Project 11 has raised $6 million in a seed round co-led by Variant and Quantonation to address the hypothetical risk quantum computing poses to Bitcoin’s cryptography. The startup warns that a cryptographically relevant quantum computer could break Bitcoin’s security, urging a shift to quantum-resistant protocols. While quantum computing remains under development by firms like IBM and Google, some Bitcoin proponents, such as Michael Saylor, downplay the immediate threat, arguing broader systems would face greater risks first. Bitcoin’s price held steady at around $104,250 amid the discussion.
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Ripple SEC Lawsuit Nears Resolution: Key Takeaways
The Ripple SEC lawsuit, which began in December 2020, has been a pivotal case for crypto regulation in the U.S. The SEC accused Ripple of selling XRP as an unregistered security, while Ripple argued it was a currency. A July 2023 ruling partially favored Ripple, distinguishing between public and institutional sales. Recent filings indicate a possible settlement by April 16, with legal experts giving it a 90% chance. A resolution could set a precedent for crypto regulation, influence institutional adoption, and reshape the SEC’s approach under incoming Chair Paul Atkins. Despite legal challenges, Ripple has expanded its ecosystem, including a $1.25B acquisition of Hidden Road, positioning itself as a global multi-asset prime broker.
read moreUS Crypto Reserve Proposal May Favor Bitcoin Over Other Assets
Bitwise CIO Matt Hougan predicts that Bitcoin will form the core of the US’s proposed strategic crypto reserve, which he believes will be larger than expected. Despite initial market volatility and skepticism over including altcoins, Hougan argues that the reserve’s establishment signals a long-term positive shift for digital assets and may prompt other nations to acquire Bitcoin. He emphasizes that the US government’s recognition of crypto as a strategic asset could have significant global implications.
read moreJerome Powell affirms US banks can serve cryptocurrency clients
Jerome Powell, President of the Federal Reserve, affirmed that U.S. banks are “perfectly capable” of serving cryptocurrency clients, emphasizing the importance of understanding and managing associated risks. This statement has been hailed as a significant turning point by industry experts, signaling a shift away from previous restrictive measures. Following Powell’s remarks, Bitcoin’s price surged by 3%, surpassing $105,000 after a brief dip.
read moreUS House Investigates Crypto Debanking Amid Federal Reserve Support for Innovation
The U.S. House of Representatives is investigating claims of “debanking” in the crypto sector during the Biden administration, focusing on whether individuals were cut off from financial services due to their political views or industry involvement. Federal Reserve Chair Jerome Powell stated that banks can serve crypto customers if they manage associated risks, signaling a shift in regulatory stance. Meanwhile, Trump has initiated a Presidential Working Group on Digital Asset Markets to explore potential policies, including a national reserve for Bitcoin.
read moreMoove Expands Latin American Rideshare Operations with Kovi Acquisition
Moove has acquired Brazil-based Kovi to enhance its rideshare operations in Latin America, adding Kovi’s fleets and advanced IoT software to its portfolio. This move expands Moove’s global fleet to 36,000 vehicles across 19 cities, reinforcing its commitment to innovation and safety in mobility. In a separate development, products featuring Donald Trump’s brand are now accepting the $TRUMP meme coin as payment, despite criticism regarding its impact on the cryptocurrency industry’s legitimacy. The meme coin, launched on January 17, has a market cap of $5.4 billion, raising concerns about potential conflicts of interest as the White House adopts a pro-crypto stance.
read moreMichael Barr Resigns as Federal Reserve Vice Chair Amid Crypto Controversy
Michael Barr, the Federal Reserve’s vice chair for supervision, is resigning effective February 28, amid criticism for his role in “Operation Chokepoint 2.0,” which allegedly targeted crypto companies. His departure has been welcomed by some in the crypto community, who view him as a barrier to banking services for the industry. Despite stepping down from his supervisory role, Barr will remain on the Federal Reserve Board of Governors and has advocated for responsible stablecoin regulation.
read moreBiden Administration’s Role in Silvergate Bank’s Demise and Crypto Industry Impact
Nic Carter, a partner at Castle Island Ventures, claims that the Biden administration’s regulatory actions forced Silvergate Bank into voluntary liquidation, effectively aiming to “decapitate” the cryptocurrency industry. He argues that Silvergate could have survived if not for a mandate to limit crypto deposits to 15%, which he believes contributed to the broader banking crisis of 2023. Despite acknowledging some operational shortcomings, Carter contends that the bank’s demise was primarily due to regulatory pressure rather than market conditions.
read moreThe Rise and Regulation of Stablecoins in Digital Finance
Stablecoins have surged to over $160 billion in circulation, driven by their increasing use in payments and as a hedge against volatility, particularly in emerging markets. However, their rise follows the catastrophic collapse of TerraLuna’s UST, which raised concerns over transparency and regulatory compliance. As the market recovers, the demand for stablecoins continues to grow, prompting calls for a regulatory framework to balance innovation with oversight and combat illicit activities.
read moreTrump’s Token Launch Sparks Criticism and Concerns Among Supporters
Donald Trump faced backlash from some pro-crypto supporters after announcing the launch of a WLFI token through his World Liberty Financial project, with critics claiming it could cost him votes. Skepticism arose regarding the timing and details of the project, especially following a recent debate loss to Kamala Harris. While some single-issue crypto voters remain supportive, others expressed disappointment over the campaign’s approach and clarity.
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