Coinbase v SEC

Good morning. Today we've got coverage on FTX's plans to clear derivative trades, an IPO from Blockchain.com, and a big funding round for an Indian exchange. All that and more today in the CT5!

Programming note: the CT5 will be off this Friday and back on Monday

Market Update (as of 8:20am ET):

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Top 5:

1. Blockchain.com aims to go public this year. Crypto exchange and wallet service Blockchain.com has plans to go public this year and is in talks with investment banks to support an IPO. The company was last valued at $14 billion, after a Series D round of funding last month led by Lightspeed Venture Partners. The potential IPO comes as the company ramps up marketing in the US through a sponsorship deal with the Dallas Cowboys. Shares from competitor Coinbase have lost 60% since their IPO debut.

2. Indian crypto exchange CoinDCX raises $135 million. The funding round brings CoinDCX's valuation to $2.15 billion, double its value from just seven months ago. The exchange plans to use the capital to triple headcount to over 1,000 employees by the end of this year and continue to launch new products and services. CoinDCX will also look to continue spending on investor education initiatives. It currently runs the DCXLearn platform, which provides free courses on crypto and blockchain.

3. Coinbase Chief Legal Officer: SEC exchange definition ‘just doesn’t work’. Coinbase chief legal officer Paul Grewal blasted the U.S. Securities and Exchange Commission in a Twitter thread over its proposal to update its definition of an exchange, saying the SEC is “going beyond its authority." The proposal, published in January, would expand the definition of an exchange to include “systems that offer the use of non-firm trading interest and communications protocols to bring together buyers and sellers of securities.” Grewal argued that the new definition was broad enough to apply to decentralized finance (DeFi) platforms but did not consider how the new rule would impact decentralized exchanges or other DeFi protocols.

4. FTX plan said to face CFTC roundtable next month. A public discussion will be held on May 23rd to review the proposal from FTX.US to directly clear derivatives trades that are backed by margin. According to CFTC Chairman Rostin Behnam, "this proposal could end up leading to more efficient trading execution, less risk in the system.”

5. ANZ, Westpac, CBA blockchain bank guarantee platform raises $9.4m funding. Lygon, the blockchain-based bank guarantee platform backed by three of Australia’s biggest banks, ANZ, Westpac and Commonwealth Bank of Australia, said it raised $9.4 million in an oversubscribed funding round. Bank guarantees are often required when organizations rent properties, ensuring that the rent will be paid even if the tenant cannot. Lygon digitizes the process by providing efficiencies and authentication via the blockchain.

Updates and other stories:
- The Sandbox gears up to raise $400 million at a $4 billion valuation...Read More
- First Australian spot Bitcoin, Ether ETFs to go live next week...Read More
- El Salvador’s bid for bitcoin bonds sinks, IMF deal 'practically dead'...Read More

Top Sharers of the Crypto Top 5:
1. Donna Y. - Nashville, TN
2. Jake Y. - Greenville, SC
3. Forrest H. - Evansville, IN

External Resources:
1. Cryptopedia from Gemini - if you see a word, acronym, or phrase in this newsletter that you don't understand, there's a good chance you can find an explanation here
2. Crypto Explainer+ - intro level courses on Bitcoin, Ethereum, decentralized finance, NFTs, and more
3. Crypto Jobs! - looking for a new job? Check out this page from Anthony Pompliano with hundreds, if not thousands of listings

Disclaimer: The information contained in this newsletter shall not be understood or construed as financial advice. I am not an attorney, accountant, or financial advisor, nor am I holding myself out to be, and the information provided is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.