Alpaca Finance Institutional Newsletter #59
Highlights
- SEC seeks dismissal of lawsuit against Ripple executives
- Uniswap introduces 0.15% swap fee and KYC option, fueling DeFi debates
- Senator Elizabeth Warren and Legislators raise concerns over cryptocurrency’s role in terrorism financing
The SEC plans to dismiss all claims against Ripple’s CEO and executive chair in a civil lawsuit, indicating no need for a trial. The SEC’s case against Ripple itself, initiated in 2020, is not affected. Both parties will discuss potential remedies for Ripple’s violations, with a proposed briefing schedule due by November 9, 2023. Ripple considers this a “stunning capitulation,” while the SEC’s actions against Ripple began in December 2020, primarily focused on XRP token sales. In July, a federal judge ruled that XRP is not a security when sold to retail investors.
Uniswap will charge a 0.15% swap fee starting October 17 for specific tokens but exempt Ether-to-Wrapped Ether and inter-stablecoin swaps. This fee will support the development of new features. Additionally, a KYC feature in Uniswap v4 for user checks in token pools has sparked debates about DeFi regulation. The KYC option is useful for liquidity providers aiming to meet regulatory requirements. Customizable hooks are planned for Uniswap v4 by early 2024, with access restricted to governance-approved entities.
Senator Elizabeth Warren led a group of 28 senators and 76 House members in a letter expressing concern about cryptocurrency’s role in financing terrorism. They cited reports of Hamas and the Palestinian Islamic Jihad raising over $130 million in crypto donations. The letter urged immediate action to combat illicit crypto activity and posed nine questions to the Treasury and National Security Advisor. Notable crypto opponents and some without prior crypto records signed the letter. The Treasury Department’s actions against Hamas collaborators using virtual assets were also mentioned.
News
- SEC moves to dismiss lawsuit against Ripple’s Brad Garlinghouse and Chris Larsen
- KYC hook for Uniswap v4 stirs community controversy
- Elon Musk, Mark Cuban team up to contest SEC trial strategies
- Solana becomes ecosystem partner of Dubai free zone
Products
- ECB officials move to ‘preparation phase’ for digital euro
- Lightning Labs releases Taproot Assets alpha, bringing stablecoins to Bitcoin
- UAE emirate launches new free zone for digital assets, Web3 and AI
- India state refiner HPCL to use blockchain to verify purchase orders
Regulation
- Binance halts onboarding of new UK users
- South Korean regulator outlines steps to enhance digital asset legislation
- Sen. Warren, 100+ legislators write White House, Treasury about crypto and terrorism
- Council of the EU adopts DAC8 crypto tax reporting rule
Funding
- opBNB-based AI platform MyShell raises funds at $57 million valuation
- Solana-based multisig protocol Squads raises $5.7 million from Multicoin, Placeholder and others
- Elixir Protocol secures $7.5 million Series A funding at $100 million valuation
- Crypto Aid Israel raises $185K in 10 days, distributes aid to 4 organizations
