• Rep. Maxine Waters criticized PayPal’s stablecoin and demanded for regulations on par with financial institutions.
• Coinbase’s Ethereum layer-2 chain Base is live to the public while the Federal Reserve will require state banks to get written ‘non-objection’ from central bank before engaging with stablecoins.
• A law expert said that the amicus brief filed by 6 law scholars ‘absolutely shreds’ the SEC’s theory.
Rep. Maxine Waters Criticizes PayPal’s Stablecoin
Rep. Maxine Waters has called for regulation of PayPal’s stablecoin on par with other financial institutions, citing concerns about its impact on users and markets. She has also expressed concern that it could be used as a way to evade existing laws and regulations related to cryptocurrency assets.
Coinbase’s Ethereum Layer-2 Chain Live To The Public
Coinbase has made its Ethereum layer-2 chain Base publicly available, allowing users to access decentralized finance (DeFi) applications without waiting for lengthy block confirmations or paying high fees associated with traditional transactions on Ethereum mainnet. The new protocol allows users to securely interact with dApps in a trustless environment without incurring high gas costs normally associated with these activities on Ethereum mainnet.
Federal Reserve Requires State Banks To Get Written ‚Non-Objection‘
The Federal Reserve has announced that state banks must obtain written non-objection from the central bank before engaging in any activities involving stablecoins, such as offering services related to them or storing them in custody accounts. This is being done in order to ensure that all activities are compliant with applicable laws and regulations and that only legitimate actors are involved in these activities.
Bitstamp Halts US Trading Of Seven Tokens
Bitstamp has announced it will halt trading of seven tokens identified as securities by the US Securities and Exchange Commission (SEC), following similar moves by Coinbase and Binance earlier this year. This decision comes after an increase in regulatory scrutiny of digital asset exchanges, which have been accused of facilitating unregistered securities trading in some cases..
Law Expert Says Amicus Brief ‚Absolutely Shreds‘ SEC Theory
In support of Coinbase, a group of law professors and scholars have filed an amicus brief arguing against the SEC’s interpretation of „investment contract“ when applied to cryptocurrencies like Bitcoin or Etherium . Crypto lawyer James Murphy noted that the document „absolutely shreds“ the regulator’s theory, stating that investment contracts require a contractual undertaking – something cryptocurrencies currently do not possess according to their definition under current law
