The United Kingdom Financial Services and Markets Act’s provisions on a digital securities sandbox are scheduled to come into force in January 2024 after being presented to Parliament.
In a Dec. 18 publication, the U.K. government announced the Digital Securities Sandbox (DSS) regulations of the 2023 Financial Services and Markets Act, which were laid before Parliament, paving the way for crypto firms to test products and services in the country. According to the government, the regulations will take effect on Jan. 8, with the Bank of England and the U.K. Financial Conduct Authority operating the sandbox.
“The DSS will allow firms and the regulators to test the use of new technology across our financial markets,” says a memo explaining the bill. “In particular, this will involve trialling the use of developing technology (such as distributed ledger technology, or in general technology that facilitates what are commonly referred to as ‘digital assets’) to perform the activities of a central securities depository (specifically notary, settlement and maintenance), and operating a trading venue.”
The sandbox regulations were part of the Financial Services and Markets Act, signed into law in June after being introduced in 2022. The bill included guidelines allowing crypto firms to operate in the U.K. under a regulatory framework to promote innovative technologies while protecting consumers.
Lawmakers in the U.K. have moved forward with other bills to crack down on illegal uses of digital assets in the country. In October, Parliament passed the Economic Crime and Corporate Transparency Bill — which gave officials the authority to seize crypto — and moved forward with plans to regulate stablecoins.
Other jurisdictions, including Brazil and the European Union, have proposed similar regulatory sandboxes to explore tokenization use cases. In the United States, some officials within financial regulatory bodies like the Securities and Exchange Commission and Commodity Futures Trading Commission have also pushed for such sandboxes.
Zooko Wilcox is stepping down as the CEO of Electric Coin Company, the team behind privacy-focused cryptocurrency Zcash (ZEC).
ECC announced a change in leadership on Monday, with Josh Swihart promoted to replace Wilcox.
Picture of Wilcox speaking about the history of privacy on the internet. Source: ECC
Swihart previously worked at ECC as one of the firm’s vice presidents of growth from October 2018 to August 2023 but took four months off working as a part-time investor at investment services firm Denver Angels in Colorado, according to LinkedIn.
“We feel confident in Josh’s leadership — in finding product-market fit, unlocking new partnerships and collaboration, improving Zcash usability and increasing adoption,” ECC said in a Dec. 18 post.
“In addition to a vision for ECC and an optimistic passion for Zcash, Josh has a strong entrepreneurial, technical and product background,” the firm added.
I cannot begin anywhere else but to give my thanks and respect to @zooko. He breathed life into Zcash and has been its flag bearer – not just for the project but for human freedom. He is a hero.
Swihart said the firm will focus on increasing Zcash’s utility through user-focused products over the next few months and to better position ECC financially.
Wilcox — a self-described “human freedom maximalist” — reflected positively on his time building Zcash from the ground up in a Dec. 18 Medium post:
“It has been an incredible experience, and I’ll always be grateful that I had the opportunity to live out one of my science fiction dreams in reality.”
However, Wilcox said it was best for him and the company to part ways. “I don’t think this conflation of Zcash with me personally is healthy for me, and I don’t think it’s healthy for Zcash,” he said.
“Zcash’s role in human history is, and will be, much bigger than any individual,” Wilcox added.
The Zcash co-founder conceded that he had clashed with Swihart on how to best take Zcash forward, but said the two never disagreed on “why.”
Wilcox will remain in his role as a director on the board of the Bootstrap Project, the parent company of ECC. Alan Fairless, Christina Garman, Michelle Lai and Zaki Manian are also on that board.
Zcash is a privacy-focused blockchain and cryptocurrency that was launched on Oct. 29, 2016. ECC was founded two years earlier in 2014.
ZCash is based on Bitcoin’s codebase and, like Bitcoin (BTC), has a fixed supply of 21 million coins.
The news had no material impact on ZEC’s price, which is currently at $28.8, according to CoinGecko.
A mother of a San Francisco 49ers player was trying to pick up a family photo from a CVS in the Bay Area, but the wrong family was on the picture when she opened the package.
Tom Brady gives his daughter a hug during a game between the New England Patriots and the Philadelphia Eagles on September 10, 2023, at Gillette Stadium in Foxborough, Massachusetts.(Fred Kfoury III/Icon Sportswire via Getty Images)
“The photo my mom ordered to CVS,” Tonges captioned the TikTok. The picture showed the brother and sister along with two other siblings.
Then, she captioned a photo saying, “The photo my mom was given,” which showed the entire Brady family: His sons, Jack and Benjamin, and his daughter, Vivian.
The TikTok went viral, which prompted the future Hall of Fame quarterback to respond in the comments.
“My mom must have been printing out some photos in San Francisco,” Brady said with a laughing emoji.
Katie had also shared a text she got from her father.
“Mom sent in a picture of you kids to CVS to give grandma for Christmas. We just received them today and instead of you guys we get Tom Brady and his kids,” the text read, also with a bunch of laughing emojis.”
NFL legendary quarterback Tom Brady interacts with kids at Topps Hobby Rip Night at Wax, Packs, and Throwbacks in Linwood, N.J.(Fanatics/Topps)
Katie responded to Brady as well, saying, “Next time you’re in town we can do a photo swap!”
The Brady photo that was swapped appeared to be from a New England Patriots game, where the whole family is wearing the iconic No. 12 jerseys. The Patriots recently honored Brady with a lighthouse at Gillette Stadium after his illustrious career in Foxborough.
Now, the only question is whether each family kept the other’s picture. Katie hoped Brady’s mom did.
“Hoping his mom will frame our photo,” she said in the comments.
Former New England Patriots quarterback Tom Brady gestures as he speaks to fans as he is honored during halftime of the season-opening game between the Patriots and the Philadelphia Eagles at Gillette Stadium in Foxborough, Massachusetts, on September 10, 2023.(JOSEPH PREZIOSO/AFP via Getty Images)
Unstoppable Domains — a prominent provider of Web3 domains — recently expanded its offerings by incorporating traditional “.com” addresses.
This move marks the first instance of merging conventional Web2 domains with the evolving Web3 domain space. This integration aims to seamlessly connect the existing web infrastructure with the new, allowing users to engage with both types of domains on a single platform.
Integrating .com domains with blockchain technology goes beyond a technical achievement; it’s an effort to enhance user adoption and streamline the overall user experience.
The well-established familiarity of .com domains, deeply rooted in internet history, serves as a bridge for users transitioning into the blockchain realm, making adopting blockchain technology more accessible and inviting for a broader audience.
Unstoppable Domains CEO Matthew Gould told Cointelegraph: “Every wallet needs a domain to improve UX [user experience] for crypto. Otherwise, crypto adoption will be slower, just like internet adoption would have been slower if they used IP addresses instead of domains.”
This integration enhances individual experiences and addresses the broader industry need for a smooth transition from the traditional web to the decentralized Web3.
A spokesperson for Freename.io — a Web3 domains platform — told Cointelegraph, “Surely the familiarity of .com domains plays a significant role in making blockchain technology more accessible to a broader and already existing audience. This is because .com is the most recognized and indexed TLD in the Web2 industry.”
A top-level domain (TLD) is the final segment of a domain name — located after the last dot — used to specify a website’s category or country. Examples include .com, .org and country-specific endings like .uk or .jp.
Users can send crypto to a .com address linked to a wallet. Source: bvdigital.io
Attaching digital wallets to .com domains creates a consolidated platform, allowing users to oversee, track and interact seamlessly with traditional and crypto assets. This integration eliminates the need for users to navigate different systems, reducing friction and enhancing overall efficiency in managing financial resources.
The future of digital identity
The inclusion of .com domains in the blockchain realm marks a noteworthy change in how we manage digital identities. This departure from conventional practices suggests a future where the distinction between regular and blockchain-driven digital identities becomes less clear.
This could lead to a new way of thinking, putting users at the center and giving them more control over their online identities. This aligns with Web3 philosophy, which questions the traditional models of identity controlled by a central authority. Instead, it aims for a fairer system where identity management is more evenly distributed.
Gould said, “If domains truly are the user-friendly and adopted way for digital identity to emerge, then identity will be able to plug into the already rich ecosystem and market for domain names and standards like ICANN [Internet Corporation for Assigned Names and Numbers] that will accelerate adoption much more quickly than other digital identity solutions that have been.”
Beyond digital identities, the integration has the potential to redefine online privacy and security standards. Blockchain’s transparency and cryptographic security add a layer of protection, addressing concerns of data breaches and identity theft.
Additional developments and effects on adoption
Freename.io is another TLD and domain platform in Web3 that allows users to register and mint personalized Web3 TLDs. Ownership of a Freename Web3 TLD entitles users to a 50% passive income for every domain purchased on that TLD.
This presents a financial incentive, appealing to individuals and businesses seeking digital identities and additional financial benefits. This model could motivate users to engage with Freename.io, potentially driving adoption.
Additionally, Web3 domains from Freename serve as digital identities in the Web3 realm, replacing wallet addresses and offering users a unified username across various social networks. Furthermore, these domains can function as specific login credentials for decentralized applications, showcasing the versatility of Web3 domains in enhancing the user experience.
The simplicity of managing digital identities could encourage more users to adopt Web3 domains, particularly those less familiar with blockchain intricacies.
Freename.io is compatible with multiple blockchains, including Aurora, BNB Smart Chain, Cronos and Polygon. This allows users to choose the blockchain that aligns with their preferences or project requirements.
Ethereum Name Service (ENS), a decentralized domain name system on Ethereum, implements layer-2 interoperability using solutions like Arbitrum and Optimism to improve scalability and reduce costs.
The lowered costs and enhanced scalability could make it more appealing to a broader audience. This shift encourages users who may have been discouraged from getting involved in decentralized domains due to high fees on the Ethereum blockchain.
ENS also integrates web-integrated domain TLDs (.art, .box), enabling users to register browser-supported names through ENS. This introduces the concept of trading domain name system (DNS) names as nonfungible tokens on the Ethereum blockchain, expanding the utility of domain names.
ENS plans to make DNS import gasless in Q3, eliminating transaction costs and enhancing web accessibility to the ENS ecosystem. This move could attract traditional internet users by lowering entry barriers and making decentralized domain solutions more accessible to a broader audience.
San Francisco Federal Reserve President Mary Daly has suggested in an interview with the Wall Street Journal that cutting rates might be necessary to prevent overtightening as the central bank makes progress in fighting inflation.
Santandar Chief U.S. Economist Stephen Stanley joins Yahoo Finance Live to break down how the market is responding to the Fedspeak.
Stanley believes that the markets “went to town” after the December FOMC meeting, saying investors heard “the green light to pricing in more cuts.”
Looking ahead to 2024, that though inflation is falling, the decent may be “a little bit exaggerated in terms of the progress we’re getting in an underlying basis.” Stanley thinks there is a risk that the Fed cuts too early and that inflation reaccelerates as a result, causing the Fed to have to tight again, a scenario he shrugs off as “not the end of the world.”
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Video Transcript
JULIE HYMAN: Joining us now is Stephen Stanley, Santandar chief US economist. Good to see you, Stephen. Thanks for coming in. So what do we– you know, there’s always what the Fed Chair says and then sort of other Fed speak managing around it. How do we cut through that and figure out what they intend?
STEPHEN STANLEY: Right. Well, I’m not sure the message is totally inconsistent, I just think the markets really kind of took what Powell said last Wednesday and went to town with it. I mean, the projections showed three rate cuts next year. The markets already had well over that priced in and they just went and priced more. I think what they heard was green light to pricing in more cuts. And what you’re hearing now going back is literally very similar to what Powell said but the tone is a little bit different.
JOSH LIPTON: And Stephen, when you think next year and you look at inflation, what does the trajectory of inflation look like to you?
STEPHEN STANLEY: Yeah. Well, it’s coming down, but in my view, what we’re seeing now is a little bit exaggerated in terms of the progress that we’re getting on an underlying basis because there are certain categories which tend to be volatile and they’ve all been falling lately, right? So it kind of exaggerates the degree of progress that we’re seeing.
So I don’t want to say that the disinflation is going to stall out, but I think it’s going to slow down as we head into the early part of 2024. So I’m not quite in such a hurry as the markets are to think about early 2024 rate cuts.
JULIE HYMAN: So what do you think that is the biggest risk going into next year? It’s that– is it that the Fed sort of cuts too early, or is it that they cut too late at this point?
STEPHEN STANLEY: Oh, that’s tough. I mean, Powell has talked about how those risks are starting to even out I think. You heard all of last year Powell just pounding the table that we’re not going to let inflation get out of hand. We’re going to get it back to 2% no matter what. And now all of a sudden, as inflation is coming down, what we’re hearing is starting to sound more dovish.
So it almost sounds to me like the Fed is ready to declare victory and get on with it and start cutting rates. Everybody loves it when the Fed’s cutting rates, right? It’s not so popular when they’re raising. And so I do think it feels like there’s some risk that perhaps they go a little bit early, and then inflation re-accelerates. But I mean, look, that’s an easy fix, right? I mean, if they cut a little bit and then they have to go back and tighten again, it’s not the end of the world.
A United States court has entered an order against crypto exchange Binance and its former CEO Changpeng “CZ” Zhao, which will see Binance pay $2.7 billion and CZ pay $150 million to the Commodities Futures and Trading Commission (CFTC).
In a Dec. 18 statement, the CFTC announced that the U.S. District Court for the Northern District of Illinois had approved the previously announced settlement and concluded the enforcement action first issued by the CFTC in November.
“In formalizing the settlement initially announced on November 21 the court finds Zhao and Binance violated the Commodity Exchange Act (CEA) and CFTC regulations, imposes a $150 million civil monetary penalty personally against Zhao, and requires Binance to disgorge $1.35 billion of ill-gotten transaction fees and pay a $1.35 billion penalty to the CFTC,” wrote the CFTC in a statement.
This is a developing story, and further information will be added as it becomes available.
The NFL decided to suspend Pittsburgh Steelers defensive back Damontae Kazee for the remainder of the season, saying he violated player safety rules for his hit on Indianapolis Colts receiver Michael Pittman Jr. on Saturday.
Pittman laid out to make a catch at Lucas Oil Stadium when Kazee came in to knock the ball out, but placed a hit near Pittman’s neck and head area while he was mid-dive.
Pittman left the game with a concussion and Kazee was subsequently ejected from the contest.
Indianapolis Colts wide receiver Michael Pittman Jr. (11) is hit by Pittsburgh Steelers safety Damontae Kazee (23) during the first half of an NFL football game in Indianapolis Saturday, Dec. 16, 2023.(AP Photo/Michael Conroy)
Many have called out Kazee for hitting Pittman, who was defenseless in that moment. However, Tom Brady viewed the situation differently.
“Nobody likes seeing players get hurt. But hard hits happen. QBs should not be throwing the ball in areas where they are exposing their own teammates to these types of hits,” Brady wrote in the comments on an Instagram post. “Coaches need to coach better, QBs needs to read coverages and throw the ball to the right places and defenders should aim for the right hitting areas.
“To put the blame on the defense player all the time is just flat out wrong. Need better QB play!! It’s not OK QBs to get your WRs hit because of your bad decisions!”
Pittsburgh Steelers safety Damontae Kazee (23) celebrates after a play Saturday, Dec. 16, 2023, during a game against the Indianapolis Colts at Lucas Oil Stadium in Indianapolis.(Grace Hollars/IndyStar / USA TODAY NETWORK)
This isn’t the first time Brady has commented about quarterbacks having accountability with the throws they make during games. He noted in 2021 that a quarterback has “gotta protect yourself and your players. It shouldn’t be the responsibility of your opponent to protect you.”
Kazee, however, is a repeat offender when it comes to hits like this.
He had five previous fines for various unnecessary roughness penalties this season, totaling $59,030, per ESPN.
Tom Brady looks on during an NFL game. (Alex Slitz)
Kazee’s suspension would also include postseason play if the Steelers get into a playoff spot. However, their loss to the Colts pushed them down to 7-7, as Mike Tomlin’s group continues to spiral.
Scott Thompson is a sports writer for Fox News Digital.
Coinbase is continuing its efforts to ensure adequate legislation on cryptocurrency used as securities. After the United States Securities and Exchange Commission (SEC) denied Coinbase’s petition for rulemaking on cryptocurrency on Dec. 15, the crypto exchange appealed the decision on the same day.
Coinbase chief legal officer Paul Grewal promised immediate action as soon as the SEC’s denial became known. On Dec. 18, the U.S. Third District Court of Appeals ordered the SEC to file the record of its decision by Jan. 24, 2024.
In its appeal, Coinbase documented the lengthy process that was necessary to compel the SEC to respond to its petition. It called the SEC’s denial of its petition “arbitrary and capricious, an abuse of discretion, and contrary to law, in violation of the Administrative Procedure Act.” In addition:
“The Commission’s refusal to engage in rulemaking, even while it continues a campaign of regulation by enforcement against Coinbase and others that exceeds its statutory authority, flouts the APA [Administrative Procedure Act] and fundamental principles of fairness it embodies.”
The SEC’s denial letter faulted the Coinbase petition for lacking “text or the substance of any proposed rule” as required for petitioning. It went on to disagree with the petition’s claim that existing regulations were “unworkable” and state that the agency has discretion over the priority and timing of regulation. The denial was criticized by the crypto community.
SEC Chair Gary Gensler released a statement that closely followed the official denial.
Today the SEC denied Coinbase’s petition for rules for crypto. After 18 months of silence, we went to court to get the response the law requires. With appreciation for the Third Circuit, later today we’ll again seek its help by challenging the SEC’s abdication of its duty. ⬇️ pic.twitter.com/tFjiW53eF7
Nowadays, everyone has an opinion on artificial intelligence (AI) and its potential risks. Even Pope Francis — the head of the Catholic Church — warned humanity of AI’s potential dangers and explained what needs to be done to control it. The Pope wants to see an international treaty to regulate AI to ensure it is developed and used ethically. Otherwise, he says, we risk falling into the spiral of a “technological dictatorship.” The threat of AI arises when developers have a “desire for profit or thirst for power” that dominates the wish to exist freely and peacefully, he added.
The same feeling was expressed by the Financial Stability Oversight Council (FSOC), which is comprised of top financial regulators and chaired by United States Treasury Secretary Janet Yellen. In its annual report, the organization emphasized that AI carries specific risks, such as cybersecurity and model risks. It suggested that companies and regulators enhance their knowledge and capabilities to monitor AI innovation and usage and identify emerging risks. According to the report, specific AI tools are highly technical and complex, posing challenges for institutions to explain or monitor them effectively. The report warns that companies and regulators may overlook biased or inaccurate results without a comprehensive understanding.
Even judges in the United Kingdom are ruminating on the risks of using AI in their work. Four senior judges in the U.K. have issued judicial guidance for AI, which deals with AI’s “responsible use” in courts and tribunals. The guidance points out potentially useful instances of AI usage, primarily in administrative aspects such as summarizing texts, writing presentations and composing emails. However, most of the guidance cautions judges to avoid consuming false information produced through AI searches and summaries and to be vigilant about anything false being produced by AI in their name. Particularly not recommended is the use of AI for legal research and analysis.
Tether onboards FBI to demonstrate its compliance
Tether, the company behind the stablecoin Tether (USDT), disclosed letters directed to U.S. lawmakers addressing requests for intervention by the Department of Justice (DOJ) about the illicit use of its stablecoin. The letters aim to answer calls from Senator Cynthia Lummis and Representative French Hill from October, urging the DOJ “to carefully evaluate the extent to which Binance and Tether are providing material support and resources to support terrorism.”
Tether stated that it has a Know Your Customer program, a transaction monitoring system and a “proactive approach” to identifying suspicious accounts and activities. In addition, Tether said that clients’ reviews do not end with their registration and claimed it uses surveillance monitoring tools to track client activity continuously. The company also disclosed that it onboarded the Federal Bureau of Investigation (FBI) to its platform as part of collaboration efforts with law enforcement.
Crypto exchange KuCoin has agreed to pay $22 million to the State of New York and to bar state residents from using its platform, according to a stipulation and consent order filed in the New York Supreme Court. In addition, KuCoin “admits that it represented itself as an ‘exchange’ and was not registered as an exchange pursuant to the laws of New York State.” The company has agreed to close the accounts of all New York resident users within 120 days and to prevent New York residents from obtaining accounts in the future. In addition, it will restrict access to withdrawals to only within 30 days, leaving the remaining 90 days available for users to withdraw funds.
Four crypto crimes listed among the IRS top cases in 2023
The criminal investigation unit of the U.S. Internal Revenue Service has listed four crypto-related cases among the top 10 of its “most prominent and high-profile investigations” in 2023. Four significant cases in 2023 involved the seizure of cryptocurrency, fraudulent practices, money laundering and other schemes. Coming in at its third most high-profile investigation in the past year was OneCoin co-founder Karl Sebastian Greenwood, who was sentenced to 20 years in prison in September for his role in marketing and selling a fraudulent crypto asset.
The conversation over whether Florida State should be in the College Football Playoff reached Charles Barkley over the weekend and he backed the Seminoles’ bid.
Florida State finished the season undefeated and won the ACC Championship but to the eyes of the College Football Playoff Selection Committee, it wasn’t enough – especially without quarterback Jordan Travis, who was lost for the rest of the year due to an injury.
Charles Barkley is introduced to the new Phoenix Suns Ring of Honor during the Utah Jazz game at Footprint Center on Oct. 28, 2023, in Phoenix, Arizona.(Christian Petersen/Getty Images)
Barkley, who appeared on ESPN for the USC-Auburn men’s college basketball game over the weekend, didn’t understand why Florida State was penalized.
“Here’s my problem with the whole thing as a player, they penalize because they lost their starters,” he said, via On3 Sports. “I said, ‘Well, wait a minute, you showed total disrespect to the backups.’ That was my whole problem. Hey, you know how much I love coach Saban and Alabama. I mean, I don’t like Alabama, I like coach Saban. Winning with backups should have gave you brownie points, not penalize you.
Florida State Seminoles quarterback Jordan Travis a day after having surgery holds the football trophy with his teammates during the ACC Football Championship against the Louisville Cardinals on Dec. 2, 2023, at Bank of America Stadium in Charlotte, North Carolina.(John Byrum/Icon Sportswire via Getty Images)
“If we’re gonna play sports now where it only matters if you’re using your starters, I don’t want to be in that world. They won three games with a backup and another backup. To be honest with you, I’m really looking forward to the playoffs now that I went on my rant. I have zero idea who’s going to win those two games because we got four elite teams and I’m gonna be watching.”
College Football Playoff officials were pressed by Florida lawmakers to give reasons why Florida State didn’t make the Playoff.
Executive director Boo Corrigan wrote a letter to Sen. Rick Scott, R-Fla., over his concerns. He pointed to two reasons why Florida State wasn’t included.
“The protocol requires the Committee to take into consideration the unavailability of key players that may affect a team’s performance in the post-season. Simply put, Florida State is not the same team without its star quarterback. This caused the Committee to believe that there were indeed four teams that should rank higher than FSU.
Trey Benson of the Florida State Seminoles scores a touchdown against the Miami Hurricanes at Doak Campbell Stadium on Nov. 11, 2023, in Tallahassee.(James Gilbert/Getty Images)
“FSU’s strength of schedule was not as strong as the four teams that were ranked ahead of them. As I’m sure you are aware, strength of schedule is a key metric the Committee takes into consideration. If being undefeated without regard to a team’s strength of schedule was part of our protocol, other universities with undefeated records would have routinely been considered for the Playoff. There have been eight, counting Florida State, undefeated teams that did not make the Playoff. While this is the first year from a so-called (Power 5) Conference, strength of schedule remains a crucial factor.”
