Top Stories This Week<\/strong><\/h2>\nKraken reaches $30M settlement with SEC over staking as IRS seeks user information<\/strong><\/h3>\nKraken has agreed to stop offering<\/a> staking services or programs to United States clients after reaching an agreement with the U.S. Securities and Exchange Commission (SEC). Along with ceasing operations, the crypto exchange will pay $30 million in disgorgement, prejudgment interest and civil penalties. The SEC claims that Kraken failed to register the program as a securities offering. The move has sparked controversy within the SEC. Commissioner Hester Peirce has publicly rebuked her own agency over the shutdown<\/a>, arguing that regulation by enforcement \u201cis not an efficient or fair way of regulating\u201d an emerging industry.<\/p>\nFTX CEO testifies on \u2018pure hell\u2019 post-bankruptcy days at exchange<\/strong><\/h3>\nJohn Ray, who took over as CEO<\/a> of crypto exchange FTX, has described in a court hearing some of the chaotic experiences at the firm following the company declaring bankruptcy. According to Ray, there was \u201cnot a single list of anything\u201d related to bank accounts, income, insurance or personnel, causing a \u201cmassive scramble for information.\u201d As the bankruptcy proceedings continue, the names of two guarantors<\/a> who signed off on part of Bankman-Fried\u2019s $250 million bail bond will remain withheld for now, after a last-minute appeal. In another headline, a federal judge denied a joint agreement<\/a> between Bankman-Fried\u2019s legal team and prosecutors that would allow him to use certain messaging apps, including Facebook Messenger.<\/p>\n\nRead also<\/p>\n
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\n Features<\/span><\/p>\nYou Say You Want a Revolution: What Blockchain Can Learn from One Man\u2019s Attempt to Save the World<\/p>\n
<\/a>\n <\/div>\n
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\n Features<\/span><\/p>\nDespite the bad rap, NFTs can be a force for good<\/p>\n
<\/a>\n <\/div>\n<\/div>\n<\/div>\n
Binance to temporarily suspend bank transfers in US dollars<\/strong><\/h3>\nBinance has temporarily suspended<\/a> deposits and withdrawals of United States dollars (USD) through bank accounts. The suspension was not explained, and no other trading methods will be affected. The freeze applies only to international users, as Binance.US claims that its customers will not be affected. The crypto exchange giant has been facing banking challenges in the U.S. Recently, Binance\u2019s SWIFT transfer partner, Signature Bank, said it would only process trades<\/a> by users with USD bank accounts over $100,000.<\/p>\n<\/strong>Genesis creditors to expect 80% recovery under proposed restructuring plan<\/strong><\/h3>\nGenesis Global reached an \u201cagreement in principle\u201d<\/a> with Digital Currency Group and its creditors, aiming to return at least 80% of their funds. The agreement will eventually see Genesis\u2019 crypto trading and market-making arm sold as part of restructuring efforts. Effects of Genesis\u2019 bankruptcy reached Cash Cloud<\/a>, an automatic teller machine operator in the United States and Brazil. Genesis is Cash Cloud\u2019s biggest creditor, with a $108 million unsecured loan. Cash Cloud has liabilities between $100 million to $500 million.<\/p>\nEthereum co-founder Joe Lubin says no chance ETH is classed as security<\/strong><\/h3>\nEthereum co-founder and crypto entrepreneur<\/a> Joseph Lubin is confident that Ether won\u2019t be classified as a security in the United States. \u201cI think it\u2019s as likely, and would have the same impact, as if Uber was made illegal,\u201d he told Cointelegaph in an interview in Tel Aviv at the Web3 event Building Blocks 23. In September 2022, U.S. SEC chair Gary Gensler suggested that Ethereum\u2019s transition to a proof-of-stake (PoS) consensus model might have brought ETH into regulatory spotlight<\/a>.<\/p>\n![\"\"](\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Michael-Demissie-1024x682.png\")
<\/figure>\nWinners and Losers<\/strong><\/h2>\n![\"\"](\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/WL-feb-11-01-1024x826.jpg\")
<\/figure>\nAt the end of the week, Bitcoin (<\/strong>BTC<\/strong><\/a>)<\/strong> is at $21,707<\/strong>, Ether (<\/strong>ETH<\/strong><\/a>)<\/strong> at $1,525<\/strong> and XRP<\/strong><\/a> at $0.38<\/strong>. The total market cap is at $1.01 <\/strong>trillion, according<\/a> to CoinMarketCap.<\/p>\nAmong the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are The Graph (GRT) <\/strong>at 74.43%, SingularityNET (AGIX) <\/strong>at 65.51% and Rocket Pool (RPL)<\/strong> at 15.155%.<\/p>\nThe top three altcoin losers of the week are Fantom (FTM) <\/strong>at -31.15%, Optimism (OP) <\/strong>at -23.79% and Aptos (APT) <\/strong>at -22.28%.<\/p>\nFor more info on crypto prices, make sure to read Cointelegraph\u2019s market analysis<\/a>.<\/p>\n\nRead also<\/p>\n
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\n Features<\/span><\/p>\nCrypto scoring big with European football<\/p>\n
<\/a>\n <\/div>\n
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\n Features<\/span><\/p>\nGet your money back: The weird world of crypto litigation<\/p>\n
<\/a>\n <\/div>\n<\/div>\n<\/div>\n
Most Memorable Quotations<\/strong>
<\/h2>\n\n\u201cWhat we see is clients are absolutely interested in digital assets, broadly.\u201d<\/p>\n<\/blockquote>\n
Michael Demissie<\/strong><\/a>, head of digital assets at BNY Mellon<\/strong><\/p>\n\n\u201cThe digital pound could exist alongside other forms of money, including stablecoins.\u201d<\/p>\n<\/blockquote>\n
Bank of England and HM Treasury<\/strong><\/a><\/p>\n\n\u201cClearly if you want integrity within a metaverse, then blockchain will play a part.\u201d<\/p>\n<\/blockquote>\n
Robert Joyce<\/strong><\/a>, chief technology officer at Nokia Oceania<\/strong><\/p>\n\n\u201cBanks [in the U.S.] are reevaluating whether continuing to provide these [crypto] services is worth the risk.\u201d<\/p>\n<\/blockquote>\n
Aaron Kaplan<\/strong><\/a>, co-CEO of Prometheum and of counsel at Gusrae Kaplan Nusbaum<\/strong><\/p>\n\n\u201cMetaMask has historically been an Ethereum wallet. We need to start moving beyond that. The multichain future is very clear.\u201d<\/p>\n<\/blockquote>\n
Alex Jupiter<\/strong><\/a>, product manager of accounts and key management at MetaMask<\/strong><\/p>\n\n\u201cCBDC is a way to advance the sophistication of payment systems, as well as ensuring economic security through a local currency that does not depend on other countries.\u201d<\/p>\n<\/blockquote>\n
Soramitsu<\/strong><\/a>, Japanese financial software developer<\/strong><\/p>\nPrediction of the Week\u00a0<\/strong><\/h2>\nEthereum price risks 20% correction amid SEC\u2019s crackdown on crypto staking<\/strong><\/h3>\nEthereum\u2019s native token saw its worst<\/a> daily performance of the year as the U.S. SEC stopped crypto exchange Kraken from offering crypto staking services. The news pushed down the prices of many proof-of-stake blockchain project tokens.
<\/strong>The <\/strong>SEC crackdown on crypto staking begins as Ethereum\u2019s key network upgrade, Shanghai, is set for release in March. Bitwise Asset Management\u2019s chief investment officer, Matt Hougan, considers Shanghai a bullish event for Ether:<\/p>\n\u201cToday, many investors who would like to stake ETH and earn yield are sitting on the sidelines. After all, most investment strategies can\u2019t tolerate an indefinite lock-up,\u201d Hougan said in a January investor letter. From a technical perspective, Ether price is positioned for a potential 20% price correction in February, according to Cointelegraph\u2019s analysis.<\/p>\n
FUD of the Week\u00a0<\/strong><\/h2>\n![\"\"](\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Alex-Jupiter-1024x682.png\")
<\/figure>\n<\/h3>\n<\/strong><\/strong>SEC chair issues warning to crypto firms after action on Kraken staking<\/strong><\/h3>\nU.S. Securities and Exchange Commission<\/a> chair Gary Gensler issued a warning to crypto companies to \u201ccome in and follow the law\u201d after the agency announced a settlement with crypto exchange Kraken. This is the latest effort by the country\u2019s authorities to crack down on crypto firms, as banks have allegedly been discouraged<\/a> from dealing with crypto firms in recent weeks by U.S. officials, aiming to make crypto business \u201ccompletely unbanked,\u201d sources told Cointelegraph.<\/p>\nStablecoin issuer Paxos reportedly probed by New York regulators<\/strong><\/strong><\/h3>\nThe New York State Department of Financial<\/a> Services is reportedly investigating Paxos Trust Company, the stablecoin issuer behind Binance USD (BUSD) and Pax Dollar (USDP). The department is reportedly seeking to protect customers from the risks associated with cryptocurrency investments. On its website, Paxos claims that its BUSD and USDP token reserves are 100% backed by U.S. dollars and U.S. Treasury bonds.<\/p>\n3AC new exchange triggers backlash from the crypto community \u2014 \u2018No, thank you\u2019<\/strong><\/h3>\nThe launch of the exchange project backed<\/a> by the bankrupt hedge fund Three Arrows Capital (3AC) attracted a mob of angry community members. Open Exchange, a crypto exchange project that 3AC and CoinFLEX initially proposed, launched a website on Feb. 9. 3AC co-founder Su Zhu pointed out that the project is a way to make up for his past mistakes. 3AC went bankrupt in July, after suffering losses from Terra\u2019s collapse two months earlier.<\/p>\nBest Cointelegraph Features<\/strong><\/h2>\n![\"\"](\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Bank-of-England-and-HM-Treasury-1024x682.png\")
<\/figure>\n<\/strong><\/strong>Justin Aversano makes a quantum leap for NFT photography<\/strong><\/h3>\nJustin Aversano\u2019s journey<\/a> into NFTs began with a personal story of loss and recovery.<\/p>\nChina\u2019s 180M digital yuan airdrop, Devastation in Turkey, Laos\u2019 CBDC: Asia Express<\/strong><\/strong><\/h3>\n
Kraken has agreed to stop offering<\/a> staking services or programs to United States clients after reaching an agreement with the U.S. Securities and Exchange Commission (SEC). Along with ceasing operations, the crypto exchange will pay $30 million in disgorgement, prejudgment interest and civil penalties. The SEC claims that Kraken failed to register the program as a securities offering. The move has sparked controversy within the SEC. Commissioner Hester Peirce has publicly rebuked her own agency over the shutdown<\/a>, arguing that regulation by enforcement \u201cis not an efficient or fair way of regulating\u201d an emerging industry.<\/p>\n John Ray, who took over as CEO<\/a> of crypto exchange FTX, has described in a court hearing some of the chaotic experiences at the firm following the company declaring bankruptcy. According to Ray, there was \u201cnot a single list of anything\u201d related to bank accounts, income, insurance or personnel, causing a \u201cmassive scramble for information.\u201d As the bankruptcy proceedings continue, the names of two guarantors<\/a> who signed off on part of Bankman-Fried\u2019s $250 million bail bond will remain withheld for now, after a last-minute appeal. In another headline, a federal judge denied a joint agreement<\/a> between Bankman-Fried\u2019s legal team and prosecutors that would allow him to use certain messaging apps, including Facebook Messenger.<\/p>\n Read also<\/p>\n You Say You Want a Revolution: What Blockchain Can Learn from One Man\u2019s Attempt to Save the World<\/p>\n <\/a>\n <\/div>\n Despite the bad rap, NFTs can be a force for good<\/p>\n <\/a>\n <\/div>\n<\/div>\n<\/div>\n Binance has temporarily suspended<\/a> deposits and withdrawals of United States dollars (USD) through bank accounts. The suspension was not explained, and no other trading methods will be affected. The freeze applies only to international users, as Binance.US claims that its customers will not be affected. The crypto exchange giant has been facing banking challenges in the U.S. Recently, Binance\u2019s SWIFT transfer partner, Signature Bank, said it would only process trades<\/a> by users with USD bank accounts over $100,000.<\/p>\n Genesis Global reached an \u201cagreement in principle\u201d<\/a> with Digital Currency Group and its creditors, aiming to return at least 80% of their funds. The agreement will eventually see Genesis\u2019 crypto trading and market-making arm sold as part of restructuring efforts. Effects of Genesis\u2019 bankruptcy reached Cash Cloud<\/a>, an automatic teller machine operator in the United States and Brazil. Genesis is Cash Cloud\u2019s biggest creditor, with a $108 million unsecured loan. Cash Cloud has liabilities between $100 million to $500 million.<\/p>\n Ethereum co-founder and crypto entrepreneur<\/a> Joseph Lubin is confident that Ether won\u2019t be classified as a security in the United States. \u201cI think it\u2019s as likely, and would have the same impact, as if Uber was made illegal,\u201d he told Cointelegaph in an interview in Tel Aviv at the Web3 event Building Blocks 23. In September 2022, U.S. SEC chair Gary Gensler suggested that Ethereum\u2019s transition to a proof-of-stake (PoS) consensus model might have brought ETH into regulatory spotlight<\/a>.<\/p>\n At the end of the week, Bitcoin (<\/strong>BTC<\/strong><\/a>)<\/strong> is at $21,707<\/strong>, Ether (<\/strong>ETH<\/strong><\/a>)<\/strong> at $1,525<\/strong> and XRP<\/strong><\/a> at $0.38<\/strong>. The total market cap is at $1.01 <\/strong>trillion, according<\/a> to CoinMarketCap.<\/p>\n Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are The Graph (GRT) <\/strong>at 74.43%, SingularityNET (AGIX) <\/strong>at 65.51% and Rocket Pool (RPL)<\/strong> at 15.155%.<\/p>\n The top three altcoin losers of the week are Fantom (FTM) <\/strong>at -31.15%, Optimism (OP) <\/strong>at -23.79% and Aptos (APT) <\/strong>at -22.28%.<\/p>\n For more info on crypto prices, make sure to read Cointelegraph\u2019s market analysis<\/a>.<\/p>\n Read also<\/p>\n Crypto scoring big with European football<\/p>\n <\/a>\n <\/div>\n Get your money back: The weird world of crypto litigation<\/p>\n <\/a>\n <\/div>\n<\/div>\n<\/div>\n \u201cWhat we see is clients are absolutely interested in digital assets, broadly.\u201d<\/p>\n<\/blockquote>\n Michael Demissie<\/strong><\/a>, head of digital assets at BNY Mellon<\/strong><\/p>\n \u201cThe digital pound could exist alongside other forms of money, including stablecoins.\u201d<\/p>\n<\/blockquote>\n Bank of England and HM Treasury<\/strong><\/a><\/p>\n \u201cClearly if you want integrity within a metaverse, then blockchain will play a part.\u201d<\/p>\n<\/blockquote>\n Robert Joyce<\/strong><\/a>, chief technology officer at Nokia Oceania<\/strong><\/p>\n \u201cBanks [in the U.S.] are reevaluating whether continuing to provide these [crypto] services is worth the risk.\u201d<\/p>\n<\/blockquote>\n Aaron Kaplan<\/strong><\/a>, co-CEO of Prometheum and of counsel at Gusrae Kaplan Nusbaum<\/strong><\/p>\n \u201cMetaMask has historically been an Ethereum wallet. We need to start moving beyond that. The multichain future is very clear.\u201d<\/p>\n<\/blockquote>\n Alex Jupiter<\/strong><\/a>, product manager of accounts and key management at MetaMask<\/strong><\/p>\n \u201cCBDC is a way to advance the sophistication of payment systems, as well as ensuring economic security through a local currency that does not depend on other countries.\u201d<\/p>\n<\/blockquote>\n Soramitsu<\/strong><\/a>, Japanese financial software developer<\/strong><\/p>\n Ethereum\u2019s native token saw its worst<\/a> daily performance of the year as the U.S. SEC stopped crypto exchange Kraken from offering crypto staking services. The news pushed down the prices of many proof-of-stake blockchain project tokens. \u201cToday, many investors who would like to stake ETH and earn yield are sitting on the sidelines. After all, most investment strategies can\u2019t tolerate an indefinite lock-up,\u201d Hougan said in a January investor letter. From a technical perspective, Ether price is positioned for a potential 20% price correction in February, according to Cointelegraph\u2019s analysis.<\/p>\n U.S. Securities and Exchange Commission<\/a> chair Gary Gensler issued a warning to crypto companies to \u201ccome in and follow the law\u201d after the agency announced a settlement with crypto exchange Kraken. This is the latest effort by the country\u2019s authorities to crack down on crypto firms, as banks have allegedly been discouraged<\/a> from dealing with crypto firms in recent weeks by U.S. officials, aiming to make crypto business \u201ccompletely unbanked,\u201d sources told Cointelegraph.<\/p>\n The New York State Department of Financial<\/a> Services is reportedly investigating Paxos Trust Company, the stablecoin issuer behind Binance USD (BUSD) and Pax Dollar (USDP). The department is reportedly seeking to protect customers from the risks associated with cryptocurrency investments. On its website, Paxos claims that its BUSD and USDP token reserves are 100% backed by U.S. dollars and U.S. Treasury bonds.<\/p>\n The launch of the exchange project backed<\/a> by the bankrupt hedge fund Three Arrows Capital (3AC) attracted a mob of angry community members. Open Exchange, a crypto exchange project that 3AC and CoinFLEX initially proposed, launched a website on Feb. 9. 3AC co-founder Su Zhu pointed out that the project is a way to make up for his past mistakes. 3AC went bankrupt in July, after suffering losses from Terra\u2019s collapse two months earlier.<\/p>\n Justin Aversano\u2019s journey<\/a> into NFTs began with a personal story of loss and recovery.<\/p>\nFTX CEO testifies on \u2018pure hell\u2019 post-bankruptcy days at exchange<\/strong><\/h3>\n
\n Features<\/span><\/p>\n
\n Features<\/span><\/p>\nBinance to temporarily suspend bank transfers in US dollars<\/strong><\/h3>\n
<\/strong>Genesis creditors to expect 80% recovery under proposed restructuring plan<\/strong><\/h3>\n
Ethereum co-founder Joe Lubin says no chance ETH is classed as security<\/strong><\/h3>\n
<\/figure>\nWinners and Losers<\/strong><\/h2>\n
<\/figure>\n
\n Features<\/span><\/p>\n
\n Features<\/span><\/p>\nMost Memorable Quotations<\/strong>
<\/h2>\n\n
\n
\n
\n
\n
\n
Prediction of the Week\u00a0<\/strong><\/h2>\n
Ethereum price risks 20% correction amid SEC\u2019s crackdown on crypto staking<\/strong><\/h3>\n
<\/strong>The <\/strong>SEC crackdown on crypto staking begins as Ethereum\u2019s key network upgrade, Shanghai, is set for release in March. Bitwise Asset Management\u2019s chief investment officer, Matt Hougan, considers Shanghai a bullish event for Ether:<\/p>\nFUD of the Week\u00a0<\/strong><\/h2>\n
<\/figure>\n<\/h3>\n
<\/strong><\/strong>SEC chair issues warning to crypto firms after action on Kraken staking<\/strong><\/h3>\n
Stablecoin issuer Paxos reportedly probed by New York regulators<\/strong><\/strong><\/h3>\n
3AC new exchange triggers backlash from the crypto community \u2014 \u2018No, thank you\u2019<\/strong><\/h3>\n
Best Cointelegraph Features<\/strong><\/h2>\n
<\/figure>\n<\/strong><\/strong>Justin Aversano makes a quantum leap for NFT photography<\/strong><\/h3>\n
China\u2019s 180M digital yuan airdrop, Devastation in Turkey, Laos\u2019 CBDC: Asia Express<\/strong><\/strong><\/h3>\n
![\"Subscribe](\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2022\/10\/reading-copy.png\")
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