Regulation

Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you the most significant developments from the past week. The United States Department of Justice (DOJ) is on the lookout for DeFi hackers and exploiters who have stolen millions of dollars worth of assets. The DOJ’s

U.S. Republican Sen. Cynthia Lummis of Wyoming held a fireside chat with the founder and CEO of Chamber of Digital Commerce Perianne Boring during the Bitcoin 2023 event in Miami on May 19. The topics of discussion were the importance of Bitcoin to U.S. national and energy security and the upcoming legislation surrounding cryptocurrency, blockchain,

The Paraspace NFT protocol saga over the whereabouts of the protocol’s fund took another turn on May 19 as co-founder Jay Yao resigned from his position in the company. Last Week, the NFT protocol made headlines over the missing funds and a barrage of accusations by chief executives and CEO against each other. The decision

The legislation that could oblige exchanges to maintain reserves “in an amount sufficient to fulfill all obligations to customers” made it one step closer to reality in the state of Texas. The bill passed through a Senate vote and now awaits only the state governor’s signature.  On May 15, state bill 1666, amending the Texan

Crypto needs to establish itself as a “brand-new” component of traditional finance, rather than try to squeeze itself into existing financial products, suggests the CEO of crypto exchange Bittrex Global. The company’s United States arm recently filed for Chapter 11 bankruptcy, announcing it intended to return customer funds and wind U.S. operations. It added it would

Australian-based cryptocurrency exchanges have lined up to quash contagion fears after the payments provider for Binance Australia was told to offboard the exchange, though some have warned risks still loom. On May 18, Binance Australia told users that Australian dollar services were suspended after its payments partner Zepto was told by its partner firm Cuscal

Stablecoin issuers including Tether, Circle, and others have spent well over a million dollars lobbying lawmakers on Capitol Hill since the start of 2022, according to recent data. Stablecoins have become the center of attention in Washington DC recently as pressure mounts to roll out a regulatory framework for dollar-pegged digital assets. Tether uses the

A blockchain lobbying group backed by the likes of Goldman Sachs, Citi Group, Circle, and Fidelity has urged the United States Congress to pass a legal framework for digital assets or risk falling behind other nations. On May 19, the U.S. Chamber of Digital Commerce sent a call to action to Congress and the Senate

Cryptocurrency trading platform Coin Cafe has been ordered to repay $4.3 million to its users after allegedly charging “exorbitant and undisclosed fees” for storing Bitcoin on the platform — leading to some accounts being drained entirely of its funds. Based in Brooklyn, Coin Cafe initially filed an application for a virtual currency license with the

FTX’s leadership is looking to claw back more than $240 million from insiders and executives that benefited from FTX’s “wildly inflated” acquisition of stock-clearing platform Embed in September. Cointelegraph reported yesterday that a lawsuit was filed against former FTX CEO Sam Bankman-Fried and other top FTX insiders on May 17 concerning the Embed acquisition, which

A trio of speakers in attendance at Industry Day, May 18, during the Bitcoin 2023 event in Miami held a discussion on government regulation and how the cryptocurrency industry should fight back against the “anti-crypto army.” Moderated by David Zell, cofounder of the Bitcoin Policy Institute, the panel featured Perianne Boring, Founder and CEO at

State versus federal regulation was a key issue in the hearing on stablecoins in the United States House of Representatives on May 18. The House Committee on Financial Services’ new Subcommittee on Digital Assets, Financial Technology and Inclusion heard testimony from five experts as it considered two proposed bills to regulate stablecoins. There were two

Legal chatbots gather information from users, process that data, find applicable legal information and give the user advice or refer them to a qualified lawyer if necessary. Here are the general steps of how legal chatbots function: Information gathering The chatbot gathers data from the user via queries or prompts, which may include the nature

On May 10, the United States House of Representatives Financial Services Committee and Agriculture Committee held their first joint hearing on digital asset regulation. The event felt like a logical continuation of another recent hearing where representatives lambasted Securities Exchange Commission Chair Gary Gensler for perceived regulatory overreach.  The principal narrative, articulated by the hearing’s

Italy’s back and forth with the emergence of artificial intelligence (AI) continues, after lawmakers in the country announced funds for those at risk of losing their jobs to automation.  On May 15 Italian officials set aside 30 million euros ($33 million) towards the Fondo per la Repubblica Digitale (FRD) to enhance the capabilities of the

Financial services firm Wells Fargo has reached a settlement in a class-action lawsuit, agreeing to pay shareholders $1 billion. The lawsuit alleged that the bank had misled its shareholders about its efforts to resolve the 2016 fake accounts scandal. A $1 billion all-cash settlement was granted preliminary approval by United States district judge Gregory Woods

Ripple will participate in the Hong Kong Monetary Authority’s (HKMA’s) digital Hong Kong dollar (e-HKD) central bank digital currency (CBDC) pilot program by showcasing a real estate asset tokenization solution. The company will reveal its new CBDC platform at the same time.  Ripple will partner with Taiwan’s Fubon Bank and others to demonstrate equity release

Terra co-founder Do Kwon’s bail is now in question after the State Prosecutor’s Office filed an appeal against it. Kwon is still wanted for extradition by South Korea and has criminal charges to answer in the United States.  On May 17, the State Prosecutor’s Office in Montenegro’s capital Podgorica appealed against the previous decision of the

FTX lawyers are suing former CEO Sam Bankman-Fried, co-founder Zixiao Wang, and former senior executive Nishad Singh over the $220 million acquisition of stock-clearing platform Embed, alleging lack of due diligence.  According to a May 17 filing, FTX had paid $220 million to acquire Embed through its United States subsidiary after having allegedly “performed almost no due

Self-regulatory organization CryptoUK and crypto exchange Kraken UK has slammed a recent report from a panel of British lawmakers that suggested crypto should be regulated in a similar vein to gambling. In a May 17 report, the Treasury Committee “strongly recommended” that unbacked crypto be regulated as gambling due to concerns over the “significant” consumer