• Bitcoin price erases FOMC gains as US dollar surges on Q2 GDP print
Bitcoin ate away at the prior day’s gains on July 27 as United States macroeconomic data produced a muted reaction.
Data from Cointelegraph Markets Pro and TradingView showed BTC price strength waning after a brief push to $29,680 into the daily close.
The largest cryptocurrency had offered a modest uptick after the Federal Reserve hiked interest rates to their highest since 2001 — a move already priced in by markets.
The day’s U.S. gross domestic product (GDP) advanced print for Q2 came in better than forecast at 2.4% annualized, pointing to inflationary pressures continuing to ebb in what could prove a catalyst for risk asset performance.
• Crypto.com registers in the Netherlands, cleared to advertise services
The platform announced that it had registered as a cryptocurrency service provider with De Nederlandsche Bank (DNB), following a comprehensive review of Crypto.com’s business and compliance with the country’s AML and terror financing prevention requirements.
As previously reported, 36 cryptocurrency-related businesses are currently registered with the Dutch central bank, with the likes of Coinbase Europe, eToro and Bitstamp notable operators that also have clearance to operate in the Netherlands.
• Binance, CZ challenge CFTC lawsuit, seek dismissal
Crypto exchange Binance and its CEO Changpeng “CZ” Zhao requested the dismissal of a lawsuit filed by the United States Commodity Futures Trading Commission (CFTC).
In a July 27 court filing, attorneys for Binance and CZ accused the CFTC of exceeding its regulatory authority and engaging in regulatory overreach. The filing states that the CFTC is attempting to regulate foreign individuals and corporations operating outside the United States, which goes beyond the limits of its statutory jurisdiction and interferes with well-established principles of comity with foreign sovereigns.
• Grayscale urges SEC to approve all Bitcoin ETFs simultaneously
Crypto fund manager Grayscale is urging the Securities and Exchange Commission to approve all proposed spot Bitcoin exchange-traded funds (ETFs) at the same time to avoid one having an advantage.
A July 27 post by Grayscale Chief Legal Officer Craig Salm said Grayscale’s legal team submitted a letter regarding eight sport Bitcoin ETF filings — including its own — arguing the SEC shouldn’t pick “winners and losers” and instead make a fair and orderly decision.
• New Optimism wallet lets users receive crypto via Twitter login
A new wallet that has launched on Optimism allows users to generate an address without storing seed words, and the account can be saved using an ordinary Twitter login. Called “Beam,” the wallet runs in a browser window and requires no downloads, according to a July 27 announcement from its developer. It also allows users to send transactions on Optimism without owning Ether.
Beam was developed by Eco, a payments company backed by Web3 venture capital firms Andreessen Horowitz, Coinbase Ventures, Founders Fund, Lightspeed Venture Partners and Pantera Capital.
• Stablecoins pose lower risk than bank deposits, says ex-Fed policy analyst
Stablecoins cannot be compared to bank deposits in terms of risk, argues a new policy paper authored by former Federal Reserve Board analyst Brendan Malone on behalf of technology investment firm Paradigm.
According to Malone, banks are exposed to so-called maturity transformation when they accept short-term deposits and use those funds to offer long-term loans that are not repaid for years. The maturity transformation creates a continuous risk for banks and requires permanent risk management.
A recent example of risks associated with maturity transformation is the collapse of Silicon Valley Bank in March. The U.S. bank reportedly had client deposits allocated to long-term assets and had to be shut down by regulators following a bank run.
Concluding Notes:
- Bitcoin price erases FOMC gains
- Crypto.com registers in the Netherlands
- Binance CEO “CZ” requested the dismissal of a lawsuit filed by the CFTC
- Grayscale urges SEC to approve all Bitcoin ETFs simultaneously
- New Optimism wallet lets users receive crypto via Twitter login
- Stablecoins pose lower risk than bank deposits
