• Regulatory clarity has become a buzz phrase in the crypto industry, with companies wishing to offer value-creating products in a compliant manner.
• The past year of enforcement actions has shown that financial regulators are comfortable using existing rules to investigate and prosecute crime in crypto.
• Gareth Rhodes, a managing director at Pacific Street, formerly served as deputy superintendent and special counsel at the New York State Department of Financial Services, has offered his thoughts on the issue.

Regulatory clarity has become increasingly important in the cryptocurrency industry, with companies such as Nexo, Binance, Coinbase and Circle all expressing a desire to be able to offer value-creating products in a compliant manner. This is something that is not only important for the companies themselves, but also for the users of the products, who want to ensure that their investments are protected.

The past year of enforcement actions from financial regulators has demonstrated that the authorities are willing to use existing rules to investigate and prosecute criminal activity in the crypto space. This has included the U.S. Securities and Exchange Commission (SEC) taking legal action against a number of companies, such as the aforementioned Nexo, for alleged securities violations.

Gareth Rhodes, a managing director at Pacific Street, has offered his thoughts on the matter. Mr. Rhodes formerly served as deputy superintendent and special counsel at the New York State Department of Financial Services, and has a deep understanding of the regulations in the industry. He believes that while there are still some grey areas, the financial watchdogs have made it clear that they are willing to enforce the existing rules.

Mr. Rhodes also believes that the authorities are open to the development of new regulations to govern the crypto space, as long as they are designed to protect consumers and ensure that financial crime is prevented. He also believes that it is important for the industry to engage with regulators, so that both parties can work together to create a secure and stable environment for the industry.

Ultimately, the crypto industry is still in its infancy and regulatory clarity is something that is still evolving. However, with the enforcement actions of the past year, it is clear that the financial watchdogs have made their stance on the issue very clear. Companies must continue to work with regulators to ensure that they are compliant with the rules, and that they are offering secure and value-creating products to their users.

1. Genesis Global Holdco LLC, the holding company of crypto lender Genesis Global Capital, has filed for Chapter 11 bankruptcy protection.
2. Wilk Auslander LLP Partner Eric Snyder discussed the legal and industry implications of the filing.
3. It is currently unknown how much of a “haircut” Genesis’ creditors could suffer.

Genesis Global Holdco LLC, the holding company of crypto lender Genesis Global Capital, recently filed for Chapter 11 bankruptcy protection, creating uncertainty and implications for both the legal and industry sectors. Wilk Auslander LLP Partner Eric Snyder recently discussed these implications on CoinDesk TV’s “First Mover”, noting that it is currently unknown how much of a “haircut” Genesis’ creditors could suffer.

The filing of bankruptcy protection for three of Genesis’ crypto lending businesses has creditors worried about the potential losses they may face. Snyder noted that it may take a long time to figure out the assets and liabilities of Genesis, so creditors may have to wait to find out just how much they may lose. He also weighed in on Gemini CEO Cameron Winklevoss threatening to sue DCG CEO Barry Silbert over the repayment of a $900 million loan. DCG is the parent company of CoinDesk and Genesis.

Snyder explained that this case is unique in the sense that it is the first to involve a crypto lending business, and it has the potential to set a precedent for future cases involving cryptocurrency. He added that Chapter 11 bankruptcy protection offers Genesis an opportunity to reorganize its debt and assets in a way that may be more beneficial to the company and its creditors.

When it comes to cryptocurrency, the legal implications are often much more complicated than traditional debt and asset cases. Snyder noted that this case will likely require a complex analysis of the many different types of assets and debts that Genesis is dealing with, including cryptocurrency and fiat currency.

Overall, this case will be a learning experience for lawyers, financial institutions and creditors dealing with cryptocurrency. It will be interesting to see how it plays out, and if it does set a precedent for other cases involving cryptocurrency. As for Genesis and its creditors, it remains to be seen if the company can reorganize its debt and assets in a way that is beneficial for all parties involved.

1. Bitcoin (BTC) posted its biggest one-day return in two months, shooting up 5% to surpass the $19,000 level.
2. Security firms such as OpenZeppelin say blockchain bridges can benefit from security features built during the ongoing bear market can help prevent the huge attacks of 2022.
3. The U.S. government’s latest consumer price index (CPI) reading for December also helped to fuel the rally.

Bitcoin Prices Soar to New Heights

Cryptocurrency investors breathed a collective sigh of relief on Thursday as Bitcoin (BTC) posted its biggest one-day return in two months, shooting up 5% to surpass the $19,000 level. The impressive surge was fueled by a combination of factors, including the U.S. government’s latest consumer price index (CPI) reading for December, which helped to boost investor confidence.

The news of Bitcoin’s rally sent ripples throughout the crypto markets, helping to lift other digital assets such as Ethereum (ETH), which rose 2.4% to $1,417. Meanwhile, the S&P 500 and gold posted modest gains of 0.3% and 1.3%, respectively.

Security firms are also predicting that blockchain bridges can avoid some of the carnage of 2022 this year by security features built during the bear market. According to OpenZeppelin, a leading security firm, the use of blockchain bridges can help provide a more secure environment for digital assets. OpenZeppelin claims that the security features built during the bear market will help prevent the huge attacks that have been seen in the past.

Overall, the impressive rally of Bitcoin on Thursday shows that the cryptocurrency is still a major player in the markets. Despite its volatile nature, Bitcoin is still seen by many as a safe haven asset, and its impressive rally shows that investors still have faith in the digital asset. With more and more institutional investors entering the space, the future for Bitcoin looks bright.

It remains to be seen how the crypto markets will develop in the coming weeks and months, but one thing is clear – Bitcoin is still here to stay. As the markets continue to mature, it is likely that we will continue to see more impressive rallies, and the crypto space will be a key factor in the global economy for years to come.

Bulletpoints:
• Bitcoin had its best day in two months after the Consumer Price Index (CPI) report showed inflation slowdown.
• Sam Bankman-Fried, former chief of FTX, denied stashing away billions of dollars and gave his take on what happened to his bankrupt crypto exchange.
• Bankman-Fried is now free on bail and has been charged with conspiracy to commit fraud.

Bitcoin had its best day in two months on Thursday, as the Consumer Price Index (CPI) report showed a slowdown in inflation and extended the digital-asset rally taking place this week.

The surge in Bitcoin was also fueled by the news that Blockchain.com, a major cryptocurrency exchange, had cut staff, likely due to the current market downturn.

Sam Bankman-Fried, the disgraced former chief of FTX, a popular crypto exchange, denied stashing away billions of dollars and gave his take on what happened to his bankrupt crypto exchange in a lengthy post on Substack published Thursday.

Bankman-Fried denied stealing funds and claimed FTX and sister company Alameda Research collapsed because of the crypto market meltdown and inadequate hedging on Alameda’s part. He also said he “hasn’t run Alameda for the last few years.”

The former chief of FTX faces numerous federal charges including conspiracy to commit fraud, and is now free on bail awaiting his trial. He has maintained his innocence, and in his post on Substack, he said that “Alameda lost money due to a market crash it was not adequately hedged for.”

With Bitcoin prices up, investors and traders showed renewed confidence in the digital asset. The surge in Bitcoin prices and Bankman-Fried’s post on Substack were two of the major headlines driving the crypto markets today.