tl;dr
• The EU ditches the ban on Proof-of-Work language, but may dash the use of non-custodial crypto wallets• Coinbase could close a deal to purchase Brazil's largest exchange, the $2.2B company behind Mercado Bitcoin• Meta files 8 patents regarding digital asset and metaverse technologies• Grayscale mi...
• The EU ditches the ban on Proof-of-Work language, but may dash the use of non-custodial crypto wallets
• Coinbase could close a deal to purchase Brazil's largest exchange, the $2.2B company behind Mercado Bitcoin
• Meta files 8 patents regarding digital asset and metaverse technologies
• Grayscale might just turn the tables and sue the SEC
• FINRA is weighing in on complex crypto transactions and thinks more regulation may be necessary
I seem to be fixated in regulatory actions that could have a profound effect on crypto these days. Here is what's on my mind today.
1. The EU is moving forward with their Markets in Crypto Assets (MiCA) regulations, but without the ban on Proof-of-Work clauses. This is a huge sigh of relief and removes a huge albatross. That said, the other shoe to drop is a proposed change to the Transfer of Funds regulation. The change would require financial institutions to provide additional information on the payer and payee for transactions over €1,000 are transferred. This would be a big deal considering how many people use non-custodial (unhosted) wallets. The proposal does not state how to verify non-custodial wallets and could result in exchanges halting transfers. This is a big enough deal that Coinbase has asked the crypto community to protest the proposed change.
2. It should be no surprise that Coinbase is very close to purchasing Brazil's largest exchange. A few weeks ago, I told you Rio de Janeiro was going to take steps in making crypto legal tender. Considered a crypto unicorn, 2TM is the parent company of Mercado Bitcoin. According to information from Estadão, the purchase could close as soon as next month. The purchase would be a major step in Coinbase's global acquisition strategy.
3. Meta continues to try and take over the crypto space with the filing of 8 new digital currency, metaverse trademark applications. According to USPTO Trademark attorney, Michael Kondoudis, Meta's patents span crypto tokens, blockchain software, virtual currency exchanges, financial + currency trading, digital, crypto, and virtual currencies. The only thing this says to me is they are going to wind up making a lot of enemies in people that will only see this as a move to try and take over the space.
4. In what would be a bold move, Grayscale is considering suing the SEC over grayscale's Bitcoin ETF. With over $28.5B in their Bitcoin Trust, they have been trying to convert that trust into an ETF (exchange-traded -fund) for over a year and the SEC has been dragging their feet, using delay tactics. Win or lose, it could force the SEC's hand and bring the matter to a close. With as much heat the SEC is feeling due to a string of faux pas, including this one, the move could be well-timed.
5. The U.S. Financial Industry Regulatory Authority (FINRA) is weighing in on complex crypto transactions stating, "concerns arise when investors trade complex products without understanding their unique characteristics and risks." So, they are considering further regulation to protect investors. Frankly, I would like to understand the definition of a complex transaction and the types of investors making them.