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:
Bitnomial Sues SEC Over XRP Futures, Challenges Agency’s Continued Claim That XRP Is A Security
The SEC maintains that XRP is a security despite a recent court ruling favoring Ripple, which stated that XRP is not a security when traded on exchanges.
Bitnomial has filed a lawsuit against the commission, challenging its claim that XRP Futures are “security futures” and arguing for clarity in regulating crypto derivatives.
The lawsuit seeks a court declaration that XRP Futures are not securities futures and aims to prevent the SEC from asserting authority over Bitnomial’s offering.
The legal battle over XRP’s classification reflects broader tensions between the SEC and the CFTC regarding jurisdiction over digital assets, potentially impacting the future regulation of cryptocurrencies.
Ripple To ‘Cross-Appeal’ In SEC Case
Ripple Labs plans to file a cross-appeal in its case against the SEC to preserve its legal arguments as the agency appeals a prior ruling.
The SEC’s appeal follows a July 2023 decision by District Judge Analisa Torres, which stated that Ripple’s XRP sales did not violate federal securities laws.
Ripple’s Chief Legal Officer emphasized the importance of ensuring all arguments are considered, particularly regarding the definition of investment contracts.
Both parties are expected to submit more detailed arguments in the coming weeks, while Ripple advocates for a legislative solution to provide clarity for the cryptocurrency industry.
Ripple Co-founder Chris Larsen Donates $1 Million In XRP To Kamala Harris
Chris Larsen, co-founder of Ripple, has donated $1 million in XRP tokens to Future Forward PAC, a political action committee supporting Vice President Kamala Harris’s presidential campaign.
According to Future Forward PAC, Larsen donated around 1.7 million XRP tokens on August 14th in a “non-contribution account.” This is the first crypto donation Kamala has received since starting her campaign. The committee accepted the donation through Coinbase Commerce and automatically converted it to stablecoin to keep it stable amid market fluctuations.
Larsen’s donation is part of Ripple’s goal to support pro-crypto candidates in the ongoing election. The company has given millions to different political causes over the years.
Trump-supported World Liberty Financial Stars Public Token Sale
World Liberty Financial, a DeFi protocol supported by Donald Trump and his family, started launching a public token sale on October 15th, three weeks before the presidential election.
The project aims to raise $300 million, valued at $1.5 billion. Its governance token, WLFI, will allow users to vote on protocol initiatives.
Key members of the Trump family, including Donald Trump as “Chief Crypto Advocate,” are involved in promoting the project. At the same time, the team includes individuals with prior experience in the DeFi space.
The protocol, which focuses on providing liquidity for various digital assets, is set to launch on the Aave v3 platform on Ethereum.
Avalanche Shooter Game ‘Off The Grid’ Becomes Top Free Title On Epic Games Store
Battle royale shooter game “Off the Grid” has become the top-grossing free-to-play title on the Epic Games Store since its release, competing with industry behemoths such as Fortnite and Rocket League.
The game, by Gunzilla Games and on the Avalanche blockchain, has been very popular among gamers and crypto communities since its early access release this past week.
Despite its early success, the game is still in its infancy. The early access version is currently available on PlayStation 5, Xbox Series X/S, and PC and offers minimal content, offering only one map and mode. The game’s in-game economy is denominated by GUN tokens, and the full implementation of blockchain features, such as NFT minting for rare weapons and items, has yet to be realized.
Grayscale Eyes 35 Altcoins For New Investment Products
Leading asset manager Grayscale has announced that it is reviewing 35 major altcoins for potential inclusion in future investment products. The altcoins are organized into five categories: Currencies, Smart Contract Platforms, Financials, Consumer and Culture, and Utilities and Services.
Accordingly, the 35 altcoins evaluated were listed as follows:
Kaspa (KAS), Aptos (APT), Arbitrum (ARB), Celestia (TIA), Celo (CELO), Core (CORE), Cosmos (ATOM), Internet Computer (ICP), Mantle (MNT), Metis (METIS), Neon (NEON), Optimism (OP), Polygon (POL ex. MATIC), Sei (SEI), Starknet (STRK), Toncoin (TON), TRON (TRX), Aerodrome (AERO), Ethena (ENA), Injective Protocol (INJ), Jupiter (JUP), Mantra (OM), Ondo Finance (ONDO), Pendle (PENDLE), THORChain (RUNE), Dogecoin (DOGE), Immutable (IMX), Akash (AKT), Arweave (AR), Artificial Superintelligence Alliance (FET), Helium (HNT), Pyth (PYTH), UMA Project (UMA), VeChain (VET) and Worldcoin (WLD).”
Grayscale also noted that this list could change each quarter depending on the re-evaluation of these projects.
Grayscale Plans To Convert Fund With BTC, ETH, SOL, XRP, And AVAX Into An ETF
Grayscale Investments has applied to convert its Digital Large Cap Fund into an ETF product. The Grayscale Large Cap Fund comprises Bitcoin, Ethereum, Solana, XRP, and Avalanche as its components.
The Digital Large Cap Fund manages about $524 million, with roughly 75% in Bitcoin, 19% in Ethereum, and smaller amounts in Solana, XRP, and AVAX.
Grayscale’s latest filing follows its previous conversions of the Grayscale Bitcoin Trust and Ethereum Trust into spot ETFs earlier this year. The firm has also sent its 19b-4 form to the US Securities and Exchange Commission (SEC), requesting permission to convert the fund.
Kamala Harris Backs Crypto Regulatory Framework In Pitch To Black Men
Vice President Kamala Harris has unveiled a plan to support Black men through wealth creation and economic advancement, with cryptocurrency playing a significant role.
Her “Opportunity Agenda for Black Men” includes ensuring that those holding digital assets “benefit from financial innovation.” Noting over 20% of Black Americans own crypto and digital assets, Harris promised regulatory protections to help safeguard their participation in the evolving financial landscape.
Federal Reserve Official Neel Kashkari Says Bitcoin Remains Worthless After 12 Years
Federal Reserve Bank of Minneapolis President Neel Kashkari recently stated that Bitcoin remains “worthless” after 12 years. He emphasized that, despite the cryptocurrency’s longevity, it has failed to establish itself as a viable asset or currency.
Kahkari also stated that inflation continues to decrease while the US labor market remains strong. He emphasized that the Federal Reserve’s decisions will remain data-driven and stressed that it’s not worth pushing joblessness higher to curb inflation.
Despite Kashkari’s statements, Bitcoin has performed exceptionally well over the years. The asset rose 9% in 2012, 59% in 2016, and 171% in 2020. This year, Bitcoin has outperformed major asset classes so far.
UAE’s Central Bank Approves The Launch Of A AED Stablecoin
The Central Bank of the UAE (CBUAE) has approved issuing a license for the AED Stablecoin under its regulatory framework for payment token services. This makes the AED Stablecoin the first approved institution in the UAE to issue a stablecoin pegged to the dirham.
If final approval is granted, the AE Coin issued by AED Stablecoin will be available as a local trading pair for cryptocurrency transactions, allowing merchants to accept it for payment of goods and services.
The CBUAE’s licensing framework requires stablecoin issuers to fully hold their assets in cash in a separate custodial account at a UAE bank or to hold at least 50% of their reserve assets in cash, with the remaining portion allowed to be invested in UAE government bonds and CBUAE currency notes.
Tesla Moves $760 Million In Bitcoin
Tesla completed its first major crypto transactions in over two years, transferring $760 million worth of Bitcoin. The electric vehicle maker’s move has sparked speculation within the industry, marking a significant re-engagement with the cryptocurrency market after a prolonged period of dormancy.
According to blockchain analytics firm Arkham Intelligence, Tesla initially transferred approximately $225 million in Bitcoin to new wallet addresses. Soon after, the company moved an additional $260 million, then bringing the total to $760 million. The purpose of these transactions remains unclear, leaving market analysts to speculate on the company’s intentions.
Italy To Raise Capital Gains Tax On Bitcoin From 26% To 42%
According to Vice Economy Minister Maurizio Leo, Italy plans to increase the capital gains tax on Bitcoin from 26% to 42% as part of its 2025 budget.
The current tax rate applies to capital gains exceeding €2,000 ($2,180) and was implemented in 2023, but the new proposal marks a significant increase.
The tax hike is part of broader measures to generate resources for supporting families, youth, and businesses while also addressing tax evasion by cracking down on cash usage.
Despite the tax increase, Prime Minister Giorgia Meloni stated there would be no new taxes for citizens and emphasized structural tax cuts for workers.
John Deaton Debates Sen. Elizabeth Warren On Crypto Regulations
With just weeks until the 2024 US elections, cryptocurrency regulation emerged as a hot topic in the recent US Senate debate between Senator Elizabeth Warren and her Republican challenger, attorney John Deaton.
Held on October 15th at WBZ-TV studios in Boston, the debate quickly escalated, with both candidates sharply criticizing each other. Deaton emphasized the stark difference in their positions, asserting that Warren’s approach stifles innovation.
As both candidates head into the election, crypto will likely remain a critical issue for voters.
Final Thoughts
So that’s it for this week!
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Have a fantastic week ahead!
