Riding The Wave News Summary #65

New bill aims to give CFTC more authority to regulate crypto markets, Solana's SOL Token Holds Price Support Despite Hack, & more

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News

Table of Contents

1. Tweets

2. New bill aims to give CFTC more authority to regulate crypto markets

3. Solana's SOL Token Holds Price Support Despite Hack

4. Hackers Return $9M to Nomad Bridge After $190M Exploit

5. Ethereum Name Service Domain Registrations Hit All-Time High as Merge Approaches

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Tweets

unusual_whales @unusual_whales

BREAKING Biden signs $280B semi-conductor bill.

Blockworks @Blockworks_

A new bill that would give CFTC oversight over Bitcoin and Ether has been unveiled. The bill would deem Bitcoin and Ether as commodities.

Aylo @alpha_pls

Multi-chain thesis only takes off if someone solves the cross chain bridge security problem. Probably the greatest challenge in crypto. Only one team capable of taking this on right now imo: Chainlink (CCIP)

James Lavish @jameslavish

If you think Powell 'can't' raise rates again, he can. If you think he 'won't', he will. Remember, he is not much concerned with risk assets, he cares about debt and credit markets. As long as those are operating smoothly, his mandate remains: Lower inflation. Fast. Be ready.

shivsak @shivsakhuja

What properties make NFTs a 100x technology? A visual 🧵 👇

Level39 @level39

[THREAD] Ever wonder how the Ethereum Foundation can run Ethereum like a software company and centrally navigate its decade-long roadmap? Its secret sauce is the Difficulty Bomb💣, which coerces both miners and users into "official" upgrades. Let’s take a look at how it works. /1

NFTStatistics.eth @punk9059

Think OpenSea has a new ETH competitor. This isn’t new, OpenSea has had many competitors. But MagicEden brings a massive user base, deep success in competitive environments, great tech, massive balance sheet, and one of the hungriest teams in the space. https://t.co/mTPWl996QB

Magic Ethen 🪄 @MagicEden

To? https://t.co/jyplmcukY3

unusual_whales @unusual_whales

AT&T, $T, has said that more people are paying their phone bills late. $TMUS said similarly last week.

Nick Timiraos @NickTimiraos

Why recessions often aren't called until months after they've begun: Sometimes, the economy has already exited the downturn by the time the official announcement of a downturn has been made

wsj.comIf This Is a Recession, We Might Not Know for MonthsThe economy’s second-straight decline in output sparks debate—and the waiting game.

The Kobeissi Letter @KobeissiLetter

Housing Market Update: 1. Avg home price down 12% in 2 months, biggest in history 2. Mortgage demand at lowest since 2000 3. Housing supply up for first time since 2019 4. Home sales down 16% in June 5. 15% of all sales fell through in June The housing market party is over.

Callie Cox @callieabost

Manufacturers' new orders are falling (ie the ISM new orders gauge is < 50) A reading < 50 a sign that demand is slowing big time, and it's happened right before/during every recession since 1970

Callie Cox @callieabost

Last week was one of the busiest of the year for market headlines. Did ya miss it? No sweat, I’ll catch you up in just four tweets (& four numbers) 😘

Documenting Bitcoin 📄 @DocumentingBTC

Remember that #email 📧 was difficult to explain like #bitcoin

Mac10 @SuburbanDrone

Herein lies the problem: During the last housing bubble consumer sentiment began to diverge from rising home prices. Then when prices tanked, consumer sentiment collapsed. Bulls believe that consumer sentiment will improve when home prices collapse this time.

Blockworks @Blockworks_

NEW: 🇯🇵 Japan’s Central Bank abandons CBDC plans due to a lack of interest from the public

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New bill aims to give CFTC more authority to regulate crypto markets

Senate Agriculture Committee Chair Debbie Stabenow (D-MI) and Senator John Boozman (R-AR) are proposing a new bill that would give the Commodity Futures Trading Commission (CFTC) more regulatory authority to oversee crypto markets.

The bill would set a national regulatory standard for crypto, define which tokens would fall under the digital commodity category, and require all crypto trading platforms to register with the CFTC. Crypto players will be held to the same rules as traditional financial brokers and trading platforms that facilitate trading in commodities spot markets.

The bill amends the definition of a commodity to include “digital commodity,” which applies to some crypto tokens. Bitcoin and ether, for example, are included in the definition of commodities while securities are excluded.

The bill also introduces new categories for digital commodity brokers, digital commodity custodians, digital commodity dealers, and requires them to register with the Commission.

Under the legislation, crypto trading platforms would be required to monitor crypto trading and protect investors from abuse, and capture and publish trading information in a timely manner. Crypto brokers and dealers would be required to offer fair prices, keep records of all digital commodity transactions, create risk management systems, safeguard against cyberattacks, and provide information to the Commission upon request.

Crypto trading platforms would also have to disclose conflicts of interest and the risks of trading crypto tokens.

The bill notes crypto miners would not have to register, noting that mining activity alone is not sufficient to trigger registration as a digital commodity platform.

Regulators focusing on creating new categories instead of forcing all the new inventions crypto brings into old boxes is definitely the right path to take. In prior bill proposals, regulators were considering holding miners to the same level of KYC requirements as exchanges which clearly shows how ridiculous not making new boxes for the crypto space is.

Full Article

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Solana's SOL Token Holds Price Support Despite Hack

Solana's SOL token held on to a critical support level early Wednesday even as a multimillion-dollar hack in the platform saw several investors vent frustration, saying they would consider shorting the cryptocurrency.

The exploit saw an unknown attacker drain at least $5 million worth of SOL, SPL and other Solana-based tokens from the Phantom and Slope digital wallets.

SOL's losses appear to be muted, considering hacks and exploits have historically led to double-digit price slides in tokens associated with victim crypto platforms. Even so, the hack is terrible optics for the world's fifth-largest smart contract blockchain, which promises faster and cheaper transactions than Ethereum. Solana's several network outages in the past 12 months have already dented its appeal as an alternative to the Ethereum blockchain.

What's helping the token stay resilient? According to observers, SOL's oversold status and continued holding by large investors, or whales, seem to be supporting the cryptocurrency.

Issues like the above are part of why the crypto community pushes so hard for investors to use trusted exchanges or to set up hardware wallets instead of just digital wallets. Long-term hardware wallets protect you from getting caught by a momentary oversight that may lead to digital wallets being drained, like in this case, due to no fault of your own.

Full Article

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Hackers Return $9M to Nomad Bridge After $190M Exploit