FIT21 crypto bill passed by the US House. In DeFi, MetaMask might add Bitcoin support soon, Aave tops $20bn deposits, and L2s have a $121m drain risk.
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FIT21 Crypto Bill Passed by US House of Representatives

FIT21 Crypto Bill Passed by US House of Representatives

Date:
May 23, 2024
| Issue
#
285

Happy Bitcoin Pizza Day! Today is the tenth anniversary of Laszlo Hanyecz's purchase of two pizzas for 10,000 Bitcoin. While it's become a yearly tradition to calculate how much those would be worth today (~$70m fyi), it's important to acknowledge that this was the first real use case of using BTC as a payment tool. It's what set the wheel in motion for us to enjoy a $70k per coin price today.

Before moving on to the top stories of the day, we just received the Nvidia earnings report, which exceeded expectations and included a 10:1 stock split. Following the news, NVDA jumped 9% in less than two minutes. We are currently monitoring how the AI cryptocurrency sector will react.

FIT21 Crypto Bill Passed by US House of Representatives

The U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21), marking the first comprehensive crypto legislation voted on in the full House. The bill, which aims to regulate the crypto industry, was supported by 71 Democrats, including former Speaker Nancy Pelosi.

FIT21 grants more power to the Commodity Futures Trading Commission to oversee crypto spot markets and “digital commodities,” and includes provisions for stablecoins and anti-money laundering. Despite opposition from the White House, it is eager to work with Congress on a regulatory framework for digital assets. The passage of FIT21, seen as a “massive turning point” by the Blockchain Association, signals a shift in Congress’s view of the crypto industry.

MetaMask To Add Bitcoin For Over 30 Million Users Next Month

MetaMask, the top cryptocurrency wallet with over 30 million users, is planning to add support for Bitcoin, marking a significant step in bridging two major cryptocurrencies. While the exact timeline and functionality are not confirmed, the addition could happen within the next month and might initially offer limited features. MetaMask facilitates Web3 features like decentralized applications (dApps) and NFTs.

With Bitcoin recently also expanding its dApps and NFT ecosystem, it remains to be seen how MetaMask will enhance user experience with these Bitcoin features. Currently, MetaMask uses an Ethereum-compatible token, Wrapped Bitcoin (WBTC), to bridge Bitcoin to Ethereum’s decentralized apps, as well as the newer Bitcoin MetaMask Snap option, which is still in an early beta phase.

Aave Tops $19.5Bn In Deposits As DeFi Lending Interest Raises

Aave, the largest decentralized lending protocol, has seen its crypto deposits reach $19.5 billion, a level not witnessed since the crash of Terra’s UST stablecoin two years ago. This growth is a testament to DeFi’s recovery from the 2022 downturn that erased two-thirds of the industry’s market value, according to DL News. The price of the AAVE token is up 9.70% in the last seven days.

Aave, which is built predominantly on Ethereum and its Layer 2 blockchains, offers traders leverage, amplifying their potential gains and losses. The recent raise of the SEC approval odds for spot Ether ETFs from 25% to 75% by Bloomberg Intelligence analysts has further fueled a 20% increase in the cryptocurrency’s value, which now has a snowball effect on the whole Ethereum ecosystem.

Hacking One Wallet Could Drain 12 Ethereum L2s Of $121M

A single multisignature crypto wallet, which has permissions from 12 different blockchain networks, including Zora, Aevo, Hypr, Orderly, Ancient8, Lyra, Mode, Pgn, Parallel, and Metal, poses a potential risk of $121 million in losses if compromised. These networks, all created using the Conduit rollup creation software, use the same wallet for tasks like upgrading the network’s bridge.

However, transactions require at least three out of five team signatures, reducing the risk of compromise. Conduit founder Andrew Huang plans to upgrade the system to require five out of seven signatures for further security. Despite the potential access to all funds, the actual risk is mitigated by the multisignature requirement and the upcoming decentralization of Layer 2s.

Data of the day

Ethereum 'beta plays' are one of the most popular topics in crypto right now. Essentially, investors are looking for altcoins that could outperform ETH following the potential approval of spot Ether ETFs. While some prefer Layer 2 networks and top DeFi protocols, others anticipate an increase in memecoins.

These are the current leaders before tomorrow's announcement.

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More breaking news

  • WisdomTree, one of the first asset managers to have its cryptocurrency ETPs prospectus approved by the UK’s Financial Conduct Authority, is set to list its Physical Bitcoin and Physical Ethereum exchange-traded products on the London Stock Exchange on Tuesday, May 28.
  • Hong Kong’s privacy watchdog has ordered the Worldcoin Foundation to halt all operations in the region, citing violations of local privacy regulations due to the collection of facial and iris data from over 8,300 individuals.
  • Binance, the world’s largest crypto exchange, saw its subsidiary Binance.US win an appeal against the Emergency Suspension Order by a Florida state regulator, according to a recent ruling by the Florida First District Court of Appeal.
  • Coinbase, in partnership with Meta, Kraken, Ripple, Gemini, the Global Anti-Scam Organization, and Match Group, has launched the ‘Tech Against Scams’ coalition to combat online fraud and financial schemes across various tech sectors like social media, crypto, finance, and dating apps.
  • Nasdaq has filed updated 19b-4 forms for BlackRock’s and five other spot Ethereum exchange-traded fund proposals, respectively, following the SEC’s request for amendments, a necessary step before spot ether ETFs can become effective and begin trading.

For the latest updates on digital asset markets, follow us on X @Datawalletcom.