BTC dominance climbs above 50%, more crypto legisltation

ICYMI: OG tickets to Dose of DeFi: Brooklyn have all been scooped up but general admission tickets will be released tomorrow. Excited to see ya’ll on June 23rd at Art + Cafe Bar. Thanks to Hudson River Trading and Caney Fork for sponsoring.

Every six months or so, it’s worth checking in on the breakdown of the overall crypto market and how value is distributed. This chart from Decentral Park’s latest newsletter, highlights the recent uptick in the BTC market share to 51% as ETH’s decline has been deeper than BTC’s. Note: this chart excludes stablecoins.

Monetary thinker and blogger John Paul Koning lists the four pieces of legislation introduced over the last 18 months in the US Congress as it relates to stablecoins. The most recent from Sen. Lummis and Sen. Gillibrand was just released last week and is aimed at the broader crypto space, putting most tokens that are sufficiently “decentralized” under the jurisdiction of the CFTC rather than the SEC. We argued last year that legislation was coming and that it would be bipartisan. Having a Democratic Senator from New York and a Republican Senator from Wyoming as co-sponsors is impressive, but this bill faces an uphill battle because it aims to cover so much (even DAOs!).

In reality, none of the bills that JP Koning lists has a realistic chance of passing but they are important first steps. In our view, stablecoins are the most pressing legislative priority. The Gottheimer bill would establish government-backed insurance for regulated stablecoins, while the Toomey bill focuses on establishing “payment stablecoins” so they avoid securities regulation. The STABLE Act, introduced in December 2020, would aggressively regulate stablecoin issuers by requiring them to obtain a bank charter.

Elsewhere: JP Koning also wrote this week on “Tether’s $10.5bn contraction”

• DXdao* month in review Link

• Maker governance facilitator LongForWisdom announces departure Link

• Lido considers selling 10k ETH from treasury to fund operations Link

• WSJ: Novogratz faces trial by fire to recover from Luna Link

• Flashbots: Why run mev-boost? Link

• Bloomberg: Blackrock start defects to DeFi Link

That’s it! Feedback appreciated. Just hit reply. Written in Brooklyn, where it’s grade-A summer.

Dose of DeFi is written by Chris Powers, with help from Denis Suslov and Financial Content Lab. Caney Fork, which owns Dose of DeFi, is a contributor to DXdao* and benefits financially from it and its products’ success. All content is for informational purposes and is not intended as investment advice.