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:
USDC Issuer Circle Partners With Sony To Expand Stablecoin Adoption Via Soneium
Circle has teamed up with Sony Block Solutions Labs to integrate the USDC stablecoin into Sony’s new layer-2 blockchain, Soneium, which was recently launched in August 2024. The collaboration aims to establish USDC as a primary token for value exchange within the Web3 ecosystem.
Soneium is a public Ethereum layer-2 blockchain developed by Sony in collaboration with Startale Labs. Circle’s CEO, Jeremy Allaire, emphasized that the partnership aligns with Circle’s mission to accelerate stablecoin adoption and empower Web3 creators.
Jun Watanabe, chairman of Sony Block Solutions Labs, also stated that the partnership is crucial for building a more interconnected digital ecosystem.
Gunshots Were Fired At Donald Trump’s Golf Club But Is Currently Safe
Just two months after an attempted assassination of former President Donald Trump in July during a rally in Pennsylvania, another apparent attempt on the Republican presidential nominee’s life was foiled by authorities on Sunday, September 15th, at Trump International Golf Club in West Palm Beach, Florida.
Trump was unharmed, and a suspect who fled the scene was arrested.
SEC Increases Scrutiny On Binance’s Token Listing And Trading Process in Proposed Amended Complaint
The US Securities and Exchange Commission (SEC) has expanded its lawsuit against Binance, now classifying additional tokens, including Axie Infinity (AXS), Filecoin (FIL), and Cosmos (ATOM), as unregistered securities.
This development is part of the SEC’s ongoing efforts to regulate the crypto industry and enforce compliance with securities laws. In the updated legal filings, the agency accuses Binance and its US affiliate, BAM Trading, of facilitating the trading of these tokens without proper registration and promoting them as investment opportunities.
According to the SEC, Binance violated the law by selling BNB to employees after their Initial Coin Offering (ICO) without registering it, thus breaching Section 5 of the Securities Act. The update also addresses previous issues related to Binance’s unregistered sales of a product called “simple earn,” violating the same law again.
The SEC also alleges that Binance engaged in similar practices with ten other cryptocurrencies, which were also offered and sold as securities. These cryptocurrencies include SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI.
Donald Trump-Backed World Liberty Financial Debuts Plans To Sell WLFI Tokens
Donald Trump officially launched his cryptocurrency project, World Liberty Financial, highlighting the need for innovation in the financial sector and expressing enthusiasm for the potential of crypto.
The project will include a non-transferable governance token called WLFI aimed at accredited investors, focusing on DeFi and user rewards.
Trump’s recent pivot toward cryptocurrency includes accepting crypto donations for his campaign, advocating for the US to become a leader in the crypto space, and calling for regulatory safeguards.
Concerns have been raised about the potential political implications of the Trump family’s involvement in crypto, which could complicate bipartisan efforts to establish a regulatory framework for the industry.
DBS Bank To Launch Bitcoin And Ethereum Options Trading
Singapore’s largest bank, DBS Bank, recently announced the launch of its over-the-counter crypto options trading and structured notes, becoming the first Asian-headquartered bank to offer financial products tied to Bitcoin and Ethereum prices.
These products will be available in Q4 2024 and are tailored for institutional investors and accredited wealth clients looking to expand their exposure to the digital asset class while managing risk.
It is worth noting that DBS is no stranger to crypto. In February 2023, the bank applied for a license to enter Hong Kong’s crypto market, aiming to offer its digital asset services to Hong Kong customers and expand its reach in the fast-growing crypto landscape.
MicroStrategy Offers $700M Convertible Notes To Buy More Bitcoin
MicroStrategy (MSTR) announced it will offer $700 million of convertible senior notes due in 2028. The sale will occur under a private offering for persons categorized as institutional buyers under US securities law. The firm provides an over-allotment option of $105 million in additional notes to initial purchasers of the offering.
According to the Bitcoin development company, the notes will be unsecured senior obligations with semi-annual payable interest. The firm disclosed that it will use the net proceeds of the sale to redeem $500 million of its 6.125% Senior Secured Notes due in 2028. From there, it plans to utilize the remaining proceeds to acquire more Bitcoin while allotting the rest “for general corporate purposes.”
The latest move follows last week’s whale Bitcoin purchase. Last Friday, it disclosed 18,300 Bitcoins acquired between August and September via an official notice on its website and a social media post from its chairman, Michael Saylor.
Top House Republicans Demand Answers From SEC On Regulatory Approach To Crypto Airdrops
House Republicans Tom Emmer and Patrick McHenry are pressing SEC Chair Gary Gensler for clear answers on how the Securities and Exchange Commission (SEC) classifies cryptocurrency airdrops.
In a letter sent on September 17th, the lawmakers expressed concerns about the SEC’s recent legal actions, where airdrops were labeled as “unregistered securities.” They urged Gensler to respond by September 30th, outlining how crypto airdrops fit into the agency’s regulatory framework.
The lawmakers are particularly concerned that the agency’s stance could hinder blockchain innovation and the growth of decentralized technologies. They argue that classifying airdrops as securities could prevent the technology from reaching its full potential.
Bhutan Overtakes El Salvador In Bitcoin Ownership, Holding Over Two Times More
The Kingdom of Bhutan has been discovered to be a significant Bitcoin holder, surpassing even El Salvador in ownership. According to Arkham Intelligence, the Southeast Asian country “is the fourth largest government with Bitcoin holdings” on their platform, having over $750M worth of Bitcoin.
Bhutan’s Bitcoin stash of 13,011 BTC, despite being under the radar for so long, is a product of mining operations done by Druk Holding and Investments (DHI), the commercial arm of the Bhutanese government. In addition to Bitcoin, Arkham disclosed three other assets in Bhutan’s crypto portfolio, including small amounts of ETH, BNB, and MATIC.
The Himalayan country’s formerly covert Bitcoin mining operations came to the limelight early last year after Forbes published an article about DHI borrowing millions of dollars from now-bankrupt crypto lending firms Celsius and BlockFi.
Fintech Giant Revolut To Launch A Crypto Stablecoin
Revolut plans to expand its crypto offerings by issuing its own stablecoin while adopting a compliance-first approach to ensure safety for the crypto community.
It’s worth noting that the company recently obtained a UK banking license and aims to position itself alongside other entrants in the #stablecoin sector, such as PayPal, Ripple, and BitGo.
The stablecoin market is currently dominated by Tether’s USDT, with increasing competition from new players as the sector becomes more lucrative and regulatory guidance emerges from Europe.
Stablecoin, pegged to real-world assets, generates profits through interest on government-issued debt, with Tether reporting significant earnings in the year’s first half.
The Federal Reserve Cuts Interest Rates By 50 Basis Points For The First Time In Four Years
The US Federal Reserve cut its key lending rate by half a percentage point Wednesday, its first reduction since the pandemic.
The Fed announced in a statement that policymakers voted 11-to-1 to lower the US central bank’s benchmark lending rate to between 4.75% and 5.00%. They also penciled in an additional half-point of cuts before the end of this year and an added percentage point of cuts in 2025.
The Fed’s decision will affect the rates at which commercial banks lend to consumers and businesses, bringing down the cost of borrowing on everything from mortgages to credit cards less than two months before the US presidential election.
Donald Trump Buys Fans Burgers And Pays With Bitcoin At New York Bar
Donald Trump made another appeal to the crypto community by treating supporters to burgers at PubKey, a Bitcoin-themed bar near New York University in Greenwich Village.
The Republican candidate paid for the meal using Bitcoin, signaling his continued efforts to connect with digital asset holders before the 2024 US presidential election.
PubKey posted on social media that the moment was “one of the most historic transactions in #bitcoin history.”
Moreover, Trump has recently increased his support for crypto and has been promoting a new decentralized finance (DeFi) project called World Liberty Financial.
Final Thoughts
So that’s it for this week!
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Have a fantastic week ahead!
