U.S. President Joe Biden vetoed a House Joint Resolution that aimed to repeal the Securities and Exchange Commission's (SEC) Staff Accounting Bulletin (SAB) 121, which requires banks to include customers' digital assets on their balance sheets and maintain sufficient capital reserves against them.

The company behind the world's most-used stablecoin USDT, Tether, has acquired a significant stake in Bitdeer Technologies Group, a publicly traded Bitcoin mining firm owned by Bitmain co-founder Jihan Wu.

The United States Navy is seeking partners in the private sector to refine its innovative Powerful Authentication Regime Application to Naval Operational Flight Program Integrated Development (PARANOID) technology, a blockchain-based system designed to safeguard software against cyberattacks during development and deployment.

Top stories in the Crypto Roundup today:

• Biden Vetoes Resolution to Repeal SEC Crypto Accounting Rule
• Tether Makes Major Investment in Bitcoin Miner Bitdeer
• U.S. Navy Seeks Private Sector Partners for Blockchain-Based Cybersecurity Tech
• Stablecoin Market Cap Hits Yearly High Despite Declining Volumes

Biden Vetoes Resolution to Repeal SEC Crypto Accounting Rule

U.S. President Joe Biden vetoed a House Joint Resolution that aimed to repeal the Securities and Exchange Commission's (SEC) Staff Accounting Bulletin (SAB) 121, which requires banks to include customers' digital assets on their balance sheets and maintain sufficient capital reserves against them.

Critics have argued that SAB 121 makes it too hard for financial institutions to collaborate with crypto companies. In his veto announcement, Biden stated his refusal to endorse any "measures that jeopardize the well-being of consumers and investors."

The U.S. President criticized the resolution, led by Republicans, for potentially limiting the SEC's regulatory capabilities as he says it would “inappropriately constrain the SEC’s ability to set forth appropriate guardrails and address future issues.” Per his words, it would also risk “undercutting the SEC’s broader authorities regarding accounting practices.”

The veto followed appeals from banking groups and members of Congress, who sent letters urging Biden to sign the resolution to overturn SAB 121, arguing that the guidance prevents regulated banking groups from offering custody services.

The lawmakers have urged the Biden administration to at least work with the SEC to rescind the guidance if it planned on vetoing the resolution, something he had threatened to do.

Tether Makes Major Investment in Bitcoin Miner Bitdeer

The company behind the world's most-used stablecoin USDT, Tether, has acquired a significant stake in Bitdeer Technologies Group, a publicly traded Bitcoin mining firm owned by Bitmain co-founder Jihan Wu.

According to a statement, the agreement involves a private placement of 18.6 million Class A ordinary shares, generating $100 million in gross proceeds which will be used to fund the expansion of Bitdeer’s data center operations, development of specialized mining equipment, and other general corporate purposes.

The deal also includes the option to purchase an additional $50 million worth of shares within a year, and the companies did not disclose what percentage of Bitdeer is now held by Tether.

This move represents a major step for Tether as it seeks to establish itself as a major player in Bitcoin mining. Last year, the company announced plans to invest half a billion dollars within six months to construct its own mining facilities in Uruguay, Paraguay, and El Salvador.

Bitdeer, headquartered in Singapore, is one of the largest publicly traded Bitcoin miners in the United States, with a market capitalization of around $670 million. The company operates data centers in the US, Norway, and Bhutan and was in talks with private credit firms to arrange $100 million in financing.

U.S. Navy Seeks Private Sector Partners for Blockchain-Based Cybersecurity Tech

The United States Navy is seeking partners in the private sector to refine its innovative Powerful Authentication Regime Application to Naval Operational Flight Program Integrated Development (PARANOID) technology, a blockchain-based system designed to safeguard software against cyberattacks during development and deployment.

Developed by the Naval Air Warfare Center's Aircraft Division (NAWCAD) in Lakehurst, New Jersey, PARANOID initially focused on securing avionics software for the Navy, but realized its potential extends to any software development process.

PARANOID leverages blockchain technology to verify software files across multiple nodes at every stage of development, with each developer action being recorded on the PARANOID blockchain, creating a tamper-proof activity ledger.

This immutability ensures that any attempt by malicious actors to manipulate the software – through code edits, replacements, or deletions – would be flagged by the system.

According to TechLink, the technology transfer partner for the U.S. Department of Defense, the Navy is making PARANOID available to private companies interested in further research and development, with an ideal partner being a firm “interested in developing a solution for securing software supply chain.”

Stablecoin Market Cap Hits Yearly High Despite Declining Volumes

As of May 23, the total market capitalization of stablecoins rose by 0.63% last month to $161 billion, marking the eighth consecutive monthly increase and reaching the highest level since April 2022. Despite this growth, stablecoins' market dominance fell to 6.07% from 7.01% in April following the unexpected U.S. approval of spot Ether exchange-traded funds.

Stablecoin trading volumes, however, saw a significant 32.8% drop to $1.46 trillion in May, marking the first decline in seven months on centralized exchanges (CEXs). As of May 23, trading volumes are on track to decline further, with $829 billion recorded so far.

Dig deeper into the stablecoin sector through CCData’s latest Stablecoins & CBDCs report

State of the Crypto by Top Tier Exchange Volume

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