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Bitcoin Company and Texas University Partner to Create $5 Million Endowment Fund
some of the major developments in the world of cryptocurrencies
Financial services firm Bitcoin Unchained and the University of Austin have partnered to launch a long-term endowment fund worth 68,178 BTC. On May 31, Austin, Texas-based cryptocurrency services and custody company Unchained announced a new partnership with the University of Austin (UATX) for the next five years.
Unchained CEO Joseph Kelly launched the fund with a personal donation of 2 BTC, equivalent to approximately $137,000 at current prices. The program aims to promote community involvement through cooperative marketing initiatives, events, conferences and discussions aimed at educating the public about the benefits and potential of Bitcoin to transform finance and education.
University endowments are collections of money or other financial assets given to an academic institution that serves as a self-sustaining source of revenue by not consuming the entire endowment. UATX is not the only US university to invest in cryptocurrency. Additionally, Ivy League universities such as Harvard, Yale, and the Massachusetts Institute of Technology (MIT) invested in cryptocurrencies in 2018.
Read also: Cryptocurrency Market Declines Marginally, Trading Volume Increases; Bitcoin up, Ethereum down
Terraform and Do Kwon to Settle Fraud Case with SEC
Terraform Labs and its former CEO, Do Kwon, have reached an agreement in principle to resolve a fraud case with the U.S. Securities and Exchange Commission according to court filings. Lawyers for both sides announced the agreement in principle in a conference call with Judge Jed Rakoff on May 29. Terraform Labs and CEO Do Kwon are expected to reach a settlement with the SEC by June 12.
The SEC’s case against Terraform and Kwon focused on the deceptive promotion and sale of crypto tokens, specifically the algorithmic stablecoin TerraUSD (UST) and Terra-related tokens. The collapse of Terraform Labs in May 2022 triggered the latest cryptocurrency winter, leading to a sharp downturn across markets and affecting several cryptocurrency companies and investors.
Kwon and Terraform could face significant fines as SEC sought approximately $5.3 billion in disgorgement, interest and civil penalties. Kwon was arrested in March 2023 while trying to leave Montenegro on charges of forging travel documents and may be prosecuted there as well. He was later released on bail and the United States is seeking his extradition.
SEC Commissioner Proposes Secure Zone Experiment for Digital Securities
Securities and Exchange Commissioner Hester Pierce recently published a letter proposing a cross-border sandbox program between US and UK blockchain companies experimenting with tokenized securities. During a recent panel at Consensus 2024, Hester Pierce said her “sandbox” presentation would provide opportunities for cross-border collaborations between blockchain companies without fear of regulatory threats.
Pierce’s letter follows a joint proposal made by the Bank of England (BOE) and the UK’s Financial Conduct Authority (FCA) to create a safe environment for UK blockchain startups to test real-world implementation of issuing and trading tokenized securities, citing concerns about retaliation by state authority. Additionally, the SEC could develop its microinnovation sandbox in the United States, allowing participants to set their own parameters and run experiments within specific boundaries to gain insights.
The Commissioner proposed a set of requirements for a cooperative digital securities sandbox program between reputable blockchain businesses in the United States and the United Kingdom. The letter from the pro-cryptocurrency regulator also highlighted the benefits of security tokenization, including lower transaction costs, greater settlement finality, and greater transparency for investors and market participants.