Here are some major developments in the crypto world over the past few days.
Two fresh legislative bills for the cryptocurrency sector were introduced in the US last week. One of the bills proposed by Senator Jack Reed seeks to tighten the Know Your Customer (KYC) norms, anti-money laundering, and sanctions rules for decentralized finance (DeFi).
As per the proposal, DeFi operations would be subject to the same regulations as “other financial companies, including centralised crypto trading platforms, casinos, and pawn shops.”
However, Coin Centre and the Blockchain Association, two significant crypto lobbying organisations, have criticized the legislation.
In separate statements, the former referred to the legislation as a “messy,” “unworkable,” and “unconstitutional” method of regulating DeFi. Coin Center’s worries were echoed by Kristin Smith, CEO of the Blockchain Association, who called the new laws unnecessary. Smith said federal agencies already have the resources to address this “relatively small but important issue.”
Another bill called “The Financial Innovation and Technology for the 21st Century Act” was introduced by Republican members of the House Agriculture and House Financial Services Committees.
The law establishes a procedure for digital assets that were initially regarded as securities to be sold as commodities, clarifies the Securities and Exchange Commission's (SEC) power, and grants the Commodity Futures Trading Commission (CFTC) jurisdiction over digital commodities.
Connext, Alchemix Launch Cross-Chain Token Standard Against Bridge Exploit Losses
The two protocols will implement a standard for issuers to control the “canonical” minting of tokens, helping to reduce losses from unofficial bridges. To mitigate losses from bridge hacks, the Connext cross-chain bridging protocol has unveiled a new token standard.
The new “xERC-20” standard, according to a July 24 statement, enables token issuers to keep track of authorised bridges and regulate the number of tokens that can be produced by each.
Alchemix Finance, a decentralized finance (DeFi) platform, will use xERC-20 tokens in addition to Connect, according to the statement. The new token specification was first proposed as Ethereum Improvement Proposal (EIP) 7281 on July 7.
Arjun Bhuptani, the creator of Connext, contributed to it. At the time, Bhuptani said that following the tenet that "Token issuers are the ones who get rekt when bridges get hacked" will assist to reduce losses from bridge breaches.
Binance Blockchain Week To Host Web3 Enthusiasts In Turkey
Binance Blockchain Week will bring together the Web3 ecosystem in Istanbul, Turkey, during the second week of November. Binance is encouraging cryptocurrency supporters and blockchain technology stakeholders to participate in a talk about the future of Web3.
The current bear market, dubbed the "crypto winter," has seen the rapid rise of the Web3 ecosystem. The flattening price tickers provided developers and firms with an opportunity to concentrate on innovation.
Binance selected Istanbul for the flagship event after bringing together thousands of Web3 aficionados in Dubai and Paris in 2022.