Crypto innovation is now the new normal, with developments all over the industry. Legislation is coming hard; as in all things, there will be winners and losers.
Time will tell.
The headlines:
- According to the SEC, meme coins aren’t securities;
- Crypto ETFs continued to shine;
- The stablecoin sector might see some drama soon;
- Crypto ATM scams are on the rise;
- Plus, crypto startups now have improved options, thanks to a partnership between AngelList and CoinList (more on that later);
- And much more!
As always, these are your decentralized diaries!
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Bitcoin Recovers to $93k (as of 3/3/25)
Bitcoin’s slide halted with a slight recovery from a $78,248.91 low to a $95,043.43 high. Bitcoin is currently at $93,017.50.
The altcoins are also volatile. Ethereum (ETH) is at $2,458.00, Solana (SOL) at $173.98, Chainlink (LINK) at $16.98, Avalanche at $24.53, Polkadot (DOT) at $5.12, and Uniswap (UNI) at $8.06.
Memecoins Are Not Securities-SEC
America’s top financial regulator finally clarified the status of meme coins. In a February 27 statement, the SEC revealed that it doesn’t recognize memecoins as securities under federal law.
Individuals who purchase the tokens do not need to register with the SEC. However, the regulator indicated it would investigate further individuals or entities that could cloak their digital asset activities.
In related news, the SEC dropped several lawsuits against major crypto players, including Consensys, Unsiwap, Robinhood, and Coinbase. The SEC also ended its investigation against Gemini.
Crypto ETFs Continued to Make Inroads
The crypto community continued expanding with the progress made on the ETF front. On February 25, Grayscale teamed up with 21Shares to file for a Polkadot ETF.
The Nasdaq submitted a Form 19b-4 on the duo’s behalf.
Similarly, the DTCC listed two Solana futures ETFs from Volatility S ares: the Volatility Shares Solana ETF (SOLZ) and the Volatility Shares 2x Solana ETF (SOLT).
Additionally, BlackRock allocated 1%-2% of its iShares Bitcoin Trust (IBIT) ETF to its alternative asset model portfolio. Crypto asset manager Bitwise also registered an Aptos-focused ETF in Delaware.
The move is a precursor to subsequent SEC filings.
Stablecoin Wars Loom on The Horizon
Recent stablecoin-focused bills on Capitol Hill may spark competition (and innovation) in the sector. In a February 25 Bloomberg interview, Circle CEO Jeremy Allaire called for the registration of US-based token issuers.
On the other hand, Tether CEO Paolo Ardoino highlighted the firm’s success and alleged that its competitor’s real intent is to “kill” the firm.
Moreover, in a February 25 Bloomberg interview, Michelle Gill, the General Manager of PayPal’s Small Business and Financial Services Group, revealed plans to integrate its PYUSD token with 20 million SMBs this year.
At its first public hearing, the Senate Banking Committee’s Digital Asset Subcommittee Chair, Cynthia Lummis (R-WY), revealed that stablecoin legislation is its top priority.
Avalanche Foundation Introduced a Visa-Powered Card
Integrations continued to evolve with the Avalanche Foundation, the entity behind the AVAX token, launching the ‘Avalanche Card.’ The offering enables real-time payments and has integrations with fiat-only merchants.
Users have access to half the value of their tokens loaded. Next-day settlements occur via the Avalanche C-Chain. The card is (currently) available in 35 states and Latin America.
Block, Inc. is in Settlement Discussions with the NYDFS
The rainy days may soon be over for the Jack Dorsey-led Block Inc. with indications that a settlement with the NYDFS may be on the horizon. New York’s state regulator wasn’t part of an $80 million settlement with the SEC.
According to its latest Form 10-K filing with the SEC, the firm is already discussing its compliance issues with the NYDFS.
The Pennsylvania Attorney General Issued a Bitcoin ATM Scam Warning
In a February 25 statement, Pennsylvania’s AG Dave Sunday revealed a new Bitcoin ATM scam. Sunday indicated that bad actors now use personally identifiable information (PII) to lure would-be victims into making withdrawals via crypto ATMs.
The crypto-to-fiat transaction could also involve the targets sending a QR code.
In related news, Sen. Dick Durbin (D-IL) introduced the ‘Crypto ATM Fraud Prevention Act.’ The legislation aims to protect consumers against crypto ATM scams.
Consequently, the bill introduces a strict $2,000 daily withdrawal limit for ATMs and $10,00 over two weeks. The bill also includes a $10,000 daily fine (by the Treasury Department) for ATM operators should fraudsters use their machines.
Additionally, the bill requires new customers to communicate directly with ATM operators for transactions over $500.
The FBI Requested the Industry’s Assistance in the Bybit Hack
Following the hack of tokens worth $1.5 billion from Bybit, the FBI asked for the crypto community’s help. On February 26, the Feds identified North Korean state-sponsored hackers as the incident’s perpetrators.
Furthermore, the FBI also identified the attack as ‘TraderTraitor,’ a Trojan-linked attack method that deploys hidden tools in fake crypto trading and access software.
AngelList Partnered with CoinList to Aid Crypto Startup Fundraising Activities
Thanks to a collaboration between AngelList and CoinList, crypto startups now have improved options. The cooperation will enable fundraising for crypto roll-up vehicles (RUVs) and digital asset special purpose vehicles (SPVs).
Users will be able to invest via USDC stablecoins on the AngelList platform. Technical deployments with CoinList are coming soon.
MetaMask is Set for a Big Boost
If its developers have their way, the popular Web3 wallet MetaMask will soon have quite a few new features. According to a February 2 post, users will (soon) be able to hold Bitcoin and Solana tokens.
Additionally, users already have access to a virtual version of the ‘MetaMask Card.’ The physical version will launch in April.
