Biden promises to veto crypto policy repeal Dencun upgrade causes ETH inflation

Headlines

▌Biden promises to veto House crypto policy repeal bill

Biden promises to veto a bill that the House will vote on Wednesday to repeal the SEC's crypto policy. The policy is believed to have prevented banks from dealing with crypto customers. The bill's sponsors said the SEC had problems handling the policy. While some Republican lawmakers support the move, Democrats believe the resolution is too radical. The White House expressed support for the SEC's policy, saying that repeal would bring financial instability and market uncertainty. If the resolution passes, similar SEC policies will be permanently blocked.

▌CryptoQuant analyst: Ethereum's Dencun upgrade makes ETH inflationary again

Analysts at data company CryptoQuant said that the Dencun upgrade has made Ethereum inflationary again, which may kill its low-inflation currency characteristics. Due to the Dencun upgrade, Ethereum burn has dropped to one of the lowest levels since the merger, when Ethereum switched from proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanism, and Ethereum supply is growing at the fastest daily rate since the network merger. CryptoQuant analysts said that before the Dencun upgrade, higher network activity on Ethereum meant higher fees burned, and therefore less Ethereum supply. However, after the Dencun upgrade, the total amount of fees burned has decoupled from network activity.

Market

As of press time, according to Coingecko data:

BTC's latest transaction price is $61,185.67, with a daily increase or decrease of -1.9%;

ETH's latest transaction price is $2,973.59, with a daily increase or decrease of -1.4%;

BNB's latest transaction price is $588.44, with a daily increase or decrease of +2.0%;

SOL's latest transaction price is $142.07, with a daily increase or decrease of -4.3%；

DOGE's latest transaction price is $0.1434, with a daily increase or decrease of -4.6%；

XPR's latest transaction price is $0.5172, with a daily increase or decrease of -1.5%。

Policy

▌The U.S. House of Representatives passed a resolution to overturn the SEC's announcement on cryptocurrency accounting standards. The voting result was 228-182, showing a clear partisan divide. The announcement requires banks to record customer crypto assets as liabilities, sparking industry controversy and concerns that services may be hindered. Republicans support the resolution, but the White House said the president would veto the move, fearing that it could cause financial instability. Democrats accused the move of undermining the SEC's authority. The resolution will go to the Senate for deliberation and face more partisan controversy.

▌Viewpoint: FCC's restoration of network neutrality rules is good for Web3 startups

Sarah Aberg, general counsel of Nova Labs, said that the Federal Communications Commission (FCC)'s restoration of network neutrality rules is good news for Web3 startups. The rule protects the principle of an open Internet, provides support for innovation in the digital age, and is a reflection of America's core values. The restoration of network neutrality rules is considered a forward-looking, innovation-friendly regulatory measure. The rule protects innovators operating on the network and encourages new technologies, applications and services to participate in fair competition. The FCC's move will strengthen future innovation while protecting the interests of consumers and critical infrastructure.

▌The U.S. SEC refutes Ripple's claim that the $2 billion fine should be reduced to $10 million

According to a recent court document, the U.S. Securities and Exchange Commission (SEC) is refuting Ripple's claim that the fine should be reduced. The SEC said that Ripple should pay a fine of nearly $2 billion for selling products to institutional investors. Ripple argued in an opposing motion filed last month that the figure should be closer to $10 million, and the SEC pointed out that the amount of the penalty it proposed was large, but in a document released by the SEC on Tuesday, it said that the penalty proposed by Ripple would be a "mild punishment."

Blockchain Applications

▌Former Amazon software developer creates Bitcoin wallet app called Machankura

Kgothatso Ngako, a former Amazon software developer in South Africa, created a Bitcoin wallet app called Machankura to solve the problem of millions of people in Africa not having smartphones. The app can run on ordinary mobile phones and uses the Lightning Network to conduct Bitcoin transactions without the need for a touch screen or camera. Ngako said they already have nearly 15,000 users in countries such as South Africa, Nigeria, and Kenya. He mentioned that this service is similar to what Facebook does in developing countries, with reverse billing achieved through the USSD interface. Users can use Lightning addresses, without the need for copy-paste functions, and can conduct Bitcoin transactions by simply entering numbers or email addresses.

Cryptocurrency

▌Chain game Shrapnel announces support for token purchases via credit and debit cards

First-person shooter Shrapnel (an Avalanche blockchain game available on the Epic Games Store) has announced that it can now purchase tokens via credit and debit cards, thereby increasing trading volume. Previously, players could only obtain SHRAP tokens through exchanges, and now, through integration with the Halliday portal, players can use Moonpay or Stripe as payment gateways to quickly convert fiat currencies into SHRAP, according to a statement.

▌MakerDAO: DAI supply increased by 1 billion in the past two months

MakerDAO said on the X platform that the DAI supply increased from $4.4 billion to $5.4 billion in 60 days. In addition to supply growth, DAI set a new record in April with $636.72 billion in on-chain transactions. The Dai Savings Rate (DSR) has also seen positive momentum, with the DSR growing steadily in recent months and total deposits exceeding $2 billion last week.

▌Robinhood Q1 Crypto Trading Volume Surges 224% to $36 Billion

Robinhood’s Q1 results exceeded expectations, with its crypto trading volume surging 224% to $36 billion. Despite the SEC’s Wells Notice alleging violations, Robinhood’s crypto division revenue increased 232% year-over-year to $126 million. The move played a key role in its overall growth in trading-related revenue, which increased 59% year-over-year.

▌BAYC holders lose three rare NFTs to phishing scam

According to ZachXBT monitoring, Bored Ape Yacht Club holders allegedly lost three rare NFTs to a phishing attack. Blockchain browser Etherscan also pointed out that the wallet associated with the BAYC NFT transaction has been used in previous phishing scams, and it is not clear how this phishing attack happened.

The phished Bored Ape NFTs are BAYC#7531, BAYC#6736, and BAYC#2100. According to data from NFT market OpenSea, they are worth 21 ETH ($62,960), 15.8505 WETH ($47,500), and 18 ETH ($54,000), respectively. The total value is 54.8505 ETH (US$164,400).

Important Economic Dynamics

▌The probability of the Federal Reserve keeping interest rates unchanged in June is 91.2%

According to CME's "Fed Watch", the probability of the Federal Reserve keeping interest rates unchanged in June is 91.2%, and the probability of a 25 basis point rate cut is 8.8%. The probability of the Federal Reserve keeping interest rates unchanged by August is 69.5%, the probability of a cumulative 25 basis point rate cut is 28.4%, and the probability of a cumulative 50 basis point rate cut is 2.1%.

▌Fed Collins: It may take longer than expected to reach 2% inflation

Fed Collins said it may take longer than expected to reach 2% inflation; the policy is moderately restrictive and appropriate to the risk; interest rates should be kept unchanged until confidence increases; the full impact of restrictive policies may not have been seen; uncertainty is high, reinforcing the need for the Fed to remain patient; it is necessary to slow the US economic growth so that inflation is on a path back to 2%; since 2024, no inflation has been seen to fall; demand is expected to eventually slow, but there is uncertainty about the timing.

Golden Encyclopedia

▌What is liquidity pledge?

Liquid staking allows stakers to maintain liquidity of staked tokens by using alternative tokens, which they can use to earn additional returns through DeFi protocols. Liquid staking enables cryptocurrency holders to participate in staking without giving up control of their holdings. This changes the way users stake. Projects such as Lido have introduced liquid staking to provide tokenization of staked assets in the form of tokens and derivatives.

Disclaimer: As a blockchain information platform, Golden Finance publishes articles for information reference only and is not intended as actual investment advice. Please establish correct investment concepts and be sure to increase risk awareness.