Good morning everyone! If we close in the green today, that means there will have been 7 straight days of green — which hasn’t happened since December!
3 things you need to know:
One: Ernst & Young LLP acquires crypto asset accounting patents. EY bought patents and tech from Elevated Consciousness, Inc, which allows for connection to multiple exchanges and crypto wallets. This is part of EY’s strategy to offer blockchain and crypto related services.
“The uncertainty in applying existing guidance related to the timing, character and source of income generated in connection with trading and investing in crypto-assets requires the use of flexible solutions. By allowing taxpayers to model different potential outcomes, they are better able to assess their risk related to reporting taxable income for this new asset class. Technologies such as CAAT can help EY member firms and their clients effectively navigate this analysis. CAAT will allow us to help clients investing in crypto-assets, both in the fund space and beyond.”
Takeaway: As many of you know, calculating taxes for your crypto is extremely time consuming and confusing. The crypto space is in desperate need of more robust and reputable crypto accounting/taxation solutions, especially if businesses are going to be dealing in crypto assets. It’s very good to hear the EY are actively pursuing this space.
Two: The CFPB just opened up a regulatory sandbox for Blockchain. To translate, the CFPB is giving more leeway to fintech companies that want to experiment with new technology. The head of the CFPD, Mick Mulvaney told the Wall Street Journal that the new office spearheading the initiative will specifically examine cryptocurrencies, blockchain-based platforms, other private currencies and individual "microlending."
Hot take: Actual regulation is far out, but every step that governments take to encourage innovation is a good one. I view the U.S as being pressured into giving leeway to entrepreneurs as more lax regulation is introduced in other countries. One thing that regulators are always wary of is stifling innovation, and there’s a fine line between regulation that protects vs stagnates progress.
Three: Challenges to crypto legislation postponed until September in India’s Supreme Court. Today was supposed to be the final day in which arguments could be heard against India’s strict crypto regulation. The Indian Supreme Court moved the hearing to September 11 due to the fact that many parties had not yet filed their arguments.
Outlook: Sharan Nair, vice president of India’s CoinSwitch, believes that the extra time is a good thing and will ensure that the Supreme Court does not come to a hasty, misguided decision.
Important: People seem to sleep on the importance of open and accessible crypto infrastructure in India. Due to demonetization, the citizenry are acutely aware of the need for a robust currency. If Bitcoin were readily accessible in India, usage of the network would grow exponentially as the vast majority of the population actively distrusts their governments decisions when it comes to currency management.
Also in the news:
What I’m reading today:
EIP-999 is the one of the most hotly contested issues in Ethereum right now. In late 2017 a vulnerability was found in the Parity multi-sig contract code which rendered all funds in Parity multi-sig contracts, about 1% of all Ethereum, inaccessible. These funds will be locked forever unless Ethereum hard forks and unlocks the contract. That is what EIP-999 proposes to do.
This is controversial for many reasons. Notably, many people argue the EIPs (Ethereum Improvement Proposals) should be limited to tech improvements, instead of using EIPs for governance functions. Some are afraid that if EIP-999 gets approved it will encourage many more proposals that aim to simply recover funds. It’s not exactly the core developer’s job to determine which funds have been legitimately lost due to matters out of their control, nor should that necessarily be a reason that funds should be returned.
Personally, I believe the funds should be unlocked, but I understand both sides of the argument.
Around the corner:
3rd annual DC Blockchain conference takes place on July 26th
0x is launching V2 of it’s protocol on July 30th
For BTC, the chart & advice is the same. Nothing much has changed, but with every day that passes around the 7.4k -7.5k level I get more convinced there will be a retracement to 7.2k before the continued run upwards.
Since I believe there is likely to be a retracement, I'm mostly in BTC. If BTC moves upwards, I will be looking at scooping up some of the stronger alts on the market.
Fear & Greed
Fear and greed is being dragged down by the massive alt blood bath that we are witnessing. Momentum for BTC is incredibly strong right now, and likely quite overbought. Alts are having a tough time due to rapid BTC appreciation. People are expecting BTC to either rise rapidly or fall rapidly, both of which would have negative impact on alt-coins. This means that people are fleeing alts right now, and it will likely continue to be that way until this cliff (look at the 1hr chart) that BTC is on evaporates.
❤️ Links if you want to support CryptoAM ❤️
Sign up for Robinhood and get a free stock (worth anywhere from $5-$200)
Leverage trade Bitcoin on Bitmex (10% off fees)
Trade Altcoins on Binance
Earn.com ($1 in BTC free for sign ups)
BTC Address: 1DyxmdvDBFRUP6E8ddh5xxRGJKfidgAzyF
ETH Address: 0x24042BAd591F17c1beC9e413487eE12EC1ceAcd0