The Dypto Times - SEC: Staking Rewards Are NOT Securities Transactions

Do you guys know what one of the biggest complaints about crypto is from financial institutions? The murky regulatory waters. Security? Commodity? Something new? We don’t know, and neither does anyone else.

This week, the SEC put a stamp on one issue that has been a constant debate.

But that’s not all that happened this week. Let’s get after it.

From the Dypto Crypto Newsroom

GameStop Makes First Bitcoin Purchase of 4,710 BTC

TLDR

• Gamestop just dropped over half a billion dollars on Bitcoin.

• It’s the company’s first purchase of the token.

• With a single purchase, they now rank 13th among publicly traded Bitcoin Treasury Companies.

There are ways to do things and ways not to do things. And then there are people and companies that play by their own sets of rules. Most Bitcoin Treasury Companies are buying up a few dozen to a few hundred BTC at a time. That seems to be the “way to do things” many corporate entities have decided on.

Gamestop has entered the fray. And they aren’t playing around. They’re playing by their own rules.

Why it matters to crypto users.

GameStop’s Bitcoin purchase is yet another example of the convergence of tech and finance. It highlights the growing mainstream acceptance of Bitcoin and other blockchain-based assets.

As someone curious about entering the world of cryptocurrencies, following the actions of global brands like GameStop could provide a bit of a peek behind the curtain. Their decisions often reflect calculated risks informed by data, market trends, and the advice of specialists.

One thing that remains unclear is how this acquisition fits into their overall business model. Will they use Bitcoin as a holdings asset similar to Strategy? 

Or could we see an integration of cryptocurrency into their operational framework, such as accepting Bitcoin for purchases in-store or within their e-commerce ecosystem? We don’t know. But we look forward to seeing what they come up with.

Read the full article at Dypto Crypto

Are We One Step Closer to Shutting Down Lazarus?

TLDR

• BitMEX’s security team has been tracking the Lazarus Group.

• While the attacks are sophisticated, the group has gotten a little sloppy lately.

• The security team was able to find IP addresses and other information on how the group operates.

The Lazarus Group, a notorious North Korean government-backed hacking organization, is known for its extensive cybercrime operations targeting crypto platforms worldwide. Lazarus is infamous for a unique blend of low-tech phishing campaigns and sophisticated post-exploitation techniques. 

Recent findings by the BitMEX crypto exchange’s security team may have brought international authorities closer to unraveling the group’s operations, revealing patterns, vulnerabilities, and even a rare slip-up by a hacker.

Can Lazarus really be stopped?

Unfortunately…we don’t know. It’s not like the North Korean government has ever, or will ever, play nice with authorities. And on the short term, the answer is probably “no”. But now that users and security teams have more information on how they do things, it’s a step closer to preventing them from doing it in the future.

Read the full article at Dypto Crypto

Oregon Paves the Way for Crypto Regulation with S.B. 167

TLDR

• Oregon has passed S.B. 167.

• Digital assets are now defined and regulated within the state.

• The bill legitimizes crypto, allows it to be used as collateral, and more.

Oregon’s lawmakers have taken a big step in the evolution of crypto-related commercial law with the enactment of Senate Bill 167 (S.B. 167). Signed into law by Governor Tina Kotek on May 7, this legislation marks a turning point for digital asset regulations in the state, aiming to bridge the gap between modern technologies and existing commercial frameworks. 

Why this news is a bigger deal than most people realize.

You may have noticed that while some U.S. states, such as Texas and New Hampshire, are passing bold proposals like state-held Bitcoin reserves, Oregon’s approach remains pragmatic. 

Instead of grand experiments, Oregon appears focused on building a solid legal foundation that encourages innovation while minimizing potential risks.

The cautious optimism is reflected in both S.B. 167 and H.B. 2071. Addressing fundamental commercial and regulatory issues allows Oregon to lay the groundwork for secure and sustainable adoption of blockchain technologies. In a way, it’s more powerful than any reserve (even though it won’t pump your bags). 

Read the full article at Dypto Crypto

Question of the Week

A TikTok comment - “We understand that Fiat is losing its value rapidly, it takes more dollars to buy the same amount of goods every day, Bitcoin is the solution.”

Meme of the Week

Source

Deep Dive - SEC: Protocol Staking Is NOT a Securities Transaction

Cryptocurrency staking just got a major nod from the U.S. Securities and Exchange Commission (SEC). On May 29, the SEC’s Division of Corporation Finance issued new guidance confirming that protocol staking activities on proof-of-stake (PoS) blockchain networks don’t qualify as securities transactions.

Proof-of-stake (PoS) is a consensus mechanism used by blockchain networks to validate transactions and enhance security while avoiding the energy-intensive processes of its older sibling, proof-of-work (PoW). 

Instead of using compute to solve complex mathematical problems to validate blocks of transactions (as with Bitcoin’s PoW), PoS networks require participants, known as node operators, to stake (lock up) a certain amount of cryptocurrency as collateral to secure the network.

Staking, at its essence, incentivizes participants to play by the rules. The more cryptocurrency staked, the harder it becomes for malicious actors to manipulate the system. That, ladies and gentlemen, is how we achieve decentralization.

The SEC outlined three primary methods of staking in its guidance:

• Self (or Solo) Staking: Individuals use and stake their own crypto tokens without third-party involvement. Ownership and control of funds remain entirely in their hands.

• Self-Custodial Staking with Third Parties: Individuals retain control over their tokens while delegating staking to third-party validators who take a share of earned rewards for their work.

• Custodial Staking: Individuals assign a custodian (such as crypto exchanges) to manage staking on their behalf, transferring control of funds during the staking process.

Whichever route stakers take, the SEC emphasized one critical point: staking rewards are not securities transactions.

Read the full article at Dypto Crypto

Question of the Week Answer

Inflation is like a sneaky thief that chips away at the value of your money over time. When governments print more currency or when the cost of goods and services rises, your hard-earned cash buys less and less. 

It’s why something as simple as a loaf of bread seems more expensive than it was just a few years ago. It is, in fact, more expensive. This isn’t something that goes away either. It will continue on and on forever. 

It’s not just the cost of goods or services either. Inflation erodes your savings if they’re just sitting idle in a bank account, earning little to no interest.

Unlike fiat currencies, Bitcoin has a fixed supply of 21 million coins, meaning no one can print more of it or manipulate its availability. This scarcity gives Bitcoin value and makes it inflation-resistant. 

But if crypto volatility feels intimidating, staking stablecoins offers an excellent alternative. Stablecoins are pegged to fiat currencies like the US dollar, so their value remains steady. Staking these tokens on reputable platforms allows users to earn interest that’s often much higher than traditional savings accounts. 

That interest can outpace inflation, helping your money grow instead of shrink. It's a win-win — you maintain stability and beat inflation without the stress of price swings. While Bitcoin is great, there’s more than one way to skin a rabbit in the crypto game.

Closing Shenanigans

Thanks for reading. Dypto Crypto is a safe place where crypto newbies can learn and ask questions to help them make informed decisions in this exciting and volatile world. We’re having a lot of fun with YouTube shorts and TikTok. 

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