1. SEC and FBI launch attack on cryptocurrencies
It’s been a bold week for the U.S. government as it goes too far in its crackdown on the crypto industry.
As the SEC opens fire on Ethereum, declaring it a security, ConsenSys this week launched a lawsuit to fight back against the SEC’s overreach after they disclosed that ConsenSys received a Wells Notice from the SEC, stating that Metamask is an unregistered securities exchange.
It all seems to be happening at the same time, with the FBI also issuing a warning urging Americans to only use crypto services that are registered as money service businesses under federal law, i.e. no self-custody services. The government seems to have accelerated its war on cryptocurrencies and privacy recently, with even the courts calling their actions in cryptocurrency cases a "gross abuse of power."
2. Franklin Templeton’s On-Chain Fund
Franklin Templeton, known for its laser eyes and WIF hat on Twitter, announced Thursday that it will launch an on-chain money market fund. The $380 million Franklin On-Chain U.S. Government Money Fund is now live on the Stellar and Polygon blockchains, with its BENJI token representing direct demand for government securities, cash, and repurchase agreements.
3. The US Department of Justice wants CZ to serve 3 years in prison
The legal woes of former Binance CEO CZ have escalated as the U.S. Department of Justice is pushing for a three-year prison sentence for charges of sanctions violations and anti-money laundering failures against the exchange. While CZ's defense attorneys claim ignorance of specific transactions that were flagged, prosecutors argue that his negligence led to significant compliance lapses for which he must be held accountable. In response, CZ issued a heartfelt letter of apology and expressed his commitment to correcting Binance's compliance deficiencies. Additionally, his family, friends, and influential figures, such as the former U.S. ambassador to China and members of the United Arab Emirates' ruling family, wrote him 161 letters in support of his request for a reduced sentence.
4️. Stripe announced that it will soon launch USDC payment
This week, fintech giant Stripe announced its re-entry into the crypto payments space and demonstrated support for USDC on Solana, Ethereum, and Polygon. Stripe aims to position cryptocurrencies as a viable medium of exchange by increasing transaction speeds and reducing costs — (Solana) — emphasizing its confidence in the mature infrastructure of cryptocurrencies and their potential to simplify online payments. The move marks an important endorsement of stablecoins in connecting tradfi with crypto.
5️. Renzo sees 80% decoupling
In a dramatic turn of events, Renzo’s ezETH token experienced a dramatic 80% decoupling from its intended ETH parity, highlighting the fragility of the Liquidity Rehypothecation Token (LRT). It occurred shortly after Renzo announced an upcoming airdrop, which appeared to destabilize investor confidence, causing the token to plummet and resulting in a liquidity crunch. Although prices have largely recovered since then, the decoupling highlights the inherent risks of the nascent, rehypothecation ecosystem, which in some cases is highly leveraged.
