To the Hill

Good morning. Today we've got coverage on the House Financial Services Committee hearings, that according to one crypto executive went "very, very well". We've also got more institutions piling into crypto, the growth of "GameFi", and more!  

What this is:
A "Top 5" of crypto, digital asset, and other blockchain related news sent to your inbox on a daily basis

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Top 5:

1. Crypto Executives Defend Industry as Congress Considers Oversight
On Wednesday, executives from Coinbase, FTX, Circle, Bitfury, Stellar Development, and Paxos appeared before Congress. The hearing, called by the House Financial Services Committee, aimed to improve lawmakers' understanding of crypto assets and where they fit into existing regulations. Rep. Maxine Waters (D-CA), a noted crypto critic, raised concerns about the lack of regulation, saying that:

"Currently, cryptocurrency markets have no overarching or centralized regulatory framework, leaving investments in the digital-asset space vulnerable to fraud, manipulation and abuse."

Crypto executives countered this point by arguing that cryptocurrencies don't fit neatly within existing financial regulations and that tailor-made legislation should be considered for the industry. Some members of Congress appeared to agree with this sentiment. The top Republican on the committee, Rep. Patrick McHenry of North Carolina, was one of those members:

“We don’t need knee-jerk reactions by lawmakers to regulate out of fear of the unknown rather than seeking to understand, that fear of the unknown and the move to regulate before understanding will only stifle American ingenuity and put us at a competitive disadvantage”

There's still a long road ahead for crypto regulation, but the general feeling coming out of the hearing was that it was productive and not contentious. If you'd like to watch a recording of the four and a half hour long session, you can find the video here.

2. Visa launches crypto consulting services in push for mainstream adoption
Visa is launching a new crypto consulting and advisory service to help their clients navigate the industry. The practice will be housed within their existing Consulting and Analytics division and will focus on offering advisory services to financial services companies, retailers, and other firms looking to roll out crypto features. Visa named UMB, an American bank, as an existing client. Visa has already made moves into the crypto space and currently offers crypto-linked cards, which processed $3.5 billion in digital currency transactions from October 2020 to September 2021.

3. "The Great Rebranding"
A simple frame to think about how the industry is expanding.

4. Crypto Play-to-Earn 'GameFi' Apps Surpass DeFi in User Popularity
According to crypto data tracker, DappRadar, almost 50% of active cryptocurrency wallets connected to decentralized applications in November were for gaming. DappRadar says they see 80-100 million transactions in games on a daily basis and many enthusiasts see more room to grow. For example, popular online games like Counter-Strike: Global Offensive can bring in more than 700,000 players a day (Editor's Note: I don't have the stats for Call of Duty, please do not email me about why it is better than Counter-Strike), while Axie, a popular blockchain powered game sees only around 104,000. Over the last 30 days, the top five gaming dapps have more than $14 billion of invested funds, according to DappRadar, which players can use to earn returns. In game digital goods can be rented out to other players with the renter and lessee splitting the gaming profits. Liam Labistour, the director of growth at Splinterlands, a trading card and gaming company built on the blockchain, says that rental and other income can reach $100,000 a month for some players.

5. Fidelity and Nexo are entering institutional lending market
Fidelity Digital Assets and Nexo, a crypto borrowing platform, are partnering to offer crypto custodial services, products, and lending services. The goal of the partnership is to provide institutional investors with a "comprehensive product line and legal infrastructure" to gain exposure to cryptocurrencies. Kalin Metodiev, co-founder and managing partner at Nexo on the partnership:

“Working with Fidelity Digital Assets is the latest milestone in our quest to offer a complete institutional platform and to onboard traditional finance companies into the digital asset ecosystem. Our client base will now have full use of our industry-leading credit and trading products with reliance on Fidelity Digital Assets’ bespoke custody and security solutions.”

Top Sharers of the Crypto Top 5:
1. Cameron S. - New York, NY
2. Jake Y. - Greenville, SC
3. Lauren A. - Nashville, TN

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.