Ethereum price falls as senators put DeFi and DAOs under regulatory lens
A bill allegedly leaked yesterday seeks to increase regulation of many key Ethereum-based offerings.
- The total market capitalization of the digital asset industry has risen by 2.1% since June 7.
- Despite its relatively weak price action, Ethereum’s share of the crypto market has risen to 17.5%, its highest in over a week.
- Cryptocurrency exchange Crypto.com recently unveiled a new startup accelerator worth $100 million, focusing exclusively on the decentralized finance (DeFi) and Web3 markets.
The past week has seen Ethereum (ETH) fall from a relative high of $1,900 to approximately $1,700, bringing the altcoin’s losses to -7.8%. ETH’s 12-month profit/loss ratio now stands at -30%, with the currency trading at $1,797.
This poor performance comes amid the leak of a draft bill concerning crypto assets, particularly Ethereum niches such as DeFi, stablecoins and decentralized autonomous organizations (DAOs). As per the bill, regulators will increase their focus on user protection, with crypto products like DAOs, DeFi protocols now being required to register with relevant authorities before their launch.
Anonymous projects will find it hard to exist in the United States, with the leaked bill stating that platforms without the necessary legal affiliations may be liable to pay heavy tax penalties. On the subject, Dogecoin co-founder Billy Markus commented: “All they really gotta do is go hard after exchanges, and the party is over.”
Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, noted that the leaked document appears to only be a draft bill and may not be complete, final or even real. Cochran added: “I would say if it is real, and if it is passed in this form, it is good long-term for big entities but super painful near-term for 99% of crypto.”
Crypto.com released $100M accelerator for DeFi and Web3 startups
Cronos, a blockchain network developed by trading platform Crypto.com, recently launched its accelerator program that seeks to help spur the development of products within the DeFi, Web3 and metaverse arena. The initiative will dole out $100 million worth of funding to crypto projects in their seed and pre-seed stages.
The accelerator fund has been launched in conjunction with mainstream crypto entities, including Mechanism Capital, Spartan Labs, IOSG Ventures, OK Blockchain Capital and AP Capital. Successful applicants will receive $100,000–$300,000 as seed investment, with additional funding available if required.
Binance Coin faces massive bearish pressure
Over the last 24 hours, the price of Binance Coin (BNB) has dropped by nearly 7.3%, scaling as low as $275, its lowest level in three weeks. The currency faces further potential negative price action as its issuing firm Binance faces serious allegations of money laundering and securities rule breaches.
Disclosure: The author owns a range of cryptocurrencies at the time of writing.