The Securities and Exchange Commission has dropped its lawsuit against Gemini, the crypto exchange founded by twins Cameron and Tyler Winklevoss. The Winklevoss twins were donors to Donald Trump’s re-election campaign and also backed his family’s business ventures. In a joint filing on Friday, the SEC and Gemini asked the court to dismiss the lawsuit, which centered on the collapse of an investment product called Gemini Earn, with some investors losing access to their money for 18 months. New York Att ...

Core Viewpoint - Major crypto exchanges Binance and OKX are exploring the reintroduction of tokenized US stocks to diversify into real-world assets amid stagnant crypto trading volumes [1][4]. Group 1: Tokenized Stocks Initiative - Binance is considering relaunching tokenized stocks for non-US users, a product it previously tested in 2021 but abandoned due to regulatory challenges [2][3]. - The initial launch in April 2021 included stock tokens for major companies like Tesla, Microsoft, and Apple, issued by German broker CM-Equity AG [2]. - The service was discontinued in July 2021 under regulatory pressure from authorities such as Germany's BaFin and the UK's FCA, which viewed the offerings as unlicensed securities [3]. Group 2: Market Context and Motivations - Crypto exchanges are seeking new revenue streams due to persistent stagnation in trading volumes, with average daily spot volumes in January 2026 tracking 2% below December and 37% below November levels [5]. - Analysts indicate that crypto markets remain largely dormant, with volatility and trading volume near December's lows, suggesting a liquidity trap that amplifies risk for traders [6][7]. - The exploration of tokenized equities is seen as a "natural next step" for bridging traditional finance and crypto [4].

Core Viewpoint - The U.S. Securities and Exchange Commission (SEC) has decided to dismiss its enforcement case against a cryptocurrency exchange founded by billionaire twins Tyler and Cameron Winklevoss, following the full recovery of assets by investors in its lending program [1] Group 1 - The SEC's dismissal of the case indicates a positive outcome for the cryptocurrency exchange and its investors [1] - The recovery of assets in full suggests that the lending program was able to meet its obligations to investors [1]

Binance, the world’s largest crypto exchange, has established a presence in Greece as it seeks a license that would allow it to operate anywhere in the European Union. The EU’s Crypto-Assets Regulation, or MiCA, provides a framework for almost all aspects of centralised crypto asset trading. And it allows crypto companies that set up shop in one EU member state to market their services to consumers throughout the 27-nation bloc. “We have submitted our MiCA application and are actively engaging with the ...

Binance is exploring plans to bring back stock trading on its platform four years after discontinuing the feature, according to a report from The Information. The world’s largest crypto exchange removed stock tokens in 2021 amid regulatory scrutiny, but now appears ready to re-enter equity markets as competitors push toward unified investment platforms. The timing aligns with a broader industry shift toward “everything exchanges” that combine crypto and traditional assets under a single platform. Coinba ...

Group 1 - Coinbase announced the listing of a perpetual-style futures contract for Sentient (SENT) on its regulated trading platform, which has led to increased trading interest among derivatives traders [1] - The introduction of SENT futures aligns with a broader trend where US exchanges are competing to offer trading tools that were previously available only on offshore platforms [3] - Futures contracts are significant in the crypto market, driving approximately 75% of global trading volume, indicating their importance for speculation and hedging [2] Group 2 - The approval from the CFTC and NFA allows Coinbase to offer altcoin futures on a US-compliant platform, reducing counterparty risk and the likelihood of sudden exchange shutdowns [3] - The addition of SENT futures is expected to influence regular crypto investors, as futures markets often lead price movements, with increased activity in futures typically resulting in corresponding changes in spot prices [4] - Coinbase is likely to continue expanding its offerings of altcoin futures as US regulations evolve, indicating a growing market for these financial instruments [5]

Binance is considering bringing back tokenized stock trading on its platform, after abandoning the product in 2021. Stock tokens are digital representations of shares in public companies. Instead of owning a whole share of Apple or Microsoft, an investor can buy a fraction of a share — held and settled on a blockchain — mirroring the real-time price of the underlying asset. "Binance is committed to bridging traditional finance and crypto, expanding user choices while maintaining the highest regulatory s ...

Core Viewpoint - Coinbase Global (COIN) shares have experienced a 10.2% decline over the past five trading days, raising concerns about the impact of geopolitical tensions and delayed cryptocurrency regulations on the company's performance [1] Company Position - Coinbase Global is currently valued at $58 billion, with a revenue of $7.0 billion and a trading price of $226.93 [3] - The company has achieved a revenue growth of 48.6% over the last 12 months, alongside an operating margin of 27.0% [3] Historical Performance - Historically, COIN has delivered a median return of 18.3% within a year following sharp declines since 2010, indicating potential for recovery [4] - The stock has dropped 90.9% from its peak of $357.39 on November 9, 2021, to $32.53 on December 28, 2022, while the S&P 500 experienced a peak-to-trough decline of 25.4% during the same period [10] Downturn Resilience - Concerns arise regarding COIN's resilience if the market declines further, particularly if the stock decreases an additional 20-30% to $159 [5] - COIN has performed significantly worse than the S&P 500 during various economic downturns, both in terms of the extent of decline and recovery speed [5] Liquidity and Valuation - Coinbase Global has a Debt to Equity ratio of 0.08 and a Cash to Assets ratio of 0.41, indicating strong liquidity [9] - The shares are currently trading at a P/E multiple of 20.2 and a P/EBIT multiple of 16.3, suggesting a high valuation [9]

Coinbase has launched a new borrowing feature that allows users to access up to $1 million in liquidity using cbETH — its tokenized representation of staked ether — as collateral, giving investors a way to raise cash without selling or unstaking their ETH. The product, now available to eligible U.S. customers excluding New York, lets users borrow USDC against cbETH held on the platform and convert it to dollars inside Coinbase. The move suggests growing demand for ways to unlock liquidity from staked as ...

Core Insights - A significant shift is occurring in the crypto derivatives market, particularly affecting the cash-and-carry trade, which is showing signs of collapse [2][4] - Open interest in Bitcoin futures on the Chicago Mercantile Exchange (CME) has fallen below that of Binance for the first time since 2023, indicating a change in market dynamics [2][6] Market Structure Changes - The cash-and-carry trade, where institutions buy spot Bitcoin and sell futures to exploit pricing gaps, is diminishing, reflecting a deeper transformation in the crypto market structure [2][4] - The CME had been the preferred exchange for executing these trades, especially after the launch of spot Bitcoin ETFs in early 2024, which initially provided attractive returns [3][4] Yield and Returns - Annualized returns on the delta-neutral strategy, which previously reached double digits, have significantly decreased, with current one-month annualized yields around 5%, the lowest in years [4][5] - The basis, which was approximately 17% a year ago, has now compressed to about 4.7%, barely covering funding and execution costs, diminishing the trade's attractiveness [5] Open Interest Trends - CME Bitcoin futures open interest has dropped below $10 billion from a peak of over $21 billion, while Binance's open interest remains stable at around $11 billion, indicating a pullback from hedge funds and larger US accounts [6] - This shift does not represent a complete withdrawal from crypto but rather a strategic retreat as market conditions change [6] Trading Dynamics - Crypto exchanges like Binance dominate the perpetual futures market, which accounts for the largest trading volumes in the crypto sector [7] - CME has introduced smaller-sized, longer-dated futures contracts for crypto assets, allowing investors to hold positions for extended periods without needing to roll into new contracts [7]