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Former Consensys employee launches new stablecoin amid regulatory uncertainty

A former employee of blockchain technology firm ConsenSys has launched a new stablecoin, USD3, aiming to revolutionize the digital currency landscape by offering enhanced stability and usability. This innovative stablecoin is pegged to the value of three U.S. dollars, distinguishing it from other stablecoins typically pegged to a single dollar.

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A former employee of blockchain technology firm ConsenSys has launched a new stablecoin, USD3, aiming to revolutionize the digital currency landscape by offering enhanced stability and usability. This innovative stablecoin is pegged to the value of three U.S. dollars, distinguishing it from other stablecoins typically pegged to a single dollar.

The creator of USD3, now leading the project independently, believes this new stablecoin can address volatility concerns and provide a more stable medium of exchange in the cryptocurrency market. By pegging the coin to three dollars, the USD3 team aims to offer a unique value proposition that could attract a diverse range of users and investors.

USD3 is built on the Ethereum blockchain, leveraging smart contract technology to maintain its peg and ensure transparency. The project has garnered interest from various stakeholders within the blockchain community, including developers, investors, and financial institutions looking for more reliable digital assets.

In a statement, the founder of USD3 emphasized the importance of stability in digital currencies: “Our goal with USD3 is to provide a stable and secure digital asset that can be used for everyday transactions and as a reliable store of value. By pegging the stablecoin to three dollars, we aim to offer a unique solution that addresses some of the key challenges faced by other stablecoins in the market.”

The launch of USD3 comes at a time of growing interest in stablecoins, which are increasingly being seen as a bridge between traditional finance and the digital currency ecosystem. The new stablecoin is expected to compete with established players like Tether (USDT) and USD Coin (USDC), offering an alternative with its distinctive pegging mechanism.

As the project moves forward, the USD3 team plans to engage with regulators and industry partners to ensure compliance and foster adoption. The team is also working on expanding the ecosystem around USD3, including developing partnerships with digital wallets, exchanges, and other financial services providers.

The launch of USD3 represents a significant development in the stablecoin market, showcasing the continuous innovation and evolution within the blockchain and cryptocurrency space. With its unique value proposition, USD3 aims to carve out a niche in the competitive stablecoin landscape and become a preferred choice for users seeking stability and reliability in their digital transactions.

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Binance tightens South African compliance rules for crypto transfers

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Binance is tightening compliance measures for crypto transactions in South Africa, announcing it will fully implement the country’s Travel Rule requirements beginning January 2025. The move aligns with regulations set by South Africa’s Financial Intelligence Centre (FIC) and reflects the exchange’s broader efforts to meet global anti-money laundering standards.

Under the new rules, Binance will require South African users to include verified personal information—such as names, addresses, and account details—when sending or receiving crypto between platforms. These changes are designed to increase transparency and traceability of digital asset transfers, making it harder for illicit actors to exploit decentralized networks.

Binance emphasized that users must complete know-your-customer (KYC) verification before transferring crypto to or from external wallets. Transfers to non-compliant platforms may be restricted or flagged, while internal transfers within Binance or to Travel Rule-compliant entities will remain unaffected.

The announcement follows South Africa’s decision in 2023 to designate crypto as a financial product, placing digital asset providers under the supervision of the FIC. The country has since taken steps to integrate crypto into its formal regulatory structure, including licensing requirements and mandatory reporting obligations.

With enforcement beginning in 2025, Binance urged users to familiarize themselves with the new procedures to avoid disruptions. The exchange also plans to provide additional guidance and tools to help users remain compliant as the deadline approaches.

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Ethereum bounces back as market dominance recovers from all-time low

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Ethereum has staged a notable recovery after recently experiencing its lowest market dominance since its early days. The turnaround comes as ETH surged nearly 4% in the past 24 hours, climbing back above the $3,100 mark and narrowing its underperformance gap relative to Bitcoin.

For much of 2024, Ethereum has trailed behind Bitcoin and a growing wave of altcoins, with its market share dropping below 15% — levels not seen since 2015. The slump was driven by investor focus on Bitcoin ETF momentum, lackluster institutional interest in ETH, and rising competition from layer-1 and layer-2 networks offering faster and cheaper alternatives.

Despite these challenges, Ethereum’s fundamentals remain strong. Data shows a healthy uptick in active addresses, transaction volumes, and total value locked in DeFi protocols built on Ethereum. Additionally, hopes remain high for the approval of a spot Ethereum ETF in the U.S., with analysts suggesting a potential turnaround in institutional flows if approved.

Traders are now watching whether this rebound signals a sustained trend reversal or just a temporary relief rally. With key upgrades and ecosystem developments still in the pipeline, Ethereum’s ability to regain dominance may hinge on reigniting both investor confidence and broader developer activity.

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SEC says it won’t re-file fraud case against Hex’s Richard Heart

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The U.S. Securities and Exchange Commission (SEC) has confirmed it will not pursue a retrial in its fraud case against HEX founder Richard Heart, effectively bringing an end to one of the agency’s high-profile crypto enforcement actions.

The decision follows a recent court ruling that dismissed several key allegations against Heart, including claims that he misled investors and violated securities laws through the promotion and sale of HEX, PulseChain, and PulseX tokens. While the SEC initially signaled it would consider further legal options, it has now opted to forgo additional litigation.

Heart, a controversial figure in the crypto world, had long denied the SEC’s accusations, framing the lawsuit as an overreach by regulators. The agency had alleged that Heart raised over $1 billion from investors while misrepresenting how funds would be used and failing to register the offerings.

With the SEC stepping back, the dismissal marks a rare instance in which the regulator has chosen not to continue a crypto-related fraud case, potentially signaling a reassessment of its approach amid growing legal pushback and mounting scrutiny over its enforcement tactics.

Although the case is now closed, legal analysts suggest the outcome could influence future regulatory efforts and may embolden other crypto founders facing similar challenges. Heart, meanwhile, has positioned the development as a vindication, reaffirming his stance that HEX and related projects were never in violation of U.S. securities laws.

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