Crypto cops are preparing for an uneven war – TechCrunch

Hello everyone and welcome back Chain reaction.

In our Chain Reaction podcast this week, Anita and I talked to Jill Gunter of Slow Ventures about why there are so many stupid blockchains and whether we’re going into a future where everything is built on one chain. More details below.

Last week we talked a bit about the political isolation of Bitcoin that is happening as a result of its energy footprint. In a podcast this week, we talked about how the Wikimedia Foundation banned crypto donations after accepting them for eight years just because of the energy footprint of Bitcoin and Ethereum. For more than a decade, this saga has only just begun. This week we talked about how crypto cops are trying to keep up with the web3 explosion.

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This week, the state’s leading crypto cops got new funding to build their team and issued a nice little press release to tell the crypto industry to come get them. The SEC expanded the team from 30 to 50 and renamed the previously named “Cyber ​​Unit” the “Crypto Assets and Cyber ​​Unit”. Hiring up to 20 additional enforcement officers is a big deal for the SEC, although in the cryptocurrency this type of staff is what comes to most startups after raising start-up funds.

It’s always been a tough battle for the SEC, but 10 years ago the threat of someone pulling securities out of their basement wasn’t exactly what it is today. Crypto Faucet has released thousands and thousands of dubious projects that I am sure the regulator would like to touch on, but for now they are left with the almost impossible task of moderating an exploding industry and expanding its ambitions to —the most modest respect for the spirit of securities law.

As we touched on a bit in a podcast this week, news of the SEC’s crypto unit expansion has not been warmly welcomed by people in the industry, who say what they want is more guidance before more implementation takes place. This, of course, is not entirely surprising. It’s always been a nice little point to talk to crypto companies about regulation – I can say that they actually want more regulation, because they know how far most of that regulation is. Then, when the government finally takes action against them, they may complain that the agency with a lack of resources is doing it for them because it sets them apart from others doing the same thing. It’s been that way for a while.

This does not mean that the SEC has done nothing; I’m sure they’re much more focused on big cases at the moment. The agency says they have filed more than 80 “enforcement actions” against fraudulent and unregistered bids “resulting in cash benefits totaling more than $ 2 billion”. That’s a nice part of the change, but it’s still a drop in the bucket.

Now, on the part of the SEC, they say they are focused on using their reinforced team to combat fraudulent or illegal activities in the following areas: crypto asset offering, crypto asset exchange, crypto asset lending and investment products, decentralized financing (“DeFi”) ) platforms, Irreplaceable Tokens (“NFT”) and Stablecoins. That’s… almost everything there is, although I guess they haven’t said anything special about metaversion… For people who warn of the imminent regulatory reconstruction of cryptocurrencies, I think it’s important to set expectations and assess who exactly is on the other side of the equation.

under # 3

Hello Chain Reaction friends! Anita is here again with an update to our latest episode of the podcast.

The chaotic sale of Yuga Labs ’NFT land stole the show in the crypto world this week, temporarily clogging the entire Ethereum network and leaving some users to pay thousands of dollars in gas fees for NFTs they never actually received. Yuga has committed to repaying gas fees for failed transactions, but the crypto community is teeming with all sorts of hot attempts, and even conspiracy theories about why and how we came here, which Lucas and I unpacked on the show.

Our guest this week was Jill Gunter, a venture partner at Slow Ventures and co-founder of the first privacy-focused first layer blockchain, Espresso Systems. I already got into weeds with Jill in my article on Espresso after his Serie A last month, so Lucas and I asked her some bigger questions for this week’s floor, like why there are so many different blockchains in the first place and what it will be necessary for tradfi to get used to the crypt.

Subscribe to Chain Reaction on Apple, Spotify, or your alternate podcast platform of your choice to keep up with us every week.

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Where does the money to run in the crypto world go:

  1. Crypto publication Decrypt raises $ 10 million from Hack VC, Canvas Ventures and others
  2. Americana’s “physical” NFT market receives $ 6.9 million from Seven Seven Six
  3. DAO tool startup Syndicate raises $ 6 million from a16z, Carta and others
  4. The NFT sports betting application Stakes raised $ 5.3 million from DCG
  5. DeFi startup MYSO is raising $ 2.4 million from Huobi
  6. Metaverse esport group Team DAO receives $ 5 million from Klaytn and Animoc
  7. Web3 sports platform OneFootball earns $ 300 million from Liberty City Ventures
  8. The Argent crypto wallet app is taking $ 40 million from Index
  9. Layer 2 blockchain Minka raises $ 24 million from Tiger
  10. NFT / crypto wallet Venly receives $ 23 million from Courtside Ventures

added analysis

Some more cryptocurrencies from our TechCrunch + subscription service he curated Jacquelyn Melinek

Why the co-founder of Axie Infinity thinks profit games will spur the adoption of NFT
The popular crypto game for making money Axie Infinity has made huge progress in 2021 from a huge increase in the number of users to total revenue which has increased by more than 50,000% compared to the same time last year. But as we are almost in the middle of 2022, the question arises: is Axie holding her hype? The data doesn’t say much, but Axie co-founder Jeff “Jiho” Zirlin is not worried. “You can’t have exponential growth all the time; there is a refractory period, ”he said, but the game has more plans in preparation for the next growth cycle.

The crypto Bahamas signal stronger ties between the old and new worlds of finance
I may be recovering from burns, but don’t feel bad about me. I was down in the Caribbean in the Crypto Bahamas, a conference co-organized by the FTX cryptocurrency exchange and the SALT investor forum, where more than 2,000 participants discussed the nature of cryptocurrencies growing in the traditional financial market and what is needed for the future of this digital industry. emerging assets to succeed. The event was also significant as this was both the FTX and SALT’s first crypto-focused conference and it seems to be the beginning of building a bridge between the two worlds of traditional finance and decentralized finance.

Bitcoin miners say energy efficiency and regulatory security are crucial to the success of the industry
Speaking of Crypto Bahamas… some of the biggest names in bitcoin mining at the event came out on stage and talked about what they think is first and foremost needed for this industry to succeed: efficiency and regulatory clarity. Once regulation comes, the pace of innovation could increase for miners across the U.S., panelists said. But what does this mean for the energy industry as a whole?

Have a nice weekend! And remember, you can subscribe to the TechCrunch newsletter page and get this in your inbox on Thursday afternoon.

Lucas Matney

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