China Releases Web3 Whitepaper

Plus Indian exchanges fight to survive and a debt ceiling deal in the US

Author

Nathaniel Whittemore
May 30, 2023

The Breakdown First Five - Tuesday May 30, 2023

5. Gemini and Genesis ask for dismissal

Gemini and Genesis are seeking to dismiss the SEC’s lawsuit for securities violations. The lawsuit came as a response to the Genesis bankruptcy in January and took aim at Gemini’s Earn program, claiming it was an unregistered securities offering. The motion digs in on the idea that not all financial arrangements are securities and adds to the SEC’s long list of contested Crypto cases as the industry pushes back.

4. Sovereign Mistakes: Cautious Temasek reflects on FTX

Singapore sovereign wealth fund Temasek has taken “collective accountability” for its $275M FTX investment after internal review. The fund has blamed “fraudulent conduct intentionally hidden from investors” but cleared its investment team of misconduct. The team and senior management have accepted reduced salary in penance for their mistake and the fund said it will be cautious in further investments into Crypto firms.

3. Indian exchanges in survival mode

Indian exchanges are slashing costs in an effort to extend their runway. A punitive 1% transaction tax drove onshore volumes down more than 70% this year, leaving exchanges with precious little revenue to see themselves through the Crypto winter. Payment rails have also been cut off adding up to a set of policies some say could kill the industry in India.

2. Debt Ceiling Deal

A deal has been struck to resolve the debt ceiling. Spending caps for 2 years and a renegotiation on the debt limit in early 2025. Both the IRS and Pentagon will see funding reined in, while the student debt moratorium comes to a close. Congressional vote will likely be held Wednesday. Analysts say refilling the treasury could be negative for liquidity across risk markets. Few seem happy with the compromise but might be able to accept it.

1. Beijing Whitepaper

The CCP is diving into the metaverse with a web 3 whitepaper looking to foster the industry’s development in China. With Hong Kong’s new Crypto regulations kicking off this week the timing could not be better. The paper says immersive internet experiences are the inevitable future and calls for an industry consensus on how to promote China as a global innovation hub for the digital economy.

Latest Episodes of The Breakdown

Thanks for reading -NLW