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Crypto
Analysis | Tech winners from Trump’s 2024 platform: crypto, AI and Elon Musk
The 16-page platform, proposed by Trump and adopted by Republican delegates Monday ahead of next week’s Republican National Convention, calls for boosting rather than restricting cryptocurrency and artificial intelligence. “Republicans will pave the way for future Economic Greatness by leading the World in Emerging Industries,” it promises.
Critics counter that the platform’s policies could lead to harm for consumers while abetting those emerging industries’ worst actors at the expense of real innovation.
The Republican Party’s top tech priority, per the document, appears to be promoting cryptocurrency.
“Republicans will end Democrats’ unlawful and unAmerican Crypto crackdown and oppose the creation of a Central Bank Digital Currency,” the platform asserts. “We will defend the right to mine bitcoin, and ensure every American has the right to self-custody of their Digital Assets, and transact free from Government Surveillance and Control.”
Trump’s pose as the pro-crypto candidate could be a savvy move, contended Chris MacKenzie, senior director of communications at the Chamber of Progress, a left-of-center trade group that receives funding from tech companies. In an open letter on Tuesday, his group called on President Biden to support bipartisan cryptocurrency legislation that is widely viewed as industry-friendly, noting that 18 million Americans hold or trade cryptocurrency.
“We see this as an opportunity for him to … take the mantle of being the crypto-positive candidate away from Trump, who has really worked to make that part of his campaign,” MacKenzie said.
That would be misguided, some consumer advocates say.
Boosting cryptocurrency is an odd plank for a major party, given the relatively minor role it plays in the broader economy, said Robert Weissman, president of the consumer advocacy group Public Citizen. He said its prominent place in the Republicans’ platform likely reflects the heavy lobbying effort by cryptocurrency interests, which he said is “obviously influencing politicians of both parties.”
“The enforcement standards currently being applied that Republicans propose to repeal or roll back are designed to protect Americans from scams, rip-offs and fraud, which has been prevalent in the crypto industry,” Weissman said. “Effectively this should be read as, ‘We aim to promote more fraud on everyday Americans.’”
The Republican platform also calls for repealing Biden’s executive order on AI.
“We will repeal Joe Biden’s dangerous Executive Order that hinders AI Innovation, and imposes Radical Leftwing ideas on the development of this technology,” the platform reads. “In its place, Republicans support AI Development rooted in Free Speech and Human Flourishing.”
The sweeping order, which Biden signed in October 2023, placed new safety obligations on AI developers and called on federal agencies to mitigate the technology’s risks while spurring its responsible development. My colleagues Elizabeth Dwoskin, Drew Harwell and Cat Zakrzewski reported in May that an influential tech lobbying group had been laying the groundwork for a possible future Trump administration to dismantle those rules and funnel money into AI grants and contracts instead.
But it’s not clear how many AI companies actually want the order repealed.
“For American companies to continue to grow and lead in innovation domestically and around the world, U.S. policymakers need to help set the global norms for AI,” said Julia Massimino, executive vice president for government affairs at the Information Technology Industry Council, a global tech trade association, in an emailed statement. She said the group urges policymakers to prioritize policies that “build trust in the technology” while supporting its beneficial uses.
Suresh Venkatasubramanian, a Brown University computer science professor who helped craft the Biden administration’s thinking on AI, told Tech Brief that a hands-off approach to AI development “might have made sense” in the technology’s formative years. But he said “we are well past that point today.”
“We have mountains of evidence on why and how we need to govern AI systems that affect people’s rights, opportunities, and access to vital services,” Venkatasubramanian said.
The GOP’s platform includes one more tech-adjacent priority: Bolstering commercial space exploration.
“Under Republican Leadership, the United States will create a robust Manufacturing Industry in Near Earth Orbit, send American Astronauts back to the Moon, and onward to Mars, and enhance partnerships with the rapidly expanding Commercial Space sector to revolutionize our ability to access, live in, and develop assets in Space,” the document says.
A prime beneficiary of government investment in commercial space exploration would likely be Elon Musk, the billionaire who controls SpaceX, Tesla and X. In recent years, Musk has been increasingly vocal about his conservative views, and in 2022 he urged his massive following on X to vote Republican in the midterm elections. He has not endorsed a candidate for president, though he said after an impromptu March meeting with Trump that he’s “leaning away from Biden.”
The platform did not mention Section 230, the tech liability shield that Trump sought to repeal as president, or antitrust enforcement against tech giants, which ramped up under the Trump administration before the Biden administration adopted an even tougher line.
Meta to remove more posts about ‘Zionists’ in push to fight antisemitism
Meta is more aggressively removing some social media posts containing the word “Zionist” when it appears to be a proxy for Jew — an effort to counter a wave of antisemitism online after the start of the Israel-Gaza war, our colleague Naomi Nix reports for Tech Brief.
Meta announced Tuesday that it’s expanding its existing hate speech policy to remove more content attacking “Zionists” when it is not critiquing the political movement but appears to be spreading antisemitic stereotypes or calling for harm against Jews or Israelis “under the guise of attacking Zionists,” the company said in a blog post.
The social media giant currently bans all attacks on people based on race, religion, nationality or sexual orientation, including posts that spread “harmful stereotypes” or dehumanize people. Under that policy, Meta has treated the word Zionist as a proxy for Jewish or Israeli in limited circumstances, such as comparing them to rats — a known antisemitic trope.
Now, Meta will remove more content that includes the word Zionist, such as posts that claim Zionists are running the world or controlling the news media, or posts that compare Zionists to pigs, filth or vermin.
Meta has been discussing the potential policy change with civil society groups for months. And while the shift has already earned the company support from some Jewish groups, it’s likely to bring criticism from some digital rights activists and pro-Palestinian groups, who have argued the new approach will stifle legitimate critiques of the Israeli government and Zionism during a catastrophic war.
U.S. and allies take down Russian ‘bot farm’ powered by AI (Joseph Menn)
In first, federal regulators ban messaging app from hosting minors (Cristiano Lima)
U.S. plans up to $1.6 billion in funding for packaging computer chips (New York Times)
Microsoft is hiking the price of Xbox Game Pass Ultimate and launching a new ‘Standard’ tier (The Verge)
Google is no longer claiming to be carbon-neutral (Bloomberg)
Amazon says it reached a climate goal seven years early (New York Times)
Microsoft and Apple drop OpenAI seats amid antitrust scrutiny (Financial Times)
Google Maps’ speedometer finally comes to iOS and CarPlay (Engadget)
Kamala D. Harris’s awkward quotes are being turned into internet memes (Taylor Lorenz)
Your partner wants your online passwords. Say no. (Tatum Hunter)
Tesla’s Secret: Elon Musk’s car gets VIP treatment for self-driving AI (Business Insider)
Victor Peng, president at the Santa Clara, Calif.-based semiconductor firm Advanced Micro Devices, has been selected to join the Steering Committee of the National Semiconductor Technology Center Consortium, where he will represent the private sector in a volunteer capacity.
- The Federalist Society hosts a fireside chat with the FTC’s Melissa Holyoak on Wednesday at noon.
- The Senate Commerce Committee holds a hearing, “The Need to Protect Americans’ Privacy and the AI Accelerant,” Thursday at 10 a.m.
- The congressional internet Caucus Academy hosts an event, “Tech Platforms and the 1st Amendment: Impact of Supreme Court Rulings,” on Friday at noon.
That’s all for today — thank you so much for joining us! Make sure to tell others to subscribe to Tech Brief. Get in touch with Cristiano (via email or social media) and Will (via email or social media) for tips, feedback or greetings!
Crypto
Bitcoin Supply Overhang: 6.6 Million BTC Bought Above Current Price
On-chain data shows a chunk of the Bitcoin supply has its cost basis above the current spot price, which could potentially shape volatility if BTC rebounds.
Bitcoin Supply Overhang Could Dictate Volatility & Selling Pressure
As pointed out by CryptoQuant community analyst Maartunn in a new post on X, over 6.6 million BTC is being held above the latest spot price of the cryptocurrency. The on-chain indicator of relevance here is the “Supply In Loss,” which measures, as its name suggests, the total amount of Bitcoin that’s currently carrying some net unrealized loss.
The metric works by going through the transaction history of each token in circulation to determine the price at which it was last transacted on the blockchain. If this previous transfer price was more than the current spot price for any coin, then that particular token is considered to be in a state of loss.
The Supply In Loss adds up all coins fulfilling this condition to find the total situation on the network. A counterpart indicator called the Supply In Profit accounts for the supply of the opposite type.
Now, here is the chart shared by Maartunn that shows the trend in the Bitcoin Supply In Loss over the last few years:
As displayed in the above graph, the Bitcoin Supply In Loss shrunk to a value of zero as the asset’s price set its all-time high (ATH) above $126,000 back in October, but with the market downturn that has followed since then, the indicator’s value has shot up.
Today, around 6.6 million tokens of the cryptocurrency sit below cost basis, equivalent to a third of the BTC supply in circulation. The recent highs in the Supply In Loss represent the highest degree of pain in the market since 2023.
In another X post, the analyst has shared the chart for another Bitcoin indicator, this one called the UTXO Realized Price Distribution (URPD). The URPD contains information about how much BTC was bought last at each of the levels that the asset has visited in its history.
From the chart of the URPD, it’s visible how the Bitcoin supply that’s in loss is distributed across the various levels right now. A few levels are particularly prominent in the degree of supply that they carry, while some others are notably thin with coins.
Generally, investors who are in loss look forward to a retest of their cost basis so that they can get their money “back.” Once this happens, some of these hands decide to exit, fearing that BTC will go down again in the near future. This selling can make large supply clusters above the spot price, potential points of volatility.
Considering that a large portion of the supply is underwater right now, a venture back to higher levels could be met with selling pressure for Bitcoin.
BTC Price
Bitcoin has made some recovery during the past day as its price has returned to $88,600.
Crypto
Grayscale Predicts 10 Crypto Investing Themes Fueling Upside Across 6 Crypto Sectors
Crypto
Cryptocurrency’s Next Chapter: ETF Outflows and Fintech Solutions – OneSafe Blog
The cryptocurrency market is in a state of flux, particularly as Bitcoin and Ethereum ETFs face a wave of significant outflows that raise eyebrows regarding investor confidence. Meanwhile, fintech startups are stepping up to the plate, especially in areas like crypto payroll and solutions powered by stablecoins. Let’s delve into how these trends are redefining the landscape of digital assets and what they may signify going forward.
ETF Outflows: A Sign of Caution?
Recent reports indicate that there have been substantial outflows from spot Bitcoin (BTC) and Ethereum (ETH) ETFs, amounting to around $188.6 million. This suggests that investors are treading carefully amidst ongoing regulatory uncertainties, which could lead to a reassessment of positions in these major cryptocurrencies. BlackRock’s IBIT, for example, experienced a record single-day outflow of $91.37 million, which has undoubtedly sent ripples through the market.
The implications of these outflows are immediate and significant. Investor confidence is shaken, and the market dynamics are in flux. While BTC and ETH ETFs are seeing withdrawals, the Solana ETFs are drawing inflows, hinting at a dichotomy in investment behavior. This outflow trend may set the stage for increased volatility in key market assets.
Stablecoins: The New Frontier for Institutions
Despite the aforementioned outflows, institutional interest in stablecoins is on the rise. More and more, investors are seeking safer, low-volatility options. Stablecoins like USDC and USDT are increasingly seen as attractive alternatives. This isn’t just a retreat from cryptocurrencies; it’s a strategic pivot toward more stable financial instruments.
The growing acceptance of stablecoins is evident in various sectors. Businesses are utilizing them to facilitate international payments, benefiting from low fees and quick settlements. This trend underscores the evolving nature of cryptocurrency, positioning stablecoins as a viable alternative to traditional fiat currencies.
Crypto Payroll: A Fintech Revolution
Fintech startups are leading the charge in innovation, especially in the sphere of crypto payroll solutions. By opting for stablecoins to compensate employees, these companies are streamlining their payment processes while hedging against the risks of cryptocurrency volatility. It’s a way to attract tech-savvy talent while navigating regulatory complexities.
This move toward crypto payroll is particularly advantageous for startups operating in a global marketplace. With stablecoins, these companies can handle cross-border payments efficiently, thereby cutting costs and improving operational efficiency. This trend points to a larger movement towards adopting digital currencies in daily business operations.
The Case for Blockchain in Cross-Border Payments
The rise of stablecoins carries significant implications for cross-border payments. Traditional methods, such as SWIFT, are often burdened with high fees and protracted processing times. Blockchain technology, on the other hand, allows for almost instantaneous transactions at a fraction of the cost. This is particularly beneficial for businesses involved in international trade, enabling them to conduct financial operations smoothly.
Moreover, the adoption of crypto payroll solutions is gaining traction in various sectors, including gaming and streaming. Companies are increasingly offering salaries in cryptocurrencies, tapping into a trend that appeals to younger, tech-oriented employees. This innovative approach not only boosts employee satisfaction but also positions businesses as forward-thinking competitors.
Regulatory Challenges Ahead
As the cryptocurrency landscape shifts, so too does the regulatory environment. Fintech startups are adapting by developing user-friendly platforms that emphasize compliance and risk management. By utilizing stablecoins and regulated platforms, businesses can navigate the complexities of the changing regulatory landscape while enhancing their operational capabilities.
The integration of decentralized finance (DeFi) solutions is also becoming more prominent, providing SMEs with alternative financing avenues as regulations tighten. This approach allows businesses to access capital while remaining compliant with new regulatory frameworks, setting the stage for success in a fast-evolving market.
Summary: A New Era for Cryptocurrency
The recent outflows from Bitcoin and Ethereum ETFs mark a crucial juncture in the cryptocurrency market. However, the rise of fintech innovations, particularly in stablecoin adoption and crypto payroll solutions, offers a glimmer of hope for the future. As businesses maneuver through regulatory challenges and shifts in investor sentiment, the integration of digital currencies into everyday operations is likely to gain momentum.
In summary, while the current landscape may be filled with uncertainty, fintech startups are showcasing adaptability and resilience, paving the way for a new chapter in cryptocurrency. By embracing innovation and focusing on compliance, these companies are not only weathering the storm but also shaping the future of digital assets.
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