The Breakdown First Five - Wednesday July 12, 2023

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. Gensler won’t recuse

In the single most shocking piece of news of the year, Chair Gensler doesn’t think he has any reason to recuse himself from Crypto policy matters. He said he is “well aware of my ethical responsibilities”. Gensler has faced pressure from the Blockchain Association to recuse, claiming that he is incapable of impartiality. To add insult to injury, Gensler also appeared unimpressed by Blackrock’s partnering with Coinbase, leading some to downgrade the chances an ETF is approved.

4. Circle Cuts

Circle has joined in the layoffs that have decimated the Crypto workforce. The stablecoin issuer said they are looking to strengthen their balance sheet and focus on “core business activities and execution”. The firm is still hiring on a global basis for areas of focus, which may imply looking abroad to more functional regulatory environments.

3. Google allows Web 3

Contrasting recent decisions from Apple, Google has thrown open the doors to tokens on their app store. The tech giant has reversed its policy and will now allow tokenized digital assets and NFTs in apps and games. With Crypto gaming a major speculative bet for the next bull cycle, Google could be well placed to stand out as the Crypto-friendly mobile platform.

2. EU: “No such thing as safe Crypto”

EU regulators are gearing up to release their first set of Crypto regulations and the rhetoric is aggressive. They warned Crypto firms that the EU is no place for regulatory arbitrage, implying oversight will be strict. For investors, they warned that even with the new legislation “there will be no such thing as a safe crypto-asset". New regulations commence in 2024 but regulations will be published ahead of time to allow firms to get up to speed.

1. Lummis Gillibrand Bill reintroduced

Senators Lummis and Gillibrand have reintroduced their comprehensive Crypto bill. The bill provides a substantial and workable framework for investor protection, market structure and regulatory oversight. The downside is the introduction of more onerous KYC and financial surveillance controls. This important legislation takes Crypto legislation seriously as a priority, but will Congress feel the same way?

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