💰Arbitrum Onboards Norwegian CBDC
Happy Friday! Ethereum's leading Layer 2 solution, Arbitrum, continues to expand its ecosystem, adding support for Norway's digital currency and Circle’s USDC stablecoin. Meanwhile, Ether.fi has launched an NFT collection where each token represents a certain amount of staked ETH, allowing owners to earn staking rewards.
In regulatory news, the SEC's treatment of Coinbase's non-custodial wallet in its lawsuit against the exchange could have significant implications for DeFi. And in some good news for the sector, a U.S. judge has dismissed a lawsuit against DeFi protocol PoolTogether.
✍️ In today’s newsletter:
- Arbitrum onboards NOK and adds native USDC support
- Ether.fi launches NFTs backed by staked ETH
- SEC says Coinbase Wallet acts as a 'broker'
- PoolTogether class action lawsuit dismissed by federal judge
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Arbitrum Onboards Norway’s Digital Krone
TLDR Arbitrum, a leading Layer 2 scaling solution for Ethereum, is broadening its ecosystem by integrating Norway's digital currency and adding native support for Circle’s USDC stablecoin. The network is also considering two governance proposals from Offchain Labs following community backlash over its initial attempt at decentralized governance.
SO WHAT These developments signify Arbitrum's efforts to maintain its dominance amidst increasing competition from other Layer 2 solutions. Arbitrum processed more than 1.1M transactions over the past 24 hours, surpassing Ethereum mainnet.
Skyteller has launched an easy-to-use crypto off-ramp that lets you turn crypto in your wallet into cash in your bank, quickly and easily. No extra swaps, transfers, or centralized exchanges necessary.
Skyteller is offering early access for Defiant readers to skip the waitlist and sign up today!
With Skyteller, you can off-ramp directly from your wallet or deploy your own smart contract to unlock advanced features like a custom ENS, composability with payment splitters, the ability to collect your royalties, and more.
This launch is the first of many steps Skyteller is taking to level the playing field for crypto earners who, at present, typically make 3 to 4 transactions across multiple platforms (paying fees each time) just to get crypto into their bank account. Skyteller provides an alternative to centralized exchanges, offering earners a fast, simple and decentralized way to convert the crypto in their wallet directly to cash in their bank account in one straightforward transaction.
Ether.fi Launches NFTs Backed By Staked ETH
TLDR Liquid staking protocol Ether.fi has launched the Ether.fan collection, where each NFT represents a certain amount of staked ETH and enables the owner to earn staking rewards. All of the ETH is going towards what Ether.fi calls ‘Operation Solo Staker.’ In exchange for agreeing to run a validator for three years, participants receive free hardware, which they get to keep at the end of the term.
SO WHAT This collection merges the worlds of NFTs and DeFi, offering users a unique way to participate in Ethereum's staking ecosystem. By tying the value of the NFTs to the amount of staked ETH, Ether.fi is creating a new type of asset that combines the appeal of digital art with the financial benefits of staking. However, due to regulatory concerns, the collection is not available to users in the U.S.
Coinbase Wallet Catches SEC’s Attention In Industry-Defining Lawsuit
TLDR The U.S. Securities and Exchange Commission (SEC) has taken aim at Coinbase's non-custodial wallet in its recent lawsuit against the exchange. The SEC alleges that Coinbase operated an "unregistered broker" through its wallet, which routes orders through third-party crypto asset trading platforms.
SO WHAT The SEC's stance could have significant implications for DeFi, as it suggests the agency may view non-custodial wallets that interact with DeFi protocols and charge fees as broker-dealers, which must register with the SEC.
PoolTogether Lawsuit Dismissed By US Judge
TLDR A U.S. district court judge has dismissed a lawsuit against DeFi protocol PoolTogether, ruling that the plaintiff, Joseph Kent, had not suffered any concrete harm. Kent had accused PoolTogether of operating an "illegal lottery" in New York.
SO WHAT This dismissal is seen as a significant victory for the DeFi sector, which continues to navigate regulatory challenges. The ruling could set a precedent for future cases involving DeFi protocols, potentially providing some legal clarity for the sector. However, the sector still faces regulatory scrutiny, as evidenced by the SEC's recent reference to Coinbase's non-custodial wallet as an 'unlicensed broker'.