TLDR CRYPTO 2024-05-24

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BIDEN ADMINISTRATION STATEMENT ON FIT21

Though Biden's administration opposes the passage of FIT21, it says it is willing to work with Congress to create a balanced regulatory framework for digital assets. Its goal is to reinforce United States leadership in the global financial system. This statement comes at a time when crypto is becoming an increasingly politicized issue with the 2024 election looming.

SEC APPROVES 8 ETHEREUM ETFS INCLUDING BLACKROCK AND FIDELITY

The SEC has approved eight spot Ethereum ETFs from issuers, including BlackRock, Fidelity, and Grayscale, months after approving spot Bitcoin ETFs. While the approval of the 19b-4 forms marks a significant step, trading will only start after the S-1 statements have been registered, which may take weeks.

INTERNET COMPUTER SMART CONTRACTS WORK WITH ANY EVM

The Dfinity Foundation has released a new API that enables Internet Computer smart contracts to be compatible with any EVM (improves cross-chain interaction and app potential). This move is part of Dfinity's broader Chain Fusion initiative, which looks to increase blockchain interoperability.

EVM NATIVE SEQUENCING RULES

Ethereum has been criticized for block builders' increasing dominance over their chain control, which is a consequence of how time-discrete systems create varied value in their storage slots. This author proposes a specification for native transaction bundling for onchain applications, which gives more control over sequencing.

DEEP DIVE INTO FIT21

FIT21 divides digital assets into three categories: digital commodities (regulated by the CFTC), restricted digital assets (regulated by the SEC), and permitted stablecoins. Classification depends on factors such as the level of decentralization and functionality of the blockchain, how the asset is acquired, and who holds the asset. While the bill is a thoughtful approach to bridging the gap between traditional finance and crypto, it could be improved by expressly discarding the Howey and Reves tests for digital asset categorization to prevent SEC jurisdiction backdoors.

10 RULES FOR CRYPTO MARKETING & COMMUNITY

Effective crypto marketing and community building should be approached as a complex system with various interconnected events and outputs, rather than one-off strategies. Projects should prioritize investing in their community, interacting with community content, emphasizing quality over quantity, and treating community members as real people with valuable feedback. These tips help give projects sustainable community flywheels to set them apart in the attention economy.

HOW DO LAYER 2S REALLY DIFFER FROM EXECUTION SHARDING?

While layer 2s and execution sharding may seem like opposite strategies for blockchain scaling, they share the same underlying technologies, such as data sharding, fraud proofs, and cross-communication solutions. The primary difference is that L2s allow for greater creativity and independent innovation, with each L2 having its own rules, while shards are protocol-level. The L2-centric ecosystem does face coordination challenges, smart contract wallet support, and decentralized validation infrastructure.

CRYPTO'S KILLER USE-CASES

This article discusses some of the use cases in web3, specifically the potential of Web3 publisher-exchanges. Web 3 publisher-exchanges combine the abilities of publishers and exchanges to streamline user interactions and financial transactions on content platforms. The combination improves UX/UI by removing friction from transactions and making transactions more immediate and integrated with content consumption.

WHAT IS THE BANANA ZONE?

The Banana Zone refers to 4-year crypto and tech market cycles.

GRAYSCALE LAUNCHES TWO NEW TRUSTS INVESTING IN NEAR AND STX

Crypto asset manager Grayscale has launched two new investment trusts for Near Protocol (NEAR) and Stacks (STX) available to individual and institutional accredited investors.

DECENTRALIZED ORACLE BENCHMARKS

Chainlink is 300-800ms behind in reporting CEX data, which is faster than competitors Pyth and RedStone.

U.S. SUPREME COURT LOSS FOR COINBASE LEAVES COMPANY WITH MIXED RECORD

The U.S. Supreme Court ruled against Coinbase in a technical arbitration dispute concerning which legal agreement should apply when parties have entered into two different contracts, one of which involved a Dogecoin sweepstakes.