The biggest crypto news and ideas of the day |
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Welcome to The Node! This is Marc Hochstein to take you through the latest crypto news. In today's news: SEC throws in the towel on ConsenSys probe; Martin Shkreli says he's behind the Trump-themed "DJT" token; Aussie bank invests in crypto custodian. The takeaway: Age verification laws present a big opportunity for crypto-adjacent tech like ZK proofs (not cryptocurrency itself, mind you) to solve a major Internet dilemma, I argue in a forthcoming essay. Read a teaser below. |
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The price of ether (ETH) rose after Consensys received letters from the U.S. Securities and Exchange Commission (SEC) saying the regulator had ended its investigation into the technology incubator company and was not going to recommend an enforcement action against it. The SEC told Consensys, whose products include the MetaMask wallet, it was not bringing any enforcement actions in a pair of letters sent to its law firms on Tuesday. In a blog post, Consensys said the SEC was "closing its investigation into Ethereum 2.0." |
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Shkreli Says He's Behind 'DJT' token |
Martin “Pharma Bro” Shkreli said Tuesday that he was behind the controversial DJT token in an X (formerly Twitter) voice chat tuned into by thousands of people. This was days after he denied any involvement in the Trump-themed meme coin. “I have 1,000 pieces of evidence I created it with Barron,” Shkreli wrote to blockchain sleuth ZachXBT in a direct message posted by the latter. The token went viral on Monday for its supposed links to Donald Trump and his son Barron. |
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The venture arm of National Australia Bank, NAB Ventures, has invested in Zodia Custody, an institutional-grade cryptocurrency and digital assets safekeeping platform which is also backed by Standard Chartered, Northern Trust and SBI Holdings. The size of NAB's investment was not disclosed. Financial institutions have warmed to the idea of cryptocurrency custody, usually opting for some third party to manage cryptographic keys and explore use cases around trading, tokenization and so on. |
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CBDCs? Meh, Say Central Bankers |
Central bank digital currencies (CBDCs) may not be essential to achieve policy goals, according to a survey of 19 central banks in the Middle East and Central Asia region by the International Monetary Fund (IMF). The survey said that CBDCs can advance financial inclusion and lower the cost of financial services, but adopting a CBDC requires careful consideration. The survey added that easing underlying constraints, such as by improving other digital payment systems, may be a more practical alternative to CBDCs. |
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Embracing Crypto Regulation and Fun For the crypto industry to advance, embracing regulation and taking a structured approach to developing the future of finance is essential. Still, the industry must retain the internet’s inherent oddities by continuing to incorporate its playful and unconventional spirit into crypto projects. CoinW is a perfect example of a company that strikes a balance between both. While the leading global exchange continues to adopt best practices and obtain regulatory licenses in key demographics, it also leans into the fun of crypto and the internet with trading competitions and memes. Continue reading |
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The Takeaway: Age Verification Opportunity |
Several U.S. states have passed or are considering legislation that requires adult sites or social media platforms to verify users' ages, in order to protect children from harmful content. Child protection is a valid public policy goal, but age verification mandates raise legitimate concerns about privacy and free speech for adult users. Crypto-adjacent technologies such as zero-knowledge proofs and decentralized identifiers could thread the needle by enabling platforms to verify users' ages without collecting sensitive personal information. To be clear: These solutions would not involve cryptocurrency itself. They don't even require a blockchain. But they have made strides thanks to funding and R&D by the crypto industry, and they represent an opportunity for the crypto community to help solve a major dilemma for society. That's the gist of a piece I'm writing, but it's not done. For now, watch the discussion of this topic I moderated at Consensus 2024. Also relevant is Jens Groth's talk on "The ZK Moment." – M.H. |
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