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  • The R Roundup: Gary Gensler FTX Reboot Referendum👨‍⚖️ - Issue #114

The R Roundup: Gary Gensler FTX Reboot Referendum👨‍⚖️ - Issue #114

Issue #114 : Web 3 News Headlines Of The Week

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The R Roundup
November 12, 2023

The R Roundup: Gary Gensler FTX Reboot Referendum 👨‍⚖️ - Issue #114

SEC Chair Gary Gensler, speaking at DC Fintech Week, cautiously entertained the idea of resurrecting the beleaguered crypto exchange FTX under new leadership, emphasizing the importance of adherence to the law and transparent disclosures.

Following FTX founder Sam Bankman-Fried's recent fraud conviction, the company has languished in bankruptcy for a year.

Gensler responded to reports that Tom Farley, former NYSE president, is among potential bidders for FTX's remnants, cautioning any future leadership to operate within legal boundaries. He urged potential buyers, including Farley, to prioritize investor trust, proper disclosures, and the avoidance of conflicts of interest.

The downfall of FTX stemmed from allegations that Bankman-Fried funneled customer funds to sister hedge fund Alameda Research, breaching regulatory norms. Gensler emphasized the need for separation between exchanges and proprietary trading entities, expressing concerns about the cozy relationship between FTX and Alameda.

Critically, Gensler underscored the strength of existing securities laws, asserting that crypto, when aligned with these laws, could thrive. He called for robust enforcement, noting that many global actors in the crypto space currently evade established regulations.

While addressing recent legal setbacks, such as the SEC's losses to Ripple and Grayscale, Gensler highlighted the agency's extensive involvement in crypto cases over the past six years. He maintained a firm stance on regulatory compliance, emphasizing the importance of companies adhering to the law for market integrity.

Near Foundation & Polygon Labs ZK Solution 🤝

The Near Foundation, the driving force behind the Near Protocol, has joined forces with Polygon Labs, a leading Ethereum scaling solution provider, to enhance cross-chain interoperability.

This strategic collaboration aims to bring the Near protocol closer to Ethereum, one of the largest blockchain networks, enabling WebAssembly (WASM) blockchains to leverage Ethereum's liquidity.

The partnership's focal point is the development of zkWASM, a zero-knowledge prover tailored for WebAssembly blockchains. This innovation empowers developers with heightened customizability, allowing them to choose from various provers during the building process.

Through an upcoming interoperability layer, chains will access shared liquidity in a unified ecosystem of CDK-deployed chains, covering alternative layer-1s, EVM layer-2s, and WASM chains.

The efficiency gains for Near validators are substantial, as the zkWASM eliminates the labor-intensive validation of shards. Instead, validators can generate zero-knowledge proofs, streamlining the process and enhancing scalability.

Zero-knowledge technology, heralded as a pivotal trend in the digital asset industry, obviates the need for users to routinely disclose personal information to online platforms.

Sandeep Nailwal, co-founder of Polygon, expressed pride in the collaboration, emphasizing the initiative's role in advancing ZK technology. The zkWASM prover, currently in active development, is slated for launch next year, promising further strides in blockchain innovation.

Binance Self-Custody Wallet🧘‍♂️

Binance, the prominent cryptocurrency exchange, has unveiled its inaugural self-custody Web3 wallet, ushering users into the realm of decentralized finance (DeFi).

Introduced at the Binance Blockchain Week conference in Istanbul, the innovative wallet operates seamlessly across 30 blockchain networks, positioning itself as a robust contender against established players like MetaMask and Trust Wallet.

CEO Changpeng 'CZ' Zhao emphasized the significance of Web3 wallets, portraying them as more than just repositories for digital assets. These wallets, according to Zhao, constitute a pivotal component of the Web3 framework, providing individuals with the autonomy of self-sovereign finance.

Binance's foray into Web3 wallet competition extends to Trust Wallet, acquired by Binance in 2018, where a futures market for TrustWallet's native token (TWT) recently caused a 7% dip in price. The new Web3 wallet leverages Trust Wallet's Wallet as a Service (WaaS) technology, unveiled concurrently. WaaS aims to expedite the development process for companies entering the Web3 wallet arena by offering comprehensive services like asset management and cross-chain transfers.

Users can create wallets and engage in DeFi activities such as staking, lending, and borrowing directly within the Binance app, where Know Your Customer (KYC) verification is a prerequisite for wallet access.

Addressing security concerns prevalent in the Web3 landscape, Binance adopts multi-party computation (MPC) to enhance user protection. MPC involves breaking a private key into three parts, known as key shares, with the wallet owner controlling two of the three key shares.

Zhao affirmed that Binance's foremost priority is to provide users with a secure and user-friendly environment for navigating the Web3 frontier.

JP Morgan Switches On Blockchain Tech🏦

JPMorgan is enhancing the capabilities of its blockchain-based settlement token, JPM Coin, by introducing programmable payments.

This new feature empowers users to automate payments based on predefined conditions, a departure from the previous method of setting standing orders tied to specific times. Clients can now program their accounts to trigger payments when certain criteria, such as covering overdue payments or margin calls, are met.

In response to the evolving landscape of 24x7 payment infrastructure and the increasing importance of dynamic responses to market volatility, JPMorgan sees this enhancement as a strategic move. The bank acknowledges the significance of enabling clients to adapt dynamically to events, aligning with the demands of a continuously evolving financial ecosystem.

Since its introduction in 2019, JPM Coin has served institutional clients seeking blockchain-based solutions for wholesale payments.

Recently surpassing $1 billion in daily transactions, the token continues to demonstrate its utility, albeit on a smaller scale compared to the massive $10 trillion daily volume the bank manages.

JPMorgan's foray into programmable payments reflects a commitment to innovation, providing clients with more flexible and responsive tools within the blockchain-powered financial landscape.

A Week At RR📆

Check out this week’s content published to stay up to date with the latest research trends & crypto talking points👇

RRUPDATES📍: The Kraken Layer 2 2️⃣

Kraken, the renowned cryptocurrency exchange operator, is gearing up to launch its very own Layer 2 blockchain network, mirroring the strategic move made by its competitor, Coinbase.

www.therroundup.com/p/rrupdates-kraken-layer-2-2

Yuga Labs’ “ApeFestHK” Was A Blinder, For The Wrong Reasons

In a surprising turn of events at the recent ApeFest event in Hong Kong, Yuga Labs, the creative powerhouse behind the Bored Ape Yacht Club NFT collection, acknowledged that ultraviolet lights were the likely culprit behind eye pain and skin irritation reported by around 20 attendees.

www.therroundup.com/p/rrupdates-yuga-labs-apefesthk-blinder-wrong-reasons

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