SEC - Page 97

In a notable effort to repair the relationship with the cryptocurrency sector, advisers to U.S. Vice President Kamala Harris have reached out to major crypto companies, aiming to reset the strained ties between the Democratic Party and the industry.

According to the Financial Times, Harris’s team has initiated contact with key figures at leading crypto firms, including the cryptocurrency exchange Coinbase, stablecoin issuer Circle, and blockchain payment firm Ripple Labs.

The outreach seeks to promote a more constructive dialogue and develop a regulatory framework supportive of the industry’s growth.

This initiative comes at a time when the crypto sector has shown increased support for Harris’s opponent, former President Donald Trump, the Republican Party nominee. It also responds to criticism of the Biden administration’s stance on digital assets.

The effort follows a letter signed by Democratic members of the U.S. House of Representatives and 2024 candidates, urging the party to rethink its approach to the digital asset industry. The letter emphasizes the need to move away from perceived hostility toward the sector.

Harris’s advisers have emphasized that the outreach to the crypto industry is not primarily about securing electoral contributions.

Instead, it is focused on building a positive relationship that could lead to a sensible regulatory framework.

READ MORE: SEC Approves Grayscale’s New Bitcoin Mini Trust ETF for NYSE Listing, Introducing Lower Fees and Tax Advantages for Shareholder

This initiative is also part of a broader strategy to reshape the Democratic Party’s image among business leaders.

The Harris campaign aims to counter the perception that Democrats are anti-business, a sentiment reinforced by the Biden administration’s antitrust actions against tech companies.

Harris is keen on promoting a message of being “pro-business, responsible business,” to reassure the industry of the party’s commitment to fostering a supportive business environment.

Meanwhile, Trump, who previously expressed skepticism toward cryptocurrencies, has emerged as a strong advocate for the sector.

His keynote speech at the Bitcoin 2024 conference in Nashville, Tennessee, underscored his support, attracting significant backing from the crypto community.

Pro-crypto super PAC Fairshake has raised over $200 million from notable supporters, including Coinbase and Ripple, while Trump’s campaign has received roughly $3 million in cryptocurrency donations since announcing it would accept digital assets.

To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.

The Federal Reserve Board announced on July 26 that it had lifted all enforcement actions against Silvergate Bank and its parent company, Silvergate Capital Corporation.

The decision followed the bank’s successful winding down of operations, which included reimbursing customers and ceasing its activities as a financial institution.

While the Federal Reserve Board responded to Cointelegraph’s request for additional information, it declined to comment specifically on the matter.

Silvergate Bank’s collapse in March 2023 marked a significant event in the financial sector.

A month prior, the bank’s stock had become the second-most shorted on Wall Street, with 72% of shares borrowed for short selling.

This intense market scrutiny was compounded by Silvergate’s delay in filing its 10-K form in early March, an annual financial report required by U.S. law.

The delayed filing led to a 31% drop in Silvergate’s stock value.

On March 8, 2023, Silvergate officially collapsed, citing financial shortfalls due to the fallout from FTX’s collapse and the subsequent withdrawal of funds by major clients.

In response, the Federal Reserve Board oversaw the bank’s self-liquidation plan to ensure that customer reimbursements were maximized.

READ MORE: BlackRock’s Bitcoin ETF Sees Continued Inflows Despite Decline in Positive Market Sentiment

Despite this oversight, not all affected parties were satisfied, leading to lawsuits against the defunct bank.

Amid the liquidation process and mounting legal challenges, CEO Alan Lane and other top executives left the company in August 2023.

Despite the end of the Federal Reserve’s enforcement actions, Silvergate’s legal challenges persist.

In March 2024, a federal court judge allowed a class-action lawsuit to proceed, alleging that Silvergate facilitated the FTX fraud.

Additionally, in July 2024, the Securities and Exchange Commission filed a lawsuit against Silvergate Capital Corporation, accusing it of complicity in the same fraud.

These ongoing legal issues suggest that Silvergate has not yet fully emerged from its difficulties.

To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.

Outflows from the Grayscale Ethereum Trust ETF (ETHE) have surpassed $1.5 billion, with a notable single-day net outflow of $356 million on July 26.

This day marked significant volatility for spot Ether exchange-traded funds (ETFs), which experienced total net outflows of $163 million, according to SoSo Value.

Since the launch of spot Ether ETFs in the United States on July 23, Grayscale’s Ethereum Trust ETF has seen substantial investor withdrawals totaling over $1.5 billion.

In contrast, Grayscale’s Ethereum Mini Trust ETF (ETH) has experienced a different trend. On July 26, it recorded a net inflow of $44.9 million, bringing its total net inflows to $164 million since its inception.

BlackRock’s iShares Ethereum Trust ETF (ETHA) has garnered the most investor interest among these ETFs. On July 26, ETHA reported a net inflow of $87.2 million, boosting its total net inflows to $442 million.

READ MORE: 3AM JAPAN and INTMAX Announce New Partnership to Deliver Web3 Loyalty Programs

Currently, the total net asset value of spot Ether ETFs stands at $9.2 billion.

The ETF net asset ratio, which indicates the market value of ETFs relative to Ethereum’s total market value, is at 2.36%.

Despite these figures, the historical cumulative net outflow for spot Ether ETFs has reached $341 million.

The introduction of these Ethereum ETFs follows the U.S. Securities and Exchange Commission’s approval in May, with eight investment firms launching nine new funds that track the cryptocurrency’s spot price on July 23.

To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.

INTMAX and 3AM JAPAN have entered into a strategic partnership to develop sustainable Web3 loyalty programs. This collaboration combines INTMAX’s advanced blockchain technology with 3AM JAPAN’s extensive expertise in creating and managing loyalty programs.

Despite the growing interest in Web3 loyalty programs, many face significant challenges, particularly regarding data storage and privacy.

Yohei Nishikubo, CEO of 3AM JAPAN, highlighted these issues, stating, “We have been working closely with Japan’s largest loyalty program providers and have identified data storage and privacy as two critical challenges.”

Existing blockchain solutions often require large amounts of disk space and are limited in transaction processing capacity. For example, popular Layer 2 blockchains can need around 1.8 terabytes of extra storage per month for each full node, with a maximum processing speed of 50 transactions per second (TPS). This setup can become unmanageable, especially when scaling to accommodate millions of users.

INTMAX offers a solution with its stateless zkRollup blockchain technology. Unlike traditional blockchains, INTMAX does not store individual transaction details or account states on the blockchain, significantly reducing data storage requirements. Instead, transaction details are kept as proof sets on the devices of senders and recipients. “INTMAX fundamentally eliminates storage and privacy concerns,” said Leona Hioki, CEO of the INTMAX Project.

The issue of privacy is also crucial in the Web3 era. Storing sensitive data on a public blockchain can pose significant risks, especially for businesses operating under strict regulatory conditions. INTMAX’s approach mitigates these risks by not recording personal data on the blockchain, thus ensuring compliance with data management regulations.

3AM JAPAN plans to integrate INTMAX’s technology with its own systems, including a patent-pending user wallet that supports both custodial and non-custodial operations and addresses potential threats from quantum computing. “Our partnership with INTMAX reflects our commitment to delivering sustainable and secure Web3 solutions,” added Nishikubo.