As Washington attempts to get its arms around the rapidly growing cryptocurrency industry, policy makers in the Biden administration and on Capitol Hill have identified stablecoins as an initial target for tighter regulation. From a report: Often billed as one-to-one representations of a currency like the dollar, stablecoins have recently exploded in popularity as investors use them for trading other cryptocurrencies. There are dozens of stablecoins, though a handful pegged to the dollar account for most of the market value, which grew roughly 500% in the 12 months ending in October, according to a report from the Biden administration.

Both Democrats and Republicans want to create new safeguards to help ensure that one stablecoin is quickly redeemable for one dollar, while at the same time warding off broader risk to financial markets. But despite bipartisan agreement about the need for new federal action on stablecoins, policy makers remain at odds about how and when to take it. The Biden administration is asking lawmakers to pass legislation that would treat stablecoin issuers like banks, a step that Republicans and some Democrats oppose in favor of a lighter statutory touch. Other Democrats are skeptical of compromising with Republicans on the issue at all, instead pushing the Biden administration to take more aggressive steps itself. How -- and if -- Congress resolves the debate over the roughly $185 billion stablecoin market is an early test of whether Washington will ultimately write new laws or wield existing frameworks to regulate the broader $2 trillion cryptocurrency industry.

Fast Company reviews the Bitcoin 2022 conference held in Miami this week — arguing that it was actually Ethereum that sparked 2021's boom in cryptocurrenies. (And that with NFTs and DAOs, Ethereum still remains the flashier, main driver of popular crypto culture.)

Their conclusion? There's "a real sense of desperation for some kind of star power that can elevate Bitcoin from digital gold for the techno-libertarian set to the true mainstream cultural movement it needs to be in order to actually catch on." In fact, the issue of what influencers or celebrities can do for the Bitcoin community came up directly on Thursday morning, during a panel featuring Odell Beckham Jr., Serena Williams, Aaron Rodgers, and Cash App's crypto product lead, Miles Suter. Beckham and Rodgers have both made headlines recently for taking their salaries in Bitcoin; Williams is heavily involved in the Bitcoin startup world.... It was pretty far away from the high energy radiating from the world of NFTs, and it was clear that the event's bigger names aren't sure what else to do other than just tell the audience to buy Bitcoin over and over again. A lot of people make fun of NFTs, but they're an easier cultural product to point to and talk about than trying to have a fun conversation about lightning networks....

Bitcoin's attempts at going mainstream feel like a real two-steps-forward-one-step-back situation. Its most vocal supporters see it as a war-ending miracle technology. Alex Gladstein, the Human Rights Foundation's chief strategy officer led a panel on Thursday that argued it could lead to peace on Earth. It's not uncommon to hear presenters at Bitcoin 2022 argue that Bitcoin could end all wars forever. But that flies in the face of the conference's wilder, bawdier attractions — the big robot bull statue, the wild after-parties, the endless panels about cancel culture and Twitter drama.

And these competing attitudes within the world of Bitcoin came to a head on Thursday afternoon, when chaos briefly erupted in the conference's main stage when it was announced that Barstool Sports founder Dave Portnoy had dropped out of his much talked-about panel, titled "Bitcoin Is Fuck You Money". Portnoy has not issued any explanation for why he dropped out, but he did spend the rest of the afternoon live tweeting the PGA Masters Tournament. For someone who claims to be all in on the technology, the so-called "baron of Bitcoin" didn't even stay for his panel.

"Fuck you, Dave," the emcee gleefully told the crowd as they cheered and booed in response.
The article reports that other speakers at the conference included:

• Former presidential candidate Andrew Yang
• Shark Tank's Kevin O'Leary
• Paypal and Palantir co-founder Peter Thiel

But the article ultimately argues that the conference "feels like a low-level comic convention that's being held in the same event space as an economic forum."

Chainalysis is a software for tracing cryptocurrency, "to turn the digital underworld's preferred means of exchange into its Achilles' heel," writes Wired.

This week they describe what happened when that company's co-founder discovered that for two yeras, hundreds of users of a child pornography-trading site — and its administrators — "had done almost nothing to obscure their cryptocurrency trails..." and "seemed to be wholly unprepared for the modern state of financial forensics on the blockchain." Over the previous few years, [Internal Revenue Service criminal investigator Chris] Janczewski, his partner Tigran Gambaryan, and a small group of investigators at a growing roster of three-letter American agencies had used this newfound technique, tracing a cryptocurrency that once seemed untraceable, to crack one criminal case after another on an unprecedented, epic scale. But those methods had never led them to a case quite like this one, in which the fate of so many people, victims and perpetrators alike, seemed to hang on the findings of this novel form of forensics.... Janczewski thought again of the investigative method that had brought them there like a digital divining rod, revealing a hidden layer of illicit connections underlying the visible world....

When Bitcoin first appeared in 2008, one fundamental promise of the cryptocurrency was that it revealed only which coins reside at which Bitcoin addresses — long, unique strings of letters and numbers — without any identifying information about those coins' owners. This layer of obfuscation created the impression among many early adherents that Bitcoin might be the fully anonymous internet cash long awaited by libertarian cypherpunks and crypto-anarchists: a new financial netherworld where digital briefcases full of unmarked bills could change hands across the globe in an instant. Satoshi Nakamoto, the mysterious inventor of Bitcoin, had gone so far as to write that "participants can be anonymous" in an early email describing the cryptocurrency. And thousands of users of dark-web black markets like Silk Road had embraced Bitcoin as their central payment mechanism.

But the counterintuitive truth about Bitcoin, the one upon which Chainalysis had built its business, was this: Every Bitcoin payment is captured in its blockchain, a permanent, unchangeable, and entirely public record of every transaction in the Bitcoin network. The blockchain ensures that coins can't be forged or spent more than once. But it does so by making everyone in the Bitcoin economy a witness to every transaction. Every criminal payment is, in some sense, a smoking gun in broad daylight. Within a few years of Bitcoin's arrival, academic security researchers — and then companies like Chainalysis — began to tear gaping holes in the masks separating Bitcoin users' addresses and their real-world identities.
The article describes some investigative techniques — like pressuring exchanges for identities, tying a transaction to a known identity, or even performing an undercover transaction themselves. "Thanks to tricks like these, Bitcoin had turned out to be practically the opposite of untraceable: a kind of honeypot for crypto criminals that had, for years, dutifully and unerasably recorded evidence of their dirty deals.

"By 2017, agencies like the FBI, the Drug Enforcement Agency, and the IRS's Criminal Investigation division had traced Bitcoin transactions to carry out one investigative coup after another, very often with the help of Chainalysis.

"The cases had started small and then gained a furious momentum...."

Thanks to long-time Slashdot reader Z00L00K for sharing the article.

The International Monetary Fund "has indicated it will not give El Salvador a much-needed loan unless it drops bitcoin" as one of the country's legal tenders, reports the Los Angeles Times. And meanwhile the "bitcoin bond" proposed by El Salvador has been "delayed indefinitely."

But the government has taken other actions:
After a dramatic spike in killings here over a single weekend last month, Salvadoran President Nayib Bukele's reaction was swift — and extreme. He sent soldiers into poor neighborhoods to round up thousands of people who he claimed were gang members, then paraded them in front of news cameras in their underwear and handcuffs.

He tweeted pictures of detainees who had been bruised and bloodied by security forces, suggesting they "maybe fell" or "were eating fries with ketchup." And he started feeding the nation's prisoners two meals a day instead of three, warning that if violence continued, "I swear to God that they won't eat a single grain of rice."

It is a distinct look for Bukele, who has been focused in recent months on presenting himself to the world as a modern tech innovator on a quest to turn El Salvador into a cryptocurrency paradise. Not only is Bukele now embracing the mano duro techniques of past Latin American leaders, he is going much further, using the homicide spree — which left 87 people dead in three days — as a pretext for suspending civil liberties and attacking the press.

In recent days, Bukele and his loyalists in the Legislative Assembly ordered a state of emergency that restricts freedom of association, suspends the norm that detainees be informed of their rights at the moment of arrest and denies prisoners access to lawyers....

That Bukele would use the spate of homicides as a pretext to further consolidate power is no surprise to many of his critics, who believe he may be preparing to stay in office past 2024, when he is supposed to step down, even though El Salvador's constitution bans consecutive presidential terms.

But they also say that there may be another motive for his new tough-on-crime stance: diverting attention from the deepening failure of his cryptocurrency experiment.

Decentralized finance (DeFi) firm Truflation is building a new gauge to track inflation independent from the government and in real-time. CoinDesk reports: Think of it as a competitor to the Consumer Price Index (CPI), and one where officials can't move the goalposts. "The framework that [the government] is using is a hundred years old ... and they have continuously tried to evolve that versus taking a fresh approach in an age where we've got everything computerized," Truflation founder Stefan Rust told CoinDesk in an interview. The team started building Truflation after former Coinbase (COIN) Chief Technology Officer Balaji Srinivasan challenged Web 3 developers to build a censorship-resistant inflation feed, claiming that "the centralized state isn't going to provide reliable inflation stats," and promising an investment of $100,000. On Friday it was announced that Truflation won the challenge.

The key difference between the CPI and the Truflation index is that while the government uses survey data to measure inflation, Truflation looks at price data. The CPI is measured in the form of a survey that collects about 94,000 prices per month for commodities and services and 8,000 rental housing units for the housing component. While the Truflation index is based on the same calculation model as the widely used CPI, it is different because it measures and reports inflation changes daily by using current real-market price data from sources like Zillow, Penn State and Nielsen, among others. About 40% of the data that is being looked at is the same goods basket that the Bureau of Labor Statistics uses. The remaining 60% is being substituted with data from other sources. Truflation, which runs on Chainlink and is therefore accessible and visible for everyone, currently measures a 13.2% inflation rate, as opposed to 7.9% measured by the CPI in March.

Blockstream and Jack Dorsey's Block, formerly Square, are breaking ground on a solar- and battery-powered bitcoin mine in Texas that uses solar and storage technology from Tesla. Tesla's 3.8 megawatt solar PV array and 12 megawatt-hour Megapack will power the facility. From a report: Blockstream co-founder and CEO Adam Back, a British cryptographer and a member of the "cypherpunk" crew, told CNBC on the sidelines of the Bitcoin 2022 conference in Miami that the mining facility is designed to be a proof of concept for 100% renewable energy bitcoin mining at scale.

[...] Miners provide demand to these semi-stranded assets and make renewables in Texas economically viable, according to Castle Island Venture's Nic Carter. The constraint is that West Texas has roughly 34 gigawatts of power, five gigawatts of demand, and only 12 gigawatts of transmission. You can think of bitcoin miners as temporary buyers who keep the energy assets operational until the grid is able to fully absorb them. Back said the off-grid mine, expected to be completed later this year, highlights another key tenet of the bitcoin network: Miners are location agnostic and can "do it from anywhere without local infrastructure."

Robinhood Markets (HOOD) said Thursday it has activated its crypto wallet for 2 million "eligible" customers, making digital asset transfers broadly possible in the long-firewalled investments app. CoinDesk reports: Chief Product Officer Aparna Chennapragada made the announcement on stage at the Bitcoin 2022 conference in Miami. Only a handful of wallet beta testers could move bitcoin (BTC), ether (ETH), dogecoin (DOGE) and a handful of other traded coins in and out of Robinhood's walled garden before. Now, all waitlisted customers outside of regulatory no-go zones Nevada, New York and Hawaii can do so. Additionally, she said Robinhood will add support for bitcoin transactions on the Lightning Network, the speedy, low-cost settlement layer for Bitcoin. "For the larger community this is a fantastic way" to access bitcoin cheaply and in a green way, she said, adding that BTC is the top recurring buy on the app.

Still, Robinhood's multi-asset wallet falls short of true functionality. It cannot plug into Ethereum-based services as MetaMask does. It cannot accept ERC-20 tokens, non-fungible tokens (NFT) or any asset outside of Robinhood's trading list. Tokens generated by airdrops and forks won't work either. "Any NFTs sent to a Robinhood Ethereum address may be lost and unrecoverable," the FAQ page said. Staking also appears to be off-limits for now. Tenev has previously acknowledged customers' desire for the yield-earning feature and said during last quarter's earnings call that Robinhood was investing in the necessary tech. A staking service would have to be "compliant," he said.

Users won't be charged for moving their Robinhood-based crypto into wallets that have such abilities. The company said it will apply estimated gas fees but not withdrawal fees to requested outbound transfers. There's a $5,000 daily cap on outbound transfers and newly acquired crypto stays put until the transaction settles, the web page said. Further, users must undergo an identity check and enable two-factor authentication to access the wallet.

U.S. Treasury Secretary Janet Yellen said on Thursday crypto asset regulations should support responsible innovation while managing risks, sticking to the contours of a recent White House executive order that was well-received by the crypto market. From a report: In a speech on digital assets policy released by the Treasury, Yellen said that in many cases regulators already have authorities that can manage crypto risks and provide appropriate oversight of new types of intermediaries such as digital asset exchanges. "Our regulatory frameworks should be designed to support responsible innovation while managing risks -- especially those that could disrupt the financial system and economy," Yellen said in the excerpts of her speech to be delivered at American University in Washington. "As banks and other traditional financial firms become more involved in digital asset markets, regulatory frameworks will need to appropriately reflect the risks of these new activities," she said.

An anonymous reader quotes a report from Motherboard: The NFT marketplace OpenSea is now facing at least three lawsuits over stolen cartoon apes after lawyers for a New York man filed a lawsuit in New York State Supreme Court claiming that his Bored Ape Yacht Club NFT was taken from him due to what he characterized as "security vulnerabilities" of the OpenSea platform. Lawyers unaffiliated with the cases told Motherboard that, whatever the merits of the individual suits, the situation has the potential to cause trouble for the $13 billion Web3 startup, often referred to as the "eBay of NFTs," as it could potentially reveal its inner workings and invite a torrent of other suits that the company will be forced to defend against. "I think they're sitting on a ticking bomb," said Max Dilendorf, a lawyer specializing in digital assets, cryptocurrency, and asset tokenization who is not involved in any of the Bored Ape lawsuits.

The newest $1 million lawsuit, filed on behalf of Michael Vasile, is similar to another lawsuit filed in February by the same lawyers on behalf of an aggrieved Texas man. In both cases, the men say they lost their apes because of alleged bugs in OpenSea's code that the company knew about but did not take appropriate steps to fix. A third ape-related lawsuit, filed in the U.S. District Court for the District of Nevada and also naming the NFT marketplace LooksRare and Yuga Labs, the company behind the Bored Ape Yacht Club, claimed OpenSea did not "implement common sense and reasonable security measures'' against fraud and instead put "all the onus" on users. Altogether, the cases against OpenSea and other platforms could prove to be an arena where the courts figure out if the platform or the individual should be to blame when people lose thousands of dollars in a matter of seconds to illicit and irreversible blockchain scams.

Regardless of the suits' merits, the unaffiliated lawyers said the OpenSea suits could place the popular NFT marketplace in a difficult position, as anything less than an all-out victory could invite a spate of similar lawsuits. Dilendorf added that OpenSea had reason to consider settling the case in order to avoid offering up the company's internal emails and documents during the discovery process. "I would not want to open up a Pandora's Box," Dilendorf said. "Because looking at how OpenSea operates the platform from a 10,000-foot view, it's very, very questionable."

German authorities shut down the server infrastructure for the Russian darknet marketplace Hydra, seizing ~$25.2 million worth of Bitcoin in the process, Germany's Federal Crime Police Office (BKA) announced on Tuesday. From a report: Hydra is a large marketplace on the dark web that serves as a hub for drugs, stolen credit card information, counterfeit bills, fake documents, and other illegal goods or services. The market primarily caters to criminals in Russia and surrounding nations. "Treasuremen," or dealers connected with the site, push drugs throughout the region by hiding them in geo-tagged pickup locations. With the shutdown of the German-based server, authorities are now launching an investigation into the "unknown operators and administrators" of Hydra, whom they suspect of selling narcotics and engaging in money laundering. German authorities say they have been investigating the marketplace with the help of the US since August 2021. The BKA told The Verge that no arrests have been made as of yet.

The U.K.'s top regulator has been cracking the whip on crypto companies, but the government just sent a strong message on its blockchain game plan: The British are coming. The U.K. government on Monday unveiled a big push into crypto, including a plan to mint its own NFT. From a report: "I am announcing today that the Chancellor has asked the Royal Mint to create a non-fungible token -- an NFT... to be issued by the Summer, an emblem of the forward-looking approach we are determined to take," John Glen, economic secretary to the Treasury, said in a speech. The announcement was part of an ambitious plan to "make the U.K. a global hub for crypto-asset technology" and "to ensure firms can invest, innovate and scale up in this country," Rishi Sunak, chancellor of the Exchequer, also said in a statement.

Almost half of all cryptocurrency owners in the United States, Latin America and Asia Pacific purchased the digital assets for the first time in 2021, according to a new survey from U.S. cryptocurrency exchange Gemini. From a report: The survey of nearly 30,000 people across 20 countries, which was conducted between November 2021 and February 2022, shows 2021 was a blockbuster year for crypto, with inflation in particular driving adoption in countries that have experienced currency devaluation, the report found. Brazil and Indonesia lead the world in crypto adoption, Gemini found, with 41% of people surveyed in those countries reporting crypto ownership, compared with 20% in the United States and 18% in the United Kingdom.

Bitcoin hit a milestone Friday "that gets the world ever closer to the moment when the final new bitcoin will enter the world," reports Axios. "The supply of coins broke 19 million..."

"Bitcoin is hard-coded so that it has both a predictable emission schedule and a hard cap of 21 million bitcoin."

Bitcoin was created to be money "with a fixed supply that no one can change," the article points out. But it'll be a long time before the price of bitcoin actually feels any effect: The next network-level event likely to impact price is the next time the block reward drops in half, which will happen in a little over two years.... The 18 millionth bitcoin was mined in 2019, but the 21 millionth won't be mined until roughly 2140, provided the network sticks to the plan. That's because every four years the emission schedule drops in half.

Twitter co-founder/former CEO Jack Dorsey made a remarkable statement Saturday on Twitter. "The days of Usenet, IRC, the web...even email (with PGP)...were amazing.

"Centralizing discovery and identity into corporations really damaged the internet.

"I realize I'm partially to blame, and regret it." Within two hours, his statement had been retweeted or quote-tweeted 4,700 times — while his original tweet drew 22,900 likes (and attracted over 2,000 comments). But it's not clear why 45-year-old Dorsey is reflecting nostalgically on 1990s-era bullletin board and chat technologies.

The only thing in the news today about Jack Dorsey is a small blurb from The Information linking to a larger (paywalled) article titled "Jack Dorsey, Marc Andreessen and the Makings of a Crypto Holy War" The war of words, blocks, and memes between Jack Dorsey and Marc Andreessen wasn't only fascinating because of the billionaire egos at play. They really did seem to be grappling with an important question: Is there a superior economic system waiting to be rolled out, and if so, who should control it...? [T]he debate was an important one, with roots in both men's pasts and hints of a continuing war between Dorsey's Bitcoin maximalists and Andreessen's "crypto polyamorists."

Hundreds of people have lost access to their cryptocurrency, and recovering those lost Bitcoins has become a lucrative business. "Motherboard talks to some of the people trying to get back their crypto, and the people who are making that happen in the newest episode of CRYPTOLAND on YouTube," writes Slashdot reader em1ly. Here's an excerpt from an article accompanying the episode: It's hard to know exactly how much Bitcoin is locked forever in wallets whose owners forgot the password, or in hard drives thrown out. There's plenty of anecdotes of desperate people trying to recover their lost Bitcoin. Chainalysis, a firm that tracks cryptocurrencies to help companies and law enforcement, estimated in 2018 that up to 23% of all Bitcoin is lost forever -- around 3.79 million bitcoins or the equivalent of around $170 billion at today's conversion rate. Naturally, some of the people who own those lost Bitcoin are willing to do anything to get them back. And there's a market for companies or individuals who promise to recover the lost Bitcoin for a fee.

There's the mysterious Wallet Recovery Service, run by an anonymous person who goes by DaveBitcoin, or Crypto Asset Recovery, a father and son startup based in New Hampshire. In essence, what these organizations do is try as many password or passphrase combinations as fast as they can -- or as fast as their password cracking software and hardware will allow -- until they get the right one for a specific wallet they're trying to break into. They brute force the password, but they need help from their customers -- some guess, at least, of what their password may have been. Charlie Brooks, the son in the duo that runs Crypto Asset Recovery, told Motherboard that their success rate is 32 percent, without counting those customers that they believe have almost no chance of getting their Bitcoin back (who they decline to take on as clients).

An anonymous reader quotes a report from Decrypt: When a company like Nike finds someone using its brand without permission, it can ask the courts to order the unauthorized goods to be destroyed. Nike has done this in the past, but its latest trademark lawsuit comes with a twist -- the products it wants to "destroy" are NFTs, which are inscribed permanently on the Ethereum blockchain. The case in question involves Detroit-based StockX, a site that lets people buy and sell used brands, including Nike sneakers. [...] In a complaint filed last month in New York federal court, Nike accused StockX of ripping off its brand in order to cash in on a "gold rush market" for NFTs. As a remedy for StockX's alleged infringement of its trademarks, Nike wants the company to turn over its profits and stop the NFT sneaker sales. It also wants a judge to "order that StockX be required to deliver to Nike for destruction any and all Vault NFTs."

According to Alexandra Roberts, a trademark law professor at the University of New Hampshire, it's fairly common for companies to ask to destroy goods that infringe their IP -- there's even a law that entitles them to do that. But whether a court will grant the order is likely to be informed by what the brand owner is looking to destroy. Where do NFTs fit into this? It's an open question since the courts have never had to address it before. And even if the New York court agrees to order the destruction of the StockX NFTs, there's the question of how exactly Nike would go about doing that.

Records on the blockchain show that StockX has indeed inscribed the NFTs on Ethereum, which means they are indestructible except in the extremely unlikely event that developers agree to fork the blockchain to get rid of them. According to some, the most practical thing for Nike to do would be to send the NFTs to a so-called burner wallet. This wouldn't destroy them but still achieve the same purpose: "This means that the best outcome for a brand that is seeking to have NFTs destroyed may be to have them sent to a burn address, which still does not actually destroy them but renders them incapable of being transferred anymore," writes the Fashion Law Blog.

European Union lawmakers were set on Thursday to back tougher safeguards for transfers of bitcoin and other cryptocurrencies, in the latest sign that regulators are tightening up on the freewheeling sector. From a report: Two committees in the European Parliament have thrashed out cross-party compromises to be voted on. Crypto exchange Coinbase has warned the rules would usher in a surveillance regime that stifles innovation. The $2.1 trillion crypto sector is still subject to patchy regulation across the world. Concerns that bitcoin and its peers could upset financial stability and be used for crime have accelerated work by policymakers to bring the sector to heel. Under the proposal first put forward last year by the EU's executive European Commission, crypto firms such as exchanges would have to obtain, hold, and submit information on those involved in transfers. That would make is easier to identify and report suspicious transactions, freeze digital assets, and discourage high-risk transactions, said Ernest Urtasun, a Spanish Green Party lawmaker helping to steer the measure through the parliament. The Commission had proposed applying the rule to transfers worth 1,000 euros ($1,116) or more, but under the cross-party agreement this 'de minimis' rule has been scrapped -- meaning all transfers would be in scope.

Texas has started requiring new large-scale cryptocurrency miners to seek permission to connect to the state's power grid in anticipation of a flood of requests expected to drive up electricity demand. From a report: The Electric Reliability Council of Texas is requiring utilities to submit studies on the impact of miners and other large users tapping the grid before they can get "approval to energize," according to a March 25 notice from the state's main grid operator. Ercot members voted Wednesday to form a task force to hash out details of an interim plan that's ultimately meant to protect the grid from being overwhelmed.

As the SEC signals that it wants more oversight of digital asset markets, the industry makes it clear it prefers to be supervised by the smaller CFTC. From a report: It was a classic Washington networking party. Sam Bankman-Fried, the co-founder and chief executive officer of FTX, one of the world's largest crypto trading platforms, held court on a February evening in a private room at the Park Hyatt hotel on the edge of Georgetown. Drinks flowed from an open bar, and hors d'oeuvres were served to the clutch of congressional aides, financial lobbyists, and former regulators. The goal of Bankman-Fried, a 30-year-old billionaire, was to showcase his new lobbying operation -- and to persuade influential Washingtonians that crypto needs more regulation. It may seem strange that a crypto magnate is seeking federal oversight. But as lawmakers and bureaucrats grapple with how to police a fast-growing and risky $2 trillion market, new rules seem inevitable. In March, President Joe Biden signed an executive order calling on federal agencies to work out policies on crypto. Bankman-Fried, whose company last year bought the naming rights to the Miami Heat's basketball arena, is pushing his own ideas of what regulation ought to look like, as well as who his main watchdog should be.

He's arguing for a bigger role for the U.S. Commodity Futures Trading Commission. The relatively small agency monitors futures contracts in basic goods such as crude oil, corn, and pork, as well as financial derivatives such as interest-rate swaps. It also oversees U.S. futures and options contracts on the popular cryptocurrencies Bitcoin and Ether. A U.S. affiliate of the Bahamas-based FTX offers such crypto derivatives, so part of its business is already under the CFTC's purview. Bankman-Fried wants Congress to expand the CFTC's authority to cover trading in the coins themselves. Currently, the CFTC only claims jurisdiction over cash token markets in cases of suspected fraud or manipulation that could affect the performance of crypto derivatives. In February testimony to the Senate, he said this lack of clarity is bad for investors and the industry. Other trading platforms are also starting to see the merits of being overseen primarily by the CFTC, say industry leaders who asked not to be named talking about private discussions.

Greenpeace and other environmental groups launched a new campaign today to push the Bitcoin network to slash its growing greenhouse gas emissions. The Verge reports: The goal of the campaign, dubbed "Change the code, not the climate," is to switch up the energy-hungry process of verifying transactions and mining new Bitcoins. [...] In order to validate transactions, Bitcoin miners rely on specialized hardware to solve complex puzzles. Their computers gobble up a lot of energy in the process, and the miners get new tokens in return. It's a process called "proof of work," in which the energy used is sort of the price paid to verify transactions. The process is deliberately energy-intensive as a safety measure. The baked-in inefficiency is meant to discourage bad actors from manipulating the data because it would cost a lot of energy to do so.

The new campaign aims to move Bitcoin away from that energy-hungry proof of work process. The most popular alternative is called proof of stake. Cryptocurrencies that use proof of stake use vastly less energy because there are no puzzles to solve. Instead of essentially paying with electricity to participate in the process, you have to offer up some of your own tokens. This is supposed to prove that you have a "stake" in keeping the ledger accurate. If you mess anything up, you lose tokens as a penalty. While proof of stake might make solve a lot of Bitcoin's pollution problems, experts have been skeptical that miners would be willing to make the change. Miners invest a lot in their hardware and would be hard-pressed to abandon it. And some fans of proof of work maintain that it's the most secure way to maintain the ledger. "We know Bitcoin stakeholders are incentivized not to change," the campaign acknowledges on its website. "Changing Bitcoin would render a whole lot of expensive infrastructure worthless, meaning Bitcoin stakeholders will need to walk away from sunk costs -- or find other creative solutions."

As the Guardian notes, the campaign is launching a huge digital advertising push via the Wall Street Journal, New York Times, Marketwatch, Politico, Facebook and others. "Organizers are also taking legal action against proposed mining sites and using their large memberships to push bitcoin's biggest investors and influencers to call for a code change." Additionally, the campaign is urging people to tweet at cryptocurrency influencers to support the campaign.