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Urgent Call: Coinbase Wants Congress to Rescue Crypto Innovation

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Key Takeaways

  1. Coinbase urges Congress to prioritize clear crypto legislation to empower innovation and protect consumers.
  2. The proposal advocates granting the CFTC authority over spot markets to foster market transparency.
  3. Swift action is needed to prevent innovation from moving overseas and safeguard the U.S.’s blockchain leadership.

Coinbase, one of the leading cryptocurrency exchanges, has called for the U.S. Commodity Futures Trading Commission (CFTC) to oversee spot cryptocurrency markets, limiting the Securities and Exchange Commission’s (SEC) role in regulating digital assets.

This bold proposal, written by the Chief Policy Officer of Coinbase, Faryar Shirzad, reflects the need for comprehensive legislation to provide much-required clarity to innovators while preserving robust protection of the customer base.

The proposed framework prioritizes enabling developers, preserving self-custody capabilities, and encouraging participation within decentralized finance (DeFi). In addition to this, Coinbase is of the opinion that central intermediary institutions like exchanges must have high levels of both transparency and security to enhance customer trust.

A central recommendation is to allow the CFTC to regulate the crypto spot market, namely assets like Bitcoin and Ethereum that are categorized as commodities. In the view of Coinbase, this measure would introduce a degree of transparency, prevent fraud, and act to support the consumer without discouraging innovation within the blockchain ecosystem overall.

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Source: Coinbase

Coinbase Propose Clearer Rules Could Bolster Innovation

The Coinbase proposal also emphasizes the need to grant the developers the regulatory certainty to build the systems that are decentralized with the assets being owned by the user itself.

Shirzad also emphasizes the protection of wallets that will enable the public to engage with blockchain without being entirely reliant on central systems.

Additionally, the paper advocates maintaining the open innovation potential of DeFi and digital commerce. Shirzad warns that excessive regulation will push innovation overseas with the potential to expose American consumers to fraud and systemic threats.

A stablecoin infrastructure that will ensure the token is fully supported and transparent is also needed to bridge the crypto to the fiat economies. In requesting simplified user-friendly regulations, Coinbase is highlighting the need to integrate crypto regulation into the existing U.S. financial infrastructure without disrupting unnecessarily.

Time is of the Essence

Coinbase’s proposal warns of the perils of lagging regulation. In the dearth of certain legislation, the U.S. will lose its comparative advantage with the flight of companies and programmers to other jurisdictions with less onerous terms. Besides that, vague terms leave American consumers at the mercy of potential market abuses and collapse.

By passing reasonable legislation, the Congress can have the opportunity to serve the consumers, enhance innovation, and uphold the U.S.’s blockchain lead globally. The call to action by Coinbase is a watershed that is the country getting the opportunity to seal its status within the international digital economy.

Coinbase Expands Institutional Offerings with New Solana and Hedera Futures

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  • Coinbase expands its institutional offerings with Solana (SOL) and Hedera (HBAR) futures, adding to its growing derivatives market.
  • The new futures are CFTC-regulated and offered through Coinbase Derivatives, LLC, ensuring U.S. regulatory adherence.
  • Coinbase introduces EURC-USDC perpetual futures, aiming to capture a share of the global $7.5 trillion FX market.

Coinbase, the largest US-based cryptocurrency exchange, has taken one step further towards establishing its institutional business. The exchange has introduced CFTC-regulated Solana (SOL) and Hedera (HBAR) futures, citing increased US investors’ appetite for crypto derivatives. This is one component of Coinbase’s overall strategy towards merging traditional finance with the emerging digital asset market.

Coinbase reported the derivatives will be offered through its subsidiary, Coinbase Derivatives, LLC (CDE), U.S. Commodity Futures Trading Commission (CFTC)-registered Designated Contract Market (DCM). Having self-certified with the CFTC, the exchange has attained U.S. regulatory approval, proving its commitment to providing increased institutional access for cryptocurrency derivatives.

The latest additions bring the total count of the CDE contracts to 19, including some very popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and Stellar (XLM). The Exchange sees this as the next milestone towards the ongoing transformation of the U.S. derivatives market for cryptocurrencies, highlighting the growing adoption by institutional investors. 

Coinbase Launches New Futures for Crypto Institutions

Futures contracts provide fundamental functions in the financial sphere by granting market players the capacity for risk-hedging, speculating over price movements, and investing through less capital being required from the start. In recognizing.

Coinbase Derivatives expanded its list last year by including margined Avalanche (AVAX), Chainlink (LINK), Polkadot (DOT), Stellar (XLM), and Shiba Inu (SHIB) futures contracts, allowing institutions access to diversifying exposure. Building upon this momentum, the exchange has introduced new market-tailored futures contracts.

These include Nano Solana Futures (SOL) for 5 SOL per contract, Solana Futures (SLC) for 100 SOL per contract, and Hedera Futures (HED) for 5,000 HBAR per contract. These additions will provide greater flexibility for institutions in handling crypto risk and optimize capital deployment.

Coinbase’s entry into derivatives is one component of its overall strategy for the long-term convergence of traditional financial markets and the market for digital assets. In August 2023, its subsidiary, The Exchange Financial Markets, Inc. (CFM), secured regulatory approval from the National Futures Association (NFA) for operation as a Futures Commission Merchant (FCM).

With this approval, the Exchange has expanded its business for institutional investors by providing them access to traditional commodity contracts and cryptocurrencies. These commodity products, the exchange hopes, will allow institutions to use complex models for handling the turbulent crypto market.

Coinbase Introducing EURC-USDC Perpetual Futures

Beyond the launch of crypto futures, Coinbase has also rolled out EURC-USDC perpetual futures, providing 24/7 exposure to the Euro price. One of the largest financial marketplaces in the world, the foreign exchange (FX) market has over $7.5 trillion worth of trades daily. With the launch of these futures, the Exchange is trying to find its niche in this market, offering the traditional FX market some relief through crypto rails.

EURC perpetual futures have several advantages, including leverage up to 20x for enhanced capital efficiency, instantaneous settlement for liquidity transactions, and continuous Euro price exposure without expiry, making them the right solution for innovative FX seekers.

Eligible non-U.S. institutions will now also be able to trade EURC-PERP on the Exchange, and non-U.S. retail investors can access the asset through Coinbase Advanced. This is the next milestone towards decentralizing global finance and delivering new value for institutional investors.

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SEC and CFTC Explore Strategic Collaboration to Strengthen Crypto Regulation

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  • SEC and CFTC aim to revive a joint committee for clearer crypto regulation.
  • Brian Quintenz’s CFTC appointment signals a pro-crypto shift in U.S. oversight.
  • Crypto market cap rises to $3.18 trillion amid regulatory discussions and shifts.

The United States Securities and Exchange Commission and the Commodity Futures Trading Commission are reportedly developing joint regulations for cryptocurrency markets. The two agencies are exploring ways to revive the CFTC-SEC Joint Advisory Committee (JAC) from its inactive status since 2014. The body was initially formed in 2010 to resolve shared regulatory issues. The proposed reforms for the committee occur as the regulatory environment evolves since regulators aim to establish better clarity around digital assets.

The revived committee will establish better cooperation between the SEC and CFTC regarding their shared responsibilities for crypto asset regulation. These agencies plan to work jointly to resolve emerging jurisdictional questions affecting digital asset prominence in financial markets. The agencies’ combined efforts would create better mutual understanding between the officials and produce more transparent regulatory guidance for market participants.

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SEC and CFTC Explore Strategic Collaboration to Strengthen Crypto Regulation 3

Leadership Changes Signal Shift in Regulatory Focus

The SEC and CFTC demonstrate their combined efforts following recent leadership transitions at both organizations. Mark T. Uyeda assumed the SEC chair role acting after Gary Gensler left his position. Additionally, investors in the crypto sphere expect Paul Atkins to bring a more favorable approach toward digital currency. The community is currently considering him to take over the agency. The pro-crypto stance of candidate Paul Atkins means he could establish beneficial new strategies toward blockchain technology and digital assets during his potential tenure.

Furthermore, Brian Quintenz’s appointment to the CFTC represents a major development that favorably impacts the crypto industry. Before joining a16z, Quintenz served as chief of crypto policy, where he demonstrated continuous support for defined regulations governing digital assets. Under this appointment, the CFTC leadership might create a structured framework that enables innovation and investor safeguards.

Ongoing Legal Moves and Market Reactions

The ongoing crypto regulatory exploration between agencies occurs alongside legal sector proceedings that question enforcement methods. For instance, SEC and Binance submitted a request for sixty days of suspension of legal proceedings as their case progressed, which sparked theories about similar delays affecting major existing lawsuits. The SEC’s enforcement direction might transform due to new leadership as they inspect alternative litigation methods instead of maintaining aggressive investigation activity.

The crypto market capitalization has increased to $3.18 trillion, representing a total market growth of 1%. Bitcoin’s price remains at $96,100, having risen 0.3% last day. According to the Crypto Fear and Greed Index, consumer sentiment in the market has transitioned from fear to neutral.

Trump Plans to Appoint Andreessen Horowitz’s Quintenz as CFTC Chair

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  • Donald Trump plаns to аppoint Brian Quintenz аs CFTC chаir, signаling а pro-crypto rеgulаtory shift.
  •  Quintenz, formеr CFTC commissionеr аnd а16z policy hеаd, could influеncе crypto-friеndly finаnciаl policiеs.
  • Trump’s broаdеr finаnciаl rеshufflе includеs Jonаthаn Gould for Comptrollеr аnd  Jonathan McKernan for CFPB.

US Prеsidеnt Donald Trump is rеportеdly gеаring up to аppoint Brian Quintenz аs thе nеxt chаir of thе Commodity Futurеs Trаding Commission (CFTC).  Quintenz, currеntly hеаd of policy for thе crypto аrm of vеnturе cаpitаl giаnt Andreessen Horowitz (а16z), is еxpеctеd to bring а pro-crypto stаncе to thе rolе. 

Thе rеport, first rеvеаlеd by Bloombеrg on Fеbruаry 12, stаtеs thаt а documеnt wаs sеnt to thе Whitе Housе аnd Cаpitol Hill dеtаiling Trump’s intеntions. If confirmеd,  Quintenz will likеly push for policiеs thаt fаvor thе intеgrаtion of cryptocurrеncy into thе trаditionаl finаnciаl systеm. His bаckground аs а formеr Rеpublicаn commissionеr of thе CFTC bеtwееn 2016 аnd 2020 givеs him а dееp undеrstаnding of thе аgеncy’s rolе аnd influеncе.

A Crypto-Friendly Regulator in the Making

During his first tеnurе аt thе CFTC,  Quintenz strongly аdvocаtеd for thе inclusion of digitаl аssеt dеrivаtivеs аnd crypto-bаsеd finаnciаl products. His pаst support suggеsts thаt undеr his lеаdеrship, thе CFTC could plаy а pivotаl rolе in shаping how cryptocurrеnciеs аrе rеgulаtеd in thе Unitеd Stаtеs.

Andreessen Horowitz, thе firm whеrе Quintenz currеntly lеаds policy, is onе of thе most influеntiаl vеnturе cаpitаl firms in thе crypto industry. Thе firm hаs bаckеd mаjor projеcts likе Mаkеr (now Sky), Solаnа, Avаlаnchе, Aptos, EigеnLаyеr, Lido, Nаnsеn, OpеnSеа, аnd Coinbаsе. With his dееp connеctions in thе industry, Quintenz could mаkе thе CFTC а kеy аlly for thе crypto sеctor.

His potеntiаl аppointmеnt is аlrеаdy gеnеrаting еxcitеmеnt аmong industry lеаdеrs. Acting CFTC Chаir Cаrolinе Phаm еxprеssеd hеr еnthusiаsm, rеcаlling kеy initiаtivеs shе succеssfully workеd on аlongsidе  Quintenz during his prеvious timе аt thе аgеncy. Blockchаin Associаtion CEO Kristin Smith аlso prаisеd thе dеcision, cаlling  Quintenz’s rеаl-world еxpеriеncе in crypto а mаjor аdvаntаgе for thе rolе.

Trump’s Wider Regulatory Shakeup

Bеyond thе CFTC, Trump’s rеcеnt nominаtions signаl а broаdеr strаtеgy to rеshаpе finаnciаl ovеrsight. Thе sаmе documеnt thаt rеvеаlеd Quintenz’s аppointmеnt аlso includеd two othеr kеy picks. Jonathan Gould, а pаrtnеr аt thе globаl lаw firm Jonеs Dаy, hаs bееn nominаtеd аs thе Comptrollеr of Currеncy. If confirmеd, hе will ovеrsее thе rеgulаtion of аll U.S. nаtionаl bаnks.

Additionаlly, Trump hаs sеlеctеd  Jonathan McKernan аs thе nеw pеrmаnеnt hеаd of thе Consumеr Finаnciаl Protеction Burеаu (CFPB). McKеrnаn rеsignеd from thе Fеdеrаl Dеposit Insurаncе Corp (FDIC) on Fеbruаry 11, pаving thе wаy for his nеw rolе аt thе CFPB.

With thеsе аppointmеnts, Trump аppеаrs to bе аssеmbling а finаnciаl tеаm thаt аligns with his dеrеgulаtory аpproаch. If  Quintenz tаkеs ovеr аt thе CFTC, it could mаrk а mаjor victory for thе crypto industry, sеtting thе stаgе for morе fаvorаblе rеgulаtory trеаtmеnt. Whеthеr this movе will gаin full аpprovаl rеmаins to bе sееn, but for now, thе crypto world is wаtching closеly.

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CFTC to Host CEO Forum: How Stablecoin Trading Could Shape Crypto Laws, Report

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  • CFTC plans CEO forum to discuss stablecoin use and digital asset regulation with crypto industry leaders.
  • Forum aims to shape future U.S. approach to digital asset regulation, following CFTC’s ongoing crypto market adaptation.
  • CFTC’s pilot program will focus on stablecoin trading, addressing crypto industry demands for clearer regulation.

The US Commodity Trading Futures Commission (CFTC) has planned to conduct a CEO forum for the digital assets pilot plan that will involve the utilization of non-cash securities such as stablecoins. The event would have industry practitioners in attendance, some of which are Circle, Ripple, Coinbase and Crypto.com.

The main objective of the forum is to bring together heads of companies and discuss the prospects of the market of digital assets and the existing legislation. Caroline Pham, the acting CFTC Chair showed great interest to the forum, stating that CFTC is interested in developing the crypto market.  Pham said, 

“I look forward to engaging with market participants to deliver on the Trump Administration’s promise of ensuring that America leads the way on economic opportunity.”

CFTC’s Vision for Crypto Regulation

This decision comes after the CFTC has been relentlessly working in a bid to adapt to the needs of the dynamic cryptocurrency market. Since the early part of the new Millennium, and even prior to that in the late 1990s and the Commission had began to put down marker in a relative clear signal that it sought to advance pilot plans as future trends with consequences toward trying to rationalise the structure of the industry.

This decision comes after the CFTC has been relentlessly working in a bid to adapt to the needs of the dynamic cryptocurrency market. Since the early part of the new Millennium, and even prior to that in the late 1990s and the Commission had began to put down marker in a relative clear signal that it sought to advance pilot plans as future trends with consequences toward trying to rationalize the structure of the industry.

The forum is one of the measures that the CFTC has been putting in place to add structures that will contain the industry of the digital assets. This move replicates activities of the United States Securities and Exchange Commission that has created a crypto task force to oversee the space. The UK’s Financial Conduct Authority (FCA) has also not been left out in this bracket as it practiced these regulatory frameworks too.

Future of Crypto Regulation

Despite the lack of specifics on CFTC very elaborated plan of the Forum realization, the Commission has clearly stated it’s intention to reveal more details as soon as the specific steps are determined. It is believed that the forum will in one way or another determine how the Americans will approach and regulate assets of this type in the future.

The CFTC is to convene a pilot program to facilitate trading of stablecoins and non-cash collaterals because of increasing utility in the cryptocurrency market. As the popularization of the digital currency continues to exert pressure for better and more reasonable regulation on the sector, the platform move is considered as a good step towards the provision of the right framework to build the industry out. Altogether, the result of the work initiated in the context of these deliberations could determine the form of regulation of digital assets in the future years.

Gemini Eyes IPO in 2024 After $1.1B Payout Deal: Report

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  • Gemini is exploring an IPO this year, with discussions ongoing but no final decision yet.
  • The firm has agreed to return $1.1 billion to customers through the Genesis bankruptcy process.
  • Gemini settled a $5 million CFTC lawsuit without admitting liability.

Cryptocurrency exchange Gemini, founded by Cameron and Tyler Winklevoss, is considering going public this year, according to Bloomberg sources. The company is reportedly in discussions with potential advisers, though no final decision has been made.

If successful, Gemini’s IPO will mark a significant step towards a growing intersection of traditional finance and cryptocurrencies. Winklevoss twins, with a long background in early days at Facebook and then strong affiliations with the community in cryptocurrencies, have positioned Gemini in a strong position in the marketplace.

The firm both deals with and holds assets for, and exchanges with, both institution and retail investors. Cryptocurrency companies desire greater financial legitimacy in an environment in transition for regulators, and that is spurring consideration for an IPO.

Regulatory Battles and Financial Settlements

The company has faced its share of legal challenges in recent years. The firm recently settled a lawsuit with the Commodity Futures Trading Commission (CFTC), agreeing to pay a $5 million penalty. The case revolved around allegations that Gemini misled regulators while attempting to launch the first U.S.-regulated Bitcoin futures contract.

The company resolved the dispute at an early stage in the current year, neither denying nor acknowledging liability. Gemini’s “Earn” scheme was hurt by Genesis Capital’s failure to lock in user funds. In a settlement, Gemini agreed to pay a minimum of $1.1 billion to affected users.

Gemini Political Ties and Industry Impact

The broader cryptocurrency community saw increased political momentum, most recently with the election of Donald Trump, whose administration saw strong support for the community. In particular, the Winklevoss twins donated Bitcoin to Trump’s campaign, with part of the gifts having to be returned in compliance with legal restrictions.

The company’s potential IPO aligns with a trend of crypto firms seeking public listings. Peter Thiel-backed Bullish Global is also reportedly considering an IPO, reflecting a larger shift toward institutional acceptance of digital assets. If the company moves forward with its public listing, it could set a precedent for other crypto companies looking to enter mainstream financial markets.

With over 500 workers in its international offices in New York, Seattle, Singapore, London, Dublin, and India, Gemini’s expansion drive seems to have placed it in a position for long-term expansion. An IPO is not yet guaranteed, but its potential contribution to the crypto marketplace could be significant.

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Trump’s Bold Crypto Move: $3.5 Trillion Industry Awaits CFTC Chair Pick

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Key Takeaways:

  • Trump’s transition team is vetting candidates for the CFTC chair role, which is pivotal for regulating the $3.5 trillion crypto industry.
  • Front-runners include pro-crypto figures Brian Quintenz and Summer Mersinger, both critical of regulation by enforcement.
  • Trump aims to position the U.S. as a global crypto hub, with significant industry-friendly appointments underway.

As Donald Trump prepares to take office on January 20, his administration will become a game-changer for the cryptocurrency industry. He promised a halt to regulation and to create a U.S. that should be the “crypto capital of the planet.”

Pre-empting that, besides other strategic moves announced by Trump earlier, are the appointments that he has made: pro-crypto Paul Atkins would head the top regulatory agency at the SEC; Bitcoin advocate Scott Bessent was appointed as Treasury Secretary.

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The focus, however, is on who he will name to head the Commodity Futures Trading Commission. The post is pivotal given the fact that CFTC will be taking charge of the burgeoning $3.5 trillion digital asset market. Several big-name candidates have been interviewed by Trump’s transition team, including CFTC Commissioner Summer Mersinger, Brian Quintenz of Andreessen Horowitz, and Marco Santori, Kraken’s former chief legal officer.

The sources, granted anonymity by Bloomberg, identify Mersinger and Quintenz as frontrunners. Both have called for more explicit regulations and have criticized the Biden administrati

CFTC Chair Pick: A Turning Point for U.S. Crypto Regulation

The announcement of the resignation of outgoing CFTC Chair Rostin Behnam has increased speculation over Trump’s appointee. Given his relationships with the industry and lawmakers, Quintenz is well-placed, especially now as the crypto policy chief at Andreessen Horowitz. His work on regulated futures contracts for Bitcoin and Ethereum during Trump’s previous term further bolsters his credentials.

Similarly, Mersinger’s experience as a Senate aide and her vocal stance on balancing innovation with consumer protection earn her respect. Her dissents in enforcement actions against DeFi platforms reflect her commitment to the development of a rules-based regulatory environment.

Both candidates believe proactive collaboration with the crypto sector is required to establish guidelines that are fair and consistent, placing the CFTC in a position of oversight rather than enforcement.

Crypto Industry’s Role in Trump’s Regulatory Vision

The crypto executives have contributed significantly to Trump’s campaign, signaling the alignment of the industry with him. This hints at a developing belief in an impending change in regulation that allows innovation to happen without destabilizing the market.

With Marc Andreessen, the a16z founder and a Trump adviser, advocating for wide-ranging regulations, Quintenz’s association with the firm may be an advantage. Because of her policy chops and support from much of the industry, however, Mersinger remains a strong candidate.

It was further observed that the crypto community will be carefully monitoring Trump’s pick for the chair of the CFTC, as his or her work might just redefine the regulatory landscape and continue to set concrete the leadership position of the United States in the digital asset space.

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Gemini Pays $5M Fine to CFTC, Eyes Growth Under Trump Era

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  • Gemini Trust Company settled a $5 million penalty with the US Commodity Futures Trading Commission.
  • The settlement resolves allegations of misleading statements about Gemini’s Bitcoin futures product.
  • Gemini previously resolved a $37 million fine related to its Earn Program and repaid $1.1 billion to users.

Gemini Trust Company, a leading cryptocurrency exchange, has settled a $5 million penalty with the US Commodity Futures Trading Commission (CFTC). The agreement ends litigation over alleged misleading statements concerning its Bitcoin futures product. This settlement precedes the inauguration of pro-crypto President-elect Donald Trump, avoiding a trial scheduled for January 21.

Gemini Aligns Growth With New Regulatory Optimism

The CFTC accused Gemini of providing incomplete information about preventing Bitcoin price manipulation in its futures product. The claims centered on ensuring fair competition for all participants in the cryptocurrency market. The exchange opted to settle without admitting liability, prioritizing its operational focus and future growth.

The resolution relieves the digital trading platform, which now operates free from significant regulatory challenges. The exchange can redirect its resources toward enhancing its services and expanding its customer base. The timing aligns with optimism about improved crypto regulations under the incoming administration.

The exchange’s decision to resolve the case reflects its commitment to compliance and sustainable growth. The company aims to capitalize on increasing competition from traditional financial institutions entering the web3 space. With legal disputes settled, Gemini is positioned to attract new customers and strengthen its market share.

Recent partnerships with firms like Samsung and Brave highlight Gemini’s strategy to expand its global footprint. The exchange, operational in over 70 countries, holds significant Bitcoin reserves of 121,178 BTC, which bolsters its reputation as a top liquid player in the Web3 industry.

Crypto Firms Hope for Favorable Trump Policies

The conclusion of this case signals a shift in focus for Gemini and the broader cryptocurrency market. The anticipated regulatory clarity from the Trump administration has fueled optimism among crypto firms. Many hope for reduced enforcement actions and policies favoring innovation and adoption.

The company’s resolution comes after a $37 million fine last year for issues related to its Earn Program. That settlement included a $1.1 billion repayment to affected users. With these matters resolved, Gemini is well-positioned to navigate the next phase of crypto adoption.


The firm’s diversified offerings, including its NFT marketplace and Nifty Gateway, stand to benefit from the absence of legal distractions. This clear path could spur significant user engagement and product development growth in the coming months.

Trump Eyes Crypto Growth with CFTC-Led Oversight Shift: Report

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Key Takeaways

  • The Trump administration plans to grant the CFTC more authority over the $3 trillion crypto asset market.
  • Bitcoin, Ethereum, and other digital currencies classified as commodities could see increased regulation under the CFTC.
  • The move aims to promote innovation by reducing the SEC’s control and encouraging balanced oversight.

The incoming Trump administration plans to significantly alter the regulatory landscape for cryptocurrencies by expanding the Commodity Futures Trading Commission’s (CFTC) jurisdiction. According to the reports, this shift would grant the CFTC authority over Bitcoin, Ethereum, and other digital assets categorized as commodities, including their spot markets.

The CFTC regulates today’s $20 trillion derivatives market and may soon add new responsibilities policing exchanges for digital commodities. That rule change aligns with a broader mission, pushed by key officials in the Trump administration, to promote innovation and ease regulatory burdens on the crypto industry.

The move is at a time when there is criticism about the hard-driving approach the Securities and Exchange Commission has taken on under outgoing Chairman Gary Gensler; his policies are quite unpopular within the industry.

Former CFTC Chairman Chris Giancarlo has said that the agency is capable of effectively regulating digital assets with the right funding and leadership. His potential “crypto czar” role gives reason to believe a committed path forward will be established in developing clear, even-balanced crypto policies.

Balancing Innovation and Regulation

While many in the crypto industry welcome the CFTC’s increased role, traditional stakeholders are concerned about the agency’s overreach into other markets, such as agriculture and physical commodities. Targeted legislation will be important to address these issues and maintain regulatory harmony.

The Trump administration also tries to revamp the approach of the SEC and advances common work between the two agencies on the main crypto issues, including stablecoins. Giancarlo emphasized the need for the rejuvenation of the pro-innovation stance by the SEC, which is a possible prelude to smoother regulatory processes.

Future Implications for the Crypto Market

Giving specific authority to the CFTC in crypto spot markets might help bring clarity on how the whole regulatory mechanism currently works and, subsequently, improve investor and company confidence in the crypto markets. However, questions remain because an overall lesser budget and staffing mean capability disparities exist within this agency in terms of carrying out its mandate within expanded areas.

The Trump administration is trying to achieve a more innovation-friendly environment with the empowerment of the CFTC and reforming of the SEC, not at the cost of market integrity. This apparent dual focus may be what defines the future of cryptocurrency regulation in the United States.

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Tether Faces Fraud Allegations, Raising Fears of a Crypto Market Collapse

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Cyber Capital’s founder and CIO Justin Bons has leveled severe accusations against Tether. In a series of X posts, he said that USDT is engaged in a $118 billion fraud, and criticised the company for not providing evidence of its reserves and having not undergone a formal audit since its establishment.

While USDT keeps on claiming that it holds lots of assets, there has never been an audit done to confirm this. This lack of transparency is problematic for the crypto industry, as market players are left to rely on Tether’s claims of having $118 billion in collateral, which has not been independently confirmed.

Tether’s Looming Risk

The analyst notes that this is a higher risk than the Terra Luna collapse, indicating a potential systemic failure. He noted that should something going wrong with USDT, the consequences could be disastrous and affect the entire cryptocurrency industry.

Bons also pointed to Tether’s past misconduct in handling financial affairs. As of 2021, the Commodity Futures Trading Commission (CFTC) accused USDT of issuing false reports of its reserves, but the latter has not been audited yet to this date. However, as he underlined, Tether released an ‘auditor’s report’ together with BDO, but this is not equivalent to the full, unqualified audit that the company has been promising since 2015.

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Other issues with USDT governance structure also make it suspicious. New information has emerged that only two board members control USDT Holdings, which has led to concerns on the company’s reserves’ security and independence. This level of centralization means that a few individuals can have control or exert control over the whole operation and this poses a threat to investors.

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Tether’s Controversial Connections

He also raises concern over Tether’s affiliations with sketchy banking methods as well. Tether also has links with Bitfinex, an exchange which is operated by some of the same people who are involved with USDT and the company’s affairs with Crypto Capital, a Panama based bank that is accused of money laundering for drug cartels has also sparked controversies. In 2019, Crypto Capital’s assets were seized and this put both Bitfinex and Tether in a very vulnerable situation which raised questions regarding their operations.

Nevertheless, Bons warns that with USDT market capitalization growing, USDT poses a threat to the cryptocurrency market. He wants investors to switch their assets to a more secure and more transparent stablecoins and also to be cautious and safe from a potential market crash.

While Tether remains the main player in the stablecoin market, more and more people in the cryptoverse call for transparency. The recent allegations have further raised concerns on Tether’s operations with many people wondering on the stability of the market in the coming days.