The White House has issued a statement opposing the passage of the crypto bill Financial Innovation and Technology for the 21st Century (FIT21) Act ahead of the House vote today. However, the Biden Administration offered to collaborate with Congress to establish a balanced regulatory framework for digital assets. The White House’s statement was preceded by […]
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SEC Opposes Coinbase’s Appeal Request in Ongoing Legal Battle
The U.S. Securities and Exchange Commission (SEC) has urged a federal court to deny Coinbase’s interlocutory appeal, following a recent court decision that allowed a lawsuit involving the SEC and the cryptocurrency platform to proceed. Last month, Coinbase sought appellate review after failing to get the case dismissed, marking a significant development in the ongoing […]
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Crypto Titan Digital Currency Group Opposes Genesis’ Restructuring Plan for Favoring Select Creditors
In a legal document filed on Feb. 6, 2024, the crypto juggernaut, Digital Currency Group (DCG), voiced opposition to Genesis’ revised bankruptcy strategy for multiple concerns. DCG argues that the plan favors certain creditors over others unjustly, and the company’s legal team charges Genesis with violating their fiduciary responsibilities and presenting the proposal in bad faith.
DCG Raises Legal Concerns Over Genesis’ Bankruptcy Strategy, Seeks Plan Rejection
Attorneys from Weil, Gotshal, and Manges LLP, representing Digital Currency Group (DCG), have lodged a formal objection against Genesis‘ updated bankruptcy scheme, alleging it contravenes Section 1129 of the Bankruptcy Code. DCG argues the plan constitutes an impermissible “cramdown” that fails to align with legal standards for bankruptcy, purportedly allowing creditors to claim recoveries exceeding the values assessed at the filing date, among other infractions. Adding to the complexity, Genesis operates under the DCG umbrella.
DCG further argues that the scheme’s allocation rules are overly intricate and muddled, breaching certain established norms of bankruptcy legislation. The company maintains that these rules disproportionately benefit a select group of creditors at the expense of others, effectively depriving DCG of significant financial and governance rights. The legal team deems the preferential treatment of certain creditors through setoff rules and the modification of DCG’s rights as an equity holder to be against the law.
“The amended plan also seeks to disenfranchise DCG in a myriad of other ways, including stripping DCG of essentially all its rights in its capacity as an equity holder with no legal authority to do so,” the court filing details. “In short, the amended plan renders DCG an equity holder in name only. This kind of naked seizure of equity holder rights in direct contravention of law and public policy is the very definition of bad faith.”
The DCG attorneys add:
Because the amended plan was not proposed in good faith and violates numerous principles of law, it should be rejected.
DCG’s objection comes on the heels of Genesis seeking authorization to sell off .4 billion in Grayscale’s Bitcoin Trust (GBTC). This move was promptly lauded by the New York-based Gemini, which called it an “important step” toward settling. In the court document filed on Tuesday, DCG expressed disapproval of the process used to craft the revised plan, criticizing it as the outcome of alleged secretive talks that left DCG out and unjustly advantaged certain creditors to the detriment of DCG.
What do you think about DCG’s objection to Genesis’ amended bankruptcy plan? Share your thoughts and opinions about this subject in the comments section below.
Terra Validator Opposes USTC Burning, Pushes Alternative Plan To Regain Dollar Peg
A Terra Classic community member with the X handle Rexyz has kicked against burning USTC tokens to enable the stablecoin to recover its dollar peg.
According to the X post made on September 18, Rexyz outlines an alternative solution that may lead to USTC being re-valued as well as push Terra Classic (LUNC) price to reach the price mark.
Since the collapse of the Terra ecosystem in 2022, the USTC stablecoin has lost its dollar peg and now trades at 98.8% below the mark.
Following this catastrophic event, members of the Terra Class community have continued to submit various proposals to burn more USTC contains as a deflationary mechanism that could result in the stablecoin recovering its dollar peg.
Currently, the Terra Classic community is voting on a proposal that aims to direct the Binance exchange to start burning 50% of USTC every month. It is believed that if the world’s biggest exchange aids in reducing the circulating supply of USTC, it could significantly boost the token’s rise to .
A Reverse Split Is More Efficient Than Buring Tokens, Community Member Says
According to Rexyx, burning USTC tokens may not be the best way of regaining the stablecoin’s dollar peg. The Terra Classic community member explains that there are currently 9.8 billion USTC tokens in circulation, and users will need to burn massive amounts of USTC to record any significant rise in value.
LUNC to reach ?
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Its a long post, but this 'could' rescue #TerraClassic, $LUNC and $USTC at speed.
Why I think burning $USTC is maybe not the best use of your money.
Currently there is nearly 9.8bn $USTC minted, to make a real difference to the price you need to…
— Rexyz (@RexYellerBelly) September 18, 2023
Alternatively, Rexyz proposes that the Terra community implements a reverse split of the USTC token, which leads to a revaluation of the stablecoin, albeit at some investment cost.
In this proposal, Rexyz gives an example, stating that if 100 USTC is the current equivalent of , a 100/1 reverse split would convert 100 USTC to just one USTC token, which will now be valued at . Through this mechanism, USTC holders retain their holdings’ current value, and there is no need to burn more tokens.
However, Rexyz notes that a reverse split would erase all existing network debt. This means that USTC investors will have to forfeit whatever losses incurred during the collapse of the Terra ecosystem.
Could A USTC Reverse Split Rescue The Terra Classic Ecosystem?
Interestingly, Rexyz also stated that the revaluation of the USTC token could initiate a recovery of the Terra Classic network. The community member explained that once USTC regains its dollar peg and the LUNC-USTC swap mechanism is tested with the implementation of improved capital controls, investors can start burning trillions of LUNC.
Related Reading: USTC Surprises With Nearly 60% Rally – What’s Going On?
Rexyx believes this will lead to a massive rise in LUNC’s value, and the altcoin may even record new all-time highs. Rexyz advises the Terra community to implement the reverse split of USTC and “pin” their hopes of recovering past losses by investing in LUNC, which also lost 99.9% of its market value in 2022.
However, the Terra classic community member states this initiative should executed upon research and approval by the relevant experts.
Robert F. Kennedy Jr. Advocates for Bitcoin and Opposes CBDCs in Candid Interview
U.S. presidential candidate Robert F. Kennedy Jr. spoke in an interview with the New York Post on June 22, 2023, and discussed a wide range of topics, including vaccines and bitcoin. Kennedy stated that if he becomes president, he will ensure that the U.S. maintains “policies that support bitcoin and the freedom to transact.”
RFK Jr. Blasts Mainstream Media Insisting He’s ‘Never Been Anti-Vaccine’
On Thursday, Robert F. Kennedy Jr., the son of former U.S. attorney general and senator Robert F. Kennedy and the nephew of former U.S. president John F. Kennedy, discussed a few specific topics with Lydia Moynihan of the New York Post. Kennedy has recently garnered attention following a challenge from podcaster Joe Rogan to Houston-based scientist Peter Hotez for a vaccine debate with Kennedy. The situation intensified when Elon Musk, owner of Twitter and Tesla executive, tweeted that Hotez is “afraid of a public debate, because he knows he’s wrong.”
In the interview with Moynihan, the Democratic presidential hopeful emphasized that he is not an “anti-vaxxer,” a term broadly used to describe individuals skeptical of vaccination, including the new Covid-19 vaccines. “I am not and have never been anti-vaccine,” Kennedy stressed on Thursday. “I’ve always said that I’m for safe vaccines and robust science and for regulatory agencies that are free from conflicts of interest and financial entanglements with the pharmaceutical industry.”
Kennedy added:
I urge people to listen to what I actually say instead of listening to the litany of derisive sound bites that the mainstream media offers to mischaracterize and distort my positions on the whole range of issues.
Kennedy Reasserts Promise to Protect Bitcoin While Stressing CBDCs Are ‘Instruments of Control and Oppression’
Kennedy also discussed bitcoin (BTC) during the Post interview, after expressing his belief last month that the cryptocurrency asset is an “exercise in democracy.” Following that statement, the U.S. presidential candidate made an announcement on May 19 that he would accept BTC for campaign donations.
“I will make sure that we have policies that support bitcoin and the freedom to transact and that allow individuals to manage their own bitcoin wallets, nodes, and passwords,” Kennedy told the Post on Thursday. “I will allow only the narrowest controls that are necessary to prevent money laundering. I oppose central bank digital currencies because they are instruments of control and oppression, and are certain to be abused.”
It is not the first instance where Kennedy has discussed central bank digital currencies (CBDCs), as he has previously expressed concerns that these financial instruments could result in “financial slavery” and “political tyranny.”
In late May, Kennedy strongly criticized the U.S. Securities and Exchange Commission (SEC) for its recent crackdown on the crypto industry and advocated for SEC commissioners who are supportive of crypto. “What they’re doing is obscure, it’s not transparent, and it’s not bringing transparency to our system,” Kennedy said at the time.
Incumbent president Joe Biden may face a challenge, as a poll conducted by The Economist and YouGov pitted him against Kennedy and other 2024 presidential candidates, with Kennedy emerging as the frontrunner. However, the mainstream media swiftly shifted the focus by highlighting a Quinnipiac University poll that showed Biden’s favorability surpassing Kennedy’s. The Washington Post noted that favorability is a “tricky metric” in an article published the same week.
What are your thoughts on Robert F. Kennedy Jr.’s stance on bitcoin and his presidential bid? Share your thoughts and opinions about this subject in the comments section below.
Russia Opposes French President Macron Attending BRICS Summit, Citing ‘Hostile and Unacceptable’ Policy Toward Moscow
The BRICS leaders’ summit will take place in a couple of months, and French President Emmanuel Macron has reportedly expressed interest in attending. However, Russia believes it would be “inappropriate” for the French president to attend. “Clearly, leaders of states that pursue such a hostile and unacceptable policy towards us” are inappropriate BRICS guests, said a top Russian official.
Russia Says No to Macron Attending BRICS Summit
Russian Deputy Foreign Minister Sergey Ryabkov was asked by reporters Thursday about the possible participation of French President Emmanuel Macron in the upcoming BRICS leaders’ summit. South Africa is currently holding the BRICS presidency and is hosting the summit in Johannesburg from August 22 to 24. The BRICS nations comprise Brazil, Russia, India, China, and South Africa.
The Russian official told reporters that Russia has informed its South African partners that the presence of the French president at the upcoming BRICS summit would be “inappropriate.” He was quoted by Tass publication as saying: “We have sent a signal that, with all due respect to the prerogatives of the host [South Africa] to invite individual guests, it is necessary to proceed from the fact that BRICS is an alliance of countries that categorically rejects the use of unilateral sanctions for resolving foreign policy issues. Given this, the presence of Western officials would clearly be inappropriate there.”
Ryabkov was further quoted by RIA news agency as saying:
Clearly, leaders of states that pursue such a hostile and unacceptable policy towards us, discussing with such emphasis and conviction that Russia should be isolated on the international stage, and share the common NATO line on inflicting a so-called strategic defeat on us — such a leader is an inappropriate BRICS guest.
“And we are not hiding this approach of ours, we have told our colleagues from South Africa. We expect that our point of view will be fully accepted,” the official added.
Kremlin spokesperson Dmitry Peskov recently said that Russia does not know in what capacity or for what reasons Macron might attend the BRICS leaders’ summit, Tass conveyed, quoting Peskov as saying: “Frankly speaking, we don’t know in what capacity or why. We don’t have such information at hand.”
French Foreign Affairs Minister Catherine Colonna said Tuesday following talks in Johannesburg with her South African counterpart, Naledi Pandor, that Macron would consider taking part in the BRICS summit should he be formally invited. She noted that the decision to invite the French president “must be taken, not by France, but by the BRICS and first and foremost by South Africa, which is the host of the summit.”
Do you think French President Emmanuel Macron should attend the BRICS leaders’ summit? Let us know in the comments section below.
China Opposes Recent US Sanctions for Chinese Firms, Criticizes ‘Long-Arm’ Jurisdiction Policies
The government of China protested the enactment of sanctions on a series of national companies by the U.S., barring them from doing business with U.S.-based entities for allegedly collaborating with Russia. China’s Commerce Ministry criticized the move, saying it is a “typical form of long-arm jurisdiction,” which damages the rights and interests of these companies.
China Opposes the Enactment of Sanctions on National Companies
The government of China has expressed its disagreement with the recent enactment of a series of sanctions against a number of national companies for supposedly collaborating with Russia. The companies, which are mostly in the electronics business, were allegedly used as bridges, purchasing U.S. technology in order to deliver it to Russia, sidestepping the sanctions established by the Office of Foreign Assets Control (OFAC) on Russian entities.
A statement from China’s Commerce Ministry accused the U.S. of overreaching with this move. The statement rejected these measures, stating:
It is a typical unilateral sanction and a form of ‘long-arm jurisdiction’ which seriously damages the legitimate rights and interests of enterprises and affects the security and stability of the global supply chain.
Furthermore, China made a call to “correct this wrongdoing,” saying it will safeguard the rights and interests of Chinese companies.
This is not the first time that Chinese companies have been hit by sanctions for allegedly cooperating with other countries to evade pre-existing sanctions. In March, a group of Chinese companies was designated for collaborating with Iranian companies aiding the Russian war effort.
Also, another group of Chinese companies was sanctioned for integrating a shadow banking system for Iranian firms.
China, U.S., and Sanctions
The enactment of these sanctions has some experts worried about the effects this might have on the bilateral relationship between the U.S. and China, already affected by the developments on the issue of Taiwan. For Hank Paulson, former Treasury secretary of the U.S., “The US-China relationship is on the brink,” and the recent policies of the government are not working to appease the situation.
In a recent interview in Financial Times, Paulson talked about the results of these policies, declaring:
If America goes too far in curtailing trade and investment with China and we go far beyond what our allies and partners want to do, the result will be to isolate the US.
Recently, President Joe Biden also extended a series of sanctions against the military and industrial companies in Russia.
What do you think about the latest sanctions enacted against Chinese companies? Tell us in the comments section below.
UK Think Tank Opposes Bank Of England’s CBDCs
The UK Tax Reform Council, a non-profit organization, recently opposed the Bank of England’s move to create CBDCs. According to the council, this move will not profit the masses, as the government will get more rights over individuals’ finances.
UK Tax Reform Council Kicks Against CBDCs
The UK think tank has launched a campaign against central bank digital currencies of England that use surveillance measures. The United Kingdom Tax Reform Council has argued that CBDCs with intrusive surveillance capabilities could trespass on individual privacy and promote financial vulnerability.
The campaign comes at a time when several central banks worldwide are exploring the potential benefits of CBDCs – digital versions of fiat currencies. However, the organization has raised concerns about CBDCs that collect user data or employ blockchain-based technologies that could track and store every transaction.
As per the council, which includes monetary economist and cofounder of Fiscal Studies, John Chown, such a system could be vulnerable to hacks, data breaches, and abuse by government agencies or third-party entities.
Additionally, it argues that CBDCs with surveillance capabilities could enable governments to monitor individuals’ financial behavior, giving them more authority over matters regarding finance.
Bitcoin, A Rival Of CBDCs?
The United Kingdom Tax Reform Council has argued that Bitcoin (BTC) offers the same advantages as a central bank digital currency (CBDC). These include reduced costs for businesses and consumers, increased security, and greater privacy.
Per the council, Bitcoin already provides the same benefits as the CBDCs, such as improved financial inclusion, faster payment processing, and reduced transaction costs. So, the Tax Reform Council has encouraged the government to consider alternative CBDCs and explore other digital currencies such as Bitcoin.
The campaign has gained traction among experts and policymakers, who share similar concerns about CBDCs with surveillance measures. However, supporters of CBDCs argue that they could provide a more efficient, secure, and accessible payment system, particularly for the unbanked population.
The Digital Currency Claims
Currently, 114 countries are exploring CBDCs, says the Atlantic Council. England’s bank CBDCs claim to provide several benefits to global financial institutions. One of the main motivations it claims to offer is to increase financial inclusion.
Digital currencies could provide access to financial services for individuals who do not have a bank account. Additionally, digital currencies could reduce the costs and inefficiencies associated with physical cash by eliminating the need for printing, transportation, and storage.
Moreover, digital currencies could improve payment system efficiency and security by enabling real-time payments, reducing settlement times, and increasing transparency.
They could also enhance monetary policy by allowing for greater control over the money supply and better monitoring of economic activity. Furthermore, central banks may be exploring digital currencies to mitigate the potential risks from private cryptocurrencies by providing a safe, reliable, and regulated alternative.
But as the debate over CBDCs continues, it remains to be seen whether central banks will heed the think tank’s call for privacy-focused CBDCs or opt for the more surveillance-heavy model.
Featured image from Pixabay, charts from TradingView.com
Kimbal Musk, Elon’s Brother, Says He ‘Violently’ Opposes Cryptocurrency
Elon has been one of the most outspoken individuals in the cryptocurrency sector, but his brother Kimbal Musk has his own set of beliefs when it comes to the digital asset class.
Kimbal stated in an interview with Input Magazine that he is concerned about cryptocurrency’ negative impact on the environment.
He didn’t mince words, actually:
“I am violently opposed to anything with that degree of environmental damage,” Kimbal told Input Magazine.
Related Article | Could An Elon Musk Time Magazine Cover Predict The Crypto Cycle Peak?
Kimbal Musk Says Crypto An ‘Environmental Crisis’
“Cryptocurrency as it currently exists is a non-starter. I violently agree that we must fix this environmental crisis,” he said.
Mining bitcoin has been shown to consume an enormous amount of energy. A single BTC transaction is projected to eat up 2,292.5 kilowatt-hours of electricity, which is sufficient to run a normal US home for nearly 80 days.
This is the reason why his brother Elon stopped accepting bitcoin payments for Tesla vehicles last year, despite the fact that the electric car manufacturer still has roughly billion in bitcoin on its balance sheet.
With over 200,000 transactions each day – and counting – worry about crypto’s environmental impact has grown.
Tesla announced in a filing with the US Securities and Exchange Commission on February 8 last year that it had invested .5 billion in Bitcoin.
BTC total market cap at 4.56 billion in the daily chart | Source: TradingView.com
Tesla ‘Very Ignorant’
Elon’s younger brother stated last week that Tesla was initially “completely ignorant” of Bitcoin’s environmental implications when it introduced the cryptocurrency to its balance sheet.
Kimbal is the owner of the environmentally friendly restaurant business The Kitchen and is reported to have a net worth of 0 million.
He is on the boards of directors of Tesla and SpaceX and holds a sizable stake in the space exploration company.
Related Article | Elon Musk Explains DOGE Edge Over Bitcoin, But Where Is He Wrong?
Kimbal announced the development of a decentralized autonomous organization (DAO) in December last year with the goal of enabling “decentralized charity.”
He discussed a variety of issues with Input Magazine , including his thoughts on wealth and his food equality cryptocurrency initiative, “Big Green DAO.”
BGDAO is built on the Ethereum blockchain and provides each member with a single vote on the decentralized autonomous organization’s decisions.
On Carbon Footprints & Being ‘Cautious’
Kimbal did express optimism for Ethereum 2.0, which is expected to consume significantly less energy than ether and is also expected to be more secure.
Meanwhile, environmentalists claim that cryptocurrency’s rise is creating a massive carbon footprint, thereby contributing to the world’s climate problem.
Kimbal also shared the tips that his brother has given him when it comes to cryptocurrencies.
“To be honest, I have no idea what his position is on crypto,” he told Input. “The most important piece of advice I received from my brother is ‘be cautious,’” he said.
Featured image from MarketWatch, chart from TradingView.com
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Aragon Opposes Change to Ethereum’s Mining Algorithm Before 2.0 Version
n Aragon votes against Ethereum changing its proof-of-work mining algorithm before Ethereum 2.0n
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