Quote of the week:
“Crypto has bounced back because institutions are buying…This was partly a big short-covering rally and partly recognition that this is a real market that’s not going anywhere.” – Galaxy Digital Founder, Mike Novogratz.
International Regulation: Israel’s Ministry of Finance put forth a draft law on July 27 that would require investors to report all cryptocurrency holdings worth 200,000 new Israeli shekels or more (which equates to approximately $61,000) to tax authorities. The Israeli Bitcoin Association and other cryptocurrency advocates oppose the bill; however, many others are bullish on the proposed bill for the potential it has to bring in an estimated $9.2 million in additional state revenue through taxation. Sources:https://finance.yahoo.com/news/israeli-bill-force-crypto-investors-174849336.html and https://cointelegraph.com/news/israeli-gov-t-seeks-to-track-crypto-holdings-above-61k
NFT Craze Expands: Brands, such as Coca-Cola, are starting to realize the potential of NFTs. Coca-Cola is planning to release a collection of NFTs in an effort to raise funds for Special Olympics International. The NFT auction will start on July 30 on the OpenSea marketplace. Source: https://cointelegraph.com/news/coca-cola-officially-gets-into-nfts-for-charity
Crypto Expansion: On July 28, during PayPal’s Q2 2021 investor update call, CEO Dan Schulman announced that the initial version of their super app wallet was “code complete” and is planned to be fully ramped in the United States within the next few months. The super app wallet will have greater crypto functionality and offer high yield savings, early access to direct deposit funds, and messaging capabilities, among other things. Source: https://cointelegraph.com/news/paypal-s-crypto-super-app-set-to-roll-out-soon
Bitcoin Update: Bitcoin hit the $40,000 price mark on July 28 and has stayed near that level through Thursday, July 29. The cryptocurrency is up approximately 23% over the past week.
United States Legislation: On July 28, a comprehensive legal framework to regulate cryptocurrency and stablecoins was introduced in the House of Representatives. According to Yahoo Finance, the many provisions of the framework would:
- “Create statutory definitions for digital assets and digital asset securities and provide the Securities and Exchange Commission (SEC) with authority over digital asset securities and the Commodity Futures Trading Commission (CFTC) with authority over digital assets;
- Require digital asset transactions that are not recorded on the publicly distributed ledger to be reported to a registered Digital Asset Trade Repository within 24 hours to minimize the potential for fraud and promote transparency;
- Explicitly add digital assets and digital asset securities to the statutory definition of ‘monetary instruments,’ under the Bank Secrecy Act (BSA), formalizing the regulatory requirements for digital assets and digital asset securities to comply with anti-money laundering, recordkeeping, and reporting requirements;
- Provide the Federal Reserve with explicit authority to issue a digital version of the U.S. dollar, clarify that digital assets, digital asset securities, and fiat-based stablecoins are not U.S. legal tender, and provide the U.S. Treasury Secretary with authority to permit or prohibit U.S. dollar and other fiat-based stablecoins; and
- Direct the Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), and Securities Investor Protection Corporation (SIPC) to issue consumer advisories on ‘non-coverage’ of digital assets or digital asset securities to ensure that consumers are aware that they are not insured or protected in the same way as bank deposits or securities.”
And, that’s a wrap!