Schlagwort: crypto news

• Trump’s team eyes XRP, Solana, and USDC reserves as part of the “America-first” policy.
• The move aims to boost US crypto innovation.
• However, the move has some wondering whether it will be at the expense of the promised Bitcoin reserve.

Donald Trump’s transition team is actively considering the establishment of strategic reserves for certain digital currencies besides Bitcoin. Sources reveal that the focus is on US-based cryptocurrencies such as XRP, Solana, and the stablecoin USDC, aiming to bolster America’s position in the global crypto market.

This initiative comes as part of Trump’s broader “America-first” policy, which, in the realm of digital finance, could mean a significant shift towards recognizing and supporting cryptocurrencies that originate within the US.

The idea of creating strategic reserves for these assets is seen by some as a way to foster innovation and maintain US dominance in emerging financial technologies.

XRP, Solana, and USDC are all by US-based firms

XRP is associated with Ripple Labs, a cross-border payment company based in San Francisco. Solana (SOL), on the other hand, is associated with Solana Labs which is also based in San Francisco, while USDC is associated with Circle which is headquartered in Boston, Massachusetts, United States.

The inclusion of XRP, which has been embroiled in legal battles with the SEC, could indicate a potential shift in regulatory attitudes under Trump’s administration.

Ripple’s CEO Brad Garlinghouse and other key figures have reportedly engaged with Trump, suggesting a possible thaw in the frosty relations between the crypto sector and regulatory bodies.

Great dinner last night with @realDonaldTrump & @s_alderoty.

Strong start to 2025! pic.twitter.com/UjM6lahUG4

— Brad Garlinghouse (@bgarlinghouse) January 8, 2025

Solana, known for its high throughput and being a competitor to Ethereum, along with USDC, one of the most widely used stablecoins pegged to the US dollar, are also under consideration. This move could encourage further development and adoption of these platforms by providing them with a form of governmental endorsement or at least, recognition.

The anticipation around these developments is palpable, with the crypto industry on high alert for any executive orders or policy announcements that might come from the Trump administration upon his inauguration on January 20.

The sector is particularly hopeful for regulatory changes, including the possible repeal of SAB 121, which could open up more avenues for banks to engage with crypto assets.

As we move closer to the inauguration, all eyes will be on whether these strategic reserves will actually be approved and how they might shape the future of cryptocurrency in the US, potentially heralding a new chapter for digital finance under Trump’s leadership.

Does this mean Bitcoin could be sidelined?

However, this strategy has sparked debate within the crypto community. While some celebrate the potential for increased legitimacy and support for US-based digital currencies, others express concern that this focus might sideline Bitcoin, the original and most recognized cryptocurrency.

There’s a worry that such policies might skew market dynamics in favour of these selected altcoins, potentially impacting the decentralized ethos that many in the crypto space hold dear.

However, there are no signs that the transition team is sidelining Bitcoin. Besides, Donald Trump had initially proposed the creation of a Bitcoin reserve during the campaigns. Only time will tell how all this plays out, especially with less than four days remaining for Donald Trump to take the oath of office.

The post Donald Trump’s team considering XRP, Solana, and USDC strategic reserves appeared first on CoinJournal.

• A three-judge panel from the U.S. Court of Appeals for the Third Circuit has demanded the SEC explain why it did not respond to Coinbase’s requests for clear regulations.
• A recent ruling by the panel has called the SEC’s actions “arbitrary and capricious”.

The U.S. Court of Appeals for the Third Circuit on Monday demanded that the SEC explain itself for refusing to set clear crypto regulations when Coinbase requested they do so after the regulator issued the exchange with a Wells Notice in March 2023.

According to one of the Judges, “Rather than force the agency to make a rule, we order it to explain its decision not to.” Another cautioned the SEC against rendering a poor explanation like it has been doing.

The SEC vs Coinbase

The SEC’s case against Coinbase began in March 2023 when it issued the exchange with a Wells Notice for violating securities regulation through its staking services and asset listings.

Coinbase responded with confidence in the legality of its operations and attempted to engage with the regulator to clarify the basis of its Wells Notice and set clear regulations.

The SEC however maintained that current securities regulations were sufficient to regulate cryptos and filed a lawsuit in June 2023.

Recent developments

Coinbase won against the regulator following a ruling to freeze the case on the grounds of novelty as various courts across the country are reaching different conclusions on cryptos being securities.

The SEC’s case will now go to an appeals court where it will be decided whether it should be tried in a district court.

This new development from the panel from the U.S. Court of Appeals for the Third Circuit deals another blow to the SEC one week to the end of Gary Gensler’s term as SEC Chair.

Meanwhile, Coinbase Legal Head, Paul Grewal, counts this as a victory for Coinbase

https://twitter.com/SECGov?ref_src=twsrc%5Etfw

https://twitter.com/iampaulgrewal/status/1878860619895685283?ref_src=twsrc%5Etfw

The post US Judges Demand Explanation from SEC for its Refusal to Set Clear Crypto Rules appeared first on CoinJournal.

• South Korea’s financial regulator plans to gradually ease restrictions on institutional crypto trading, allowing them access to local crypto markets.
• Non-profit organisations are at the top of the list of institutions which will be allowed to trade cryptocurrencies.

The Financial Services Commission of South Korea plans to gradually lift restrictions on crypto trading following the passing of its Virtual Asset User Protection Act in July 2024 which aims to curb unfair trading practices on an institutional level.

South Korea’s FSC Secretary-General Kwon Dae-young aims to align with global regulatory practices, which have shifted over the last several months from overly restrictive to more enabling, especially in the Asian region.

The Virtual Asset User Protection Act

The Virtual Asset User Protection Act is a response to the fall of exchanges like FTX and black swan events like the Terra network crash, caused by negligence and unethical practices.

FTX’s crash led to losses between $8 – $10 billion, much of which belonged to institutions.

To be clear, crypto trading is not banned in South Korea, however, banks have been instructed to restrict institutional trading. Retail traders can still access the market from regulated local exchanges.

The new rules provide frameworks that prevent large-scale delisting of digital assets by standardising the criteria for listing and delisting.

Moving forward

The FSC plans to allow institutional trading in phases and eventually expand its regulations to make provisions for stablecoins and token listings.

According to Kwon Dae-young, “We need to discuss how to create listing standards, what to do with stablecoins, and how to create rules of conduct for virtual asset exchanges.”

The post South Korea Plans to Relax Institutional Crypto Trading Restrictions appeared first on CoinJournal.

• GSR has received a regulatory nod from the UK’s Financial Conduct Authority.
• The cypto trading firm also holds a crypto license from the Singapore Monetary Authority.

GSR, a crypto trading firm and market maker, has received regulatory approval from Financial Conduct Authority (FCA), the financial markets regulator in the UK.

In a press release on Jan. 6, GSR said the regulatory approval means GSR Markets UK Limited is duly registered to conduct crypto related business in the country. It will support crypto trading in the UK, reaching both local/resident clients and across the globe.

GSR’s approval maps the firm as the first crypto liquidity provider to offer over-the-counter and crypto asset trading services.

According to the announcement, the firm seeks to expand its services delivery globally. This follows the firm’s milestone of having received regulatory nods from the two major crypto regulation jurisdictions.

GSR seeks global traction

Notably, Singapore’s Monetary Authority of Singapore granted regulatory approval to GSR as a crypto liquidity provider in April 2024. GSR is a Major Payment Institution licensed firm in Singapore.

The move for global regulatory approval aligns with GSR’s quest to offer its services alongside the standard principles of compliance and integrity – a top goal for company brand and image built over time.

GSR Group CEO Xin Song noted that the two global financial regulators’ approvals “marks a significant milestone in our mission to shape a more transparent, inclusive global crypto trading ecosystem.”

He confidently added that getting regulatory approvals from leading financial regulators makes the firm confident to expand on its services delivery to clients globally.

“By achieving approvals from two of the world’s leading financial regulators, the GSR Group can confidently expand our services to institutional and professional clients globally while continuing to uphold the integrity and high-quality service that we are known for,” the GSR Group chief executive added.

The post Crypto trading firm GSR secures FCA approval appeared first on CoinJournal.

• Tether’s market capitalisation slid 1.5% over the last seven days as broader MiCA regulations across crypto asset service providers in the Eurozone kicked in on Dec 30.
• These regulations include some stringent rules for global stablecoin providers as some European exchanges have begun to delist USDT.

Leading stablecoin Tether (USDT) has lost 1.5% of its market capitalisation over the last seven days, falling to $137.32Bn from $139.46Bn after broader MiCa regulations kicked in on Dec. 30.

Per the regulations, European exchanges have begun to delist USDT from their crypto lineup, directly contributing to USDT’s falling market share and capitalisation.

MiCA rules around stablecoins

The Markets in Crypto Assets (MiCA) regulation was approved in June 2024, however, the broader regulatory framework for crypto asset service providers kicked in on Dec. 30.

According to the new framework, dollar-denominated stablecoins like USDT and USDC are regulated to limit their dominance within the EU, encouraging the use of Euro-pegged stablecoins for settlements and transactions.

While dollar-pegged stablecoins are not outrightly banned (users can hold them in decentralised wallets), they are subject to stricter rules (like maintaining a 30% reserve in traditional banks, which could impact cash flow) and are restricted on registered exchanges within the EU.

Comments from industry insiders remain unfazed as the bulk of USDT trading and transactions come from Asia and the US, where USDT is not restricted.

Meanwhile, Tether CEO, Paolo Ardoino, retweeted a post citing that Tether’s daily trading volume outpaced the second-largest stablecoin by 14x by Dec. 31.

🔥 https://t.co/IAOAkFjvM8

— Paolo Ardoino 🤖🍐 (@paoloardoino) December 31, 2024

The post Tether’s Market Capitalisation Slips as MiCA Regulations Kick in appeared first on CoinJournal.