Top Headlines
Binance.US has urged a federal judge to deny the Securities and Exchange Commission’s (SEC) request to freeze billions in assets belonging to the cryptocurrency exchange, warning that such a move would cripple its operations and harm customers. In a court filing submitted on Monday, June 12, lawyers for Binance.US argued that the company’s ability to function would grind to a halt if it could not pay employees, vendors, suppliers, and professionals or maintain its trading platform. They also cautioned that banking partners would likely cease processing all fund transfer requests—including customer redemptions—if all corporate assets were frozen.
In related regulatory developments, U.S. Congressman Warren Davidson announced on June 12 that he had introduced the “SEC Stabilization Act” in the House of Representatives. A key provision of this bill is the removal of SEC Chair Gary Gensler. Davidson stated that U.S. capital markets must be protected from the influence of an overreaching chairman, including the current one, emphasizing the need for reform to prevent ongoing abuses of power and ensure market protections for years to come.
Market Update
As of the latest data from CoinMarketCap:
- BTC: $25,899.90, +0.27%
- ETH: $1,741.62, +0.55%
- BNB: $230.97, -0.05%
- FIL: $3.52, +3.19%
- DOGE: $0.0614, +0.84%
- ADA: $0.2751, -0.77%
- MATIC: $0.6427, +0.05%
Regulatory Developments
Thailand Tests Retail CBDC in Pilot Program
According to local sources, the Bank of Thailand has partnered with three domestic payment service providers to launch a pilot for its retail central bank digital currency (CBDC), the digital baht. The testing is taking place in a regulatory sandbox and is expected to run through August, with plans to involve up to 10,000 participants. While the central bank has not yet committed to a full launch, it continues to explore potential use cases aimed at improving payment efficiency and advancing the country’s digital transformation.
U.S. and UK Lawmakers to Debate Crypto Regulations
Lawmakers in the United States and the United Kingdom are set to bring discussions on digital asset regulation into the public arena amid growing regulatory pressure on the cryptocurrency industry. June 13 marks a key moment in the ongoing debate, with both countries holding hearings.
In the UK, Parliament will debate findings from the All-Party Parliamentary Group (APPG) on Cryptocurrency and Digital Assets regarding the necessity of crypto regulation. The debate, led by APPG Chair Dr. Lisa Cameron, is scheduled to begin at 11:00 AM BST.
Later that day, the U.S. House Financial Services Committee will hold a hearing titled “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem” at 2:00 PM ET. The hearing aims to focus legislative and public attention on digital assets, their potential risks and benefits, and the government’s role in regulating them.
Blockchain Applications
Polygon NFT Collections Now Available on Kraken NFT Market
Polygon NFTs are now accessible on the Kraken NFT marketplace. Customers can deposit and withdraw supported Polygon NFTs, including Reddit Collectible Avatars, using the Polygon network.
Polygon to Unveil Polygon 2.0 Blueprint
Ethereum scaling solution Polygon is set to reveal the blueprint for its 2.0 version in the coming weeks. In a blog post, the team indicated that the update will address topics such as the future of the Polygon PoS chain, the utility and evolution of the Polygon token, and the transition to greater protocol and community governance. The vision for Polygon 2.0 is to build an “Internet of Value layer,” enabling decentralized finance, digital ownership, and new forms of coordination.
0N1 Force Launches Web3 Ally Program
NFT project 0N1 Force has announced the launch of its Web3 Ally Program on social media. The initiative aims to foster a robust web3 ecosystem through collaboration and mutual growth. It will pool resources to support the web3 ecosystem, offering assistance to media, gaming, IP development, and NFT projects while strengthening the communities of 0N1 Force and its partners. The program is open to all, including project leaders, artists, creators, and brands.
Crypto Social App Geojam Signs with Hollywood Agency WME
Geojam, a blockchain-powered social media platform backed by pop star Mariah Carey, has signed with top Hollywood talent agency WME. The agency, which represents traditional Hollywood talents such as Keanu Reeves, Dwayne Johnson, and Martin Scorsese, has been gradually building its web3 client list, which includes early NFT pioneer Mack Flavelle, co-founder of CryptoKitties. WME stated that its goals include securing brand deals for Geojam and exploring ways for creators to engage with fans. On Geojam, users can create and share content in response to AI prompts while earning the platform’s native token.
Cryptocurrency Updates
Defense Lawyers: CZ Has Bank Account Access Without Signing Authority
Binance.US has responded in court to the SEC’s allegations of fraud, market manipulation, and misleading customers about asset location and security. In a new court filing, Binance.US claimed that it has made “significant efforts” to cooperate with the SEC’s investigation since December 2020.
Addressing the SEC’s claim that Binance.US commingled customer assets with funds controlled by CEO Changpeng Zhao (CZ), lawyers for BAM Trading, the parent company of Binance.US, stated that the company “holds customers’ fiat currency in segregated accounts with its banking partners, separate from any corporate funds.” They acknowledged that Zhao has access to BAM Trading’s bank accounts but asserted that he does not have signing authority over them.
The SEC has requested a hearing on a temporary restraining order against Binance.US, which would effectively freeze the assets of the U.S. subsidiary while allowing customer withdrawals. The SEC also seeks a comprehensive accounting of Binance and Binance.US’s financial conditions.
Binance US Hires Former SEC Enforcement Co-Director for Defense
Binance US has enlisted four lawyers from Milbank LLP, including George Canellos, former co-director of the SEC’s enforcement division. The move comes as Binance US prepares to defend against U.S. charges of operating an illegal securities exchange.
Canellos, global head of Milbank’s litigation and arbitration team, previously oversaw approximately 1,300 lawyers at the SEC conducting investigations, including insider trading actions against Raj Rajaratnam and hedge fund managers associated with SAC Capital. Prior to that, he led the major crimes unit at the U.S. Attorney’s Office for the Southern District of New York.
Coinbase International Policy VP Eyes Expansion in Abu Dhabi and Canada
Hong Kong legislator Johnny Ng has invited global virtual asset trading operators, including cryptocurrency exchange Coinbase, to register in the region. A Coinbase spokesperson responded to the tweet, stating that Coinbase is committed to working with highly regarded regulators both in the U.S. and abroad.
In April, Coinbase CEO Brian Armstrong said the company would consider moving out of the U.S. if regulatory clarity remained elusive—a goal the company has been actively pursuing. Tom Duff-Gordon, Vice President of International Policy at Coinbase, noted in an interview that the company is now seeking global expansion. Coinbase is working to establish operations in Abu Dhabi and Canada and is awaiting approval to register in Singapore. Despite this international focus, Duff-Gordon emphasized that Coinbase is not prepared to abandon the U.S. market.
BlockFi Plans to Allow Customer Withdrawals This Summer
Crypto lending company BlockFi announced on Monday that work to allow customer withdrawals is expected to be completed this summer. The company paused withdrawals last year following the collapse of the FTX exchange. BlockFi stated that any withdrawals would have to be conducted in batches, with eligible customers receiving email notifications from the company. In the meantime, users are advised to set up third-party wallets to facilitate fund withdrawals.
Former SEC Chair: Integrating Crypto and Blockchain into Financial System Is Inevitable
Former SEC Chairman Jay Clayton shared his views on crypto regulation, stating that cryptocurrency and blockchain are merely technologies and that integrating them into the financial system is beyond dispute. He also spoke positively about asset tokenization and stablecoins, noting that tokenizing securities could make them more efficient than current methods and that the technology enables remarkable capabilities for moving dollars around the world at the retail level.
Key Economic Trends
Fed Expected to Hold Rates Steady with 79.1% Probability
According to CME’s “FedWatch Tool,” there is a 79.1% probability that the Federal Reserve will maintain current interest rates at its June meeting, with a 20.9% chance of a 25-basis-point hike. For July, the probability of rates remaining unchanged is 26.1%, with a 59.9% chance of a cumulative 25-basis-point increase and a 14.0% chance of a cumulative 50-basis-point increase.
Bank of America CEO: Fed May Pause but Won’t Declare Hikes Over
Bank of America CEO Brian Moynihan commented that U.S. capital markets will get back on track and remain open. He expects the Fed to hold rates steady in the near term before beginning to cut in 2024. Moynihan suggested that the Fed might pause rate hikes but would not declare the hiking cycle complete.
Frequently Asked Questions
What is the SEC seeking to achieve with the asset freeze request against Binance.US?
The SEC aims to prevent potential misuse of customer assets and ensure compliance with U.S. securities laws. The request is part of a broader lawsuit alleging that Binance.US operated an unregistered securities exchange and commingled funds.
How might the asset freeze impact Binance.US customers?
If granted, the freeze could halt all corporate operations, including payroll and platform maintenance, though customer withdrawals are expected to remain allowed. Banking partners might stop processing transactions, potentially delaying redemptions.
What are the key goals of Polygon 2.0?
Polygon 2.0 aims to create an “Internet of Value layer” by enhancing scalability, evolving token utility, and transitioning to community-driven governance. It seeks to support decentralized finance, digital ownership, and new coordination mechanisms.
How does a retail CBDC like Thailand’s digital baht work?
A retail CBDC is a digital form of central bank money accessible to the general public. It aims to offer a secure, efficient payment method while maintaining monetary stability. Pilots test usability, security, and integration with existing financial systems.
What is Web3 privacy, and why is it important?
Web3 privacy involves protecting user data on blockchain networks, such as transaction details and participant identities. It is crucial for maintaining financial confidentiality and personal security in decentralized ecosystems.
How can users stay informed about BlockFi withdrawal eligibility?
BlockFi will notify eligible customers via email when withdrawals are enabled. Users should ensure their contact information is updated and consider setting up a compatible third-party wallet for seamless transactions. 👉 Explore secure wallet options
Disclaimer: This content is provided for informational purposes only and does not constitute investment advice. Readers should conduct their own research and exercise caution when engaging in financial activities.