Mini Program: Daily Cryptocurrency Dynamics Summary
1. Fidelity is planning to launch its first money market fund traded on blockchain
According to The Information, Fidelity Investments is paving the way for the future launch of a money market fund that may be traded on the blockchain. This is the latest attempt by the traditional financial giant to accelerate financial transactions and expand the product audience. Fidelity has submitted relevant documents to US securities regulators on September 26, detailing its plans. By launching this fund, Fidelity will compete with BlackRock, the world's largest asset management company with a similar fund, which has attracted more than $500 million in investor funds.
2. Crypto derivatives exchange Bitnomial sues the US SEC, questioning its regulatory authority over XRP futures
According to FOX Business, crypto derivatives exchange Bitnomial sued the U.S. Securities and Exchange Commission (SEC), questioning its regulatory authority over XRP futures. Since Bitnomial certified the XRP dollar futures contract, the SEC claimed that XRP is a security and required the exchange to comply with additional regulations. Bitnomial believes that XRP futures should not be classified as security futures and seeks a court declaration to prevent the SEC from asserting jurisdiction over it. The lawsuit intensifies the battle between the SEC and the Commodity Futures Trading Commission (CFTC) over the regulatory power of crypto assets.
3. PwC: Nearly half of traditional hedge funds are getting involved in cryptocurrencies
Nearly half of hedge funds focused on traditional asset classes are now involved in cryptocurrencies, according to a new survey, as regulatory clarity and the launch of exchange-traded funds in the United States and Asia attract more investors to the cryptocurrency category. According to the Global Crypto Hedge Fund Report released Thursday by the Alternative Investment Management Association and PwC, 47% of hedge funds trading in traditional markets hold digital assets, up from 29% in 2023 and 37% in 2022. The survey found that among the funds that have already invested, 67% plan to keep the capital in cryptocurrencies at the same level, and the rest plan to increase investment by the end of 2024.
4. US Senators release draft legislation on stablecoin regulation, which echoes the stablecoin bill framework of the House of Representatives
According to The Block, U.S. Senator Bill Hagerty has released a draft legislation on stablecoin regulation, aiming to create a clear regulatory framework for stablecoins. The draft is similar to the (Payment Stablecoin Transparency Act) jointly formulated by House members Patrick McHenry and Maxine Waters, which aims to balance federal supervision of banks and non-bank institutions. Hagerty pointed out that the draft legislation allows stablecoin issuers to apply for exemptions after reaching the $10 billion threshold and continue to follow state supervision. At the same time, the draft stipulates that stablecoins must be anchored 1:1 with reserve assets such as the US dollar.
5. OKX announced that it has become the world's first crypto trading platform to obtain a full operating license from the UAE
According to official news, on October 10, 2024, OKX Middle East General Manager Rifad announced that OKX became the world's first crypto trading platform to obtain a full operating license from the UAE. Rifad said that in the future, OKX will continue to invest more, grow and expand in the region. Dubai has become one of the global virtual asset centers, and the region is increasingly recognized for its technological innovation and development strategy. We are eager to participate in technological innovation and community building in the growing digital asset field.
6. Zhao Changpeng: Will attend the Binance Blockchain Week in Dubai at the end of October as an individual
Changpeng Zhao, former CEO of Binance, posted on X platform: “I will attend the Binance Blockchain Week in Dubai from October 30th to 31st in my personal capacity. This is one of the largest Web3 events this year. See you then.”
7. Trump family crypto project WLFI reveals in roadmap that it plans to raise $300 million at a $1.5 billion valuation
According to The Block, according to a roadmap shared with potential investors, the token sale of World Liberty Financial (WLFI), the Trump family cryptocurrency project, is scheduled to begin next week. The roadmap shows that WLFI's "first sale" will raise $300 million, and it will sell 20% of the token supply at a fully diluted valuation of $1.5 billion. This indicates that there may be more token sales to come. At X Spaces last month, Folkman said that 63% of the token supply will be sold to the public, of which 17% will be used to reward users and 20% will be used to reward the team. The roadmap clearly states that WLFI will be a governance token used to vote on decisions about the future development of the WLFI platform. These tokens are non-transferable in the first 12 months. Even if the community decides to vote on whether the tokens are transferable during this period, it can only be implemented after one year. Governance functions will take effect immediately, regardless of whether they are transferable. The first phase of World Liberty Financial is to launch a version of the DeFi lending platform Aave on the Ethereum Layer 2 network Scroll, allowing users to lend and borrow tokens, starting with Bitcoin, Ethereum and stablecoins. This part of the plan has already begun. The second phase is to integrate with exchanges to let users trade with proof of on-chain know-your-customer protocols. The project intends to create a stablecoin-centric credit card that will allow people to use their tokens in the real world. The final phase of the project is to segment real-world assets and obtain regulatory licenses. This could include hotels and sports clubs. At the same time, the project hopes to build a settlement platform for stablecoins.
8. Bitcoin mining company Iris Energy triggered an investor lawsuit for allegedly misrepresenting its facility capabilities for AI transformation
According to Finance Magnates, Bitcoin mining company Iris Energy, which recently transformed and promoted itself as a high-performance computing (HPC) data center operator, is now facing a class action lawsuit alleging that it exaggerated its capabilities and prospects to investors. The lawsuit has been filed in the U.S. District Court for the Eastern District of New York, claiming that Iris Energy and its executives made false and misleading statements about the company's ability to transform Bitcoin mining facilities into high-performance computing and artificial intelligence application facilities. The class action lawsuit seeks compensation on behalf of investors who purchased Iris Energy securities between June 20, 2023 and July 11, 2024, alleging violations of federal securities laws. According to the lawsuit, Iris Energy's facility in Childress, Texas, which the company had hyped as a key asset for its high-performance computing strategy, lacks key functions necessary for such operations. The lawsuit alleges that the site has insufficient power redundancy, cooling systems, and fiber optic connections. The plaintiffs also cite statements by Iris Energy co-CEO Daniel Roberts, who claimed that the company had “built this foundational layer, this cornerstone of high-performance data centers that can perform any HPC task.” The plaintiffs allege that these statements were materially false and misleading “because the company overstated the capabilities and overall prospects of its data center business.” Iris Energy’s stock price fell approximately 15% following a critical report released by Culper Research that expressed concerns about the company’s HPC claims and the suitability of its facilities for such applications. “Culper also stated, ‘We are short IREN because we believe the company has grossly overstated the strength and potential of its assets for HPC/AI applications,’ ” the lawsuit comments. IREN shares have fallen more than 50% since their July 2024 high.
9. Peter Todd: Being wrongly identified as "Satoshi Nakamoto" by the HBO documentary will bring me security risks. I have not yet decided whether to sue
According to the Daily Economic News, Cullen Hoback, the director of HBO's latest documentary (Electronic Currency: The Mystery of Bitcoin), identified the protagonist, Canadian software developer and currency expert Peter Todd, as "Satoshi Nakamoto" in the film, sparking heated discussions in the currency circle. In response to this, Peter Todd emphasized that he was not "Satoshi Nakamoto" when responding to the media, and Cullen Hoback's identification of him as "Satoshi Nakamoto" was just a way to attract attention to his Bitcoin documentary. "During the production of the documentary, Cullen interviewed me 4 to 5 times for many hours. Until the last interview, he did not give any impression that he was looking for Satoshi Nakamoto. He just introduced that he was trying to make a documentary about Bitcoin itself." Peter Todd further explained. In addition, Peter Todd also emphasized his personal safety, saying, "Being falsely accused of having billions of dollars by (Cullen Hoback) would bring risks to me." Peter Todd also said that he has not yet decided whether to take legal action to protect his own interests.
10. South Korea will consider lifting the ban on spot cryptocurrency ETFs and institutional accounts on crypto exchanges
South Korea's top financial regulator said it would re-evaluate lifting the existing ban on local spot cryptocurrency ETFs and institutional accounts on cryptocurrency exchanges, The Block reported. The Financial Services Commission (FSC) said in its annual audit report on Thursday that its newly formed cryptocurrency committee will review the current ban. This indicates a shift in the regulator's strict opposition to digital assets entering traditional financial markets. Following the approval of a spot Bitcoin ETF in the United States in January this year, the country's regulator reiterated its decision to maintain the ban on the listing of local cryptocurrency ETFs, arguing that this could pose risks to financial market stability. The country's lawmakers have been calling for change. Both the victorious Democratic Party and the opposition party promised to approve a local spot Bitcoin ETF in the general election earlier this year. The winning left-wing party reportedly announced in May that it would ask the FSC to review the ban. Since 2018, South Korean institutional investors have been effectively banned from opening cryptocurrency trading accounts on exchanges under the strict guidance of the Financial Supervisory Commission of South Korea.
11. Thailand SEC's new draft rules allow mutual funds and private funds to invest in digital assets
According to Decrypt, the Securities and Exchange Commission of Thailand (SEC) has proposed a new draft regulation to allow mutual funds and private funds to invest in digital assets, aiming to keep pace with the development trend of international crypto investment and respond to the growing demand of institutional investors. The SEC plans to allow securities companies and asset management companies to provide crypto-related products such as ETF (Exchange Traded Fund) investment services to large investors. The draft restricts the risk exposure of crypto assets of different fund types, among which the proportion of retail fund crypto investment shall not exceed 15%, while there is no upper limit for institutional and high net worth investor funds.
Article forwarded from: Jinshi Data
