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:
SEC Chair Gary Gensler To Resign On January 20th, 2025
Securities and Exchange Commission (SEC) Chair Gary Gensler has announced that he will wait to resign from his post until President-elect Donald Trump’s inauguration.
Gensler’s term at the SEC runs to 2026, although leaders at federal agencies typically announce their resignations when a new administration comes into power. Gensler took over the SEC in 2021, and under his leadership, the commission took an ambitious but controversial approach to several regulatory issues, including cryptocurrencies.
SEC Loses On Controversial ‘Dealer’ Rule
A federal court has struck down the SEC’s controversial dealer rule, significantly reducing the agency’s regulatory efforts in the crypto sector. The US District Court for the Northern District of Texas ruled that the agency exceeded its statutory authority, invalidating the rule as a violation of the Exchange Act.
The decision came after the Blockchain Association and the Crypto Freedom Alliance of Texas (CFAT) challenged the rule in court, arguing it unlawfully expanded the SEC’s jurisdiction and created uncertainty for digital asset innovators. The court agreed, describing the SEC’s definition of “dealer” as “untethered from the text, history, and structure” of the law.
Charles Schwab To Offer Spot Crypto Trading Upon Regulatory Changes
Charles Schwab is gearing up to enter the spot crypto currency trading market once US regulations become more favorable, the firm’s incoming CEO, Rick Wurster confirmed.
While Schwab has yet to dive into direct crypto trading, the company has long maintained a foothold in the industry, offering crypto-linked ETFs and cryptocurrency futures. However, Wurster acknowledged the intense competition in the financial services industry, particularly as newer platforms like Robinhood and Webull continue to attract retail investors with user-friendly crypto offerings.
Former CFTC Chair Chris Giancarlo Eyed For ‘Crypto Czar’ Role
According to a FOX Business report, Chris Giancarlo, a former chairman of the Commodity Futures Trading Commission (CFTC), has emerged as a leading contender for a potential new Trump administration role.
Giancarlo served as CFTC chair from 2017 to 2019 during Donald Trump’s first term, during which he oversaw the introduction of Bitcoin futures. He currently advises blockchain advocacy groups and leads the Digital Dollar Project, which explores digital currencies’ potential.
Cantor Fitzgerald Agreed To Acquire 5% Stake In Tether For $600 Million
Cantor Fitzgerald, led by CEO Howard Lutnick, is venturing into crypto-backed lending, a sector that has faced challenges in gaining widespread acceptance due to issues of trust, regulation, and market volatility.
As reported by Bloomberg, the firm plans to launch a Bitcoin-backed lending program with the support of Tether. The program will start with an initial investment of $2 billion and have the potential to expand into tens of billions.
This move comes after Cantor Fitzgerald acquired a 5% stake in Tether, valued at $600 million, positioning it as a significant partner in the stablecoin market dominated by USDT.
Hong Kong’s Largest Digital Bank Launches Retail Crypto Trading
Hong Kong-based virtual bank ZA Bank has introduced a new service that allows retail users to buy and sell Bitcoin and Ethereum directly with fiat currency.
According to a statement released on November 25th, 2024, users must have an active account with ZA Bank and undergo a risk assessment before accessing the new crypto trading feature through the bank’s app. The service currently supports only Bitcoin and Ethereum, with no other cryptocurrencies available.
Officials from ZA Bank stated that the collaboration with cryptocurrency exchange HashKey aimed to meet regulatory standards and bridge the gap between traditional banking and cryptocurrency markets. They noted that the increasing popularity of cryptocurrency offers investors more diverse options for asset allocation.
WisdomTree Files For XRP ETF
WisdomTree has registered in the state of Delaware for a new exchange-traded fund (ETF) on XRP.
WisdomTree follows Bitwise and Canary Capital, which have also sought SEC approval for spot XRP ETFs.
None of these applications have gained SEC approval yet, but Ripple’s partial legal victory in July 2023 has injected optimism into the market. A federal judge ruled that XRP sales to retail investors were not securities, challenging the SEC’s long-standing narrative. The regulator, however, has not conceded defeat. In October 2024, it filed an official appeal, pushing back any potential resolutions to 2025.
Pump.Fun Halts Livestreams Indefinitely After Community Backlash
Pump.fun, a Solana-based memecoin platform, has suspended its livestream feature indefinitely following widespread community backlash over harmful content broadcasts.
In a community notice, the platform stated that the livestream feature would remain paused while it implements stronger safeguards and infrastructure to ensure its proper use.
Users highlighted cases such as threats of self-harm, violence, and explicit acts being broadcast live. Notably, some users even issued threats of school violence tied to coin price movements.
Morocco To Legalize Crypto After 2017 Ban
According to a Reuters report, Morocco is set to legalize crypto assets after a ban in 2017. The legislation is intended to provide a legal framework for crypto transactions and usage in the country.
Abdellatif Jouahri, the governor of Morocco’s central bank, Bank Al-Maghrib (BAM), said the bank is preparing a draft law to regulate crypto assets, which is now in the adoption process.
BAM is also exploring the introduction of a central bank digital currency (CBDC). Jouahri said that many countries are assessing the role of CBDCs in achieving public policy objectives, particularly in promoting financial inclusion.
Trump Admin Eyes CFTC To Lead Digital Asset Regulation
According to a Fox Business report, Donald Trump’s administration wants to increase the Commodity Futures Trading Commission’s (CFTC) regulatory reach by granting the agency oversight of the growing digital asset market.
The proposal would specifically target digital assets such as Bitcoin and Ethereum, which are considered commodities under current law. If the plan moves forward, the CFTC will gain the authority to regulate spot markets and exchanges.
Currently, the CFTC oversees US derivatives markets, including futures and options on commodities like oil and gold.
Us Court Rules That Sanctions Against Tornado Cash Smart Contracts Are Unlawful
The US Fifth Circuit Court ruled that the Treasury overstepped by sanctioning Tornado Cash’s immutable smart contracts, stating the autonomous software cannot be classified as property.
The Fifth Circuit held that smart contracts that are immutable—meaning no entity can modify or control them—cannot be classified as “property” subject to sanctions under existing law.
According to industry stalwarts, the decision reverses a lower court ruling and marks a significant win for privacy advocates and blockchain developers seeking clarity to build similar products.
Brazil’s Congress Introduces Bill To Create Strategic Bitcoin Reserve
Brazilian legislators in the Chamber of Deputies have proposed allocating 5% of the nation’s $370 billion treasury to a Bitcoin strategic reserve.
The proposed Bitcoin bill would limit Brazil’s reserves to approximately $18.5 billion worth of the world’s most valuable cryptocurrency, currently valued at $1.83 trillion.
Brazil’s Chamber of Deputies, the lower house of its National Congress, must pass the bill before it moves to the upper house’s Federal Senate. If lawmakers in the Federal Senate back the proposal, it will be sent to Brazil’s President for approval to become law.
Strategic Bitcoin reserves have gained traction among various governments and jurisdictions recently, touted as an economic safeguard and political rallying point.
‘Hawk Tuah Girl’ To Launch $HAWK Memecoin On December 4th
Internet sensation and queen of the meme “Hawk Tuah Girl” from the viral meme from June 2024, has announced the launch of the memecoin $HAWK. The memecoin is set to go live on December 4th, 2024, at 5 PM EST.
The launch is in partnership with overHere, a pioneering Web3 launchpad and platform poised to redefine memecoins and usher in a new class of consumer #crypto.
Vancouver Mayor Proposes The Creation Of A Strategic Bitcoin Reserve
Ken Sim, Vancouver’s mayor since 2022, has announced plans to integrate Bitcoin into the city’s financial strategy.
During a November 26th council meeting, Sim proposed a motion titled “Preserving the city’s purchasing power through diversification of financial resources: Becoming a Bitcoin-friendly city.” The motion, set for an introduction on December 11th, suggests adding Bitcoin to Vancouver’s balance sheet as a reserve asset.
The motion aims to diversify the city’s investments while exploring innovative financial strategies. This move aligns with similar discussions in U.S. local governments, where lawmakers consider Bitcoin reserves post-2024 elections.
Trump Team Eyes Paul Atkins To Succeed SEC Chair Gary Gensler
According to a Bloomberg report, President-elect Donald Trump’s transition team has interviewed Paul Atkins as a candidate to lead the SEC.
Atkins, who served under President George W. Bush, is among several contenders for the role. Trump is expected to announce his decision in the coming days.
The new SEC leadership is expected to maintain a focus on core priorities, including fraud prevention, insider trading enforcement, Ponzi scheme elimination, and corporate disclosure oversight.
Final Thoughts
So that’s it for this week!
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Wishing you an amazing week ahead and a joyful Thanksgiving!
