The industry resumed its day in the sun, with the government turning a favorable eye to crypto-related issues. It looks like the rise of ‘crypto X’ or ‘crypto Twitter’ is coming as updates hit the Elon Musk-owned platform first before anywhere else.
The headlines:
- Crypto ETFs are on the horizon;
- The SEC shuttered SAB 121;
- President Trump issued a pro-crypto executive order;
- MetaMask warned against memecoin FOMO;
- Plus, CZ is back in the crypto space!(more on that later);
- And much more!
As always, these are your decentralized diaries!
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Bitcoin is at $103k (as of 1/27/24)
Crypto volatility continued to rule the markets. Bitcoin moved from a $99,471.35 low to a $109,114.88 high before settling at $103,389.94.
The altcoins are moving in different directions. Ethereum (ETH) is at $3,269.76, Solana (SOL) at $246.20, Avalanche (AVAX) at $36.78, Chainlink (LINK) at $25.63, Polkadot (DOT) at $6.30, and Uniswap (UNI) at $11.65.
The ETF Race Got Heated
Crypto ETFs continued to dominate the conversation. Key players filed several ETF applications with regulators. Boutique digital asset management behemoth Grayscale took the reins with Solana and Litecoin-focused ETFs.
Similarly, crypto-native asset manager CoinShares revealed its intentions to the SEC to launch an XRP ETF, while Bitwise Asset Management filed for a Dogecoin ETF in Delaware.
The SEC Retracted its SAB 121 Accounting Rule
America’s top regulator, the SEC, reversed course by withdrawing its SAB 121 crypto accounting rule. In exchange for the previous procedure, the SEC replaced SAB 121 with SAB 122.
Consequently, firms can report their crypto holdings according to SAB 122, International Accounting Standard processes, or Financial Accounting Standards Board guidelines.
President Trump Issued a Digital Assets-Focused Executive Order
Following his January 20 inauguration and assumption of office, America’s President Trump issued an executive order to create an operational framework for the digital asset industry. According to a January 23 post on the White House website, the order revoked several previous administration orders.
Furthermore, the order rescinded previous Treasury frameworks, including twin July 7, 2022, announcements.
The executive order also introduced the (new) ‘President’s Working Group on Digital Asset Markets’ and prohibited the establishment of central bank digital currencies (CBDCs).
Crypto-Backed Property Loans Are Now Available
Digital asset adoption continued with the introduction of token-backed home loans by Palo Alto, California-based Fintech firm Propy. From January 29, a Honolulu, Hawaii tokenized condo worth $250,000 offering will be available.
A January 24 press release states that the option is available at 10% in exchange for Bitcoin or Ethereum tokens.
There’s a New American-Based Crypto Exchange
Thanks to the resurrection of crypto.com’s 2023 (planned) platform, new all-American institutional-grade digital asset offerings are available. In a January 21 announcement, crypto.com revealed the return of the ecosystem, offering traders innovative features.
In addition, the capabilities include 480 trading pairs of 300 tokens and efficient infrastructure.The Crypto.com Exchange also offers optimized fees for institutional clients, including 0% maker fees and more.
The CFTC Has a New Digital Assets Chief
Things have increased after acting Chair Caroline D. Pham took the reins. Pham revealed the appointment of Harry Jung as her acting chief of staff and said she would lead the regulator’s interactions with the crypto, DeFi, blockchain, and Web3 spaces.
There are New DeFi-Leveraged Stablecoins on the Avalanche Blockchain
DeFi-focused ecosystem Avant introduced new stablecoins on the Avalanche network. The SAVUSD and AVUSD tokens are (now) available on Avalanche.
Consequently, the AVUSD serves as a means of stability and exchange, while the SAVUSD has yield-focused capabilities.
CME May Launch XRP and Solana Futures in February
According to (reported) CME leaks, Solana and XRP futures offerings may launch next month. In a Twitter/X post, Bloomberg ETF analyst James Seyffart unveiled plans and beta tests of a platform for the dual products.
Moreover, Seyffart indicated that a February 10 debut may be in the works.
Cynthia Lummis is the Senate’s Crypto Sub-Committee Chief
Crypto-friendly Sen. Cynthia Lummis (R-WY) continued to make waves on Capitol Hill with her official confirmation as the chair of the Senate Banking Subcommittee on Digital Assets. Her appointment followed a January 23 vote.
Furthermore, the subcommittee has several focus areas, including industry-focused legislation and executive oversight functions.
MetaMask Warned Against Memecoin FOMO
Prominent DeFi and Web3 wallet MetaMask cautioned the crypto community about the risks of participating in the memecoin space based on mass market paranoia. In a January 20 X/Twitter post, MetaMask revealed the hack of its cofounder Dan Finlay’s Farcaster account.
In addition, the post revealed that the hackers used his account to promote a fake memecoin project and warned against token purchases based on the fear of missing out (FOMO).
Changpeng CZ Zhao is Back
Former Binance CEO Changpeng CZ Zhao returned to the crypto space following his release from prison and a low-key lifestyle. In a January 23 statement, Binance Labs revealed its rebranding as YZi Labs, and Zhao will resume mentoring crypto founders within its ecosystem.
According to a January 23 X/Twitter post, Zhao confirmed President Donald Trump’s Bitcoin reserve plans following Sen. Cynthia Lummis’s (R-WY) ascension as the head of the Senate Banking Subcommittee on Digital Assets.
In related news, Binance Futures unveiled USDC support for the BFUSD stablecoin. Binance Futures also introduced pre-purchase and pre-redemption capabilities for the USDT and USDC stablecoins.
Similarly, the BNB Chain unveiled a no-code solution to launch memecoins from scratch. The offering will help increase Web3 adoption and offers Binance-linked launchpad opportunities and liquidity prospects.
