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Sen. Elizabeth Warren points to crypto payments as facilitating fentanyl trade in China

Sen. Elizabeth Warren points to crypto payments as facilitating fentanyl trade in China

“The number of crypto transactions associated with Chinese fentanyl brokers increased by 450% just last year alone," said the Massachusetts senator, citing an Elliptic report.

Massachusetts Sen. Elizabeth Warren has suggested a link between cryptocurrency payments and companies based in China that provided precursors for the opioid fentanyl.

In a May 31 hearing of the United States Senate Banking Committee on China, Warren pointed to a report from blockchain analytics firm Elliptic to suggest a connection between cryptocurrency and “illegal drug transactions” at Chinese companies. Elliptic reported on May 23 that 90% of roughly 90 China-based firms supplying fentanyl precursors were willing to accept payment in cryptocurrencies, including Bitcoin (BTC).

“Crypto is supposedly banned in China,” said Warren, proceeding to cite data from the Elliptic report. “The number of crypto transactions associated with Chinese fentanyl brokers increased by 450% just last year alone.”

Elizabeth Rosenberg, assistant secretary for terrorist financing and financial crimes at the U.S. Treasury Department, told Warren that the drug brokers likely relied on the pseudonymous nature of crypto transactions for payments. Rosenberg confirmed Warren’s sentiment that crypto was one of the major payment methods for Chinese companies.

The Massachusetts senator said she planned to reintroduce legislation aimed at addressing some of the regulatory gaps affecting these payments to companies engaged in the illegal drug trade. Warren first introduced the Digital Asset Anti-Money Laundering Act in 2022 and has suggested at earlier congressional hearings on crypto she was preparing to reintroduce the bill.

“Congress has talked about fentanyl long enough. We propose to do something to fight back.”

Related: ‘If a government bans drugs, it should also ban crypto’ — Belgium’s former finance minister

According to data from the National Institutes of Health, in 2021 there were more than 70,000 deaths involving the overdose of synthetic opioids such as fentanyl in the United States. One of the most high-profile platforms that often facilitated illegal drug transactions using crypto payments, Silk Road, was shut down in 2013 and its founder, Ross Ulbricht, was sentenced to life in prison.

Magazine: Cryptocurrency trading addiction: What to look out for and how it is treated



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Web3 gaming gets competitive: QORPO Game Studio joins Cointelegraph Accelerator

Web3 game developer QORPO Game Studio aims to introduce competitive esports to the Web3 gaming ecosystem.

The Web3 gaming world saw consistent growth and exciting developments in the first quarter of 2023, according to a DappRadar report. Traditional Web2 gaming companies started to notice blockchain technology’s potential, resulting in a total of $739 million invested in blockchain games and metaverse projects during the first quarter of 2023.

From the open-world role-playing games to battle royale-themed shooters, gaming quickly turned to a major point of interaction between users and Web3, with almost half of blockchain activity coming from gaming. While play-to-earn provides a fresh take on players’ experience of a game, there’s an even bigger potential for Web3 gaming with microtransactions. Web2 gaming offers skins or other in-game items via microtransactions, but the inefficiency and lack of transparency of traditional payment methods are often met with criticism from players.

Founded in 2018, QORPO Game Studio seeks to pair up blockchain technology and esports — a major Web2 gaming trend with skyrocketing popularity — to act as the gateway between traditional gamers and Web3 opportunities. The Web3 game developer joined the Cointelegraph Accelerator Program to ramp up the development of end-to-end blockchain gaming solutions.

Citizen Conflict is a PvP shooter in which heroes with different skills and gameplay compete against each other. Source: Citizen Conflict

Citizen Conflict is a PvP shooter in which heroes with different skills and gameplay compete against each other. Source: Citizen Conflict

Given a team of seasoned game developers who previously worked on major titles, including Arma 3, Overwatch and Mafia II, the studio’s main project Citizen Conflict, a free-to-play shooter, aims to bring triple-A gaming to Web3. Citizen Conflict is a team-based cyberpunk shooter created in Unreal Engine 5 where three hostile organizations wage an endless battle for dominance.

Players will heavily rely on vehicles to get around the world of the Ether Islands with gameplay that is characterized by its humorous yet gritty gameplay that evokes a war-like environment and trading features brought about by blockchain technology. Following its alpha test in Q2 2023, QORPO Game Studio is planning a public beta phase of its competitive mode in the third quarter.

QORPO Game Studio is also working on an open-world action RPG, AniMate, which aims to deliver extraction and battle royale gameplay. Inspired by companion-based adventures such as Pokemon, AniMate takes players to a world divided into islands and centered around five essential elements.

AniMate blends Pokemon-esque graphics and narrative with Fortnite’s battle royale game mechanics. Source: QORPO Game Studio

AniMate blends Pokemon-esque graphics and narrative with Fortnite’s battle royale game mechanics. Source: QORPO Game Studio

Users will be able to customize their characters and join an open world to engage in dangerous challenges as they battle other players and loot NPC-guarded camps. Each monster has unique powers and is subject to different weaknesses at various stages of evolution. Following the release of the game, QORPO Game Studio also plans to launch AniMate comics and a physical trading card collection.

The Cointelegraph Accelerator program helps fresh Web3 startups and projects prosper by leveraging Cointelegraph’s network and leadership as the leading crypto and blockchain media outlet since 2013. As part of the program, QORPO Game Studio will continue developing its two titles, focusing on bringing the skill-based competitive niche to Web3 gaming.



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The Debate Around “Cursed” Ordinal Inscriptions

The Debate Around “Cursed” Ordinal Inscriptions

After only four months since the protocol was launched, ord has its first contentious debate about what are known as “cursed” inscriptions.

The simplest definition of a cursed inscription is any inscription that does not currently get indexed and identified by ord. This term came about as a catchall when some people incorrectly used or purposefully misused opcodes to create inscriptions that were not able to be indexed by ord and would therefore be unrecognized and not given an inscription number.

This issue was first mentioned on April 25 in the ord github and the interim fix proposed by then lead developer Casey Rodarmor was to, “Modify ord to recognize the above currently invalid inscriptions, including retroactively in old blocks, but consider these new inscriptions ‘cursed’ and assign them negative inscription numbers.”

Funnily enough, the example inscription code on the Ordinals docs website would have been a cursed inscription.

Link to embedded Tweet.

There are many ways cursed inscriptions can be created. Any inscription with multiple inputs/outputs would be considered cursed. As shown above, certain misuse of opcodes such as OP_1 can lead to cursed inscriptions. Alternatively, the introduction of OP_66 using a value of “cursed” intentionally made these types of inscriptions by having an even numbered opcode which is not indexed by ord. Unless already defined in the spec, even numbered opcodes are not recognized because they are reserved for future protocol development. The full list of ways to create cursed inscriptions from issue #2045 is as follows:

  • Multiple inscriptions per transaction, for efficient batching.
  • Inscriptions on inputs after the first, which is useful for collections.
  • Multiple inscriptions on the same sat, so that the entire history of a sat doesn’t need to be checked to determine if a new inscription is valid.
  • Inscriptions with unrecognized even headers, so that new even headers don't cause upgraded clients to disagree about inscription numbers.

There are a couple specific debates around cursed inscriptions. One of the disputes comes from the way that these inscriptions are currently numbered. Cursed inscriptions are numbered negatively in the order of their creation. Because of this numbering system and naming convention, some people purposefully chose to create inscriptions and collections that appear “cursed” whether by flipping the image of a positively numbered inscription or using a more sinister image theme when inscribing. The question is: Should these be appended to the index of positively numbered inscriptions or should they keep their negative inscription number when the code is updated?

Additionally, another contentious conversation is what to do about the certain type of cursed inscriptions that used the OP_66 opcode in their creation. Because this opcode is not recognized by ord and even numbered opcodes are intentionally left out for future development use, it is debatable whether inscriptions using this opcode should be included in the cursed set or if they should be rejected.

At the present time, the issue around the even number opcode is listed in the ord github. There are many comments in support of including these inscriptions in the index, but the lead maintainers of the protocol seem to be against it. As of now, the current stance by the developers is that these inscriptions would be unbound, meaning that they would not be assigned to a specific satoshi.

Remember, ordinal theory works based on a first in, first out tracking system for satoshis. Each inscription is assigned to the first satoshi in the genesis transaction when the inscription is created. This type of lens for looking at bitcoin allows images, files, text, etc. to be tracked and transferred. If a cursed inscription is unbound, it would not be associated with a specific satoshi and therefore would be unable to be transferred to another address. Many people who are inscribing are hoping to be able to sell or transfer their inscription to another person. While the inscriptions using this opcode will live forever on the Bitcoin blockchain, if these inscriptions are classified as unbound and unassigned to a specific satoshi, users who minted cursed inscriptions using this opcode would be unable to sell or transfer them.

Herein lies one of the bigger concerns for people who are spending money on transaction fees to create cursed inscriptions. If they are unable to sell them in the future, significant funds would have been wasted on fees. Many users have responded to the github issue, expressing support for including these inscriptions, but the code’s maintainers are not in favor of recognizing cursed inscriptions using the OP_66 even numbered opcode.

On May 30, the new lead maintainer of ord, Raphjaph, wrote, “As the protocol currently stands inscriptions are not valid if they use an unrecognized even tag, so this change already makes a concession by recognizing them. For now they are unbound but we might reconsider this and bind them in the future if there are strong reasons.”

This response is not what many inscribers were hoping to hear. Similar to Bitcoin, ord is open-source software so users can fork the code if they wish to recognize these specific types of cursed inscriptions. This contentious debate is ongoing and the path forward for ord remains to be seen. Users who spent significant sums on transaction fees may be willing to switch to a new version of ord that will recognize their cursed inscriptions, but this is only a theoretical path forward at this time.

Regardless, Ordinals are a new technology being built on Bitcoin. Whether inscriptions are a flash in the pan or if they have lasting power may depend on how this issue gets resolved.


via bitcoinmagazine.com
TRC-20 USDT circulation hits record high 5 years after Tron mainnet launch

TRC-20 USDT circulation hits record high 5 years after Tron mainnet launch

Over 60% of USDT's supply is currently issued on the Tron blockchain, according to Tether data.

On May 31, Tether (USDT) tokens issued on the Tron blockchain reached another all-time high of $46 billion, compared to $36.8 billion for Ethereum, accounting for over 60% of USDT’s circulating supply. The milestone comes on the fifth-anniversary launch of the Tron mainnet.

Over the past five years, Tron developers claim that the blockchain has processed 5.6 billion transactions and currently has a total value locked of $5.7 billion. Tron’s creator, Justin Sun, said his 2023 goals include elevating the network’s on-chain stablecoin market cap to $100 billion and establishing Tron as a preferred choice for stablecoin users by positioning itself as “a more affordable and user-friendly version of Ethereum." Tron developers also said they have “promised full support” for Web3 development in Hong Kong.

Cointelegraph reported that Hong Kong’s Securities and Futures Commission would begin issuing crypto exchange licensing applications for retail trading on June 1. A few days prior, Huobi, a cryptocurrency exchange under the de facto ownership of Sun, said it had begun offering crypto services to retail Hong Kong clients after submitting an application the same day. In April, Sun attended the annual Web3 Festival in Hong Kong, dispelling rumors that he had been arrested on arrival. 

In March 2023, the United States Securities and Exchange Commission filed a civil lawsuit against Sun for the “orchestration of the unregistered offer and sale, manipulative trading, and unlawful touting of crypto asset securities” relating to Tron (TRX) and BitTorrent (BTT) tokens. The lawsuit is currently ongoing

Magazine: Bitcoin glory on Chinese TikTok, 30M mainland users, Justin Sun saga: Asia Express



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Liquidators Of Sam Bankman-Fried’s Alameda Research Have Scavenged $110 Million Of Bitcoin After Losing Billions

Liquidators Of Sam Bankman-Fried’s Alameda Research Have Scavenged $110 Million Of Bitcoin After Losing Billions

Liquidators in charge of the recovery of assets for the now-disgraced Alameda Research hedge fund founded by Sam Bankman-Fried currently control over $110 million worth of bitcoin held in various wallets, according to a report supplied by blockchain analysis firm Arkham Intelligence. These wallets have been receiving BTC from exchanges and cold wallets as recently as March 2023, the report revealed.

The aggregation of these wallets provides insights into the liquidators' collection of BTC from Alameda's holdings. A recent transaction in April involved a 1 BTC test from Alameda's Merchant wallet. This BTC was later sent to a holding address now under the control of Alameda's Liquidators, known as 'Alameda Merchant 1.' Since the beginning of 2023, this address has accumulated 3,581 BTC, worth approximately $97.19 million at current prices.

The report states that “In total, Alameda’s liquidators have managed to secure 4,083 BTC (currently $110.81M) sourced from:

  • Other Alameda Wallets: 34.94 BTC (currently worth $948.27K)
  • Deribit: 467.366 BTC (currently worth $12.68M)
  • WBTC Custodian: 2997 BTC (currently worth $81.34M)
  • Bitfinex: 298.027 BTC (currently worth $8.09M)
  • Unlabelled Wallets (possibly an Exchange): 286.7 BTC (currently worth $7.78M)”
A screenshot from the provided report.

“However, this is only a fraction of the BTC that Alameda controlled in the past,” the report noted. “Wallets connected to this network of Alameda’s BTC activity were worth at peak over $800M, with Alameda likely holding more BTC in Centralized Exchanges or unlinked Cold Wallets.”

Arkham Intelligence stated that it will continue to monitor the on-chain activity of Alameda’s liquidators.


via bitcoinmagazine.com
Binance plans new round of layoffs amid increased regulatory scrutiny

Binance plans new round of layoffs amid increased regulatory scrutiny

Binance's chief strategy officer Patrick Hillmann hinted on Twitter the resource reorganization is meant to address growing regulatory pressures targeting the crypto space.

A fresh headcount reduction is coming to crypto exchange Binance, which is reportedly planning to lay off 20% of its workforce in June. The job cuts come after the company said earlier this year it would not lay off any employees.

According to the exchange, the decision is not a downsizing but rather a resource reallocation. "As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density across the organization to ensure we remain nimble and dynamic," a spokesperson told Cointelegraph.

On Twitter, Binance's chief strategy officer Patrick Hillmann hinted the reorganization is meant to address growing regulatory pressures targeting the crypto space:

"Regulators in almost every major market are also working overtime to provide greater clarity for their expectations of the industry and the asset class more broadly, which is putting even more pressure on orgs to adapt or fall by the wayside.”

Also, according to Hillmann, a precise number of layoffs has yet to be determined. "Like previous exercises, this will be done after several teams (including HR, Risk, and Operations) finalize that talent density audit," he continued. 

At the time of writing, Binance's career page shows 326 open positions spanning several departments and locations. During the latest bull market, Binance's headcount grew from approximately 3,000 to nearly 8,000, with staff located across Europe, the Americas, the Middle East, Africa and Asia.

In March, a Binance spokesperson told Cointelegraph that the company was seeking to fill over 500 roles by the end of June: “As of today, we are actively hiring for more than 500 roles with the goal of filling them by the end of H1 [...] We are not planning any layoffs.” Moreover, in January Binance CEO Changpeng Zhao said the firm was planning for a hiring spree in 2023, increasing its headcount between 15% and 30%.

Crypto community members quickly reacted to the news, reviving Zhao's previous tweets about crypto exchange layoffs.

Screenshot: Changpeng Zhao, CEO of Binance, warns users on Twitter on Nov. 30, 2022.

Binance has been facing an unprecedented regulatory landscape. The U.S. arm of the crypto exchange was reportedly struggling to find a new bank partner to serve as a fiat on-ramp and off-ramp for clients after the closure of Silvergate and Signature Bank.

To keep its global status in this environment, the exchange has been acquiring locally regulated entities, including deals in Singapore, Thailand, and Japan most recently.

Magazine: Cryptocurrency trading addiction — What to look out for and how it is treated



via cointelgraph.com
What the ‘anti-mining bill’ means for the crypto industry in Texas

What the ‘anti-mining bill’ means for the crypto industry in Texas

The Lone Star State has become one of the hottest points on the U.S. map in terms of crypto regulation.

In late April, over a hundred people gathered near the Texas Capitol building to protest. 

Peaceful protests in the United States are not uncommon, but what made this one unique was that its participants were gathered to advocate for the right to own and use cryptocurrencies.

The location is also puzzling, as the Lone Star State has been presenting itself as a potential hub for the crypto industry in the United States, with varying state and federal laws creating an uneven regulatory landscape.

And so, the crypto enthusiasts gathered together in Austin to protest Senate Bill 1751, which will strip cryptocurrency mining operators of some existing tax incentives. The bill has already passed in the State Senate and has proceeded to the Texas House of Representatives.

Texas doesn’t fit the binary narrative of crawling into a “crypto-hostile” mode. While its legislators want to strip crypto miners of tax incentives, they almost simultaneously vote for the right of individuals to possess crypto be included in the state’s Bill of Rights.

How did such peculiar legislative moves come about, and what does it mean for the industry?

The pioneer’s path to regulation

Almost 10 years ago, Texas became the first state to address Bitcoin (BTC) regulation when the Texas Banking Commissioner issued a memo proclaiming that the original cryptocurrency “is best viewed like a speculative investment,” not as money.

It was good news for the early adopters, as they were spared from the interest of regulators. From then on, Texas began to attract local and global crypto businesses.

In 2021, the Texas Department of Banking declared that local banks are allowed to store cryptocurrencies for their clients. A month later, the state legislature amended the local Uniform Commercial Code to recognize cryptocurrencies under commercial law. Another bill established a blockchain working group in the state.

However, when Texas made it into Cointelegraph’s list of the top five states for crypto, it was more due to its unique crypto mining conditions than its regulatory efforts.

Energy prices for industrial clients were among the lowest in the country — or in the opinion of mining company Layer1 Technologies then CEO Alex Liegl — in the world.

Following China’s crackdown on crypto mining in 2021, the U.S. state was enjoying the interest of large miners worldwide. Governor Greg Abbot expressed his excitement about Texas becoming the next “crypto leader,” with local communities welcoming new businesses, reopening industrial spaces and hiring people in small towns. 

The trend continued into 2022, with mining behemoths like Riot Blockchain relocating rigs to Texas. Even the record-breaking heat waves in the summer and deadly winter storms didn’t turn off mining operators, which accepted some periods of unplanned stoppages.

The Texas Comptroller’s office even tried to clarify that cryptocurrency mining facilities “do not place big electrical demands on the grid.” The same words have been repeated by Senator Ted Cruz, who expressed his hope to make Texas an “oasis for Bitcoin.”

Hot season for lawmaking initiatives

However, despite friendly overtures to the crypto industry, Texan authorities have never shied away from enforcement action.

The state’s principal financial regulator, the Texas State Securities Board (TSSB), has a long history of interacting with the market.

It accused Bitconnect of illegal securities trading, along with 31 other companies to follow, and pushed Arise Bank — a self-described “first ever decentralized banking platform” — out of the state for using the word “bank.”

In 2022, the TSSB actively participated in enforcement action against collapsed crypto exchange FTX, pushing charges against co-founder Sam Bankman-Fried, scrutinizing “finfluencers” who advertised the platform, and objecting to the potential sale of Voyager Digital to FTX even before the latter’s bankruptcy.

Texas also had its fair share of controversy in attempts to regulate crypto. In 2019, local lawmakers introduced a bill requiring users to identify themselves when using digital currencies. However, the bill never made it past the first reading.

But only in 2023 did the real, even anomalous, appetite for regulation arise among Texan lawmakers.

House Bill 1666, which was introduced in January by a group of lawmakers led by Representative Giovanni Capriglione, proposed to amend Section 160 of the Texas Finance Code, restricting large digital asset providers — with 500+ customers and at least $10 million of funds — from comingling the customer funds with any other type of operational capital. The bill reached Senate approval in three and a half months and was sent to the Governor’s office in May.

In early March, Representative Cody Harris introduced a resolution urging fellow lawmakers to “express support for protecting individuals who code or develop on the Bitcoin network.”

While the resolution doesn’t have any concrete effects or legal power, it provides a picture of the sentiment among certain lawmakers.

Texas lawmakers also introduced a bill to create a state-based digital currency backed by gold, the idea being that once a person purchases a certain amount of the digital currency, the comptroller would use the money received to buy an equivalent amount of gold. 

The mining bill

Senate Bill 1751 started its legislative journey in early March. In a top-down fashion, it passed through the Senate and will now be considered by the House of Representatives State Affairs Committee before heading to the first vote in the lower chamber.

Dramatically presented by some in the crypto community as an “anti-Bitcoin bill” or a “hammer” in the hands of lawmakers, the initiative, in fact, only revokes some artificial incentives, which the mining companies have been enjoying alongside some of the lowest energy prices in the country.

According to the bill, from September 2023, crypto mining facilities’ share of total energy demand should be capped at 10%. However, it only applies within the framework of a state program that compensates load reductions amid extreme events like heat waves or winter storms.

What that effectively means is that miners, which currently sell energy back to the grid at a premium when it needs it, will be unable to do so amid the growing energy demand from the industry.

Also, some mining companies would stop receiving a reduction in state taxes for participation in this program. One of the bill’s sponsors, Senator Lois Kolkhorst, was quite clear about the reasons behind the initiative: 

“We’re trying to produce all this new power. We’re going to have a lot of this new power taken up by virtual currency mining. And then we’re going to pay them to go off the grid at different times, which I believe is a part of their business model.”

What’s next?

The co-founder of the Web3-project Ecosapiens, Nihar Neelakanti, is not so sure that the “seemingly anti-Bitcoin” mining bill would be “all that detrimental” to most miners in the state “given that they would likely fall below the energy threshold laid out in the bill,” he told Cointelegraph.

However, Neelakanti’s observation might become outdated relatively soon. To believe the unnamed source from the Electric Reliability Council of Texas cited in an article by The Verge, crypto mining is set to add 27 gigawatts of demand to the grid by 2026.

Currently, the Texan power grid can provide 92 gigawatts at the maximum. Should it not raise its capacities in the next three years, crypto mining could be taking the lion’s share of Texan electricity generation, in which case the 10% cap would cut the miners from the incentives program.

Speaking to Cointelegraph, Fred Thiel, the CEO of the crypto mining company Marathon Digital Holdings, said that owners of peaker gas plants heavily backed Senate Bill 1751. They need electricity during peak demand and regard Bitcoin miners selling the energy back to the grid as competition. However, he is quite optimistic about the bill not becoming law:

“It would have been detrimental to our industry, but it seems clear this bill is likely not going to pass in the state house.”

Thiel also highlighted the pressure at the federal level makes it harder for states to adopt pro-Bitcoin policies.

Zachary Townsend, CEO of Bitcoin-friendly insurance provider Meanwhile, seemed to agree, telling Cointelegraph that federal authorities are taking a hardline approach to the industry at the regional level. However, he highlighted that there is still progress at the state level:

“There’s Wyoming and Tennessee, as well as blue-leaning states like Colorado. That might be something similar to how the marijuana debate has played out at the state level — you basically have had states crafting their own rules and regulations that, at times, were contradictory to federal rules and regulations.”

In the middle distance, the reciprocal process of federal pressure and local autonomy could converge both poles into some kind of middle ground. Until then, the wrangling will likely intensify at the state level. And Texas, in Townsend’s opinion, seems to be ground zero for this debate.



via cointelgraph.com
Umbrel Announces New Umbrel Home Plug-And-Play Server

Umbrel Announces New Umbrel Home Plug-And-Play Server

Umbrel, the company behind umbrelOS, has introduced a new home server solution called Umbrel Home with the intent of providing users control over their data, privacy and digital lives, according to a press release sent to Bitcoin Magazine. Priced at $699, Umbrel Home is aimed at making self-hosting accessible to everyone. By leveraging umbrelOS, users can eliminate the need for third-party cloud services by utilizing a wide range of self-hosted apps available in the Umbrel App Store including a Bitcoin/Lightning node, Nextcloud, Plex and Home Assistant.

According to the press release, Umbrel Home offers accelerated performance, featuring a 2.9GHz Quad-Core Intel CPU, 2TB NVMe SSD, 16GB dual-channel RAM, and an active cooling system while consuming just 10 watts of power. This compact home server outperforms a Raspberry Pi 4-based solution in terms of CPU performance, SSD read and write speeds, RAM and memory bandwidth the release states.

Mayank Chhabra, Umbrel's Co-founder and CEO, highlighted the company's vision for Umbrel Home, saying that "Building a plug-and-play home server that was specifically engineered for umbrelOS has been our dream since day one. With the recent challenges in Raspberry Pi pricing and supply chain, we knew it was time to bring our vision to life, set a new benchmark in self-hosting, and make it accessible to users of all skill levels."

With privacy and data ownership concerns on the rise, self-hosting presents a modern solution that allows users to take ownership of their data, storage, access and sharing. In addition, Umbrel Home’s zero-configuration and one-click app installations from the Umbrel App Store make it easy to build a customized ecosystem tailored to individual needs.

Pre-orders for Umbrel Home are now available on umbrel.com, with shipping set to begin in June 2023. With its exceptional performance, user-friendly features and affordability, Umbrel Home aims to make self-hosting accessible to a global audience.


via bitcoinmagazine.com
Bitcoin is on a collision course with ‘Net Zero’ promises

Bitcoin is on a collision course with ‘Net Zero’ promises

Every year countries are pressured to ramp up their climate change commitments at the COP conference — and Bitcoin mining is an easy target.

Each year at the annual UN Climate Change Conference (COP), individual countries are pressured to ramp up their emissions reductions promises and showcase evidence they are taking steps to meet them.

With Bitcoin mining blamed for using as much power as an entire country, and politicians searching for easy targets to strike, the industry appears to be on a collision course with these global commitments to achieve net-zero emissions.

While it’s not possible to ban Bitcoin completely, lawmakers and regulators can tank the price and make life very difficult in the years ahead for the number one cryptocurrency.

There are signs its already happening.

A report from the European Commission at the end of 2022 stated that EU countries must be ready to block crypto mining, and the trading blocks new MiCA rules were at one stage set to include a ban on Bitcoin mining. The recently adopted legislation still leaves this door ajar, however, aiming to reduce the high carbon footprint of crypto-currencies by making service providers disclose their energy consumption.

Across the pond, the Biden administration has proposed a 30% excise tax on the power consumption of U.S. cryptocurrency mining operations. The tax would be imposed regardless of whether the power is renewable, with the administration arguing Bitcoin minings power consumption of renewable energy will slow down the transition to Net Zero. Thats in contrast to a New York moratorium on Bitcoin mining in 2022 that exempted firms powered by renewable energy.

The U.S. government appears to be taking to heart the White House Office of Science and Technology Policys September 2022 report that claimed the environmental impact of producing cryptocurrencies could impede U.S. efforts to combat climate change.

Former member of the Bitcoin Mining Council and independent researcher Hass McCook doesnt mince his words about threats to ban mining.

Governments should focus on greening their grids, which miners rely upon, as opposed to trying to ban an unbannable technology.

The Swedish government was behind last years push to outlaw crypto mining in the EU and, last month, took steps to price Bitcoin miners out of the market by abolishing various tax incentives. Starting in July, Sweden will increase the electricity tax by 6,000% from 0.006 Swedish kronas ($0.0006) to an extraordinary 0.36 kronas ($0.035) per kilowatt-hour (kWh).

Governments around the world are actively looking at Bitcoin minings energy consumption, explains Brad van Voorhees, co-founder and CEO of Sustainable Bitcoin Protocol, which incentivizes the use of renewables for mining.

Skull
Artist Benjamin Von Wong created The Skull of Satoshi sculpture. He says hes not anti-Bitcoin, he just wants to lower emissions. (VanWong)

Sweden has already imposed a 6,000% tax on energy for BTC mining, and the Biden administration has proposed a 30% tax, which would undoubtedly mean miners move offshore, he adds.

The tax will likely never pass in the U.S., but nonetheless, the sector should focus on clean energy use and data transparency to mitigate this risk.

Others agree with van Voorhees that Net Zero is an opportunity to set Bitcoin mining on a new and more sustainable path. Morten Rngaard is a member of the Nordic Blockchain Association and CEO of Reality+, a Web3 and blockchain company.

The collision between Bitcoin and Net-Zero commitments is a call to action. Its an opportunity to harness the power of innovation and renewable energy, steering both towards a greener and more inclusive landscape, he says.

Good cop, bad cop

The focus on Bitcoin mining power usage was given additional impetus after Ethereum moved to proof-of-stake last year and saved 99.95% of its energy consumption as a result. While Bitcoiners believe PoS stands for piece of shit, the success of the blockchains energy transformation has made Bitcoin look like it is stuck in a corner using anachronistic tech.

There are now groups demanding changes to Bitcoins underlying protocol as well.

Change the Code
The Change the Code lobby group is using the Merge to lobby for changes to Bitcoin. (Change The Code)

Greenpeaces Change the Code Not the Climate (Clean Up Bitcoin) lobby group is pushing to change Bitcoins consensus mechanism from proof-of-work, to proof-of-stake.

We know a basic software code change would reduce Bitcoins energy use by 99.9%. If only 30 people the key miners, exchanges, and core developers who build and contribute to Bitcoins code agreed to reinvent proof-of-work mining or move to a low-energy protocol, Bitcoin would stop polluting the planet. So why isnt Bitcoin changing its code?

This is misinformation, however, given the Bitcoin community needs to agree on a change, rather than a small group of just 30 people. The Bitcoin community split over the much smaller change of increasing the block size in 2017, leading to the Bitcoin Cash and Bitcoin SV forks, so the chances of an agreement to change the fundamental nature of the technology are hard to envisage at this point.

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The industrys big hope to date has been that progressively moving away from fossil fuels to rely more on sustainable and renewable power, such as wind, solar and hydroelectric power, will placate governments.

But as the Swedish and U.S. governments have said, that may not be enough. For governments and regulators trying to comply with their international climate change commitments, there will be a bunch of hard decisions to be made. Even a mining industry 100% powered by renewable energy could be a target, as that emissions-free energy could be freed up at the stroke of a pen to help a more politically valuable industry, like manufacturing, meet emissions targets.

How much power does Bitcoin use?

Power stations
Its probably just water vapor. (Pexels)

The Cambridge Bitcoin electricity consumption site estimates Bitcoin network power demand and is updated every 24 hours and works with all major actors to cut down on carbon emissions. It conducts experiments to evaluate Bitcoins environmental footprint assuming the worst-case scenario.

By using the latest annual power consumption estimates of 143.63 TWh and, assuming that all this energy comes exclusively from coal, and is generated in an inefficient coal-fired power plant, the Bitcoin footprint would be 11 million metric tons of carbon dioxide emissions. Thats around 0.35% of the worlds total annual emissions.

Bitcoiners point out that the network uses less power than the banking system (200 TWh) and a majority of the power used by the industry is renewable. They also claim mining can incentivize renewable electricity generation and make marginal green power projects viable.

But even taking these factors into account, mining still uses a ton of power, to which Bitcoiners argue that its energy well-spent securing the hardest and best money known to humanity.

But non-Bitcoiners tend to look at the power use of the alternatives. The site estimates that Ethereum is using around 6.76 GWh per year. In other words, Bitcoin is using 21,000 times more power per year.

According to the Crypto Carbon Ratings Institute, before its transition to proof-of-stake, a single Ethereum transaction used 200.05 kWh of electricity, on par with how much the average U.S. household uses in 6.7 days.

According to Digiconomist, that consumption is now as low as 0.03 kWh, and the carbon footprint stands at 0.01 kgCO2, which is equivalent to the energy used when watching two hours of YouTube.

(Please dont email us to point out that the network uses the same amount of power regardless of the number of transactions we know, its just illustrative).

Digiconomists Ethereum Energy Consumption Index highlights just how radically different PoW power consumption is to PoS.

Ethereum Energy Consumption Index
Ethereums energy consumption plummeted after it moved to proof-of-stake in 2022.

U.K.-based Block Dojo describes itself as the largest Bitcoin blockchain incubator in the world, but in fact, its based on the Bitcoin fork Bitcoin SV. It claims to be responsible for 24% of all blockchain investments in the United Kingdom. Chairman James Marchant says the energy use of Bitcoin is an opportunity for other blockchains like Bitcoin SV. 

The total energy use versus the number of transactions BTC can process per day is catastrophic. BTC does not implement the protocol as per the Satoshi white paper. We are seeing developers and entrepreneurs turning to a scalable blockchain solution away from BTC, and Net-Zero objectives is one of several key reasons for this, he says.

Movement for change

The people driving the crypto industry forward are likely to be the younger demographic, Generation Z, which is increasingly sensitive to climate change concerns.

But the industry is not hiding its head in the sand, with bodies like the Bitcoin Mining Council attempting to address such concerns.

Welcoming Bitcoin miners of all shapes and sizes it accounts for about half the worlds miners now the Council is a voluntary forum that shares best practices and educates the public on mining. 

BMC
The Bitcoin Mining Council is led by Michael Saylor (BMC)

Its most famous, and first, member is MicroStrategy boss Michael Saylor, who arranged the first meeting of the Council and is a strong adherent for managing miners energy use and employing sustainable alternatives.

Its latest quarterly report (based on self-reports from a survey and then estimated across the remainder of the industry) suggests miners are currently using a 58.9% sustainable energy mix. 

Renewable energy can potentially mitigate Bitcoins environmental impact. There are many examples of mining facilities now powered by solar, wind or hydroelectric energy or using stranded energy or mining using flared gas that would otherwise be wasted. If the renewable energy lobbys claim that green power is the cheapest form of electricity, then miners will inevitably use more of it, explains McCook. Bitcoin mining is a perfectly competitive industry. This means players will do anything to maximize profit. Anything. This means they chase the cheapest possible electricity available. This is increasingly becoming renewable, he says.

Darren Franceschini, co-founder of Fideum Group a Singapore-based crypto funding company agrees the industry is embracing wind and solar as much for economic reasons as anything else.

With fossil fuel prices soaring, miners are economically driven to achieve Net-Zero emissions, he says. Carbon pricing mechanisms and green energy subsidies could further promote the adoption of renewable energy sources within the mining sector.

Will regulators believe Bitcoin can incentivize renewables?

Planet B
There is a PlanB, however. (Pexels)

Bitcoin advocates like Nic Carter argue that mining can play a role in growing the sustainable energy sector by using excess electricity capacity for energy efficiency or helping to finance renewable projects.

The need for electricity in the creation of Bitcoin is obviously a concern. At the same time, it is one of the best-use cases for excess electricity capacity vital in the renewables sector, says Toby Lewis, co-founder of Ordinals Bot. With the right incentives, Bitcoin can become a financing mechanism for the renewable grid.

The question is not whether or not this argument is correct and its a source of contention even in the crypto community its whether governments and regulators can be convinced it is.

It will be a hard sell to convince lawmakers, but Josef Ttek, a Bitcoin analyst at hardware wallet provider Trezor, argues that Bitcoin mining is a net positive for climate change.

Contrary to some claims, Bitcoin mining is beneficial for the environment and bootstraps renewable energy generation, he says, noting mining pops up wherever theres cheap renewable power.

For example, just recently, we have learned that the kingdom of Bhutan has been mining Bitcoin with its hydroelectric stations for years.

It will be interesting to see whether the result of a clampdown on mining by bigger countries will see mining nomads shift operations to crypto-friendly countries that provide sustainable power like Bhutan.

The small hermit kingdom in the Himalayas is watered by glaciers in the mountains. It has huge stores of hydroelectricity, providing 30% of the countrys GDP and literally fuelling the homes of nearly all of its 800,000 residents. According to Forbes, the country is following the example of El Salvador by becoming one of two countries to run a state-owned mining operation.

Read also
Features

Forced Creativity: Why Bitcoin Thrives in Former Socialist States

Features

Unforgettable: How Blockchain Will Fundamentally Change the Human Experience

Nick Jones, CEO of Zumo a crypto-as-a-service platform believes that crypto is well-placed to quickly reduce emissions.

All sectors need to rapidly decarbonize, and crypto has an opportunity to do this more quickly than most. Bitcoins carbon footprint is due almost entirely to electricity consumption, and we have the technology to rapidly decarbonize. Significant progress has been made, but there is still much to do, he says.

Surging demand for Bitcoin

The unexpected recent addition of NFTs and tokens to Bitcoin via Ordinals has created a huge wave of additional demand for the blockchain. Last month, the daily record for inscriptions using Bitcoin Ordinals was broken four times as users flooded the network with images, games and other content.

Daniel Santos, co-founder of Gamepay, argues that Ordinals is the first successful protocol built on Bitcoin and will result in more adoption, which in turn will mean more mining and more power to be generated.

Governments will step in and regulate mining for sure, especially as Ordinals take hold. There will also be a drive for green energy, even if a lot of Bitcoin mining is done with green energy, he says.

I suspect governments will require miners to have licenses to mine.

Ordinals could be the proverbial straw that breaks the camels back for Bitcoin and its energy consumption. Moreover, as the crypto winner begins to thaw, the demand for the currency is also expected to surge as the currencys price climbs.

This is an issue that will run for years to come. Prepare for demonstrations against Bitcoin and more proposals to ban either the protocol or mining.

While Bitcoin is unbannable, there is a need to address emissions and to be on the front foot in the public debate. Whether change comes from within the industry or via external intervention is a question the crypto community needs to urgently address.



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Security firm discovers $500M vulnerability in Tron multisig accounts

Security firm discovers $500M vulnerability in Tron multisig accounts

After reporting the vulnerability to Tron in February, the researchers highlighted that the issue was promptly addressed and resolved within a few days.

A research team at dWallet Labs has discovered a zero-day vulnerability in Tron multisig accounts, allowing an attacker to bypass the multisignature mechanism and sign transactions with a single signature.

In a technical breakdown post, the research team said the vulnerability could have impacted $500 million in assets held in Tron multisig accounts. This is because it allows any signer to “completely overcome the multisig security offered by TRON.”

As its name suggests, multisignature wallets require multiple signers defined in an account to approve transactions and move funds, allowing the creation of joint accounts in crypto. Each account signer holds their own keys and the account requires a certain threshold for approving transactions. 

According to the research team, the vulnerability with Tron’s multisig allows for generating many valid signatures. They wrote:

“We can bypass the multisig verification process by signing the same message with non-deterministic nonces of our choice. By doing so, we will be able to generate many valid different signatures for the same message by the same private key.”

According to the cybersecurity team, Tron ensures the signatures are unique instead of checking if the signers are unique. Because of this, signers can potentially “double vote” or sign twice. Omer Sadika, the CEO of dWallet Labs, said the fix was simple: verify the address instead of the number of signatures.

Sadika discussed the vulnerability in a thread. Source: Twitter

The researchers noted that the vulnerability was reported to Tron in February and fixed days after.

Related: Justin Sun issues apology after Sui LaunchPool clashes with Binance CEO

Cointelegraph reached out to Tron for comments but did not receive a response.

In other news, another decentralized finance protocol recently suffered a $7.5 million exploit. On May 28, blockchain security firm PeckShield reported that Arbitrum-based Jimbos Protocol was hacked, resulting in the loss of 4,000 Ether (ETH).

Magazine: US and China try to crush Binance, SBF’s $40M bribe claim



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Wintermute moves over $4M of Optimism to Binance ahead of token unlock

Wintermute moves over $4M of Optimism to Binance ahead of token unlock

On-chain analytics platform Spot on Chain reported that Wintermute sold the tokens at $1.63 per OP.

Decentralized finance (DeFi) platform Wintermute has transferred its Optimism (OP) tokens to a Binance exchange wallet ahead of the upcoming unlock that’s scheduled to release $587 million worth of tokens into the market. 

On May 31, 386 million OP tokens will be unlocked for early contributors and investors. The amount of tokens that will be released into the market accounts for 9% of the total supply. The tokens are worth around $587 million and are expected to increase the circulating supply by over 100%.

Seemingly preparing for what lies ahead, Wintermute’s wallet has been spotted transferring 2.651 million OP – worth $4.31 million – to Binance in the past 2 days. According to the on-chain analytics platform Spot on Chain, the DeFi protocol has already sold the tokens for $1.63 per OP.

According to the analytics platform, the company accumulated a total of 21.31M from crypto exchanges Binance and Coinbase at an average price of $1.01. At the moment, the platform has already sold 5.9 million tokens for a total of $10.6 million. The DeFi platform still holds a total of 15.37 million OP, which is worth around $23.4 million at the time of writing. 

Related: Bitcoin selling for $5K cheaper on Binance Australia as fiat ramp closes

Last year, the Ethereum layer-2 scaling solution Optimism raised $150 million in a Series B round, led by Andreessen Horowitz (a16z) and Paradigm, as it saved $1 billion in fees for Ethereum users. According to Crunchbase, Wintermute was one of the investors who participated in this round.

Meanwhile, the platform is set to go through a major upgrade on June 6. On May 16, Optimism announced the date for its "Bedrock" upgrade that's expected to reduce transaction fees and enhance its compatibility with the Ethereum network.

Magazine: ZK-rollups are ‘the endgame’ for scaling blockchains, Polygon Miden founder



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Filmmaker Alana Mediavilla On Bitcoin’s Energy Consumption, Education And Closing The Gender Gap

Filmmaker Alana Mediavilla On Bitcoin’s Energy Consumption, Education And Closing The Gender Gap

It’s no secret that those who feel threatened by Bitcoin will attack it. Just a month ago, The New York Times published a malicious article on Bitcoin mining’s energy usage. Senator Elizabeth Warren from Massachusetts has repeatedly attacked Bitcoin from a variety of angles, going so far as to launch an “anti-crypto army” targeting Bitcoin as a hazard to consumers, all while misleading the public on the environmental impact of Bitcoin.

These verbal assaults are not isolated and the examples above represent only a small piece of the uphill climb Bitcoin has to mass adoption. To put it mildly, Bitcoin is disrupting countless industries, making centralized authorities fearful of losing their monopoly on money and the power that accompanies it. Bitcoin essentially “calls the bluff” on corrupt bureaucrats and infinitely-inflatable fiat currencies that further enrich those who own assets while eating away at the purchasing power of those living paycheck to paycheck. Because Bitcoin is location-agnostic and capable of utilizing flexible loads, it naturally increases demand for the cheapest energy sources, which are often stranded natural gas or renewables.

So, why do many elected officials and companies attempt to denigrate and work to outlaw Bitcoin mining? Likely because their egos prevent them from understanding the value proposition of Bitcoin, but the facts speak for themselves.

Alana Mediavilla is a wife, mother, entrepreneur, business owner, filmmaker and Bitcoiner. She has a hell of a resume and a passion for storytelling. Armed with her knowledge of Bitcoin and skillset, Mediavilla decided to film and produce the documentary “Dirty Coin,” which highlights the value of Bitcoin mining while simultaneously busting the theory that Bitcoin mining is bad for the environment.

It was a privilege to hear her story and I know you will find her passion for Bitcoin inspiring.

What is your professional background? 

I've been an artist and entrepreneur my whole life. Couldn't help it. Started my production company in Silicon Valley 11 years ago and got recruited to be a video producer at Google Cloud for almost five years while I moonlit still running my creative agency for other big tech folks. In 2021, I parted my full-time ways with Google to focus my efforts on my company and my own IP and films.

How did you first learn about Bitcoin and what categorically drew you to it? 

I learned about Bitcoin during my daughter's ballet class in Campbell, California. A friend of mine that also had his daughter in the same class told me to buy as much as I could waste on bitcoin that week. He told me it would go up, so I degened into Bitcoin. That got me paying attention to it and when my Cuban grandfather told me he knew people sending bitcoin to Cuba, I dug into what the heck Bitcoin really was. What I found out blew my mind and continues to do so to this day.

How do you typically respond to those who are dismissive of Bitcoin, especially those close to you? 

I make a feature documentary explaining my position to them XD.

It's understandable to be against Bitcoin. Crypto is a clown show and many don't see the difference between Bitcoin and shitcoins. Add to that that many people were raised with an energy scarcity mentality so having some crypto "hog all the energy" definitely sounds alarming. The issue is that this is just not the case. Is the industry perfect? Hell no! But are we scrutinizing the energy use of other industries the same way? Are we studied enough to know about the situations where having an energy-hungry industry like Bitcoin mining can be a good thing, as in the cases with flare mitigation or becoming a buyer of last resort in the middle of nowhere?

Understanding more factual information about the space can't help but create better conversations about Bitcoin.

In your opinion, why is it important to close the gender gap in Bitcoin interest and adoption?

Bitcoin is for everyone. Closing the gender gap is bringing diversity of users and advocates into Bitcoin. Women are particularly good at influencing their social circles and communities. More women in the Bitcoin space means more women advocating for Bitcoin in a grassroots way. We need all kinds of people to root for financial sovereignty and that starts with conversations around the dinner table that mothers are very often responsible for leading. Whether a woman is financially independent or supporting her partner who is taking on that responsibility for the family, women understanding the importance of Bitcoin means more support to other women, people in their community, and most importantly, their families.

This is a guest post by Becca Bratcher. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.


via bitcoinmagazine.com
Another dormant Ethereum wallet reawakens after 8 years, moving millions

Another dormant Ethereum wallet reawakens after 8 years, moving millions

Its owner acquired the tokens during Ethereum’s ICO in 2015, when each ETH was worth only 31 cents each.

An Ether (ETH) wallet that has been inactive since Ethereum’s ICO (Initial Coin Offering) in 2015, has suddenly awoken after eight years of dormancy, moving a total of 8,000 ETH in just two minutes.

The wallet received the 8,000 ETH after participating in Ethereum’s ICO (Initial Coin Offering) in 2015 and remained inactive until May 27. On that day, its owner began with a cautionary transfer of 1 ETH to a new wallet. One minute later they transferred the remaining 7,999 ETH to the new wallet address.

At the time of writing, the ETH stash is worth approximately $14.7 million.

This transaction was first noticed by blockchain analytics service Lookonchain, which informed its 219,000 Twitter followers of the transfer.

In the comments section of the post, there was some community speculation around the reason for the transfer. One commenter suggested that the owner had just been released from prison, while another made a humorous remark that they were transferring funds from an old Ledger — a pointed comment about the company’s controversial new Recover upgrade.

At the time, the 8,000 ETH was purchased at a price of just $0.31 per token, which places the initial investment amount at around $2,500.

At today’s prices of $1,917, this marks a staggering 590,000% gain for the owner.

This isn’t the only ICO-era Ether wallet to re-awaken in recent months. On April 24, another wallet which received 2,365 ETH ($4.5 million) made its first transaction in nearly 8 years, after the owner transferred just 2,360 ETH to a new wallet address.

On March 5, another ETH wallet transferred 10,226 ETH ($19.6 million) out to new wallet address after remaining dormant for five years.

The new wallet address is also one with little in the way of any significant transaction history. The only other ETH transaction recorded in the new wallet is a 207 ETH ($380,000) incoming transaction that was made just a few minutes prior to the most recent transfer. Notably, the additional 207 ETH were sent from another wallet that remained completely inactive since June 12, 2017.

Related: Arbitrum-based Jimbos Protocol hacked, losing $7.5M in Ether

Interestingly, the new wallet also contains $46 worth of a memecoin called Gensler (GENSLR), and just $0.24 worth of a dragon-inspired token called Dejitaru Tsuka (TSUKA), according to data from Web3 wallet tracker DeBank.

Total allocation of token holdings in the owner’s new wallet. Source: DeBank.

The Ethereum ICO occurred in two primary stages. The first stage was the pre-sale, and between July 22 and Sept. 2, 2014 the sale of Ethereum tokens to new investors raised $18 million. The going exchange rate for the pre-sale was 1 BTC — for 2,000 ETH. The second stage was the official launch of the Ethereum blockchain which occurred on July 30, 2015. This meant that some investors waited more than a year to be able to redeem and use their ETH.

Dormant wallets with vast sums of crypto can awaken for a variety of reasons. Sometimes dormant wallets reawaken because they’ve been hacked. Other times, it's simply because the owner may have forgotten about it and upon its re-discovery, have decided that it's possibly a good time to sell.

Crypto City: Guide to Osaka, Japan’s second-biggest city



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7 presidential candidates have dropped clues about their crypto stance

7 presidential candidates have dropped clues about their crypto stance

There are currently many from the Democratic and Republican parties bidding for the job of president. Here's what they’ve said about crypto.

In late 2024, citizens of the United States will take to the voting booths to elect their next president — a four-year term that could have a vast impact on the next crypto bull run.

Though polls are set to open on Nov. 5, 2024, dozens of U.S. politicians have already signaled an intention to contest President Joe Biden for the country’s top position.

The current Biden administration appears to have been taking an increasingly anti-crypto stance. Meanwhile, former president Donald Trump is again bidding for the job — setting the stage for a rematch. Others are seeking to carry the Democrat and Republican presidential nominations.

‘No fundamental value’: Joe Biden — Democrat

The current president of the United States, Joe Biden, kicked off his re-election bid on April 25, and is at the moment, the likely favorite for the Democrat’s presidential nominee.

Biden’s attitude toward crypto is possibly best summarized by his 2023 Economic Report of the President which included a section on crypto for the first time since it began in 1950.

The section aimed to debunk the “Perceived Appeal of Crypto Assets.” It argued crypto doesn’t deliver on “touted” benefits and claimed “many of them have no fundamental value.”

Biden has rallied against perceived crypto “tax loopholes” and even opposed a debt ceiling agreement with Republicans as he claimed it protected “wealthy tax cheats and crypto traders.”

His March 2022 executive order culminated with the first framework for crypto. He’s called for a 30% tax on crypto mining electricity usage, doubling capital gains taxes and cracking down on crypto wash sales.

‘Not a fan of Bitcoin’: Donald Trump — Republican

The former president turned NFT salesman Trump threw in his non-consecutive re-election bid on Nov. 15, 2022. According to current polling, he’s the favored Republican nominee.

Trump has said crypto “may be fake” and is “a disaster waiting to happen.” He’s also said Bitcoin (BTC) “just seems like a scam” and didn’t like it “because it is another currency competing against the dollar.”

In July 2019 as president, Trump tweeted he was “not a fan of Bitcoin and other cryptocurrencies” claiming their value was “based on thin air.”

During his presidency, Trump targeted crypto use in financial crimes and purportedly told his Treasury Secretary Steven Mnuchin to “go after Bitcoin” in a conversation on trade sanctions against China. “Cryptocurrencies” were mentioned in his 2021 budget proposal but only for explaining their use in crimes.

He did, however, mull a capital gains tax cut which could have been favorable to crypto users. Trump administration officials did once tout distributed ledger technology (DLT) as a tech that could benefit government operations and bolster the country’s cybersecurity defenses.

‘Every right to do Bitcoin’: Ron DeSantis — Republican

Ron DeSantis said he would “protect” Bitcoin in his May 24 presidential bid announcement on Twitter. Polls taken before the Florida governor's announcement have him second favorite to Trump.

During his Twitter Space campaign kick-off, DeSantis said “You have every right to do Bitcoin” and would “protect the ability to do things like Bitcoin.”

He called out Congress, claiming it “never addressed” crypto and said regulators had made it so “that people can not operate in that space.”

His 2022–2023 budget proposal for the state of Florida proposed the government allows businesses to pay state fees with cryptocurrencies.

DeSantis is probably better known as an anti-central bank digital currency (CBDC) figure.

He passed laws in Florida prohibiting the use of a federal CBDC as money and banned the use of foreign CBDCs. He’s also rallied against the Federal Reserve’s FedNow 24/7 instant payments system, claiming it's a CBDC precursor.

‘Bitcoin should not be regulated as a security’: Vivek Ramaswamy — Republican

Pharmaceutical firm founder Vivek Ramaswamy has also signaled a pro-crypto stance but is considered a long shot for the Republican nomination.

In mid-May, Ramaswamy tweeted “Bitcoin should not be regulated as a security.” At the Bitcoin 2023 conference, he announced he would accept campaign donations in Bitcoin.

At the conference, Ramaswamy reaffirmed Bitcoin should not be considered a security, saying “We need to keep it that way.”

Related: New White House standards strategy could have implications for crypto industry KYC

“Bitcoin is finite in its quantity, there is no issuer. It should never have been treated as a security under the current securities laws,” he said.

‘A major innovation engine’: Robert F. Kennedy Jr. — Democrat

Robert F. Kennedy Jr is seen as unlikely to be put forward by the Democrats for president — but he has signaled pro-crypto stances.

Earlier in May he said “crypto technologies are a major innovation engine" and called Bitcoin a “symbol of democracy and freedom” in a speech at the Bitcoin 2023 conference.

He is accepting BTC for campaign donations and was the first presidential candidate to ever do so, beating Ramaswamy by a few days.

Kennedy called Biden’s proposed 30% crypto miner energy tax “a bad idea” and opposes CBDCs as they “vastly magnify the government’s power.” He opposes the Fed’s FedNow system for a similar reason.

The others

The third favorite declared Republican candidate Nikki Haley hasn’t publicly addressed her views on crypto.

Democratic nominee Marianne Willamson hasn’t either but has implied disappointment at the Canadian government blocking crypto wallets during the trucker protests in 2022.

Republican Senator Tim Scott is also a bidder and similarly has no stated crypto policies. He did, however, have plans to develop a crypto “bipartisan regulatory framework.”

He’s been critical of the securities regulator’s handling of FTX and questioned if they’ve been “asleep at the wheel.”

Cointelegraph contacted the campaigns of Haley, Williamson and Scott to clarify their positions on crypto but did not receive a response.

Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?



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