Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. SEC Airdrops Classification: U.S. Representatives Tom Emmer and Patrick McHenry have called on SEC Chair Gary Gensler to clarify the agency’s stance on crypto airdrops.

2. Trump Faces Backlash: Donald Trump’s announcement of a WLFI token launch under his new project, World Liberty Financial, has drawn criticism from some of his pro-crypto supporters. Critics worry that launching a token so close to the 2024 election could alienate voters and give opponents leverage.

3. 📈Technical Analysis Masterclass - Worldcoin is significantly down from its all-time high of $11. Watch UseTheBitcoin’s latest Youtube video “The Hidden Factor That Will Send Worldcoin Soaring” to know why a bullish shift might be on the horizon or join our Official Telegram Channel for more alpha!

4. Binance on WazirX Hack: Following a $230 million hack of the Indian crypto exchange WazirX, Binance denied any responsibility, stating that it never finalized an acquisition of WazirX.

5. 💡Feature of the Day - CFTC Eyes Crypto Betting Platforms: As the 2024 U.S. presidential election approaches, the CFTC has increased scrutiny on offshore crypto betting platforms like Polymarket.

   
   All this and more in today’s headlines!

📰 News Highlights:

SEC Airdrops Classification [Source][Source][Source]

U.S. Representatives Tom Emmer and Patrick McHenry have called on SEC Chair Gary Gensler to clarify the agency’s stance on crypto airdrops.

In a Sept. 17 letter, the Republican lawmakers expressed concerns about the SEC's classification of airdrops as securities in recent lawsuits.

They referenced cases involving Hydrogen Technology and Justin Sun, where the SEC treated airdropped tokens as unregistered securities.

The letter also questioned how airdrops meet the Howey test, the legal framework used to determine whether an asset qualifies as a security.

Emmer and McHenry argued that free token distribution, akin to credit card rewards, should not fall under the SEC’s regulatory purview.

They demanded answers by Sept. 30, warning that the SEC’s stance could hinder U.S. leadership in blockchain technology and economic growth.

Trump Faces Backlash [Source][Source][Source][Source]

Donald Trump’s recent venture into decentralized finance (DeFi) has not gone over well with some of his pro-crypto supporters. After teasing a new project, World Liberty Financial, Trump officially announced plans to launch a WLFI token on Sept. 12.

However, the move has been met with skepticism, with some crypto enthusiasts criticizing the timing and potential impact on his presidential campaign.

Critics, including Castle Island Ventures partner Nic Carter, labeled the project as a misguided attempt to capitalize on Trump’s newfound crypto advocacy.

Many pointed out that launching a token just weeks before the 2024 election could alienate voters and give his opponents ammunition.

Some supporters, while still backing Trump, expressed disappointment in his decision to launch a "pre-mined" token, fearing it could be seen as exploiting his follower base.

 📈Technical Analysis Masterclass:

The Hidden Factor That Will Send Worldcoin Soaring

Bullish Technical Indicators

• Consolidation at Key Support: Worldcoin has been holding steady at key support levels, indicating potential for a breakout.

• RSI Divergence: While prices have been trending down, the RSI is trending up, signaling a bullish divergence, often an early indicator of a price surge.

• 50-Day Moving Average: Worldcoin is testing the 50MA, which has acted as a strong resistance level. A break above this level could confirm the start of a bullish trend.

Expansion to Solana

• Wormhole Integration: Worldcoin has announced its expansion to Solana via the Wormhole interoperability platform, allowing users to authenticate IDs on Solana that were initially minted on Ethereum. This move enhances scalability and efficiency, benefiting from Solana’s low fees and fast transaction speeds.

Launch of World Chain

• Worldcoin’s Layer-2 Solution: Worldcoin recently launched its own layer-2 blockchain, World Chain, to combat the growing issue of bots on blockchain networks. Through World ID, users can verify their humanity using zero-knowledge proofs, creating a more secure and bot-free ecosystem.

Binance On WazirX Hack [Source][Source][Source]

Following the high-profile $230 million hack of Indian crypto exchange WazirX, Binance has denied any responsibility for the security breach.

In a Sept. 17 statement, Binance clarified that it never acquired WazirX, contrary to earlier claims from WazirX leadership.

Binance stated that the acquisition deal, discussed years ago, was never finalized, and thus, it does not hold responsibility for WazirX’s operations or the lost funds from the July 18 hack.

Binance’s statement follows accusations from WazirX that Binance was accountable for compensating the exchange’s users for their losses.

Binance called these claims a “disappointing deflection tactic” by WazirX’s leadership, urging the Indian exchange to take full accountability and repay affected users.

💡 Feature of the Day:

CFTC Eyes Crypto Betting Platforms [Source][Source][Source]

As the 2024 U.S. presidential election approaches, the Commodity Futures Trading Commission (CFTC) has ramped up its scrutiny of offshore crypto betting platforms, including Polymarket.

CFTC Chair Rostin Behnam emphasized that any entity offering derivatives contracts to U.S. customers must register with the agency or face enforcement actions.

In a Sept. 17 discussion, Behnam reiterated that the CFTC is monitoring offshore platforms and will act against any that violate U.S. law.

Polymarket has faced the CFTC’s wrath before, settling a $1.4 million lawsuit in 2022 for operating unregistered markets. With over $930 million in bets placed on the 2024 election, the stakes are high for these platforms to comply with regulations.

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See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com