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Grayscale's Legal Win Sets Stage for First U.S. Bitcoin ETF
Polygon's Chain Development Kit Revolutionizes Ethereum, Google Cloud Digitizes El Salvador, and Binance Expands Financial Access in Latin America
Welcome to today's edition of the Coinfeeds Daily Digest, where we bring you the most groundbreaking stories from the ever-evolving world of crypto. From Grayscale's landmark legal victory that could change the future of Bitcoin ETFs in the U.S., to Google Cloud's ambitious partnership to digitize El Salvador's public services, and Binance's new payment solution aimed at financial inclusion in Latin America. Click here to explore today's trending news on coinfeeds.io.
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Grayscale's Legal Victory Paves Way for Bitcoin ETFs
Grayscale Investments, a leading name in cryptocurrency fund management, has scored a big win against the U.S. Securities and Exchange Commission (SEC). A U.S. federal court has told the SEC to take another look at Grayscale's request to turn its Bitcoin Trust, known as GBTC, into an exchange-traded fund (ETF). If approved, this could lead to the first-ever Bitcoin ETF in the United States, opening doors for more types of investors to get into Bitcoin. Plus, the change from a closed-end fund to an ETF could make GBTC shares more affordable and even reduce Grayscale's fees.
The court ruling has sent ripples of excitement through the crypto world. Bitcoin's value shot up, and so did the stock prices of companies related to cryptocurrency. After the court's decision, Grayscale got the green light to launch the U.S.'s first Bitcoin ETF, causing its own share prices to soar by 19%. Coinbase, America's largest cryptocurrency exchange, also enjoyed a 14% bump in its stock price. This is a huge step forward in making cryptocurrency more accessible to regular investors.
Polygon Releases 'Chain Development Kit' for ZK-Powered Networks on Ethereum
Polygon has released the Chain Development Kit (CDK), an open-source codebase that allows developers to build their own customizable layer 2 chains using Polygon's zero-knowledge (ZK) technology. These chains will be interconnected through a ZK-powered bridge, creating what Polygon calls the "Value Layer." The CDK aims to leverage ZK proofs and provide a seamless and functional protocol for creating, sending, and receiving value. This release comes as other layer 2 solutions, such as Matter Labs' zkSync and Starkware's Starknet, also introduce ZK-powered toolkits. Polygon has adapted to the trend of rollups and embraces zero-knowledge cryptography as a core element of its technology roadmap.
Google Cloud to Digitize El Salvador's Governance, Healthcare and Education
Google Cloud has partnered with the government of El Salvador to digitize the country's governance, healthcare, and education systems. The partnership aims to update government services, improve healthcare and education, and bring infrastructure closer to where data is generated. This marks the first Latin American government to utilize cloud technology. The partnership will span 7 years pending legislative approval and will involve digitizing projects and processes such as invoicing and permitting. The additional infrastructure will also support El Salvador's adoption of Bitcoin. The country has already integrated Bitcoin into its education system, teaching over 25,000 students about the digital asset.
Binance Launches Crypto-to-Bank Account Payment Product in Latin America
Binance has launched a new crypto-to-bank account payment solution called "Send Cash" in Latin America. The product allows users from nine countries to transfer crypto funds directly to bank accounts. Binance Pay, the exchange's native crypto payment technology platform, will enable users from Colombia and Argentina to send money to recipients with bank accounts. This move comes as Latin America faces challenges in accessing traditional banking services, with 42% of adults lacking a bank account. Cryptocurrency adoption is increasing in the region due to rampant inflation. However, Binance recently suspended its crypto debit card services in Latin America.
Crypto Bank Seba Wins In-Principle Approval to Operate in Hong Kong
Switzerland-based crypto bank Seba has received approval-in-principle (AIP) from Hong Kong's Securities and Futures Commission (SFC) for its regional subsidiary. This marks the first step towards acquiring a full license for Seba Hong Kong to deal in crypto and virtual assets-related products, as well as traditional securities. The approval is seen as an extension of Seba's global regulatory footprint, which already includes licenses from FINMA in Switzerland and FSRA in Abu Dhabi. Seba aims to support the responsible growth of the digital assets industry in Hong Kong, aligning itself with the government and financial regulators. The SFC has not yet commented on the approval. Seba was founded in 2018 and became the first digital asset company to receive a license from FINMA in 2019. It has raised nearly $250 million for global expansion, including a recent Series C funding round.
Iris Energy Buys 248 Nvidia GPUs for Generative AI & Bitcoin Mining
Iris Energy has purchased 248 Nvidia H100 GPUs for $10 million to explore opportunities in generative AI and Bitcoin mining. The company plans to use the GPUs for cloud computing and leverage its existing data centers for generative AI computing. Iris Energy operates renewable-powered mining facilities in Canada and Texas. The renewable-powered Bitcoin mining sector continues to attract investment, with Genesis Digital Assets opening a new data center in Sweden and Blockstream planning to raise funds for BTC mining hardware.
US Senator Davidson Resparks Calls to Fire Gary Gensler After Second Legal Loss
US Senator Warren Davidson has renewed calls to fire Securities and Exchange Commission (SEC) chair Gary Gensler following a second major court loss for the SEC. Davidson criticized Gensler's actions against the digital asset industry, calling them "arbitrary and capricious." The hashtag #FireGaryGensler has been trending as industry insiders express frustration with the SEC's aggressive stance towards crypto. This comes after the SEC's failed actions against the industry, including the recent denial of Grayscale's proposal. Gensler and the SEC previously lost a case against Ripple in July. Davidson had originally called for Gensler's removal in his 'Stabilization Act' in June, which aimed to restructure the SEC to a more democratic system. The article suggests that the SEC's aggressive stance towards the crypto industry is unlikely to change with Gensler at the helm.
EOS Network's Token Receives Trading Approval in Japan, EOS Surges Nearly 10%
EOS Network's token has received trading approval in Japan, leading to a surge in the price of EOS by nearly 10%. The approval was granted by the Japan Virtual and Crypto Asset Exchange Association (JVCEA), allowing EOS to be traded against the Japanese yen on regulated cryptocurrency exchanges in Japan. This approval is significant for EOS as it demonstrates their commitment to compliance and opens up new opportunities in the Japanese market, particularly within the gaming industry. Additionally, EOS Network Ventures has committed $20 million in capital to develop applications and gaming products on the network, further boosting the network's DeFi ecosystem.
Sam Bankman-Fried's Allotted Prison Tech Is Inconvenient, but Fair: U.S. DOJ
Federal prosecutors are disputing former FTX CEO Sam Bankman-Fried's claims that his access to special accommodations in prison has hindered his defense preparation. Bankman-Fried's lawyers requested an internet-enabled laptop and access to a cellblock at the federal courthouse in Manhattan, but prosecutors argue that the restrictions imposed on him are necessary due to his alleged witness tampering. Bankman-Fried currently has access to a laptop without internet connection and is allowed to work from an internet-enabled laptop twice a week. The defense's complaints about the technology provided come after Bankman-Fried's bail was revoked for attempting to intimidate former executives. Prosecutors previously complained about his use of a VPN and Google Drive while under house arrest.
SEC's Secret Binance Court Filing Has Observers Bracing for Bad News
A secret court filing related to Binance, the crypto exchange facing accusations from the SEC, has raised concerns about potential bad news for the industry giant. The SEC submitted a sealed motion in the court docket for its case against Binance, including exhibits, a declaration from an SEC trial attorney, and a proposed order. Filing court documents under seal is rare, leading to speculation about the SEC's intentions. One theory is that the SEC is trying to avoid interfering with a criminal investigation at the U.S. Department of Justice, while another suggests the SEC is concerned about putting a witness or company at risk. The filing is considered unusual and uncommon, according to a former SEC official.
As always, stay tuned for more updates in crypto!