The Crypto Roundup: 11 August 2023 | CryptoCompare.com

Cryptocurrency exchange Bittrex has agreed to a settlement with the U.S. Securities and Exchange Commission (SEC) over allegations that it offered U.S. investors access to unregistered securities.

Circle, the firm that manages the USDC stablecoin, is relying on $1 billion in reserves to handle growing competition from non-crypto firms like payments giant PayPal, which recently announced the launch of its own stablecoin PYUSD.

The Digital Currency Group (DCG) has filed a motion seeking to dismiss a lawsuit from cryptocurrency exchange Gemini, founded by Cameron and Tyler Winklevoss, against the firm and its founder Barry Silbert.

Top stories in the Crypto Roundup today:

• Bittrex Settles SEC Charges for $24 Million
• Circle’s $1 Billion War Chest to Defend Against Competitors
• DCG Asks Courts to Dismiss Gemini’s Lawsuit
• Crypto Market Movers – XDC, XLM, MKR

Bittrex Settles SEC Charges for $24 Million

Cryptocurrency exchange Bittrex has agreed to a settlement with the U.S. Securities and Exchange Commission (SEC) over allegations that it offered U.S. investors access to unregistered securities.

The settlement requires the exchange to pay a fine of $24 million, a move that follows closely on the heels of its filing for bankruptcy in May. Earlier this year, the SEC took legal action against Bittrex, contending that the crypto platform had effectively operated as a securities exchange, broker, and clearinghouse, without obtaining the necessary registrations from the regulator.

The SEC has similarly brought charges against leading cryptocurrency exchange Binance.US and Coinbase, and further alleged that Bittrex had advised crypto token issuers to retract or modify public statements, specifically those that might insinuate potential violations of securities law.

As part of the settlement, Bittrex won’t admit nor deny the allegations, and cannot make public statements that may suggest the SEC’s allegations lacked merit.

Dissecting the $24 million fine, the largest component is the disgorgement at $14.4 million, accompanied by a $4 million prejudgment interest and a civil penalty totaling $5.6 million. Bittrex has 90 days after its liquidation plan is effective to pay the SEC.

Circle’s $1 Billion War Chest to Defend Against Competitors

Circle, the firm that manages the USDC stablecoin, is relying on $1 billion in reserves to handle growing competition from non-crypto firms like payments giant PayPal, which recently announced the launch of its own stablecoin PYUSD.

USDC has seen its circulating supply decrease from $45 billion to $26 billion this year, while leading stablecoin issuer Tether has seen its USDT stablecoin grow. Circle’s CEO, Jeremy Allaire, attributed some of the drop to Binance’s move to stop using USDC in a bid to support its stablecoin.

The stablecoin sector has seen dwindling investor confidence following a market downturn that was further exacerbated by industry controversies. The total market capitalization of the stablecoin sector has now been dropping for 16 consecutive months, to hit its lowest level since August 2021, according to CCData’s latest Stablecoins & CBDCs report.

Circle’s USDC was further impacted by an announcement in March that revealed the firm had $3.3 billion in the collapsed Silicon Valley Bank, which temporarily saw the token lose its peg. The firm’s CEO has nevertheless remained confident, highlighting USDC is consistently generating revenue.

Despite the challenges, Circle’s finances remain strong, with revenues surpassing last year’s figures and over $1 billion in cash by June. Allaire believes that stablecoins will become a key digital currency in the future and welcomes competition, as it brings more attention to the field.

DCG Asks Courts to Dismiss Gemini’s Lawsuit

The Digital Currency Group (DCG) has filed a motion seeking to dismiss a lawsuit from cryptocurrency exchange Gemini, founded by Cameron and Tyler Winklevoss, against the firm and its founder Barry Silbert.

Gemini’s lawsuit, initiated in July, has been characterized by DCG as a mere extension of a “years-long Twitter-based character assassination.” Gemini took legal action against Silbert and DCG over outstanding payments purportedly owed to Gemini clients by DCG’s subsidiary, Genesis.

Before the 2022 credit crisis that swept the cryptocurrency space, Genesis and Gemini had a business partnership, which saw Gemini allow Genesis to leverage its “Earn” client funds in return for yield.

The collaboration generated yield for Gemini’s clients in the program, but ended when Genesis halted withdrawals and stopped processing redemption requests in the wake of FTX’s collapse.

Around $1.2 billion of Gemini’s client money is stuck due to Genesis seeking bankruptcy protection. While Gemini believes DCG’s founder, Barry Silbert, purposely misled them about Genesis’s financial health, DCG denies this and is moving to dismiss Gemini’s lawsuit, suggesting it’s a “PR campaign wrapped in a lawsuit.”

Crypto Market Movers – XDC, XLM, MKR

Several tokens are leading the charge in the last 7-day period. Some of these are well-known cryptocurrencies with more liquid trading pairs, so we’ll be focusing on these over low-cap cryptos that may have higher percentage changes.

Xinfin Network (XDC) – XinFin Network (XDC) is an enterprise-ready hybrid blockchain technology company focused on international trade and finance. It operates on the XDC protocol, which supports smart contracts, offers high transaction throughput (2000TPS), fast transaction times (2 seconds), and implements KYC for Masternodes (Validator Nodes). The XinFin network aims to create a highly scalable, secure, permissioned, and commercially viable blockchain network.

Maker (MKR) – MakerDAO is an open-source project on the Ethereum blockchain and a Decentralized Autonomous Organization created in 2014. The project is managed by people around the world who hold its governance token, MKR, who manage the Maker Protocol and the financial risks of DAI to ensure its stability, transparency, and efficiency.

Stellar (XLM) – Stellar is an open-source, decentralized blockchain network designed to facilitate the transfer of money and other assets between people and institutions across the world. It was created to enable fast and efficient cross-border transactions, with low fees and without the need for traditional financial intermediaries. The network’s native cryptocurrency is called the lumen (XLM), which serves as a digital asset for denominating network requirements.

State of the Crypto by Top Tier Exchange Volume

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