The cryptocurrency world has been shaken this week with the latest developments from some of the biggest players in the industry. In Hodler's Digest for March 19-25, there are three major headlines that have caught everyone's attention.
Firstly, it seems that Coinbase is facing some regulatory scrutiny from the US Securities and Exchange Commission (SEC). The exchange received a Wells notice which indicates that enforcement action may be on the horizon. The SEC has been cracking down on cryptocurrencies recently with lawsuits against Ripple and Telegram. Coinbase is one of the biggest exchanges in the world so this news is significant for anyone who trades or holds cryptocurrencies.
Secondly, Do Kwon who is known as Terraform Labs' CEO was arrested in Montenegro over alleged assault charges. This comes as a shock to many people since Terraform Labs is behind projects such as Mirror Protocol and Anchor Protocol which have gained popularity within the cryptocurrency community. It remains unclear how this will affect Terraform Lab's operations moving forward.
Lastly, FTX announced plans to sell $95 million worth of stocks related to Mysten Labs - a blockchain startup focused on privacy-oriented solutions for decentralized finance (DeFi) applications. FTX has been expanding rapidly lately by acquiring Blockfolio and partnering up with various sports teams including Major League Baseball teams Miami Marlins and Philadelphia Phillies.
These developments show how volatile yet exciting it can be investing in cryptocurrencies. As more mainstream companies enter into crypto space they must navigate complex regulations while trying not to step on any toes along their way towards innovation within decentralized finance applications like DeFi products or exchanges such as Coinbase where millions trade daily without regulatory issues until now when SEC targets them potentially leading enforcement action looming ahead if found guilty under current laws governing financial practices involving digital assets.