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Good morning. Below is a series of briefs about the blockchain and crypto world this week. It was written with the help of the AI Clone of Myself. This is the latest in AI technology, enabling people to create digital twins of themselves, not just for their audience and clients to access but also to converse with themselves, as I do regularly now. Check it out here if you'd like to build one for yourself.

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Starting here in the US with the legislative branches of government, where Sen. Cynthia Lummis, Representatives Wiley Nickel and Mike Flood, are spearheading resolutions to dismantle the SEC's Staff Accounting Bulletin 121 (SAB 121). This controversial rule mandates that companies holding customer crypto assets must reflect them on their balance sheets, a stipulation that has sparked significant pushback from the digital assets community. These lawmakers are challenging the SEC's methodology, arguing for a more democratically aligned regulatory process [CoinDesk].

This underscores the intricacies of regulatory enforcement, the SEC is poised to retract allegations against Digital Licensing Inc., which operates as Debt Box. This decision comes on the heels of a court's stern warning of potential sanctions tied to purportedly misleading evidence. The SEC, acknowledging its error, has suggested dismissing the case without prejudice, and is actively working through the court's feedback. Meanwhile, the defendants of DEBT Box are pushing for recompense for the personal and financial turmoil caused by the previously issued restraining order [Blockworks].

In a separate development, the Department of Justice has unveiled charges against three individuals accused of a SIM-swap heist that siphoned $400 million from FTX's reserves in the wake of their bankruptcy filing. The indictment names Robert Powell, Carter Rohn, and Emily Hernandez as the masterminds behind this impersonation scheme, which effectively dispels rumors of internal foul play at FTX [Bloomberg].

In the arena of cryptocurrency tokens, Jupiter's governance token JUP made a splash with its market debut, boasting an initial market cap of $878 million and a fully diluted valuation of $6.7 billion. However, the token's value saw a significant dip, a testament to the market's volatility, particularly in the wake of airdrop events [Unchained].

Highlighting the crypto sector's engagement in political advocacy, Fairshake PAC has amassed over $85 million to back crypto-amicable candidates in the upcoming 2024 elections. The PAC's efforts, fueled by substantial contributions from tech luminaries such as Marc Andreessen, Ben Horowitz, Brian Armstrong, and Ripple Labs, aim to forge clearer regulatory pathways in the aftermath of FTX's downfall [Unchained].

The crypto bankruptcy claims and trading platform OPNX, birthed by Three Arrows Capital's co-founders, is winding down operations. Users are urged to close out positions and withdraw funds ahead of the platform's imminent closure, a n event that has seen its native OX token's value plummet [Cointelegraph].

In a notable security breach, Binance intervened to freeze a substantial sum of XRP linked to the largest hack of the year, targeting Ripple co-founder Chris Larsen's personal wallet. Larsen clarified that his personal accounts were compromised, not Ripple's systems, as the hacker attempted to launder the stolen assets through several exchanges [Cointelegraph].

FTX, amidst its ongoing bankruptcy proceedings, has declared its intention to make customers whole, although the repayment is contingent on the market conditions at the time of its collapse. With no viable plan to resurrect its platform, FTX's focus remains on customer restitution, a situation reflected in the fluctuating value of its native token FTT, which experienced an initial surge followed by a decline, mirroring the broader market's sentiment [CoinDesk].

Turning our gaze to the blockchain landscape, Ethereum developers are gearing up to finalize a launch date for the Dencun upgrade on February 8. This upgrade is poised to introduce key Ethereum Improvement Proposals (EIPs), including proto-danksharding, aimed at bolstering scalability and trimming transaction costs for layer-2 solutions. With successful tests under their belt, developers are set to select a mainnet fork time during the forthcoming All Core Developers Call (ACDC), marking a significant milestone for the Ethereum network [Cointelegraph].

Tether is on the cusp of launching a new educational arm dedicated to fostering knowledge in the blockchain and crypto domains. This initiative is still in the blueprint phase, with plans to offer a suite of educational resources, including courses and workshops, to cultivate skills in the burgeoning field of blockchain technology. The search is on for talent to lead human resources and finance within this new venture [Cointelegraph].

Globally, Hong Kong's Financial Services and the Treasury Bureau (FSTB) is setting the stage for a consultation aimed at bringing over-the-counter (OTC) crypto venues under the regulatory umbrella. This move is designed to safeguard investors from deceptive practices and aligns with the city's broader goal of crafting a robust regulatory framework for the crypto industry [CoinDesk].

In Thailand, the SEC has mandated a halt to Zipmex's digital asset trading and brokerage services, citing the exchange's failure to maintain requisite liquid capital and a proper management structure. Zipmex is now on the clock, with a 15-day window to rectify its financial standing and implement measures to prevent the misuse of customer funds [CoinDesk].

The Reserve Bank of India (RBI) is navigating the complexities of introducing a digital rupee with a measured approach, prioritizing privacy and security. While the RBI's senior officials have clarified that cryptocurrency taxation is beyond their purview, they are advancing pilot programs for the Central Bank Digital Currency (CBDC) with an eye on potential collaborations with innovative startups [CoinDesk].