Gov. DeSantis Backs Bitcoin | Texas Bill Threatens Miners

GEMINI PRESSURES DCG OVER GENESIS LOAN

The crypto exchange founded by Cameron and Tyler Winklevoss said that Digital Currency Group failed to pay back a $630 million payment to its crypto lending unit Genesis, which is operating under bankruptcy-court protection, but a standstill agreement will delay a default until at least May 30.

Genesis, its unsecured creditors committee and Gemini are considering allowing DCG more time to make its loan payment in order to avoid a default that would almost certainly have cascading consequences for DCG. The crypto conglomerate owes the subsidiary more than $1.65 billion. Genesis was the lender behind Gemini Exchange’s Earn program, a product promising yields as high as 8% to depositors.

DE SANTIS PROMISES TO PROTECT BITCOIN

Florida Governor Ron DeSantis, who launched his presidential campaign in a glitchy Twitter Spaces event with Elon Musk on Wednesday, said he’d protect bitcoin if he’s elected. “You have every right to do bitcoin,” said DeSantis. “I think the current regime, clearly, they have it out for bitcoin, and if it continues for another four years, they’ll probably end up killing it.”

Earlier this month, DeSantis signed a bill aimed at “protecting the personal finances of Floridians from government overreach and woke corporate monitoring" by barring the use of a central bank digital currency (CBDC) within the state.

Source: Forbes Digital Assets. Prices as of 12:00 p.m. on May 26, 2023.

TEXAS BITCOIN BILL THREATENS MINERS

A bill is on its way to the Texas House that would effectively increase power costs for the biggest bitcoin miner by as much as $30 million annually. The legislature would restrict the total amount of excess power bitcoin miners could provide to the Electricity Reliability Council of Texas (ERCOT), the state’s power grid, in demand-response programs. It would also bar them from using the same property tax breaks allotted to other industrial-scale power consumers. Both of these measures could significantly hamper big Texas-based miners by increasing operating costs. Bitcoin mining profitability has shrunk 60% year over year, and the bill would further carve down already thinning margins.

ELSEWHERE

Digital Currency Group Closes TradeBlock Institutional Trading Platform [Bloomberg]

Binance Pushes Back Against Reuters Report Alleging Company Commingled Funds [The Block]

Montenegro Court Overturns Terraform Founder Do Kwon’s Bail Deal [Tech Crunch]