News Updates September 29 & 30, 2022
1. Senate bill would create legal grace period for crypto exchanges.
Sen. Bill Hagerty (R-Tenn.) has introduced a bill to create a safe harbor for cryptocurrency exchanges that might otherwise face legal action for listing unregistered securities.
According to text of the bill obtained by The Block, the legislation would allow for a two-year grace period from enforcement actions by the Securities and Exchange Commission against crypto exchanges that list tokens deemed by the commission to be unregistered securities. The grace period would begin when the commission makes a determination that a token is an unregistered security. Exchanges would also not be subject to legal action for failure to register as a broker-dealer or national securities exchange during the grace period.
The bill is expected to become public tonight.
If the bill were to become law, the SEC could still label tokens as unregistered securities through statements, enforcements, or rulemakings, though the Commodity Futures Trading Commission would have the right to object. The exchange could also still sue for an appeal of the decision in court, where a judge would determine the security definition.
2. The 'Brussels Effect' wields real influence over US crypto regulation
The European Union is leading the way when it comes to global cryptocurrency regulations.
The right to privacy is enshrined in many legal traditions around the world. In the United States, it’s protected by the Fourth Amendment; in the European Union, it falls under Article 8 of the European Convention for Human Rights. While definitions differ between jurisdictions, most of us have a right to a reasonable expectation of privacy for our correspondence, in our homes and about our persons.
In the 1970s, businesses, families and individuals started generating data like never before, and the degree to which it fell under existing privacy mandates was increasingly unclear. This proliferation of data was first acknowledged as a problem in the late 70s and picked up pace in the decade that followed. In response, the EU introduced its Data Protection Directive in 1995, guaranteeing certain fundamental rights around the processing of personal data.
The crucial thing to understand in this context is that an EU directive leaves space for member states to determine how it will be incorporated into national laws. It is a recommendation, not a regulation that would legally require members to enforce laws from a set date.
From 1995, the regulation of privacy in the EU trod a well-worn path. Starting as a directive, it eventually developed into the General Data Protection Regulation (GDPR), which became a lawful requirement in 2018.
3. Court appoints examiner in Celsius bankruptcy case.
The court has approved an examiner for the Celsius bankruptcy case, according to a new order signed by bankruptcy judge Martin Glenn.
The U.S. Trustee, the representative of the Department of Justice in the bankruptcy process, asked the court to approve Shoba Pillay earlier this morning.
Pillay is a partner at the law firm Jenner & Block where she co-chairs the firm's Data Privacy and Cybersecurity Practice. She's also a partner in the firm's Investigations, Compliance, and Defense Practice and the National Security, Sanctions, and Export Controls Practice.
Before entering the private sector in 2021, Pillay was an Assistant U.S. Attorney in the Northern District of Illinois for more than 11 years. At Jenner & Block, Pillay conducts internal and government-related investigations related to cybersecurity issues.
Pillay will produce a report on Celsius' storage of crypto holdings, account management for customers, the status of its mining business and tax issues.
4. Bitcoin And The Golden Ratio Bottom | BTCUSD Analysis September 29, 2022.
We examine how Bitcoin might have bottomed precisely at the 1.618 Fibonacci extension, using Elliott Wave Theory.
Using the Fibonacci retracement tool not for retracement but for extensions, we have found a golden discovery using math.
Taking the Fibonacci retracement tool to draw from the bottom to the top of the A wave will provide a Fibonacci extension target for where a C wave correction might end. The wick down to $17K touched precisely at the 1.618 Fibonacci with pinpoint accuracy.
1.618 is the golden ratio, also known as the divine proportion. Zooming out further, could this really have happened in the 2015 bear market also? Adding yet another ABC correction, the same pattern fits, albeit not quite as precisely at the rest of the analysis. Still, its accurate enough where the golden ratio could clearly be a factor in where Bitcoin ultimately bottoms.
5. BUILDING BITCOIN COMMUNITIES FROM THE GROUND UP IN THE PHILIPPINES.
A key to gaining adoption in local communities is having on the ground educational resources available to business owners and customers.
What if we could recreate the elements of a big city that we all love but on a much smaller scale? What would those elements be that we would seek to replicate? For much of history, cities have been places that provide opportunity, hope and connection to others. Cities hoped to bring together the best and the brightest to work hard and build things the world needs. A massive paradigm shift occurred and posed the question: “What if we could provide opportunity, hope, and connection to others by building education and knowledge around bitcoin in smaller communities?” And, just like that, the idea has spread across the globe.
One such project is known as Cloud 21 Siargao on a small island on the southeastern side of the Philippines. It is a beautiful and up and coming island that for years secretly held a hidden gem of a surf spot named Cloud 9, hence the nod to this epic surf spot with the name Cloud 21 Siargao. In December of 2021, the island was ravaged by the massively destructive.
A key to gaining adoption in local communities is having on the ground educational resources available to business owners and customers.
What if we could recreate the elements of a big city that we all love but on a much smaller scale? What would those elements be that we would seek to replicate? For much of history, cities have been places that provide opportunity, hope and connection to others. Cities hoped to bring together the best and the brightest to work hard and build things the world needs. Then, along came El Zonte, better known as Bitcoin Beach. A massive paradigm shift occurred and posed the question: “What if we could provide opportunity, hope, and connection to others by building education and knowledge around bitcoin in smaller communities?” And, just like that, the idea has spread across the globe.
El Zonte was not only the community that inspired President Nayib Bukele to envision the first bitcoin legal tender country, but they have inspired many smaller communities by their vision and success in execution. We can now see bitcoin inspired communities being built from the ground up with Bitcoin Ekasi in South Africa, BTC Beach Camp in Thailand, Bitcoin Lisboa in Portugal, Harlem Bitcoin in New York and many more! The common denominator in all these communities is the bitcoin educators willing to tirelessly dedicate their time to educating their surrounding communities. Because of the lockdowns and COVID-19 restrictions of the past few years, people have searched for a purpose and for many this purpose was found by building bitcoin communities in their own backyards. The hope for a better future derived from bitcoin has led many to make positive changes in their own lifestyles and to contribute more in giving back through community growth initiatives.
One such project is known as Cloud 21 Siargao on a small island on the southeastern side of the Philippines. It is a beautiful and up and coming island that for years secretly held a hidden gem of a surf spot named Cloud 9, hence the nod to this epic surf spot with the name Cloud 21 Siargao. In December of 2021, the island was ravaged by the massively destructive Super Typhoon Odette. For the first few months after the destruction, the rebuilding was slow. Supplies were hard to come by and there was debris everywhere. In short, opportunity and hope was near an all time low, and this is where bitcoin usually succeeds. Fast forward to about nine months after the storm and the local communities are buzzing with energy as businesses have reopened and tourism was quickly pouring back to the island. With this onslaught of growth and tourism, the knowledge of bitcoin began to quickly grow alongside it. Cloud 21 Siargao set out to assist local small businesses in learning how they can accept bitcoin as payments to drive further growth in tourism, similar to what El Zonte has done the past few years.
Through Twitter Spaces hosted by Paxful and Global Bitcoin Fest, we were able to collaborate on commonly found issues in regards to bitcoin adoption in Southeast Asia with bitcoiners in these regions . Through these talks, I shaped my approach to further educating about bitcoin to overcome some of these common hurdles. The largest hurdle is probably the gambling mentality that many people have in these regions. It’s sort of an all-or-nothing mentality that they just go all in rather than taking a more moderate approach of slowly incorporating bitcoin into their lives for long term wealth building strategies. Further obstacles to bitcoin adoption here is proper education on what sets bitcoin apart from the other 20,000-plus altcoins, and also just general brand recognition of bitcoin as a whole. These are the main points Cloud 21 Siargao has set out to work on.
6. Why this UK territory is adopting the Bitcoin Lightning Network
Gibraltar is becoming well known for its pioneering crypto regulations, support for blockchain development and Bitcoin adoption.
Cointelegraph reporter Joe Hall visited Gibraltar to explore Bitcoin (BTC) adoption on “The Rock,” as the peninsula is known locally, and how the adoption of Bitcoin for shopping in the territory is impacting business.
The visit was also an opportunity to visit Xapo Bank, the world's first private financial institution to combine traditional banking with Bitcoin. Coinbase acquired its custody business in 2019, making the American exchange the largest crypto custodian in the world.
The British Overseas Territory of Gibraltar is known for its pioneering crypto regulations, support for blockchain development and Bitcoin adoption, with many retail businesses using the Lightning Network — a layer-two network that enables off-chain transactions — to accept Bitcoin as payment around the peninsula.
Albert Isola, the island city's Minister of Digital and Financial Services, told Cointelegraph:
"When you talk about adoption of the use of Bitcoin, is it going to come? Yes it is, more and more, as more jurisdictions begin to regulate. What is for me the ideal? The ideal is when there are enough countries doing it that we have an international standard regulation where everyone has to comply with. Then it will be enormous, in my opinion."
7. Market manipulation claims will be hardest 'nut to crack' in Bitcoin ETF approval — WisdomTree
“We’re all kind of watching this and seeing what’s going to happen,” said WisdomTree's Will Peck on spot Bitcoin exchange-traded funds in the United States.
Will Peck, the head of digital assets at exchange-traded fund provider WisdomTree said regulators in the United States will “ultimately get there” on approving a Bitcoin spot investment vehicle, but dealing with claims of market manipulation could be a challenge.
Speaking to Cointelegraph at the Converge22 conference in San Francisco on Sept. 29, Peck said WisdomTree would not follow Grayscale by taking legal action against the U.S. Securities and Exchange Commission for denying its Bitcoin (BTC) ETF application. According to Peck, the company planned to “engage more productively” with the SEC without a lawsuit, but tackling some of the regulator’s reasons for turning down spot Bitcoin ETF applications could take time.
“We’re all kind of watching this and seeing what’s going to happen,” said Peck. “The reasons that [the SEC has] given have really been around potential for market manipulation — that Bitcoin trading does not happen on regulated venues [...] There’s been some questions in the past of custody, the ability of qualified custodians, whether banks or otherwise to be able to custody crypto assets on behalf of a registered firm like this.”
He added:
“I think it seems that the first one around market manipulation’s kind of the hardest nut to crack, where there’s been the biggest slowdown.”
