News Desk

ANZ Successfully Tests Cross-Chain Stablecoin Transaction on Chainlink’s CCIP

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Australia and New Zealand Banking Group (ANZ) is making significant strides toward the launch of its bank-issued stablecoin, A$DC.

The bank has achieved a crucial milestone by successfully conducting a test transaction on Chainlink’s Cross-Chain Interoperability Protocol (CCIP), marking a pivotal moment for the institution.

Nigel Dobson, the lead for ANZ’s banking services portfolio, emphasized the significance of this achievement, stating that it represents a substantial step forward for the bank.

The test transaction conducted in collaboration with Chainlink CCIP simulated the purchase of a tokenized asset, utilizing A$DC and an ANZ-issued New Zealand dollar-denominated stablecoin.

Dobson disclosed that ANZ has been actively exploring various blockchain networks as part of its “test-and-learn” approach.

This experimentation is aimed at identifying the most effective applications for ANZ’s Australian dollar stablecoin within decentralized networks.

ANZ, one of the world’s largest global banks boasting over $1 trillion in total assets under management, is showcasing the potential of CCIP for secure cross-chain stablecoin transactions.

This demonstrates the growing prominence of Chainlink and CCIP as standard solutions for facilitating interbank transactions.

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Dobson underscored ANZ’s conviction in the value of tokenizing real-world assets like the Australian dollar, a development poised to reshape the banking industry.

He remarked, “Tokenized assets are already changing the way banking works, and the technology has the potential to do more — if the right pieces can come together.”

Notably, ANZ achieved a significant milestone in March 2022 when it minted the first A$DC stablecoin, becoming the inaugural Australian bank to do so.

National Australia Bank (NAB) followed suit a year later by introducing its AUDN stablecoin on the Ethereum blockchain.

However, it is worth mentioning that NAB, along with several of its counterparts, including Commonwealth Bank of Australia, Westpac, and Bendigo Bank, has recently imposed restrictions and, in some cases, complete bans on bank transfers to certain “high-risk” cryptocurrency exchanges.

The primary rationale cited by these banks is the need to safeguard customers against potential cryptocurrency scams.

This regulatory stance highlights the ongoing tension between traditional banking institutions and the burgeoning cryptocurrency ecosystem.

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Renowned Crypto Advocate Joins LBRY Lawsuit

John Deaton, a prominent attorney representing numerous XRP token holders in the Ripple-Securities Exchange Commission (SEC) lawsuit, has taken a significant step by officially submitting his notice of appearance as an Amicus Curiae in the LBRY lawsuit.

This noteworthy development transpired on September 14, 2023, when Deaton formally lodged his Notice of Appearance on behalf of Amicus Curiae Naomi Brockwell, who is widely recognized as the founder of Crypto Law.

Crypto Law is a dedicated platform offering invaluable insights and updates on legal and regulatory developments pertaining to cryptocurrencies in the United States, and it operates in collaboration with Deaton.

John Deaton has earned a reputation for his unwavering advocacy for the rights of cryptocurrency investors and his active participation in legal proceedings and discussions related to cryptocurrency regulations and legal actions. His involvement in the LBRY lawsuit marks another significant stride in his commitment to the cryptocurrency community.

The LBRY lawsuit originated in March 2021 when the United States SEC initiated legal action against LBRY.

The SEC alleged that LBRY had unlawfully sold LBC tokens without complying with the agency’s registration requirements, as mandated by law.

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On September 7, 2023, LBRY filed a notice of appeal with the United States Court of Appeals for the First Circuit, seeking to challenge the final judgment delivered on July 11.

This judgment had ordered LBRY to pay a civil penalty and imposed a prohibition on its participation in unregistered offerings of crypto asset securities in the future.

In July 2023, the United States District Court for the District of New Hampshire issued its final judgment in the US SEC vs. LBRY lawsuit, determining LBRY’s liability for violating Section 5 of the Securities Act of 1933.

The outcome of this case was closely watched for its potential implications for the ongoing XRP lawsuit.

However, on July 14, 2023, U.S. District Judge Analisa Torres handed down a summary judgment in favor of Ripple.

The judgment established that the sale of XRP tokens to retail buyers did not qualify as securities, providing a significant legal victory for Ripple and its supporters.

John Deaton’s involvement as Amicus Curiae in the LBRY lawsuit underscores the interconnectedness of legal actions within the cryptocurrency space and the growing influence of individuals dedicated to safeguarding the rights and interests of cryptocurrency investors.

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DeFi Pioneer Rune Christensen Envisions Decentralized Stablecoins Dominating the Crypto Market

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Decentralized stablecoins could potentially dominate the stablecoin market in the future, according to Rune Christensen, the co-founder of MakerDAO, a pioneering decentralized finance (DeFi) platform.

In an interview with Cointelegraph’s Andrew Fenton at Token 2049 in Singapore, Christensen shared his insights on the role of decentralized stablecoins, like Dai (DAI), within the broader cryptocurrency ecosystem.

Christensen referenced a presentation by Nic Carter, a partner at Castle Island Ventures, during the conference.

Carter had suggested that interest-bearing stablecoins might capture 30% of the market within two years.

While Christensen agreed with this prediction, he emphasized that the outcome might hinge on macroeconomic conditions.

If high inflation and high interest rates persist, the dominance of stablecoins could increase.

When asked whether decentralized stablecoins could compete with their centralized counterparts, Christensen expressed confidence in their potential.

He stated that if the cryptocurrency space fulfills its potential, decentralized stablecoins could come to dominate the entire market, while centralized stablecoins would serve as the bridges to the legacy financial system.

Christensen highlighted the unique advantage of decentralized stablecoins, particularly those like Maker, which rely on real-world data.

He noted that these coins have the capacity to gamify savings, making them more engaging for users.

In mid-2022, Christensen proposed MakerDAO’s “Endgame Plan.”

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The plan outlines the transition of DAI from a stablecoin pegged to the dollar to a free-floating asset, initially collateralized by real-world assets (RWA).

Over a three-year period, DAI would gradually shift from its dollar peg, with a focus on accumulating Ether (ETH) as decentralized collateral.

Christensen acknowledged that MakerDAO had established a strong and stable foundation but expressed concerns about the proliferation of fraudulent and illegitimate projects in the crypto space.

To address this, he envisioned making the protocol more appealing and enjoyable for younger users by incorporating gamification elements.

He believed that designing interfaces akin to games would attract users and enhance the protocol’s overall appeal.

In summary, Rune Christensen, co-founder of MakerDAO, sees a promising future for decentralized stablecoins like Dai.

Their potential dominance in the stablecoin market depends on various factors, including macroeconomic conditions and the ability to gamify savings, which could make them more attractive to users.

MakerDAO’s “Endgame Plan” represents a strategic shift toward greater decentralization and adaptability in the evolving cryptocurrency landscape.

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Telegram Unveils Crypto Wallet on TON Blockchain, Paving the Way for Web3 Integration

Popular messaging app Telegram has introduced a long-awaited crypto wallet, marking a significant step towards realizing its vision of building a Web3 ecosystem.

The announcement came during the Token2049 event in Singapore, generating considerable excitement among the platform’s 800 million global users.

This crypto wallet operates on The Open Network (TON) blockchain, providing Telegram users with a seamless and secure way to manage their digital assets.

The integration of the TON wallet into Telegram had an immediate impact on the crypto market, causing Toncoin’s value to surge by approximately 7% upon the unveiling.

The TON Foundation has unveiled a compelling incentive for projects built on the TON blockchain.

These projects will receive preferential access to Telegram’s advertising platform, Telegram Ads.

While the wallet feature is currently accessible in the app’s settings for existing users, a worldwide rollout is scheduled for November this year, with the notable exception of the United States and a few other countries.

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Telegram’s journey towards integrating a TON-based crypto wallet began as far back as 2019. However, the project faced substantial obstacles when the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Telegram in 2020.

The SEC alleged that Telegram’s $1.7 billion initial coin offering (ICO) was an unregistered security.

In response, Telegram reached a settlement with the SEC, agreeing to pay an $18.5 million fine and refund any unspent funds to investors.

Now, with their renewed collaboration, the TON Foundation and Telegram aim to forge a strong partnership and develop the Web3 infrastructure within the messaging platform.

Their vision is clear: to eliminate onboarding barriers and establish a user-friendly gateway to cryptocurrency for all Telegram users.

In summary, Telegram’s crypto wallet, built on the TON blockchain, is set to reshape the landscape of digital asset management within the messaging app.

With a global rollout on the horizon and a commitment to Web3 development, Telegram is poised to become a prominent player in the world of cryptocurrency.

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Coinbase Embraces Lightning Network for Faster and Cheaper Bitcoin Transactions

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Coinbase, a prominent cryptocurrency exchange, has officially embraced the Lightning Network (LN), a layer-2 payment protocol.

This integration is in response to user demands for swifter and more cost-effective Bitcoin transactions.

The Lightning Network was conceived as a solution to Bitcoin’s scalability issues and to compete with newer cryptocurrencies that promised quicker and cheaper transactions.

For a considerable period, major crypto exchanges like Coinbase and Binance had hesitated to adopt this layer-2 solution.

Many community members argued that integrating the Lightning Network would offer fewer financial incentives for exchanges.

Contrary to the prevailing sentiment, Brian Armstrong, the CEO of Coinbase, confirmed the exchange’s decision to integrate the Lightning Network.

In his statement, he emphasized the importance of Bitcoin in the crypto world and expressed excitement about enabling faster and cheaper Bitcoin transactions.

Armstrong also acknowledged that the integration process would take some time and requested patience from users.

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This decision followed a month of exploration by Viktor Bunin, a protocol specialist at Coinbase, into the feasibility of integrating the Lightning Network.

During this period, influential figures in the crypto industry, such as Michael Saylor of MicroStrategy and Jack Dorsey of Square, publicly questioned Armstrong’s stance on the Lightning Network.

The crypto community welcomed Coinbase’s announcement, as the integration of the Lightning Network will make affordable and efficient Bitcoin microtransactions accessible to a broader audience.

In a related development, on July 17th, Binance, another major cryptocurrency exchange, revealed that it had successfully integrated the Lightning Network for Bitcoin withdrawals and deposits.

Binance users now have the option to choose “LIGHTNING” when withdrawing or depositing Bitcoin.

This additional option enhances the flexibility of users and contributes to the growing adoption of layer-2 solutions in the cryptocurrency ecosystem.

Other available options for withdrawals and deposits on Binance include BNB Smart Chain (BEP-20), Bitcoin, BNB Beacon Chain (BEP2), BTC (SegWit), and Ethereum ERC-20.

Overall, these integrations mark a significant step forward in addressing Bitcoin’s scalability issues and making cryptocurrency transactions more efficient and cost-effective for users on these platforms.

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Bitcoin’s Price Resurgence: Bulls and Bears Lock Horns Amidst Uncertain Crypto Landscape

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Bitcoin faced a notable resurgence, surging by 5% after a critical test of the $25,000 support level on September 11th.

Nonetheless, this upward swing should not be hailed as an unequivocal triumph for bullish investors.

To provide context for this recent price action, it’s crucial to acknowledge that Bitcoin has weathered a harsh 15% decline since July, a performance contrasted by the stability observed in the S&P 500 index and gold during the same period.

This underperformance exposes Bitcoin’s struggle to gain momentum, despite substantial catalysts like MicroStrategy’s intent to acquire an additional $750 million worth of BTC and the persistent requests for Bitcoin spot exchange-traded funds (ETFs) from trillion-dollar asset management firms.

Yet, in the realm of Bitcoin derivatives, the bullish camp appears confident, viewing the $25,000 level as a significant bottom and a gateway to further price hikes.

Some proponents argue that Bitcoin’s primary drivers for 2024 remain in force, particularly the anticipation of a spot ETF and the reduction in new supply after the April 2024 halving.

Furthermore, immediate risks in the cryptocurrency markets have diminished, partly due to the United States Securities and Exchange Commission experiencing partial losses in cases involving Grayscale, Ripple, and decentralized exchange Uniswap.

Conversely, bears have their own advantages, including ongoing legal disputes involving prominent exchanges like Binance and Coinbase.

Additionally, Digital Currency Group’s precarious financial position after a subsidiary’s January 2023 bankruptcy declaration, bearing debts exceeding $3.5 billion, could potentially lead to the sale of Grayscale-managed funds, including the Grayscale Bitcoin Trust.

A closer examination of derivatives metrics sheds light on the stance of professional traders in the current market conditions.

Bitcoin monthly futures typically maintain a slight premium over spot markets, signaling that sellers demand more money to postpone settlement.

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Consequently, BTC futures contracts usually exhibit a 5 to 10% annualized premium, known as contango, a phenomenon not unique to crypto markets.

While the demand for leveraged BTC long and short positions through futures contracts had minimal impact on the drop below $25,000 on September 11th, the BTC futures premium remains below the 5% neutral threshold, signaling a lack of enthusiasm for leveraged long positions.

To delve further into market sentiment, observing the options markets, particularly the 25% delta skew, provides insight into investor optimism.

Previously, a 9% premium on protective put options implied an anticipation of correction.

However, this metric has now stabilized at zero, indicating balanced pricing between call and put options, suggesting equal odds for both bullish and bearish price movements.

In light of macroeconomic uncertainty, including the impending release of the Consumer Price Index report on September 13th and retail sales data on September 14th, crypto traders are likely to proceed cautiously, aiming for a “return to the mean” within the trading range of $25,500 to $26,200 observed over the past weeks.

Ultimately, both bullish and bearish forces possess influential triggers that could sway Bitcoin’s price.

However, the timing of events such as court decisions and ETF rulings remains elusive.

This dual uncertainty likely explains the resilience of derivatives metrics, with both sides exercising caution to mitigate excessive exposure.

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US and Vietnam Forge Multi-Billion Dollar AI and Tech Partnerships

The United States and Vietnam have entered into groundbreaking business agreements worth billions of dollars, aimed at fostering collaboration in cutting-edge technologies, most notably artificial intelligence (AI).

The announcement was made during a joint press conference on September 11, underscoring the significance of this move.

U.S. President Joe Biden described this as a formal “upgrading” of the bilateral relationship between the two nations, highlighting key sectors like cloud computing, semiconductors, and AI.

He emphasized the deepening cooperation in critical and emerging technologies, particularly in building a resilient semiconductor supply chain.

President Biden also expressed optimism that this economic partnership would catalyze increased trade and investment between the two countries.

Importantly, he clarified that this initiative is not aimed at containing China but rather at establishing a stable foundation in the region.

Dignitaries from major tech companies, including Google, Intel, Boeing, Amkor, Microsoft, and Nvidia, were present at the conference.

Boeing and Amkor, in particular, announced additional deals, with Amkor planning to establish a new factory near Hanoi, Vietnam’s capital, starting in October of this year.

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This facility will be dedicated to assembling, packaging, and testing AI chips.

Vietnam has emerged as one of the world’s fastest-growing economies, ranking 34th globally with a GDP of $450 billion, as per data from Acclime, a regional corporate services provider in Asia.

Vietnam’s transition from centralized economic control to a more open approach has enabled the United States to become one of its largest export markets.

This AI-centric agreement has reportedly elevated the United States by two levels in Vietnam’s bilateral hierarchy, a position traditionally held by China, Russia, India, and South Korea.

Historically, the U.S.-Vietnam relationship had been restrained due to concerns about upsetting China and the remnants of a tumultuous past stemming from the Vietnam War.

These developments come at a time when governments worldwide are actively competing to develop and deploy advanced AI systems, particularly in the ongoing rivalry between the U.S. and China.

In October 2022, the Biden administration imposed an export ban on the latest and most potent semiconductor chips to China, a policy that is under consideration for further tightening.

China, on the other hand, introduced new AI regulations in August, resulting in the release of more than 70 AI models with over a billion parameters.

The AI landscape is rapidly evolving, and partnerships like the one between the U.S. and Vietnam are pivotal in shaping the global AI landscape.

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Binance.US Challenges SEC’s ‘Unreasonable’ Demands in Legal Showdown

Binance.US has firmly responded to the United States Securities and Exchange Commission’s (SEC) recent motion to compel and reply, characterizing most of the SEC’s demands as “unreasonable” and “unduly burdensome.”

In a legal move made on September 12, attorneys representing BAM Trading Services, the entity operating the Binance.US cryptocurrency exchange, submitted confidential documents contesting the SEC’s request for additional information from Binance.US.

The defendants contended that the SEC’s requests for production and interrogatories were excessively broad, imposing an undue burden and extending beyond the scope defined in the consent order.

They further criticized the SEC’s pursuit of certainty and their requests for depositions of BAM CEO Brian Shroder and CFO Jasmine Lee, deeming them “unreasonable.”

BAM’s legal representatives emphasized that the SEC’s motion failed to identify any evidence implicating Shroder and Lee in the day-to-day management details related to the custody and transfer of customer assets at Binance.US.

The attorneys argued, “BAM’s CEO and CFO have no unique knowledge regarding facts relevant to the limited topics identified in the consent order’s expedited discovery provision.”

They also highlighted that BAM had presented alternative witnesses, like BAM’s Chief Information Security Officer, Erik Kellogg, who possessed more pertinent insights into BAM’s operations.

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The lawyers contended that the burden imposed by the requested depositions far outweighed any potential benefits and that the discovery sought was disproportionate to the needs outlined in the consent order.

Moreover, BAM’s legal team contended that the SEC had failed to provide any substantive evidence to support its allegations of asset diversion, characterizing these allegations as “misleading and mistaken.”

The attorneys pointed out a “complete disconnect” between the SEC’s “overbroad and abusive approach” and the limited expedited discovery framework to which the SEC had previously agreed in the consent order.

BAM’s response came shortly after both the SEC and Binance reached an agreement on a protective motion.

This motion mandated the filing of confidential information under seal, with restricted access only to specific parties including the judge, attorneys, plaintiffs, and defendants.

This joint motion was submitted on September 11, ensuring the confidentiality of protected materials in the ongoing legal proceedings.

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CFTC Commissioner Calls for Tech-Driven Investor Protection Reforms

United States Commodity Futures Trading Commission (CFTC) Commissioner Christy Goldsmith Romero has called for a modernization of protection measures using advanced technology to safeguard American investors.

Speaking at the annual meeting of the North American Securities Administrators Association in San Diego, Romero emphasized the need for government regulators to keep up with technological advancements to protect vulnerable investors.

Romero stressed the importance of regulators having a strong understanding of emerging technologies and their implications for the financial and legal sectors as they make policy decisions regarding next-generation financial technology.

In a significant move, Romero appointed technology experts in fintech, responsible artificial intelligence (AI), cryptocurrency, blockchain, and cybersecurity to the CFTC’s Technology Advisory Committee (TAC).

These experts are tasked with identifying ways to incorporate Know Your Customer (KYC) and Anti-Money Laundering (AML) processes into decentralized finance and cryptocurrency investment channels.

Furthermore, the TAC will play a crucial role in promoting responsible AI development within the financial industry, focusing on governance for decision-making that impacts investors and markets.

Romero highlighted a shift in federal crypto investigations from trade activities to monitoring social media platforms such as X (formerly Twitter), Reddit, and Facebook.

She recommended the use of tools like blockchain analysis, link analysis, and data analytics to aid these investigations.

Romero emphasized that statements made on social media platforms can serve as strong evidence of intent, and regulators can use these platforms to issue warnings about scams to protect investors.

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To combat financial fraud effectively, Romero proposed the establishment of a National Financial Fraud Registry.

This centralized database would maintain records of all crimes and fines related to financial fraud, allowing investors to conduct background checks on companies and ongoing investigations or fines related to fraud.

Romero initially proposed the registry in December 2019 to enhance investor protection.

Romero believes that this one-stop-shop platform can deter financial fraud and improve overall investor safety.

In conclusion, she emphasized that federal and state officials must work together to enhance investor protection and safety.

In April, Romero urged crypto companies to verify the digital identity of users to mitigate risks associated with anonymity.

She encouraged both exchanges and decentralized finance (DeFi) platforms to adopt digital identity verification while still providing financial privacy for customers.

This approach aligns with her commitment to enhancing investor safeguards in the rapidly evolving cryptocurrency and blockchain space.

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Bitcoin Rebounds from Three-Month Lows Amid Traders’ Doubts

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Bitcoin experienced a notable recovery from its recent three-month lows on September 12, sparking skepticism among traders regarding the cryptocurrency’s price behavior.

Market data from Cointelegraph Markets Pro and TradingView reflected a rapid return to levels seen immediately after the weekly close of BTC/USD.

The preceding day had witnessed a sudden decline in Bitcoin’s value upon Wall Street’s opening, briefly pushing it below the $25,000 mark.

This performance marked its most significant decline since mid-June.

However, Bitcoin embarked on a subsequent comeback, surging by $1,000. Nevertheless, as of the time of writing, it was encountering resistance at the $26,000 level.

In anticipation of future price movements, on-chain monitoring resource Material Indicators had already issued a warning about an imminent “support test.” This was due to a decrease in bid liquidity in the order book’s lower levels.

Further analysis, both from Material Indicators and others, pointed out that previous occurrences of “rug pulls” in support levels had paradoxically led to positive outcomes in the Bitcoin market.

Large-volume traders were effectively clearing liquidity from the immediate vicinity of the spot price.

Co-founder Keith Alan even predicted that $24,750 would hold as support during a potential downturn, a prediction that remained accurate at the time of writing.

In a separate development, the DeFi Education Fund (DEF), an advocacy group for decentralized finance (DeFi), submitted a petition to the United States Patent and Trademark Office (USPTO) on September 7.

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This petition aimed to prompt a review of a patent owned by True Return Systems, a company accused by DEF of being a “patent troll.” Such entities seek to profit from patent-related lawsuits.

The patent, granted in 2018, claimed ownership of a process for “linking off-chain data to a blockchain.” DEF’s legal chief, Amanda Tuminelli, revealed that True Return had attempted to sell the patent as a nonfungible token (NFT) before subsequently filing lawsuits against DeFi protocols MakerDAO and Compound Finance in October.

Tuminelli asserted that True Return’s intention was to name defendants who couldn’t respond to the complaint, obtaining a default judgment.

The company would then seek to enforce the court’s ruling against token holders and repeat the process with other protocols that lacked the resources or means to challenge them in court.

DEF argued that the technology described in the patent was not innovative at the time of its granting and cited existing tech such as the InterPlanetary File System (IPFS) and decentralized storage platforms like Sia, Storj, and Swarm.

True Return Systems acknowledged a request for comment from Cointelegraph but had not provided an immediate response.

DEF’s petition to the USPTO aimed to protect the use and development of open-source software, prevent potential legal actions by True Return against crypto projects, and aid in the legal defense of MakerDAO and Compound.

True Return has a three-month window to optionally respond to the petition, after which the USPTO must decide whether to review the patent within six months and, ultimately, whether to cancel it within 12 months.

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