Daily Crypto Update: Key Developments in the Cryptocurrency Space

Welcome to Altcoins Avenue! Today, we have four significant cryptocurrency news stories to keep you up to date with the latest happenings in the crypto world. If you haven’t already, I highly recommend hitting that subscribe button. Stick around to catch our long-form article that will help you become a cryptocurrency expert—we could certainly use more of those around, can’t we?

Kraken and the AI Project Merger

Our first story revolves around Kraken, which has announced that it will not participate in the merger of two popular AI projects, Fetch.ai and SingularityNET. This means that if you hold any of these coins on the Kraken or Coinbase cryptocurrency exchanges, they will not automatically merge into the new ASI token (Artificial Super Intelligence Token).

To merge your coins without engaging in cryptocurrency trading and potentially sparking a taxable event, you can withdraw your coins from Coinbase and Kraken into a personal wallet, such as a hardware wallet. From there, you can participate in the merger yourself using the existing bridges.

Supreme Court Decision Impacts the SEC and Cryptocurrency Industry

Next, we have significant news from the U.S. Supreme Court, which has issued a ruling that affects the Securities and Exchange Commission (SEC) and the cryptocurrency industry. The Court’s decision overturns a 1984 ruling that established the Chevron deference, which required courts to defer to federal agencies’ interpretations of the law.

Now, lower courts must exercise their independent judgment on whether an agency has acted within its statutory authority. This is a positive development for those in the cryptocurrency industry who have faced lawsuits from the SEC. It provides them with a more level playing field to contest these lawsuits in court.

Also Read : Top Altcoins to Watch in 2024: Investment Tips

Sheila Warren, CEO of the Crypto Council for Innovation, noted that this decision questions the role and power of regulators like the SEC. It could lead to more legal challenges against the SEC, offering cryptocurrency companies a better chance to operate honestly in the United States.

Drug Traffickers and Cryptocurrency Misconceptions

Speaking of regulatory challenges, there is a misconception that drug traffickers primarily use cryptocurrencies to finance their schemes. In reality, they have long favored traditional financial institutions like Citigroup to launder money and move funds.

Cryptocurrencies, with their public blockchains, make tracking funds relatively easy unless extreme measures are taken to remain anonymous. The FBI has issued warnings against unregistered cryptocurrency services, particularly decentralized exchanges (DeFi platforms) driven by smart contracts. The FBI emphasizes the importance of using registered cryptocurrency services that comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, such as Coinbase.

Interestingly, while the SEC is in a lawsuit with Coinbase, the U.S. Marshals have chosen Coinbase to custody $32.5 million worth of seized Bitcoin. Coinbase has become a central player in the U.S. cryptocurrency landscape, holding and managing significant amounts of cryptocurrency assets.

The Centralization of Coinbase

Finally, Coinbase has seen substantial growth, with Coinbase Prime now managing $330 billion worth of cryptocurrencies and recording $256 billion worth of transactions from institutions. Backed by BlackRock, Coinbase is becoming a central powerhouse in the cryptocurrency industry in the United States.

However, this centralization raises concerns about the illusion of choice. While you can buy various cryptocurrencies, your transactions are heavily monitored through centralized exchanges like Coinbase. For those seeking more privacy and control, decentralized exchanges (DEXs) and personal wallets are the way to go.

Sign up to receive awesome crypto news in your inbox, every week.