The U.S. Commodity Futures Trading Commission is ushering in a new form of federally regulated crypto trading, having encouraged its regulated platforms to open up leveraged spot digital assets products, which is set to begin next week with Bitnomial. The Bitnomial exchange is regulated by the U.S. derivatives watchdog as a designated contract market (DCM), meaning this new activity will be launching in a fully regulated space, following strong encouragement from the federal agency — including direct meet ...

Market Overview - Cryptocurrencies are experiencing a rise, with Bitcoin increasing by 1.5% to around $92,000 and Ether climbing 3% to $3,88 [2] - American Bitcoin, a mining stock linked to the Trump family, is recovering after a significant drop of about 40% [3] Company Developments - Binance has appointed a new co-CEO, Yihei, to work alongside Richard Tang, who took over leadership after CZ stepped down in 2023 [4] - BlackRock's CEO, Larry Fink, reaffirmed his belief in Bitcoin's long-term potential, highlighting the growing number of long-term holders [5] - Coinbase's CEO, Brian Armstrong, emphasized the company's efforts in Washington to advocate for crypto-related legislation [7] Legislative Efforts - Coinbase's chief legal officer, Paul Greywall, is heading to Washington, D.C. to discuss crypto market structure legislation, which is a priority for both Coinbase and the broader crypto industry [10][18] - There is a bipartisan consensus emerging in Congress regarding the definition of digital asset securities and the regulatory roles of the SEC and CFTC [21][22] - The Senate Agriculture Committee has released a draft bill for crypto market structure, which includes provisions for the CFTC to have more regulatory authority [22] Future Outlook - The crypto industry is hopeful for the passage of market structure legislation by the end of the year, despite potential delays due to the upcoming elections [28][30] - The focus on crypto legislation remains bipartisan, with past successes indicating a strong possibility for future advancements [30]

Bitcoin and companies tied to cryptocurrencies extended a nearly two-month swoon Monday, tracking with a broader market sell-off in technology companies that many see as overvalued.Bitcoin slid 5.6% after being down nearly 12% earlier in the day, settling in just above $85,000. The most-traded cryptocurrency is down about 33% since hitting a record $126,210.50 on Oct. 6, according to crypto trading platform Coinbase. Bitcoin had soared since April in line with the stock market and driven partly by a more cr ...

Another week, another crypto Asia update. In this week’s update, the focus has shifted towards maintaining regulatory clarity and reinforcing digital asset infrastructure rather than sweeping changes. Governments are fine-tuning what’s already in place. Here’s the rundown of the biggest headlines from this week in crypto Asia. India Formally Reviews Its VDA Framework India currently has more than 100 million crypto users in the country, but lacks a proper framework to govern the sector. For now, the sys ...

Core Viewpoint - The SEC's potential plan to allow crypto companies to sell "tokenised" stocks may pose risks to investors, according to a letter from a group of stock exchanges [1][3]. Group 1: SEC's Regulatory Approach - Several crypto companies intend to offer crypto tokens linked to listed equities, allowing retail investors to gain stock exposure without direct ownership [2]. - The SEC is considering an "innovation exemption" from securities laws to enable crypto firms to explore new business models [3]. - The WFE expressed concerns that such exemptions could jeopardize market integrity and investor protections [3][4]. Group 2: Industry Reactions - The WFE, which includes major exchanges like Nasdaq and Deutsche Boerse, has previously voiced alarm over platforms offering tokenised stocks [5]. - The letter from the WFE indicates a pushback from traditional finance against certain crypto initiatives, particularly as they begin to compete with established financial services [6]. - The WFE advocates for a level playing field, suggesting that both crypto platforms and traditional finance should adhere to the same regulatory standards [6][7].

Core Insights - The UK Financial Conduct Authority (FCA) has launched a special cohort within its Regulatory Sandbox for firms issuing blockchain-based stablecoins pegged to currencies like the British pound and US dollar, marking a significant step towards regulating the crypto industry [1][7] - The initiative aims to support agile policymaking and industry development, allowing firms to provide practical feedback to the regulator [2] - The FCA's move comes amid criticism of the UK's slow regulatory response compared to the EU and US, which have implemented more proactive regulations for digital assets [5][4] Regulatory Environment - The UK crypto asset market remains largely unregulated, with the Bank of England proposing to cap individual stablecoin holdings between £10,000 and £20,000 and business holdings to £10 million, which has faced criticism from industry insiders and legislators [3][4] - The FCA's recent consultations and plans to support the tokenization of the UK's nearly $19 trillion asset management industry indicate a shift towards more structured regulation [2] Industry Response - Industry representatives have expressed concerns that the UK's regulatory approach may deter crypto businesses from establishing operations in the country, highlighting the need for a more favorable regulatory environment [4][5] - A major firm has already been accepted into the FCA's stablecoin cohort and is preparing to test a British pound stablecoin in the coming months, signaling potential growth in the sector [7]

Core Insights - Polymarket has received approval from the CFTC to operate as a regulated exchange in the U.S. [1][2][4] - The approval allows Polymarket to onboard U.S. brokerages and customers directly, facilitating trading on U.S. venues [3][7] - The platform has made significant progress in the prediction market, raising $2 billion at a $9 billion valuation [6] Regulatory Developments - The CFTC issued an amended order of designation, enabling Polymarket to operate an intermediated trading platform [2][7] - As part of the approval, Polymarket has developed enhanced surveillance systems and market supervision policies [5] Operational Enhancements - Polymarket plans to implement additional rules and processes for intermediated trading before its official U.S. return [5] - The platform aims to leverage traditional market infrastructure, custody, and reporting channels for trading [3]

Core Insights - The cryptocurrency market is experiencing a rebound after a recent sell-off, with Bitcoin surpassing $87,000 and Ether rising to $2,863, indicating a positive trend for digital currencies [2][3] - Research indicates that stable coins now constitute 9% of the total crypto market cap, marking a two-year high, as investors seek protection from market volatility [3][4] Market Trends - There is a notable shift towards stable coins among crypto investors, driven by factors such as clearer regulations, increased institutional interest, and their growing use in cross-border payments and DeFi [3][4] - The stable coin market share has been rising over the past five months, reflecting a more cautious approach among investors in the crypto space [4] Regulatory Developments - The signing of the Genius Act stable coin bill into law in the US represents a significant regulatory advancement, enhancing investor confidence and attracting more capital into the sector [4] - NASDAQ is actively pursuing the introduction of tokenized securities, having filed an application with the SEC, which could allow for the trading of tokenized stocks on a major US exchange [8][9] NASDAQ's Initiatives - NASDAQ aims to bridge the digital asset world with traditional finance by allowing investors to choose between tokenized and traditional asset representations [11][12] - The exchange emphasizes maintaining investor rights and protections while integrating tokenized assets into existing market structures [15][19] Benefits of Tokenization - Tokenization is expected to improve efficiency, enhance audit trails, and potentially allow for 24/7 trading, with immediate benefits in post-trade processing and settlement [21][22] - The ability to use tokenized assets for collateral mobility is anticipated to enhance capital efficiency in the market [24][25] Product Offerings - NASDAQ has introduced various crypto-related products, including spot Bitcoin and Ether ETFs, and is open to listing additional ETPs as long as they meet established criteria [27][28]

Core Insights - The IRS is proposing new rules requiring U.S. taxpayers to report and pay taxes on foreign crypto accounts, modeled after existing frameworks for offshore bank accounts [2][3] - The proposal aims to increase visibility and compliance for U.S. taxpayers holding crypto with foreign entities, which could include various offshore exchanges and custodians [2][5] - The impact of this change will primarily affect a specific group of crypto taxpayers who have not been fully compliant with existing tax regulations [6] Regulatory Changes - The new IRS proposal is part of a broader effort by the Treasury to impose reporting obligations on "digital asset accounts" held abroad, with a deliberately broad definition of foreign accounts [2] - The implementation of the proposed rules is expected to discourage U.S. taxpayers from moving their digital assets to offshore exchanges, promoting the growth of digital assets within the U.S. [3] Taxpayer Cohorts - There are four identified cohorts of crypto taxpayers in the U.S., with the new rules primarily impacting those who have been skirting tax obligations [6] - The cohorts include those who report all transactions, those who only report gains when cashing out, those who do not report at all, and those without taxable gains [7]

Core Viewpoint - The rise of stablecoins is prompting U.S. banks and regulators to push the Basel Committee to reconsider its stringent capital requirements for crypto assets, as stablecoins are currently treated similarly to volatile cryptocurrencies under existing regulations [1][2]. Group 1: Regulatory Landscape - Erik Thedéen, chair of the Basel Committee, acknowledged the need for recalibration of the global regulatory framework due to conflicting perspectives among international regulators, making consensus difficult [2][3]. - The current regulations require banks to maintain significant capital reserves against potential crypto losses, with a 1,250% risk weight imposed on unbacked crypto assets like Bitcoin and Ethereum, classifying them as highly hazardous [3][4]. - The harsh regulatory approach, initially designed as a protective measure, is being reassessed as the use of stablecoins expands and major economies pursue different regulatory paths [5][6]. Group 2: Impact on Financial Institutions - The Basel Committee's regulations, set to take effect on January 1, mandate that banks reserve $1.25 in capital for every $1 of crypto held, making direct engagement with crypto financially unfeasible for most institutions [4]. - As a result, banks have largely avoided holding or providing loans against crypto assets, keeping them off institutional balance sheets [4][5]. - The recent surge in stablecoin usage has intensified demands for reform of these capital requirements, as the focus of regulation is shifting towards stablecoins [6][7].