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SEC v Exchanges - Who will blink first? 🚨
Difference between the Binance and Coinbase SEC lawsuits. Are centralised exchanges in the US doomed? Stablecoin issuer Circle gets digital token license in Singapore. Louis Vuitton, Puma NFT buzz.
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SEC vs. Exchanges - Who Will Blink First?
Binance and Coinbase, the giants of the digital asset realm, find themselves in hot water with the SEC. But what's the difference between these lawsuits?
Binance's Web of Deception: A "web of deception" that would make even Spider-Man blush. That's the allegation made by SEC Chairman Gary Gensler against Binance, the crypto exchange behemoth. According to the SEC, CEO Changpeng Zhao orchestrated this intricate web, commingling customer funds and leaving regulators shaking their heads in disbelief.
Coinbase's Unlicensed Shenanigans: The SEC claims that Coinbase has been operating as an unlicensed securities exchange, caring more about boosting its profits than protecting the interests of investors. SEC alleges that Coinbase took on multiple roles: unregistered national securities exchange, broker, and clearing agency.
Key differences between the lawsuits
Binance's allegation involves the commingling of customer funds, a practice reminiscent of FTX's troubles.
Coinbase's violation lies in merging the functions of brokers, exchanges, and clearing agencies, typically separated in securities markets.
Binance's CEO, Changpeng Zhao, takes centre stage in the SEC's complaint, mentioned nearly 200 times.
Coinbase's CEO, Brian Armstrong, is only mentioned once, indicating a different level of direct involvement.
Allegations of fraud
Binance faces severe allegations, including fraud, as the SEC accuses the company of a "web of deception."
Coinbase's complaint doesn't involve fraud but focuses on the violation of securities laws through unlicensed operations.
Treatment of customer funds
Binance is accused of commingling billions of dollars of customer funds in a bank account controlled by Zhao.
The SEC's complaint against Coinbase doesn't allege the commingling of funds but rather the merging of different functions.
Who's more hurt? while the allegations against Coinbase are no laughing matter, the complaint against Binance packs a heavier punch. It even gives a shout-out to Binance's CEO nearly 200 times in the complaint's 136-page extravaganza.
In the Binance lawsuit, the SEC has its eyes firmly fixed on CEO Changpeng Zhao. The allegations go a step further, claiming that billions of customer funds found their way into a bank account controlled by Zhao.
Now, introducing the judges who will determine the fate of these crypto giants
Judge Jennifer H. Rearden
Meet Judge Rearden, a recent addition to the judicial scene. Nominated by President Joe Biden, she stepped into the spotlight with a bang! But wait, she's no stranger to the crypto world. In a previous crypto-related case, she pulled the emergency brake on a massive $1.03 billion deal between Binance.US and Voyager Digital.
Judge Amy Berman Jackson
With an impressive background, including a Juris Doctorate from Harvard Law School, she's tackled some of the most politically charged disputes of recent times. From sentencing former advisers of ex-President Donald Trump to blocking a deposition involving Trump himself, she's faced the heat! While she may not have dabbled in crypto cases before, her experience and legal prowess make her a force to be reckoned with.
The bird view
All these rules and lawsuits might totally change the crypto game. The SEC wants to reshape everything, and exchanges like Coinbase and Binance are caught in the middle. Some say it'll bring the downfall of the U.S. crypto industry, while others think it's the dawn of decentralised finance.
The crypto industry loves its privacy and freedom, so these reporting rules are like a big party pooper. Plus, blockchain technology makes disclosure a total disclosure.
Now, regulations are important, but crypto has its own way of protecting customers and keeping things safe. It's all about equal access, irreversible transactions, and catching bad guys when needed. Blockchains are basically like superheroes for authorities.
TTD Circle 🟢
Circle Singapore just achieved a major milestone 🚀
They have obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS).
Here's the deets
The license allows Circle Singapore to offer digital payment token services, cross-border money transfer services, and domestic money transfer services.
Circle Singapore's products and services, including the Circle Account, provide institutional customers access to USDC, a digital dollar stablecoin.
This achievement solidifies Circle's reputation as a responsible digital financial technology company and a trusted operator in the emerging global financial system.
Circle Singapore can now leverage its corporate affiliates' expertise to drive innovation and expand its offerings, benefiting clients and stakeholders.
Regulated dollar digital currencies like USDC support the growth of responsible digital assets, blockchain, and web3 ecosystems.
Singapore plays a vital role in Circle's global expansion and mission to promote global economic prosperity through frictionless value exchange.
Dante Disparte, Circle's Chief Strategy Officer, sees the MPI license as a significant step forward for financial infrastructure and dollar digital currencies in the region.
Circle Singapore has been making strides in the city, including opening its office, collaborating with Tribe, and receiving In-Principle Approval as a Major Payment Institution License holder from MAS.
TTD Blockquote 🔉
"Black Mirror" creator Charlie Brooker
“I’ve toyed around with ChatGPT a bit,"
Looks like ChatGPT failed to live up to the mastermind behind the chilling tales of technology gone wrong.
Brooker had some choice words for OpenAI's ChatGPT. Apparently, Brooker decided to put the AI chatbot to the test by asking it to generate an episode script for his iconic sci-fi show. But instead of delivering a gripping new story, ChatGPT decided to serve up a mishmash of old "Black Mirror" episodes in a lacklustre attempt at creativity.
"It comes up with something that, at first glance, reads plausibly, but on second glance, is shit."
While Brooker may not be convinced of ChatGPT's screenwriting skills, others in the industry are intrigued by the possibilities of AI-generated content. Actress and computer scientist Justine Bateman even proposed training an AI program on an existing TV series to create an additional season.
But, screenwriter and TV producer Josh Friedman voiced his worries, emphasising the need for proper creative screenplay material rather than relying solely on AI-generated content.
TTD NFT 🐝
Louis Vuitton's "Treasure Trunks" NFTs
Louis Vuitton to launch limited series of NFTs called "Treasure Trunks."
NFTs priced at around $41,712 each, unlocking exclusive products and experiences.
Comes with a matching, made-to-order physical Louis Vuitton trunk.
Only residents of select countries eligible to register on waitlist.
Selected registrants invited to purchase with cryptocurrency or fiat.
Part of Louis Vuitton's ongoing series called "Via."
Puma's "GutterMelo MB.03" NFT Sneakers
Puma partners with LaMelo Ball and NFT project Gutter Cat Gang.
Limited edition sneakers titled "GutterMelo MB.03" to be released as NFT collectible.
NFT can be redeemed for physical sneakers during specified dates.
Sneakers feature colourful heat map effect and unique inscriptions.
Collaboration follows Ball's previous launches of Ethereum-based collectibles.
Proof of Talk Web3 Summit
Exclusive Web3 summit, Proof of Talk, to take place in Paris.
Aims to restore trust in the Web3 industry through open discussions and collaboration.
Gathering of thought leaders, CEOs, founders, influencers, legal experts, and regulatory authorities.
Features an exhibition called "At first glance — À première vue" with 12 digital artists.
Exhibition showcases blockchain and new technologies in inventive ways.
TTD Surfer 🏄
Argus Labs raises $10 Million for Ethereum layer-2 network of gaming blockchains; gamers can code their own on-chain mods on World Engine.
GameStop fires CEO Matt Furlong who oversaw retailer's NFT push, and has promoted Ryan Cohen to executive chairman. GameStop Fires CEO.
The Arbitrum blockchain suffered from software bug on June 7, causing the network to stop processing transactions on-chain for several hours.
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