Cryptocurrency roundup for June 8: Coinbase discloses Untapped Potential of AI, Court Pressures SEC to Clarify Stance on Coinbase Petition and more

Cryptocurrency roundup for June 8

[content][title]Market Cap of Crypto Projects Using AI Still Low, But Has Potential to Grow[/title][body]

A new report by Coinbase has found that the market capitalization of crypto projects directly developing AI models on the blockchain, applying AI to decentralized applications, or solving AI-related issues is still fairly low at only 0.07% of the total across all tokens.

> The report, titled "At the Intersection of AI and Crypto," found that there are currently over 1,000 crypto projects that are using AI in some way.

> However, the vast majority of these projects are still in the early stages of development and have relatively small market capitalizations.

> The report also found that there are a number of challenges that are hindering the growth of the AI-crypto market. These challenges include Read more

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[content][quote]Exchanges, Bitfinex, Tether[/quote][title]Regulatory Spotlight on Decentralized Exchanges: Insights from Bitfinex CTO Paolo Ardoino[/title][body]

Paolo Ardoino, the CTO of Bitfinex and Tether, recently hinted at a potential escalation in regulatory scrutiny aimed at Decentralized Exchanges (DEXs).

Ardoino expressed his perspective during an extensive discussion on an array of topics including the future expansion of Bitfinex and Tether, their focus on emerging markets, and their commitment to Bitcoin.

> "We are seeing what happened with the centralized exchanges in the last two days. However, it would be foolish to think that the decentralized exchanges are not going to be under scrutiny as well," stated Ardoino, highlighting the shifting landscape in crypto regulation.

> Ardoino expounded his point, explaining that DEXs, although operating on blockchain technology, may still need to comply with regulatory obligations, particularly if they generate revenue for a certain group of individuals. Details here.

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[content][quote]Crypto, tax rules, revenue, taxation[/quote][title]Urgent Crypto Tax Rules: What Reps. Brad Sherman and Stephen Lynch Are Pushing For[/title][body]

Congress members Brad Sherman (D-Calif) and Stephen Lynch (D-Mass) have publicly called for the U.S. Treasury Department and the Internal Revenue Service (IRS) to swiftly present forthcoming rules for cryptocurrency taxation.

> They argue this would foster complete compliance from the fast-growing industry, according to a letter delivered on Monday.

> Sherman, a veteran member of the House Committee on Financial Services, expressed his concerns, saying, "The crypto sector has, for several years, contributed significantly to tax evasion and thus widened the country's tax gap."

> The pair of lawmakers highlighted in their letter that despite the White House concluding its examination of the contentious tax reporting stipulations for cryptocurrency brokers from the 2021 infrastructure bill earlier this year, the government is still withholding the suggested regulations. Details here

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[content][quote]USA, Coinbase, petition, digital assets[/quote][title]US Court Directs SEC to Clarify Stance on Coinbase Rulemaking Petition[/title][body]

The U.S. Securities and Exchange Commission (SEC) has been mandated by the United States Court of Appeals for the Third Circuit to clarify its stance on a rulemaking appeal initiated by cryptocurrency exchange, Coinbase.

> This petition, which was submitted in 2022, is directed at SEC's rulemaking in the digital asset sector and was instigated in an effort to address the perceived inadequacy of the existing regulations for digital assets.

> The SEC now has a week to either reject Coinbase's petition and provide justifications for such a decision or provide an estimated timeline for their final decision on this matter.

> Coinbase has positioned this request as a necessary precursor to any enforcement actions, insisting on the establishment of explicit rules prior to enforcing regulatory measures. More here

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[content][quote]Stablecoin, Ethereum, collateral[/quote][title]Aave's GHO Stablecoin Moves Closer to Ethereum Mainnet Launch[/title][body]

The Aave lending protocol's stablecoin,  GHO, inches towards a launch on Ethereum's mainnet with the introduction of two key features proposed by the developer, Aave Companies.

> These features aim to enhance user benefits while maintaining the coin's stability.

> The  GHO stablecoin, in its testing phase since February on Ethereum's Goerli testnet, has performed without significant issues.

> In a governance post, Aave Companies introduced the V3 Ethereum Facilitator and the FlashMinter Facilitator, designed to allow GHO lending against collateral deposits and to enable flash loans or zero-collateral loans respectively.

> "These facilitators, capable of creating and annihilating GHO tokens up to a certain extent, will let depositors borrow GHO against their collateral placed in Aave V3's Ethereum mainnet pool," the developer explained. Read more

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[content][quote]Coinbase, lawsuit, Binance[/quote][title]Coinbase Under Fire: Armstrong Responds to SEC Lawsuit and Defends Company's Integrity[/title][body]

Brian Armstrong, the Chief Executive Officer of Coinbase, asserts that the lawsuit filed against his company by the U.S. Securities and Exchange Commission (SEC) is vastly different from the one filed against Binance, a rival cryptocurrency exchange.

> Speaking to CNBC, Armstrong said, "The two firms are in stark contrast to each other, as are the legal actions they face," according to a transcript provided via email.

> The CEO clarified that the lawsuit against Coinbase did not involve the misappropriation of client assets. He also emphasized that he wasn't personally accused.

> He expounded, "Our situation raises a question of categorization, whether to classify these as commodities or securities. Continue reading

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[content][quote]Crypto exchange, Binance US, Lawsuit[/quote][title]Binance US Puts Brakes on Trading Services Amid SEC Lawsuit[/title][body]

Crypto exchange Binance.US has decided to suspend trading services for several crypto tokens as of June 8th, in response to a lawsuit filed by the U.S. Securities and Exchange Commission (SEC).

> The lawsuit, which accuses the company and its management of offering unregistered securities, marks an escalation in regulatory scrutiny.

> With the removal of several advanced trading pairs from its platform, Binance.US has created ripples in the crypto community.

> "We have also decided to streamline our Buy, Sell & Convert offering and have paused our OTC Trading Portal,” said the company in a recent statement.

> The suspension affects a wide array of trading pairs, including more than 90 tether pairs, eight Bitcoin pairs, and two Binance USD pairs. However, users can still carry out deposit and withdrawal operations. Read more

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[content][quote]SEC, BInance, Legal[/quote][title]SEC vs Binance: CEO CZ Zhao's Stance on the Legal Confrontation[/title][body]

The Chief Executive of Binance, Changpeng Zhao said that he is not required to attend court in person, responding to news about his summons linked to a lawsuit lodged by the U.S. Securities and Exchange Commission (SEC).

> Zhao clarified that this development was standard procedure and nothing out of the ordinary in dealing with the SEC. He tweeted, "This is just part of the SEC compliant process. Nothing new."

> The SEC instigated legal proceedings against both Binance and Zhao on Monday, alleging multiple infractions of U.S. securities regulations. In response, Binance issued a statement asserting its intention to "vigorously" contest the allegations. Continue reading

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[content][quote]Ether, coinbase, lawsuit, Altcoin, Bitcoin[/quote][title]Binance, Coinbase Lawsuits Trigger Altcoin Sell-Off; Bitcoin Remains Stable[/title][body]

> In the wake of lawsuits by the U.S. Securities and Exchange Commission (SEC) against Binance and Coinbase, substantial cryptocurrencies faced a severe hit, triggering a sweeping altcoin downturn on Wednesday.

> Amid this turbulence, investors flocked to the relative sanctuary of bitcoin (BTC).

> Binance Smart Chain's proprietary token, BNB, plummeted by 8% within a day, reaching a six-month low of $252, according to data from CoinDesk.

> Prominent cryptocurrencies by market cap, including Cardano's ADA, Polygon's MATIC, and Solana's SOL, also experienced a steep decline ranging from 6% to 8% throughout the day.

> Meanwhile, Bitcoin, the cryptocurrency heavyweight, held its ground, witnessing a modest decrease of 0.9% during the same period, with its trading value revolving around $26,500.

> Over the previous week, BTC has been trading in the $25,000 to $27,000 range.

> Ether (ETH), which was trading at $1,850, saw a marginal drop of 1.3% over the day. This performance was in line with the overall trends in the digital asset markets.

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