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🏛️SEC Charges Coinbase With Running Unregistered Securities Exchange

The Defiant

DeFi Daily

GM Defiers!

The SEC has charged Coinbase with operating in the U.S. without the necessary approvals, potentially impacting the regulation of digital assets. Optimism deployed its Bedrock upgrade, enhancing its Layer 2 technology stack. Aave has proposed the deployment of its GHO stablecoin on Ethereum, which could intensify competition in DeFi borrowing markets. Meanwhile, Centrifuge has launched Prime, a platform enabling DAOs to manage real-world asset portfolios, further bridging traditional and blockchain finance.

✍️ In today’s newsletter:

  • SEC hits Coinbase with lawsuit a day after Binance
  • Optimism successfully completes Bedrock upgrade
  • Aave's GHO stablecoin could launch imminently
  • Centrifuge launches Prime investment platform for DAOs

📈 Markets in the last 24 hrs:

TickerValue24h
BTC$27,705 0.42%
ETH$1,864.6 0.14%
MKR$688 -0.29%
SPY$412.07 0.08%
UNI$5.451 0.41%
LDO$2.081 0.19%

🎬 WATCH

Watch our video on the SEC going after Binance and Coinbase. And check out our podcast with Steven Goldfeder, the founder of Offchain Labs.


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Regulation

SEC Charges Coinbase With Securities Violations

TLDR The SEC has charged Coinbase, the largest digital asset exchange in the U.S., with operating as an exchange, broker, and clearinghouse without the necessary approvals. This follows similar charges against Binance, the world's largest crypto exchange. The SEC alleges that certain digital assets, including Solana's SOL, Cardano's ADA, and Polygon's MATIC, are securities, and that Coinbase's staking service constitutes an investment contract.

SO WHAT This case could set a precedent for how digital assets and services are regulated in the U.S., potentially impacting other cryptocurrency exchanges and the wider industry. In response to the charges, Coinbase CEO Brian Armstrong stated that the company has repeatedly tried to register with the SEC and does not list securities.


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Layer 2

Optimism Deploys Bedrock Upgrade

TLDR Optimism, a Layer 2 scaling solution for Ethereum, has deployed its Bedrock upgrade. Bedrock is designed to minimize the differences between the Ethereum mainnet and Optimism’s Layer 2. The update aims to reduce transaction fees and improve node performance, and is a step towards Optimism's vision of an interconnected network of OP Stack-based Layer 2s, called the “Superchain.”

SO WHAT The upgrade comes amid increasing competition within Ethereum’s Layer 2 ecosystem, with new solutions from Matter Labs, Polygon, ConsenSys, and Scroll gaining market share.


Stablecoins

Aave Prepares To Launch GHO Stablecoin

TLDR Aave Companies, the developer of the Aave protocol, has proposed the deployment of the GHO stablecoin on the Ethereum mainnet. The proposal has received significant support in Aave’s governance forum, and if passed, the GHO stablecoin will be launched with a borrowing cap of $100M. Aave V3 users will be able to mint GHO against their ETH deposits.

SO WHAT The launch of GHO could provide Ethereum users with another decentralized stablecoin option, potentially enhancing the diversity and competitiveness of the DeFi borrowing market. For Aave, the launch of GHO could generate additional revenue and increase the utility of its platform.


Real World Assets

Centrifuge Looks To Help DAOs Invest In Real-World Assets

TLDR Centrifuge, a DeFi protocol for investing in real-world assets (RWAs), has launched Centrifuge Prime, a platform for DAOs to manage a portfolio of RWAs. The platform aims to provide DAOs with the legal, technical, and operational infrastructure needed to adopt and scale real-world asset investments. Centrifuge's CEO, Lucas Vogelsang, stated that real-world assets offer DAOs a source of "predictable and sustainable yields."

SO WHAT The Prime platform represents a further step in bridging the gap between traditional assets and on-chain finance. By providing DAOs with the infrastructure to invest in RWAs, Centrifuge is expanding the range of investment opportunities available in the DeFi space.


🔎 OUR REPORTERS ARE WATCHING


🌍 ELSEWHERE

  • SEC Seeks Temporary Restraining Order to Freeze Binance.US Assets ( Coindesk)
  • Cathie Wood Boosts Coinbase Stake as SEC Crypto Crackdown Widens ( Bloomberg)
  • Louis Vuitton to Sell $41,000 NFTs to Top Customers ( Decrypt)