Daily Digest - 8 June 2023

Headlines

▌US District Court has issued a subpoena to CZ

The US Securities and Exchange Commission (SEC) asked Binance CEO CZ to appear in court in the District of Columbia, which CZ said was only part of the SEC's compliance process. He does not need to appear in court in person, but he needs to respond within the stipulated time.

▌SEC Assistant Chief Accountant: Binance transferred nearly $20 billion in mixed funds to a foreign subsidiary of Paxos in 2021

Binance transferred nearly $20 billion in commingled funds to a foreign subsidiary of Paxos in 2021, according to a statement from Sachin Verma, assistant chief accountant of the US Securities and Exchange Commission (SEC). Binance.US, in the name of BAM Trading and several other Binance-related accounts, sent millions of dollars in mixed funds from accounts at Silvergate Bank to a trading firm called Merit Peak Ltd. For example, in 2021, funds from Key Vision ($11.05 billion), Prime Trust ($1.1 billion) (via BAM Trading) and Bifinity UAB ($6.3 billion) (via Binance Holdings Limited) were transferred to Merit Peak, Merit Peak's entire transfer of the money comes as it transfers nearly $20 billion in 2021 to a foreign subsidiary of Paxos.

Policies

▌US Treasury Secretary Yellen: Support US regulators’ regulation of cryptocurrencies

US Treasury Secretary Yellen said she supports US regulators' regulation of cryptocurrencies to protect consumers and investors. Cryptocurrency regulation should be strengthened and will work with Congress to pass more legislation.

Blockchain Application

▌Ethereum Layer 2 network Taiko has launched Alpha-3 test network

Taiko, the second layer network of Ethereum based on zkRollup, has launched the Alpha-3 test network. Compared with alpha-2, the main changes are: 1. The design and implementation of new protocol economics; 2. Both the proposer and the certifier are permissionless (alpha-1 only has unlicensed proposers, alpha-2 only has unlicensed certifiers); 3. Support Taiko Inception Layers (L3).

Cryptocurrency

▌Coinbase CEO: Coinbase is operating as usual, there is no risk of running out of customers, and will not give up the pledge business

Coinbase CEO Brian Armstrong said that Coinbase is currently operating as usual. There is no risk of a customer run on Coinbase. Staking services account for 3% of net revenue, and Coinbase will not give up this business.

In addition, Brian Armstrong said that Coinbase has sought more guidance from the SEC, but has not received a response. Several lawmakers in Congress and the White House have recognised the importance of encryption. The .S Congress is currently more supportive of cryptocurrencies.