Historic day for crypto in Congress

Plus DOJ wants SBF in jail

Author

Nathaniel Whittemore
July 27, 2023

The Breakdown First Five - Tuesday July 25 2023

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

/imagine prompt a giant bitcoin behind the US capitol building

5. Fed delivers on hike

The Federal Reserve delivered on expectations of another 25bps hike, bringing interest rates to their highest level since 2001. In a say-nothing press conference, Powell refused to give forward guidance, instead saying that September’s meeting would be data dependent. Fed Economists are no longer forecasting a recession this year, with rate cut expectations pushing out well into next year. Inflation projected to stay above target until 2025.

4. Binance exits Germany, looks to re-enter Japan

Binance takes another step in the geographic shuffle, withdrawing a license application in German but making moves to re-enter the Japanese market. 2 years ago Binance was warned for operating without permission in Japan. Through a local acquisition, Binance Japan will be launched soon. The exchange said they will refile in Germany, but says the regulatory and market conditions have “changed significantly”.

3. Lazarus back with $37M hack

The Lazarus group is suspected to be behind a $37M hack of Crypto payments firm CoinsPaid. The company said the hack did not impact customer funds but did hit revenues, causing a one-week halt of services. The North Korean hacking group has also been blamed for the recent Atomic Wallet and Alphapo hacks, totalling $160M. CoinsPaid said they would convene a roundtable of Lazarus victims to collaborate on a security initiative.

2. DOJ: Send Sam to Jail

The DOJ has asked for SBF’s bail to be revoked, claiming that "no set of release conditions can secure the safety of the community." The Judge granted an interim gag order to prevent SBF from communicating with media after hearing that Sam had contacted a NYT reporter more than 100 times prior to the publication of Caroline’s journal. He has also contacted author Michael Lewis 500 times. Judge warns Sam to “take it seriously”. DOJ brief to revoke bail due on Friday.

1. Markups passed, Dems disgruntled

House Financial Services Committee has voted in favor of the Crypto market structure bill which will now proceed to a vote on the House floor if the House Ag Committee confirms. Senior Democrats panned the bill, Stephen Lynch called it “the worst piece of legislation” he’s ever seen. 6 younger Democrats broke party lines to vote yes, including Jim Himes who said it “makes the status quo better”. Emmer’s Regulatory certainty bill to limit registration requirements on non-custodial firms was also passed.

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