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Here’s what happened in crypto today

  • August 7, 2023
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Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting the Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.

PayPal launched a new US dollar-backed stablecoin called PayPal USD (PYUSD) — issued by Paxos Trust Co. MakerDAO’s new crypto lending platform Spark Protocol has garnered the ire of crypto privacy adv after blocking VPN users from accessing its website. Meanwhile, Coinbase’s chief legal officer says the United States Securities and Exchange Commission has overstepped its boundaries in suing the exchange.

Breaking: Paypal launches PYUSD stablecoin for payment

American financial technology company PayPal launched a new crypto stablecoin called PayPal USD (PYUSD) — issued by Paxos Trust Co. and fully backed by United States dollar deposits, short-term Treasuries and similar cash equivalents.

PayPal USD compatibility with crypto exchanges, WEb3 apps and crypto wallets. Source: PayPal

The payment processor claimed that the new stablecoin will soon be availble as a mode of payment for avrious purchases and will be transferable between PayPal and Venmo.

The firm claimed that the regulatory environment around stablecoin in the U.S. is gradually “progressing toward more clarity” and thus there is a demand for an alternate stablecoin from what is currently available in the market.

Controversy as MakerDAO’s Spark Protocol blocks users with VPNs

MakerDAO’s recently launched lending platform, Spark Protocol, has sparked criticism after blocking users from using VPNs to access the website.

Cointelegraph found that attempts to access the Spark Protocol website while a VPN is in use will be met with an error: “Accessing this website via VPN is not allowed.”

In an Aug. 6 tweet, DeFi analyst Chris Blec was among those saying he was “disgusted” with the decision, highlighting it effectively acts as a blanket ban on VPNs across the globe, not just in the U.S.

The measure appears to be linked to Maker’s attempt to restrict United States users from accessing the crypto lending platform, discussed in a May 9 update to Spark Protocol’s terms of service that warns against the use of VPNs to circumvent the block.

Coinbase lawyers allege SEC “violated due process”

The Securities and Exchange Commision has “violated due process” in suing Coinbase, according to the exchange’s legal counsel.

In an Aug. 4 filing with a New York District Court, Coinbase said the SEC “abused its discretion, and abandoned its own earlier interpretations of securities laws” in going after the exchange. The legal team said the SEC v. Ripple case demonstrates that the securities regulator overstepped its boundaries after a judge ruled that XRP largely doesn’t qualify as a security.

The SEC sued Coinbase on June 6, roughly three months after the crypto exchange received a Wells notice from the securities regulator. The SEC is also pursuing legal actions against Binance and Hex founder Richard Heart. 

Crypto winter has been rough on Coinbase, but there are signs that the exchange is returning to stability. On Aug. 3, Coinbase reported better-than-expected second-quarter revenues and a much smaller loss than previous quarters.

Canadian crypto ownership declines amid tight regulations, falling prices

The Bank of Canada (BoC) reported a decline in the ownership of Bitcoin and cryptocurrencies in the country in 2022, as neither market conditions nor regulations acted in favor of Canadian crypto investors, according to a BoC study published on July 26.

The study includes data from the annual Bitcoin Omnibus Survey conducted by the Canadian central bank, which showed a relapse from the massive crypto adoption witnessed in 2021.

The above graph shows that Bitcoin ownership in Canada declined to 9% by August 2022. However, BTC adoption saw a slight uptick to 10% by the end of the year, and the drop in Bitcoin ownership does not imply that investors were spreading out their investments into other cryptocurrencies. The report read:

“Investors did not appear to shift out of Bitcoin and into other cryptoassets, as we observe decreased ownership of altcoins.”

The biggest motivation for Canadians interested in Bitcoin is as an investment, according to over one-third of the 4,996 respondents in the Bank of Canada’s 2022 survey.

Most Canadians acquired their crypto holdings through mobile and web apps. Bitcoin and crypto mining became the third-most-popular method of accumulating tokens for the second consecutive year.

Coinbase to file order seeking dismissal of SEC lawsuit

Coinbase is planning file an order seeking dismissal of the lawsuit by the Securities and Exchange Commission on Aug. 4.

On its Aug. 3 second-quarter 2023 earnings call, Coinbase chief legal officer Paul Grewal expressed confidence the exchange would win the court case brought by the regulator.

“Tomorrow […] We will be moving the court for an order dismissing the case in its entirety.”

The revelation comes as the exchnage posted $663 million in net revenue for the second quarter of 2023.

Interestingly, the exchange’s non-trading revenue surpassed its trading revenue in the quarter, with $335.4 million of net revenue coming from subscriptions and services compared to $327 million in transaction revenue.

Coinbase CEO Brian Armstrong said on an Aug. 3 earnings call that it was focused on the non-trading parts of the business over the next three to five years, naming scalability, regulatory clarity and driving crypto utility as focus areas.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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