🎯 Aave vs. Maker: 'Creative Accounting' Dispute
In today’s edition: 💰 Lido to spend $200,000 to engage top law firm, 🕵️♂️ 💼 Polychain scandal: secret deals, and more!
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Why the SEC Lawsuit Against Consensys May Hold Little Ground
Past rulings, such as the Coinbase and Binance cases, undermine the allegations made by Gary Gensler’s agency, the U.S. Securities Exchange Commission (SEC), in its lawsuit against Consensys.
In this episode, crypto lawyers Kayvan Sadeghi and Sam Enzer delve into the SEC’s lawsuit against Consensys, which focuses on MetaMask’s swaps and staking services, and explore the implications of the SEC’s stance on MetaMask acting as a broker-dealer, and the classification of its staking product as a security.
They discuss how recent rulings on Coinbase and Binance challenge the SEC’s claims, and whether differing judicial opinions could lead to the Supreme Court.
Also, they talk about the potential impact of the Supreme Court striking down Chevron deference for crypto regulation.
Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Overcast, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform.
What’s Poppin’?
by Sage Young and Sam Sriram
Aave DAO Delegate Takes Aim at MakerDAO Over Spark Profit Sharing Deal
The Aave Chan Initiative’s Marc Zeller claims that “creative accounting” by MakerDAO puts the actual revenue share from Spark Lend much closer to 1% of profit, as opposed to the agreed upon 10%.
Lido Governance Authorizes $200,000 To Engage Law Firm in Dismissing Class-Action Lawsuit
Lido DAO voted to fund Dolphin CL, LLC to engage legal counsel, which is expected to be Brown Rudnick’s Stephen Palley, in addressing a class-action complaint that alleges LDO is an unregistered security. Meanwhile, SEC claims stETH is also an unregistered security.
Daily Bits… ✍️✍️✍️
💸 Polychain accused ex-general partner Niraj Pant of making a secret deal with its portfolio company Eclipse Labs, breaking the fund's policies by accepting adviser tokens from portfolio companies.
🔍 Elliptic reports that Cambodia-based marketplace Huione Guarantee facilitated at least $11 billion in cryptocurrency flows, allegedly linked to money laundering and other crimes.
⚖️ Julian Assange's family is raising funds via the Bitcoin network to cover his travel and recovery expenses, following his plea deal and commuted sentence. They are using BTCPay for decentralized and censorship-resistant donations.
🧩 The TON blockchain ecosystem will get a new layer 2 network called TON Applications Chain (TAC), leveraging Polygon’s technology to facilitate decentralized applications and improve interoperability.
⛓️ Former FTX executives Nishad Singh and Gary Wang, who pled guilty and cooperated with the government, are scheduled for sentencing in October and November respectively, for their roles in the company's collapse.
Today in Crypto Adoption...
💵 PayPal’s PYUSD stablecoin surpassed a market cap of $500 million, driven by its expansion to the Solana network and a significant increase in supply over the past month.
The $$$ Corner…
💼 Idle, an onchain credit and yield platform, closed $2.4 million strategic funding round led by RockawayX to further develop its DeFi infrastructure and tools.
💰 The hybrid layer 2 project BOB secured $1.6 million in funding led by Ledger Ventures to develop its protocol and support Bitcoin infrastructure and dapps.
What Do You Meme?
📈 Your Market Update 📉
BTC is up 2.4%, trading at $58,638
ETH is up 0.8%, trading at $3,105
BTC dominance: 51.1%
Crypto market cap: $2.26T
*All data as of today, 06:49 am ET. Source: CoinGecko
Recommended Reads
Katie Bier, chief legal officer at Paradigm, on SEC Commissioner Caroline Crenshaw’s re-confirmation
CoinDesk: MEV Has Spread to Bitcoin, in Subtler Forms Than on Ethereum
Protos: Linea protocol ZeroLend is a ‘copy-paste’ Aave fork, linking to original’s docs
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