Alpaca Finance Institutional Newsletter #25
Highlights:
- Stablecoin Cat and Mouse, Binance mints 50M TUSD
- SEC (finally) goes after Do Kwon and Terraform Labs
The swift move made by the SEC to stop Paxos from issuing BUSD left the industry wondering how Binance would react. It didn’t take long for CZ to respond with both actions and words. TrueUSD, a lesser-known and debatably less regulated stablecoin saw substantial mints by Binance sparking rumors of a deeper partnership. The onshore crypto community watching events unfold worried that this is only the beginning of actions set in motion to potentially limit the development and/or push innovation to more favorable jurisdictions. Recently, countries like the UK, Hong Kong, and UAE have set plans in motion to make Web 3 companies at the forefront of their alternative financial growth plans.
Nearly a year after the collapse of Terra, the SEC sued Do Kwon and Terraform labs for the collapse of UST. While this was mostly welcomed by the community, it is being questioned in what manner the regulatory body intends to pursue this action. One section of the lawsuit that is likely to enrage retail investors is an unnamed US trading firm that assisted in the May ’21 bailout and subsequently profited handsomely in the process to the tune of $1.28B. This unnamed trading firm on US soil is leading some to suspect that this could be the entrance the SEC uses to make the allegations stick in the now international fraud case.
News
- Binance mints 50M TrueUSD days after Paxos ordered stop issuing BUSD
- SEC sues Do Kwon and Terraform Labs for fraud
- The Bank of Japan to launch its CBDC pilot before May
- El Salvador to open a ‘Bitcoin Embassy’ in the United States
Regulation
- Sequoia Capital, Paradigm among VCs facing ‘tricky’ FTX investor lawsuit
- Celsius creditors committee proposes suing Mashinsky, other Celsius execs
- BIS-funded regulator to probe DeFi entry points like stablecoins
- UK FCA to take action against unregistered, illegal cryptocurrency ATMs
Products
- European Union discusses using zero-knowledge proofs for digital IDs
- California regulator launches complaint-based crypto scam tracker
- Conflux partners with China Telecom to develop blockchain SIM card
- Russia to roll out CBDC pilot with real consumers in April
