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RFK Jr Bitcoin Backed USD, Machinsky Jailed, XRP Not a Security? - Week 44

RFK Jr Bitcoin Backed USD, Machinsky Jailed, XRP Not a Security? - Week 44

July 19, 2023

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News

RFK Jr. Wants To Back The US Dollar With Bitcoin

Robert F. Kennedy Jr., son of the late US Senator Robert F. Kennedy, has expressed willingness to back the US dollar with Bitcoin if he becomes president.

Kennedy, who is running for the presidency in 2024, sees Bitcoin as a potential solution to address concerns regarding the stability of the US dollar.

By backing the US dollar with Bitcoin, Kennedy aims to create a more secure and inflation-resistant currency. The backing would start at less than 2% with treasury notes, but nonetheless this would be a large step forward in Bitcoin legitimacy.

Binance Announces Lightning Network Integration With 5-Minute Lightning Transactions

Binance, one of the leading cryptocurrency exchanges, has “completed” the integration of Bitcoin (BTC) on the Lightning Network.

As a result, Binance users can now make deposits and withdrawals of Bitcoin using the Lightning Network, which offers faster and more cost-effective transactions.

The integration of the Lightning Network is expected to enhance the scalability and efficiency of Bitcoin transactions on the Binance platform, providing users with a more seamless and user-friendly experience. Although it might seem like Binance has integrated the lightning network, the speed and transaction fees are still that of the Layer 1 Bitcoin network and do not reflect the newer layer two settlement mechanism, usually costing around 1 cent in less than a few seconds.

Binance Lays Off 1000 Staff Members and Under Investigation

Cryptocurrency exchange Binance has reportedly laid off over 1,000 employees as part of a restructuring effort.

The company, one of the world's largest cryptocurrency exchanges, cited the need to adapt to the evolving regulatory landscape and streamline its operations.

Binance has faced increased scrutiny from regulators in various countries, leading to operational changes and scaling back its workforce. The layoffs are expected to impact multiple divisions within the company, including customer support and compliance.

XRP Wins Court Case, Not A Security

In a significant development, Judge Analisa Torres ruled partially in favor of Ripple Labs in the case brought by the U.S. Securities and Exchange Commission (SEC) against the company.

The judge granted summary judgment, stating that the XRP token is not a security but only in relation to programmatic sales on digital asset exchanges.

The news led to a surge in the price of XRP, making it the fourth-largest cryptocurrency by market capitalization. However, legal experts caution that the ruling is only partial and does not establish a precedent.

The SEC may still appeal the decision, which a higher court could overturn. The ruling has also prompted major U.S. exchanges like Coinbase, Kraken, and iTrustCapital to re-list XRP for trading on their platforms, further boosting its market presence.

Celsius Founder Alex Machinsky Arrested

Alex Mashinsky, the founder of Celsius Network, has been arrested and charged with securities fraud.

Mashinsky is accused of falsely reporting the company's business operations and misleading investors.

The arrest comes as regulators increase their scrutiny of the cryptocurrency industry and crack down on fraudulent activities. Celsius Network gained popularity as a platform that allows users to earn interest on their cryptocurrency holdings. The charges against Mashinsky highlight the need to know “where the yield comes from.”

Price

After hitting a yearly all-time high of ~$31,500, Bitcoin has fallen back to another average level in this bear market.

Even though it might seem low, Bitcoin is still up 81% Year to date but 50% below its all-time high of $69,000, leaving room for buyers to lower their average purchase price through DCA.

Bitcoin has had a great year, but the mining stocks have seen a much better one. Some of them are down almost 95%; Bitcoin public mining stocks have risen to new heights, some more than quadrupling the growth of Bitcoin this year.