 The SEC believes that the U.S. government has jurisdiction over all Ethereum transactions. The claim is mentioned in a lawsuit the SEC filed against a crypto influencer, Ian Balina, for promoting an unregistered ICO. More: - The fine print of the court filing, paragraph 69, reads that the SEC is justified in suing the crypto influencer because it has jurisdiction over the entire Ethereum network.
- 45.85% of Ethereum nodes that validate the network are in the United States, far beyond Germany's second-place 19%. Because the nodes are more densely clustered in the U.S. than any other country, the SEC concluded that the transactions took place in the U.S. and are of American origin.
- University of Kentucky law professor Brian Fyre elaborates further: "Saying that enables [the SEC] to characterize doing business on the Ethereum blockchain as doing business on a U.S. securities exchange."
- If the SEC classifies activity on the Ethereum network to be the same as on a U.S. securities exchange, then the regulatory watchdog can claim jurisdiction over the Ethereum network.
- It's equivalent to saying, "This entire body of financial activity is within the scope of the stuff that we regulate, and therefore we're going to regulate all of it," Fyre said.
- The court is unlikely to weigh in on this issue as it carries no legal weight, according to Fyre, simply because it is unprecedented.
- A Twitter user wrote, "The SEC is trying to use this to set a precedent claiming that ALL OF CRYPTO is under SEC's jurisdiction. This is an unacceptable overstep that will have to be pushed back against aggressively."
- In related news, SEC Chairman Gary Gensler also said that the Ethereum merge could potentially classify it as a security under the Howey Test.
Bloomberg 
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 Speakers at a U.S. House Committee on Financial Services meeting unanimously agreed on the need for the U.S. to establish a CBDC to remain competitive with China. A CBDC (Central Bank Digital Currency) is a centralized and digital version of the fiat currency. More: - There is no confirmation to date whether a CBDC will be created in the U.S, but there is an indication that it might be on the horizon for the following reasons:
- Five speakers at a meeting of the U.S. House Committee on Financial Services voted in favor of a central bank digital currency and agreed that there is a "unanimous need" for it.
- Earlier this year, Federal Reserve Chair Jerome Powell said such an invention would be "a very important financial innovation" and is "something we need to explore as a country."
- The White House OSTP department also submitted design choices for 18 central bank digital currency systems.
- Republican Congressman French Hill of Arkansas stressed the need for the U.S. government to ensure that the dollar "remains the reserve currency of the world."
- Professor Carla Norrlof says that China is developing its own digital currency to compete with the U.S Dollar.
- The U.S proponents of a CBDC agree that to remain competitive, a U.S. CBDC is needed so that potential investors will choose to buy an American CBDC over the Chinese one.
- People's Bank of China started testing its CBDC in four cities and is now expanding to more provinces.
Zoom out: - Atlantic Council data shows that there are 105 countries, representing 95% of global GDP, exploring use cases of CBDC.
- 10 countries, including Jamaica and Nigeria, launched their CBDC last year.
- China is still in the pilot stage.
- Out of G7 countries, the U.S. and the U.K. are the furthest behind CBDC development. European Central Bank has partnered with Amazon and four other companies to develop a digital euro.
- G20 countries, including India, Japan, South Korea, and Russia, are either in the pilot or development stage of a CBDC.
Decrypt
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Voyager Digital filed for Chapter 11 bankruptcy in June and has received more buy-out offers from several exchanges, including Binance. Voyager fell victim to the fall of Terra network's UST stablecoin and related LUNA token collapse. More: - Binance and FTX are the top two bidders to acquire Voyager Digital.
- Bidding started on Sept. 13, 2022, in New York.
- Binance is offering $50M more than FTX.
- Results will be announced by Sept. 29, 2022.
- A few months ago, FTX's research arm, Alameda, had offered to buy all of Digital Voyager's assets and loans, except 3AC loans. The offer was rejected, calling it a "lowball offer."
- Voyager has also asked the court to "unwind" a $200M loan made to Alameda Research, which would give the company $160M back in pledged collateral.
- Both Binance and FTX are trying to buy the bankrupt Voyager, and in a court filing, both parties are requested to keep their crypto addresses confidential.
Crypto Potato
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 Michael Saylor announced that MicroStrategy purchased more Bitcoin for $6M. The company is still buying the dip at a much lower price; however, compared to its past purchases, this is a much smaller amount. More: - The co-founder of MicroStrategy remains bullish on Bitcoin's outlook as the value of the asset plummets.
- The firm has purchased another 301 Bitcoin at an average cost of $19,851 per coin.
- MicroStrategy now owns 130,000 Bitcoin, which is worth $4B.
- The latest purchase is far less than what MicroStrategy has bought in the past:
- From Feb.15 to April 5, the firm purchased $190M worth of Bitcoin.
- In January, the company bought $94.2M worth of Bitcoin.
- The smaller purchase may indicate that the company is strapped for cash and plans to sell up to $500M of its MSTR stock to fund "general corporate purposes, including the acquisition of Bitcoin," according to an SEC filing.
Crypto Briefing
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 FV Bank, the global digital bank, will allow customers to deposit stablecoin USDC. Account holders can make direct deposits of the Circle-backed stablecoin similar to traditional bank deposits. More: - FV bank, a crypto-friendly bank, is regulated by the Office of the Commissioner of Financial Institutions in Puerto Rico.
- The global digital bank launched a new service for its account holders.
- Customers can deposit USDC stablecoins in the bank's U.S Dollar accounts.
- USDC deposits will be immediately converted into U.S dollars.
- It will allow users to issue invoices to international clients in USDC.
- By doing so, users will have access to faster and cheaper transactions.
- The bank has chosen USDC stablecoin "due to its licensing, reserve attestations, and the real-time 1:1 liquidity," says FV Bank CEO Miles Paschini.
- FV Bank also plans to launch custody services later this year, which will enable customers to hold digital assets in a custodial account.
Coin Telegraph
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 India is finalizing its stance on crypto regulations to be sent for review to the global money laundering and terrorist financing watchdog, FATF. More: - Earlier this month, India's finance minister, Nirmala Sitharaman, met with Kristalina Georgieva, managing director of the International Monetary Fund (IMF), to discuss crypto regulations.
- Sitharaman requested that the IMF should take a lead role in regulating crypto and review the risk of money laundering and terrorist financing activities.
- She believes that all countries should collaborate to regulate digital assets.
- The IMF agrees that a "globally coordinated, synchronized approach to the issue" was needed.
- Georgieva wrote a statement on Twitter saying that the IMF "stands ready to work" with the Indian finance minister "on climate change, crypto regulation and other global challenges of our times."
- This week, the Indian government confirmed that it will submit its stance on crypto regulation to the Financial Action Task Force (FATF) for evaluation.
- FATF is a global money laundering and terrorist financing watchdog.
- The FATF report will highlight ways that India will combat money laundering and terrorist financing activities as it relates to digital assets.
- In October, the government will also review crypto wallet transfers and decide whether to ban wallet transfers:
- "We are awaiting the (FSB) report, which will be important from the crypto legislation perspective. We are also hoping it addresses how to deal with wallet transfers (of crypto)," says a senior government official.
- The report will consist of recommendations on whether to ban crypto transactions through wallets and cover the legality of cross-border transactions.
Bitcoin.com
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 |  | Gia Mattu is based in Calgary, Alberta. She is an entrepreneur with experience in climate technology, drones, AI, machine learning, and blockchain technology. When she's not working, she loves to hike the Canadian Rockies, try new cuisine, and travel. | | | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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