Stay in the loop with our weekly crypto digest as we get you up to speed on the hottest trends and events in the crypto space.
Here’s what happened in crypto this week:
Brian Armstrong Says Coinbase ‘Needs To Rethink Listing Process,’ Urges Regulators To Adapt To Rapid Crypto Growth
Coinbase CEO Brian Armstrong shared that the company needs to “rethink” how it lists and evaluates various coins as a host of new tokens are created each week.
Notably, the exchange has “a rigorous asset evaluation process” conducted by the exchange’s Digital Asset Listing Group (DALG) to ensure that crypto assets meet all the necessary requirements, including legal ones.
As of now, the exchange supports a total of 271 assets and hundreds of trading pairs. Coinbase’s listings used to cause significant price spikes, and this effect can still be observed, albeit to a smaller extent.
Brazil Bans Worldcoin From Offering Crypto For Retina Data
The Brazilian National Data Protection Agency (ANPD) ordered Tools for Humanity (TFH), the company behind Worldcoin, to stop providing Brazilian users with cryptocurrency or other financial compensation to collect iris biometric data.
The ANPD pointed out that using crypto as a reward could affect users’ voluntary consent for sensitive biometric data and could induce people in vulnerable situations. Brazilian law stipulates that consent to process sensitive personal data must be free, informed, and clear. The ANPD also expressed concerns about the risks of collecting irreversible iris data.
China’s DeepSeek Triggers Global Tech And Crypto Sell-off
DeepSeek, a Chinese AI startup that’s only a year old, has generated both admiration and concern in Silicon Valley by showcasing groundbreaking AI models that deliver performance on par with the top chatbots but at what seems to be a fraction of the cost.
Global tech stocks and the crypto market plummeted as excitement over DeepSeek’s innovation grew, and investors started to consider the potential impact on its US-based competitors and their hardware suppliers.
DeepSeek was established in 2023 by Liang Wenfeng, the head of the AI-powered quantitative hedge fund High-Flyer. The company creates open-source AI models, allowing the broader developer community to review and enhance the software. Its mobile app quickly shot to the top of the iPhone download charts in the US following its launch in early January.
Crypto Exchange Kucoin Pleads Guilty To Operating Unlicensed Business In The US, Paying Nearly $300 Million In Fines
Cryptocurrency exchange KuCoin has pleaded guilty to operating an unlicensed money-transmitting business in the US.
According to the US Attorney’s Office – Southern District of New York, KuCoin flouted US anti-money laundering laws by failing to implement adequate AML and KYC programs designed to prevent KuCoin from being used for money laundering and terrorist financing, failing to report suspicious transactions, and failing to register with the US Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
The exchange agreed to pay monetary penalties totaling more than $297 million. KuCoin further agreed that the company would exit the US market for at least the next two years and that two of KuCoin’s founders, Chun Gan, a/k/a “Michael,” and Ke Tang, a/k/a “Eric,” who were indicted in March 2024, will no longer have any role in KuCoin’s management or operations.
Ripple Announces Money Transmitter Licenses In Texas And New York
Ripple announced the acquisition of two money transmitter licenses (MTLs) in New York and Texas for its cross-border payment solutions.
With this latest license acquisition, the company now holds over 55 US MTLs across its payments, custody, and stablecoin businesses. It also has a BitLicense in New York and another NY Limited Purpose Trust Company Charter.
Outside the US, the blockchain infrastructure provider holds a Major Payment Institution License in Singapore, Virtual Asset Service Provider registrations in Ireland and the Cayman Islands, and an in-principal license from Dubai’s DFSA.
Under the US MTLs, Ripple can offer its customers cross-border payment solutions and manage end-to-end transactions on their behalf.
Senate Confirms Scott Bessent As Treasury Secretary
The Senate has confirmed Scott Bessent as Treasury Secretary, appointing the billionaire hedge fund manager to the administration’s top financial position as President Donald Trump pushes forward with his economic agenda.
As US Treasury Secretary, Bessent will have sway over fiscal policy, financial regulations, international sanctions, and overseas investments.
Ondo Finance To Bring Tokenized US Treasurys To Ripple’s XRP Ledger
Ondo Finance, a platform specializing in tokenizing real-world assets, has announced plans to launch its $185 million U.S. Treasury-backed token on Ripple’s XRP Ledger (XRPL). The move aims to enhance institutional access to tokenized assets through the enterprise-focused blockchain.
The Ondo Short-Term US Government Treasuries (OUSG) token, backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), enables qualified investors to mint and redeem tokens almost instantly using Ripple’s RLUSD stablecoin. The deployment on XRPL is expected to go live within six months.
Coinbase Gains Approval To Expand Service Offering In Argentina
Coinbase received approval from Argentina’s National Securities Commission (CNV), granting it a Virtual Asset Service Provider (VASP) registration.
This registration allows Coinbase to operate within the country’s legal framework for virtual assets.
The company has also stated that it will continue to focus on providing a secure platform for users to trade and store crypto assets.
Bitwise Files To Launch Dogecoin ETF
Asset manager and crypto exchange-traded fund (ETF) issuer Bitwise has officially filed an S-1 form with the US Securities and Exchange Commission (SEC) for a Dogecoin ETF.
Earlier, on January 22nd, Bitwise had filed a registration in Delaware, signaling its plans to introduce the product.
Bloomberg ETF analyst James Seyffart noted on X that while the filing had been anticipated, this step makes the proposal official with the SEC.
SEC Former Chair Gary Gensler Is Back To Being An MIT Professor
After helming the chair of the US Securities and Exchange Commission for four years under President Joe Biden, the controversial former investment banker turned government official Gary Gensler has returned to his academic role as a professor at the distinguished Massachusetts Institute of Technology (MIT).
Gensler will co-direct the FinTech AI @CSAIL initiative from MIT’s Computer Science and Artificial Intelligence Laboratory alongside Professor Andrew W. Lo, where member companies will work with MIT researchers to explore new AI technologies in finance.
Federal Reserve Pauses Interest Rate Hikes, Remains At 4.25% – 4.50%
The Federal Reserve halted its interest rate cuts and offered no indication that it plans to reduce rates again soon, citing uncertainty driven by inflation and President Donald Trump’s economic policies.
The decision to hold rates steady at a range of 4.25%-4.5% could mark that the Fed may be preparing for a more extended period of stability while it monitors inflation and looks for more clarity on Trump’s trade and immigration policies.
Notably, investors widely anticipated the Fed would hold rates firm, pricing in 99.5% odds of a pause ahead of the announcement, according to CME Group’s FedWatch Tool, which tracks derivatives trades on monetary policy.
Final Thoughts
So that’s it for this week!
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Have a fantastic week ahead!
