Hester Peirce of the United States Securities and Exchange Commission is well-known as a regulator who has shown consistent support for digital assets, so much so that her moniker “crypto mom” has become unshakeable.
In a new interview with the Thinking Crypto podcast, Peirce reflected on the United States’ regulatory approach to the asset class to date, arguing that, “I think we have missed the boat a bit on crypto. And I think a big piece of that comes from the failure to provide clarity in our rules.” She said that contrary to the persistent narrative that crypto is somehow indissociable from illegality and a desire to outwit the system, her own experience has been that industry participants want to comply with the rules, but have often struggled to do so without adequate guidance:
“Am I optimistic that we’re going to finally get to the point where we do provide more clarity? I think we have a good chance. […] We’re likely about to get a new chairman, Gary Gensler, who had his hearing in front of the Senate. That’s one step in the process. Then he has to get voted on. And if he does get confirmed and come to the SEC, he brings with them really deep knowledge of this asset class.”
The Senate Banking Committee has now voted 14-10 in favor of Gensler’s nomination being sent to the Senate floor, after two Republicans joined ranks with 12 Democrats to support the choice.
Peirce underscored Gensler’s recent experience teaching courses on blockchain at the Massachusetts Institute of Technology, noting that he’s been “surrounded by people who are enthusiastic about this technology.” In her view, Gensler understands the positive potential of the industry, as well as the need for more clarity in order to facilitate its development. Not having to convince him of these things will be “very helpful,” she said.
Peirce did note, however, that while the chairman does “set the agenda for the agency” and, in the case of Gensler, can be expected to support a better rulemaking approach to crypto, a considerable degree of day-to-day continuity at the SEC in its interaction with the crypto industry will be assured regardless of who’s chairman:
“The intent of having a five member commission is to have continuity over time, so that you don’t see massive swings in policy […] so it is important for people to know that the work of the commission […] [is] not going to change dramatically when a new chairman. […] The regulatory agenda may change quite a bit, but the work of the commission, [its] day-to-day work, […] will continue on regardless of who’s chairman.”
On this note of cautious optimism, Peirce also commented with good humor on her affectionate nickname in the U.S. crypto space, saying, “You know, I’ve always loved the idea of being a mom, and I’m not a mom in the real world. So being a mom in the virtual world is not a bad thing at all.” However, she quickly pushed back gently against any unwanted implications, commenting:
“I think it’s really important to say, no, regulators can’t be your parents. They’re not going to make your decisions for you and they’re not going to bail you out when you run into trouble.”
Peirce stressed that she’s “not an advocate for any particular asset class,” but rather “I’m an advocate for people having the ability to invest in the asset classes that they deem valuable for whatever their end objectives are.” Having first learned about Bitcoin (BTC) when she was at George Mason, she said she is a “big believer in the power of decentralization” and that cryptocurrency “fit really nicely into that.”
Crypto Newcomer Explodes After Abrupt Altcoin Listing on Binance
A small-cap altcoin is shooting into the stratosphere after earning support from the global crypto exchange Binance.
The governance token Tranchess (CHESS) officially began trading today.
News of the coin’s listing triggered a 185% rise in the price of the asset – from $2.77 to $7.91. Its value has since settled to $5.09 at time of publishing.
CHESS is listed in Binance’s Innovation Zone, a dedicated trading area where users can buy and sell newer tokens that are likely to have higher volatility and pose a higher risk to traders.
According to Binance Research,
“Tranchess is a yield-enhancing asset tracker with varied risk-return solutions on Binance Smart Chain (BSC), which consists of 3 tranche tokens (QUEEN, BISHOP, and ROOK) and its governance token CHESS.
The platform offers various features including a DEX (Tranchess Swap), money markets (Primary Market), staking, and network governance.”
Tranchess recently raised $1.5 million from Binance Labs, Three Arrows Capital, and other crypto venture firms.
Binance proposes a real-time token burning mechanism to boost BNB value
- Binance has proposed the BEP-95 aimed to burn a percentage of transaction fees as a deflationary measure.
- BEP-95 will occur alongside the quarterly token burn and well after the 100 million token supply is achieved.
Binance Smart Chain (BSC) is taking further steps to incorporate an additional deflationary mechanism to increase token valuation. As announced today, Binance (BNB) is introducing a new Binance Evolution Protocol (BEP) known as BEP-95. The BEP stands out from the network’s occasional token burns since it introduced a real-time burning mechanism.
According to Binance, a fixed portion of gas fees collected by validators in each block will be sent to the burn address. The ratio initially set at 10 percent, is adjustable according to changes proposed by the Binance community. BSC validators get to vote on community proposals, where voting power is based on staked BNB.
For a proposal to be reviewed by the validators, it has to receive a minimum deposit of 2,000 BNB (mainnet). All BNB is returned to holders after the finalization of the voting process. A proposal that wins is that which gathers 50 percent of the total voting power on the mainnet. Binance notes that voted-upon parameters are implemented immediately.
Details of Binance BEP-95 token burning mechanism
BEP-95 became relevant as it speeds up the BNB token burn, and makes the network increasingly decentralized. The BNB supply cap is about 168 million tokens and Binance intends to burn until 100 million tokens remain in circulation. This will take about 5-8 years to complete, according to Binance. The network’s most recent quarterly burn wiped out over 1 million tokens, worth about $639 million, from circulation.
However, the latest update from its blog now says the BEP-95 burn “will continue functioning” even after the above target is attained. With the burn, Binance expects the intrinsic value of the BNB token to increase in tandem with demand. The network notes that validators and delegators may receive fewer tokens from staking, but the “fiat-denominated value of their rewards may increase.” Moreover, BNB has multiple use cases that benefit all holders of the token.
Currently, BEP-95 is in the draft stage and the network is yet to give a specific date for its implementation.
Several blockchains use the crypto-burning mechanism to create token scarcity and a subsequent increase in token value. Ethereum, for instance, uses the EIP-1559 for this purpose.
BNB price action
BNB, the fourth-largest cryptocurrency by market cap, was trading at $494 at press time, according to our data. The token has gained 0.8 percent in the day, and 4.8 percent week-over-week. Similar to other digital assets, BNB has rallied fueled by the Bitcoin-led gains. Crypto investor and YouTuber Lark Davis expects “good things” for the BNB price following its launch of a $1B growth fund.
Google warns crypto investors of Youtube scams amidst high hacking
- Google warn crypto investors to be weary of Youtbe scams.
- Google says hackers impersonate crypto influencers to run scams on YouTube.
- YouTube, a hotbed for crypto scams.
Google’s Threat Analysis Group has warned crypto investors to beware of cryptocurrency scams on Youtube as phishing and impersonation on the video-sharing platform surges.
The Google group noted that a group of hackers is taking over Youtube, rebranding popular Youtube channels of well-known crypto or tech companies. “The channel name, profile picture, and content are all replaced with cryptocurrency branding to impersonate large tech or cryptocurrency exchange firms,” the group said, adding that hackers would live stream videos promising crypto giveaways in exchange for “initial contributions.”
According to the Google group, if these hackers don’t rebrand, they sell pages to the highest bidder depending on how many subscribers the channel has. They note that fake Youtube pages sell anywhere from $3 to $4,000.
The Google group notes that a group of hackers recruited in a Russian-speaking forum are actors behind the campaign.
Crypto investors should be warned as YouTube remains a hotbed for crypto scams
The video-sharing platform so many times has been used as a tool to dupe unsuspecting crypto investors. In December, American crypto exchange Gemini exposed two fake YouTube channels that were pretending to be from the exchange.
“These scam accounts are not our company. We have reported these accounts to YouTube,” Gemini tweeted.
Funny enough, it was not the first time Gemini was being impersonated on Youtube.
Crypto scams have been well perpetrated on the platform that the video giants ban crypto content on its platform. Authorities in the UK also warned young crypto investors with campaigns on Youtube and TikTok against being victims of crypto scams.
The cycle of crypto scams across all platforms is one that may never end. As much as crypto exists, crypto scams would remain a thing. The rise in crypto scams recently has been attributed to the surge in price and adoption of cryptos globally. It is safe to say that with crypto prices going up and more people, corporate organizations adopting cryptos, more scammers will be threatening the burgeoning space.