Eagle Crest Asset Management

June 25, 2024

Paraguay's Bitcoin Mining Industry Responds To Shutdown Of Illegal Mines

According to Odaily, the Bitcoin mining industry in Paraguay has responded to the National Electricity Administration's (ANDE) involvement in shutting down several illegal Bitcoin mines. Bruno Vaccotti, the public affairs director of Bitcoin mining company Penguin, revealed the existence of three 'vulture contracts' that have slowed the development of Bitcoin mining operations in Paraguay. In a radio interview, Vaccotti admitted that illegal mining activities have damaged ANDE's revenue. However, he criticized the agency's statements about Bitcoin mining activities. He stated that Penguin pays $850,000 in electricity bills each month, which is almost 50% of the $2 million loss claimed by ANDE due to illegal cryptocurrency mining. The 'vulture contracts' are agreements signed by ANDE with other undisclosed Bitcoin mining third parties. These contracts have affected the power supply for new mines and caused losses to the country. Vaccotti said that these contracts, which involve a large amount of energy, are usually signed by foreign investors seeking speculation. The energy allocated to these parties is prevented from being used for these operations, thereby damaging the potential for real Bitcoin mining investors to utilize the involved energy. Vaccotti emphasized that this could have a greater impact than the illegal activities ANDE is investigating.

June 25, 2024

Federal Reserve's Daly Cautions Against Premature Rate Relaxation

According to BlockBeats, on June 25, Federal Reserve's Daly expressed the need for careful consideration to avoid prematurely relaxing interest rates or maintaining a status quo for too long. Daly's statement highlights the delicate balance central banks must maintain to ensure economic stability. The timing of interest rate changes is crucial in managing inflation and economic growth. A premature relaxation could lead to inflationary pressures, while a prolonged status quo could stifle economic growth. Therefore, Daly's cautionary stance underscores the importance of strategic decision-making in monetary policy.

June 24, 2024

SEC and Ripple Labs Dispute Continues: Key Developments

According to CryptoPotato, the ongoing dispute between the United States Securities and Exchange Commission (SEC) and Ripple Labs regarding the classification of XRP as a security is expected to have significant implications for the entire industry. The case, which has been in progress for several years, is currently in the trial phase.David Hirsh, the Chief of the Crypto Asset and Cyber Unit at the SEC, recently resigned after serving the SEC for over nine years. His resignation came shortly after the SEC reduced its demanded penalty from Ripple from $2 billion to $102.6 million. This reduction was a response to Ripple's legal team's request for a penalty not exceeding $10 million. The SEC justified the revised penalty by comparing it to the gross profit of the violative conduct, resulting in a $102.6 million penalty, significantly higher than the $10 million cap insisted by Ripple.However, Ripple's legal challenges are not limited to the SEC case. Brad Garlinghouse, the company's CEO, is also involved in a separate lawsuit in California. This lawsuit is related to statements he made years ago about his personal investment in XRP. Despite the case proceeding to trial, the presiding judge dismissed several allegations, including those suggesting that Ripple violated federal securities law. Ripple's chief lawyer stated that the New York ruling that XRP is not a security remains undisturbed, and one state law claim based on a 2017 statement is going to trial. Garlinghouse reiterated his support for the statements he made in 2017 and considered the dismissal of allegations a significant victory for the company.

June 23, 2024

Swiss Central Bank Extends Pilot Project for Tokenized Bonds Settled with Experimental Digital Currency

According to Odaily, the Swiss Central Bank recently announced that it will extend its pilot project for selling the first batch of tokenized bonds settled with its experimental digital currency, also known as wholesale Central Bank Digital Currency (CBDC), for another two years. The bank described the project as 'very successful'. The Swiss Central Bank stated that using CBDCs for settling and clearing financial transactions could eliminate credit risk. In contrast, all digital bonds issued in the United States so far have been settled with private digital tokens, which do not have the same safeguards as central bank-backed currencies. Moody's Corporation stated in a declaration that the lack of digital cash compatible with distributed ledger technology is often a significant barrier to the development of this technology, and Switzerland is the most advanced country in this field.

June 21, 2024

US Court Rejects Four Collective Lawsuits Against Ripple, Allows One State Lawsuit to Proceed

According to BlockBeats, on June 21, a US regional court judge dismissed all four collective lawsuits against Ripple, but allowed one state lawsuit to continue. The jury will continue to discuss whether Ripple CEO Brad Garlinghouse made 'misleading statements' related to securities sales in a television interview in 2017. Previously, a civil lawsuit for securities claims against Brad Garlinghouse was heard in a California court. The decision by the judge marks a significant development in the ongoing legal battles faced by Ripple and its CEO. The dismissal of the four collective lawsuits provides some relief for the company, but the continuation of the state lawsuit indicates that Ripple's legal troubles are far from over. The focus of the ongoing discussion is on the statements made by Garlinghouse in 2017, which are alleged to have been misleading in relation to securities sales. The outcome of this case could have significant implications for Ripple and the broader cryptocurrency industry.

June 21, 2024

Richmond Fed Chair Urges Clarity On Inflation Path Before Rate Cut

According to BlockBeats, Richmond Federal Reserve Chair, Barkin, stated on June 21 that the Federal Reserve needs to further clarify the path of inflation before it can cut interest rates. Barkin, who has voting rights on monetary policy this year, said the current policy positioning is good and added that the Federal Reserve has the strength needed to curb inflation.When asked if the Federal Reserve could cut interest rates once and maintain them at that level, Barkin said it depends on economic data. If the current situation continues, now may not be the best time to provide guidance on the timeline for subsequent policy adjustments. 'Sometimes we want to provide forward-looking guidance and we do,' he said, 'In my view, it doesn't seem like that time now. It doesn't feel like the time to release forward-looking guidance. Let's see where the data will lead us.'

June 17, 2024

Terraform Settles With SEC For $44.7 Billion, Founders Accused Of Fraudulent Trading

According to Foresight News, a recent statement submitted by the Financial Securities Crime Joint Investigation Department of the Southern Seoul Local Prosecutor's Office reveals that in a conversation between Do Kwon and Shin in May 2019, they discussed the possibility of creating seemingly real but fraudulent trades. The prosecutors believe that this indicates that Do Kwon and Shin had the intention to manipulate trades related to Terra from the beginning of their venture, with the aim of defrauding investors. They allegedly used these fraudulent trades to inflate trading volumes, thereby attracting investors and expanding their business. In a previous report by Foresight News, it was revealed that Judge Jed Rakoff of the U.S. District Court in New York had approved a settlement agreement of $44.7 billion between Terraform and the U.S. Securities and Exchange Commission (SEC). As per the agreement, Terraform will pay nearly $36 billion in forfeiture, $4.2 billion in civil penalties, and an estimated $4.67 billion in interest. On the basis of cooperation with Terraform, Do Kwon agreed to pay $110 million in forfeiture, $14.3 million in pre-trial interest, and $80 million in civil penalties.

June 17, 2024

South Korea's Ministry of Science and ICT and KISA to Launch Blockchain Support Plan in 2024

According to Foresight News, the Ministry of Science and ICT in South Korea, in collaboration with the Korea Internet & Security Agency (KISA), is set to launch a blockchain support plan in 2024. The estimated investment for this year is 20 billion Korean won, approximately 14.5 million USD. The funds will be used to develop public blockchain services and promote the commercialization of products from blockchain companies. The plan will support public blockchain projects including digital coupons related to Central Bank Digital Currency (CBDC), digital badges, and online voting systems.

June 17, 2024

South Korea's Financial Authorities To Reevaluate Cryptocurrencies Listed On Domestic Exchanges

According to Odaily, South Korea's financial authorities are planning to reassess the status of approximately 600 cryptocurrencies traded on domestic exchanges. This rigorous review aims to ensure compliance with the new 'Virtual Asset User Protection Law' that came into effect on July 19. Recent local media reports suggest that the South Korean government has finalized a best practice plan to support virtual asset trading. The plan outlines strict new requirements for cryptocurrencies to be listed on domestic exchanges. The current system allows exchanges to conduct their internal reviews, but the authorities will establish a more stringent review process as a supplement. The core focus of the new regulations is on listing screening. Under the current system, exchanges individually review and list cryptocurrencies. However, by implementing the best practice plan, the authorities will establish standards that all listed cryptocurrencies must meet. A financial authority official explained, 'Exchanges review every six months whether to maintain support for virtual asset trading.' Subsequent reviews will take place every three months.

June 17, 2024

El Salvador Government Proposes Reform of Banking Law to Introduce New Banks Offering Bitcoin Services

In a groundbreaking move, the government of El Salvador has proposed a reform of the current banking law aimed at introducing a new type of bank dedicated to offering Bitcoin and other cryptocurrency services. This initiative aligns with El Salvador's pioneering efforts to integrate Bitcoin into its financial system and the broader economy. Details of the Proposed Reform - New Type of Banks: The proposed reform will allow the establishment of new banks specifically designed to lend Bitcoin and provide crypto services. - Private Investment: The initiative encourages private investors to form specialized banks focused on Bitcoin and stablecoin services for sophisticated investors. - Comprehensive Services: These new banks are expected to offer a range of financial services, including: - Economic Risk Management: Tools and strategies to manage financial risks associated with investments. - Purchase of Financial Products: Facilitation of buying a variety of financial products. - Investment Management: Services to manage and optimize investment portfolios. - Hedging: Techniques to protect against potential losses in investments. - Other Financial Derivatives: Access to advanced financial instruments. Supported Currencies The services provided by these new banks would support any legal currency in El Salvador, including the U.S. dollar and Bitcoin, which was officially adopted as legal tender in the country in 2021. Implications for El Salvador's Financial Landscape - Financial Innovation: The introduction of banks specializing in Bitcoin and cryptocurrency services marks a significant step in financial innovation, reflecting El Salvador's commitment to leveraging digital currencies. - Investment Opportunities: This reform is likely to attract sophisticated investors interested in the burgeoning crypto economy, offering them tailored banking services. - Economic Diversification: By integrating cryptocurrency services with traditional banking, the reform could contribute to a more diversified and resilient financial system. - Risk and Regulation: The initiative will require careful regulation to manage the unique risks associated with cryptocurrency, ensuring stability and protecting investors. El Salvador's proposal to reform its banking law to accommodate Bitcoin and cryptocurrency services underscores the nation's forward-thinking approach to digital finance. If approved, this initiative could set a precedent for other countries considering similar integration of cryptocurrencies into their financial systems.