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:
MicroStrategy Joins Nasdaq 100
MicroStrategy will join the Nasdaq 100 index, potentially increasing demand for its stock ($MSTR), which has seen a sixfold increase this year.
The inclusion means that major ETFs, like the Invesco QQQ Trust, will be automatic buyers of MicroStrategy shares, further boosting its stock value.
The company has transitioned from selling enterprise software to focusing on Bitcoin investments, holding 423,650 Bitcoins and aiming for S&P 500 inclusion by 2025.
The company’s market capitalization stands at roughly $90 billion despite generating less than $500 million in revenue recently, with its trading behavior mirroring Bitcoin’s volatility.
Justin Sun-Linked BiT Global Sues Coinbase Over Delisting Of WBTC
Justin Sun-linked BiT Global has filed a lawsuit against cryptocurrency exchange platform Coinbase regarding its decision to delist Wrapped Bitcoin (wBTC) and launch a similar product.
This announcement follows Coinbase’s plan to remove wBTC from its platform on December 19th, 2024, as part of its ongoing review of listing standards.
The lawsuit alleges that Coinbase’s anti-competitive actions violate state and federal laws.
This comes in light of Coinbase’s introduction of its tokenized Bitcoin product, cbBTC, which has a market capitalization exceeding $2 billion.
Coinbase Says It Nixed WBTC Because Justin Sun Posed ‘Unacceptable Risk’
Coinbase delisted the wrapped Bitcoin (wBTC) token due to concerns over its potential ties to Justin Sun, the founder of the Tron blockchain, citing an “unacceptable risk” to its platform. In a court filing, Coinbase revealed that it had asked BiT Global, the issuer of wBTC, for clarification on Sun’s involvement after his partnership with BiT Global was announced in August. However, BiT Global “refused” to provide the requested information, prompting the exchange to conduct further due diligence.
The controversy stems from a lawsuit filed by BiT Global against Coinbase, accusing the exchange of improperly favoring its competing token, cbBTC. While BiT Global’s involvement with Sun remains unclear, Coinbase emphasized that the mere appearance of a connection to the controversial figure was enough to justify its decision. Coinbase also stressed that there is no legal requirement to list an asset associated with someone like Sun, who has a history of alleged fraud and market manipulation.
Ripple Announces Launch Of RLUSD Stablecoin
Ripple recently announced its new stablecoin, Ripple USD (RLUSD), and started trading globally on Tuesday, December 17th.
RLUSD is a stablecoin backed by the US dollar and recently received approval from the New York Department of Financial Services (NYDFS).
Ripple has also formed an advisory board for RLUSD, including notable experts such as the former Reserve Bank of India governor.
UK FCA Plans To Ban Public Crypto Offers For Unregulated Firms
The UK Financial Conduct Authority (FCA) has published a discussion paper outlining various proposals and seeking public input on cryptocurrency regulations in the country. One key proposal suggests prohibiting public crypto offerings from unregulated entities.
The FCA explains that the proposals presented in the paper titled “DP24/4” are designed to reduce the risks linked to digital assets while encouraging growth and innovation in the sector. The paper is aimed at investors, crypto businesses, industry groups, and other stakeholders in the crypto space.
This move is part of a broader global trend of regulators tightening oversight on unregulated crypto offerings, which have been linked to scams, investor losses, and market manipulation.
SEC Commissioner Caroline Crenshaw’s Renomination Off The Table After Crypto Pushback
SEC Commissioner Caroline Crenshaw will not be renominated to her role, as reported by Fox’s Eleanor Terret.
The journalist revealed that a planned markup vote on Crenshaw was recently canceled. This follows significant opposition from the crypto community, criticizing her stance against US crypto and innovation.
After the cancellation of Crenshaw’s nomination, the crypto advocacy group Stand With Crypto claimed responsibility for the outcome, stating that they successfully pressured the Senate Banking Committee to reject the Commissioner.
Federal Reserve Cuts Interest Rates By 25 Basis Points
The Federal Reserve cut interest rates by a quarter point on Wednesday, bringing the target range to 4.25% to 4.5%. Moreover, the central bank indicated in a policy statement that it forecasts just two interest rate cuts in 2025, not the previously projected four.
Federal Reserve Chair Jerome Powell added that the best solution is for the Federal Reserve to continue working to get inflation back down to its target so wages can catch up, ultimately restoring consumers’ good feelings about the economy.
Fed Chair Powell also said the central bank is not looking to add Bitcoin to its balance sheet.
“We’re not allowed to own Bitcoin. The Federal Reserve Act says what we can own, and we’re not looking for a law change. That’s the kind of thing of thing for Congress to consider, but we are not looking for a law change at the Fed,” Powell said.
Final Thoughts
So that’s it for this week!
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Have a fantastic week ahead!
