Ripple Ruling Deals a Blow to SEC’s Effort to Regulate Crypto (WSJ)
A cryptocurrency company defeated a significant part of the Securities and Exchange Commission’s enforcement case over its sale of more than $1.4 billion worth of a digital token known as XRP. U.S. District Judge Analisa Torres agreed with Ripple Labs’ argument that roughly half of its sales of XRP didn’t violate investor-protection laws. Ripple has argued that XRP, a token developed to facilitate cross-border payments, isn’t a security. The decision Thursday could buttress claims made by major cryptocurrency exchanges that are fighting similar SEC allegations over token trading.
Ripple Labs Notches Landmark Win in SEC Case Over XRP Cryptocurrency (Reuters)
Ripple Labs Inc did not violate federal securities law by selling its XRP token on public exchanges, a U.S. judge ruled on Thursday, a landmark legal victory for the cryptocurrency industry that sent the value of XRP soaring. XRP was up 75% by late afternoon on Thursday, according to Refinitiv Eikon data. The ruling by U.S. District Judge Analisa Torres was the first win for a cryptocurrency company in a case brought by the U.S. Securities and Exchange Commission -- though it did also give the SEC a partial victory.
Binance Lays Off Over 1,000 Employees (WSJ)
Binance, the giant crypto exchange, is cutting a big chunk of its workforce during a federal crackdown in the U.S. Over 1,000 people have been fired in recent weeks, according to a person familiar with the moves. The exercise, which is continuing, could result in Binance losing more than a third of its staff, the person said. More employees were laid off this week, according to former employees, who said customer-service workers were heavily affected. The cuts were global, including about three dozen customer-service employees in India.
Crypto Lender Celsius CEO Alex Mashinsky Arrested, Sued by Regulators (WSJ)
Celsius Network founder Alex Mashinsky was arrested in New York early Thursday morning and charged with defrauding the collapsed crypto exchange’s customers, part of an expanding federal crackdown on the cryptocurrency industry. The Justice Department charged Mashinsky with seven criminal counts including securities fraud, commodities fraud and market manipulation. Prosecutors also charged Roni Cohen-Pavon, the exchange’s former chief revenue officer, and accused both men of a yearslong scheme to mislead customers about the value of Celsius’s proprietary token.
Coinbase Rallies the Most Since Debut After Ripple Ruling (Bloomberg)
A federal court decision on a closely-watched crypto case involving Ripple Labs Inc. is taking Coinbase Global Inc. advocates back to a time when the potential for the largest US digital-asset exchange seemed almost limitless. Shares of Coinbase rallied 24% on Thursday after the ruling was seen as potentially narrowing US Securities and Exchange Commission oversight when it comes to what can be listed on crypto trading platforms. The stock surge was the most since Coinbase jumped 31% at its debut on the Nasdaq in April 2021.
Rival Exchanges Join Coinbase in Reopening XRP Trading After Court Ruling (The Block)
A growing number of cryptocurrency exchanges are reopening trading in XRP, after a mixed ruling from a United States federal judge on the ongoing legal battle between the securities regulator and Ripple. Crypto outfits including Crypto.com and Kraken Pro said Friday morning Asia time that XRP is once again listed on their trading platforms. Many exchanges operating in the U.S. halted XRP trading when the Securities and Exchange Commission filed a lawsuit against Ripple Labs at the end of 2020. Their about-turn comes with many observers celebrating yesterday's mixed ruling as a key victory for the sector.
Circle Plans Policy Push as US Congress Considers New Legislation (The Block)
Stablecoin issuer Circle is aiming to ramp up is messaging as the U.S. Congress considers new legislation for the sector. The company on Thursday posted a new 2-minute video, in which it argues that the country needs robust regulation if it wants a digital dollar or USD stablecoin to become the global reserve currency. "We are working hard to engage and educate DC on the issues, as this likely goes from a HSFC bill into law that’s being considered by the entire House of Representatives coming out of the summer recess," Circle CEO Jeremy Allaire told The Block.
Stablecoin Issuers Told to Start Preparing for 2024 EU Rules (Bloomberg)
Issuers of stablecoins should take immediate measures to comply with new European Union crypto regulations that come into effect a year from now, the European Banking Authority said. The EBA expects issuers of stablecoins — tokens that are pegged to an asset like the US dollar — to have sound governance and effective risk management in addition to proper arrangements for handling redemptions, among other things, the watchdog said in a statement on Wednesday.
Hedge Funds Are Showing Robust Confidence in Crypto, PWC Says (The Block)
Even though the percentage of traditional hedge funds investing in crypto declined from 37% to 29% in 2023, confidence in the value proposition and long-term sustainability of crypto assets "appears robust," PwC said Wednesday in a report. Traditional hedge funds with current crypto investments plan to either maintain or increase exposure, the report found. And that's regardless of market volatility and ongoing regulatory uncertainty that have challenged the sector.
FTX Bankruptcy Lawyers Ask Court For $323m Recovery From FTX Europe Leadership (CoinDesk)
Crypto exchange FTX's lawyers have asked a U.S. bankruptcy court in Delaware to award recovery of more than $323.5 million from FTX's Europe leadership, according to a court filing Wednesday. Lawyers on behalf of FTX Trading Ltd. and Maclaurin Investments Ltd. (owned by Alameda Research, the hedge fund arm of the bankrupt FTX empire) asked the court to order the return of funds transferred to Patrick Gruhn, Robin Matzke, Brandon Williams, and Lorem Ipsum UG, the leadership of FTX Europe.
Google Play Allows Users to Earn Crypto Assets in Apps and Games (The Block)
Google will now permit apps and games that allow users to buy, sell and earn digital assets like NFTs. Hoping to support the needs and ambitions of developers, the company said Google Play, where Android smartphone users download their apps, will now allow its partners to expand the number and scale of their blockchain-based offerings. “From reimagining traditional games with user-owned content to boosting user loyalty through unique NFT rewards, we’re excited to see creative in-app experiences flourish and help developers expand their businesses,” wrote Joseph Mills, the group product manager for Google Play.
Circle Cuts Workforce, Ends Certain 'Non-Core' Activities; Will Continue Hiring Globally (CoinDesk)
Stablecoin issuer Circle has cut its workforce slightly to maintain a “strong balance sheet,” the company said Wednesday. "To maintain our strong balance sheet, Circle is redoubling its focus on core business activities and execution,” a spokesperson for Circle told CoinDesk in an email. “As a result, we have reduced or ended investments in non-core activities and reduced operational expenses which includes a marginal reduction in headcount. At the same time, we have identified new areas for investment and are continuing to hire in key areas of focus on a global basis."
FTX Claims Portal Goes Live, Allowing Creditors to Submit Their Claims (The Block)
Failed cryptocurrency trading platform FTX has launched a customer claims portal. This lets individual clients access their account information and then file a petition that will be included in the company’s Chapter 11 bankruptcy proceedings, according to the site. The portal is for customers who had accounts with FTX.com, FTX.us, Blockfolio, FTX EU, FTX JP and crypto exchange Liquid. Last month, a U.S. court said customers should file their claims by September 29.
Singapore’s Temasek Says It’s Not Looking To Invest in Crypto Firms Amid Current Regulatory Uncertainties (CNBC)
Singapore’s sovereign wealth fund Temasek is not currently looking to invest in crypto companies amid regulatory uncertainty in the sector, its Chief Investment Officer Rohit Sipahimalani said. “There’s a lot of regulatory uncertainty in this environment. And I do think that be very difficult for us to make another investment and exchange in the middle of all this regulatory uncertainty,” Sipahimalani told CNBC in a Tuesday interview.
Russia to Start Piloting ‘Digital Rouble’ in August (Reuters)
Russia will start testing a digital version of its rouble currency with consumers from August, the Interfax news agency reported on Tuesday, citing the central bank. Russia, like many countries, has been developing digital money over the last couple of years in a bid to modernise its financial system and head off cryptocurrencies like bitcoin.
Arkham CEO Faces Pushback Over New Platform as Debate Over Anonymity Rages (The Block)
Miguel Morel, CEO of the blockchain data firm Arkham Intelligence, discussed the launch of its Intel Exchange data platform in a Tuesday Twitter Spaces event where he faced some pushback amid a raging debate between crypto anonymity and identity. When asked whether Arkham Intel Exchange incentivizes users to "dox," or reveal personally identifying information about, certain crypto wallets, Morel not only agreed but said that's the whole point of the platform.
Tokenized U.S. Treasurys Surpass $600M as Crypto Investors Capture TradFi Yield (CoinDesk)
The market value of blockchain-based investment products that wrap U.S. Treasury bills, bonds and money market funds into a form of a token total $614 million, according to real-world asset data firm RWA.xyz’s compilation. Demand for tokenized Treasurys among digital asset investors has been steadily growing as the yield on U.S. government bonds, widely considered as a risk-free interest rate, surpassed yields in decentralized finance (DeFi).
Mantle Network Is Voting to Form a $200 Million Ecosystem Fund (The Block)
Mantle Network has put forth a governance proposal aiming to set up a $200 million ecosystem fund. The intended use of this fund is to support the development of decentralized applications on its Ethereum Layer 2 network throughout the next three years. The proposal was jointly put together by the Mantle core team with one of its backers Mirana Ventures. Dubbed MIP-24, the proposal is seeking community approval to allocate $100 million from the Mantle's $2 billion treasury towards this fund.
15 Retail CBDCs Likely by 2030, BIS Study Says (CoinDesk)
Around 15 retail central bank digital currencies (CBDCs) could be in circulation across the world by the end of this decade, according to a survey carried out by the Bank for International Settlements (BIS). BIS, a Switzerland-based body owned by 63 central banks representing around 95% of the world economy, said nine central banks had also indicated they're “very likely” to issue a CBDC for wholesale use in financial markets within the next six years.
Standard Chartered Revises Bitcoin Price Target to $120,000 (The Block)
The largest cryptocurrency by market capitalization could appreciate in price by nearly $100,000 by the end of 2024, according to financial services giant Standard Chartered Bank. In a Monday research report, the UK-based global banking giant said that it increased its bitcoin price target from $100,000 — which it forecasted in April — to $120,000. The firm said the price of bitcoin could increase to $50,000 by the end of 2023. The report points to an increase in miner profitability as one potential tailwind that could trigger an appreciation in the price of the cryptocurrency.
Crypto Startup Arkham Has Apparently Been Doxxing Users for Months (CoinDesk)
Crypto data firm Arkham Intelligence stirred controversy Monday by announcing a new service aimed at unmasking the owners of digital wallets, angering privacy-focused crypto advocates. It turns out Arkham has already been leaking its own customers’ private information, a revelation that also seems to have emerged Monday, putting a spotlight on Arkham’s own approach to user privacy just as it was rolling out a service meant to unmask crypto wallet owners on a massive scale.
Grayscale Bitcoin Trust Discount Narrows to Lowest Since May 2022 (CoinDesk)
The discount to net asset value (NAV) for the $19 billion-plus Grayscale Bitcoin Trust (GBTC) continues to narrow in the wake of asset manager BlackRock’s (BLK) application to open a spot bitcoin ETF in the United States. The discount to NAV had ballooned to nearly 50% late last year and spent most of 2023 in a range on either side of 40%, but began a steep narrowing trend following BlackRock’s mid-June filing with the U.S. Securities and Exchange Commission (SEC). It fell to as low as 26% at one point last week – the trimmest level since May 2022 – and currently sits at about 27%, according to data from Ycharts.
BOND Token Slumps 10% as BarnBridge Faces SEC Investigation (CoinDesk)
Team members of the decentralized finance (DeFi) protocol BarnBridge are being investigated by the U.S. Securities and Exchange Commission (SEC) in the latest regulatory tussle faced by a crypto company in the country. BarnBridge offers interest rate swaps that allow for any variable yield offered by crypto platforms, such as Aave or Compound, to be swapped to a fixed rate. It had just over $1.2 million locked tokens as of Friday. At its peak the protocol held $500 million in users' assets.
Three Arrows Capital Liquidator May Try to Claw Back About $1.2B From DCG, BlockFi (CoinDesk)
The liquidator of Three Arrows Capital (3AC) may try to reclaim about $1.2 billion from Digital Currency Group (DCG) and crypto lender BlockFi, clawing back payments made by the hedge fund as liquidation loomed but before the process started. A confidential July 7 report from Teneo, the liquidator, that CoinDesk reviewed referred to more than $1 billion of “prospective claims” against DCG and its Genesis lending subsidiary consisting of “both preference claims and claims which have resulted from issues around the perfection of loan and security documentation.” It also noted more than $220 million of “preferential payments” to BlockFi.
SEC Approval of Spot Bitcoin ETF Is Unlikely to Be a Game Changer for Crypto Markets: JPMorgan (CoinDesk)
Any U.S. Securities and Exchange Commission (SEC) approval of a spot bitcoin exchange-traded fund (ETF) will not be a game changer for crypto markets for a number of reasons, JPMorgan (JPM) said in a research report Thursday. While the SEC has yet to approve such an ETF – despite receiving numerous applications – there is now more optimism the regulator will approve one because some of the previous concerns are assumed to have been addressed in recent filings, JPMorgan said.
Coinbase Knew It May Have Been Violating the Law Prior to the SEC's Lawsuit, Regulator Claims (CoinDesk)
Coinbase acknowledged the possibility that federal securities laws would apply to its listings years ago, the U.S. Securities and Exchange Commission (SEC) argued in a new filing Friday. The regulator filed its response to a Coinbase filing which argued that the agency does not have sufficient jurisdiction to bring a lawsuit against it. The SEC sued Coinbase a month ago, alleging it was operating as an unregistered broker, clearinghouse and exchange all in one go, having listed at least 13 different cryptocurrencies that are unregistered securities. In Friday's document, the SEC said that it would oppose any motion for judgment Coinbase might file, and asked a court to strike Coinbase's arguments that the suit violated the major questions doctrine and other concerns.
Grayscale Makes Lido the Second-Heaviest Component in Its Defi Fund (The Block)
Digital asset manager Grayscale added the Lido protocol's LDO token to its DeFi Fund, making it the second-heaviest component. Grayscale's DeFi Fund is now weighted to include Uniswap (UNI) at 45.46%, Lido (LDO) at 19.04%, Aave (AAVE) at 11.53%, MakerDAO (MKR) at 10.82%, Curve DAO Token (CRV) at 7.03% and Synthetix (SNX) at 6.12%.