SEC drops the hammer, markets quakes

Dear member,

Is crypto under attack? As though regulatory actions haven’t ramped up enough in the U.S., the SEC takes it up another notch.

We're all feeling the sting of the SEC's latest bite. The industry watchdog, never missing a beat, set its sights on Binance and its founder CZ, causing Bitcoin and 13 altcoin prices to crash. Yet, the DeFi sector largely shrugs off these 'bearish bites,' echoing the sentiment that the SEC's definition of tokens as securities may be casting a net too wide.

Though venture funding in web3 has slowed down, recent raises have ramped up, with OpenAI Sam Altman again taking center stage. Here are several recent fund raises:

This past week saw a flurry of big global brands diving into web3. From Louis Vuitton releasing NFTs to Mercedes-Benz launching an NFT marketplace to GameStop offering NFTs for the game Illuvium, it's clear that more and more big brands are warming up to web3 despite the chilly crypto winter.

While the SEC dances a regulatory tango with Binance, Binance.US, and Coinbase, a draft bill by U.S. lawmakers proposes a new agency to cut through the crypto chaos and appoint a new regulatory body to oversee crypto. Meanwhile, across the pond, UK lawmakers suggest a dedicated role to navigate the murky crypto waters.

From forecasts of a Bitcoin bull market to accusations of double standards at the SEC, these pieces serve to remind us of the multi-faceted world of crypto - where innovation, regulation, and adaptation are in a constant tug of war.

Stay tuned, stay informed, and remember - even when the SEC leads the dance, the rhythm of innovation never stops.

Best regards from the Future,
RFTF.ai 

Market Intel

Decentralized application (DApp) industry expanded by 9.97% in May, with gaming commanding 36% of all DApp activity, despite a slump in DeFi.

Bitcoin’s price dropped 5% following charges by the U.S. Securities and Exchange Commission (SEC) alleging securities law violations in Binance's BNB token sales.

80% metaverse users are using cryptocurrencies like Ethereum, Bitcoin, and USDC to purchase virtual goods and services, indicating a growing trend.

Bitcoin supply is skyrocketing amid changing regulatory frameworks in Asia. Cryptocurrency trading is banned in China, but Japan and South Korea have adopted a more flexible stance.

DeFi sector shrugs off SEC's categorization of tokens as securities. DeFi enthusiasts argue that the SEC's definition is overly broad and could hinder innovation.

Funding Trends

Illuvium secured $10 million in a seed round led by Framework Ventures. The decentralized open-world RPG game plans to utilize the funding for game development and team expansion.

Tribe Capital is eyeing a new $100 million crypto fund, focusing on early-stage crypto startups. The venture fund poured prior investments into Coinbase and OpenSea.

IQ Capital garnered $400 million for a new fund aimed at deep-tech AI firms, particularly those innovating in blockchain, healthcare, manufacturing, and financial services.

OpenAI CEO, Sam Altman, participated in a $19 million funding round for Nexus Mutual, a crypto life insurance startup, to bolster company operations and product development.

Unigrid locked in a $25 million investment commitment from Gem Digital Partners. The decentralized cloud computing platform is targeting platform development and team growth.

Argus Labs bagged a $10 million investment to enhance its security platform and expand the team. This latest round for the crypto security startup was led by Haun Ventures.

Web2 → Web3 Immersion

Mercedes-Benz has introduced Maschine, a new NFT marketplace that offers digital collectibles including artwork, music, and videos.

Louis Vuitton plans to an NFT collection named "Louis the Game," which is associated with a new video game the company is creating. The NFTs are priced at €39,000.

Swiss fintech Taurus partners with Polygon to launch a new tokenization platform, allowing businesses to tokenize their assets and issue security tokens.

JPMorgan will use blockchain technology to settle USD/FX trades in its India hub as part of its wider adoption of blockchain technology.

Apple announces launch of AR headset, set to release in 2024 that could significantly enhance gaming and the metaverse.

GameStop intends to offer NFTs for the upcoming game Illuvium, granting players access to exclusive game content.

JPMorgan collaborates with 6 Indian banks to initiate a blockchain-based interbank dollar settlement system, which is slated to run for several months.

DeFiDollar has tokenized $100 million in bonds backed by loans made to small businesses. The platform provides DeFi lending services to SMEs.

Nike teams up with EA Sports to integrate NFTs into its renowned video game franchise, allowing players to collect and trade digital sneakers.

Puma plans to release a collection of NFT sneakers in partnership with NBA's LaMelo Ball and his Gutter Cat Gang.

Regulatory Round-up

APAC

Circle has secured a payment institution license from the Monetary Authority of Singapore (MAS), expanding its service offerings in Singapore, including USDC issuance and redemption.

EU

UK lawmakers proposed a dedicated government role for streamlined cryptocurrency regulation, citing the current regulatory framework as fragmented.

International

Russian bank Rosbank rolled out a Stellar blockchain-powered crypto payments solution that facilitates businesses in making swift, cost-effective, and secure cross-border payments.

G-7 advocates stricter rules while G-20 proceeding more cautiously, signaling ongoing disagreement between the two blocs regarding the formulation of global stablecoin regulations.

LATAM

Mercado Bitcoin secured a payments license from the central bank, enabling Brazil's largest cryptocurrency exchange to extend a broader range of services, including crypto-based payments, to its customers.

US

SEC has charged Binance, Binance.US and Coinbase with operating as unregistered securities exchanges and violating anti-fraud and anti-manipulation securities laws.

Bipartisan group of US lawmakers proposed functional framework for regulating cryptocurrencies. The bill calls for a new regulatory agency to supervise the cryptocurrency industry and mandates registration of crypto businesses with this agency.

CFTC has approved the Chicago Board Options Exchange (Cboe) to offer margin trading on its crypto futures exchange, which allows investors to trade with borrowed funds, potentially amplifying gains and losses.

The Raven Also Spotted

Lawsuits by SEC surged by 183% in the wake of high-profile cases against FTX, Binance, and Coinbase, warning of continued scrutiny on unregistered crypto securities offerings.

Arthur Hayes forecasts a Bitcoin bull market due to the deteriorating US economy. The ex-BitMex CEO asserts that BTC will serve as a safe haven asset for investors seeking protection from inflation and economic uncertainty.

Ripple CEO criticizes SEC Chair Gary Gensler's anti-innovation stance on cryptocurrency, arguing that it could hinder innovation in the crypto industry. Despite this, XRP bulls remain hopeful of the SEC dropping its lawsuit against Ripple.

Only 16% Americans endorse CBDCs, Pew Research Center poll finds. 63% expressed privacy concerns associated with CBDCs.

Global investment management firm VanEck anticipates a 10x surge in Ethereum's price by 2030, based on the expectation of Ethereum becoming the dominant platform for decentralized finance (DeFi).

Billionaire Mark Cuban accuses the SEC of double standards in cryptocurrency regulation, contending that the regulator disproportionately targets legitimate crypto projects while overlooking numerous scams.