Crypto News | 8 June 2021 Update

This Week in Crypto (31 May-8 June)




Dacxi
Corporate


8 June, 2021 | 5 MIN

District Court Bars SEC From Accessing Ripple’s Internal Legal Advisories

Crypto Exchange, Wallet Ads No Longer Face Ban from Google

Malta-Based Investment Outfit Earmarks $100 Million for First-Time Crypto Funds

Bitcoin 2021 Opened in Miami With a Sold-out Crowd.

El Salvador President Proposes to Make Bitcoin a Legal Tender in the Country

Last week was again a promising one for the entire crypto market. While revised advertising policies of Google presented a silver line to many crypto companies, the judiciary ruling in favor of Ripple in its battle against the SEC strengthened investor confidence. A new $100 million crypto investment fund appeared in the market, while nearly 50,000 people attended the Bitcoin 2021 event in Miami.

District Court Bars SEC From Accessing Ripple’s Internal Legal Advisories

In a notable instance of a crypto market player finding judiciary on its side in the fight against the mighty SEC, New York Southern District Court magistrate judge Sarah Netburn denied the SEC’s motion asking Ripple to produce memos of its discussions with the firm’s lawyers about XRP sales. The motion filed by SEC on May 7 tried forcing Ripple to publish before the court the legal advisory communications it might have had to ascertain whether its offers and sales of XRP could become subject to federal securities laws. 

To back her judgment, Netburn cited the principles of attorney-client privilege that promotes “full and frank communication between attorneys and their clients”, promoting broader public interests. According to the observation made by judge Netburn, Ripple had not waived its attorney-client privilege.

In making its case against Ripple, the SEC pivoted its right to ask for the legal communication memos on the assertion that Ripple’s legal advisors could have made the firm aware of its status as security before it went on to have its token sale in 2013. In its defense, Ripple told the court that the SEC failed to provide a fair notice explaining to Ripple that the Federal agency was considering XRP security. 

The judgment comes as another win in Ripple’s legal battle against the SEC after the agency filed a lawsuit against Brad Garlinghouse and Chris Larsen, Ripple Labs CEO and executive chairman, alleging that XRP was a $1.3 billion unregistered securities offering. In an earlier win, the judge ruled in favor of Ripple safeguarding the financial records of Garlinghouse and Larsen from coming under SEC’s scrutiny. 

Crypto Exchange, Wallet Ads No Longer Face Ban from Google

In a decision that came as a surprise to many, Google suddenly lifted its three-year-old ban on cryptocurrency exchanges from using the global advertising giant’s services. From August 3rd onwards, crypto exchanges and wallets in the US may leverage Google’s ad services, provided they stick to specific requirements. 

The requirements, specified by Google on its policy document, require the exchanges to either register with “FinCEN as a Money Services Business and with at least one state as a money transmitter” or “a federal or state-chartered bank entity.” This modification makes crypto services like Anchorage and Paxos eligible to leverage Google Ad services. 

However, the revised policy guidelines continue to deny access to a large segment of the crypto industry as advertising ICOs, DeFi trading protocols, and the purchase, sale, and trade of cryptocurrencies continue to remain banned.  

Malta-Based Investment Outfit Earmarks $100 Million for First-Time Crypto Funds

Founded by serial entrepreneurs Mike Novogratz and Christian Angermayer, Cryptology Assets Group, an investment firm headquartered in Malta, has decided to support crypto VC firms injecting funds. The total fund would be worth $100 Million.

Although it has recently floated this fund, the group’s association with crypto industry players is not new. It already has investments in Iconic Funds, a crypto assets manager, and Northern Data, a Bitcoin mining operator. Moreover, the group has also offered indirect exposure to Block.one, an EOS developer, and Bullish Global, Block.one’s $10-billion crypto tech company.

Patrick Lowry, the CEO of the Cryptology Assets Group, sees his company’s increased interest in the crypto market as a natural follow-up to the rewards the market has earned them. It has seen more than a 300% internal rate of return and AUM going as high as $548 million from an initial investment of around $33 million.

Bitcoin 2021 Opened in Miami With Sold-out Crowd

Bitcoin 2021 is the biggest event in the asset’s history. An audience of nearly 12,000 attended its opening in Miami on June 4. The organizers expected more than 50,000 attendees in total. The list of attendees included some of the biggest names in the world of crypto assets and beyond. It featured mayor Francis Suarez, Twitter CEO Jack Dorsey, Microstrategy CEO Michael Saylor, and many more. The unofficial kickoff happened on June 3rd, featuring BitGo CEO Mike Belshe and Galaxy CEO Mike Novogratz. 

Bitcoin Magazine hosted the event, which was started by Ethereum co-founder Vitalik Buterin in 2012. Earlier planned to be hosted in Los Angeles, California, the event later shifted to Miami, reacting to Miami Mayor Francis Suarez’s keenness to establish Miami as the Bitcoin capital of the world.

The list of notable speakers included Mayor Suarez himself along with Senator Cynthia Lummis, U.S. pro-crypto Representative Warren Davidson, BitGold creator Nick Szabo, the former chairman of the Commodity Futures Trading Commission Chris Giancarlo, Gemini founders Cameron and Tyler Winklevoss, Morgan Creek Digital co-founder Anthony Pompliano, current Binance US CEO Brian Brooks, MicroStrategy CEO Michael Saylor, former presidential candidate and congress member Ron Paul, and crypto and blockchain investor Tim Draper.

The speakers discussed the potential opportunities that the paradigm of Bitcoin, blockchain technology, and other crypto-assets present in front of the world today, the nuances involved in these opportunities, and how one could react to those.

El Salvador President Proposes to Make Bitcoin a Legal Tender in the Country

During the Bitcoin Conference 2021, Nayib Bukele, President of El Salvador, announced via a pre-recorded address that he is going to present a bill to the El Salvador legislature to make Bitcoin a legal tender in the country. President Nayib described his motive behind his plans to make Bitcoin a legal tender in the country as a way to “design a country for the future.”  His pre-recorded announcement received a standing ovation at the Bitcoin conference 2021. He also expects this move to create thousands of jobs in El Salvador.

"In the short term, this will generate jobs and help provide financial inclusion to thousands outside the formal economy."

On Twitter, President Nayib said that even if 1 percent of Bitcoin's circulating supply moves to El Salvador, it will amount to one-fourth part of the country's yearly economic output.

 



Dacxi is proud to support people on a path to prosperity with crypto. If you would like to find out more then please join us at dacxi.com. We’re here to help.