The US Securities and Exchange Commission (SEC) has approved the listing and trading options for asset manager BlackRock’s spot Bitcoin exchange-traded fund (ETF) on the Nasdaq.
The regulator said in a notice that options trading for BlackRock’s fund iShares Bitcoin Trust has been approved with the ticker “IBIT.”
Index options are listed derivatives that offer a quick and inexpensive way to amplify exposure to Bitcoin. They would give institutional investors and traders an alternative way to hedge their exposure to the world’s largest cryptocurrency. Options also give holders the right to buy or sell an asset, such as a stock or ETF, at a pre-determined price by a set date.
Kamala Harris Promises To Help Grow AI And Digital Assets If Elected President
If elected President, Vice President Kamala Harris said she would aid investments in the crypto and artificial intelligence (AI) sector. While pitching her economic agenda to donors at a fundraiser at Cipriani Wall Street in Manhattan, she promised to assist both AI and crypto to foster innovation and focus regulations on safeguarding users and investors.
These statements come off as the first overtures to the crypto industry as a Democratic presidential nominee, specifically as the crypto community looked forward to understanding her stance on crypto and whether it is anything different from Republicans Elizabeth Warren and SEC chair Gary Gensler. Meanwhile, her opponent, Donald Trump, and other Republican candidates have already established themselves as pro-crypto Presidential election candidates.
Polymarket Considers Token Launch To Raise Over $50 Million
Polymarket is reportedly in talks to raise over $50 million in new funding, which is likely tied to a potential token launch.
The blockchain-based prediction market has gained popularity as a platform for betting on high-profile events like the US elections and federal rate cuts. For context, Polymarket allows users to wager on the outcomes of various scenarios, from political elections to pop culture phenomena, all powered by blockchain tech.
Shayne Coplan, Polymarket’s CEO, has not commented on the news, and the firm has not clarified whether the tokens would offer extra functionality in the system itself.
JPMorgan’s Onyx Blockchain Used For Siemens’ Digital Commercial Paper Settlement
Siemens AG successfully issued and settled a tokenized version of its commercial paper worth €100,000 using JPMorgan’s Onyx blockchain payment system and SWIAT’s private blockchain.
The transaction, which involved the issuance and redemption of crypto securities and redemption of crypto securities under Germany’s Electronic Securities Act, was completed in just 93 seconds.
This collaboration between Onyx and SWIAT aims to enhance asset issuance products for commercial banks, focusing on increasing transaction speed and flexibility while making blockchain transactions scalable.
JPMorgan has seen a significant increase in transactions using its JPM Coin, reflecting its leadership role in tokenizing traditional financial instruments.
Caroline Ellison Sentenced To 24 Months In Prison In FTX Fraud Case
Caroline Ellison, the former crypto executive and romantic partner of disgraced FTX founder Sam Bankman-Fried, was sentenced to 24 months in prison in Manhattan federal court on Tuesday, September 24th. Ellison was a central figure in the FTX bankruptcy saga and a key witness for the prosecution in the 8 billion-dollar fraud trial that ended with Bankman-Fried’s conviction.
The 29-year-old apologized for any harm she did, saying, “I’m deeply ashamed with what I’ve done.”
US District Judge Lewis Kaplan called Ellison’s cooperation “very, very substantial” and praised her testimony but said her prison sentence was necessary given the magnitude of the wrongdoing, which he called the “greatest financial fraud ever perpetrated in this country and probably anywhere else.”
SEC Delays Options On Spot Ethereum ETFs
According to recent filings, the US Securities and Exchange Commission (SEC) has delayed its decision to allow options trading for BlackRock and Bitwise’s spot Ethereum exchange-traded funds (ETFs) until mid-November.
The new deadlines for BlackRock and Bitwise are November 10th and November 11th, respectively. The securities agency stated it needed more time to consider the proposal. It extended the initial 45-day review period that would have ended on September 26th for BlackRock since Nasdaq filed for the rule change for the iShares Ethereum Trust ETF on July 22nd.
The delay also comes after the SEC approved BlackRock’s iShares Bitcoin Trust (IBIT) for options trading on September 20th, a move hailed as a huge win for Bitcoin ETFs.
SEC Chair Gensler Grilled Over Crypto Regulation, Handling Of DEBT Box Case In Heated Congressional Hearing
SEC Chair Gary Gensler faced intense scrutiny during a congressional hearing, particularly regarding the agency’s handling of the DEBT Box crypto case, which a federal judge criticized for acting in bad faith.
Lawmakers expressed concerns about the SEC’s unclear regulatory framework for the crypto industry, while some defended the agency’s role in protecting investors.
The hearing highlighted the growing political significance of crypto regulation, with significant financial contributions from crypto firms to political action committees (PACs) ahead of the upcoming elections.
Genser addressed questions about the definition of securities, referencing the Howey Test to differentiate between various asset offerings, including NFTs and collectibles.
BNY Mellon Secures Regulatory Exemption For Crypto ETF Custody Services
According to Bloomberg, the Bank of New York Mellon could resume offering custody services for Bitcoin and Ethereum spot exchange-traded funds (ETFs) after receiving an exemption from the Office of the Chief Accountant at the US Securities and Exchange Commission.
The world’s largest custodian bank filed a redress on the Staff Accounting Bulletin (SAB) 121 guideline, prompting it to declare crypto assets in custody as liabilities in its balance sheet. SAB 121 was introduced in March 2022 to limit financial institutions’ exposure to emerging digital asset innovation.
Meanwhile, attempts to fully repeal the SAB 121 rules have yet to come to fruition. Earlier in the year, the House and Senate voted against the law, which impedes crypto adoption by banks, but President Joe Biden vetoed the overturn.
Visa To Help Banks Test Tokenized Assets And Smart Contracts
Visa has launched a platform to assist financial institutions in issuing fiat-backed tokens and exploring their applications, aiming to create global standards for easier interactions between banks.
The initiative responds to the increasing tokenization of real-world assets (RWAs) and aims to enable banks to issue regulated tokens, enhancing customer access to on-chain capital markets.
Visa has conducted pilot programs with various banks, including HSBC and Banco Bilbao Vizcaya Argentaria (BBVA), to test the issuance and use of bank tokens on blockchain networks.
The company emphasizes the need for interoperability and standards in tokenization to facilitate real-time money movement and cross-border transfers for banks and their clients.
PayPal Enables US Businesses To Buy, Sell, And Hold Cryptocurrencies
PayPal has launched new features allowing US merchants to buy, sell, and hold crypto directly from their business accounts, although this is not available in the New York State, according to the press release.
The company is also enabling merchants to externally transfer crypto to third-party wallets, enhancing the utility of digital currencies for businesses.
This follows PayPal’s previous steps to increase cryptocurrency functionality, including the introduction of a US dollar-denominated stablecoin, PayPal USD (PYUSD), and its integration into various platforms.
US SEC Says Crypto Mining Devices Are Securities
A US federal court has sided with the SEC, defining crypto mining devices as securities. This comes as the agency continues to prosecute Green United LLC for selling crypto mining hardware in what the commission said was a fraudulent scheme.
The SEC says Green United’s mining equipment and software did not actually mine digital tokens as promised to investors who entrusted the company with $18 million. Green United eventually purchased unmined tokens and distributed them to the investors’ accounts “to create the appearance of a successful mining operation,” the commission says.
The company argued that the SEC was trying to rewrite the law by classifying hosted mining as a security, something they say is a common practice even among public companies. The SEC’s lawsuit is based on the Howey test, a legal standard for determining whether something is a security.
CZ Set To Be Released From Prison On September 29th
Changpeng Zhao (CZ), the founder of Binance and creator of its native token, BNB, is scheduled to be released from prison on Sunday, September 29, after completing his four-month sentence.
CZ’s legal troubles began earlier this year when he was charged with violating US securities laws. In response, Zhao stepped down as Binance’s CEO, and the exchange agreed to pay billions of dollars in fines as part of a settlement with the US Department of Justice.
Additionally, according to the settlement terms, CZ has been banned from running Binance for life. Richard Teng, the current CEO of Binance, confirmed this on X, reassuring the crypto community that CZ’s involvement with Binance would be limited going forward.
Despite the ban, CZ will remain a shareholder and board member of the company, allowing him to retain significant influence, including nominating board members and executives.
Final Thoughts
So that’s it for this week!
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Have a fantastic week ahead!
