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Coinbase, a leading U.S. cryptocurrency exchange, has taken legal action against the Securities and Exchange Commission (SEC), filing its opening brief in a lawsuit over the lack of clear regulatory guidelines for the crypto industry. The exchange argues that the SEC's refusal to consider its rulemaking petition violates administrative norms, leaving the industry in a state of uncertainty due to undefined definitions and regulations. This legal battle highlights the pressing need for transparent and collaborative rulemaking to address the complexities of the rapidly evolving crypto landscape. The outcome of this legal battle could significantly impact the regulatory landscape for digital assets in the U.S., shaping the future direction of crypto regulations and enforcement practices. As the debate over crypto regulation continues, finding a balance between fostering innovation and maintaining regulatory oversight remains a critical challenge for policymakers and industry stakeholders.

The Bank of Israel has announced plans to introduce a central bank digital currency (CBDC), dubbed the digital shekel, with innovative features such as the potential for interest accrual. Set to revolutionize payment systems, the digital shekel will operate on a two-tier model, offering instant transactions, support for multiple payments, and offline functionality, while also incorporating limitations on balances. The introduction of the digital shekel is a significant step towards modernizing Israel's financial infrastructure, offering both efficiency and privacy. By prioritizing user privacy and introducing interest-bearing capabilities, the Bank of Israel aims to strike a balance between transparency and user-centric design. However, the cautious approach to implementation underscores the complexities involved in launching a CBDC, highlighting the need for careful planning and consideration of various factors before full-scale adoption.

The Financial Conduct Authority (FCA) in the United Kingdom has announced its approval of crypto-based exchange-traded notes (ETNs) for professional investors. These ETNs, defined as bonds tracking the performance of underlying assets, will be available exclusively for professional investors due to concerns about their suitability and potential risks for retail investors. The FCA's decision to allow crypto ETNs for professional investors reflects the growing interest in digital assets within institutional circles. However, the regulator maintains its stance against offering such products to retail consumers, citing concerns about their high risk and lack of regulation. This move underscores the ongoing efforts to balance innovation and investor protection in the evolving crypto landscape, highlighting the importance of comprehensive regulatory frameworks to safeguard market participants.

A coalition of Bitcoin developers has established the Layer 1 Foundation to formalize the BRC-20 fungible token standard, responding to the surge in popularity of Bitcoin Ordinals and meme coins on the blockchain. Led by pseudonymous BRC-20 creator Domo, the foundation aims to ensure transparency and trust in the protocol's governance, emphasizing simplicity in technical architecture and a safety-first approach to protocol changes. With key industry players like Unisat and Ordinals aggregator Best in Slot onboard, the foundation seeks to prevent potential conflicts and hard forks by fostering mutual discussions and open-source protocol-level changes. By uniting major players under a common set of operating principles, the foundation aims to mitigate risks associated with protocol updates and ensure the interests of users remain paramount. While disputes over protocol changes are inevitable, the foundation's commitment to transparency and community involvement sets a positive...

The London Stock Exchange's acceptance of applications for Bitcoin and Ether Exchange-Traded Notes (ETNs) marks a significant step in integrating cryptocurrencies into mainstream finance. By allowing investors to track digital asset price movements during London trading hours, crypto ETNs provide a regulated and accessible avenue for participation in the crypto market. This development underscores the growing recognition of cryptocurrencies as a legitimate asset class by both financial institutions and regulators, catering to the increasing demand for secure and regulated investment options in the digital currency space. It has the potential to enhance liquidity and stability in the digital asset market, attracting institutional investors seeking regulated avenues for exposure to cryptocurrencies. Moreover, this move may pave the way for the listing of a broader range of crypto products on the LSE, further cementing the integration of digital assets into the global financial...

Sam Altman has been reinstated to the board of OpenAI along with three new members, marking a significant turn of events following his abrupt dismissal from the company in November 2023. Altman's return comes after a period of turmoil triggered by his removal and subsequent protests from OpenAI employees. The decision to bring Altman back follows an investigation by law firm WilmerHale, which highlighted the unintended consequences of his initial dismissal on the company's stability. Despite the controversy, Altman, along with Greg Brockman, retains the trust of the OpenAI board as preferred leaders for the organization's future. Altman's return to the OpenAI board underscores the complexities inherent in leadership transitions within tech organizations. His reinstatement suggests a recognition by the board of Altman's value and leadership qualities, despite the initial reasons for his removal. The rapid reversal of Altman's dismissal also highlights the importance of employee...

Affluent residents of London are embracing cryptocurrencies for rent payments, marking a significant shift in the capital city's real estate landscape. According to a report by CityAM, wealthy individuals are opting to settle their rent using digital currencies, citing the asset class's growing appeal and convenience. Real estate firm Knightsbridge Prime Property has partnered with virtual currency service provider Bitcashier to facilitate such transactions, catering to the needs of their high-net-worth clientele. One notable instance involved a luxury apartment tenant paying £45,000 per week in Bitcoin, illustrating the increasing acceptance of cryptocurrencies in high-value transactions. The adoption of cryptocurrencies for rent payments in London's property market signifies a departure from traditional payment methods, driven by the asset class's flexibility and borderless nature. Renters benefit from real-time settlements and reduced processing fees, while maintaining anonymity...

The Hong Kong Monetary Authority (HKMA) has launched "Project Ensemble," a venture aimed at developing a wholesale central bank digital currency (wCBDC) to enhance Hong Kong's capacity in handling digital asset transactions. By introducing this project, Hong Kong seeks to solidify its position as a leader in the tokenization sector, transforming assets into digital tokens. Project Ensemble, initiated on March 7, targets the establishment of a financial infrastructure facilitating seamless digital money transfers between banks through CBD. Initially focusing on digitized bank deposits for public use in tokenized asset transactions, the project pledges to modernize Hong Kong's financial ecosystem. By merging digital and traditional finance, the initiative aims to explore the digitization of various assets, including green bonds and infrastructure projects. The introduction of a wCBDC Sandbox for testing digital currency applications reflects the HKMA's proactive approach to embracing...

Worldcoin, the biometric iris scanning project, has filed a complaint against the actions of the Spanish Data Protection Agency (AEPD) for imposing a ban on its operations in Spain. Tools For Humanity, the company behind Worldcoin, argues that the AEPD's actions circumvent established procedures under the European Union's General Data Protection Regulation (GDPR). The company contends that the AEPD lacks jurisdiction to intervene and that the appropriate authority is the Bavarian State Office for Data Protection Supervision (BayLDA), where Worldcoin is incorporated. While the ban order has led to the pause of World ID verification services in Spain, the World App services related to the project's digital wallet remain accessible. By invoking the GDPR and asserting jurisdictional issues, Tools For Humanity aims to contest the legality of the AEPD's actions and uphold compliance with established regulatory frameworks. However, the outcome of this legal battle will likely have broader...

The Hong Kong Monetary Authority (HKMA) announced the initiation of Project Ensemble, aimed at developing a new wholesale central bank digital currency (wCBDC) to facilitate tokenization. This project will focus on creating innovative infrastructure for interbank settlement using wCBDC, initially concentrating on tokenized deposits for transactions involving tokenized assets. The HKMA plans to establish a sandbox to research and test various tokenization use cases, including settlement of tokenized real-world assets. Additionally, the formation of a wCBDC Architecture Community comprising local and multinational banks, key players, and the HKMA's CBDC Expert Group is underway to facilitate collaboration. While the announcement did not mention involvement by the Bank for International Settlements (BIS), it highlighted the HKMA's participation in various BIS projects and experiments conducted with local and Chinese banks. The HKMA's recent guidance on the sale and distribution of...

The Bangko Sentralng Pilipinas (BSP) is moving forward with its plans to study wholesale central bank digital currency (wCBDC), with a pilot project named Project Agila expected to conclude by the end of the year. BSP's deputy governor, Mamerto Tangonan, described the project as a "learning exercise" aimed at exploring the democratization of access to securities and investment instruments, making them more accessible to the general public. Six domestic banks are participating in the pilot alongside the BSP, utilizing wCBDC for fund transfers among themselves. BSP Governor Eli Remolona emphasized that the central bank is solely considering wCBDC to address concerns about bank disintermediation, clarifying that the CBDC would not operate on a blockchain. BSP by engaging in pilot projects with domestic banks, the BSP aims to understand the potential applications and implications of wCBDC, particularly in democratizing access to investment opportunities. However, challenges such as...

Do Kwon, the mastermind behind Terraform Labs, finds himself embroiled in a gripping extradition saga as Montenegro prepares to send him back to South Korea. Kwon, accompanied by a Terra executive, was apprehended attempting to cross borders with forged documents. While his colleague, Han Chang-joon, was already extradited to South Korea last February, Kwon faces a four-month sentence in Montenegro for his involvement. Despite potential legal challenges, Kwon's future seems destined for South Korea, with both the U.S. and South Korea vying for jurisdiction over his alleged crimes, including securities fraud. The extradition decision, following a year of legal battles, highlights the complexity and high stakes involved in Kwon's case. Kwon's extradition saga underscores the intersection of international law and cryptocurrency regulation, with multiple jurisdictions seeking to prosecute him for alleged financial crimes. The case highlights the challenges of enforcing regulatory...