This is the second meeting in a month between the parties about rule changes required to list the bitcoin ETF.
BlackRock, ARK revise Bitcoin ETF plans along SEC’s cash-only model
BlackRock, Cathie Wood’s ARK and WisdomTree are the latest spot Bitcoin ETF applicants to revise their filings with the U.S. SEC.
Coinbase appeals SEC rulemaking petition denial as promised
Coinbase filed an appeal the same day its petition for a rulemaking on crypto used as a security was denied.
Bitwise launches crypto ETF media campaign with ‘The Most Interesting Man in the World’
The ad spot came as the U.S. Securities and Exchange Commission is looking at multiple spot crypto exchange-traded fund applications from asset managers.
Former Lido holder files class action lawsuit against Lido DAO for crypto losses
The investor claimed that 64% of Lido tokens are controlled by just a few venture capital firms, preventing ordinary investors from having any control over decisions.
Ripple Executive Gives 3 Bold Predictions On Crypto Regulations In 2024
As the crypto market gears up for 2024, the chief legal officer of blockchain payment company Ripple, Stu Alderoty, has released three projections on crypto regulations that could impact investors’ confidence ahead of a year expected to start the new bull cycle by many analysts.
Ripple And SEC To End Legal Tussle In 2024, Alderoty Says
In an X post on Friday, December 15, Ripple shared the predictions of Alderoty on policy and US regulations in 2024. The post included three bold forecasts by the company’s chief legal officer, which generally present a dual outlook on the crypto space. Firstly, Alderoty expects the ongoing court case between Ripple and the US Securities and Exchange Commission (SEC) to come to its conclusion in the new year.
#2024Predictions — It’s that time of year again and we've asked leaders at Ripple to weigh in on what they think 2024 holds.
Our Chief Legal Officer @s_alderoty kicks us off with three bold outlooks on policy and U.S. crypto regulation for 2024. pic.twitter.com/7pcLmk2qPR
— Ripple (@Ripple) December 15, 2023
The blockchain payment firm already scored a “massive” partial victory over the US regulators when Judge Analisa Torress ruled that programmatic sales of XRP do not qualify as a security offering. While many still expect the SEC to still challenge this decision in the Court of Appeals following a final judgment, Alderoty projects the 3-year legal tussle, which he described as a “misguided lawsuit” by the SEC, will finally come to an end.
However, he predicts the commission will continue with its current enforcement action on key players in the crypto space. In addition to Ripple, the SEC has also launched against multiple crypto establishments, including Binance, Coinbase, Gemini, etc.
In his second prediction on US crypto regulations, Alderoty anticipates that the judiciary will continue to curtail the SEC’s excesses in terms of regulation of the crypto space. As a result, the Ripple executive believes the commission will continue to record more losses in court, as seen in similar cases against Ripple and Grayscale.
However, while this may be interpreted as a positive forecast for crypto enthusiasts, it would eventually lead to an intervention by the US Supreme Court which could result in a plethora of possibilities.
Ripple CLO Foresees No Regulatory Framework Yet
Alderoty’s final prediction on US crypto regulations centered on legislative action by the US Congress.
While the Ripple Executive expects the US lawmakers will eventually unanimously agree on the need to create a crypto regulatory framework, He believes there will be difficulty in taking action stemming from disagreements on the specific measures and regulations to be implemented.
In other news, the crypto market is now valued at $1.6 trillion, having experienced 0.5% devaluation in the last 24 hours. XRP, which currently ranks as the fifth-largest cryptocurrency, is trading at $0.6203 with a 0.12% decline over the last hour.
SEC faces accusations of contradiction in Coinbase rulemaking dispute
XRP holder’s lawyer, John Deaton, stated that the SEC’s stance in the Coinbase rulemaking dispute directly opposes the SEC Chairman’s statements during his congressional testimony earlier this year.
Ripple exec predicts crypto landscape shifts in 2024
Stuart Alderoty predicts the possible resolution of Ripple’s SEC lawsuit and U.S. lawmakers agreeing on the need for crypto regulations.
Coinbase Tried to Rein in a Renegade SEC That’s Trying to Rein in a Renegade Industry
The SEC rejected Coinbase’s petition for crypto rulemaking, marking yet another refusal to provide regulatory clarity for an industry that badly wants it.
SEC responds predictably to Coinbase’s 2022 crypto rulemaking petition: No
The existing laws are sufficient, and the agency is already doing what it considers necessary, according to Chair Gensler.
U.S. SEC Denies Coinbase’s Push for Crypto Regulations as ‘Unwarranted’
U.S. crypto exchange Coinbase’s petition to the Securities and Exchange Commission (SEC) to prod it toward a system of tailored rules for digital assets was rejected by the regulator on Friday.
Crypto Firm SafeMoon Files for Chapter 7 Bankruptcy, SFM Plunges 42%
The firm’s executives were arrested last month on multiple charges.
Gensler hints Grayscale ruling forced SEC to take ‘new look’ at Bitcoin ETFs
The SEC chair could be softening his stance on Bitcoin ETFs following the Grayscale court victory, but if so, he hasn’t admitted it outright.
Gensler hints Grayscale ruling forced SEC to take ‘new look’ at Bitcoin ETFs
The SEC chair could be softening his stance on Bitcoin ETFs following the Grayscale court victory, but if so, he hasn’t admitted it outright.
Bitcoin Spot ETF Applicants To Integrate Mandatory Cash Redemption Model
Recent reports have revealed that the United States Securities and Exchange Commission (SEC) has implemented a “new regulatory standard” for all Bitcoin Spot Exchange-Traded Fund (ETF) applicants while awaiting approval from the regulatory body.
Cash Redemption Model For Bitcoin ETF Applicants
Top Bloomberg Analyst James Seyffart took to X (formerly Twitter) to share the latest update by the regulatory watchdog. According to him, every Bitcoin Spot ETF applicant will have to bend their knees to this new model.
The SEC’s latest “Cash Redemption Model” came amid the spot Bitcoin ETF issuers ironing their filings with the US regulator. It seems that the SEC is unwavering in its demand, rather than approve the different model that other issuers have suggested.
The model enables authorized participants to deposit funds in the ETF equal to the net asset value of the creation units to be created. The underlying assets, which in this case is Bitcoin, are subsequently purchased by the fund using this money.
Seyffart’s X post was accompanied by another post from financial lawyer Scott Johnsson, who initially shared the update. The financial lawyer shared a screenshot which revealed more details about the new model by the regulatory body.
Johnsson asserted that Invesco is the most recent company to adopt the cash creation and redemption standard for its ETF. The trust anticipates that “creation and redemption transactions will be made in cash at first.”
However, in the future, the Trust may permit/require creation and redemption transactions to be carried out with the “in-kind” model. This is the initial model that several ETF applicants have suggested.
For the in-kind model, the participant deposits a collection of securities that are weighted and composed in accordance with the ETF’s portfolio. This will allow investors to receive creation units from the fund without having to sell the securities for cash instantly.
Bloomberg Senior ETF analyst, Eric Balchunas has also confirmed Invesco’s adoption of the latest cash model. The analyst asserted that the firm is embracing the initiative as per its just updated S-1 filing.
Blackrock’s In-Kind Redemption Model
Blackrock recently adjusted its Spot Bitcoin Exchange-Traded Fund (ETF) application introducing an in-kind redemption model called “Prepay.” This is to tackle the restrictions that financial firms are facing in order to hold cryptocurrencies.
The adjustment aims to make it easier for Wall Street Banks to participate in the fund. With this modification, authorized participants (APs) would be allowed to issue new fund shares using cash instead of just Bitcoin.
The funds that the APs use for this procedure can subsequently be converted into Bitcoin through an intermediary and kept in storage by the ETF’s custody provider. As a result of this, it provides access to banks that are unable to store cryptocurrencies directly.
So far, Blackrock believes the model will offer greater protection against market manipulation, which has since been the major reason behind the SEC’s rejection of an ETF.
Bitcoin Spot ETF Applicants To Integrate Mandatory Cash Redemption Model
Recent reports have revealed that the United States Securities and Exchange Commission (SEC) has implemented a “new regulatory standard” for all Bitcoin Spot Exchange-Traded Fund (ETF) applicants while awaiting approval from the regulatory body.
Cash Redemption Model For Bitcoin ETF Applicants
Top Bloomberg Analyst James Seyffart took to X (formerly Twitter) to share the latest update by the regulatory watchdog. According to him, every Bitcoin Spot ETF applicant will have to bend their knees to this new model.
The SEC’s latest “Cash Redemption Model” came amid the spot Bitcoin ETF issuers ironing their filings with the US regulator. It seems that the SEC is unwavering in its demand, rather than approve the different model that other issuers have suggested.
The model enables authorized participants to deposit funds in the ETF equal to the net asset value of the creation units to be created. The underlying assets, which in this case is Bitcoin, are subsequently purchased by the fund using this money.
Seyffart’s X post was accompanied by another post from financial lawyer Scott Johnsson, who initially shared the update. The financial lawyer shared a screenshot which revealed more details about the new model by the regulatory body.
Johnsson asserted that Invesco is the most recent company to adopt the cash creation and redemption standard for its ETF. The trust anticipates that “creation and redemption transactions will be made in cash at first.”
However, in the future, the Trust may permit/require creation and redemption transactions to be carried out with the “in-kind” model. This is the initial model that several ETF applicants have suggested.
For the in-kind model, the participant deposits a collection of securities that are weighted and composed in accordance with the ETF’s portfolio. This will allow investors to receive creation units from the fund without having to sell the securities for cash instantly.
Bloomberg Senior ETF analyst, Eric Balchunas has also confirmed Invesco’s adoption of the latest cash model. The analyst asserted that the firm is embracing the initiative as per its just updated S-1 filing.
Blackrock’s In-Kind Redemption Model
Blackrock recently adjusted its Spot Bitcoin Exchange-Traded Fund (ETF) application introducing an in-kind redemption model called “Prepay.” This is to tackle the restrictions that financial firms are facing in order to hold cryptocurrencies.
The adjustment aims to make it easier for Wall Street Banks to participate in the fund. With this modification, authorized participants (APs) would be allowed to issue new fund shares using cash instead of just Bitcoin.
The funds that the APs use for this procedure can subsequently be converted into Bitcoin through an intermediary and kept in storage by the ETF’s custody provider. As a result of this, it provides access to banks that are unable to store cryptocurrencies directly.
So far, Blackrock believes the model will offer greater protection against market manipulation, which has since been the major reason behind the SEC’s rejection of an ETF.
Binance, crypto firms optimistic about UAE amid potential US regulatory shift
Ghaf Capital managing partner Feras Al Sadek argued that the UAE’s “regulation by education” sets it apart from other jurisdictions.
Philippines SEC begins Binance ban countdown
The head of the Philippines SEC clarified that Binance and any other unregistered exchange issued with an advisory has three months before they are banned from the country.
Bitcoin ETF applicants will have to ‘bend the knee’ on cash redemption model
The SEC is pushing Bitcoin ETF issuers down the cash create route for creation and redemptions, but BlackRock has other ideas.
Is A Mega Bull Run Incoming? Whale Transfers Over $780 Million Of Stablecoin To Binance
Data Nerd Data on December 13 shows that over the past 24 hours, the wallet “0xea8” moved 200 million BUSD from Binance, the world’s leading cryptocurrency exchange by client count.
The whale transfer caught the attention of keen crypto users, who also noted that the transfer was soon followed by a deposit of 99.95 million FDUSD, a stablecoin supported by the exchange.
Whale Address Accumulating FUSD Stablecoin On Binance
That the address is shuffling and accumulating large amounts of stablecoins is noteworthy. Data Nerd Data shows that the address has transferred over 781 million FDUSD to Binance in the last four months.
During this period, from around September, the crypto market has been recovering, edging higher on the back of improving fundamental factors.
The accumulation of over $781 million of stablecoin by the wallet controlled by an unknown individual or entity is overly bullish for crypto and Bitcoin prices.
It could suggest that a large institutional investor or group of investors is amassing stablecoins, potentially preparing for a significant market move.
Historically, large movements of stablecoins into centralized exchanges have often preceded major bull runs.
Stablecoins are vital for crypto, ensuring there is enough liquidity. Since most are pegged to the USD and can be backed by fiat, these tokens, mostly minted on Ethereum or Tron, are often used as a gateway to crypto. Therefore, their accumulation can signal increased institutional interest and potential buying pressure.
Is A Mega Bitcoin And Crypto Rally In The Making?
That the wallet address is fortifying its FDUSD base reinforces the notion that institutional investors, ahead of the possible approval of the first batch of Bitcoin ETFs in the United States, could be increasingly warming up and preparing for leading coins like Bitcoin and Ethereum to extend gains in 2024.
When writing on December 13, Bitcoin and top altcoin prices are relatively stable. To illustrate, Bitcoin is trending higher, stable above the $41,000 level after pulling back from 2023 highs of around $44,000. Crypto participants are bullish and expect Bitcoin prices to float even higher in 2024 before halving.
Binance will stop supporting BUSD in 2024. The exchange has also delisted USDC. Accordingly, USDT and FUSD are popular on Binance. However, the exchange continues to be on the Securities and Exchange Commission’s (SEC) crosshairs.
In late November, the Department of Justice (DOJ) issued a $4.3 billion penalty on Binance as settlement with the SEC, Commodity Futures Trading Commission (CFTC), and other aggrieved agencies in the United States. The deal also saw Changpeng Zhao, the founder of Binance, step down from the CEO role.
