Tag: CRYPTOS FoxBusiness.

  • Solana Foundation targets institutions with new privacy framework

    Solana Foundation targets institutions with new privacy framework

    The Solana Foundation is making a new pitch to large institutions: privacy as a customizable feature, not a trade-off.

    In a report released on Monday by the foundation, Privacy on Solana: A Full-Spectrum Approach for the Modern Enterprise,” the organization argued that the next phase of crypto adoption will depend less on transparency alone and more on giving companies control over what they reveal — and to whom.

    The framing marks a shift from crypto’s early ethos. Public blockchains have traditionally emphasized openness, where transactions are visible and traceable, even if users are represented only by wallet addresses. The report acknowledged that this “pseudonymity” model, while foundational, falls short for many real-world use cases. Financial institutions, for example, may need to prove transactions occurred without exposing counterparties, while companies processing payroll must avoid broadcasting employee salaries.

    Underlying the pitch is a technical claim: that Solana’s speed makes advanced privacy techniques practical. The team argued that the network’s high throughput and low latency allow these methods to run at near-web speeds, opening the door to use cases such as encrypted order books or private credit risk calculations.

    But rather than offering a single solution for privacy, the foundation presented privacy as a spectrum composed of four distinct modes: pseudonymity, confidentiality, anonymity and fully private systems.

    At the base level, pseudonymity keeps identities obscured behind wallet addresses while leaving transaction data visible. Moving along the spectrum, confidentiality allows participants to be known while encrypting sensitive information like balances and transfer amounts.

    Anonymity flips that dynamic, hiding the identities of participants while allowing transaction data to remain visible. At the far end are fully private systems, where both identities and transaction data are shielded through techniques like zero-knowledge proofs and multiparty computation.

    The message is that no single privacy model fits all. “For enterprises, privacy is a spectrum, not a switch,” the report said.

    What Solana is trying to do is bring all of these privacy options into one system. Instead of choosing just one approach, companies can mix and match tools — like hiding transaction amounts, proving something is valid without revealing details, or controlling who can access certain data — depending on what they need.

    In practice, that could mean executing trades without revealing order size, sharing risk data across banks without exposing individual balance sheets, or allowing users to prove compliance without disclosing personal information.

    The report leans heavily on the idea that privacy and regulation can coexist. The team pointed to mechanisms like “auditor keys,” which enable designated parties to decrypt transactions when required. Other systems would allow wallets to demonstrate compliance status without revealing identity. These features are framed as a response to growing regulatory scrutiny, particularly around anti-money laundering rules and financial surveillance.

    “Privacy is a market requirement,” the report said. “Customers expect it and applications require it. On Solana, you choose your privacy level, from encrypted balances to zero-knowledge anonymity to multiparty confidential computing. Each level maps to a compliance path, and each is composable with the broader ecosystem.”

    Read more: Solana Foundation’s Liu: Focus on finance, not gaming ‘misadventures’

  • Andy Yen: AI knows you better than you know yourself, privacy is a fundamental human right, and the unsustainable nature of AI subscription models | Bankless

    Andy Yen: AI knows you better than you know yourself, privacy is a fundamental human right, and the unsustainable nature of AI subscription models | Bankless

    Key takeaways

    • AI’s capability to understand and predict human behavior poses ethical concerns about privacy and autonomy.
    • The average person’s digital privacy is increasingly compromised due to advancing technologies.
    • AI accelerates intimate data collection, enhancing existing business models.
    • Tech companies record and analyze user interactions with AI tools, raising privacy concerns.
    • Information shared with AI can become part of its training data, risking inadvertent disclosure.
    • AI tools like ChatGPT may know users better than their closest relationships, impacting privacy.
    • The market cap of top AI companies rivals that of many countries, suggesting significant influence.
    • Subscription models for AI services may not be sustainable due to high operational costs.
    • Current AI business models often prioritize profit over user privacy.
    • AI technology costs are expected to decrease exponentially, affecting future development.
    • There are no technical or legal barriers preventing full encryption for user data.
    • Privacy is a fundamental human right and should not be considered a luxury.
    • Many crypto foundations were created for fraudulent purposes rather than social benefit.
    • The gap between open source and proprietary AI models is narrowing, making open source a viable option.
    • Trust in crypto systems requires trust in both the technology and the people behind it.

    Guest intro

    Andy Yen is the founder and CEO of Proton, the privacy-focused tech company behind encrypted email service Proton Mail. Prior to founding Proton in 2014, he worked as a particle physicist at CERN, where he co-developed the infrastructure for secure, end-to-end encrypted communication inspired by large-scale computing challenges. His commitment to user privacy stems from experiences like Edward Snowden’s revelations and concerns over authoritarian surveillance.

    The implications of AI’s growing influence

    • AI has the potential to understand users better than they know themselves. “AI could know you better than you know yourself.” – Andy Yen
    • AI can exploit personal weaknesses, raising ethical concerns. “AI will actually be able to exploit the weaknesses of your personality.” – Andy Yen
    • The average person’s digital privacy is increasingly compromised. “The average person is quite compromised in terms of digital privacy today.” – Andy Yen
    • AI accelerates existing business models by enabling more intimate data collection. “AI is simply an extension of a trend that’s been going on for fifty years.” – Andy Yen
    • Tech companies record and analyze every conversation users have with AI tools. “Tech companies can see it because they are recording and analyzing every conversation.” – Andy Yen
    • AI tools retain user data to improve services and target ads. “They’re actually looking at this information to improve these programs.” – Andy Yen
    • Information shared with AI models can become part of their training data. “The information you give it becomes part of its brain.” – Andy Yen
    • Once information is shared with AI, it is difficult to retract. “Once you put it out there, you cannot really take it back.” – Andy Yen

    The power dynamics of AI and tech companies

    • AI companies’ market capitalization exceeds that of many countries. “These companies have gotten so big that they are more powerful than governments.” – Andy Yen
    • The subscription model for AI services may not be sustainable. “I don’t see how it’s possible to sustain that level of capex from a subscription model.” – Andy Yen
    • Current AI business models prioritize profit over user privacy. “These are profit-driven companies that care only about profit.” – Andy Yen
    • The cost of AI technology is expected to decrease exponentially. “The cost of AI is going to go down probably exponentially with time.” – Andy Yen
    • There are no technical or legal barriers preventing full encryption for user data. “There’s no technical limitation that prevents them from doing what we’re doing.” – Andy Yen
    • The aggressive data practices of companies are driven by capitalism. “Capitalism drives them to make the highest possible profits.” – Andy Yen
    • Loomo’s approach ensures user conversations remain private. “We don’t keep a record of any of your conversations.” – Andy Yen
    • Google’s business model creates a misalignment of incentives that undermines privacy. “You’re not actually Google’s customer; you’re the product.” – Andy Yen

    The challenges of privacy and encryption

    • Privacy is a modern-day digital civil liberty and a fundamental human right. “Privacy is our last defense against surveillance capitalism.” – Andy Yen
    • The mandatory scanning of tech companies has been removed in Europe, a win for privacy. “The mandatory part has been removed, which is a huge win for Europe.” – Andy Yen
    • There should be a modern digital bill of rights that enshrines the right to encrypt data. “Every citizen should always have the ability to encrypt their data.” – Andy Yen
    • Legislation regarding privacy needs to be strengthened and informed by tech-savvy individuals. “We need a new generation of legislators who are more tech native.” – Andy Yen
    • Governments can inadvertently worsen privacy legislation due to a lack of understanding. “You could actually make it worse.” – Andy Yen
    • Backdoors in technology do not exist in a way that only allows good actors access. “I’ve never seen a backdoor that only left the good guys in.” – Andy Yen
    • Mass surveillance undermines the presumption of innocence, crucial for democracy. “Mass surveillance is essentially saying everybody is under surveillance by default.” – Andy Yen

    The role of crypto in financial freedom

    • Financial transactions should be peer-to-peer and private. “Financial transactions should be peer to peer and should be private.” – Andy Yen
    • Venezuela’s high Bitcoin adoption is due to extreme inflation and government control. “Venezuela is one of the countries with the highest Bitcoin adoption.” – Andy Yen
    • Financial freedom is essential for actual freedom, and banning crypto is akin to banning cash. “There is no difference between freedom and financial freedom.” – Andy Yen
    • The ratio of legitimate to illegitimate uses of crypto is skewed towards illegitimacy. “The ratio between legitimate and illegitimate uses is incorrect.” – Andy Yen
    • Illegitimate uses and scams in crypto may constitute around 40% of the ecosystem. “It’s probably 40%, a substantial part of the ecosystem.” – Andy Yen
    • The crypto community must address illicit activities to achieve mainstream acceptance. “Crypto will have a limit to its influence if we don’t tackle that problem.” – Andy Yen
    • Creating a hostile environment for illicit actors is essential for crypto’s reputation. “It’s about creating an environment hostile to bad actors.” – Andy Yen

    The importance of email and digital identity

    • Email will remain a crucial aspect of digital identity for the foreseeable future. “Email is not just communication; it’s your digital identity.” – Andy Yen
    • Switching from Gmail to ProtonMail is about opting out of Google’s data collection. “Switching to ProtonMail is erasing your identity from Google.” – Andy Yen
    • Transferring your data to a more trusted provider can enhance privacy. “It’s easy now; a couple of clicks and you’re done.” – Andy Yen
    • Using different aliases for online accounts can reduce spam and protect identity. “Spin up a different alias in Proton to use a fake alias.” – Andy Yen
    • Locking down your email and identity is crucial to prevent hacks in crypto. “We have a lot of email accounts that get hacked in crypto.” – Andy Yen

    The influence of big tech on privacy and regulation

    • Big tech companies may engage in anti-competitive practices that threaten privacy-focused companies. “Big tech could engage in anti-competitive practices to wipe out privacy companies.” – Andy Yen
    • The lack of regulation allows big tech to potentially control government and democracy. “Big tech controls our government and our democracy.” – Andy Yen
    • Consumer choices play a crucial role in steering the economic and political future. “The most powerful force in capitalism is the individual consumer.” – Andy Yen
    • Crypto could potentially capture 30% of the overall finance market. “Crypto could go from less than a percent to 30% of finance overall.” – Andy Yen
    • The success of privacy-focused services depends on creating a competitive user experience. “We need a user experience that is a viable replacement for traditional finance.” – Andy Yen

    Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

  • Corey Frayer: Crypto loses its identity when mimicking traditional finance, SEC’s independence is crucial for regulation, and compliance can create competitive advantages | Bankless

    Corey Frayer: Crypto loses its identity when mimicking traditional finance, SEC’s independence is crucial for regulation, and compliance can create competitive advantages | Bankless

    Key takeaways

    • Crypto loses its distinct identity when it begins to mimic traditional financial systems.
    • If crypto projects function like banks or securities exchanges, they must comply with existing laws.
    • The current state of crypto resembles traditional finance but often resists regulation.
    • The SEC’s enforcement division operates independently from the chair’s direct involvement in investigations.
    • Gary Gensler’s knowledge of crypto is a significant asset for the SEC’s approach to the industry.
    • The crypto industry perceives the SEC’s office hours as a trap due to fears of future enforcement actions.
    • The distinction between an asset being sold as a security and the asset itself being a security is crucial.
    • Engaging platforms to comply with securities laws can create a competitive advantage in the crypto trading space.
    • Vertical integration in crypto exchanges poses significant risks to financial regulation.
    • Crypto’s fundamental value lies in enabling peer-to-peer transactions without intermediaries.
    • Introducing intermediaries into crypto undermines its decentralized ethos.
    • The crypto industry needs to start centralized to eventually achieve decentralization.
    • The SEC’s approach under Gary Gensler has stifled the potential growth of the crypto industry.
    • The crypto market poses a threat to the integrity of established securities laws if not treated equally.
    • Crypto startups should be treated like other startups in terms of capital raising.

    Guest intro

    Corey Frayer is Director of Investor Protection at the Consumer Federation of America, where he leads efforts to advocate for policies protecting investors and promoting market integrity. Most recently, he served as Senior Adviser to SEC Chair Gary Gensler, focusing on financial stability and crypto asset markets, where he shaped the agency’s approach to securities law and digital assets. Prior to his SEC tenure, Frayer held key positions on Capitol Hill, including as a senior staffer on the Senate Banking Committee advising Chairman Sherrod Brown on financial regulation and consumer protection.

    Crypto’s integration into traditional finance

    • Crypto loses its distinct technological identity when it starts mimicking traditional financial systems.

      — Corey Frayer

    • When crypto starts coming into the traditional space and doing the traditional activities to me it loses the protection of the argument that this is a distinct technology built for peer to peer transactions.

      — Corey Frayer

    • If crypto projects aim to operate like banks or securities exchanges, they must adhere to existing laws.
    • If you’re gonna build a bank if you’re gonna build a securities exchange if you’re gonna raise money the way the Howey Test lies out there are laws for that everyone has to follow the same laws.

      — Corey Frayer

    • The current state of crypto resembles traditional finance but resists regulation.
    • I take issue with the way that it has become something that looks a lot more like the traditional financial system but doesn’t want to be treated like the traditional financial system.

      — Corey Frayer

    • There is a misconception that the SEC under Gensler is pro-traditional finance.
    • I think there’s a perception that the Gensler SEC or myself was very pro traditional industry.

      — Corey Frayer

    SEC’s regulatory approach and independence

    • The SEC’s enforcement division operates independently from the chair’s direct involvement in ongoing investigations.
    • I did not have access to the investigations as they were ongoing… there’s a ton of independence in the enforcement division.

      — Corey Frayer

    • Gary Gensler’s knowledge of crypto is a significant asset for the SEC’s approach to the industry.
    • He actually was informed about crypto… to understand our industry is going to be the greatest asset.

      — Corey Frayer

    • The narrative in the crypto industry suggests that Gary Gensler is leveraging his position to gain political capital at the expense of the crypto sector.
    • The narrative which was allowed to reverberate without being unchecked was that Gary Gensler is upon maybe even a bishop or a knight of Elizabeth Warren who has a very anti crypto political stance and Gary Gensler is using this as an opportunity to ascend his political capital inside of the world of politics.

      — Corey Frayer

    • The crypto industry has largely been isolated from opposing viewpoints, leading to unchecked narratives about regulatory intentions.
    • We basically never talked to anyone on the other side of the aisle… the narrative which was allowed to reverberate without being unchecked.

      — Corey Frayer

    Securities law and crypto assets

    • The distinction between an asset being sold as a security and the asset itself being a security is crucial in understanding investment contracts.
    • Being offered and sold as a security doesn’t mean the asset itself is a security… the concept of an investment contract is that you can offer and sell something as a securities arrangement.

      — Corey Frayer

    • The SEC established precedent that crypto assets could be offered and sold as securities under certain conditions.
    • Crypto assets could be offered and sold as securities… established some precedent that at a minimum according you know to the eyes of the court.

      — Corey Frayer

    • Focusing regulatory efforts on centralized platforms is more productive than targeting individual tokens.
    • We felt that playing mac whack a mole with you know 10,000 tokens wasn’t gonna be a productive use of our resources.

      — Corey Frayer

    Compliance and competitive advantage

    • Engaging platforms to comply with securities laws can create a competitive advantage in the crypto trading space.
    • Our theory here was that if you could get someone to come in and comply with the securities laws they would have a competitive advantage of being the safe place to trade crypto because they were disclosing they were following industry standard rules.

      — Corey Frayer

    • Having multiple financial services under one platform creates conflicts of interest that violate foundational securities law.
    • The red line is essentially having all these businesses together in one platform not having those conflicts of interest is a foundational rule in securities law.

      — Corey Frayer

    • Vertical integration in crypto exchanges poses significant risks to financial regulation.
    • You don’t want these businesses with tons of different exposures like you want people to be in their particular verticals and that way one failure doesn’t cascade across the entire system you don’t want conflicts of interest that give an exchange an advantage over the customers trading on the exchange.

      — Corey Frayer

    • The structure of FTX was a classic failing business model.
    • We had raised an we all had serious concerns about FTX purely because of the structure like that is a classic failing business model.

      — Corey Frayer

    Peer-to-peer transactions and decentralization

    • Crypto’s fundamental value lies in enabling peer-to-peer transactions without intermediaries.
    • What crypto solved for is peer to peer transactions not relying on an intermediary and that is why the technology exists so no one would have to rely on an intermediary like that is fundamental to the ethos.

      — Corey Frayer

    • Introducing intermediaries into crypto undermines its decentralized ethos and necessitates compliance with traditional financial regulations.
    • I get very unsympathetic to the crypto industry when they start introducing intermediaries to this process… if you’re gonna show up here and be an intermediary… you have clearly entered traditional financial territory and you have to follow those rules.

      — Corey Frayer

    • The crypto industry needs to start centralized to eventually achieve decentralization.
    • In order to build some of the more expressive financial infrastructure beyond some of the base primitives like just Bitcoin and Ethereum in order to do more things to make crypto more useful and have better assets and a more flourishing financial system we need to have start ups that raise money and start centralized and with a long term goal of becoming decentralized.

      — Corey Frayer

    • The collapse of FTX significantly impacted traditional financial firms’ willingness to engage with crypto.
    • The reason that didn’t come to fruition is because before we executed on that plan… FTX collapsed and all the traditional financial firms didn’t wanna have anything to do with crypto after that it was toxic.

      — Corey Frayer

    Regulatory challenges and the SEC’s role

    • The SEC’s approach under Gary Gensler has stifled the potential growth of the crypto industry.
    • We were being treated as an industry that had no values no morals no aspirations and was just trying to do what you were saying which is have our cake and eat it too… we were nipped in the bud by Gary Gensler.

      — Corey Frayer

    • If the crypto world had remained focused on electronic peer-to-peer transactions, regulatory scrutiny from the SEC might have been avoided.
    • If the crypto world had stayed in the space of electronic peer to peer transactions I don’t think the SEC would ever have gotten involved in it.

      — Corey Frayer

    • The crypto market poses a threat to the integrity of established securities laws if not treated equally.
    • If you take two things that are economically identical if you have something being offered and sold as a security and you have a biotech firm selling securities and you don’t treat the crypto market the same way you are undermining the securities laws…

      — Corey Frayer

    • The economic reality of business practices in crypto must be treated the same as any other financial instrument.
    • It is incumbent upon financial regulators regardless of the technology to treat your economic the economic reality of of your business practices the same as any other identical economic instrument.

      — Corey Frayer

    Crypto startups and investor protection

    • Crypto startups should be treated like other startups in terms of capital raising.
    • I don’t see a reason to treat crypto startups any differently than other startups again when they’re doing the same economic activity.

      — Corey Frayer

    • The SEC’s role is to ensure issuers follow laws rather than make investment decisions for investors.
    • You do not want the securities and exchange commission to be making decisions on behalf of investors… what you want to do is make sure that issuers of securities follow the laws that congress has set forth.

      — Corey Frayer

    • The orderly functioning of the securities marketplace is crucial for investor protection.
    • The orderly functioning of that marketplace is really important the stability of that marketplace is important disclosure is really important fair dealing eliminating conflicts of interest attempting to eliminate unfair information asymmetry insider trading for example going after fraud that is the kind of investor protection that you want the SEC involved in.

      — Corey Frayer

    • Peer-to-peer transactions are fundamentally what crypto was designed to facilitate.
    • That’s the thing that crypto was set up to do and I would agree with you there a 100% that that is the thing that crypto is set up to do.

      — Corey Frayer

    DeFi and centralized actors

    • Decentralized finance (DeFi) aims to perform financial functions without intermediaries.
    • What if you can actually get to a point where you can in an intermediary less way you can do all of the functions or many of the functions in finance.

      — Corey Frayer

    • The definition of DeFi is nuanced and depends on the presence of centralized actors.
    • I would say that it depends a lot on how you’re defining DeFi… if you have something where genuinely there’s sort of this immaculate conception of a protocol that allows for trading of nonsecurity crypto assets in a truly intermediary less way then yeah, I think by definition that falls outside the securities laws.

      — Corey Frayer

    • Centralized actors in DeFi platforms create obligations to comply with securities laws.
    • If you’re trading securities on that platform and I can identify a centralized actor then I don’t think that’s DeFi and I think it clearly has an obligation to comply with the law.

      — Corey Frayer

    • The SEC’s actions against Uniswap represent an attack on open source and DeFi.
    • We felt like this was an attack on open source this was an attack on on DeFi and this is maybe beyond the SEC’s jurisdiction.

      — Corey Frayer

    Uniswap and regulatory challenges

    • Uniswap has achieved significant trading volume, making it a success story in the DeFi space.
    • 4,000,000,000,000 in trading volume on Uniswap like it’s a success story coming out of America.

      — Corey Frayer

    • The distinction between good and bad actors in crypto is often unclear until after events unfold.
    • We never know as regulators at the outset who the good guys are and who the bad guys are… a lot of people loved Alex Mashinsky and when you know we were looking into him we got a lot of hate when we were looking into FTX we got you know angry letters from congress saying like how dare you this is a huge boom for America…

      — Corey Frayer

    • Uniswap’s code allows users to verify its non-custodial nature, distinguishing it from centralized entities like FTX.
    • You can know who is good in advance when it comes to Uniswap because we can look at the code and know that it is completely sovereign for the individual who is using it which is not true for FTX…

      — Corey Frayer

    • Uniswap’s claim of decentralization is misleading because it can still be identified and served subpoenas.
    • I take issue with defining Uniswap as decentralized… we can identify the people… they are a company.

      — Corey Frayer

    Philosophical differences in regulation

    • There is a philosophical difference regarding the facilitation and control of exchanges in the context of securities laws.
    • I think we have a a philosophical difference about what it means to facilitate or be involved with or own or control an exchange.

      — Corey Frayer

    • Uniswap Labs is not operating the Uniswap exchange, which is a significant distinction in terms of accountability under securities laws.
    • They are not operating that application and they are just perhaps they are facilitating on the front end.

      — Corey Frayer

    • Mantle is not just another blockchain; it is an ecosystem designed for builders seeking real distribution and users.
    • Mantle is not just another blockchain it is an ecosystem built for builders who want real distribution and real users.

      — Corey Frayer

    • Projects on Mantle can access Bybit, which provides exposure to over 70 million verified users.
    • Projects on Mantle have access to tap directly into Bybit one of the largest exchanges globally giving teams exposure to more than 70,000,000 verified users.

      — Corey Frayer

    Outdated regulations and SEC’s capacity

    • The SEC’s regulations from the 1930s may not be suitable for today’s decentralized finance landscape.
    • The SEC can look at something that has no counterparties that has no intermediaries and say maybe the SEC regulations from the nineteen thirties don’t quite fit this paradigm of the internet.

      — Corey Frayer

    • The SEC lacks the capacity to audit every platform’s code effectively without additional congressional support.
    • The SEC is not going to have the capacity unless congress gives it at some point the capacity to go through every platform code and you know figure out whether or not it could be exploited.

      — Corey Frayer

    • The SEC’s limited budget and resources hinder its ability to effectively oversee the vast securities marketplace.
    • The SEC oversees a $125,000,000,000,000 securities marketplace… and it has a $2,000,000,000 budget every year… you have an enormous task at that agency with a very small amount of resources.

      — Corey Frayer

    • The DAO concept is fundamentally flawed as a decentralized model.
    • I think the DAO concept is fundamentally flawed as a you know quote unquote decentralized.

      — Corey Frayer

    Broader implications of DeFi and DAOs

    • Decentralized finance (DeFi) may not pose a significant threat to the broader financial services industry or securities laws.
    • I’m not sure I would see DeFi as a threat to the broader financial services industry to the securities laws in such a way that it would need to be a priority of the SEC.

      — Corey Frayer

    • The governance of decentralized autonomous organizations (DAOs) still holds individuals accountable, regardless of how decentralized they appear.
    • You can identify the people who control a DAO who govern a DAO and those folks no matter how broadly distributed they are are accountable to that.

      — Corey Frayer

    • Comparing Uniswap to Google highlights the transformative impact of DeFi on trading, akin to how Google revolutionized internet search.
    • It’s basically a trading verb on all of the assets you know that can exist in crypto which is like basically all assets and so they’ve kind of like revolutionized trading the way Google revolutionized the internet and search.

      — Corey Frayer

    • Corey believes that while there are bad actors in crypto, the presence of good projects is beneficial for both the US and the world.
    • I actually think that’s a net good for not only the US but for the world… the projects that have done more good than bad in crypto… do you think that’s net beneficial?

      — Corey Frayer

    Fair regulatory treatment and the Howey Test

    • Crypto should not receive preferential treatment in regulation compared to traditional financial industries.
    • I think it is not fair to give crypto a leg up over other industries or over other financial regulations because it’s new in some way… the crypto industry make arguments for deregulation that look identical to the traditional industry.

      — Corey Frayer

    • The Howey test’s application to various assets may be overly broad, potentially classifying many non-traditional items as securities.
    • If your definition of a security turns dollars and game items and loyalty points and Pokemon cards and NFTs… into a security doesn’t it seem like you’ve stretched the Howey Test a bit too far?

      — Corey Frayer

    • The SEC evaluates whether an asset is a security based on how it is offered and sold, not just the asset itself.
    • The SEC under the Howey Test looks at a totality of circumstances right and so what what that means is it’s not about the asset itself it’s about how it’s distributed.

      — Corey Frayer

    • Relying solely on the Torres decision in Ripple is unfair, as there are many legal interpretations regarding what constitutes a security.
    • I think it’s unfair to rely just on the Torres decision in in Ripple because there were a lot of decisions that did not fall out that way.

      — Corey Frayer

    Economic analysis and legal definitions

    • The economic analysis behind a security is more important than a strict definition.
    • The whole point of the Howey Test is you if you write down in black and white what is and is not a security you’re writing a road map to getting around securities laws… the reason it’s a broad description is so that you cannot do an end run around securities laws.

      — Corey Frayer

    • Creating strict definitions for securities could lead to increased fraud and undermine the securities market.
    • You’re gonna break the whole securities market you’re gonna invite a whole lot of fraud but… the reason that the securities laws have stood the test of time is that they take this definitional approach.

      — Corey Frayer

    • Defining legal terms in legislation is inherently complex and subjective.
    • It is philosophically very hard to write into law exactly what you mean and you don’t want to miss things that you mean to capture and you don’t want to capture things that you mean to exclude.

      — Corey Frayer

    • The Howey Test remains a relevant framework for identifying securities.
    • I think Howey has stood the test of time as a great white way to identify what is and is not a security.

      — Corey Frayer

    SEC’s motives and Uniswap’s alignment

    • The SEC has ulterior motives that hinder the growth and potential of the crypto industry.
    • The SEC from our cryptos from the crypto perspective seemed to have ulterior motives which is why I invoked Elizabeth Warren and the whole anti crypto army at the very beginning of this podcast.

      — Corey Frayer

    • Uniswap has created fair and orderly markets that align with the SEC’s interests more effectively than the SEC itself.
    • Uniswap for example has created fair and orderly markets which is 100% aligned with the interests of the SEC and even more spicier somebody like Eric Voorhees would say Uniswap as an application has achieved the SEC’s mandate in a far better far more scalable mechanism than the SEC would ever be able to produce.

      — Corey Frayer

    • Regulation does not inherently harm an industry; it can actually strengthen it.
    • I would argue that in fact it makes it stronger… in a world where crypto follows the law and investors get the same protections that they would in other parts of the marketplace, it gains trust and and it grows.

      — Corey Frayer

    • We cannot identify bad actors in the crypto space until regulations are applied fairly.
    • We never know who the bad actors are until they show themselves… you don’t know until you have applied the regulations fairly and you have looked closely at everyone in the business.

      — Corey Frayer

    Market trust and the SEC’s approach

    • Failing to regulate financial markets erodes trust, which is essential for market stability.
    • There are consequences to failing to regulate the financial markets and one of those consequences is eroding trust and that trust is what markets are built on.

      — Corey Frayer

    • The SEC under Gary Gensler has taken a ‘bad cop’ approach to regulating the crypto industry.
    • I think we started out genuinely trying to work with the industry… it came down to us drawing a line in the sand on having conflicts of interest.

      — Corey Frayer

    • Even without fraud, Sam Bankman-Fried’s company was destined to fail.
    • I will say even if Sam Bankman Fried had not engaged in the fraud he did his company was destined to fail and destined to harm a lot of people along with it.

      — Corey Frayer

    • Crypto risks losing its distinctiveness when it engages in traditional financial activities.
    • When crypto starts coming into the traditional space and doing the traditional activities to me it loses the protection of the argument that this is a distinct technology built for peer to peer transactions.

      — Corey Frayer

    Private currencies and centralized entities

    • Private currencies have historically not worked out well.
    • I think it’s a really bad idea… we have experience with private currencies it never works out well.

      — Corey Frayer

    • Centralized entities like Circle and Tether contradict the decentralized ethos of crypto.
    • They are a company that holds a whole bunch of financial assets they are by definition centralized.

      — Corey Frayer

    • The Genius Act is not a good idea as it treats economically identical assets differently.
    • No I don’t think the Genius Act was a good idea I don’t think you wanna treat economically identical assets differently.

      — Corey Frayer

    • Credit card companies will likely start processing stablecoin transactions without consumer protections.
    • I guarantee you we are gonna start to see credit card companies saying well actually these transactions on the back end are stablecoin transactions so you don’t get the benefit of consumer protections anymore.

      — Corey Frayer

    Bankruptcy law and political influence

    • The accounting treatment of crypto assets in bankruptcy is complex and varies significantly from traditional assets.
    • There were a lot of outstanding questions about the kind of liabilities that a public company would have that we believed investors in that public company should be aware of… the industry didn’t like it… it’s usually asking for favorable guidance.

      — Corey Frayer

    • Banks could have implemented capital rules to accommodate crypto without affecting their balance sheets.
    • If the bank regulators felt that they had a handle on this situation and wanted crypto at the banks they could have put capital rules out that meant that the on sheet balance… didn’t affect the capital standing of the banks.

      — Corey Frayer

    • The ambiguity in bankruptcy law for crypto will continue to lead to conflicting decisions.
    • We were proved right about this ambiguity in the bankruptcy law in crypto winner when we got tons of conflicting bankruptcy decisions about was it governed by the contract was it governed by the activity itself.

      — Corey Frayer

    • The crypto industry did not significantly influence the 2024 election.
    • I don’t think it’s credible that this one industry had that much influence over the election… it’s really hard to make the argument that it was crypto sentiment that affected any part of that election.

      — Corey Frayer

    Political actions and regulatory consequences

    • The crypto industry’s political actions were not focused on promoting pro-crypto candidates.
    • They ran the same republican ads… they weren’t running pro crypto ads they never used the word crypto.

      — Corey Frayer

    • The silence from the crypto industry regarding presidential corruption is harmful to its credibility.
    • I think the silence from most corners of the industry around it in exchange for getting legislation or regulatory favors is ultimately harmful to the industry.

      — Corey Frayer

    • Corruption will be a significant theme in the next election, impacting the perception of crypto.
    • I think there’s a very good chance that the next election might be impacted not by the crypto of it all but the amount of corruption that crypto has allowed the president to get away with.

      — Corey Frayer

    • The current regulatory approach under the new administration is a step in the wrong direction.
    • I think it’s absolutely the wrong direction… I would stand behind the validity of every one of them and the integrity of every one of them.

      — Corey Frayer

    SEC guidance and market uncertainty

    • The current SEC guidance lacks the force of law and is easily reversible, which creates uncertainty for the crypto industry.
    • Atkins has done everything by guidance there are no rules that have been established through the APA process which means that none of them hold the force of law.

      — Corey Frayer

    • A new SEC administration could lead to chaos and legal challenges in the crypto market.
    • In a new SEC that wants to enforce the securities laws equally across the entire market is one a little bit of chaos and two a big challenge in court.

      — Corey Frayer

    • The SEC’s current actions are harming the integrity of the institution and will have broader consequences for the market.
    • I think what the SEC is doing now through these actions through these unprecedented actions is harming the integrity of that institution and I think that’s gonna have broader consequences for the market than even just crypto.

      — Corey Frayer

    • There should be stronger advocacy for regulation and enforcement not just in crypto but across the entire financial system.
    • Obviously I would be I think a a stronger advocate for regulation in the space for enforcement and it wouldn’t just be in the crypto space.

      — Corey Frayer

    Ethereum’s regulatory status and centralization risks

    • Ethereum has characteristics that could classify it as a security at certain times.
    • I think some of the things that have harmed the argument that eth is unable to be offered and sold as security… is my opinion that there are at a minimum been times at which eth was offered and sold as security.

      — Corey Frayer

    • The transition from proof of work to proof of stake has introduced centralization risks in Ethereum’s validation process.
    • Now you have these centralized players that can buy up a lot of eth and be a larger part of the validation process and some people are financially locked out of the validation process.

      — Corey Frayer

    • The SEC chair cannot engage in open dialogue without risking market movement and legal repercussions.
    • It is much easier for me to have an open conversation with you guys now that I’m outside of the agency because so much of what you do there is potentially market moving information… it is really really hard to while you’re in that seat like I would have never been able to do something like this while I was at the SEC.

      — Corey Frayer

    • Independent regulators should avoid engaging in public conversations that could compromise their responsibilities.
    • I don’t think it’s actually something you really want independent regulators to be to be doing.

      — Corey Frayer

    Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

  • Whale, Considered One of the Best Traders of His Era, Dumped a Massive Amount of an Altcoin Today

    Whale, Considered One of the Best Traders of His Era, Dumped a Massive Amount of an Altcoin Today

    One of the most notable transactions in the cryptocurrency market came from High Stakes Capital, dubbed “the best trader of the FTX era.”

    The trader’s large sell order, executed within the last two hours, has become the focus of market participants.

    According to on-chain data, High Stakes Capital sold a total of 300,000 $HYPE tokens in approximately two hours. These sales, conducted at an average price of $38.17, generated a total value of $11.45 million.

    However, it appears the trader still holds a significant amount of $HYPE in their portfolio. According to current data, High Stakes Capital continues to hold approximately 302,421 $HYPE tokens. The current market value of these assets is around $11.54 million, while the trader’s total unrealized profit is reported to be over $33.2 million.

    High Stakes Capital, known for its high-risk transactions in the cryptocurrency world, had particularly attracted attention with its performance during the FTX era. Frequently ranking at the top of PNL (profit/loss) lists during that period, the trader was considered one of the successful names among independent investors.

    After a period of silence following the collapse of FTX, High Stakes Capital made a strong comeback to the market by becoming active again on platforms such as Bybit and Hyperliquid.

    *This is not investment advice.

  • Update Set to Bring Major Changes to a Surprise Altcoin Has Been Approved

    Update Set to Bring Major Changes to a Surprise Altcoin Has Been Approved

    A significant development has occurred in the Aave ($AAVE) ecosystem, one of the decentralized finance (DeFi) protocols.

    The Aave community has officially approved the ARFC (Aave Consultation Forum) proposal, which envisions the deployment of Aave V4 on the Ethereum mainnet.

    According to information shared on the Aave management page, the proposal aims to deploy Aave V4 on the Ethereum mainnet with a “security-first” approach. In this context, conservative risk parameters will be applied initially, and the system will operate with a Hub & Spoke architecture. Initially, Aave V4 will provide service through a dedicated interface.

    In the later stages of the process, it is planned to submit an AIP (Aave Improvement Proposal) that includes full risk parameters. This step will formally complete the code distribution and system activation.

    Aave V4 stands out with its modular structure. In the new architecture, the “liquidity hub” will host shared liquidity, while the sub-structures called “branches” will define specific lending environments and risk levels limited by governance. According to the initial deployment plan, three different hubs will be created: Core, Prime, and Plus.

    Supported assets include prominent cryptocurrencies and tokenized products such as $AAVE, GHO, wstETH, weETH, cbBTC, USDC, USDT, LINK, and XAUt.

    *This is not investment advice.

  • Strategy tops up capital-raising plans, bringing potential bitcoin buying power back to $42 billion

    Strategy tops up capital-raising plans, bringing potential bitcoin buying power back to $42 billion

    Strategy (MSTR) has unveiled a $42 billion at the market (ATM), equity program, split between $21 billion of Class A common stock (MSTR) and $21 billion of its Variable Rate Series A Perpetual Stretch Preferred Stock, Stretch (STRC), according to an 8-K filing.

    The company also introduced a new $2.1 billion ATM for its $STRK preferred stock, replacing a prior $STRK program that had more than $20 billion remaining.

    The company expanded its sales syndicate. Strategy added Moelis & Company, A.G.P./Alliance Global Partners, and StoneX Financial, bringing the total number of agents to 19. These firms act as intermediaries, selling shares into the market over time, allowing the company to raise capital gradually rather than through large, one-time offerings.

    As of March 22, Strategy still had capacity remaining on its existing ATM programs. This included approximately $6.24 billion of common stock, $1.98 billion of STRC, $20.33 billion of $STRK, and $1.62 billion of STRF available for issuance.

    The company last week purchased another 1,031 bitcoin, bringing holdings up to 762,099 coins. Shares are modestly higher on Monday as bitcoin trades up slightly from the Friday close at $71,300.

  • Pharmaceutical firm pivots to stablecoins, holds nearly 9% of SKY’s supply

    NovaBay Pharmaceuticals (NBY) — a nanocap with a market capitalization of about $30 million — has renamed itself Stablecoin Development Corporation and changed its ticker to SDEV, marking a full shift from healthcare to crypto.

    This follows a $134 million private placement backed by firms including Framework Ventures and Tether Investments, the company said.

    The firm is using those funds to build a large position in $SKY, the governance token tied to the Sky protocol, a decentralized finance protocol that issues the cryptocurrency-backed dollar-pegged stablecoin USDS..

    The company currently holds about 2.06 billion $SKY tokens, roughly 8.78% of the total supply, worth around $147 million. It acquired over half of that on the open market at an average price near $0.065. The rest came as part of the financing deal, which included cash and stablecoins.

    The firm has also begun staking its holdings to earn rewards. It reports earning about 26.6 million $SKY tokens so far, with these rewards varying based on network rules and participation.

    CoinDesk has reached out to Stablecoin Development Corp for comments, but hasn’t heard back at the time of writing.

    Sky, which evolved from MakerDAO, currently has a $SKY staking rate of over 10%, according to the protocol’s website. The token’s value is down around 1.45% over the last 24 hours, while the broader crypto market rose 4% over the same period, as measured by the CoinDesk 20 (CD20) index.

    NBY is higher by 5% on Monday.

  • Aster DEX Launches Stage 6 Buyback Reserve for ASTER

    Aster DEX Launches Stage 6 Buyback Reserve for ASTER

    Aster DEX has launched its Stage 6 strategic buyback program to help stabilize the $ASTER token amid ongoing market ups and downs. The program executes token repurchases from a dedicated strategic wallet.

    🚨JUST IN: $ASTER DEX ACTIVATES STAGE 6 BUYBACK RESERVE FOR $ASTER

    Aster DEX (@Aster_DEX) has launched its Stage 6 strategic buyback program.

    The move aims to support $ASTER amid current market conditions. Repurchases are being executed from a designated strategic wallet.

    The… pic.twitter.com/gPaJcR5vV8

    — BSCN (@BSCNews) March 23, 2026

    Moreover, all transactions are fully on-chain and publicly visible, demonstrating Aster’s commitment to transparency. This approach allows the community to track the program in real time and boosts confidence in the platform’s strategy.

    Aster Stage 6 Buyback Program Explained

    The Stage 6 buyback program began on February 4, 2026. It allocates up to 80% of daily platform fees for $ASTER token repurchases. Specifically, 40% of fees are used automatically, while the remaining 40% can adjust based on market conditions.

    By reducing the circulating supply, the buybacks aim to support $ASTER’s price and create value for holders. Furthermore, the on-chain verification ensures transparency, which strengthens investor trust. Therefore, this strategy combines both market support and accountability.

    Community Response to Buybacks

    The Stage 6 program has received a mostly positive response from the community. Many users praised the visibility of all transactions, which allows them to follow each buyback closely. In addition, they see the program as a clear sign of Aster’s confidence in $ASTER.

    However, some community members have questioned whether the buybacks will significantly affect $ASTER’s price. While buybacks can influence market perception, the actual impact depends on the size of purchases compared to total token supply. Even so, most holders view the program as a proactive step that could help stabilize the token over time.

    How Buybacks Reflect Broader Crypto Trends

    Aster DEX’s Stage 6 program fits within a larger trend of crypto projects using buybacks to manage token economics. Similar to stock repurchases in traditional markets, buybacks reduce supply and can support token prices.

    Importantly, Aster combines automatic and flexible repurchases. This dual approach allows the platform to respond to market changes while maintaining consistent support. Consequently, the program balances steady action with adaptability, which is critical during volatile periods.

    Benefits and Outlook for $ASTER Holders

    For $ASTER holders, Stage 6 buybacks signal Aster’s ongoing commitment to supporting token value. Reduced supply may help maintain price levels, while on-chain transparency lets investors track progress and evaluate execution.

    Although immediate price moves may vary, the program strengthens $ASTER’s long-term stability. Looking forward, Aster will continue executing buybacks efficiently while monitoring market reactions. By combining predictable actions with flexible strategies, the platform reinforces trust and confidence among its community.

    Ultimately, Aster’s Stage 6 buyback program highlights how crypto projects can actively manage tokens, maintain transparency, and navigate market volatility. With clear strategies and open communication, Aster demonstrates a strong commitment to both its holders and long-term token health.

  • After $SIREN’s $1.2B Surge, Pi Community Asks: Is Pi Next to Explode on Binance? 

    After $SIREN’s $1.2B Surge, Pi Community Asks: Is Pi Next to Explode on Binance? 

    • Pi Network gains traction across major exchanges, but Binance listing delay keeps investors questioning its future growth and mainstream adoption potential.

    • Despite strong community support and 86% Binance poll backing, Pi price remains weak near $0.19, showing consolidation rather than a breakout trend.

    • Pi community remains divided as some see Binance listing as a catalyst, while others believe long-term value depends on ecosystem growth, not exchanges.

    The Pi Network rumour mill never really stops. But this week it is spinning faster than usual, and there is an actual reason for it.

    A token called SIREN just blew past a $1.2 billion market cap almost immediately after getting listed on Binance-linked platforms, according to CoinGecko data. That one data point was all it took. Within hours, Pi community accounts were doing what they always do: connecting dots, making comparisons, and asking the same question they have been asking for two years now.

    Why is Binance still not listing Pi?

    It is a fair question. PiNews360, one of the more followed accounts in the Pi community, put it plainly this week. Pi has tens of millions of users spread across nearly every country on earth. Its ecosystem is growing. Its migration numbers are climbing. At some point, the argument goes, Pi simply becomes too large and too liquid for the world’s biggest crypto exchange to keep looking the other way.

    What has changed in recent months is that Pi is no longer sitting on the sidelines of the broader market. It is already trading on OKX, Bitget, MEXC, Gate.io, Bybit and HTX. Most recently, Kraken quietly rolled out PI perpetual futures.

    Binance Poll Still Shapes Expectations

    The current excitement is rooted in past developments. Nearly a year ago, Pi secured around 86% support in a Binance community poll, signaling strong retail demand for a listing.

    Despite this overwhelming backing, Binance has yet to take the next step. The delay continues to keep the community in a wait-and-watch mode, with expectations building over time rather than fading.

    Price Struggles Despite Growing Hype

    While discussions around listings are heating up, Pi’s price action remains under pressure. The token is currently trading near the $0.19 mark, stabilizing after a period of volatility and a steep decline from its earlier highs close to $3.

    With a market cap of around $1.84 billion and a circulating supply of 9.81 billion tokens, Pi has struggled to maintain upward momentum. Daily trading volumes remain modest, and recent price movements suggest consolidation rather than a breakout.

    Community Split on Binance’s Importance

    The debate within the community remains divided. Some usersbelieve a Binance listing could act as a major catalyst, potentially driving a strong price surge and wider adoption. Others take a different stance, arguing that Pi’s value will come from its internal ecosystem rather than reliance on centralized exchanges.

  • Crypto Market Review: Did Shiba Inu (SHIB) Finally Hit Price Top? Bitcoin’s Catastrophic Tumbling Might Not Be Over, Can XRP Realistically Lose $1?

    Crypto Market Review: Did Shiba Inu (SHIB) Finally Hit Price Top? Bitcoin’s Catastrophic Tumbling Might Not Be Over, Can XRP Realistically Lose $1?

    Exhaustion rather than recovery is a great way to characterize the current state of the cryptocurrency market. The back-and-forth that we are witnessing nowadays is draining liquidity, pushing retails away and making institutional investors choose more stable assets. Unfortunately, the market could not find a footing that would allow it to recover in a proper fashion.

    Shiba Inu’s momentum cannot be maintained

    With $SHIB continuously failing to reach higher highs or maintain any significant bullish momentum, recent price action clearly demonstrates the continuation of the larger downtrend. In theory, it is hard to overlook the situation.

    Article image

    $SHIB is still well below important moving averages, such as the 50 EMA, which is still serving as dynamic resistance. It is clear that sellers are still in charge, because every attempt to regain this level has been turned down. Descending triangles and weak consolidation phases, which usually resolve to the downside when they appear within a bearish trend, are what define the structure itself.

    Volumes are unhealthy

    Additionally unhelpful is volume behavior. Although there have been sporadic increases during brief recoveries, overall participation seems erratic and lacks the expansion usually necessary for a trend reversal. Rather than being true accumulation phases, rallies resemble relief bounces.

    From a wider angle, the case for a fresh push higher is considerably undermined by $SHIB’s incapacity to overcome even fundamental resistance levels. Short-term moving averages are typically swiftly recovered by assets that are still in a strong uptrend following corrections. Conversely, $SHIB is spending long stretches of time below them, which is indicative of ongoing selling pressure and weak demand.

    This makes it plausible that, at least for the current cycle, the price top has already been reached. It implies that, unless there is a significant change in market conditions or a spike in demand, upside potential may remain constrained, even though it does not necessarily imply a total collapse.

    Investors ought to think about the bigger picture as well. Sentiment and liquidity cycles have a significant impact on meme assets like $SHIB. The price usually follows when both start to decline. As of right now, neither participation metrics nor technical structure point to a significant reversal forming.

    Will Bitcoin recover?

    Concerns about Bitcoin’s current market structure persist as recent price movement indicates that the current downward trend may not be over.

    The asset is still under constant selling pressure after losing important support levels and failing to sustain upward momentum. Technical indicators point to ongoing weakness rather than a confirmed recovery.

    From a structural perspective, Bitcoin is steadily trading below significant moving averages, such as the 50 and 200-day levels, which are currently sloping lower. A strong bearish regime, in which rallies are sold into rather than prolonged, is usually reflected in this alignment. Short-lived attempts at recovery in recent times have created lower highs and strengthened the overall downward trend.

    Article image

    Persistent market pressure is also actively driving the asset down. Selling volume has accompanied every bounce, indicating that market players are taking advantage of strength to sell rather than build. This behavior is in line with distribution phases, in which the bid side’s liquidity progressively disappears.

    This view is further supported by volume dynamics. Although there have been spikes during abrupt changes, overall participation does not demonstrate the kind of consistent inflows required to buck the trend. Rather than being driven by organic demand, the market seems reactive, driven more by short-term positioning and liquidations.

    Nevertheless, there is some balance in the situation. Zones that previously served as support for Bitcoin are getting closer, which may draw opportunistic buyers hoping for a comeback. Furthermore, people’s mood is growing more cautious, which has historically led to short-term relief rallies.

    Any possible recovery is still contingent, though. Bitcoin would need to recover important resistance levels and hold above them with significant volume confirmation in order for a significant reversal to occur. In the absence of that, the current structure favors prolonged consolidation, or at most, further declines.

    $XRP‘s price drop is not simple

    Although $XRP’s current market structure allows for more declines, a more nuanced perspective is needed to determine whether it can actually fall below the $1 level.

    Although a decline toward $1 is not yet the worst-case scenario, it is undoubtedly possible given the overall bearish trend. Technically speaking, $XRP is still in a prolonged downward trend, with price action continuously forming lower highs and faltering below important moving averages. The 50 EMA still serves as dynamic resistance, thwarting attempts to move higher and bolstering bearish control.

    More significantly, $XRP has been using an upward trendline as short-term support. This stage is crucial. The structure changes from a weak consolidation to a continuation of the downtrend if that trendline breaks decisively. Lower support zones would be the next logical targets in that case, and psychologically significant levels like $1 begin to take center stage.

    $XRP might tumble even lower

    Theoretically, there is a way for $XRP to lose $1. Round numbers are not respected by markets as hard floors unless there is a high level of demand. $XRP may test much lower levels if selling pressure continues, liquidity declines and overall market sentiment deteriorates. This is more likely if the market as a whole, and Bitcoin, continue to decline.

    But context counts. Buyers are likely to intervene forcefully before the price reaches the $1 level, because it is not only psychologically significant but also historically significant for $XRP. Furthermore, despite recent volatility, on-chain activity and network usage still offer a baseline level of demand that may mitigate or slow downward movements.

    $XRP is not currently in a free fall. It is in a delicate, strained structure that could collapse in either direction based on the state of the market as a whole. The likelihood of a move toward $1 would rise with a prolonged breakdown below current support levels, but this would probably require a combination of technical failure and external market weakness.

    To put it briefly, losing $1 is not inevitable, but it is also not out of the question. The likelihood is largely dependent on $XRP’s ability to maintain its current support structure.