There’s more hope for crypto in Congress and it comes at the hands of Senators Cynthia Lummis and Kirsten Gillibrand. The two promised the release of their new bipartisan crypto bill, The Responsible Financial Innovation Act, as early as the first week of June. This highly anticipated proposal pledges to be more all-encompassing in its scope than prior crypto bills, with Gillibrand pointing out that “no other bill endeavors to create a regulatory framework for the whole industry,” with most others being “small, discreet, and one-idea bills.” (Blockworks)
One major highlight of The Responsible Financial Innovation Act is its definition of crypto as a commodity on the market. The mislabeling of crypto as securities currently serves as a thorn in the sides of businesses, projects, and innovation, limiting the potential of crypto in the consumer market. This bill suggests that regulatory ownership should belong to the Commodity and Futures Trading Commission (CFTC). Caroline Pham, CFTC Commissioner, spoke to this on Tuesday, saying the CTFC “already has a framework that’s ready-made to go right now into the regulated sector for digital assets.”
“We are truly committed to creating the type of baseline and framework legislation that will allow this industry to grow, allow it to flourish,” Gillibrand added. “The best thing we can do for all these businesses is to bring clarity.” (Coindesk)
Although Gillibrand believes this bill won’t see a vote until early next year, it’s still an exciting advancement in the crypto space. A bill like this one could provide breathing room for crypto investors, possibly letting it rediscover some of its autonomy and utility as a commodity of value in the market.
Speaking of the market, hot takes and analyst predictions abound as Bitcoin sees its eighth consecutive week of downward action. This sets a downtrend record, the prior being six in the red, but Bitcoin was never so closely tied to the traditional market as it is today. The more the Fed promises to increase rate hikes, the longer both markets suffer.
While no one is thrilled by the Fed’s recent decisions, some analysts are reporting that this might be their only option to curb staggering inflation. However, with the Fed keeping investors in the dark thus far on their target metrics, people are starting to wonder just how high these rates will go before they’re unsustainable. Bill Ackman, CEO of Pershing Square Capital Management, commented saying, “The only way to stop today’s raging inflation is with aggressive monetary tightening or with a collapse in the economy.” So, which is it going to be? (Cointelegraph)
Speaking of sustainability, crypto continues to get greener. Remember Adam Neumann, founder and former CEO of WeWork who resigned in 2019 amidst some theatrical drama? Well, he’s making a comeback in crypto, recently raising $70 million for his new carbon-friendly startup, Flowcarbon. Based on the Celo blockchain, this new platform uses a native token, the Goddess Nature Token (GNT), that’s backed by carbon-offset credits from nature-based projects, with the goal of placing money in the hands of projects that are actively helping the planet.
"Flowcarbon’s mission is to drive billions of dollars directly to projects that reduce or remove carbon from the atmosphere by creating the first open protocol for tokenizing live, certified carbon credits from projects around the globe," the press release read, adding that Flowcarbon’s protocol lets developers “immediately access a marketplace of buyers interested in their credits by bringing them onto the blockchain.” (The Block)
Overall, by partnering with conservationists, Neumann and his team created an interesting way of distributing wealth to places that can really make a difference in the world’s carbon footprint. Of the funding that came in for Flowcarbon, $38 million of it emerged from a private GNT token sale, which takes place through this week. The other $32 million came from various venture capitalists who see the promise in an eco-friendly crypto future. (Decrypt)
And in other news, Yield Guild Games announced its Q1 data that demonstrated its buoyancy in an otherwise tough market. The popular play-to-earn gaming network reported a 39% increase in scholarships on its platform. Interestingly enough, this ties into data that proves the resilience of crypto-native gaming. While everything takes a hit in the bear market, gaming projects seem to still be performing, signaling a staying power that could lead to a more fruitful gaming space in the future. (Cointelegraph)
It can be hard to see the upsides in the barrage of negative news and pivoting portfolios, but a major hidden perk of this kind of market is the space it creates for innovation. It allows for a pause in a high-speed environment, giving developers and engineers a chance to build what’s next. While we may be in the woods of this bear market for a little while longer, it provides the breathing room that leads to more ideas for a better tomorrow, making it worth the wait.
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Top market movers as of May 27, 2022
- SushiSwap (SUSHI) +14.8%
- Ethereum Classic (ETC) +11.8%
- Tron (TRX) +9.6%
- Monero (XMR) +9.1%