• The US SEC issued a Wells Notice to Coinbase for allegedly selling unregistered securities on its exchange.
• Brett Quick from the Crypto Council for Innovation sees potential in the warning, as it could lead to more defined rules for the crypto industry.
• There is a risk that crypto companies may move outside of the US due to lack of regulatory clarity.
SEC Warning Gives ‚Silver Lining‘ For Crypto Industry
The U.S. Securities and Exchange Commission (SEC) has recently issued crypto exchange Coinbase a Wells notice, warning that they may face enforcement action over potential violations of U.S. securities law. Brett Quick, Head of Government Affairs at Crypto Council for Innovation, believes this may be beneficial in terms of providing clearer regulations for the future of digital-asset firms.
Potential Clarity Of Regulations
Quick believes that while there is a chance that crypto companies may simply move outside the U.S., there is an opportunity here to provide clarity regarding regulations within the crypto industry; “The silver lining, to the extent there is one of this type of development, is that it will force the establishment of case law that will inform how crypto is regulated and it will set some rules of the road for crypto to comply with,“ she said in an interview with CoinDesk TV’s “First Mover” program on Thursday .
In response to receiving this notice from the SEC, Coinbase released a blog post stating they have met with their regulators numerous times and are committed to continuing dialogue and engagement as they work towards compliance with applicable laws and regulations; “We take our obligations seriously and have invested heavily in both technology and compliance capabilities over our decade long history.“
Risk Of Companies Moving Abroad
Despite Quick’s optimism surrounding this event, she also acknowledges there is still some risk involved if companies decide not operate under any set regulations; „There are other jurisdictions around the world that are looking at ways to embrace the technology, to embrace the innovation and the developers that are working on it and they’re establishing regulatory clarity,“ she said in her interview with CoinDesk TV’s ‘First Mover‘.
Crypto Industry On The Cusp Of Change
Overall, this recent incident involving Coinbase marks what could be potentially groundbreaking change within not only cryptocurrency exchanges but also many associated industries; With careful consideration from both sides we can expect further developments soon which could help shape what kind of regulations are implemented across all aspects related to cryptocurrency trading.
• CoinDesk features reporter and assistant opinion editor Daniel Kuhn interviews Emmy award-nominated photographer John Knopf about his early days of Bored Apes, digital culture, using crypto to turn an industry into a community, and FOTO – the collective he founded for training artists to work in Web3.
• FOTO boasts hundreds of members of amateur and professional artists today, who are curated by Knopf to exhibit at sponsored galleries and events.
• Time magazine partnered with FOTO on its own NFT drops in 2021, while Knopf’s work has also been featured in other notable outlets.
Taking Photos and Minting NFTs at the Ends of the Earth
CoinDesk’s Daniel Kuhn interviews Emmy award-nominated photographer John Knopf about his early days of Bored Apes, digital culture, using crypto to turn an industry into a community, and FOTO – the collective he founded for training artists to work in Web3.
FOTO: Elevating Digital Art Through Community Training
Knopf curates members‘ art from FOTO to exhibit at sponsored galleries and events. The idea is to elevate digital art; Knopf makes „no money from the artists whether their work sells or not.“ In 2021, Time Magazine partnered with FOTO on its own NFT drops.
National Geographic Acknowledgements
Knopf has worked as a landscape photographer for National Geographic since 2016. His work has been featured in other notable outlets such as The New York Times Magazine, The Washington Post Magazine and BBC Culture.
The Promise of Cryptocurrency
Knopf came into crypto during the heady days of the NFT bull market thinking he could make a „quick buck,“ but quickly became enthralled with the potential of distributed networks. He believes that Web3 is all about elevating one another and working to advance the art form.
John Knopf is an inspiring example of how cryptocurrency can be used to create meaningful communities around art forms like photography. His commitment to elevating digital art through his projects is commendable – making this medium more accessible than ever before!
• Rune Christensen, the founder of Ethereum’s MakerDAO, called for a rebranding of DAI stablecoin in order to make it more understandable for “normal people.”
• During a call to discuss MakerDAO’s decentralization plan (called „Endgame“), Christensen said that bad branding could be slowing the growth of DAI and suggested changing its name to include “USD.”
• He also proposed a complete rebrand, new name, look and approach to user acquisition in order to take control of the narrative.
Rune Christensen Calls for Rebranding of DAI Stablecoin
FinanceMakerDAO Founder Rune Christensen said on a call with community members that DAI suffers from bad branding that could be slowing its growth. He proposed a complete rebrand, new name, look and approach to user acquisition in order to take control of the narrative and make it more understandable for “normal people.“
Why Change The Brand?
DAI is the fourth-largest stablecoin with a market cap near $5 billion – and the only top stablecoin backed by a basket of assets. According to Christensen, this means that bad branding may be preventing its growth as potential users may not understand what it is or how it works. He believes that a change in name should reflect this use case by including “USD” so people know it is pegged against the US dollar but there is no guarantee such peg would hold.
„Endgame“ Plan For MakerDAO
The discussion about rebranding came amid a broader debate about Christensen’s „Endgame“ proposal for MakerDAO which he admitted few understand. This plan involves making DAI into more than just an asset but instead positioning it as something users can generate yield with while also being seen as „the safest and most reliable gamified crypto of all.“
The initiatives put forth by Christensen involve creating an entirely new brand identity which includes changing both its name and look as well as introducing different approaches towards user acquisition. His argument was that such steps are necessary if they want their message to reach out beyond their current audience and attract more people into using their product.
By taking these steps, MakerDAO hopes to make their product more attractive and easier for people who are unfamiliar with cryptocurrency products so they can better understand them without feeling overwhelmed or intimidated by all the technical jargon surrounding them. With such initiatives in place, there is potential for DAI stablecoin’s growth rate increase significantly once again within the crypto marketspace.
• Bitcoin miners are starting to emerge from the brutal crypto winter, which saw several bankruptcies and fire sales.
• The rally in bitcoin’s price is providing some relief for the miners, although they may not be completely out of the woods yet.
• Lower energy costs have also given miners some breathing room, with shares of publicly traded bitcoin mining firms outperforming BTC so far this year.
Bitcoin Miners Emerge From Crypto Winter
The bitcoin mining industry appears to be getting back on its feet after a long crypto winter that saw major bankruptcies and fire sales. Even though mining economics have improved only marginally as bitcoin trades above $20,000, capital is starting to flow into the sector once again. Meanwhile, lower energy costs in the last few months have also given miners some breathing room. Shares of publicly traded bitcoin mining firms have outpaced bitcoin this year, with Core Scientific (CORZQ), Digihost and Cipher Mining (CIFR) leading the pack with 693%, 225% and double digit percentage growth respectively.
Investor Sentiment Driven by Price Action
„This shows that investor sentiment is still largely driven by BTC price action rather than mining fundamentals,“ Ethan Vera, chief operating officer at Luxor Technologies – a crypto mining-services firm – said. A composite index of public mining rig manufacturers, foundries and miners compiled by Luxor is up by 52% so far this year compared to bitcoin’s 44% rise. However, stock prices still have a long way to go compared to where they were last year before the crypto winter hit hard.
Reasons for Improved Prospects
The rally in bitcoin’s price is providing much needed relief for miners who are trying to survive in an increasingly competitive environment where survival depends on economies of scale and access to cheap electricity sources. Lower energy costs in recent months has also helped give miners some breathing room as they look towards more sustainable operations going forward.
Publicly Traded Bitcoin Mining Firms Outperforming BTC
Shares of publicly traded companies active in the space have significantly outperformed BTC so far this year: Core Scientific (CORZQ) has seen its equity grow 693%, followed by Digihost whose shares have risen 225%. Meanwhile shares of Cipher Mining (CIFR), DMG Blockchain (DMGI), Bitfarms (BITF), Iris Energy (IREN) and Bit Digital (BTBT) all doubled or more during the same period.
While there are signs that things may be improving for Bitcoin miners after a brutal market downturn last year, it remains unclear whether they will return to their pre-winter levels any time soon as investor sentiment continues to be largely driven by price action rather than underlying fundamentals such as access to cheap electricity sources or economies of scale advantages over competitors.