Last week was (seemingly) all about Bitcoin. That said, the industry hit several (significant) milestones, with regulators following each move in tow.
The headlines:
- There was some activity on the Ethereum ETF option front;
- The FTX/Alameda drama is still ongoing;
- Tether will (finally) grow its workforce in 2025;
- An informant got the bag from the CFTC with a million-dollar payment;
- Plus, several cities in California are making big Bitcoin moves (more on that later);
- And much more!
As always, these are your decentralized diaries!
Bitcoin is at $58k
The markets continued to be choppy, with Bitcoin prices ranging from a $49,121.24 low to a $62,673.76 high and settling at $58,510.07 (as of 8/12/24). The altcoins are moving sideways as well.
Ethereum (ETH) is at $2,542.72, Solana (SOL) at $144.06, Avalanche (AVAX) at $20.64, Polkadot (DOT) at $4.53, and Chainlink (LINK) at $10.09.
Several Firms Withdrew Their Spot Bitcoin ETF Options Applications with the SEC
Following the success of the Spot Bitcoin ETF markets, the next level of the markets (options) continued to face some drama. Exchange MIAX, MIAX Pearl, BOX Exchange, and Cboe withdrew their Bitcoin ETF options applications.
However, on August 8, Cboe was back at the SEC with a refiled (and more extensive) version of a fresh application. Similarly, the regulator delayed its decision on the Hashdex Nasdaq Crypto Index US ETF till September 30.
FTX and Alameda Research Reached a $12 Billion Settlement with the CFTC
The (ongoing) FTX drama continued with a settlement agreement between FTX, Alameda Research, and the CFTC. Judge Peter Kevin Castel approved the (previously) filed settlement. FTX and Alameda will pay $8.7 billion (approximately) in restitution and $4 Billion in disgorgement.
Additionally, the court prohibited both parties from owning digital asset commodities, including Bitcoin, Ether, and Tether.
Tether Revealed 2025 Hiring Plans
Stablecoin issuer Tether will increase its workforce significantly next year. In an August 9 Bloomberg interview, Tether CEO Paolo Ardoino indicated that its workforce could double by the middle of next year.
Furthermore, Ardoino iterated that the firm will pay attention to its compliance and finance units.
BlackRock and Nasdaq Filed for Ethereum ETF Option Rule Changes
Investment behemoth BlackRock worked with exchange operator Nasdaq to introduce Ethereum ETF options. According to an August 6 filing, the duo proposed rule changes to the iShares Ethereum Trust.
The move follows the SEC’s (prior) approvals of Ethereum ETF applications filed by several parties last month.
Bitcoin Core Devs Launched Replace-by-Fee Functionality
The crypto community (now) has flexibility per transaction fees with the availability of the much-awaited Replace-by-Fee feature. In an announcement, Bitcoin Core developer Peter Todd revealed RBF availability for Bitcoin Core v28.0.
The CFTC Paid a Whistleblower $1 Million
In an August 8 announcement, the CFTC revealed that it would pay $1 million to reward an informant who exposed a situation that led to enforcement actions by the regulator. The CFTC did not reveal other details about the event, including the person’s identity.
The Federal Reserve Called Out Customers Bank Over Compliance Issues
In a rare move, the Federal Reserve issued a compliance-focused enforcement action against crypto-friendly Malvern, Pennsylvania-based Customers Bank. The central bank highlighted issues in its compliance and anti-money laundering framework for digital asset-related transactions.
According to the order, the regulator requires Customers Bank to provide plans to modify several processes, including crypto risks, Bank Secrecy Act/anti-money laundering, enhanced KYC, and conformity with Office of Foreign Assets Control (OFAC) rules.
Consequently, the bank’s top executives indicated in an August 5 enforcement agreement that they would fix the issues.
Celsius Network Sued Tether to Clawback $3.5 Billion
Surprisingly, bankrupt crypto lender Celsius Network filed a lawsuit against stablecoin issuer Tether on August 9 to attempt to recover 39,542.42 BTC. In the filing, Celsius alleges that Tether initiated a fire sale of its (collateralized) digital assets in ten hours on June 13, 2022.
Celsius (also) accused Tether of selling the assets at forced value, indicating that the move contributed to its inability to weather crypto market volatility. Previously, both parties engaged in a series of transactions that led to the liquidation event.
Tether CEO Paolo Ardoino indicated that Celsius instructed Tether to sell its Bitcoin holdings. Ardoino (also) revealed that the stablecoin issuer returned the surplus to the crypto lender. He also highlighted a transparent revelation of the said transaction at the time.
Speed Wallet Launched USDT Tokens for the Bitcoin Lightning Network
In an August 7 post on its website, Lightning Network-focused Speed Wallet launched USDT-L, the first stablecoin on Bitcoin’s Layer-1 chain. The wrapped USDT tokens offer several advantages, including fast transactions and lower transaction costs.
Additionally, the USDT-L leverages the Taproot Assets protocol to improve security, privacy, and scalability. Users can access the token via Speed Wallet’s Ethereum bridge or through regular activities.
Swap functionality between Bitcoin and the USDT-L will (soon) be available.
The Santa Monica Bitcoin Office Made an Interesting Announcement
Adoption efforts continued to spread, with the Santa Monica Bitcoin Office announcing a one-day Bitcoin festival. The event is scheduled for October 18 (subject to any changes) and will feature several activities to educate the public on the various sectors of the Bitcoin ecosystem.
Crypto nonprofit Proof of Workforce Foundation partnered with the Santa Monica Bitcoin Office to launch the initiative.
A California City is Ready for New Bitcoin ATM Rules
In related news, Chico City, Butte County, California, has indicated its readiness for the new Bitcoin ATM legislation signed last year by Governor Gavin Newsom. In an August 7 meeting, Butte County Chief Administrative Officer Andy Pickett indicated that local jurisdictions may have to implement their (own) regulations in tandem with California’s crypto laws.
He also iterated that the measures may receive legal challenges, forecasting that locales wouldn’t need to take action once California’s Digital Financial Assets Law came into full effect.
