Alpaca Finance Institutional Newsletter #55
Highlights
- Fed keeps interest rate unchanged
- Binance CEO faces more controversies
- Binance files motion to dismiss the SEC’s lawsuit against them
The US Federal Reserve keeps interest rates steady after the FOMC meeting, holding the federal funds rate at 5.25 to 5.5 percent. The Fed remains vigilant about future inflation and is prepared to adjust monetary policy if needed. Fed Chair Jerome Powell hints at a possible 2023 rate hike, pending further details during his ongoing press conference.
Binance CEO Changpeng Zhao faced two controversies: one involving a $250 million loan with BAM Management, which he clarified by stating he personally was the lender of the money and not any Binance entity, and another where the SEC questioned Binance’s use of Ceffu and Binance Custody, which CZ denied. The SEC’s concerns arose from Binance.US’s US-based asset control commitment, while Ceffu, reportedly owned by CZ, operated internationally, excluding the United States. The situation remains complex.
Binance Holdings, CEO Changpeng Zhao (CZ), and Binance.US have jointly filed a motion to dismiss the SEC’s lawsuit against them. They argue that the SEC overstepped its authority, pointing out the lack of clear crypto regulatory guidelines before the lawsuit. They claim the SEC is trying to apply regulations retroactively, reaching back to crypto asset sales from July 2017 when there was no clear guidance. Binance’s legal team also alleges the SEC misinterprets securities laws as they relate to crypto assets and seeks to distort these laws for regulatory control.
News
- Binance and CEO Changpeng Zhao ask court to dismiss SEC suit
- CZ post on X about Ceffu and Binance.US contradicts SEC claims, adds to confusion
- Malta begins public consultation on revised crypto rules to align with MiCA
- Thailand to start taxing overseas income next year, including from crypto
Products
- Citi Token Services will provide payments, liquidity to institutional customers
- Idealistic Ethereum community-built zkEVM Scroll launching in weeks
- PayPal rolls out PYUSD stablecoin to Venmo users
- Grayscale files for new Ether futures ETF
Regulation
- US lawmakers advance legislation blocking the digital dollar
- Kazakhstan establishes regulatory agency to implement CBDC
- UK House of Lords passes bill to seize stolen crypto
- Chamber of Digital Commerce launches Digital Power Network miners’ coalition
Funding
- Blockchain Capital closes funds totaling $580M for investments in crypto gaming, DeFi
- Former Andreessen Horowitz execs launch Bastion after $25M funding round
- Bitcoin Adoption Fund launched by Japan’s $500B Nomura bank
- Farmville co-creator-led company raises $33M to create Web3 games
