Casa, the cryptocurrency self-custody platform, has expanded the capabilities of its Ether vaults, enhancing user privacy.
Following the introduction of a multisignature Ethereum self-custody vault to its existing Bitcoin custody service in June 2023, Casa now permits users to employ an Ethereum pay wallet as a relay for their transactions.
This development marks Casa’s commitment to providing a secure environment for users to manage their ETH holdings, enabling up to five private keys to safeguard their assets.
Previously, Casa assisted users in their interactions between ETH vaults and the Ethereum blockchain through its proprietary Casa Relay.
While this facilitated various actions, including contract deployment and transaction execution, it exposed users’ Ethereum addresses to public scrutiny via blockchain scanning tools.
To address this privacy concern, Casa has introduced the ETH pay wallet, a single-signature alternative wallet that serves as a transaction relay for vault users.
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Casa’s CEO, Nick Neuman, emphasized that gas fees and transactions originating from an ETH pay wallet would not be linked to Casa on-chain, affording users a greater degree of anonymity.
This feature was in development prior to the launch of the ETH custody vault, demonstrating Casa’s proactive approach to enhancing its services.
Nick Neuman clarified that while the ETH pay wallet enhances on-chain privacy, it does not provide the anonymity associated with certain obfuscation tools in the cryptocurrency space.
All on-chain activity remains visible, but the key advantage is the removal of the connection to Casa on-chain.
Using the ETH pay wallet does entail additional steps compared to the Casa Relay, and users are responsible for covering gas fees with their pay wallet.
However, the added privacy benefit makes it an attractive option for those seeking to prevent the linkage of their on-chain ETH addresses to Casa.
Casa’s commitment to user privacy and security is evident in its continuous efforts to improve its self-custody offerings.
With the introduction of the ETH pay wallet as a relay, Casa users now have more control over their transactions and can enjoy enhanced privacy when managing their Ethereum assets.
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The race to establish the first Ethereum exchange-traded fund (ETF) in the United States has officially commenced, triggered by recent 19b-4 filings submitted by the Chicago Board Options Exchange (CBOE).
These filings effectively set the stage for the Securities and Exchange Commission (SEC) to make a crucial decision.
On September 6th, CBOE submitted two 19b-4 applications to the SEC, seeking approval for the listing of the ARK 21Shares Ethereum ETF and the VanEck Ethereum ETF on its BZX Exchange.
This marks a significant development, as it signifies the initiation of the countdown towards a decision by the SEC.
Bloomberg ETF analyst James Seyffart took to Twitter to highlight the significance of these 19b-4 filings compared to the previously submitted S-1 filings.
He pointed out that the clock is now ticking for the SEC to make a determination, and declared that the “Spot Ethereum ETF Race is officially on.” Seyffart estimated a final decision deadline around May 23, 2024.
In the financial world, a 19b-4 form is utilized by self-regulatory organizations, like stock exchanges, to request a rule change from the SEC.
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In contrast, an S-1 filing merely indicates a firm’s intention to list a specific investment product on a national exchange.
The SEC is now obliged to review the 19b-4 filings and make a decision, although it has the authority to delay its decision, as it has previously done with spot Bitcoin ETFs.
Notably, ARK Invest and 21Shares collaborated to submit an S-1 filing to the SEC on September 6th, whereas VanEck’s S-1 filing dates back to July 2021. Seyffart anticipates that more spot Ethereum ETF filings will emerge in the coming days.
Furthermore, it’s worth mentioning that on August 17th, the SEC signaled its intention to approve Ethereum Futures investment products.
Concurrently, various firms, including Grayscale Investments and BlackRock, are actively pursuing approval for spot Bitcoin ETFs, intensifying the competition in the ETF space.
In conclusion, the race for the first Ethereum ETF in the United States has officially kicked off with the 19b-4 filings, and market participants are eagerly awaiting the SEC’s decision, which will have significant implications for the cryptocurrency investment landscape.
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The United States Attorney’s Office has firmly asserted the denial of bail for former FTX CEO, Sam “SBF” Bankman-Fried, citing concerns about potential witness tampering and the inability to ensure the safety of witnesses.
In response to SBF’s appeal against the bail revocation, prosecutors have unequivocally deemed it “meritless.”
Prosecutors contend that SBF had, on two separate occasions, either committed or attempted witness tampering in direct violation of court orders, casting doubt on his willingness to adhere to any release conditions.
The first instance of SBF’s alleged contact with witnesses came to light earlier this year, in January, when he initiated communication with FTX.US’s former General Counsel, who also serves as a potential trial witness represented by legal counsel.
The second incident occurred in July 2023 when a New York Times report exposed private journal messages belonging to Caroline Ellison, the former CEO of Alameda and an associate of SBF.
SBF’s legal representatives confirmed that he had leaked the journal himself.
Prosecutors promptly informed the District Court about SBF’s covert disclosure of Ellison’s private writings, which had the potential to discredit her and influence the jury’s perception when the case goes to trial.
On July 26, during a court conference, prosecutors sought the revocation of SBF’s bail due to his violations of bail conditions and his attempts to influence or intimidate witnesses.
Federal Judge Lewis Kaplan, presiding over the case in the Southern District of New York, revoked SBF’s bail on August 11. Prior to this, SBF had been out on bail since December 2022, posting a bond of $250 million.
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Subsequently, on August 28, SBF’s legal team appealed against the bail revocation, asserting that his communication about Ellison with the press was protected under the First Amendment. Prosecutors countered this argument by highlighting that Judge Kaplan had already considered SBF’s First Amendment rights in the original ruling.
The judge made it clear that when communication is undertaken with the intent to intimidate or influence a witness, it constitutes a crime, and the First Amendment does not protect such actions.
The prosecutors presented two primary arguments against SBF’s appeal:
First, they emphasized that the District Court’s finding of probable cause regarding SBF’s two instances of attempted witness tampering while on pretrial release was not in error.
Second, they reiterated that Judge Kaplan’s finding of probable cause regarding SBF’s attempt to tamper with Witness 1 was also not in error.
Prosecutors further pointed out that the defendant did not contest or dispute the judge’s ruling when SBF attempted to contact the former FTX.US counsel, a clear indication of his alleged intent to tamper with witnesses.
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In an exclusive interview with Cointelegraph, Senator Andrew Bragg has issued a stark warning, stating that Australian investors could face exposure to unregulated markets and risk driving investments away from the country if the Digital Assets (Market Regulation) Bill is rejected by parliament.
This caution comes in the wake of the Senate Committee on Economics Legislation’s recommendation on September 4th to reject Bragg’s bill and continue industry consultations regarding cryptocurrency regulation.
Labor Party Senator Jess Walsh, who chairs the Committee, explained the rejection in a report, citing concerns that the bill “fails to interoperate with the established regulatory landscape, creating a genuine concern for regulatory arbitrage and adverse outcomes to the industry.”
Senator Bragg expressed his disappointment with the Committee’s recommendation, emphasizing that it would “expose consumers to an unregulated market and drive investment offshore.”
He underscored the dual purpose of digital asset regulations, asserting that they safeguard consumers while also fostering market investment and activity, which is why the former Liberal government placed them on the legislative agenda in October 2021.
Bragg believes that the rejection of his bill is largely rooted in partisan politics, as several Labor Party members sit on the Senate Committee.
He criticized their decision for stalling the implementation of digital asset regulations in Australia, lamenting that Australia is now approaching the end of 2023 with no plan to enact these regulations.
However, Liam Hennessey, a partner at international law firm Clyde & Co., offered a different perspective.
He suggested that the rejection may be more related to a separate regulatory process, specifically the Treasury’s consultation paper on the government’s “token mapping” exercise.
Hennessey emphasized that the rejection of Bragg’s draft bill may not necessarily be detrimental to crypto regulation in Australia.
Hennessey explained that Senator Bragg’s bill and the feedback it received from the industry would still be considered.
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The Senate is currently dealing with a multitude of legislation, and the delay should not be overanalyzed.
He concluded that Bragg’s bill and the effort put into it would inform the government’s approach to crypto regulation.
The Australian government initiated a token mapping exercise in August, aiming to identify how crypto assets and related services should be regulated.
In February, the Treasury released a public consultation paper as a foundational step in regulating the digital asset market.
However, there has been little mention of digital assets or the broader regulatory approach since then.
Bragg introduced the Digital Assets (Market Regulation) Bill 2023 in March, intending to protect consumers and promote investors.
The bill contains recommendations for regulating stablecoins, licensing exchanges, and establishing custody requirements.
It is currently before the Senate and is expected to be voted on during the next sitting session.
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Story Protocol, a groundbreaking blockchain-based IP ownership network, has successfully closed a significant funding round, securing $54 million in investments as of September 7th.
Notably, this round saw participation from prominent figures in the industry, including 11:11 Media, owned by Paris Hilton, and the renowned venture capital firm Andreessen Horowitz, often referred to as a16z.
Story Protocol leverages the power of blockchain technology to offer content creators an effective means of managing and monetizing their creations in the face of ever-increasing AI-generated fakes.
Its primary mission is to establish itself as a robust blockchain-based repository for intellectual property ownership across various content formats, encompassing text, images, and audio.
For artists who choose to register on the platform, an array of interconnected services will be at their disposal, enabling them to license their content for diverse purposes.
Seung-yoon Lee, another co-founder of Story Protocol, anticipates a surge in remixed content generated by AI in the near future, emphasizing the pressing need for transparent provenance tracking and fair attribution—a challenge that blockchain technology is uniquely positioned to address.
The funding round was spearheaded by Andreessen Horowitz, which not only provided financial backing but also secured equity in Story Protocol, along with the option to purchase digital tokens should they be issued by the company, as confirmed by a company spokesperson.
Story Protocol also garnered support from prominent entities like Hashed, Endeavor, Samsung Next, and David Bonderman, the founder of TPG Capital.
Jashon Zhao, co-founder of the company, outlined their plans to utilize these funds for the anticipated launch slated for the first half of 2024.
In the ever-evolving landscape of the entertainment industry, combating deep fakes and copyright infringements facilitated by generative AI has become a paramount concern. Universal Music Group (UMG) has taken a proactive stance, urging streaming platforms like Spotify to be vigilant in removing content that infringes on copyrighted work.
Following this call to action, Spotify promptly ramped up its content policing efforts, actively purging any material that violated copyright regulations.
Furthermore, recent reports have unveiled negotiations between UMG and Google concerning the management of deep fakes and the optimal licensing framework for melodies and vocal tracks that can be harnessed in AI-generated compositions.
This ongoing battle underscores the critical role that platforms like Story Protocol play in safeguarding intellectual property and ensuring fair compensation for creators in a rapidly evolving digital landscape.
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Raj Gokal, the co-founder of Solana, a prominent blockchain protocol, and the Chief Operations Officer (COO) of Solana Labs, embarked on his career in the world of venture capital, focusing on high-growth tech enterprises.
Over seven years, Gokal’s primary area of expertise was health tech.
He initially delved into the realm of wearable sensors employing Bluetooth Low Energy as a wireless protocol.
Later, he took the reins of product management at Omada Health, with a mission to tackle the complexities of the fragmented U.S. healthcare system.
However, Gokal encountered challenges with health plans and regulators, prompting him to acknowledge the persistent issues within the industry.
Gokal’s journey took a transformative turn when he crossed paths with Anatoly Yakovenko, co-founder of Solana, who had a visionary plan to address scalability issues in the crypto world.
This encounter ignited Gokal’s immersion in the crypto industry, leading to rewarding experiences over the past five years.
In a recent interview with Cointelegraph, Gokal discussed various aspects of Web3, scalability, tokenization, and more.
One of the notable topics addressed in the interview was the real-world use cases of Web3.
Gokal highlighted the emergence of decentralized physical infrastructure networks, exemplified by projects like Helium and Hivemapper.
These projects demonstrated the viability and significance of leveraging low-cost, scalable blockchain technology to create innovative solutions without the need for central authorities.
Regarding the architectural considerations for building real-world solutions on layer-1 platforms, Gokal emphasized the importance of parallelized transaction processing, validation, compatibility, composability, decentralization, and battle-testing across multiple cycles.
The conversation then shifted to Solana’s initiatives in mobile and payments, including the introduction of Solana Pay and the Saga phone.
Gokal explained that these endeavors aimed to foster an accessible and open payments ecosystem while influencing tech giants like Apple and Google to embrace user-centric frameworks.
Real-world asset tokenization was another key topic.
Gokal acknowledged the immense potential of this field and mentioned initiatives like Parcl and Homebase.
He stressed the importance of creating accessible, user-friendly, and trustworthy platforms and delivering compelling narratives to users to drive adoption.
Gokal concluded by highlighting the two stages of product-market fit in the Web3 space, emphasizing the importance of earning through contributions to networks that add real-world value to users.
He acknowledged the early stage of these developments, expressing excitement for the future of the Web3 ecosystem.
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Ether’s price has experienced a remarkable 31.3% surge between March 10 and March 18, coinciding with the Federal Reserve’s intervention to address the Silicon Valley Bank’s insolvency with a $300 billion injection. Subsequently, Ether (ETH) has maintained a daily closing price exceeding $1,600.
However, concerns are now emerging regarding Ether’s ability to sustain this support level.
This skepticism arises amidst the bearish sentiment prevailing in the cryptocurrency sphere and declining metrics within the Ethereum network.
Over the last six months, the cryptocurrency landscape has been fraught with negative developments.
One prominent issue is the financial struggles of Digital Currency Group (DCG), the parent company of Grayscale mutual fund manager.
Worries are escalating that a portion of the $4.8 billion worth of ETH deposits in the Grayscale Ethereum Trust might be liquidated to address DCG’s debts.
Furthermore, two global heavyweights in the crypto exchange arena, Binance and Coinbase, are embroiled in legal disputes with the United States Securities and Exchange Commission (SEC).
Additionally, initial excitement surrounding the prospect of futures-based Ether exchange-traded funds (ETFs) in early August has waned, with these instruments differing from spot ETFs as they don’t involve actual ETH coins.
In addition to these unfavorable market conditions, Ethereum’s on-chain metrics reflect a stagnation in demand, both in terms of ETH investments and smart contract transactions.
The number of Ethereum addresses holding at least $1,000 worth of ETH deposits is at its lowest level in nearly six months, despite Ether’s peak price of $2,130 in mid-April.
Part of the waning investor interest is attributed to Ethereum’s average transaction fee remaining above $4 for the past six months.
Consequently, despite fluctuations in network staking metrics, there seems to be no increase in the total number of investors when using the $1,000 threshold as a proxy.
Furthermore, data on decentralized application (DApps) activity on the Ethereum network supports the idea of a lack of new users.
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Even when excluding the significant 60% decline in the Uniswap NFT Aggregator, the average number of active addresses across the top Ethereum network DApps has decreased by 4% compared to the previous month.
From cryptocurrency games to decentralized exchanges, nonfungible token marketplaces, and Web3 services, all sectors have seen a decline in active users, according to DappRadar.
Regarding token activity on the network, with the exception of stablecoins and Wrapped ETH, no project has recorded more than 13,000 unique receiver addresses over the past week.
This analysis underscores the current constraint of Ethereum’s network by its relatively high transaction fees, limiting active user numbers.
Without an increase in network activity, catalysts for a price recovery, such as potential network upgrades and cost reduction or improved user privacy implementations, remain elusive.
Furthermore, recent developments have disappointed Ethereum enthusiasts.
Visa has integrated Solana blockchain settlement capabilities, and Coinbase has announced plans to assist partners in converting old USDC versions to the new format, following Circle’s USD Coin (USDC) introducing native accounts and transfers on the Base chain.
Rune Christensen, co-founder of MakerDAO, has even proposed developing the project’s native chain based on Solana’s codebase, despite its previous affiliation with Ethereum.
Given the overall bearish sentiment in the cryptocurrency market, including legal challenges faced by exchanges and dwindling interest in cryptocurrencies according to Google Trends data, the likelihood of Ether’s price dipping below the $1,600 support level has increased.
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Coinbase, a prominent cryptocurrency exchange, has taken a strategic step by introducing a cryptocurrency lending service catering specifically to institutional investors within the United States.
This move is aimed at capitalizing on the significant disruptions and failures that have plagued the cryptocurrency lending market in recent times.
The platform, which offers institutional-grade services, is now accessible to U.S. investors as part of Coinbase’s existing offering, Coinbase Prime.
A Coinbase spokesperson confirmed this development on September 6, emphasizing the company’s dedication to revolutionizing the financial system and expanding economic freedom through cryptocurrency.
Under this newly launched digital asset lending program, institutional clients can opt to lend their digital assets to Coinbase under standardized terms, thereby qualifying for a Regulation D exemption.
According to documents filed with the U.S. Securities and Exchange Commission, the lending program attracted investments totaling $57 million from Coinbase customers, with the first sale occurring on August 28. By September 1, five investors had already participated in the program.
This initiative comes on the heels of Coinbase’s suspension of new loan issuance via Coinbase Borrow back in May 2023.
The previous program allowed users to borrow up to $1 million with Bitcoin (BTC) collateral.
Notably, this new institutional program operates through Coinbase Credit, the same entity responsible for managing Coinbase Borrow.
This development follows closely behind the U.S. Securities and Exchange Commission’s allegations against Coinbase, accusing the platform of offering and selling unregistered securities in connection with its crypto staking services.
These services allowed users to earn yields by staking their crypto assets with the platform.
Coinbase strongly contested these allegations and temporarily suspended its staking program in four states (California, New Jersey, South Carolina, and Wisconsin) while legal proceedings unfolded.
The cryptocurrency lending sector encountered severe challenges last year, with prominent companies like BlockFi, Celsius, and Genesis Global facing bankruptcy due to liquidity issues stemming from the 2022 bear market.
These setbacks prompted calls for the industry to address issues related to short-term assets and liabilities, emphasizing the need for valuable lessons to be learned from these failures.
Coinbase’s entry into the crypto lending arena for institutional investors reflects its ambition to offer a reliable and secure solution in a market that has experienced significant turbulence.
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The likelihood of a Bitcoin price correction descending to $22,000 is growing, driven by emerging bearish signals within BTC derivatives.
Examining the Bitcoin price chart underscores a decline in investor sentiment, attributed to Grayscale’s legal triumph against the SEC on August 29 and subsequent delays in spot BTC exchange-traded fund (ETF) applications.
Crucially, the question at hand is whether the potential for an ETF can outweigh escalating risks.
By August 18, the entire 19% post-BlackRock ETF filing rally had reversed, with Bitcoin regressing to $26,000.
Efforts to reclaim the $28,000 support faltered as optimism for an ETF approval rose following Grayscale’s favorable Bitcoin trust request.
Cryptocurrency investor morale waned as the S&P 500 closed at 4,515 on September 1, only 6.3% below its January 2022 peak.
Similarly, gold, unable to surpass $2,000 since mid-May, sits 6.5% from its all-time high, dampening Bitcoin investor sentiment months ahead of the 2024 halving.
Analysts attribute Bitcoin’s lackluster performance to regulatory actions against Binance and Coinbase, alongside speculation of a potential U.S. Department of Justice indictment against Binance for money laundering and sanctions breaches.
According to Pentoshi, potential gains from a spot ETF approval eclipse the price impact of regulatory actions against exchanges.
Yet, this analysis disregards decreased U.S. inflation (3.2% in July 2023 from 9.1% in June 2022) and the Federal Reserve’s liquidity reduction, unfavorable to Bitcoin’s inflation protection thesis.
Though Bitcoin clings to $25,000 since mid-March, derivatives data suggests testing bulls’ conviction.
Typically, Bitcoin monthly futures trade slightly above spot markets, indicating sellers demand more to delay settlement.
Presently, a 3.5% futures premium is the lowest since mid-June, pre-BlackRock’s ETF filing, revealing reduced demand for leverage buyers via derivatives.
Options markets also offer insights into investor optimism post-correction.
A bearish tone emerges, with protective put options trading at a 9% premium on September 4, contrasting similar call options.
The increasing bearish momentum in Bitcoin derivatives data, coupled with potential spot ETF approval delays until 2024 due to SEC concerns, tips the regulatory landscape in favor of bears.
The looming uncertainty surrounding potential DOJ actions and ongoing SEC lawsuits against exchanges exacerbates the situation.
In conclusion, considering the inability to sustain a positive price momentum despite elevated odds of a spot Bitcoin ETF approval, a retracement to $22,000 appears probable.
This echoes the price level observed when Bitcoin’s futures premium was 3.5%.
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