PayPal, the American fintech giant, has unveiled a new stablecoin named PayPal USD (PYUSD). Paxos Trust Co. issues this stablecoin, which is fully backed by US dollar deposits and similar cash equivalents. This move comes as the regulatory environment for stablecoins in the US is evolving towards more clarity. PYUSD is poised to become a mode of payment for various transactions and will be transferable between PayPal and Venmo.
Controversy Surrounds MakerDAO’s Spark Protocol
MakerDAO’s recently launched lending platform, Spark Protocol, has ignited controversy by blocking VPN users from accessing its website. This decision, which aims to restrict US users from accessing the platform, has drawn criticism for imposing a blanket ban on VPNs globally. The move is connected to a May 9 update to the platform’s terms of service, warning against VPN usage to bypass the ban.
Today, @coinbase filed our brief asking the Court to dismiss the SEC’s case against us. Our core argument is simple — we do not offer "investment contracts" as that term has been construed by decades of Supreme Court and other binding precedent. 1/3 https://t.co/r2EkDgkEuc
— paulgrewal.eth (@iampaulgrewal) August 4, 2023
Coinbase’s chief legal officer has stated that the US Securities and Exchange Commission (SEC) exceeded its jurisdiction in suing the exchange. Coinbase argues that the SEC “violated due process” and strayed from its previous interpretations of securities laws, citing the SEC v. Ripple case. Despite these legal challenges, Coinbase reported better-than-expected second-quarter revenues and plans to seek dismissal of the lawsuit.
Decline in Canadian Crypto Ownership Amid Regulations
A Bank of Canada study revealed a decline in cryptocurrency ownership in Canada due to unfavorable market conditions and regulations. Bitcoin ownership dropped to 9% by August 2022, while other cryptocurrencies did not witness significant adoption. Investment remains the primary motivation for Canadians interested in Bitcoin, and most acquire their holdings through mobile and web apps.
I rarely get as disgusted as I am right now with MakerDAO's Spark Protocol.
It's one thing to block US residents.
It's a whole other thing to block anyone in the entire world who is using a VPN for privacy.
This isn't just govt cuckery.
This is an actual war on privacy. pic.twitter.com/dUbsMeVzbZ
— Chris Blec (@ChrisBlec) August 6, 2023
Coinbase’s Legal Moves and Revenue
Coinbase intends to file an order seeking the dismissal of the SEC lawsuit after expressing confidence in winning the case. The exchange reported $663 million in net revenue for Q2 2023, with non-trading revenue surpassing trading revenue. Coinbase’s CEO emphasized a focus on non-trading aspects, including scalability, regulatory clarity, and enhancing crypto utility in the coming years.