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The platform announced artists can connect Phantom Wallet to their accounts.

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In a recent podcast episode, Ripple CEO Brad Garlinghouse said it is ‘clear’ that the U.S. Government is ‘going after’ stablecoin issuer Tether.

Discover the latest news and insights on the world of cryptocurrency with Coinpaper.com. Stay up-to-date on the latest trends and developments in the crypto space.

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It's 'Clear' Tether is in the US Government's Crosshairs, Ripple CEO 

The Blockchain Integrity Act has been introduced in the U.S. House of Representatives, and its aim is to impose a temporary two-year ban on cryptocurrency mixers.

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U.S. Representatives Propose Two-Year Ban on Cryptocurrency Mixers

The total supply of Ether increased from 120 million to 120.1 million two months after the Dencun upgrade went live.

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Ether Supply Turns Inflationary for the First Time Since 2022

Brad Garlinghouse recently shared his concerns on the "World Class" podcast about potential U.S. regulatory actions against Tether. He also touched on the major repercussions this would have on the crypto market. Despite this, Tether is expanding its presence in the Eastern European crypto market by increasing its investment in CityPay.io, a Georgia-based crypto payment provider. There are also some global advancements in stablecoin technology, like the Philippines testing a peso-backed stablecoin and Lightning Labs integrating stablecoins into the Bitcoin network using the Taproot upgrade.

, shared some of his concerns on the "World Class'' 

 about potential regulatory actions against Tether by the U.S. government. He also suggested that these actions could have a major impact on the cryptocurrency market. Garlinghouse did not specify the nature of these potential actions but emphasized Tether's crucial role in the crypto ecosystem.

Garlinghouse said on the podcast that there would “100%” be another crypto-related black swan event like the 

. “The U.S. government is going after Tether, that is clear to me,” he said without elaborating more on this. He actually stopped short of suggesting any possible U.S. action against Tether would be the next black swan event, but he did say it is an “interesting one to watch.”

 its own U.S. dollar stablecoin in 2024.  According to Ripple CTO David Schwartz, the stablecoin will be backed by dollar deposits and short-term government securities. 

Tether, under its parent company Tether Holdings, is the largest stablecoin issuer by market capitalization and has 

 over the years. In 2021, Tether settled with the Commodity Futures Trading Commission for $41 million after being accused of misrepresenting the reserve holdings that backed its USDT tokens. Additionally, U.S. authorities have been investigating Tether since at least 2022 for potential misconduct, including the alleged concealment of transactions linked to cryptocurrencies.

U.S. politicians have also raised concerns about Tether's operations, with some even suggesting the company may have been involved in activities that could support terrorism. Tether 

 to these allegations by pointing out its commitment to 

Tether Boosts Investment in Eastern European Crypto Market

 is actively being targeted by US authorities and Senators, the stablecoin company is 

 its investment in the Eastern European crypto market by funding CityPay.io, a Georgia-based crypto payment provider. This follows Tether's initial investment in 

 after committing to boost crypto use in the region.

CityPay.io allows people to pay for services like Wendy’s and Radisson Hotels with cryptocurrencies like 

. With Tether's additional investment that was announced on May 8, CityPay.io now plans to expand its services across Eastern Europe, targeting countries like Georgia, Armenia, Azerbaijan, Kazakhstan, and Uzbekistan.

Currently, CityPay.io operates in over 600 locations in Georgia and is developing its own e-wallet and card solutions, which are expected to launch within the next two years. The company also has very ambitious plans to establish more than 500,000 crypto payment points throughout its target markets.

Tether's CEO, Paolo Ardoino, believes that the initial collaboration with CityPay.io already greatly improved crypto accessibility in Georgia. He now hopes that the new investment will further disrupt traditional payment systems. CityPay.io integrated with Tether for payments using the 

 network in October of 2023, and the two companies seem excited to extend their working partnership into the future.

Georgia's government is also playing a big role in creating a more crypto-friendly environment. Georgia signed a memorandum of understanding with Tether in June of 2023 to develop Bitcoin and peer-to-peer infrastructure. The country is now working towards  positioning itself as a global crypto hub, supported by the presence of other major firms like Binance and an extensive network of 

 are a type of cryptocurrency that is designed to minimize the volatility often associated with digital currencies like Bitcoin. They do this by pegging their value to other stable assets like fiat currencies, commodities, or financial instruments. This linkage helps stablecoins maintain a consistent value, making them more suitable for everyday transactions when compared to more 

The importance of stablecoins stems from the erratic nature of popular cryptocurrencies like Bitcoin, which can experience large price fluctuations in very short periods. This volatility can be very beneficial for traders but poses risks for ordinary transactions, where both 

 are looking for price stability to preserve value.

By offering a more stable alternative, stablecoins cater to users looking for more reliable mediums of exchange in the digital economy. They are particularly crucial for businesses and consumers who want to use cryptocurrencies without the risk of drastic price changes affecting their spending power or investment value shortly after a transaction. This stability helps bridge the gap between traditional fiat currencies and cryptocurrencies by providing a less volatile digital currency option.

Philippines' Peso-Backed Stablecoin Enters Pilot Phase

Although stablecoins are facing some legal and regulatory hurdles in the U.S., it seems like the 

 is embracing the technology. The Bangko Sentral ng Pilipinas (BSP)  

 a pilot project for a Philippine Peso-backed stablecoin, PHPC, in collaboration with crypto wallet provider 

. The grant was approved under BSP’s Regulatory Sandbox Framework.

Coins.ph will hold cash reserves in pesos equivalent to the circulating supply of the PHPC stablecoin in the controlled sandbox environment. The peg to the local currency will make it easy to seamlessly convert back to physical pesos.

The pilot project will test the stablecoin’s performance in real-world scenarios and its impact on the existing fiat ecosystem. Some of the potential applications for PHPC include domestic and cross-border payments, trading with other digital assets, hedging against market volatility, and serving as collateral in decentralized finance (

The duration of the sandbox testing could range from three to twelve months, depending on the complexity of the project. While a formal public rollout will require final evaluations and approvals from the BSP, this is still a big step towards integrating digital currencies into the Philippine financial landscape.

This move is very similar to an initiative from 

, which launched its own peso-backed stablecoin, PHX, in July of 2019. 

At the Crypto and Digital Assets Summit hosted by FT Live in London, Elizabeth Stark, the CEO of Lightning Labs, revealed some interesting advancements when it comes to  integrating stablecoins and other 

 assets into the Bitcoin network by using the recent Taproot upgrade. Stark also talked about how the development team at Lightning Labs launched an early version of the code and successfully demonstrated the first transaction of an asset over the 

The Taproot assets protocol spearheaded by Lightning Labs plans to address the high fees and other issues that are associated with digital assets on other blockchains. Stark believes in Bitcoin's robust security and decentralization and sees it as ideal for facilitating stablecoins. She also made sure to point out the increased adoption of stablecoins, especially in emerging markets where they serve as a reliable store of value amidst economic volatility.

The Lightning Labs CEO shed some light on the low transaction costs possible through the Lightning Network, comparing favorably to traditional financial systems like 

, which can charge fees up to 3%. This development promises more accessible global transactions at significantly reduced rates, boosting the potential of Bitcoin and the Lightning Network to revolutionize financial interactions with stablecoins and tokenized assets.

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The U.S. is seeing a lot of legislative activity around crypto regulations at the moment. The House of Representatives introduced the Blockchain Integrity Act to impose a temporary two-year ban on crypto mixers. Meanwhile, another bill, H.J. Res 109, passed in the House of Representatives challenges SEC regulations by seeking to allow banks to hold cryptocurrencies similar to traditional assets. It has, however, faced opposition from President Biden. Robinhood reported an impressive increase in crypto trading volumes, contributing to a very profitable Q1 for the platform, even as it faces regulatory scrutiny from the SEC.

Legislators Call for Temporary Halt on Crypto Mixers

 are shaking in their boots as a new legislative proposal, the 

, has been introduced in the U.S. House of Representatives. Its aim is to impose a temporary two-year ban on cryptocurrency mixers. The act is co-sponsored by  Democratic Representative Sean Casten, Representatives Bill Foster, Brad Sherman, and Emanuel Cleaver. The main goal of the bill will be to address some concerns when it comes to the role of mixers in obscuring financial transactions.

 that crypto mixers function by pooling cryptocurrencies which allows people to withdraw funds to a new address without revealing the connection between the initial deposit and the withdrawal addresses. The proposed bill will prevent financial entities like crypto exchanges, virtual asset service providers, and registered money service businesses from dealing with funds that have passed through a mixer. Every violation would carry a potential civil penalty of up to $100,000.

During the proposed ban, the U.S. Treasury Department will compile a detailed report. It will include the percentage of mixer transactions linked to illicit activities, legitimate applications of mixers, law enforcement's ability to trace or block such transactions, and how other jurisdictions regulate mixers.

This will not be the first time the U.S. has 

 against crypto mixers. The Treasury’s Office of Foreign Asset Control 

 in August of 2022, a move that was later upheld in court. The founders of Tornado Cash have also faced charges related to money laundering and sanctions violations in both the U.S. and the Netherlands.

 digital currencies like Monero also have targets on their backs, and they have faced regulatory pressure after the introduction of new Anti-Money Laundering laws in the European Union. 

House Passes Bill Overturning SEC Crypto Custody Rules

On the other hand, the United States House of Representatives also recently passed a bill that challenges existing 

 (SEC) guidelines preventing banks from holding cryptocurrencies in the same way they hold traditional assets like securities. 

, and plans to overturn the SEC's Special Accounting Bulletin (SAB 121) that was introduced in March of 2022.  SAB 121 requires banks to include cryptocurrencies held on behalf of customers in their balance sheets, which is not required with traditional custodial assets.

Republican Congressman Mike Flood, who introduced the resolution, 

 that want to offer crypto custody services by bemanding that these holdings be treated differently from other custodial assets. The bill received a lot of bipartisan support in the House, passing with a total of 228 votes to 182.

Biden to Veto Bill Easing SEC's Crypto Custody Regulations

Unfortunately, not everyone is very happy with the bill. Despite the bill's passage in the House, President 

 expressed strong opposition and even stated that he would veto the bill should it reach his desk. 

 opposing the legislative move to overturn SAB 121. Biden seems to believe that such action would undermine the 

 to protect investors in the crypto markets and maintain stability in the broader financial system. The White House also pointed out that limiting the SEC’s regulatory capacity could lead to serious financial instability and uncertainty in the market. 

Supporters of the bill like SEC Commissioner 

 have criticized SAB 121 and called it a barrier to regulated financial institutions wishing to serve as crypto custodians. She also claims it treats crypto assets differently from other types of assets and could prevent banks from entering the crypto custody market.

In its statement, the House Financial Services Committee (HSFC) argued that overturning SAB 121 would actually protect consumers by making it possible for highly regulated institutions to act as custodians for digital assets. HSFC Chairman 

For now, the bill’s fate hangs in the balance with a potential presidential veto looming as it moves forward in the legislative process.

Robinhood Reports Strong Q1 Despite SEC Setback

The SEC is also seeing some pushback from other areas in the crypto industry. Robinhood's CEO, Vladimir Tenev, recently shared his disappointment about a recent 

Despite this setback, Robinhood reported an impressive 224% increase in crypto trading volumes, reaching $36 billion. This surge contributed to almost 40% of the firm's transaction-based revenue, which totaled $329 million. The robust crypto activity helped Robinhood secure its second consecutive profitable quarter, with net income standing at $157 million.

The SEC's Wells notice scrutinizes Robinhood's crypto listings and custodian services, which Teven 

 a "disappointing development". Jason Warnick, Robinhood's CFO, pointed out the company's conservative approach to coin listings and maintaining high compliance standards similar to its brokerage operations. Considering this, Robinhood's management assured its users that customer accounts are unaffected and vowed to defend the firm and advocate for their clients.

After the earnings announcement, the company's 

 spiked by 7.3% in after-hours trading. Year-to-date, the company's share price increased by more than 44%.

Additionally, Robinhood also reported that it now holds $26.2 billion in crypto assets for users, a 78% increase from the previous quarter. This growth came coupled with massive  market movements, including a 65.1% increase in the 

, a fintech broker, revolutionized the investment landscape by offering a commission-free trading platform that caters to the everyday investor. It was founded in 2013 by Vladimir Tenev and Baiju Bhatt. Robinhood made it possible for people to trade stocks, 

 without needing a minimum account balance.

The platform gained a lot of traction during the COVID-19 pandemic, as lockdowns prompted a surge in home trading, which ended up boosting Robinhood’s annual revenue to $958 million in 2020—a 245.18% increase from the previous year. This growth was also propelled by the "meme stock" phenomenon in early 2021, exemplified by the GameStop short squeeze that was orchestrated by retail investors on the r/WallStreetBets forum.

Despite its user-friendly interface and features like commission-free trades, 1% matched IRAs, and access to crypto trading, Robinhood has faced some criticism. Critics argue that the platform makes it too easy for inexperienced investors to engage in risky trading practices. The platform has also been scrutinized for limited investment education resources, a narrow range of investment options, inadequate customer support, and technical issues during peak trading times. The SEC’s latest legal action against Robinhood is also not making things any better for the platform and its users.

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The Ethereum supply stopped being deflationary after its Dencun upgrade, which made transaction fees cheaper but reduced the rate of Ether being burned. This started discussions about Ethereum moving away from being "ultra sound money." Meanwhile, Coinbase is expanding its decentralized services through Base, with the goal to facilitate Web3 access and streamline KYC procedures. Additionally, tensions between the crypto industry and the U.S. Securities and Exchange Commission (SEC) are still rising, especially when it comes to the SEC’s reclassification of Ether as a security.

Ethereum Sees Supply Increase Post-Dencun

 network underwent a major shift after its latest 

. The Ether (ETH) supply stopped being deflationary for the first time since September of 2022. This is a very noticeable departure from the decreasing Ether supply that was seen after the 

 happened, which transitioned Ethereum to a proof-of-stake consensus model and introduced a fee-burning mechanism.

, the total supply of Ether increased from 120 million on Mar. 12 to 120.1 million on May 7, two months after the Dencun upgrade went live. This minor increase in supply was the first inflationary period for ETH since the Merge was implemented.

Despite this, the impact on Ethereum’s broader ecosystem may be minimal. Ki Young Ju, the founder and CEO of CryptoQuant, believes that Ethereum's main strengths lie in its decentralized applications (DApps), suggesting that comparing it to 

 narrative of sound money might be misplaced.

The "Ultra sound money" narrative for Ethereum refers to a concept inspired by Bitcoin's "sound money" principle, which emphasizes the importance of creating a monetary system that is resistant to inflation and maintains its purchasing power over time.

The Dencun upgrade, while ending the deflationary trend, has made transaction fees on Ethereum up to four times cheaper. On the other hand, this reduction in fees led to a decrease in the amount of Ether being 

, which contributed to the slight increase in its total supply.

Although this change might alter the perception of Ether as "ultra-sound" money, it certainly proves that Ethereum is going through an evolution and it is working on improving user experience and network efficiency.

Inflationary and deflationary cryptocurrencies are differentiated by how their supplies change over time, each employing specific mechanisms to manage supply dynamics and network incentives.

Inflationary cryptocurrencies have an increasing supply, where new coins are continuously added to the system. This approach involves a fixed or variable maximum cap on the total number of coins that can be minted, with some cryptocurrencies like Dogecoin (

) choosing to remove their supply caps altogether, leading to an unlimited supply. 

The distribution of new coins in these systems typically happens through consensus mechanisms like proof-of-work (PoW) or 

 (PoS). In PoW systems, like Bitcoin, miners validate transactions and earn coins by solving cryptographic puzzles first. In PoS systems, validators stake their own coins and are chosen to validate new transactions, earning rewards proportionally to their stakes.

Deflationary cryptocurrencies, on the other hand, see their total supply decrease over time through mechanisms like transaction fee burning or direct coin destruction. These tokens mostly have a set deflation rate which dictates the annual percentage decrease in supply.

Deflationary strategies are implemented to enhance scarcity and potentially increase the value of the remaining tokens. Some cryptocurrencies, like Binance Coin (BNB), implement coin burns to reduce their circulating supply systematically. Additionally, events like Bitcoin's "

" reduce the mining rewards by half about every four years, which ends up constricting the supply even more.

Coinbase’s Vision for Ethereum and USDC

 is getting ready to cater to a billion customers by integrating decentralized applications across millions of blockchains. At the TokenizeThis 2024 conference in Miami, Coinbase’s head of tokenization, Anthony Bassili, shared the company’s ambitious plan to include 

 (KYC) and Anti-Money Laundering (AML) procedures through an innovative identity attestation process using the Ethereum Attestation service and Coinbase’s verification system, which tags users’ smart wallets post-KYC. Bassili is very confident in the evolution of this system towards a KYC reliance model, which will simplify the KYC process over time. More than 300,000 wallets have already undergone this attestation. 

Base will leverage Ethereum Virtual Machine (EVM) networks to give 

 access for users with attested wallets and verified identities. The ecosystem will be supported by the stablecoin 

, and after Coinbase's equity stake acquisition in Circle in August, the company now has more than $28 billion in total assets in Circle. Coinbase also has the ability to mint USDC.

Looking ahead, Bassili is optimistic about the potential shift towards trading tokenized assets across various classes directly, without the need to convert them into dollars first. However, he believes that for this to actually happen depends on the development of regulatory frameworks and market structures that are designed with instantaneous identity checks. 

In its May report, Franklin Templeton declared  that "Base Season" has started. The report specifically shed some light on the surge of Social Finance (SocialFi) applications and the fact that  Base is now leading its peers in this area. In fact, 

 has captured about 46% of SocialFi transactions, allowing it to outpace other networks like BNB Chain and 

. Support from Coinbase has certainly helped Base secure almost half of the market share in SocialFi to date.

One of the standout SocialFi applications on Base is Friend.tech, which makes it possible for  creators to monetize their content in innovative ways like "key" shares or "tokenized attention." Franklin Templeton not only lauded Base's performance in SocialFi, but also predicted it will continue to be a crucial area for the network's adoption and growth.

In addition to its achievements in SocialFi, Base has also benefited from the recent surge in 

 to $5.4 billion, making it the third-largest Ethereum layer 2 network. In contrast, leading networks like Arbitrum One and OP Mainnet have experienced declines in their TVLs in recent months.

 in August last year, currently has full control over the network as its sole sequencer. However, plans are in place to gradually decentralize Base. The network is built on Optimism’s OP stack and is tailored to provide a secure, cost-efficient, and builder-friendly environment for Ethereum Virtual Machine-compatible applications. 

 and Base are doing is turning heads in the industry, but not everyone is very happy about this. 

, co-founder of Ethereum and CEO of Consensys, shared some of  his concerns at FT Live’s Crypto and Digital Asset Summit in London about the U.S. Securities and Exchange Commission's (SEC) approach to regulation.

Lubin criticized the SEC for its very vague reclassification of 

 and its reliance on enforcement actions rather than transparent rulemaking. He believes this has almost created an environment of fear, uncertainty, and doubt in the industry.

 after a Wells notice, a move Lubin firmly believes is necessary to get clearer legal guidance, especially considering the fact that the Commodity Futures Trading Commission previously classified Ether as a commodity. He suspects the SEC's timing of its 

 is very strategic as it could be used as a reason to deny 

Lubin also shared his thoughts on the broader implications of the SEC's actions and  suggested that  it reflects a fear of the transformative potential of decentralized finance. He is also not very happy about the notion promoted by the SEC that platforms like Coinbase and wallets like MetaMask should be treated as broker-dealers.