Bitpush's Weekly Web3 News Highlights:
[ Coinbase calls on SEC to reconsider rules on decentralized exchanges]
Coinbase Chief Legal Officer Paul Grewal said in a letter Monday that the U.S. Securities and Exchange Commission should withdraw its rule proposal that would bring decentralized exchanges under the agency’s purview and start over.
The rule, first proposed in January 2022 and reopened for comment in April, expands the definition of an exchange to include decentralized exchanges. The rule could eventually require decentralized projects to register with the agency as alternative trading systems.
In his letter to the SEC on Monday, Grewal said the commission “unreasonably assumes” that decentralized exchanges can comply with regulations in the same way as more traditional exchanges.
“Among other issues, DEXs cannot comply with the registration and disclosure requirements designed for traditional financial exchanges managed by centralized firms,” Grewal said. “Even if a DEX could somehow comply with existing registration and disclosure rules, the Commission has not explained how a DEX registered with the SEC could facilitate digital asset trading.”
The SEC has charged companies including Coinbase with operating as unregistered exchanges and last year issued a Wells Notice to Uniswap Labs, the developer of decentralized exchange Uniswap.
[The US SEC sent a letter to venture capital funds such as a16z and USV regarding Uniswap issues]
According to market news, the US SEC sent letters to venture capital funds such as a16z and Union Square Ventures regarding Uniswap issues. The US SEC issued a wells notice warning to Uniswap Labs in April this year, and may take enforcement action.
[Data: DeFi’s market capitalization has dropped to its lowest level in three years]
Data from The Block shows that DeFi dominance, which measures the percentage of DeFi market capitalization as a percentage of global cryptocurrency market capitalization, has fallen to its lowest level in three years, from 3.82% on Monday to a low of 2.84% on Friday. This is the lowest point of the index since early January 2021, just before the sharp appreciation before the "Summer of DeFi" in 2021.
Since September 2022, when DeFi dominance was around 4.8%, this figure has been gradually trending downward, with occasional small rebounds. By early 2024, this proportion had dropped to 4.47%.
[U.S. Treasury bonds rose, and PPI growth was lower than expected, supporting the Fed's active interest rate cuts]
U.S. Treasuries rose as a weaker-than-expected U.S. producer price index (PPI) report supported the Federal Reserve's more aggressive cuts in borrowing costs this year. The rise in Treasuries on Tuesday pushed the yield curve down by at least 4 basis points, with the two-year yield falling about 5 basis points to just below 4% and the 10-year yield falling to around 3.9%.
"You can breathe a sigh of relief," said Jack McIntyre, portfolio manager at Brandywine Global Investment Management, after the weak PPI report kicked off a slew of economic data releases this week. Consumer prices and retail sales data will be released on Wednesday and Thursday, respectively, and are expected to help investors assess the size and pace of potential interest rate cuts by the Federal Reserve.
[Bloomberg: After winning the antitrust lawsuit, the US Department of Justice is considering requiring Google to split up]
According to Bloomberg, the U.S. Justice Department is considering asking Google (GOOG.O) to break up after a landmark antitrust victory, and people familiar with the matter said that if the Justice Department moves forward with the split plan, the most likely units to be divested are the Android operating system and Google's web browser Chrome. One of the people familiar with the matter said officials are also considering forcing the sale of the company's platform for selling text ads, AdWords.
It is reported that Google's forced split will become the largest corporate split in the United States since the split of AT&T in the 1980s.
[Bloomberg ETF analyst: Whether SOL ETF can be passed next year depends on whether the US government changes]
Bloomberg ETF analyst Eric Balchunas told CoinDesk that whether the SOL ETF can be passed next year depends on whether the government changes.
Eric further stated: “Gensler will not stay, and the government will not choose Gensler 2.0. If the Republicans take over, anything is possible, especially since Trump has been building some kind of relationship with these people and achieving some kind of breakthrough.”
[The US government transferred 10,000 BTC related to Silk Road to Coinbase Prime, worth $593.9 million]
Arkham data shows that the US government transferred 10,000 BTC related to Silk Road to Coinbase Prime, worth $593.9 million.
Data shows that wallet bc1ql received 10,000 BTC from a US government wallet two weeks ago, and this BTC has just been transferred to Coinbase Prime deposit wallet 33J.
Analysts said deposits to exchanges typically indicate an intent to sell assets, but in this case the transfer was likely for custody reasons, as the U.S. Marshals Service, an agency under the U.S. Department of Justice, announced a partnership with Coinbase Prime last month to “safeguard and trade” large digital assets.
[Bloomberg: 701 new funds reported holding spot Bitcoin ETFs in the second quarter, and the total number of holders is close to 1,950]
According to Bloomberg, 701 new funds reported holdings in bitcoin spot ETFs following Wednesday’s deadline for filing second-quarter 13F reports, bringing the total number of holders to nearly 1,950.
Hedge funds, pension funds and banks continue to invest heavily in bitcoin spot ETFs as more traditional investors begin to embrace the asset class.
Capula Investment Management, Schonfeld Strategy Advisors and Steven Cohen’s Point72 Asset Management also reported ETF holdings. Other buyers included the Wisconsin Investment Board and corporate market makers from Hong Kong to the Cayman Islands, Canada and Switzerland.
[U.S. SEC approves the first leveraged long MicroStrategy ETF]
The U.S. Securities and Exchange Commission (SEC) approved the first long MicroStrategy ETF – MSTX. According to a press release issued by Defiance ETFs on Thursday, MSTX seeks to provide a long-term daily target exposure of 175% to MicroStrategy. MicroStrategy's stock (ticker: MSTR) has risen about 98% this year and currently trades at about $136 per share after the recent stock split.
[Agency: Strong U.S. consumer spending eliminates concerns about recession]
U.S. retail sales spending rose 1% from the previous month to $709.7 billion in July, dispelling concerns that the economy could be in a recession. Although the slowdown in hiring sparked a brief but sharp market panic last week, the strong retail data suggests that the impact of any contraction has not spread to consumers.
“The slowdown is happening, but it’s definitely measured and really nothing to be concerned about,” said Jeffrey Roach, chief economist at LPL Financial.
[Powell will have a window to set the tone for the September rate cut next Friday]
Fed Chairman Jerome Powell is scheduled to speak on the economic outlook at 10:00 p.m. Beijing time next Friday, the first full day of the Kansas City Fed's annual economic symposium in Jackson Hole, Wyoming. The annual global central bank meeting provides Powell with an opportunity to make an updated assessment of the U.S. economic trajectory and monetary policy outlook between the Fed's July and September policy meetings. Last month, he said the Fed may consider cutting interest rates at its next meeting if inflation and the labor market continue to cool.
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