Today’s News Tips: US SEC abandons investigation into PAXOS and determines that BUSD is not a security
US House fails to override Biden's veto of SAB 121-related resolution
US CPI drops sharply in June
Problems with domain name registrar Square Space put hundreds of crypto project domains at risk of attack
Coinbase launches “one-stop” crypto app that supports connecting multiple wallets
Coinbase International will launch perpetual futures trading for CRV, ENS and PEOPLE
The market value of the seven largest technology companies in the U.S. evaporated by nearly $600 billion overnight, about 4.35 trillion yuan
OpenAI develops a five-level classification system for AI, and is currently approaching the second level "reasoner"
Regulatory News
US SEC drops investigation into PAXOS, determines BUSD is not a security
According to Fortune magazine, the U.S. Securities and Exchange Commission has decided to end its investigation into New York-based stablecoin issuer Paxos, determining that BUSD is not a security. On July 9, Jorge Tenreiro, acting director of the crypto assets and networks division, said in a letter to Fortune that he had no intention of recommending enforcement action. More than a year ago, the Securities and Exchange Commission issued a Wells Notice, or a notice of impending enforcement action, to Paxos for the dollar-backed BUSD stablecoin issued by Paxos in partnership with Binance.
US SEC Allows Some Companies to Circumvent Controversial Cryptocurrency Accounting Guidance SAB 121
According to The Block, the U.S. Securities and Exchange Commission (SEC) allows certain companies to circumvent the controversial cryptocurrency accounting guidance SAB 121 if they meet certain procedural and technical conditions. Since the release of SAB 121 in March 2022, some companies have consulted the SEC on how to develop new cryptocurrency policies and procedures. SAB 121 requires companies that hold cryptocurrencies to record customer cryptocurrency holdings as liabilities, sparking widespread controversy in the industry. Recently, sources within the SEC said that some companies have been exempted by proving that their procedures and technology can allow customers to retrieve cryptocurrencies in the event of bankruptcy. These companies have demonstrated control over their assets, just like traditional assets, ensuring that the accounting and protection measures for assets meet the requirements.
US House fails to override Biden's veto of SAB 121-related resolution
According to CoinDesk, the U.S. House of Representatives voted on Wednesday on whether to overturn President Joe Biden's veto of SAB 121-related resolutions, but failed to pass, and the U.S. Securities and Exchange Commission's cryptocurrency accounting policy remained unchanged. Rep. Maxine Waters, one of the core Democratic negotiators for cryptocurrency legislation, said that the U.S. Securities and Exchange Commission (SEC) and the banking industry are negotiating on changing controversial accounting policies.
It is reported that SAB 121, which was first issued in 2022, has caused controversy over the past year. It requires cryptocurrency custody companies to record cryptocurrencies held by customers as liabilities on their balance sheets. The crypto industry is concerned that this move may prevent banks from protecting digital assets.
US CPI drops sharply in June
The U.S. unadjusted CPI annual rate in June was 3.0%, far below the market expectation of 3.1%, and fell sharply to the lowest level since June last year. The seasonally adjusted CPI monthly rate in June was -0.1%, the first negative value since May 2020.
Russia's Ministry of Finance proposes to allow limited cryptocurrency trading for certain qualified investors
According to Beincrypto, the Russian Ministry of Finance has proposed allowing a limited number of "specifically qualified" investors to trade cryptocurrencies on exchanges. The response drafted by the ministry is aimed at two proposed laws that aim to regulate cryptocurrency mining and digital currency settlements under an experimental legal framework. Specifically, the ministry proposes to allow all foreign economic activity (FEA) participants to use digital assets for settlement in accordance with general regulations, which means that digital assets need to be recognized as having monetary value. As an experimental measure, the ministry further proposed that cryptocurrency trading be allowed only on exchanges and platforms listed in the official register and that cryptocurrencies be considered commodities. However, the document does not specify the criteria for classifying these investors. Essentially, the ministry's hope is that the authorities will be able to approve all foreign economic activity participants to use digital currencies for settlement. But at the same time, it also seeks to limit cryptocurrency purchases on Russian exchanges to a selected group of investors who are considered "particularly qualified." It is worth mentioning that the register includes major exchanges such as the Moscow Exchange, the St. Petersburg Bank Exchange, and the St. Petersburg International Commodity Exchange (SPIMEX). Anatoly Aksakov, chairman of the State Duma Financial Markets Committee, stressed that Russia's largest exchanges will be able to support cryptocurrency trading immediately if the necessary legal conditions are established. The Russian Central Bank has long been against any form of crypto assets. Under current laws, Russian residents cannot use cryptocurrencies for payments. Although the purchase of cryptocurrencies on foreign exchanges is not explicitly prohibited, the turnover of digital assets within Russia is still in a "gray area". However, changes in the external environment are gradually forcing regulators to reconsider their stance. Previously, there have been proposals to legalize stablecoins for international settlements. Experts believe that this move is expected to simplify transactions between BRICS countries and mitigate the impact of Western sanctions on Russia.
Biden's campaign funds are "cut off" and he is in a "catastrophic" predicament
According to a report by Reference News citing the website of the National Broadcasting Corporation of the United States, sources said that the campaign of US President Biden has faced the problem of reduced donations and the situation is extremely dangerous. The report said that one of the sources said: "The situation is catastrophic." Another source said: "The source of funds has been cut off." Two other sources said that this month, Biden's campaign fundraising from big donors may be reduced by half or even more. A source said: "Donors are very negative. They talked to the president. The call seemed unnatural to people, and I don't think they believe him." According to reports, the US media unanimously agreed that Biden performed poorly in the first debate with Republican Trump in Atlanta on the evening of June 28. Now, politicians and reporters are saying that Democrats may refuse to nominate Biden and replace him with other candidates. In theory, the party will have such an opportunity at the August convention, but in reality, it is difficult for Biden, who won the primary election, to withdraw from the campaign unless Biden gives up himself. At the same time, the current president's campaign team said that Biden will not give up and withdraw from the campaign. There are reports that he could be nominated as early as July 21, rather than waiting until the Democratic convention in August, ending the debate over whether he should run. The second debate between Biden and Trump is scheduled for September 10. The US presidential election will be held on November 5.
AI
OpenAI develops a five-level classification system for AI, and is currently approaching the second level "reasoner"
According to Bloomberg, OpenAI has developed a five-level classification system to track its progress in building artificial intelligence software that surpasses human capabilities. OpenAI CEO Sam Altman expects that general artificial intelligence AGI may be achieved within this decade. Currently, OpenAI is at the first level, AI capable of conversation, and is approaching the second level "Reasoners", which has basic problem-solving capabilities at the human doctoral level. The third level is called "Agents", which refers to AI systems that can perform multi-day tasks under the instructions of users. The fourth level is AI that can come up with new innovations, and the highest level, the fifth level, is "Organizations", which is an AI system that can perform organizational work.
Project News
Celer Network: The domain takeover attempt has been successfully blocked and all DNS records have been restored
Celer Network, a cross-chain interoperability protocol, said on X Platform: “Thanks to our 24/7 domain security monitoring, a takeover attempt on the Celer domain was successfully blocked. All DNS records have been restored. Our ongoing investigation indicates that the attack vector may involve a third party that we have no control over. The Celer team will continue to monitor the situation closely and provide updates when we know more.”
Updated list of domains at risk of attack due to Square Space: including Litecoin, Aptos Labs official website, etc.
PANews reported on July 12 that the founder of DefiLlama updated the list of projects related to the domain name registrar Square Space that are at risk of attack. In addition to the 103 domain names listed previously, the newly listed domain names include syncbond.com, gyro.money, rvrs.app, tempus.finance, rare.fyi, ferrum.network, looksrare.org, ratio.finance, opulous.org, nftearth.exchange, pxswap.xyz, aptoslabs.com, unifiprotocol.com, foundation.app, florence.finance, near.org, safe.global, mantadao.app, meowl.xyz, aftermath.finance, litecoin.org, flare.network, and tna-btc.com.
Coinbase International will launch perpetual futures trading for CRV, ENS and PEOPLE
Coinbase International Exchange announced that it will begin supporting perpetual futures trading for Curve DAO, Ethereum Name Service, and Constitution DAO at or after 17:30 Beijing Time on July 18, 2024. These new markets will be available on Coinbase International Exchange and Coinbase Advanced platforms, with the corresponding trading pairs being CRV-PERP, ENS-PERP, and PEOPLE-PERP.
Coinbase launches “one-stop” crypto app that supports connecting multiple wallets
According to The Block, Coinbase announced on Thursday that it will launch a new web application that aims to provide users with a one-stop platform for viewing and managing their crypto asset exposure, including tokens, NFTs and DeFi positions. According to a statement, users can connect multiple wallets to the new application. The application is suitable for desktop and mobile devices and supports smart wallets. Coinbase's move is a step in its plan to become a "super application."
Pendle: The domain name has been restored to normal, and the protocol itself is not affected
According to Pendle's official Twitter announcement, the Pendle domain name has returned to normal. Please make sure the address bar shows https://app.pendle.finance. The protocol itself is not affected and the funds are safe. If it does not show, please clear the browser cache and restart the device. The incident investigation report will be released soon.
Previously, Pendle said that the website had been closed because the domain name was hijacked and user funds were safe.
Tether will no longer accept USDT or EURT redemptions on Omni, Kusama, SLP, EOS, and Algorand starting September 1
According to the official blog, Tether stated that from September 1, 2025, Tether will no longer be obliged to accept USDT or EURT redemptions on Omni, Kusama, SLP, EOS, and Algorand. Tether will freeze all remaining USDT or EURT on Omni, Kusama, SLP, EOS, and Algorand on September 1, 2025. Tether customers holding USDT or EURT on Omni, Kusama, SLP, EOS, and Algorand should redeem their holdings as soon as possible, or, if necessary, request the issuance of USDT or EURT on supported blockchains in accordance with their terms of service. Non-customer holders can migrate their USDT or EURT holdings to supported blockchains through available service providers in accordance with the terms of these providers.
Hamster Kombat founder: There will be a second season and a second airdrop in the next two years
According to The Block, the anonymous founder of Hamster Kombat, a TON ecosystem game that claims to have more than 250 million users, revealed that they are already planning a second airdrop after the first airdrop this month. He said: "The game will continue, and there will be a second season and a second airdrop in the next two years. We believe that these tokens will belong to millions of users around the world and have great value in themselves."
Arbitrum DAO's proposal to diversify 35 million ARB tokens into stable, liquid and yield-earning assets passed
According to the Arbitrum DAO announcement, Arbitrum DAO passed a proposal to diversify 35 million ARB tokens into stable, liquid and profitable RWA assets. The STEP Committee proposed the final allocation recommendations: Securitize BUIDL (11 million ARB), Ondo USDY (6 million ARB), Superstate USTB (6 million ARB), Mountain USDM (4 million ARB), OpenEden TBill (4 million ARB) and Backed Finance bIB01 (4 million ARB). The voting results showed that 99.44% of the votes supported the proposal. The Arbitrum Foundation and project managers will then be instructed to begin implementing these recommendations.
Compound Labs: The website has been restored, please make sure to access the correct domain name
Compound Labs confirmed on the X platform that the compound.finance website has now been restored to security. You should always be vigilant when clicking on links to avoid phishing scams. Compound Labs reminds you to restart your browser to ensure you are visiting the correct website and follow the correct URL.
Three executives of Compound Labs announced their resignation and will start a new company Legend with the best DeFi interface
Compound Labs CEO JSON (@jaysonhobby) announced the launch of a new company, Legend, which aims to bring the next 100 million users to the chain by building the world's best DeFi interface. The platform will enable users to own and control digital assets, support seamless interaction of multiple protocols and multiple blockchains, mobile-first design, and use keys instead of seed phrases. JSON also announced his resignation as CEO of Compound Labs, saying that the Compound protocol has achieved true decentralization. JSON will co-found Legend with two former colleagues from Compound Labs to promote the future development of DeFi.
Binance CEO: The platform has more than 210 million users, and the number of institutional registrations increased by more than 36% in the first half of this year
Richard Teng, CEO of Binance, released an open letter on Binance's seventh anniversary. The letter stated that Binance currently has more than 210 million users, and Binance has always regarded users as the single most important factor driving its decision-making for many years. Earlier this year, the value of Binance user funds held exceeded $100 billion for the first time. As always, user funds are safe and transparently held at a 1:1 ratio. The infrastructure is in place to support the exploration of experienced and new users, while providing a wide range of products and services to meet any of their Web3 and crypto-related needs. Today, Binance supports 541 digital assets and 2,632 trading pairs. The number of queries per second (QPS) on the Binance platform has reached an all-time high of 2.58 million. This data shows that Binance can smoothly handle very large loads when users need it most. Binance's simple earning product line allows users to increase their cryptocurrency holdings in 392 different assets, and more than 8 million users use cryptocurrencies through Binance Earn. Another pillar of adoption is payment. Today, more than 24 million people around the world use Binance Pay to transfer value safely and efficiently within and outside the country. One of the key drivers of the mainstreaming of digital assets in the current market cycle is the increase in institutional participation. These institutions have joined the Binance ecosystem this year: institutional registrations grew by more than 36% between January and June 2024. In addition, strengthening collaborative security in the digital financial sector remains one of Binance's key areas of focus. Between June 2023 and May 2024, the Binance team processed approximately 62,800 law enforcement requests, bringing the all-time high to 173,800. Each request helps investigate and prosecute criminal cases, find perpetrators, and recover victims' money. In order to protect Binance users from potential security breaches and other extreme situations, it keeps the value of the SAFU fund above $10 and will continue to do so in the future.
Source: Ethereum ETF issuers are eagerly awaiting details from the SEC on final filings
According to The Block, after submitting the latest S-1 form on July 8, potential Ethereum ETF issuers are eagerly waiting for the U.S. Securities and Exchange Commission (SEC) to provide updates on upcoming products. A source from an issuer said: "The next step is to wait for the SEC's feedback to see what to do next. Do they need a final draft? When do they need it?" They pointed out that the SEC's next feedback will be of great reference value. After the approval of Form 19b-4 in May, issuers have been communicating with the SEC on the second part of the two-step process, Form S-1. Unlike the first form, Form S-1 has no effective deadline, but it still needs to be submitted before the ETF is listed. The SEC has provided comments to issuers several times for them to modify the form, and each round of modifications takes several weeks.
However, issuers are beginning to hope that the process may be coming to an end. Another source at an issuer said: "The SEC is still continuing its review and we seem to be getting closer to final approval. We expect to submit a final document, but the exact timing is unclear." The Block previously reported that the last round of document submissions was based on minor comments from the SEC, and this may be the last round of feedback. Analysts generally expect these products to be launched soon, and Eric Balchunas, senior ETF analyst at Bloomberg, noted that all signs point to a launch this month.
Financing News
Artificial intelligence startup Fireworks AI completes $52 million in financing, led by Sequoia Capital
According to Bloomberg, artificial intelligence startup Fireworks AI has completed a $52 million financing round, led by Sequoia Capital, with participation from Nvidia, Advanced Micro Devices Inc. and MongoDB Inc. The company's total financing has reached $77 million, with a valuation of $552 million. Fireworks plans to use the new funds to expand its team and plans to expand its partnerships with artificial intelligence companies. Fireworks aims to help companies adopt generative artificial intelligence by allowing them to access more than 100 models through its platform.
Partior, a clearing and settlement company backed by banking giants, completes $60 million Series B financing, led by Peak XV Partners, with participation from Jump Trading and others
Partior, a cross-border payments and settlement blockchain company, has raised more than $60 million in a Series B round led by Peak XV Partners, with other investors including Jump Trading and Valor Capital. Singapore-based Partior also includes existing shareholders Temasek Holdings, JPMorgan Chase and Standard Chartered Bank. Partior will expand its settlement products to include intraday foreign exchange swaps, cross-currency repo and securities delivery against payment. The company was founded in 2021 and originated from Project Ubin, a project led by the Monetary Authority of Singapore, which aims to explore the application of blockchain and distributed ledger technology in payments and securities settlement.
Morgan Creek Digital plans to raise up to $500 million for new Web3 venture fund
Morgan Creek Digital plans to raise up to $500 million for a new Web3 venture capital fund, targeting early opportunities in artificial intelligence, blockchain technology, chips and data. The company is reaching out to sovereign and institutional investors, corporate executives and industry experts in Europe, the Middle East, Africa and Asia Pacific, planning to expand its regional influence. Morgan Creek Digital general partner Mark Yusko said the company will focus more on international markets and build connections with the best CEOs and partners. Since 2018, Morgan Creek Digital has raised more than $440 million and has approximately 80 equity positions.
Important data
Data: Grayscale GBTC net outflow of $37.7 million on July 11
According to Farside Investors, on July 11, Grayscale GBTC had a net outflow of US$37.7 million, Bitwise BITB had a net inflow of US$7.5 million, and Ark ARKB had a net inflow of US$4.3 million.
24,000 BTC options and 157,000 ETH options will expire today, with a total notional value of $1.89 billion
Greeks.live macro researcher Adam posted on the X platform that 24,000 BTC options are about to expire, with a Put Call Ratio of 1.08, a maximum pain point of $58,500, and a nominal value of $1.4 billion. 157,000 ETH options are about to expire, with a Put Call Ratio of 0.37, a maximum pain point of $3,100, and a nominal value of $490 million.
The “German Government” wallet address once again transferred 2,700 BTC to CEX and other addresses
Arkham data showed that at 15:02 Beijing time, the wallet address marked as "German Government" transferred a total of 2,700 BTC to Coinbase, Kraken, Bitstamp and two unknown addresses.
Subsequently, at 16:04 and 16:22, Bitstamp and Kraken transferred 250 BTC to the “German Government” wallet address respectively. Later in the day, it was reported that the “German Government” wallet address again transferred about 748 BTC to Cumberland DRW.
The market value of the seven largest technology companies in the U.S. evaporated by nearly $600 billion overnight, about 4.35 trillion yuan
After the good news of the US CPI data, traders chose to withdraw from the recent strong performance of technology giants. The heavyweight stock Nvidia closed down 5.57%, Tesla fell 8.44%, Meta fell more than 4%, Apple, Microsoft, Google and Amazon fell more than 2% respectively. In contrast, the Russell 2000 index, which is dominated by small-cap stocks, closed up more than 3.5%. The market value of the "seven giants" of US technology stocks evaporated by nearly US$600 billion (about RMB 4.35 trillion) in a single day, which is equivalent to losing a JPMorgan Chase (market value of US$595.46 billion).
Today's Fear and Greed Index is 25, a new low since January 2023
Alternative data shows that today's Fear and Greed Index is 25 (yesterday was 29), a new low since January 2023. Market sentiment is currently in "extreme fear."
Huang Licheng sold all BLUR and suffered a loss of $3.16 million
According to Spot On Chain, Huang Licheng, the "Big Brother", has sold all his BLUR holdings, with a loss of $3.16 million. In the past 24 hours, he deposited all 18.4 million BLUR into Binance, causing the market price to fall. In addition, the performance of other tokens held by Huang Licheng is also not satisfactory. Currently, he holds:
-275 million BLAST (US$4.45 million), estimated loss of US$1.5 million;
-8.8 million FRIEND ($1.71 million), estimated loss of $13.8 million.
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