CZ has started serving his sentence. Musk: I never discussed cryptocurrency with Trump.

Golden Weekly is a weekly blockchain industry summary column launched by Golden Finance, covering key news of the week, mining information, project dynamics, technological progress and other industry dynamics. This article is one of the news weekly, taking you to a glance at the major events in the blockchain industry this week.

Headlines

▌CZ has begun serving his sentence in a federal prison in California

CZ has begun serving his sentence in a low-security federal prison in Lompoc, California. CZ's defense team Latham & Watkins confirmed that CZ is now in custody. In November 2023, CZ pleaded guilty to violating the Bank Secrecy Act for failing to maintain an effective anti-money laundering program; in April of this year, CZ was sentenced to four months in prison.

▌Bitfinex analyst: EU elections may hint at the future direction of cryptocurrency regulation

Bitfinex head of derivatives Jag Kooner said that the EU parliamentary elections next week may provide further clues about how cryptocurrencies are regulated in that market. Kooner said that a right-wing turn could lead to tighter cryptocurrency controls, and a pro-cryptocurrency outcome could accelerate supportive regulation such as MiCA. Investors will be watching the EU elections for regulatory clues, which could have a significant impact on the broader cryptocurrency market in June and the following months.

▌Musk: Never discussed cryptocurrency with Trump

Musk posted a message on the X platform to clarify that he had never discussed cryptocurrency with Trump. Musk said that although he generally supports the transfer of power from government to the people, cryptocurrency can do this.

▌SBF returns to the New York prison in the United States that he left a week ago

Sam Bankman-Fried, co-founder of the digital currency exchange FTX, returns to the New York prison in the United States that he left a week ago.

▌Foreign media: Trump accepts Bitcoin Lightning Network payment for campaign donations

According to Bitcoin Magazine, Donald Trump became the first US president to accept Bitcoin Lightning Network payment for campaign donations.

Policy

▌PayPal obtains New York State Crypto Trust License

The New York State Department of Financial Services (NYDFS) recently granted PayPal Digital a limited purpose trust license, which is usually held by digital asset custodians and stablecoin issuers. Last August, PayPal launched its first stablecoin issued by a large technology company, PYUSD, which is technically issued by Paxos Trust Company, which also holds a NYDFS trust license and has been a partner of PayPal since the launch of its cryptocurrency service. The trust license may be intended to take over the custody of PayPal customers' crypto assets and internalize the issuance of stablecoins. Currently, the market value of PYUSD is close to US$400 million, a significant increase from US$190 million in early April. The top five wallets account for 71% of the stablecoin balance, and the main holders include Paxos, Crypto.com, Curve (DeFi), Defiance Capital and Frax (DeFi). Among them, Crypto.com and Bullish Exchange hold US$103 million and US$23 million respectively. Last November, the U.S. Securities and Exchange Commission (SEC) issued a subpoena requesting documents related to the issuance of the PYUSD stablecoin. PayPal did not respond to the specific purpose of this trust license before the release.

▌The Hong Kong government has communicated with the Hong Kong Securities and Futures Commission to process all virtual asset platform applications as soon as possible

According to the Hong Kong media Wen Wei Po, the Hong Kong government will maintain close communication with the Securities and Futures Commission to allow the Securities and Futures Commission to process all platform applications as soon as possible, so that citizens and investors have more secure investment options. Looking ahead, Hong Kong will further improve the regulatory framework, including regulating virtual asset over-the-counter trading service providers, to build a stable ecosystem for the virtual asset industry and promote its responsible and sustainable development. The Hong Kong Securities and Futures Commission emphasized yesterday that although those virtual asset trading platforms that are deemed to have been licensed have promised to strengthen their policies, procedures, systems and monitoring measures to comply with the regulatory requirements of the Securities and Futures Commission, they still need to show the actual implementation and effectiveness of these measures to be satisfied by the Hong Kong Securities and Futures Commission. Before these platforms are officially licensed, the Securities and Futures Commission does not expect them to actively promote their services or establish business relationships with new retail customers.

▌Hong Kong Securities and Futures Commission: On-site inspection of the business of applicants for virtual asset platform licenses

The Hong Kong Securities and Futures Commission stated that in the next few months, it will conduct on-site inspections of the business of applicants for virtual asset trading platform licenses to ensure that platforms waiting for licenses comply with regulatory requirements. If violations are found, the application will be rejected promptly, and other regulatory actions will be taken according to the situation. The one-year transition period for the virtual asset trading platform licensing system will end on June 1. The Securities and Futures Commission reiterated that all platforms operating in Hong Kong must obtain a license or have applied for a license. The latest data shows that there are two platforms that have obtained a license, and 18 have applied for approval. The Commission also reminded all platforms and responsible persons that they must prevent mainland residents from using their virtual asset services in accordance with legal requirements.

▌Canada is expected to adopt the international crypto-asset reporting framework (CARF) for taxation by 2026

According to a supplementary document to the 2024 budget, Canada is expected to adopt the international crypto-asset reporting framework (CARF) for taxation by 2026. CARF will impose new reporting requirements on crypto-asset service providers (CASPs), such as cryptocurrency exchanges, crypto-asset brokers and dealers, and crypto-asset ATM operators, whether individuals or corporate entities.

▌US lawmakers urge the US SEC to approve spot Ethereum ETF

As expectations grow that a spot Ethereum (ETH) exchange-traded fund (ETF) will be approved in the United States, members of the House of Representatives are urging securities regulators to approve the new product. On May 22, bipartisan members of the House of Representatives, including Majority Whip Tom Emmer and Democrat Josh Gottheimer, wrote to SEC Chairman Gary Gensler, asking the SEC to approve a spot Ethereum ETF. The lawmakers believe that a potential spot Ethereum ETF will provide investors with the opportunity to invest in ETH in a more regulated and secure form. "We urge the Commission to maintain a consistent and fair approach when reviewing upcoming applications for other digital asset-backed ETFs," the lawmakers wrote, adding: "Specifically, the Commission should apply the same principles it provided when approving spot Bitcoin ETPs when evaluating pending Ethereum ETF applications, as the legal considerations associated with Bitcoin also apply to Ethereum." ▌U.S. Treasury Department: No intention to ban cryptocurrency mixers, aims to enhance transparency

At the Consensus conference, Brian, the U.S. Treasury Under Secretary for Terrorism and Financial Intelligence, Nelson said the Treasury Department has no intention of banning cryptocurrency mixing services. Nelson explained that the Financial Crimes Enforcement Network (FinCEN) 2023 proposal aims to list mixers as a "major money laundering concern" and require virtual asset service providers (VASPs) to report crypto transactions involving mixing to promote transparency, rather than ban mixers. While industry insiders are concerned that the proposal will lead to a blanket ban on cryptocurrency mixing services, Nelson clarified that this is only intended to prevent money laundering and the financing of terrorism. The Treasury Department hopes to work with the industry to develop tools that enhance privacy without supporting illegal activity.

Blockchain Applications

▌Base Engineer Proposes Fjord Network Upgrade for OP Stack

Base Engineer Roberto Bayardo Proposes OP Stack is upgrading the Fjord network. The upgrade includes the introduction of EIP-7212, which utilizes the secp256r1 elliptic curve for secure and efficient signature verification, greatly reducing the gas cost of smart wallet applications. In addition, the upgraded version also uses Brotli compression technology to reduce data availability costs. EIP-7212 has been implemented on Polygon, and other L2s such as Arbitrum and zkSync are expected to support it. The Fjord upgrade aims to further reduce the overall transaction fees on the OP Stack chain. The upgrade is scheduled to be implemented on July 10, 2024 and is currently awaiting approval from the Optimism Governance Committee.

▌MoonPay launches Web3 platform for brands and digital experiences

Crypto infrastructure company MoonPay has increased its investment in services for brand digital experiences. According to an announcement on May 28, the company will launch a Web3 tool platform dedicated to digital interactions. The new platform combines existing services provided by MoonPay with new tools, including crypto payments, identity verification, authentication, ticketing, tokenization, and NFT casting.

▌Jiading District, Shanghai: Building Metaverse Infrastructure Supporting Metaverse Technology to Empower the Automotive Industry

The People's Government of Jiading District, Shanghai issued the "Action Plan for Further Promoting the Construction of New Infrastructure in Jiading District (2024-2026)". It mentioned that the construction of Metaverse infrastructure. Relying on Yuanchuang Bay, Nanxiang Game Valley and other positions, the comprehensive application of AIGC, three-dimensional digital space, virtual digital people, AR/VR, blockchain and other Metaverse technologies will create interactive, situational, and immersive Metaverse demonstration application scenarios. Support Metaverse technology to empower the automotive industry, focus on technology research and development, scenario creation, technology transformation and other links around the sub-sectors of "Metaverse + Smart Cockpit" and "Metaverse + Smart Manufacturing", and create a benchmark and model for the automotive Metaverse industry. Relying on the "Love Jiading" digital display and promotion platform, promote the digital service supply of cultural and tourism venues such as public libraries, museums, and scenic spots. Encourage multiple entities to participate in the construction of the Shanghai Cultural Data Service Platform, support industry entities to carry out data collection and processing in accordance with the law, and guide the sharing and use of data resources.

▌Hong Kong Acting Financial Secretary: Will fully promote financial innovation in key areas including DeFi and virtual assets related to Web3

Hong Kong SAR Government Acting Financial Secretary Wong Wai-lun delivered a keynote speech at the 2024 Caixin Summer Summit held today, saying that Hong Kong will continue to fully promote financial innovation, with key areas including DeFi (decentralized finance) related to financial technology, green finance, Web3 (third-generation Internet), virtual assets, etc. The SAR government will ensure that financial risks are stabilized at a controllable level. On the other hand, continue to expand the interconnection between Hong Kong and mainland China's financial markets.

▌Pacmoon announces the launch of v2 with the Social Validator concept

Blast Ecological Meme Project Pacmoon announced the launch of v2 with the Social Validator concept. The V2 "Social Validator" model mainly includes: 1. Creators' tweets about Pacmoon; 2. Validators like creators' tweets 3. Creators get points based on how many validators like posts (and how much they hold); 4. Validators can allocate daily points according to the number of creators' posts they like. It is reported that the qualification limit for participating validators is to hold 10,000 PAC tokens. Pacmoon said that it will airdrop tokens worth $1 million per month in the future, of which 70% will be allocated to creators and the remaining 25% will be allocated to validators.

Cryptocurrency

▌PayPal Stablecoin PYUSD to be launched on Solana

PayPal chose the Solana blockchain to expand its stablecoin PayPal USD (PYUSD), marking its first expansion outside the Ethereum ecosystem. According to the announcement, PYUSD has been added to the Solana network, allowing users to trade at a lower cost. The move is intended to expand the use of the PYUSD stablecoin as a payment method for small and daily purchases.

▌HashKey Global launches LaunchPool, with Polyhedra Network as its first project

Virtual asset exchange HashKey Global announced the launch of LaunchPool and launched its first project, Polyhedra Network (ZK), staking mining, providing users with 325,000 ZK tokens with a total value of approximately 500,000 USDT as rewards. The activity period is from May 30 to June 4, 2024. HashKey Global's Launchpool platform aims to provide users with a simple cryptocurrency staking solution. Users only need to stake their existing cryptocurrencies into the pool and can withdraw the staked tokens at any time.

▌Bitcoin miner Riot seeks to acquire rival Bitfarms

Riot Platforms Inc. has acquired a 9.25% stake in Bitfarms Ltd. and plans to make a public takeover bid for the smaller bitcoin miner, but the latter rejected Riot's takeover offer last month, according to people familiar with the matter. Riot proposed to acquire Bitfarms for $2.30 per share in cash and stock, equivalent to an equity value of $950 million, the people said. Because the details are not yet public, these people asked not to be named. People familiar with the matter said Riot believes that recent management changes at Bitfarms indicate problems with corporate governance, and the company also plans to call for a vote to add directors to the Canadian company.

▌Binance France has replaced co-founder Zhao Changpeng with two new shareholders

A Binance spokesperson said that Binance France has replaced co-founder Zhao Changpeng with two new shareholders, a move aimed at ensuring that Binance does not lose the right to operate in the EU's second-largest economy. Under French regulations, a company's majority shareholder cannot be a criminal. The EU's Crypto Asset Market Regulation (MiCA) allows companies to "passport" their licenses from one base country to 27 other EU countries.

▌JPMorgan: Market's initial reaction to spot Ethereum ETF may be negative

The U.S. Securities and Exchange Commission (SEC) approved a spot Ethereum exchange-traded fund (ETF), raising expectations of large inflows. However, JPMorgan warned that these hopes may be too optimistic compared to spot Bitcoin ETFs. JPMorgan analysts outlined several reasons for their cautious outlook. They detailed Bitcoin’s “first-mover advantage” and recent halving event as significant demand catalysts for Bitcoin ETFs, which Ethereum lacks. Noting that Ethereum’s proof-of-stake mechanism does not provide a similar demand boost, the analysts stressed that the Bitcoin halving event “acts as an additional demand catalyst for spot Bitcoin ETFs.” In addition, they noted that the exclusion of staking in spot Ethereum ETF filings makes these funds “less attractive than platforms that offer staking benefits.” Bitcoin’s position as a competitor to gold in portfolio allocations further increases its demand for Ethereum, which is primarily viewed as a utility token. Additionally, JPMorgan detailed that Ethereum’s lower liquidity makes it less attractive to hedge funds and quantitative funds.

Important Economic Dynamics

▌Bostic of the Federal Reserve: The fourth quarter may be the time for the Federal Reserve to cut interest rates

Bostic of the Federal Reserve said that the breadth of price increases is still quite significant, and the narrowing of the inflation range will increase the confidence of the Federal Reserve to cut interest rates. The fourth quarter may be the time for the Federal Reserve to cut interest rates.

▌Williams of the Federal Reserve: I don’t know when to cut interest rates, it will depend on data performance

Williams of the Federal Reserve said that he didn’t know when to cut interest rates, it would depend on data performance; he didn’t feel there was an urgency in adjusting monetary policy; he didn’t need inflation to reach 2% to cut interest rates; he expected the inflation rate to reach 2% in early 2026; raising interest rates was not his baseline expectation. In addition, Fed's Williams also said that there is ample evidence that monetary policy is restrictive; PCE inflation is expected to fall back to 2.5% in 2024 and close to 2% in 2025; US inflation is expected to resume slowing in the second half of 2024; GDP is expected to grow by 2%-2.5% in 2024, and the unemployment rate is around 4%; the recent data does not mean an interruption in the downward trend of inflation.

▌Fed Kashkari: No more than two rate cuts are expected in 2024

Fed Kashkari said that he certainly does not expect the Fed to cut interest rates more than twice in 2024.

▌Interest rate swap market pricing remains stable, and the Fed is expected to cut interest rates at least once in 2024

After the release of US PCE data, interest rate swap market pricing remained stable, and the Fed was expected to cut interest rates at least once in 2024.

Disclaimer: As a blockchain information platform, Golden Finance publishes articles for information reference only and is not intended as actual investment advice. Please establish a correct investment philosophy and be sure to raise your risk awareness.