Daily Digest - 13 February 2023

Main news

▌Coinbase CEO: Coinbase's Pledge Service Is Not Security , and Is Ready to Defend It in Court If Necessary

Coinbase CEO Brian Armstrong tweeted, "Coinbase's Pledge service is not a security . If necessary, we'd be happy to defend it in court." Earlier, Armstrong also released a document stating that it "stoutly fights for economic freedom and protects customers from excessive government interference." He said that staking in the field of cryptocurrency is a key innovation, and staking is not a security . New technologies should be encouraged to develop in he United States, not deterred by a lack of clear regulations. It was previously reported that the US Securities and Exchange Commission (SEC) announced on Thursday that encryption exchange Kraken would "immediately" terminate the provision of crypto pledging services to the US.

cryptocurrency

▌Former SEC Official : Regulatory Review of Crypto Companies Is the Reason PayPal Halted Its

Stablecoin

PayPal has stopped work on its stablecoin due to an investigation by the New York Department of Financial Services into partner Paxos. The payment provider was expected to issue a stablecoin in the near future, but has now canceled its plans. Former SEC official John Reed Stark said that regulatory scrutiny of crypto companies was the reason for PayPal's decision. Any US financial firm that interacts with a public blockchain is considered very risky. The former SEC official also recently tweeted that Bitcoin is a

May be unregistered security.

▌Expert : FTX Political Donation Recovery Efforts May Target Biggest Recipients

FTX and affiliated debtors had previously sent confidential letters to politicians, political action committees and other recipients of donations, demanding the return of funds previously provided. Vanderbilt University law professor and community director Yasha Yadav stated that given the sheer size of political donations and allegations that they may be funded through FTX client funds (via Alameda), the current FTX management Have good reason to withdraw these funds. Method of meeting the shortfall of creditors. But Michael Fasanello, crypto compliance officer at AnChain.AI, said that asking for a refund of the donations was “a reasonable step in this situation, to try to get as many abused customer deposits as possible.”

▌ Republicans in the US House of Representatives demand that the US SEC respond to the arrest of the co-founder of FTX

Members of the US House of Representatives, North Carolina Republican Patrick McHenry and Michigan Republican Bill Huizenga, sent a letter to US Securities and Exchange Commission (SEC) chairman Gary Gensler regarding FTX co-founder Sam Bankman-Fried. The arrests ahead of testimony to the House Financial Services Committee. McHenry and Huizenga claim that the timing of Bankman-Fried's indictment and arrest "raises serious questions about the SEC's process and cooperation with the DOJ."

▌ “Rich Dad Poor Dad” Author: Everything Will Collapse, Plans to Buy Bitcoin

Robert Kiyosaki, famed author of the best-selling book "Rich Dad Poor Dad," reiterates his warning of a market downturn. Robert Kiyosaki said that more than 144,000 people will lose their jobs in the technology industry in 2022, and 66,000 people have lost their jobs so far this year. Everything will collapse including gold, silver and bitcoin. Still, he told his 2.3 million Twitter followers not to panic, saying he would buy more gold, silver and bitcoin using "fake" dollars, which he called real money. Kiyosaki explained that gold, silver and BTC are real money, while the US dollar is fake because it is not tied to real money like gold, but to the "full faith and credit" of the United States. The renowned author has repeatedly said that he does not trust the Biden administration.