Crypto Recap: Today’s Highlights

Members of the United States House Financial Services Committee are urging Meta, formerly known as Facebook, to disclose any plans it may have involving blockchain and cryptocurrency. This comes after it was discovered that Meta has five active trademark applications related to digital assets. The committee believes that these applications indicate Meta’s intention to expand its involvement in the digital assets ecosystem, despite previous claims that it was not working on any digital assets projects. The trademark filings cover various services related to crypto and blockchain, including trading, exchange, payments, transfers, wallets, and infrastructure.

In other news, Alameda Research, a hedge fund associated with FTX, has dropped its lawsuit against Grayscale Investments. The lawsuit was filed in March 2023 and sought a court order against Grayscale’s management fees. The decision to drop the lawsuit comes after Grayscale converted its Grayscale Bitcoin Trust into a spot ETF. A spokesperson for Grayscale confirmed the dismissal and emphasized that the lawsuit was without merit. The drop in the lawsuit coincides with significant outflows from the Grayscale Bitcoin Trust, which have contributed to the decline in Bitcoin’s price.

Coinbase’s chief legal officer, Paul Grewal, has criticized the United States Government Accountability Office (GAO) for its report on crypto’s use in evading sanctions. The report blames cryptocurrencies for facilitating sanction evasion but acknowledges that the decentralized nature and public ledger of cryptocurrencies can actually help trace transactions and identify illicit actors. It also recognizes the limited use of digital assets as a means of payment. Additionally, the report suggests that implementing global standards may improve compliance with anti-money laundering regulations.

Overall, United States lawmakers are pressuring Meta to reveal its intentions regarding blockchain and crypto, Alameda Research has dropped its lawsuit against Grayscale, and Coinbase’s chief legal officer has criticized the GAO’s analysis on crypto and sanctions evasion. These developments highlight the ongoing scrutiny and challenges surrounding the regulation and utilization of cryptocurrencies in the United States.