Week in Crypto: Product Launches, Ethereum Debate, and Stablecoin Legislation

Busy Week in Crypto

It was a busy week in crypto, featuring important product launches, fevered debate around Ethereum, movement on stablecoin legislation, and high-profile Congressional hearings on “debanking.”

Stablecoin Legislation

David Sacks, the Crypto and AI Czar, held a high-profile press conference with Senate leadership, as Senator Hagerty, of Tennessee, introduced a new stablecoin bill. The proposal, which outlines an oversight regime for stablecoin issuance, builds on a bill that passed the House last year but fell in the Senate. It’s more likely to pass this year, now that Republicans are in control. CoinDesk’s Jesse Hamilton had the news.

Debanking Hearings

The Senate also held hearings on the coordinated policy of institutions like the FDIC to deny financial services to crypto companies during the Biden years (aka debanking). Nathan McCauley, CEO Anchorage Digital, an institutional custodian, testified (and also wrote about his experience on CoinDesk). Consensys founder Joe Lubin said his company had been debanked twice as well, Ian Allison reported.

New Tokenization Blockchain

Ondo Finance introduced a new tokenization blockchain, in readiness for an expected wave of institutional interest in RWAs. Kris Sandor and Helene Braun had the story. Trump-backed World Liberty Financial immediately bought $470,000 worth of ONDO, the platform’s governance token. Kris Sandor and Francisco Rodrigues reported on that.

Mainnet and Airdrop

The week’s other big launch came from Berachain, which debuted a mainnet and a 79 million-strong airdrop, Shaurya Malwa reported. At the time of writing, BERA’s market cap was already more than $800 million. Shaurya also provided a prescient analysis of XRP price, well ahead of its decline by analyzing trading patterns.

Ethereum

News around Ethereum was less rosy, as has been the case for a few months now. JPMorgan said ether has underperformed because of competition from rivals like Solana, and because it lacks a compelling narrative (like bitcoin), Will Canny reported. But Ethereum did move forward on its Pectra upgrade and its cheerleaders run deep, even on Wall Street, Margaux Nijkerk said. So better days may be ahead (Eric Trump certainly tweeted an endorsement).

Gold-Backed Crypto

Bitcoin is called “digital gold” by some, but outside of it, the actual precious metal moves cryptocurrencies too. Gold’s historic run has seen prices outperforming the traditional market, taking gold-backed crypto with it. Francisco Rodrigues highlighted how and why tokens like PAXG and XAUT were among the best-performing tokens this year, outperforming even the “digital gold,” due to the bullion’s rally.

Internet Privacy

Finally, in an important case for internet privacy, Alexey Pertsev, one of the developers of Tornado Cash, an Ethereum mixer, was released from jail pending an appeal. He had been sentenced to 64 months inside last year. Happy weekend, all.

Conclusion

In conclusion, this week in crypto was marked by significant developments in stablecoin legislation, debanking hearings, new tokenization blockchain launches, and Ethereum’s ongoing challenges. As the crypto market continues to evolve, it is essential to stay informed about the latest news and trends.

FAQs

Q: What is stablecoin legislation?
A: Stablecoin legislation refers to proposed laws aimed at regulating the issuance and use of stablecoins, a type of cryptocurrency pegged to the value of a fiat currency.

Q: What is debanking?
A: Debanking refers to the practice of financial institutions denying financial services to crypto companies, often citing regulatory concerns.

Q: What is tokenization?
A: Tokenization is the process of creating digital tokens, often used to represent ownership or rights in a particular asset, such as a security or a commodity.

Q: What is Ethereum?
A: Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (dApps).

Q: What is gold-backed crypto?
A: Gold-backed crypto refers to cryptocurrencies that are pegged to the value of gold, often used as a store of value or a hedge against inflation.

Q: What is Tornado Cash?
A: Tornado Cash is an Ethereum mixer, a type of decentralized application that enables users to anonymize their cryptocurrency transactions.