April 26, 2023

The biggest crypto news and ideas of the day

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It’s the first day of Consensus!

This week is Consensus, CoinDesk’s biggest event of the year, featuring panels, workshops, keynote speakers, fireside chats, networking and more, all exploring the evolution of digital finance and blockchain technology. The Node will bring the best of Consensus to your inbox in special morning and evening editions from Apr 26-29. You can register to attend or livestream Consensus here.

In the news: Circle may be bared from accessing a prized Fed system. Binance.US terminated its $1 billion deal with Voyager Digital. And Ethereum projected to use less power than the Eiffel Tower this year.

The takeaway: The Blockchain Association CEO Kristin Smith discusses the U.S. regulatory outlook.

– Daniel Kuhn

Finding Consensus

9:50-10:10 a.m. – A 10-Year Rollercoaster Toward A New Model of Money

Circle CEO Jeremy Allaire will recount the decade-long history of Circle, which started off as a peer-to-peer payments technology company, moved into bitcoin and finally found product-market fit as a stablecoin issuer.

10:40-11:10 – Here Comes Everybody: Consumer Web3 Is Having Its Moment

Pepsi executive Kate Brady and Vice President of Product at OpenSea Shiva Rajaraman sit down with Amanda Cassatt, the ConsenSys alum turned consultant who literally wrote the book on Web3 marketing.

1:20-1:40 p.m. – Franklin Templeton CEO on Playing the Long Game

Institutions are still interested in crypto...just ask the chief executive of one of the largest global investment firms, Jenny Johnson, chief executive of Franklin Templeton.

4:45-5:15 p.m. – What Will History Say About This Moment in Web3?

Ownership economy legends Kevin Rose and Bobby Hundreds, who both have storied careers before Web3, talk crypto bubbles and stablizing growth.

6:00-8:00 p.m. – Nakamoto Forum Debate Series

A Consensus side event for all the bitcoiner or bitcoin-curious attendees, at 601 Congress Avenue, Suite 250. RSVP here.

With the Virtual pass, you can tune into Consensus 2023 from anywhere in the world to hear industry leaders explore all aspects of crypto, blockchain, Web3 and the metaverse. Learn more and register.

Squaring Circles

The Federal Reserve Bank of New York has redefined who can access its $2.3 trillion reverse-repurchase program (RRP) Wednesday in a way that could prevent stablecoin issuer Circle from accessing the prized Fed facility. In particular, the Circle Reserve Fund seems to fall afoul of the updated rules, which will “generally” bar funds organized around a single beneficiary owner, according to a press release. Circle’s goal for the fund was to gain access via BlackRock to the Fed’s RRP, Circle chief financial officer Jeremy Fox-Geen said in an interview with CoinDesk in November.

Dead Deal

Bankrupt crypto lender Voyager Digital said it received a letter from Binance.US terminating a planned $1 billion asset purchase, days after the deal largely received government approval. Voyager, the bankrupt crypto lender, tweeted Tuesday the move was “disappointing.” Binance.US said the decision is due to the "hostile and uncertain regulatory climate in the [U.S., which]...introduced an unpredictable operating environment.”

Powering Down

Ethereum’s energy consumption from the blockchain's inception in 2015 until it moved to a proof-of-stake (PoS) consensus mechanism late last year is about equal to that used by all of Switzerland in just a year, according to new research from the University of Cambridge’s Centre for Alternative Finance (CCAF). Further, the CCAF, known for estimating the Bitcoin network’s energy consumption, said Ethereum is on track to only consume 6.56 GWh of electricity annually, or about as much as it takes to run the Eiffel Tower.

The Takeaway: Regulatory Agenda

For years the U.S. crypto industry has been demanding regulatory clarity from policymakers. And the Blockchain Association CEO Kristin Smith has been at the forefront of that charge. Today, few could say U.S. regulators and legislators are being ambivalent about crypto – even if they haven't exactly figured out how to treat this nascent industry.

CoinDesk sat down with Smith ahead of Consensus 2023 to get her thoughts on the current regulatory moment, the policies crypto needs and life as a lobbyist on the Hill.

What do you make of the term Operation Choke Point 2.0, coined to describe a seemingly coordinated effort among various U.S. government agencies to dislocate crypto from the wider economy?

Blockchain Association is currently investigating claims of crypto de-banking, launching a tipline – debanked@theblockchainassociation.org – and asking industry participants to come forward with stories. We’re committed to discovering the truth about these allegations.

Do you think we could expect to see comprehensive crypto regulation in the U.S. this year or in the coming years?

The industry will likely have to wait 18-22 months to see real movement. However, we are still in a period of great opportunity to continue educating and laying the foundation for a strong regulatory future.

Could you give us an inside view into your work in Washington D.C., are you finding it easier to engage with policymakers these days?

Policymaker education is critical – and that’s our top priority at Blockchain Association. We have found that many policymakers are open to learning more about the technology and we believe that greater acceptance will come as people become more knowledgeable about the space.

What does Sen. Elizabeth Warren's anti-crypto army say, if anything, about the role crypto will play in the coming election cycle?

The Senator has embraced the term “anti-crypto” when describing her critical views of the space. However, her views rarely reflect that of the mainstream, even within the Democratic party. Advocates are already pushing back in preparation for the next election cycle. Blockchain Association is building a pro-crypto army, and continues to educate willing policymakers.

In a word, how would you describe your outlook regarding crypto policy in the U.S.?

Bright.

– D.K.

@danielgkuhn

daniel@coindesk.com

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