29 May 2025, 15:30

The New York Times has agreed to license its editorial content to Amazon

The New York Times Company agreed on May 29 to license its editorial content to Amazon. The news agency revealed it would allow Amazon to use its editorial content on its artificial intelligence platforms. The news organization said the agreement will bring editorial content to various Amazon customer experiences. The New York Times also revealed that besides articles, the agreement encompasses materials from NYT Cooking, The Time’s food and recipe site, and The Athletic, which focuses on sports. The Times editorial content to train Amazon’s AI models The New York Times Company and Amazon Announce Licensing Agreement. https://t.co/piYGWoBslA — NYTimes Communications (@NYTimesPR) May 29, 2025 The Times sued OpenAI and Microsoft in 2023 for copyright infringement but has changed course and is now letting its editorial content appear across Amazon platforms. The news company accused the tech companies of using millions of articles published by The Times to train automated chatbots without compensation. Both tech companies have rejected those accusations. NYT recorded $4.4 million in pretax litigation costs in the first quarter related to its copyright lawsuit against Microsoft and OpenAI. The firm acknowledged that it was the first time the Times agreed to a licensing agreement focusing on generative AI technology. The New York Times did not disclose the financial terms of the licensing deal with Amazon. “The deal is consistent with our long-held principle that high-quality journalism is worth paying for. It aligns with our deliberate approach to ensuring that our work is valued appropriately, whether through commercial deals or through the enforcement of our intellectual property rights.” – Meredith Kopit Levien , Chief Executive of The Times. The company said that Amazon’s use of its editorial content could extend to the Alexa software found on its smart speakers. The Times also noted that materials from its editorial content will also be used to train Amazon’s property AI models. Media companies explore licensing opportunities with AI companies The Times’ approach to AI reflects the various steps that media companies are taking towards artificial intelligence. Last month, the Washington Post entered into a strategic partnership with OpenAI to make its editorial content more accessible in ChatGPT. The firm said ChatGPT will display summaries, quotes, and links to original reports from the Washington Post in response to relevant search queries. Vox Media also signed a content licensing deal with OpenAI in May 2024. The firm’s president, Pam Wasserstein, said the deal gives the AI company access to Vox’s current content, as well as the entire archive of its journalistic work, to train ChatGPT and other models. The Atlantic Union signed a similar deal with the Microsoft0backed AI giant during the same period. Communications chair of Vox’s union, Amy McCarthy, argued that the media companies had aired concerns about the environmental impact of the power needed to run large language models, such as those at OpenAI. She added that publishers that strike deals with AI providers must discuss and negotiate with unions about the changes. The Atlantic Union suggested last year that AI shouldn’t be used to replace writing, fact-checking, copy editing, and illustrations. The firm also proposed that writers should use AI at their discretion, in accordance with journalistic principles and ethics, but they can’t be made to use it. Principal of YPB Global LLC and FIPP chair Yulia Petrossian Boyle believes that content creators and AI companies will deepen their relationships over the next few years. Boyle also argued that as AI players try to secure more original content, those relationships must transition from one-off deals to well-structured, ethical partnerships with strict IP protection and meaningful revenue for publishers. DCN contributor Daman Radcliffe points out that AI licensing agreements for some media companies offer an alluring mix of copyright protection and monetization opportunities. He noted that publishers are discovering they must balance the potential for monetization with the need to protect intellectual property rights and ensure responsible AU usage. According to a recent INMA report , companies considering licensing deals need to understand the value of their content in an AI-driven market. They also have to negotiate attribution and compensation models that align with business goals. The report emphasizes the importance of advocating for responsible AI practices, including transparency in data usage. Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites

29 May 2025, 15:20

AI Chips: NVIDIA and AMD Launch New Models in China Amidst US Restrictions

BitcoinWorld AI Chips: NVIDIA and AMD Launch New Models in China Amidst US Restrictions The world of technology is constantly evolving, with AI and its underlying hardware playing a crucial role. For those following the crypto and tech markets, understanding the flow of advanced semiconductors, particularly AI chips , is key. Recent developments indicate a significant shift as major players like NVIDIA and AMD adapt to global trade policies, specifically concerning the lucrative market in China . Navigating US Restrictions : A Strategic Move The United States government has implemented stringent restrictions on the export of advanced semiconductor technology to China. These measures aim to limit China’s access to cutting-edge hardware that could be used for military or strategic purposes. This has created a complex environment for global chip manufacturers like NVIDIA and AMD, who rely heavily on the Chinese market for a significant portion of their revenue. To navigate these regulations and maintain market presence, these companies are developing and selling modified versions of their powerful AI GPUs. These new chips are designed to fall below the performance thresholds set by US export controls while still offering capabilities suitable for various AI workloads in China. New AI Chips for the Chinese Market According to reports from Taiwanese tech publication Digitimes, citing supply chain sources, both NVIDIA and AMD are preparing to launch new AI-focused chips specifically tailored for the Chinese market. This move is a direct response to the need for compliance with US export rules. NVIDIA’s Strategy: NVIDIA is reportedly planning to introduce a stripped-down AI GPU, currently known by the codename “B20.” This chip is expected to be built on its latest Blackwell architecture, offering a balance between performance and compliance. Earlier reports suggested a budget AI chip for China priced between $6,500 and $8,000, significantly less than the $10,000-$12,000 price point for their H20 GPUs, which faced export hurdles. AMD’s Approach: AMD is also targeting AI workload needs in China with its new Radeon AI PRO R9700 workstation GPU. While specific details on its compliance modifications were not as widely reported initially, the intent is clear: provide a viable AI solution that meets regulatory requirements. These new chips are anticipated to become available in China as early as July, allowing Chinese companies to access hardware necessary for their AI development and deployment, albeit with reduced performance compared to the most advanced models available elsewhere. Financial Impact on NVIDIA The US restrictions have had a tangible financial impact on companies like NVIDIA. The inability to freely sell their high-end chips in China has resulted in significant revenue losses. NVIDIA recently reported a substantial $4.5 billion charge in Q1 related to licensing requirements that affected its ability to sell the H20 AI chip in China. Furthermore, the company couldn’t ship an additional $2.5 billion worth of H20 chips during that quarter due to these restrictions. Looking ahead, NVIDIA has projected that these licensing requirements will result in an estimated $8 billion hit to the company’s revenue in Q2. This highlights the critical importance of the Chinese market to NVIDIA’s bottom line and the necessity of developing compliant products like the new B20 chip to mitigate these losses. What This Means for the China Market For the Chinese market, the availability of these new compliant AI chips from NVIDIA and AMD is a crucial development. While not as powerful as their unrestricted counterparts, these chips still offer significant capabilities for training and running AI models. This allows Chinese tech companies to continue their rapid advancements in AI, albeit potentially at a different pace or with adjustments to their hardware strategies. The situation also encourages domestic Chinese chip manufacturers to accelerate their development of competitive AI hardware. However, for the immediate future, chips from NVIDIA and AMD remain highly sought after due to their performance, ecosystem, and software support. Looking Ahead: Compliance and Innovation The introduction of these new chips by NVIDIA and AMD demonstrates a strategic balance between complying with US restrictions and serving the critical China market. It underscores the global complexities of the technology supply chain and the ongoing tension between national security concerns and international trade. As the AI landscape continues to evolve, so too will the strategies of chip manufacturers. The focus will likely remain on developing innovative hardware that meets the diverse needs of global markets while navigating the ever-changing regulatory environment. The success of these new compliant AI chips in China will be a key indicator of how effectively companies can adapt to these challenges. To learn more about the latest AI market trends, explore our article on key developments shaping AI features. This post AI Chips: NVIDIA and AMD Launch New Models in China Amidst US Restrictions first appeared on BitcoinWorld and is written by Editorial Team

29 May 2025, 15:12

I'm Not Betting Against Trump: Initiating Trump Media With A Buy

Summary I'm initiating a buy on Trump Media & Technology Group Corp. due to its oversold technical setup and potential for a near-term bounce as sentiment stabilizes. Despite limited fundamentals and high volatility, I see the stock's current price as an attractive entry, especially with support at $19-$20. Trump Media's pivot to Bitcoin and blockchain, while risky, aligns with its core audience and could create new monetization opportunities. Valuation is speculative, but with sentiment so low, I believe a rebound is likely, and I recommend adding during the current weakness. I hereon share my sentiment on DJT stock and why I see more upside ahead. Investment thesis: Technical analysis Trump Media & Technology Group Corp. ( DJT ), President Donald Trump’s media company, has been among the worst-performing stocks after the April dip: the stock is down over 37% year to date, which is precisely why I’m initiating the stock with a buy. Technical factors drive my bullish call; with the stock leaning into oversold territory and recovering from overbought territory earlier this month, I think the stock could run, and this is looking like a nice play for the near-term. The stock also trades below all its moving averages, with EMA21 and EMA50 acting as near-term resistance at $24. I think a break above these EMAs should support a comeback. Still, the $19- $20 levels act as support, and a break below these levels risks retesting the $15 April lows (my worst-case scenario floor). With limited revenue, political uncertainty, and speculations about the latest crypto announcement, I am not betting on the company’s fundamentals just yet. All I’m saying is: the setup is ripe for a bounce as sentiment stabilizes, and investors are best positioned to enter at the current price, or around the next support lines: $19 and $20. Yahoo Finance Like Tesla ( TSLA ), this stock often trades more on hype and headlines than fundamentals, in my opinion, earning a spot as a "meme stock." While the risk of investing in such a stock is high, I think the stock presents an attractive entry point at current levels, especially after investors digest what are now considered negatives for the company. I beg to differ. So why was the stock down around 7% on Wednesday, and what negatives have been priced in? What happened last Tuesday? With Bitcoin (BTC-USD) trading near record highs, the company wants a place at the table and is borrowing a page straight from the MicroStrategy ( MSTR ) playbook, where crypto becomes the business model. Earlier this week, Trump Media announced plans to raise $2.5 billion, a sum it intends to convert into a Bitcoin reserve, from about 50 institutional investors, with $1.5 billion in common shares and $1 billion in convertible senior notes. Where others reinvest in software or platform development, this move places cryptocurrency at the heart of the company’s corporate strategy, further mirroring Trump’s goal to create a “strategic bitcoin reserve” for the U.S. government. Investors got spooked, and everyone and their grandmother turned bearish on the stock after the announcement. I made the MicroStrategy comparison, but things look a bit different for Trump Media. MicroStrategy has decades of enterprise software revenue to fall back on, but Trump Media is still in its early innings, with limited revenue and no profitability in sight. According to the form 10-Q reported in early May, the company “generated limited advertising revenue through Truth Social and no advertising revenue through our newly launched streaming operations, Truth+.” Yes, allocating a large sum to Bitcoin, an extremely volatile asset, could make matters worse and distract from building out core business functions. But I think the market is sleeping on the opportunity ahead. According to the company’s CEO, Devin Nunes, Trump Media views Bitcoin as : “an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets. Our first acquisition of a crown jewel asset, this investment will help defend our Company against harassment and discrimination by financial institutions.” Trump Media isn’t your typical media company; it’s politically driven and is built on narratives that challenge mainstream institutions. By embracing Bitcoin, the company is aligning itself with themes of financial independence, and through that, it resonates more strongly with its core audience. According to Nunes, the move will help enable crypto-based subscription payments and support the development of a Truth Social utility token (a proprietary digital currency designed for transactions within the platform’s blockchain ecosystem). Call me an optimist, but I think this gives the company a new digital economy to build around, in turn reducing reliance on traditional advertising and monetization, which have both been limited so far, as I mentioned above. Trump and Bitcoin: During his first term, Trump had a completely different sentiment on bitcoin, and called it “not money,” but things have changed drastically since then. During his 2024 presidential campaign, Trump became the first major U.S. candidate to accept crypto donations, and since returning to office, he has launched his own cryptocurrency, the $TRUMP meme coin. Just last week, Trump hosted a dinner at a high-end golf club in Virginia to honor 220 of the token’s top investors, while the top 25 investors enjoyed more special access. While marketed as a gesture of appreciation, the event got backlash from ethics watchdogs, claiming it highlights overlaps between Trump’s public duties and private financial interests. According to U.S . Senators Adam Schiff and Elizabeth Warren in a letter to the Office of Government Ethics, "The American people deserve the unwavering assurance that access to the presidency is not being offered for sale to the highest bidder in exchange for the President's own financial gain.” Valuation and what’s next: Valuation is through the roof, and the recent price movement is indicative of extreme speculation of the company’s latest moves rather than business fundamentals, which continue to struggle regardless. YChart The company has seen a steep valuation reset from the beginning of the year, with shares down nearly 37% so far. The company’s EV/Sales and Price/Book ratios have compressed by 41.7% and 35.4%, respectively, and its Price/Sales ratio has also dropped another 26%. This might seem like the market is “de-risking” the name, but a closer look suggests otherwise, at least in my opinion. Fortunately, the stock trades on momentum, and when sentiment bottoms out like it is now, a comeback is overdue. After repeated efforts to grow the business through more conventional means failed to yield results, Trump Media is now pivoting and embracing Bitcoin and blockchain narratives, something I think the company will reap the fruits of in the long term. Still, with a shift so drastic comes heightened investor scrutiny. Many are asking the question: Is this latest move a strategic breakthrough or just another distraction? I’m choosing to look at the glass half full, and I’m advising investors to add on the current panic.

29 May 2025, 15:10

Bitcoin: Smarter Web Company’s Bold Move Boosts Corporate Holdings

BitcoinWorld Bitcoin: Smarter Web Company’s Bold Move Boosts Corporate Holdings In the ever-evolving landscape of digital assets, a significant development has emerged from London. The Smarter Web Company, a technology firm listed on the London stock exchange, recently made headlines with a notable increase in its Bitcoin holdings. This move isn’t just a simple transaction; it signals a growing trend among publicly traded companies to allocate a portion of their balance sheets to digital currencies. The company announced via an official statement that it has acquired an additional 24.53 BTC, a decision that brings its total Company Bitcoin Holdings to an impressive 83.24 BTC. Why are Companies Like The Smarter Web Company Buying Bitcoin? This question is on the minds of many investors and market observers. While traditional finance often views cryptocurrencies with caution, a growing number of corporations are starting to see Bitcoin not just as a speculative asset, but as a strategic reserve. Several factors are driving this trend: Inflation Hedge: In an era of quantitative easing and rising inflation concerns, companies are looking for assets that can potentially preserve or grow value over the long term, unlike cash which may lose purchasing power. Store of Value: Bitcoin’s decentralized nature and fixed supply (capped at 21 million coins) position it as a potential digital store of value, often compared to digital gold. Diversification: Adding Bitcoin to a corporate treasury diversifies assets away from traditional financial instruments like cash, bonds, and equities. Balance Sheet Strategy: For some companies, holding Bitcoin aligns with a forward-thinking strategy, embracing emerging technologies and potentially signaling innovation to investors. Potential Appreciation: Despite its volatility, Bitcoin has shown significant long-term growth potential, offering the possibility of substantial returns on corporate capital. For a technology firm like The Smarter Web Company , holding Bitcoin could also be seen as an extension of their core business – engaging with cutting-edge digital advancements and the future of finance. What Does This Acquisition Mean for Their Company Bitcoin Holdings? Adding 24.53 BTC is a substantial acquisition for The Smarter Web Company. Moving from 58.71 BTC to 83.24 BTC represents an increase of over 40%. While this figure might seem modest compared to giants like MicroStrategy, which holds tens of thousands of Bitcoin , it’s significant for a company of The Smarter Web Company’s size and profile. It demonstrates a reinforced conviction in their initial strategy and a willingness to increase their exposure to the asset class. Their total of 83.24 BTC solidifies their position among publicly listed companies that have allocated capital to cryptocurrencies. It places them in a category of firms actively exploring alternative treasury management strategies in the digital age. The value of these Company Bitcoin Holdings will fluctuate with the market, presenting both opportunities and challenges. Is This Part of a Larger Trend in Corporate Bitcoin Adoption? Absolutely. The move by The Smarter Web Company is not an isolated incident but rather a piece of a much larger puzzle indicating increasing Corporate Bitcoin Adoption globally. Companies across various sectors, from technology and payments to manufacturing, have publicly announced purchases of Bitcoin for their balance sheets. Pioneers in this space include: MicroStrategy: Arguably the most vocal proponent, holding a substantial amount of Bitcoin as its primary treasury reserve asset. Tesla: Briefly held significant Bitcoin, though they later sold a portion, their initial purchase highlighted the asset’s potential to a mainstream audience. Block (formerly Square): A payment processing company that has made strategic investments in Bitcoin and is actively involved in the Bitcoin ecosystem. Other Public Companies: A growing list of smaller and mid-cap companies are quietly adding Bitcoin to their reserves. This trend signifies a maturation of the asset class and a growing acceptance by traditional corporate structures. Corporate Bitcoin Adoption is moving from being a fringe idea to a recognized, albeit still debated, treasury management strategy. What are the Implications of Institutional Crypto Investment? The involvement of publicly traded companies like The Smarter Web Company falls under the umbrella of Institutional Crypto Investment . When institutions, whether corporations, asset managers, or hedge funds, begin allocating significant capital to cryptocurrencies, it has several profound implications: Increased Legitimacy: Institutional interest lends credibility to the cryptocurrency market, helping to dispel the notion that it’s solely for retail investors or illicit activities. Greater Market Liquidity: Large institutional trades can add significant volume and liquidity to exchanges. Potential for Reduced Volatility: While still volatile, increased institutional holding for long-term treasury purposes could potentially contribute to a more stable market over time compared to purely speculative trading. Regulatory Scrutiny: As institutional involvement grows, so does the attention from financial regulators, potentially leading to clearer guidelines and frameworks. Product Development: Growing institutional demand spurs the development of regulated investment products and services catering to these entities. Institutional Crypto Investment is a key driver pushing the crypto market towards mainstream financial integration. What are the Potential Benefits and Risks for Companies Holding Bitcoin? Like any investment, holding Bitcoin on a corporate balance sheet comes with its own set of potential benefits and significant risks. Potential Benefits: Capital Appreciation: The possibility of substantial returns if the price of Bitcoin increases significantly over the holding period. Inflation Protection: As discussed, a hedge against the devaluation of fiat currencies. Balance Sheet Strength (in a bull market): Increased asset value can improve the look of a company’s balance sheet. Attracting Investors: Some investors are specifically looking for companies with exposure to the digital asset space. Potential Risks: Extreme Volatility: Bitcoin’s price can experience dramatic swings in short periods, potentially leading to significant paper losses. Regulatory Uncertainty: The regulatory landscape for corporate crypto holdings is still evolving and varies by jurisdiction. Accounting Challenges: Under current accounting rules (like GAAP or IFRS), Bitcoin is often treated as an intangible asset subject to impairment testing, meaning companies must report a loss if the price drops below their cost basis, even if they haven’t sold. They cannot report gains until they sell. Security Risks: Holding and securing large amounts of Bitcoin requires robust security protocols to prevent theft or loss. Reputational Risk: Negative market sentiment or regulatory issues could impact the company’s public image. Companies considering this path, like The Smarter Web Company , must carefully weigh these factors and have a clear strategy for managing their exposure. Looking Ahead: The Future of Corporate Balance Sheets? The decision by The Smarter Web Company to increase its Company Bitcoin Holdings is a strong indicator that the trend of corporate adoption is likely to continue. As the digital asset market matures and regulatory clarity potentially improves, more companies may explore adding Bitcoin or other cryptocurrencies to their balance sheets. This could reshape traditional corporate finance, making digital assets a more common component of treasury management alongside cash, bonds, and other traditional investments. The success or challenges faced by early adopters like The Smarter Web Company will likely influence the pace and scale of future Corporate Bitcoin Adoption . While the path forward is not without its hurdles, the continued movement of publicly traded companies into the crypto space suggests a long-term shift in how corporate value and treasury management are perceived in the digital economy. This growing interest from entities involved in Institutional Crypto Investment underscores the increasing integration of digital assets into the global financial system. In conclusion, The Smarter Web Company’s decision to boost its Bitcoin reserves to 83.24 BTC is more than just a company announcement; it’s a microcosm of the broader, accelerating trend of Corporate Bitcoin Adoption and Institutional Crypto Investment . It highlights the strategic considerations companies are making in response to macroeconomic pressures and the potential of digital assets. As more firms follow suit, the line between traditional finance and the crypto world will continue to blur, potentially paving the way for a new era of corporate treasury management. To learn more about the latest Bitcoin trends, explore our article on key developments shaping Bitcoin institutional adoption. This post Bitcoin: Smarter Web Company’s Bold Move Boosts Corporate Holdings first appeared on BitcoinWorld and is written by Editorial Team

29 May 2025, 15:00

DAO Regulation: Advocates Fight for Exemption from SEC Howey Test

BitcoinWorld DAO Regulation: Advocates Fight for Exemption from SEC Howey Test The world of decentralized finance (DeFi) is constantly pushing boundaries, but it often runs headfirst into existing regulatory frameworks designed for traditional finance. A major point of contention? How decentralized autonomous organizations, or DAOs, should be treated under U.S. securities law. Recently, prominent DeFi voices have stepped up, urging the Securities and Exchange Commission (SEC) to consider a carve-out for these unique structures. Specifically, the DeFi Education Fund and the Uniswap Foundation sent a compelling letter to the SEC’s Crypto Task Force on May 27. Their core argument is simple yet profound: DAOs that are truly decentralized should not be subjected to the stringent requirements of the Howey Test , the long-standing legal framework used to determine if something qualifies as an investment contract, and thus a security. This isn’t a debate in a vacuum. The letter was a direct response to SEC Commissioner Hester M. Peirce’s call for input on digital asset regulation. Peirce, often seen as a more crypto-friendly voice within the commission, leads the Crypto Task Force, signaling a potential avenue for constructive dialogue. But what exactly is the Howey Test, and why is its application to DAOs such a flashpoint in the ongoing discussion around DAO regulation ? What is the SEC Howey Test, and Why Does it Challenge DAOs? The Howey Test originated from a 1946 Supreme Court case, SEC v. W.J. Howey Co. It established a four-pronged test to identify an investment contract: An investment of money In a common enterprise With an expectation of profits Solely from the efforts of others For decades, this test has been applied to various traditional investments. However, applying it to the rapidly evolving landscape of digital assets, particularly Decentralized Autonomous Organizations , presents significant challenges. While the first three prongs (investment of money, common enterprise, expectation of profits) might arguably apply to participants buying DAO tokens hoping the project succeeds, the fourth prong – ‘solely from the efforts of others’ – is where DAOs fundamentally differ from traditional corporate structures. In a typical investment contract scenario (like buying stock), the investor expects profits based on the work of the company’s management or a promoter – the ‘others’. In a DAO, especially one that is ‘sufficiently decentralized’, governance and development decisions are made by the community of token holders themselves, not a central team. This distributed effort is the crux of the argument for why the Howey Test, designed for centralized entities, is ill-suited for truly decentralized ones. Why Do Advocates Believe ‘Sufficiently Decentralized’ DAOs Aren’t Crypto Securities? The core argument put forth by the DeFi Education Fund and Uniswap Foundation is that once a DAO reaches a state of sufficient decentralization, its native tokens and related transactions should no longer be classified as Crypto securities . This isn’t just a technicality; it has massive implications for how these organizations can operate, innovate, and interact with users in the United States. Their letter posits that in a sufficiently decentralized DAO, there is no identifiable promoter or central group whose efforts are solely responsible for generating profits for token holders. Instead, the success and evolution of the DAO are driven by the collective contributions, proposals, and votes of its distributed community. Think about it: If thousands of token holders globally are participating in governance, proposing code changes, voting on strategic direction, and contributing to the ecosystem, can profits truly be said to be derived ‘solely’ from the efforts of a small group? Advocates argue no, and this distinction is vital for sensible DeFi regulation . Defining ‘Sufficiently Decentralized’: A Key Challenge for DAO Regulation The term ‘sufficiently decentralized’ is critical but remains somewhat nebulous in the eyes of regulators. The SEC itself has previously offered some guidance, notably through former Director of Corporation Finance Bill Hinman’s 2018 speech, suggesting that assets initially offered as securities could later become non-securities if they become sufficiently decentralized. However, there’s no clear, codified test or checklist for what ‘sufficiently decentralized’ means in practice. This lack of clarity creates significant uncertainty for DAO developers, participants, and the broader DeFi ecosystem. The letter from the DeFi Education Fund and Uniswap Foundation aims to prompt the SEC to provide clearer guidance or perhaps adopt a framework that acknowledges the unique nature of decentralized governance. Key factors that might contribute to ‘sufficient decentralization’ often include: No single person or small group controls the network or project. Decisions are made through broad community consensus or voting mechanisms. The core developers or founders no longer have unilateral control over the project’s direction or assets. The network can function autonomously based on pre-programmed rules and community input. Establishing objective criteria for this state is paramount for future DAO regulation . The Stakes: Why This Debate Matters for DeFi and Innovation The outcome of this debate over the SEC Howey Test and DAOs has profound implications. If DAO tokens are broadly classified as securities, it could subject DAOs to extensive registration, disclosure, and compliance requirements designed for traditional financial institutions. This could: Stifle Innovation: The cost and complexity of complying with securities laws could be prohibitive for many decentralized, community-driven projects. Push Development Offshore: Teams might choose to build and operate outside of jurisdictions with unclear or overly burdensome regulations. Limit Participation: Strict accreditation rules for investors in securities could prevent broader community involvement in governance. Create Legal Uncertainty: DAO contributors, token holders, and developers could face legal risks. Conversely, clear guidance or an exemption could: Foster Innovation: Provide a clear path for DAOs to develop and operate legally. Attract Investment: Provide clarity for investors, potentially increasing participation. Promote Decentralization: Incentivize projects to genuinely decentralize to meet potential exemption criteria. This isn’t just about legal definitions; it’s about shaping the future trajectory of decentralized technology and finance. Sensible DeFi regulation needs to understand and adapt to these new organizational paradigms. What’s Next in the Push for Clear DAO Regulation? The letter from the DeFi Education Fund and Uniswap Foundation is a significant step, adding to the growing chorus of voices urging the SEC to provide clarity and nuanced treatment for decentralized structures. It highlights the industry’s desire for engagement and a regulatory framework that doesn’t shoehorn novel technology into outdated boxes. While SEC Commissioner Peirce’s open call for input is a positive sign, the commission’s overall stance on crypto assets remains a subject of intense scrutiny and debate. Many in the industry hope that dialogue like this can lead to a more tailored approach to Crypto securities that acknowledges the functional differences between centralized companies and decentralized protocols governed by their communities. The path forward likely involves continued education, advocacy, and potentially legislative efforts to provide the necessary legal certainty for Decentralized Autonomous Organizations to thrive. The conversation is far from over, and the outcome will play a crucial role in determining where decentralized innovation takes root. Key Takeaways: DeFi advocates are actively engaging with the SEC regarding the application of the Howey Test to DAOs. The core argument is that ‘sufficiently decentralized’ DAOs should not have their tokens classified as securities because profits are not derived ‘solely from the efforts of others’. Defining ‘sufficiently decentralized’ is a key challenge requiring clearer regulatory guidance. The outcome of this debate will significantly impact the future of DAO innovation, participation, and DeFi regulation . Industry groups like the DeFi Education Fund and Uniswap Foundation are pushing for frameworks that recognize the unique nature of decentralized governance. The letter to the SEC is more than just a regulatory submission; it’s a call to action for a nuanced understanding of decentralized technology. As the crypto landscape matures, the need for regulatory clarity around structures like DAOs becomes increasingly urgent. How regulators respond to calls for tailored approaches, like exempting sufficiently decentralized entities from tests designed for centralized ones, will shape the future of innovation in this space. To learn more about the latest crypto market trends, explore our article on key developments shaping DAO regulation and its impact on the decentralized future. This post DAO Regulation: Advocates Fight for Exemption from SEC Howey Test first appeared on BitcoinWorld and is written by Editorial Team

29 May 2025, 14:37

PLUME price falls 12% as community mourns co-founder Eugene Shen

The altcoin space remained relatively muted on Thursday as Bitcoin continued to drift away from $110,000 , hovering above $108,450 at press time. However, the situation was different within the Plume community, with the altcoin exhibiting significant bearishness following the news of co-founder Eugene Shen’s demise. Plume – RWAfi Chain @plumenetwork · Follow It is with heavy hearts that we share the news of a tragic loss within our company. Earlier this week, we lost our cofounder and dear friend, Eugene. We’re in shock. Eugene was brilliant, deeply curious, and brought so much talent and heart to everything he did. Our thoughts are 10:19 AM · May 29, 2025 657 Reply Copy link Read 381 replies The company announced that Eugene passed on early this week, describing him as a brilliant mind behind the project’s success, a visionary, and a dear friend. While the announcement indicates it’s not time to watch price charts, crypto enthusiasts will likely explore PLUME performance. The alt dipped following the news, plunging from $0.1633 to $0.1433 – a more than 12% dip. Plume community in shock after sudden loss The Plume community faced a devastating blow as the project lost its co-founder, Eugene, early this week. The firm confirmed the shocking news and will take the next few days to grieve. The announcement stated: The Plume team is grieving and supporting one another right now. We are focused on taking care of ourselves and each other over the next few days. Meanwhile, the market response seemed more emotional and not about fundamentals. Most individuals sent their condolences to Eugene’s family and friends. Various traders and startups expressed sympathy while promising emotional support during the grieving. Source – X Eugene’s legacy lives on Despite the tragic loss, the team has confirmed it will continue Eugene’s legacy. The firm emphasized its dedication to prioritizing what it started with Eugene, focusing on enabling life on-chain and innovation. We will deeply miss him and remain committed to ensuring the Plume technology he helped build continues to spur innovation and facilitate life on-chain. Meanwhile, Eugene’s LinkedIn shows Eugene joined the Plume project in January last year. Eugene previously worked with major firms like Robinhood and dYdX. Under his leadership, Plume had raised $30 million in funding and onboarded over 180 projects to its ecosystem. Plume is a cryptocurrency company specializing in real-world asset (RWA) tokenization. Its native token PLUME, soared to all-time highs in mid-March , driven by adoption and demand within the RWA sector. PLUME’s current price action The native token trades at $0.1490, down nearly 9% from yesterday’s price. Chart by Coinmarketcap Plume’s 24-hour trading volume has increased by over 100%, signaling speculative activities. While drastic price fluctuations are usual in the cryptocurrency market, PLUME’s decline reflects the psychological and emotional impact a leadership shakeup can have. Trading enthusiasts will watch PLUME’s upcoming price movements as the community grieves Eugene’s loss. However, the team’s announcement declares this time crucial for reflection, showcasing the crypto’s human side – a tight-knit industry driven by people with purpose and passion, not by capital and codes. The post PLUME price falls 12% as community mourns co-founder Eugene Shen appeared first on Invezz