In a move that underlines Hong Kong's increasing openness to cryptocurrency trading, a local lawmaker has openly invited international digital asset exchange platforms, including Coinbase, a leader in the space, to set up shop in the region.

eToro US has announced significant changes to its cryptocurrency offering for US customers in response to the rapidly evolving regulatory landscape.

Cryptocurrency-friendly Republican lawmakers have drafted a bill meant to reform the U.S. Securities and Exchange Commission (SEC) and unseat its current Chair, Gary Gensler,  with the success of the initiative hinging on bipartisan support to pass through the Senate.

Top stories in the Crypto Roundup today:

• Hong Kong Lawmaker Invites Coinbase and Other Crypto Exchanges to Region
• eToro to Ban US Users from Purchasing MATIC, ALGO, and MANA
• GOP Lawmakers Draft Bill to Oust SEC Chair Gensler and Reform Agency
• SEC Lawsuits Harm Binance and BinanceUS’ Liquidity

Hong Kong Lawmaker Invites Coinbase and Other Crypto Exchanges to Region

In a move that underlines Hong Kong's increasing openness to cryptocurrency trading, a local lawmaker has openly invited international digital asset exchange platforms, including Coinbase, a leader in the space, to set up shop in the region.

Johnny Ng, a Hong Kong legislative council member, extended this invitation via social media, emphasizing his country's willingness to accept applications for licensing cryptocurrency trading platforms.

The invitation comes on the heels of Hong Kong's Securities and Futures Commission (SFC) opening its doors on June 1 to receive applications from crypto firms seeking to serve retail customers. These potential entrants, however, will be required to abide by regulations that discourage crypto-based incentives such as airdrops.

Coinbase’s CEO Brian Armstrong has notably said in the past his firm would contemplate relocating outside of the U.S. if regulatory uncertainty persists around cryptocurrency in the country.

eToro to Ban US Users from Purchasing MATIC, ALGO, and MANA

eToro US has announced significant changes to its cryptocurrency offering for US customers in response to the rapidly evolving regulatory landscape.

On July 12, the firm will bar U.S. customers from opening new positions in n Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC). However, customers can continue to hold and sell existing positions in these coins.

eToro reaffirmed its commitment to collaborate with regulators around the world to shape the future of crypto and empower the average investor.

The company also addressed a user question about the possible return of XRP to its platform, saying that they are keeping an eye on the regulatory situation and will update users on any developments.

The firm’s announcement comes in the wake of the U.S. SEC’s lawsuits against both Binance and Coinbase, which saw the regulator alleged the exchanges offered unregistered securities. Some digital assets it said were securities include Cardano (ADA), Polygon (MATIC), and Solana (SOL).

GOP Lawmakers Draft Bill to Oust SEC Chair Gensler and Reform Agency

Cryptocurrency-friendly Republican lawmakers have drafted a bill meant to reform the U.S. Securities and Exchange Commission (SEC) and unseat its current Chair, Gary Gensler,  with the success of the initiative hinging on bipartisan support to pass through the Senate.

Tom Emmer, R-Minn., the House Majority Whip and a seasoned advocate for the digital asset sector, spearheaded the introduction of Rep. Warren Davidson's proposed "SEC Stabilization Act." Emmer said:

“American investors and industry deserve clear and consistent oversight, not political gamesmanship. The SEC Stabilization Act will make common-sense changes to ensure that the SEC’s priorities are with the investors they are charged to protect and not the whims of its reckless Chair."

The bill would also empower commissioners like Hester Peirce, who has criticized the commission attempt to regulate crypto with existing financial industry rules, by giving them more control over “rulemaking, enforcement, and investigation authority” under a six-member commission—one more than the current five.

The commissioners would have a limit of three from the same political party and serve for six years with staggered terms. An “Executive Director” would oversee the agency’s day-to-day operations.

SEC Lawsuits Harm Binance and BinanceUS’ Liquidity

The lawsuits initiated by the U.S. SEC against cryptocurrency exchanges Binance and Coinbase have had notable effects on market liquidity.

Specifically, the liquidity for Bitcoin to US dollar (BTC-USD) trading pairs on both BinanceUS and Binance witnessed significant contractions, plummeting to their lowest levels in a year. The decline amounted to a drastic 85.0% for BinanceUS and 65.6% for Binance from their January values.

Meanwhile, Coinbase faced a relatively moderate impact, with an average liquidity decrease of just 5.18% by June 10th.

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