as NFTs.

  • The Government is going after crypto in 401(k)s. Fidelity's news has triggered alarms at the Labor Department, whose responsibilities include policing the nation’s 401(k) plans. Labor officials plan to speak with Fidelity executives to learn more about the product and how it is structured. Among the concerns are Fidelity’s decision to allow up to 20% of an investor’s retirement savings to be put into the Bitcoin product.

  • France grants Binance regulatory approval. Binance is now listed as a registered digital asset service provider by French stock market watchdog AMF, enabling it to offer trading and custody services for bitcoin and other cryptocurrencies. The move makes France the first major European nation to give Binance the greenlight. Changpeng Zhao, Binance’s CEO and founder, described France as very progressive in adopting crypto.

  • Crypto lender Nexo issues a $3 million NFT-backed loan. Two CryptoPunks Zombies were used as collateral for financing. It is believed to be one of the largest loans backed by NFTs in crypto history. The 60-day loan was valued at 1,200 Ether, and carries an annualized interest rate of 21%. The complex deal was issued on peer-to-peer NFT marketplace Arcade, and hedged through investment manager Meta4 Capital. Read more here.

  • Luna bolsters stablecoin reserve by raising $1.5 billion in bitcoin. In its latest bitcoin acquisition this week, the Luna Foundation Guard closed a $1 billion OTC swap with crypto prime broker Genesis for $1 billion worth of UST. It also bought $500 million of bitcoin from crypto hedge fund Three Arrows Capital. They expect to reach the $10 billion goal by the end of the third quarter.

  • New York is close to a bitcoin mining crackdown. The state of New York wants to ban new bitcoin mining operations. The bill, which is making its way through Albany, calls for a two-year moratorium on certain cryptocurrency mining operations that use proof-of-work authentication methods to validate blockchain transactions. Lawmakers sponsoring the legislation say they are looking to curb the state’s carbon footprint by cracking down on mines.

  • ApeCoin surges briefly after Elon Musk Twitter profile change. Elon Musk changed his profile picture on Twitter to an image featuring various avatars from the Bored Ape Yacht Club NFT collection. ApeCoin, the token launched by Bored Ape creators Yuga Labs, surged 19% in an hour following Musk’s profile picture change. It’s since pared back its gains.

  • California Governor signs executive order to promote crypto. California Governor Gavin Newsom signs an executive order to create a more transparent environment for crypto and Web 3. The plan is to promote crypto development while building in environmental and consumer protections. California will now collect feedback and explore opportunities before eventually creating a state-wide regulatory framework for crypto.

  • Bitcoin is ‘a liquid alternative to cash,’ says Tesla. In a recent U.S. Securities and Exchange Commission filing, Tesla Inc. reiterated its pro-Bitcoin position stating that bitcoin has “long-term potential” and is “a liquid alternative to cash.” The filing also confirmed that the electric car maker did not sell any of its bitcoin holdings since the quarter prior. Read more here.

  • Dubai crypto regulator to open an office in the Sandbox metaverse. Dubai's Virtual Assets Regulatory Authority (VARA), which seeks to promote Dubai as an international leader for virtual assets and to develop a digital economy in Dubai, announced that it plans to create a metaverse headquarters in the Sandbox. The VARA sees this as the first step toward shared learning and expertise development across global regulators.
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