FameEX Morning Crypto News Recap | May 12, 2023

US House Financial Committee Criticizes SEC's Custody Proposal
The chair of the US House Financial Services Committee, along with six subcommittee chairs, has penned a letter to SEC Secretary Vanessa Countryman, raising apprehensions regarding the proposed advisory clients custody rule. Their letter contributes to the increasing number of objections from prominent individuals within the cryptocurrency industry.

MetaMask Introduces PayPal Integration for ETH Purchases by US Users
MetaMask, a leading crypto wallet and DApp provider, now allows users in the US to purchase Ether using PayPal, offering increased convenience and accessibility. As the first Web3 wallet to offer this feature, MetaMask strengthens its market position. Users now have more options to easily buy and manage Ether through the MetaMask platform, creating new opportunities in the crypto space.

Exploring Signature Bank Collapse: GAO Highlights Digital Asset Exposure
The US Government Accountability Office (GAO) conducted a preliminary review of Silicon Valley Bank and Signature Bank, highlighting their exposure to cryptocurrency deposits. The GAO attributed the collapse of Signature Bank to inadequate governance and risk management practices, with digital assets being mentioned as a potential contributing factor due to their involvement in the crypto industry.

BIS Releases In-Depth Report on Offline CBDC Payments
The Bank for International Settlements (BIS) is currently examining the feasibility of utilizing central bank digital currencies (CBDCs) for offline transactions. In a recent development, the BIS Innovation Hub Nordic Centre released a comprehensive handbook that delves into the functionalities and potential of offline CBDC payments. The primary objective of this publication is to offer valuable insights and knowledge regarding the utilization of CBDCs in offline transactions.

EU's Revised Draft AI Act Imposes Ban on Public Facial Recognition
EU lawmakers have advanced AI legislation with committee approval. The European Parliament has voted to prohibit facial recognition in public spaces and predictive policing tools in the forthcoming AI Act. This step effectively addresses privacy concerns and signifies a substantial stride towards promoting responsible AI usage within the EU.

SEC Issues Another Subpoena to Marathon Digital, Bitcoin Mining Company
Marathon Digital, a Bitcoin mining firm, disclosed in its quarterly report that it was served a subpoena by the SEC on April 10. The subpoena is related to transactions involving affiliated entities during the development of a facility in Montana. Marathon Digital acknowledges the SEC's probe into potential breaches of federal securities law and affirms its commitment to collaborating with the regulatory authority.

Bitcoin Network Eases Congestion, Onchain Fees Experience 90% Drop
On May 7, 2023, the Bitcoin network faced a major bottleneck with 500,000 unconfirmed transactions. However, the situation has improved, resulting in a significant decrease in onchain fees, now below $5. Presently, there are approximately 300,000 unconfirmed transactions remaining, and the backlog requires 185 blocks to be cleared.

US Default: SEC Chair Cautions Investors and Markets of Potential "Significant" and "Lasting Effects"
SEC Chair Gary Gensler has cautioned about the potential outcomes of a U.S. Treasury default on its debt obligations. He stressed the notable and enduring effects this default would have on investors, issuers, and markets. Gensler specifically pointed out the impact already evident in the pricing and liquidity of short-dated Treasury bills, while also emphasizing the continued vigilance in monitoring for any additional disturbances.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.