Crypto & Blockchain Daily Brief Sunday, June 2, 2024

President Biden has vetoed a resolution passed by the US Congress to repeal the Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act. The STABLE Act aims to regulate stablecoins and require issuers to obtain a banking charter. The resolution, introduced by US Representative Tom Emmer, sought to overturn the act, arguing that it would stifle innovation and hinder the development of blockchain technology. President Biden's decision to veto the resolution was based on concerns that the STABLE Act could have negative implications for the stability of the financial system. The administration believes that stablecoins could pose risks to the economy if not properly regulated. By vetoing the resolution, President Biden is signaling his support for increased oversight and regulation of stablecoins to protect consumers and prevent potential financial instability. The STABLE Act has faced criticism from the cryptocurrency industry, with many arguing that it would hinder innovation and limit the growth of the sector. However, proponents of the act believe that regulating stablecoins is necessary to ensure the stability of the financial system and protect consumers from potential risks associated with these digital assets. Overall, President Biden's decision to veto the resolution highlights the ongoing debate surrounding the regulation of stablecoins and the need to strike a balance between encouraging innovation and safeguarding the financial system. The future of stablecoin regulation in the US remains uncertain as policymakers continue to grapple with the complexities of this emerging technology.

Hackers targeted DMM Bitcoin, a Japanese cryptocurrency exchange, resulting in a theft of approximately $30.5 million worth of digital assets. The hack was discovered on September 7th, 2021, and the exchange immediately suspended all cryptocurrency withdrawals and deposits. The stolen funds were primarily in Bitcoin, Ethereum, Ripple, and other virtual currencies. DMM Bitcoin assured its customers that their fiat currency deposits were secure and unaffected by the breach. The exchange has pledged to compensate affected users for their losses. DMM Bitcoin stated that they are working closely with authorities to investigate the incident and enhance security measures to prevent future breaches. The exchange also apologized to its customers for any inconvenience caused by the hack. This incident serves as a reminder of the ongoing security risks associated with cryptocurrency exchanges and the importance of implementing robust security protocols to protect user funds. The DMM Bitcoin hack highlights the vulnerability of cryptocurrency exchanges to cyber attacks and the need for continuous monitoring and improvement of security measures. Users are advised to exercise caution when storing their digital assets on exchanges and consider utilizing hardware wallets or other secure storage options to safeguard their funds. Despite the breach, DMM Bitcoin remains committed to addressing the issue, compensating affected users, and strengthening its security infrastructure to prevent similar incidents in the future.

President Biden has vetoed a resolution that aimed to repeal a rule known as Security and Exchange Commission (SEC) Sab 121. This rule required companies to disclose payments made to governments for the commercial development of oil, natural gas, or minerals. The resolution to repeal the rule was introduced by lawmakers who argued that the SEC's rule was costly and burdensome for businesses. However, President Biden's decision to veto the resolution means that the rule will remain in place. The SEC Sab 121 rule was initially adopted in 2016 under the Obama administration, with the goal of promoting transparency and accountability in the extractive industries. It required companies to disclose payments of $100,000 or more made to governments for the extraction of resources. Proponents of the rule argue that it helps combat corruption and ensures that citizens in resource-rich countries benefit from their natural resources. President Biden's decision to veto the resolution to repeal the rule aligns with his administration's commitment to promoting transparency and combating corruption. By upholding the SEC Sab 121 rule, the administration is sending a message that it values transparency in the extractive industries and believes that companies should be held accountable for their payments to governments. Overall, President Biden's veto of the resolution to repeal the SEC Sab 121 rule signifies his administration's stance on promoting transparency and accountability in the extractive industries, despite concerns from some lawmakers about the rule's impact on businesses.

ARK Invest, led by Cathie Wood, has decided to withdraw its application for a spot Ethereum exchange-traded fund (ETF) with the Securities and Exchange Commission (SEC). The decision was made due to ongoing regulatory concerns surrounding cryptocurrency ETFs and the uncertainty in the regulatory environment. The withdrawal of the application comes after ARK Invest had previously filed for a Bitcoin ETF in partnership with 21Shares, which was also withdrawn due to regulatory issues. Despite the withdrawal of the Ethereum ETF application, ARK Invest remains committed to the cryptocurrency space and is continuing to explore opportunities in the digital asset market. The company is actively involved in investing in various cryptocurrencies through its ARK Next Generation Internet ETF, which holds stakes in companies involved in blockchain and digital assets. Regulatory hurdles have been a major challenge for companies seeking to launch cryptocurrency ETFs in the United States. The SEC has been cautious in approving such products, citing concerns around investor protection, market manipulation, and custody of assets. While other countries like Canada have already approved Bitcoin ETFs, the regulatory landscape in the U.S. remains uncertain. ARK Invest's decision to withdraw its application for an Ethereum ETF reflects the challenges faced by companies in navigating the regulatory environment surrounding digital assets. Despite these setbacks, ARK Invest remains optimistic about the future of cryptocurrencies and continues to actively invest in the space through its various funds.