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Pro-XRP Lawyer Agrees SEC Sued Binance and Coinbase to Allow Wall Street to Catch Up
June 23, 2023
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Attorney Deaton joins other investors to allege that the SEC sued Binance and Coinbase so that Wall Street could catch up with crypto.

Cryptocurrency enthusiasts have continued to allege that the SEC’s widespread crackdown against crypto businesses was to pave the way for United States-based financial firms.

Interestingly, CryptoLaw founder attorney John Deaton also shares this sentiment. Attorney Deaton agreed with Bitcoin proponent Preston Pysh’s tweet, alleging that SEC’s lawsuit against Coinbase and Binance was part of an effort to allow Wall Street firms to catch up with crypto.

Pysh pointed out that large United States financial institutions like BlackRock, Citadel Securities, and Fidelity Digital Assets are all applying for Bitcoin ETFs and spot exchanges a few days after the SEC sued Binance and Coinbase.

Consequently, Pysh noted that this past year had been a massive inside job between Wall Street parasites and government regulators to allow these financial institutions to catch up.

Pysh Said“I’m sorry, but it’s hard not to see the past year as a coordinated inside job between Wall Street and regulators. Blackrock, Fidelity, Citadel, Schwab, and Deutsche Bank all applied for Bitcoin ETFs right after SEC’s actions against Binance and Coinbase. It feels like a catch-up strategy orchestrated by Wall Street parasites and government regulators.”

In response, attorney Deaton said, “I think I agree.” The pro-XRP lawyer attached a short video clip of an interview where he commented on the matter.

According to Deaton, SEC Chair Gary Gensler’s attack on the industry allowed Wall Street to enter and crash the market.

Custodia Bank CEO Shares Same Sentiment

Aside from Deaton and Pysh, other influential personalities in the industry are also making similar claims. Earlier this week, Caitlin Long, CEO of Custodia Bank, said it is not a coincidence that Wall Street firms are entering the crypto space amid SEC’s widespread crackdown.

“All of a sudden, we’ve got these big Wall Street firms that are coming into crypto right after the runway’s been cleared,” Long said in a recent interview.

Wall Street Firms Enter Crypto Amid SEC’s Crackdown

Recall that the United States SEC sued the two-largest crypto exchanges- Coinbase and Binance, earlier this month. The SEC accused the exchanges of facilitating the trading of unregistered securities in the United States. The regulator also labeled more than 15 crypto assets as securities through the lawsuits, including ADA, SOL, MATIC, and BNB.

Shortly after the SEC sued Binance and Coinbase, some of the largest U.S. financial firms made moves to offer crypto-related services.

On Tuesday, the industry saw the launch of a new crypto exchange dubbed EDX Markets (EDX). Backed by Fidelity Digital Assets and Citadel Securities, the exchange offers four cryptocurrencies- bitcoin (BTC), Ethereum (ETH), bitcoin cash (BCH), and Litecoin (LTC). 

Before EDX’s launch, BlackRock, the world’s largest asset manager, applied for a license to launch a spot Bitcoin exchange-traded fund (ETF). Interestingly, WisdomTree also applied with the SEC, seeking approval for a Bitcoin ETF. 

Notably, the SEC has not yet approved the launch of a spot Bitcoin ETF. Whether BlackRock or WisdomTree will be the first firms to launch spot Bitcoin ETFs remains to be seen.

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The Great Onboarding: US Government Anchors Global Economy into Web3 via Pyth Network

For years, the crypto world speculated that the next major cycle would be driven by institutional adoption, with Wall Street finally legitimizing Bitcoin through vehicles like ETFs. While that prediction has indeed materialized, a recent development signifies a far more profound integration of Web3 into the global economic fabric, moving beyond mere financial products to the very infrastructure of data itself. The U.S. government has taken a monumental step, cementing Web3's role as a foundational layer for modern data distribution. This door, once opened, is poised to remain so indefinitely.

The U.S. Department of Commerce has officially partnered with leading blockchain oracle providers, Pyth Network and Chainlink, to distribute critical official economic data directly on-chain. This initiative marks a historic shift, bringing immutable, transparent, and auditable data from the federal government itself onto decentralized networks. This is not just a technological upgrade; it's a strategic move to enhance data accuracy, transparency, and accessibility for a global audience.

Specifically, Pyth Network has been selected to publish Gross Domestic Product (GDP) data, starting with quarterly releases going back five years, with plans to expand to a broader range of economic datasets. Chainlink, the other key partner, will provide data feeds from the Bureau of Economic Analysis (BEA), including Real Gross Domestic Product (GDP) and the Personal Consumption Expenditures (PCE) Price Index. This crucial economic information will be made available across a multitude of blockchain networks, including major ecosystems like Ethereum, Avalanche, Base, Bitcoin, Solana, Tron, Stellar, Arbitrum One, Polygon PoS, and Optimism.

This development is closer to science fiction than traditional finance. The same oracle network, Pyth, that secures data for over 350 decentralized applications (dApps) across more than 50 blockchains, processing over $2.5 trillion in total trading volume through its oracles, is now the system of record for the United States' core economic indicators. Pyth's extensive infrastructure, spanning over 107 blockchains and supporting more than 600 applications, positions it as a trusted source for on-chain data. This is not about speculative assets; it's about leveraging proven, robust technology for critical public services.

The significance of this collaboration cannot be overstated. By bringing official statistics on-chain, the U.S. government is embracing cryptographic verifiability and immutable publication, setting a new precedent for how governments interact with decentralized technology. This initiative aligns with broader transparency goals and is supported by Secretary of Commerce Howard Lutnick, positioning the U.S. as a world leader in finance and blockchain innovation. The decision by a federal entity to trust decentralized oracles with sensitive economic data underscores the growing institutional confidence in these networks.

This is the cycle of the great onboarding. The distinction between "Web2" and "Web3" is rapidly becoming obsolete. When government data, institutional flows, and grassroots builders all operate on the same decentralized rails, we are simply talking about the internet—a new iteration, yes, but the internet nonetheless: an immutable internet where data is not only published but also verified and distributed in real-time.

Pyth Network stands as tangible proof that this technology serves a vital purpose. It demonstrates that the industry has moved beyond abstract "crypto tech" to offering solutions that address real-world needs and are now actively sought after and understood by traditional entities. Most importantly, it proves that Web3 is no longer seeking permission; it has received the highest validation a system can receive—the trust of governments and markets alike.

This is not merely a fleeting trend; it's a crowning moment in global adoption. The U.S. government has just validated what many in the Web3 space have been building towards for years: that Web3 is not a sideshow, but a foundational layer for the future. The current cycle will be remembered as the moment the world definitively crossed this threshold, marking the last great opportunity to truly say, "we were early."

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US Dept of Commerce to publish GDP data on blockchain

On Tuesday during a televised White House cabinet meeting, Commerce Secretary Howard Lutnick announced the intention to publish GDP statistics on blockchains. Today Chainlink and Pyth said they were selected as the decentralized oracles to distribute the data.

Lutnick said, “The Department of Commerce is going to start issuing its statistics on the blockchain because you are the crypto President. And we are going to put out GDP on the blockchain, so people can use the blockchain for data distribution. And then we’re going to make that available to the entire government. So, all of you can do it. We’re just ironing out all the details.”

The data includes Real GDP and the PCE Price Index, which reflects changes in the prices of domestic consumer goods and services. The statistics are released monthly and quarterly. The biggest initial use will likely be by on-chain prediction markets. But as more data comes online, such as broader inflation data or interest rates from the Federal Reserve, it could be used to automate various financial instruments. Apart from using the data in smart contracts, sources of tamperproof data 👉will become increasingly important for generative AI.

While it would be possible to procure the data from third parties, it is always ideal to get it from the source to ensure its accuracy. Getting data directly from government sources makes it tamperproof, provided the original data feed has not been manipulated before it reaches the oracle.

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