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Crypto may swing election in battleground states — law professor

According to a 2024 analysis by the Federal Reserve, 7% of adults in the United States currently hold or have used crypto in the past.

As the 2024 election season commences in the United States, the crypto industry and broader community have mobilized to support perceived pro-crypto candidates. Dr. Tonya M. Evans—a tenured law professor at Pennsylvania State University—sat down with Cointelegraph to explain the impact of crypto on the upcoming elections.

According to Dr. Evans, the upcoming presidential race, in particular, will be decided by razor-thin margins—where many issues can potentially swing the vote, including crypto.

However, the law professor also noted: “If you’re a multi-issue voter who happens to also be pro-crypto, you’re far less likely to be swayed by either candidate on this point alone.”

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North Carolina resists the CBDC tide with new payments ban

A new law in North Carolina seeks to ban CBDCs in the state, but there are questions about whether the new legislation is even legal. 

Privacy and sovereignty concerns over central bank digital currencies (CBDCs) mean that a digital dollar won’t be coming to the US state of North Carolina anytime soon.

On Sept. 9, the state’s Senate overrode the governor’s veto and passed into law a bill that forbids the state from accepting CBDCs as a form of payment.

The bill also prohibits the United States Federal Reserve from conducting any “testing” of a digital dollar in North Carolina.

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Digital Chamber calls for Congress to address SEC actions against NFTs

The CEO of OpenSea reported receiving a Wells notice from the SEC in August, suggesting that the commission could be taking a new regulatory approach to NFTs.

The crypto and blockchain advocacy organization Digital Chamber is calling on the United States Congress to enact legislation “to clearly define certain NFTs [non-fungible tokens] as consumer products and exempt them from federal securities laws” in response to potential enforcement actions against the OpenSea platform.

In a Sept. 10 notice, Digital Chamber described the US Securities and Exchange Commission (SEC) Wells notice against OpenSea as an “overreach into the digital asset industry.” Though the regulator had not filed a lawsuit against the NFT platform at the time of publication, a Wells notice suggested that the SEC was considering an enforcement action.

Source: Digital Chamber

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Elon Musk’s ‘DOGE’ gov meme sends political speculation soaring

Musk previously signaled he was ready and willing to serve if Donald Trump is elected president of the United States.

Elon Musk may be floating the idea of establishing himself as the head of a new government institution if former United States president Donald Trump claims the Oval Office again in the November 2024 election. 

True to form, Musk teased the idea in a meme on the X social media platform featuring a double-entendre referencing both cryptocurrency and politics.

Source: Elon Musk

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VanEck to shutter Ethereum futures ETF

Spot Ethereum ETFs are stealing the show and killing demand for futures-based crypto ETFs.

Asset manager VanEck is shuttering its futures-based Ether (ETH) exchange-traded fund, citing insufficient demand as spot cryptocurrency ETFs dominate inflows, according to a Sept. 6 announcement.

VanEck chose to close the fund due to factors “including performance, liquidity, assets under management, and investor interest,” it said. 

Shares of VanEck Ethereum Strategy ETF (EFUT) will stop trading on Sept. 16 and fund assets will be liquidated and returned to investors on or around Sept. 23, according to the announcement.

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US prosecutors allegedly link ex-FTX exec to Chinese bribery scandal

Notes from a 2023 conference call between Assistant US Attorneys revealed allegations against Ryan Salame tied to Alameda Research’s bribery scheme in China. 

United States prosecutors in the case against Ryan Salame have allegedly linked the former FTX Digital Markets co-CEO to the names of Thai prostitutes as part of efforts to unfreeze accounts tied to FTX and Alameda Research.

In a Sept. 5 filing in the US District Court for the Southern District of New York, US Attorneys filed a memorandum opposing Salame’s motion to vacate his guilty plea as part of charges involving campaign finance violations. The former FTX co-CEO had already withdrawn his petition to vacate the plea on Aug. 29, but Judge Lewis Kaplan said both parties would appear on Sept. 12 to address the matter at a hearing. 

The prosecutors’ motion did not mince words, calling Salame’s petition “shameless and self-serving” and “procedurally defective and factually and legally meritless.” He initially filed the petition after authorities suggested they would pursue an investigation into his partner, Michelle Bond. 

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Coinbase leads crypto lobby surge with 3,475% spending jump since 2017

Crypto lobby spending in the US has surged 1,386% since 2017, including a huge jump in the last two years.

Crypto lobbying has skyrocketed over the past few years, with a handful of key companies driving advocacy efforts to influence legislators in the United States.

Coinbase, for instance, has increased its lobbying expenditure by 3,475% over the past seven years, according to a Social Capital Markets report on Sept. 5. The crypto exchange’s spend increased from $80,000 in 2017 to $2.86 million in 2023.

Another crypto firm pouring large sums of money into influencing legislators was Ripple Labs. Over the same period, the firm saw a 1,780% increase in lobbying costs, from merely $50,000 to $940,000 in 2023.

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Ripple and SEC agree to stay $125M judgment, hinting at appeal

Though the SEC may choose not to appeal the Aug. 7 decision, Ripple’s lawyers requested that 111% of the monetary judgment be placed into a bank account to obtain a stay.

The legal team defending Ripple Labs against a case filed by the United States Securities and Exchange Commission (SEC) has requested to stay the monetary portion of an Aug. 7 judgment requiring the firm to pay $125 million.

In a Sept. 4 filing in the US District Court for the Southern District of New York, Ripple’s lawyers said the SEC had agreed to a request to delay payment of the judgment after Sept. 6. The legal team proposed that Ripple place 111% of the judgment amount — roughly $139 million — into a bank account until 30 days “after the time to appeal expires or the resolution of any appeal.”

Source: SDNY

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Looser Fed policy, global macro trends point to bullish outlook for Bitcoin — Analysts

Bitcoin may be decoupling from concerns about a US recession and aligning more closely with the US dollar’s performance and signs of easing monetary policy, according to ETC Group. 

The bearish environment that dominated the crypto markets in early August may have set the conditions for a “tactical bottom for Bitcoin,” supported by expectations of looser monetary policy in the United States.

According to an analysis from asset manager ETC Group, sentiment around crypto assets dropped in August to its lowest point since the FTX collapse in November 2022, driven by rising concerns over a recession in the US and a sudden appreciation of the Japanese yen.

Recession fears, however, quickly evolved into expectations of a reversal in the Federal Reserve’s monetary policy. If the Fed begins easing its policy, meaning lowering interest rates or injecting more money into the economy, it could create a more favorable environment for Bitcoin (BTC), as a looser monetary policy generally encourages more risk-taking and investment in assets like cryptocurrencies.

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Crypto dominates biggest 2024 ETF launches: The ETF Store

Crypto exchange-traded funds make up 13 of the top 25 fund launches, the investment adviser said.

Cryptocurrency exchange-traded funds (ETFs) accounted for 13 of the 25 largest ETF launches in 2024 by year-to-date inflows, according to a post on the X platform by Nate Geraci, president of The ETF Store, an investment adviser specializing in ETFs. 

Of the approximately 400 new ETFs launched in 2024, the four biggest launches by inflows have all been spot Bitcoin (BTC) ETFs, Geraci said. 

BlackRock’s iShares Bitcoin Trust (IBIT) tops the charts, with almost $21 billion in inflows to date. It is followed by Fidelity Wise Origin Bitcoin Fund (FBTC), with nearly $10 billion in net inflows, and ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF Trust (BITB), each with roughly $2 billion in net inflows, according to the post. 

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