a16z Crypto has responded positively to the UK Treasury’s Future Financial Services Regulatory Regime for Cryptoassets consultation.
The global VC issued a 27-page letter which broadly applauded the UK’s plan to work closely with industry to formulate a “proportionate and focused, agile and flexible” regime.
Head of policy Brian Quintenz, former commissioner at the Commodity Futures Trading Commission in the US, tweeted that the UK’s suggested approach “looks to ensure similar regulatory outcomes for crypto and doesn’t assume that superficially related activities automatically create the same legacy financial risks and require the exact same regulatory rules”.
Praising the Treasury’s view that ‘risk taking is a desirable part of the cycle of innovation and we wish to manage, not stifle, this’, he wrote: “Our consultation response agrees with the need to regulate centralised service providers, where legacy risks, such as conflicts of interest, asymmetric information, and acceptance of or custody over customer funds, are present.
“Web3’s founders, developers, and builders are taking note and are eager for such a regime.”
He also spoke of the “importance of recognizing how decentralised systems, such as blockchain protocols or smart contract protocols, are different than centralised issuers of crypto products”, adding: “Rules which allow for protocols to achieve decentralisation through free token distributions or for conducting network-securing activity will appeal to developers who embrace the benefits of decentralised systems.
“Ultimately, it will be those systems that will allow individuals to truly own the value of their network contributions.”
He concluded: “Enacting a well-tailored regulatory framework that embraces and encourages decentralisation will all but ensure the realisation of the UK becoming the Web3 centre.”
Cryptocurrency shorts
Lawyers and consulting firms guiding FTX through its bankruptcy proceedings have billed the collapsed cryptocurrency exchange $103 million over the first quarter. Sullivan & Cromwell, Alvarez & Marshal, AlixPartners, Quinn Emmanuel Urquhart & Sullivan and Landis Rath & Cobb charged $34.2m in January, $32.5m in February and $36.4m in March, according to court filings.
Mike Seavers, former executive VP at Epic Games – where he led development teams behind Unreal Engine, Fortnite and the Epic Games Store – will join Yuga Labs later this month as CTO. Co-founder Kerem Atalay, the current CTO, will remain with the NFT company as a close strategic advisor.
Coinbase has launched an international exchange allowing institutional traders outside the United States to trade Bitcoin and Ethereum perpetual futures without the need for a fiat on-ramp.
The ticketing subsidiary of US publisher Sports Illustrated has launched a blockchain-powered ticketing solution, ‘Box Office’, on Polygon. SI Tickets and development partner ConsenSys has included a ‘Super Ticket’ allowing hosts to remain connected to attendees through highlights, collectibles, exclusive offers and loyalty benefits via NFT technology.
Hard wallet solutions provider Tangem has raised $8m in funding, led by Shima Capital, to become a self-custodial Web3 storage services provider.
Former Coinbase CTO Balaji Srinivasan has paid out his bet with Twitter user James Medlock that Bitcoin would reach $1m within 90 days – 45 days early. He will pay ‘hyperinflation doubter’ Medlock $500,000, donate $500,000 to Bitcoin Core developers and give an additional $500,000 to non-profit charity Give Directly.
I just burned a million to tell you they’re printing trillions. pic.twitter.com/pX5622rjUO
— Balaji (@balajis) May 2, 2023
Crypto prices
The overall market cap of the 23,700 coins is at $1.17 trillion at the time of writing (7am UK), a 1% increase in the last 24 hours, with Bitcoin trading around $28,500.
For round-ups of recent cryptocurrency news developments, click here.
For valuations of the top 100 coins by market cap in US dollars, plus 24-hour price change, see below.