US lawmakers seem to have decided it’s time to deal with crypto. The digital asset will be a key topic on September’s agenda at the US House Financial Services Committee, as reported by CoinDesk. The Committee is holding a number of hearings during the month to discuss different aspects of the digital currency, including decentralized finance (DeFi) and the ways in which the SEC oversees businesses.

“A number of proposed rules at various federal agencies could have existential consequences for DeFi projects, including at the SEC and Internal Revenue Service,” commented Jesse Hamilton at CoinDesk.

The ultimate aim is to establish federal rules for how businesses are conducted in the crypto currency, a promise that has not been fulfilled yet. The Committee’s chair, Patrick McHenry, is retiring at the end of the year, according to the report, and wants to make progress on the matter. Given the controversies and complexities around crypto, it’s safe to suggest he won’t be having a very smooth ride into retirement.

“A number of proposed rules at various federal agencies could have existential consequences for DeFi projects, including at the SEC and Internal Revenue Service.”

Jesse Hamilton, CoinDesk

The multiple hearings are set to take place on September 10, 18 and 23. Lawmakers are set to question SEC Chair Gary Gensler, along with other members of the Commission. Discussions are expected to be around a range of topics, including DeFi, one of the more controversial aspects of the digital asset.

Trump’s Liberty troubles

Former President Donald Trump is in the crypto headlines again as focus continues on his cryptocurrency project World Liberty Financial. Trump and other members of his family have not shied away from openly supporting and advocating for more decentralized finance.

According to reports, the platform aims to introduce a non-tradable token called the WLFI, which provides platform governance rights. Although the former President’s team is supportive of the platform and has assured appropriate measures are being taken to prevent fraud, it is already facing criticism.

Some of that stems from the platform’s association with Dough Finance. Last July, hackers breached the DeFi platform, leading to $2 million being stolen.

Also, the official Telegram channel of World Liberty Financial has been targeted by scammers who have managed to lure thousands of people by placing ads on the channel. The platform was naturally a high-value target for cyber criminals given the amount of traffic it drew, especially from Trump supporters.

Whatever the long-term future of the platform, it is clear that scammers and cyber criminals have already picked it up as a potential target.

Worrying data on bitcoin ATM scams

New data on the crypto industry has revealed a ten-fold increase in money lost to bitcoin ATM scams, according to reports. The findings come from a new data spotlight by the Federal Trade Commission.

The Commission says scammers are targeting individuals of all ages, but more often those over the age of 60, by convincing them to deposit their cash into bitcoin ATMs. Scammers often pretend to be either the government, business representatives or tech support. Victims have lost more than $65m to such scams in just the first six months of 2024, according to the FTC.

Bitcoin ATMs look like traditional cash machines and can be found in many high-traffic places around the US. Although customers cannot use them to withdraw cash, these machines can accept cash in exchange for cryptocurrency. To avoid being a victim of a scam, the FTC has issued the following advice to customers.

• Never click on links or respond directly to unexpected calls, messages, or computer pop-ups. If you think it could be legitimate, contact the company or agency, but look up their number or website yourself. Don’t use the phone number the caller or message gave you.
• Slow down. Scammers want to rush you, so stop and check it out. Before you do anything else, talk with someone you trust.
• Never withdraw cash in response to an unexpected call or message. Only scammers will tell you to do that.
• Don’t believe anyone who says you need to use a bitcoin ATM, buy gift cards, or move money to protect it or fix a problem. Real businesses and government agencies will never do that – and anyone who asks is a scammer.

Dip in profit for Ethereum

It’s just not a good time for crypto, as we move from bitcoin’s ATM scammers to ethereum, the second largest crypto currency in the market. Latest reports suggest a significant dip in profits for the digital assets, 20% in just a month. The past eight months have been marked by continuous fluctuations for ethereum.

Latest data published by AltIndex shows an unstable trajectory in terms of market value. According to the report, ethereum started the year at around $2,300. That figure rose to an impressive high of $4,000 in March this year, falling just $300 short of the all-time high of $4,300 from February 2021. Price corrections followed and brought down ETH valuation to below $3,000 in May, though it bounced back to $3,800 a month later.

But the biggest shock came in the first week of August, when market valuation fell down to $2,100. According to the report, there were multiple reasons behind the plunge, including concerns about inflation, hike in interest rates and concerns on part of traders that the crypto currency bull run might be over for the year. The launch of multiple sport ethereum ETF’s also contributed to the decline in prices, the report said.