Bitcoin Price: US$ 63,348.88 (-0.37%)
Ethereum Price: US$ 2,646.97 (+2.56%)
More than 40 U.S. Republicans have called on the SEC to rescind Staff Accounting Bulletin No. 121, claiming it undermines cryptocurrency custody rules, weakens consumer protections, and stifles financial innovation. They argue the rule, which requires entities to report cryptocurrency holdings as liabilities, was implemented without proper regulatory consultation and poses risks to consumers. Their letter comes ahead of an SEC hearing on September 24. Meanwhile, 21.co plans to integrate Chainlink’s proof of reserves into its Bitcoin wrapper, 21BTC, to enhance security and address concerns about the backing of Bitcoin wrappers, following controversies around Wrapped Bitcoin and Coinbase Wrapped BTC. The integration aims to ensure newly minted tokens are fully backed by reserves. In another development, the Celestia Foundation raised $100 million in a funding round led by Bain Capital Crypto, bringing its total fundraising to $155 million. The foundation is developing a modular data availability layer to improve blockchain scalability by separating consensus and data availability from execution, positioning itself as a key player in data availability solutions.
Investment managers are optimistic about the U.S. debut of Bitcoin ETF options, predicting significant gains for Bitcoin holders and increased institutional adoption. The SEC recently approved options for BlackRock’s iShares Bitcoin Trust ETF. At the same time, blockchain firm Digital Asset and DTCC completed a pilot project that tokenised U.S. Treasury bonds to demonstrate faster settlement, even in cases of default, through the Canton Network. Despite China’s ban on cryptocurrencies, its mining pools still control 55% of Bitcoin’s hashrate, though dominance is shifting toward U.S. miners. China also plans to expand its Anti-Money Laundering regulations to include cryptocurrency by 2025, targeting risks from offshore exchanges and decentralised access, amid speculation that the crypto ban may soon be lifted. In August, Bitcoin miners saw their revenue drop to $827.56 million, the lowest in a year, as Bitcoin prices hovered around $25,000. This reflects continued pressure on miners globally despite a slight year-over-year increase in earnings.
BlackRock filed an amendment for its Bitcoin ETF, requiring 12-hour withdrawals from Coinbase in response to concerns over Coinbase’s onchain settlement practices. This ensures Bitcoin withdrawals to a public blockchain address within 12 hours of receiving client instructions. The move follows scrutiny of Coinbase’s Bitcoin custody for ETFs, with fears that investors were dealing with “paper BTC.” Coinbase’s CEO reassured investors that all ETF transactions are settled onchain, though some ETF addresses remain undisclosed. BlackRock’s ETF remains the largest, holding over $22.5 billion in onchain assets. In Eastern Asia, stablecoins and cryptocurrencies are replacing fiat currencies in countries grappling with devaluation and inflation. Over $400 billion in onchain value was moved between June 2024 and July 2023, largely driven by institutional investors and the rise of decentralised exchanges, particularly in regions like Hong Kong. Meanwhile, Bitcoin core developer Jeff Garzik launched the Hemi Network, introducing tunnelling technology to securely bridge Bitcoin and Ethereum. The network raised $15 million for further development, as Ethereum co-founder Vitalik Buterin predicted that cross-chain interoperability will improve with advancing layer-2 solutions.
Bitcoin is expected to rally by the end of 2024, driven by factors like the FTX payout and changes in U.S. Federal Reserve policy, according to a 10x Research report. However, investors are urged to exercise caution due to Bitcoin’s historical volatility and macroeconomic risks. In Australia, regulators are preparing to require cryptocurrency exchanges to hold financial services licenses to boost consumer protection and market integrity, though critics like Senator Andrew Bragg argue that the country is falling behind in crypto regulation. In the U.S., Vice President Kamala Harris voiced her support for crypto innovation alongside AI, signalling a possible policy shift ahead of the 2024 elections, while Donald Trump continues to engage with the crypto sector as both candidates seek support from the industry.
Source: https://cointelegraph.com
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