The crypto market is in much better shape than it was a month ago. Indeed, it appears that the asset class is finally reaching a turning point after a $1 trillion cut in its total market cap. But while we see the market slowly recovering, some encouraging news is hard to come by. Much of this week’s big crypto news is not very positive.
Much of the week was dominated by market policy and regulation. Of course, this conversation is justified by a series of bearish events: hacks, leaks and government investigations are eating up much of the bandwidth of crypto information. So while the market losses seem to have bottomed out, there is still a setback to overcome. Here’s what you need to know about this week’s top crypto news.
Top crypto news of the week
Binance is the target of allegations from the SEC and Reuters
Binance †BNB USD) is probably scrambling backstage this week to get some good PR. Previously, the exchange was accused by the Securities and Exchange Commission (SEC) of launching its crypto BNB in 2017. The agency claims that the coin is a security rather than a currency; as such, it should have registered the initial coin offering (ICO) with the SEC before launch. In addition, the company is revered in a long time Reuters article accusing him of dealing with billions of dollars worth of illegal transactions. Specifically, it links the exchange to the Russian darknet drug market Hydra and the North Korean state-funded hacker group. Lazarus†
Optimism Network Faces More Adversity After Market Maker’s Serious Mistake
The Optimism †OP-USD) network came into the limelight last week after its turbulent OP crypto airdrop. Yes, shame on the network because it does not accommodate the many investors who want to claim the token. However, the network’s suffering this week is not his fault. Optimism Developers Tried to Distribute 20 Million OP Tokens to the Market Maker winter mute† Wintermute employees, however, took care of the wrong wallet address. The 20 million OPs were sent to an unregistered wallet, which a bad actor quickly claimed for himself. The thief now controls all of the tokens, giving them significant governance power over the fledgling network.
Hacker Bored Ape Highlights Vulnerabilities With Notable NFT Project
Collect non-fungible tokens (NFTs) Bored Ape Yacht Club is one of the largest in the world, with a collection totaling several billion dollars. But if the project is certainly lucrative, it turns out to be far from safe. A hack from last weekend is the third community hack this year. A thief managed to infiltrate the community disagreement, manage a community manager’s account and use the account to run a phishing scam. Assets stolen by this scam total nearly $360,000. Investors are criticizing the project for failing to take proper steps to secure its official social media channels.
Layoffs and trade terminations show that companies are financially stranded
The leveling out of the market seen this year is starting to hit even the biggest players in the industry. This is evidenced by the recent trend of layoffs at large stock exchange companies. Winklevoss with double back Twin is one of the first to cut its workforce and lay off 10% of its employees. Coinbase (NASDAQ:PIECE OF MONEY), meanwhile, causes even more problems; Leaked emails suggest company promised not to cancel new hire offers just days before it was canceled all of its offers to new employees.
Bipartisan crypto bill introduced in Congress is one of the most talked-about ever
Perhaps the largest crypto account to date has just passed through the House this week. Drafted by Republican Senator Cynthia Lummis and sponsored by Democratic Senator Kirsten Gillibrand, the bill is one of the first bipartisan pieces of the crypto legislature. The bill is especially notable for taking away much of the SEC’s authority over crypto assets. Instead, he grants the Commodity Futures Trading Commission (CFTC) regulatory body. It also wants to offer tax exemptions for small profits. In addition, it paves the way for new research into the environmental impact of the industry.
Consensus 2022 kicks off in Austin, Texas
One of the biggest crypto conferences of the year kicks off this week in Texas. From Thursday to Sunday, some of the industry’s biggest names will be in attendance at Consensus 2022. In particular, the meeting is a forum for these influencers to discuss industry regulations and other key issues. Speakers at the event range from Senators Gillibrand and Lummis, to leaders such as Binance founder Chanpeng Zhao, to free speech advocates such as Edward Snowden. The event panels are already turning their attention to the headlines. Investors can watch the event and the official stream on the CoinDesk website.
As of the date of publication, Brenden Rerick had (neither directly nor indirectly) any position in the securities referred to in this article. The views expressed in this article are those of the author, subject to InvestorPlace.com’s publishing guidelines.