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• The U.S. government has announced plans to backstop all deposits at two failed banks, while also pledging to secure at least 8% of the collateral for the USDC stablecoin.
• Circle CEO Jeremy Allaire discussed emergency measures his company took to keep USDC from depegging from the U.S. dollar as well as their plan to turn stablecoins into “straight-through government obligation money.”
• Arthur Hayes proposed NakaDollar (NUSD), a stablecoin backed by bitcoin and bitcoin derivatives, which could provide liquidity and stability if accepted by investors and crypto exchanges.

The Banking Crisis Has Been Good for Stablecoin Experimentation

Sovryn, a Bitcoin DeFi protocol, announced a new dollar proxy as others look at alternative models for collateralizing stablecoins amid a banking system crisis. By Daniel Kuhn

Stablecoin Backed by U.S Government

The U.S Treasury Department, Federal Reserve and FDIC announced plans to backstop all deposits at two failed banks, they were also pledging to secure at least 8% of the collateral for the USDC stablecoin. Circle, the stablecoin’s issuer, said it keeps around a quarter of USDC’s reserve assets at about six banks in order to avoid depegging from the U.S dollar during times of crisis or instability in banking systems worldwide.

NakaDollar: A Potential Alternative

Arthur Hayes co-founder of crypto exchange BitMEX proposed NakaDollar (NUSD), a stablecoin backed by bitcoin (BTC) and bitcoin derivatives which would theoretically be deeply liquid and attractive to traders providing stability if accepted and used by investors and crypto exchanges .

Circle’s Strategy

Circle CEO Jeremy Allaire spoke about the emergency measures his company took, as well as the serious game theorizing Circle has played over the past two years to spread out its cash and one day essentially turn stablecoins into “straight-through government obligation money.”

“The Hash” Panel Discussion

The panel discussed Hayes’ proposal on how it will affect future of the stablecoin market along with other possible solutions that can be implemented in order to make them more secure during financial turmoil or market crashes .

• Block.one, a Peter Thiel-backed blockchain software company, has exited its equity position in Silvergate Bank due to the bank’s inability to file its annual report last week.
• The company made a contrarian bet on Silvergate in November when its exposure to FTX’s collapse became public.
• Opimas LLC CEO Octavio Marenzi said that macroeconomic conditions are having a bigger effect on crypto markets more generally.

Block.One Exits Silvergate Stake

Peter-Thiel backed blockchain software company Block.one announced it had exited its equity position in Silvergate Bank after the bank was unable to file its annual report last week.

Bet On Silvergate In November

In November, when the bank’s exposure to FTX’s collapse first became known, Block.one made a contrarian bet on Silvergate citing their “strong balance sheet, their strategic positioning, or their market-defiant growth trajectory” which made the bank a “unique investment opportunity.”

Macroeconomic Impact On Crypto Markets

Opimas LLC CEO and founder Octavio Marenzi discussed the crypto market impact of the Silvergate Bank turmoil saying, “the markets reacted with a big yawn.” He adds that the macroeconomic backdrop, with U.S. Federal Reserve Chair Jerome Powell saying interest rate hikes are not finished, “is definitely having a bigger effect on crypto markets more generally.”

Bullish Has No Exposure To Silvergate

Block.one also said its portfolio company Bullish has no exposure to Silvergate whose holding company announced Wednesday the bank would “voluntarily liquidate” its assets and wind down operations.

Conclusion

The exit of Block.one from their equity position in Silvergate illustrates how macroeconomic conditions can have an impact on crypto markets as well as how investors need to be aware of potential exposures within investments before investing into them and assess any associated risks appropriately before making such investments in future.

• Dubai has announced its new crypto regulatory framework, which requires all entities offering one or more crypto-related services to seek authorization and licenses.
• The framework is accompanied by four compulsory rulebooks as well as seven activity-based rulebooks that set out requirements for different types of services.
• Dubai is aiming to become a global hub for crypto and blockchain activity, and is courting companies to set up shop in the emirate.

Dubai’s New Crypto Regulatory Framework

Dubai has unveiled its ambitious new crypto regulatory framework, designed to attract firms seeking regulatory clarity. All entities planning to offer one or more crypto-related services in the jurisdiction must seek relevant authorization and licenses. The framework is accompanied by four compulsory rulebooks for service providers and seven activity-based rulebooks that set out requirements by the type of service offered.

Aim To Become A Global Hub For Crypto And Blockchain Activity

The emirate aims to become a global hub for crypto and blockchain activity, and is courting companies to set up shop in the emirate. By creating a transparent regulatory regime with clear licensing rules, Dubai hopes to create an environment conducive for innovation while ensuring investor protection.

Reaction From The Crypto Industry

The response from the industry has been positive overall, with many praising how “elegantly designed” the framework is. Talal Tabbaa, founder of regional crypto exchange CoinMENA was particularly impressed with this “groundbreaking” effort from Dubai regulators. He noted that it comes at a time when other countries are struggling with knowing where regulation should be headed due to global uncertainty surrounding cryptocurrency markets.

Background on Regulatory Changes

Crypto markets went into a tailspin in 2022, prompting regulators everywhere to double down on setting up or enforcing safeguards which left companies and investors uncertain of their future prospects. This move by Dubai shows that they are serious about creating an enabling environment for blockchain projects within their jurisdiction while ensuring investor protection remains paramount – something other countries would do well emulate if they want their own ecosystems to thrive too.

Conclusion

Dubai’s new regulations show that they are serious about becoming a leader in the global blockchain space whilst protecting investors at all times – something other countries would do well emulate if they want their own ecosystems to thrive too!

• The article discusses the effects of climate change on polar bears, which are facing numerous threats due to melting sea ice.
• Polar bears have been forced to adapt to their changing environment, including finding new sources of food and shifting their migration patterns.
• Conservation efforts such as reducing vehicle traffic in protected areas and establishing protected polar bear habitats are needed to help protect these animals.

The Effects of Climate Change on Polar Bears

Climate change is having a devastating effect on polar bears, with rising temperatures causing the Arctic sea ice to melt at an alarming rate. This means that polar bears now face numerous threats, from declining access to food sources and changes in migration patterns.

Adapting to a Changing Environment

Polar bears have had no choice but to adapt to the changing environment around them. Many now feed on terrestrial foods such as snow geese and eggs during the summer months when sea ice is scarce. They have also shifted their migration routes as sea ice recedes.

Conservation Efforts Needed

In order to protect these majestic creatures, conservation efforts must be put into place. These could include reducing vehicle traffic in protected areas, establishing designated polar bear habitats, and implementing strict regulations on hunting.

The Future of Polar Bears

It is clear that if we do not take action soon then the future of polar bears looks bleak. It is essential that more awareness is raised about this issue so that people can understand why it is important for us all to act now.

Conclusion

Climate change is having a devastating impact on polar bears and without urgent action they will continue to suffer further losses in terms of population numbers and habitat degradation. Conservation efforts are needed now more than ever before if we hope for these animals to survive into the future.

• Interactive Brokers (IBKR) has begun offering bitcoin and ethereum trading to professional investors in Hong Kong in partnership with crypto exchange OSL Digital Securities.
• Eligible clients include individuals with over 8 million Hong Kong dollars in investable assets and institutions with over 40 million Hong Kong dollars.
• Mixed signals have come out of Hong Kong in recent months regarding its future regulatory environment for crypto.

Interactive Brokers Rolls Out BTC, ETH Trading to Professional Investors in Hong Kong

Interactive Brokers (IBKR) has begun offering bitcoin and ethereum trading to professional investors in Hong Kong in partnership with crypto exchange OSL Digital Securities. Eligible clients include individuals with over 8 million Hong Kong dollars in investable assets and institutions with over 40 million Hong Kong dollars.

Crypto Policy Outlook for Hong Kong

Mixed signals have come out of Hong Kong in recent months regarding its future regulatory environment for crypto. Its Financial Services and Treasury Bureau said in October that it was exploring allowing retail customers to trade crypto or approving a crypto exchange-traded fund (ETF).However, Julia Leung (then the deputy CEO of the Securities and Futures Commission and now the CEO) called for tougher rules on crypto firms, highlighting how the FTX exchange’s collateralized token offerings could be seen as securities under existing regulations.

Cryptocurrency Platforms

Interactive Brokers and OSL’s aim is to allow clients to invest in bitcoin (BTC) and ether (ETH) via a single platform alongside stock, options, futures, bonds etc. The two firms teamed up to introduce crypto trading services back June citing the city’s high concentration of institutional and professional investors.

Hong Kong Ambition

Hong Kong’s government is looking to reclaim its status as Asia’s financial leader by creating a digital asset hub within the region which includes competitive tax rates for cryptocurrency businesses operating within the territory as well as appropriate regulations that do not stifle innovation yet protect investors from fraud or manipulation attempts within these markets.

Conclusion

The introduction of cryptocurrency trading services by IBKR will play an essential role into making this ambition a reality as it provides individuals with access to professional investment opportunities while also providing institutions much needed liquidity into these markets so they can gain exposure or hedge their positions accordingly.

• Former FTX Chief Sam Bankman-Fried has appealed a judge’s decision to make public the identities of two people who co-signed a $250 million bond for him.
• U.S. District Judge Lewis Kaplan ruled in favor of four separate petitions from news organizations seeking the names of those individuals who signed onto the bond earlier this month.
• Bankman-Fried’s lawyers had argued that there was a possibility of physical threats to the parties were reasons to keep their identities private.

Sam Bankman-Fried Appeals Judge’s Decision

Former FTX chief Sam Bankman-Fried has appealed a U.S District Judge Lewis Kaplan’s decision to allow the identities of two currently unidentified people who co-signed his $250 million bail bond to be made public, according to a filing made on Tuesday. It was already known that Bankman-Fried’s parents had also cosigned the bond, but the other names were kept private until now.

News Organizations File Suit

A slew of media companies, including Wall Street Journal, Bloomberg and CoinDesk had filed suit to get the court to release the identities of these two people, citing “the public’s interest in this matter cannot be overstated.”

Bankman-Fried’s Lawyers Argue Against Ruling

Bankman-Fried’s lawyers argued against ruling, citing potential physical threats as reason for keeping their identities private. Today, an appeal has been issued which sees Kaplan’s ruling being stayed until at least February 14th 2021.

Cryptocurrency Prices Remain High

The cryptocurrency market continues its bull run with prices remaining high across Bitcoin (BTC), Ethereum (ETH) BNB and XRP markets. At press time BTC is trading at $22,554 USD while ETH is trading at $1,621 USD and BNB is trading at $319 USD respectively .

Conclude & Disclaimer

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• Scott Fitsimones is the co-founder of CityDAO and author of “The DAO Handbook”, which discusses how decentralized autonomous organizations (DAOs) are being held back by coordination and regulatory problems.

• In 2021, DAOs began to venture into the real world and pursue acquisitions of real-world assets, such as rare art, a golf course, and a National Basketball Association team.

• These ambitious projects have been hampered by immense regulatory and coordination costs, but there are solutions to these problems.

The dawn of the 21st century brought with it a new wave of technology-enabled projects that leveraged the power of the internet to decentralize and democratize the way we organize and fund projects. Decentralized autonomous organizations (DAOs) emerged as a powerful way to coordinate and fund projects on a global scale, with no need for a centralized authority.

In 2021, these organizations began to break out of their blockchain confines and spill out into the real world. Leveraging a set of new DAO laws in Wyoming, Vermont and Tennessee, a wave of crypto-collectives began to pursue audacious acquisitions of real-world assets. These projects included the purchase of rare art, a golf course, the U.S. Constitution, a National Basketball Association team and even 40 acres of land (purchased by CityDAO, which was founded by the author of this article).

However, these ambitious projects have been hampered by immense coordination and regulatory costs. For instance, the purchase of the 40 acres of land required an extensive legal process, including working with multiple regulators, navigating complex tax rules and more. Additionally, there are the challenges of coordinating a decentralized collective of stakeholders, who all have their own interests and goals.

Fortunately, there are solutions to these problems. For example, a DAO can be structured to ensure that it always remains compliant with existing regulations. Additionally, DAOs can use technology such as decentralized governance protocols and stakeholder voting systems to ensure that all stakeholders are properly represented and their interests are taken into account.

Ultimately, the success of DAOs will depend on finding the right balance between freedom and responsibility. By leveraging the right technology and legal framework, DAOs can unlock the potential of the decentralized economy and usher in a new era of collective organization and funding.

• 0xd62, a Genesis OTC wallet, recently made one of the largest ETH transfers ever, just as Genesis Global Holdco LLC, its corporate sibling, filed for bankruptcy.
• Lisa Bragança, former SEC Enforcement Branch Chief and Bragança Law Managing Partner, discusses the first bankruptcy hearing and whether Genesis’ trading business is free of liability.
• The wallet, owned by Digital Currency Group, has been seen to move money around on blockchains, coinciding with big events at the company.

As Genesis Global Holdco LLC, the holding company of troubled cryptocurrency lender Genesis Global Capital, filed for Chapter 11 bankruptcy protection in late January, its corporate sibling, 0xd62, a Genesis OTC wallet, made one of the biggest movements of ETH ever. The wallet, owned by Digital Currency Group (DCG), has been seen to move money around on blockchains, coinciding with big events at the company.

The bankruptcy filing comes after the company was pummeled by two of the biggest industry collapses of 2022. Despite the turbulent history, the trading arm of the Genesis continues to move money around on blockchains. This recent ETH transfer was one of the largest ever, with speculation of similar activity potentially being seen in the future.

The potential implications of the bankruptcy filing has been a cause for concern as to whether Genesis’ trading business is free of liability. Lisa Bragança, former SEC Enforcement Branch Chief and Bragança Law Managing Partner, spoke to Nansen to discuss what to expect from Genesis’ first bankruptcy hearing, and whether the trading business can remain unaffected. Bragança commented that the court will assess the value of the assets and liabilities, and then determine a plan of action to distribute funds to creditors. The court will also assess the potential for certain creditors to remain unaffected from bankruptcy proceedings, such as the trading business.

As the court proceeds with the bankruptcy hearing, questions remain as to what will become of the Genesis trading business and whether it will remain unaffected. With 0xd62’s recent large ETH transfer, and its tendency to coincide with major events at the company, the future of the Genesis trading business remains to be seen.

• Argo Blockchain’s shares rose 14% on Monday after the company regained listing compliance with Nasdaq, thanks to a late December deal with Galaxy Digital to avoid bankruptcy and the recent rise in the price of Bitcoin.
• Nasdaq notified Argo that its shares did not comply with rules to be listed in the exchange because closing bid prices for its stock were below $1 for 30 consecutive days.
• Argo was given until June 12 of this year to regain its listing privileges with Nasdaq before potentially being delisted from the exchange.

Shares of bitcoin miner Argo Blockchain (ARBK) rose as much as 14% on Monday, signaling a potential return to the Nasdaq after the minimum bid for its stock surpassed $1 for the last 10 consecutive days. It marked a significant milestone for the company, which had been facing the possibility of being delisted from the exchange after Nasdaq warned it of a potential delisting in December of 2020.

The miners’ woes began when a brutal crypto winter weighed on Argo’s stock price, pushing its shares below the $1 minimum required to remain listed on Nasdaq. The miner was given until June 12 of this year to regain its listing privileges with Nasdaq before potentially being delisted from the exchange.

Argo was able to avoid potential delisting thanks to a late December deal with Galaxy Digital, which saw the company’s shares rise to $1.11. The miner also benefited from the recent rise in the price of bitcoin. The surge in the price of bitcoin has been credited with helping the miner’s fortunes, as the company’s share price is closely correlated to the price of the cryptocurrency.

The miner’s shares were also listed on the London Stock Exchange. The miner said it met the requirement to continue listing its shares on Nasdaq on Jan. 13, after bids for its shares remained above $1 for 10 consecutive days, according to a statement.

The successful listing compliance is a welcome sign for Argo shareholders, who had seen their shares tumble to as low as $0.38 on Dec. 16. Now, with the miner’s shares back above the $1 mark, it looks as if Argo may be able to avoid being delisted from the Nasdaq, at least for the time being.

The rise in Argo’s share price has been a welcome development for investors, who had been worried that the miner would be delisted from the Nasdaq. With the miner now back in compliance with the exchange, the stock may be able to maintain its upward trajectory.

For now, it appears as if Argo has managed to turn around its fortunes and is back on track to continue to trade on the Nasdaq. This is good news for investors, who will now be able to continue to trade the miner’s stock on the exchange.