Daily market report (December 22, 2024, 20:25)
ChainDD's market report on December 22 shows that the composite index is in line with CoinMarketCap quotes:
BTC is at $96,929.76, down about 1.23% in the last 24 hours;
ETH is at $3,381.81, down about 1.49% in the last 24 hours;
BNB is at $665.41, down about 1.16% in the last 24 hours;
DOGE is at $0.3214, down about 3.89% in the last 24 hours;
DOT is at $7.07, down about 4.27%.
Crypto market updates
Foreign media: The UAE holds $40 billion worth of Bitcoin.
Binance co-founder CZ shared a report from CryptoDNES on the X platform: "Currently, the UAE holds $40 billion worth of Bitcoin. The UAE is actively creating a favorable environment for the development of cryptocurrencies through initiatives such as the cryptocurrency center at Dubai Multi Commodities Centre. These strategic measures have encouraged the robust growth of local and international blockchain startups, leading to a steady increase in the country's Bitcoin reserves."
Michael Saylor: Upcoming accounting rules effective next year may enable MicroStrategy to meet S&P 500 profitability requirements.
MicroStrategy Chairman Michael Saylor did not explicitly state in a recent interview whether the company might be included in the S&P 500, but he indicated that, given the optimistic outlook on Bitcoin, MicroStrategy could report quarterly net income in the billions of dollars next year due to the increase in the value of its Bitcoin holdings, and the accounting rule changes effective in 2025 may allow MicroStrategy to meet the profitability requirements for joining the S&P 500.
It is reported that MicroStrategy's traditional software business (its main business before it began heavily purchasing Bitcoin in 2020) is relatively small, with a valuation of only about $1 billion. Additionally, this business is currently operating at a loss according to GAAP (Generally Accepted Accounting Principles), which makes it difficult to meet the inclusion requirements for the S&P 500 index. The upcoming accounting rules will adjust the company's Bitcoin holdings from the current undervalued amount to fair market value, potentially resulting in significant net income growth when Bitcoin prices rise. However, the S&P Global Index Committee decides S&P 500 index members by invitation, reviewing profitability, market capitalization, and other factors.
The first participants in the UK's digital securities sandbox have received preliminary approval.
The UK's Financial Conduct Authority (FCA) opened applications for the digital securities sandbox (DSS) at the end of September, relaxing certain rules for DLT market infrastructure. The two entities that have been announced as having received preliminary approval are (expected) central securities depository (CSD) Montis (owned by Archax) and ClearToken, which plans to operate as a central clearing house for crypto and tokenized assets. ClearToken has received support from companies such as Nomura Securities' Laser Digital and Standard Chartered's Zodia Custody.
Like the EU's DLT pilot scheme, the DSS program relaxes the requirement that exchanges and central securities depositories must always be separate (which can sometimes be impractical for DLT).
The Central Bank of Russia has announced the business model for the digital ruble, and local banks have expressed dissatisfaction due to concerns over deposit outflows and high deployment costs.
The Central Bank of Russia recently shared its business model for the central bank digital currency (CBDC). By the end of 2025, all digital ruble transactions will be free, with the first batch of banks and merchants expected to go live on July 1. The central bank plans to earn fees by operating the system.
Meanwhile, at a hearing held last week in the State Duma of Russia, the Association of Russian Banks (ABR) expressed dissatisfaction. They are concerned about potential deposit outflows and high deployment costs. It is reported that the Central Bank of Russia does not intend to limit the amount of CBDC held.
According to Info24, ABR Chairman Anatoly Kozlachkov stated that the setup cost for each bank is about 100 million rubles (1 million USD), while some banks have capital of only 3 million USD.
Former SEC official: Gary Gensler is trying to manipulate the SEC's enforcement division after leaving office.
John Reed Stark, former head of the SEC's Internet Enforcement Office, issued a stern warning about potential internal conflicts at the agency following Trump's victory. Stark recently posted on X, stating: "With the sudden promotions of a series of 'lame duck' officials, SEC Chairman Gary Gensler has launched a deep-state purge. Gensler's actions are not only disgraceful but also shocking.
Stark accused Gensler of promoting five senior officials in the SEC's enforcement division to ensure his influence after leaving office, four of whom have extensive experience in crypto enforcement. He called these moves unprecedented and pointed out that such promotions usually last for a decade, not a month. Stark explained that these are career civil service positions, which means the new administration cannot easily dismiss them.
Stark stated: "SEC Chairman Gary Gensler is clearly trying to manipulate the SEC's enforcement division after leaving office." He added that these promotions have been conducted quietly, without public announcement or press release.
Looking ahead, Stark predicts that a conflict will brew between the incoming Trump administration and Gensler's appointees: "The orders from the White House and the crypto czar to the new SEC Chairman Paul Atkins are undoubtedly to clean house, take names, and immediately order the permanent cessation of all SEC investigations, lawsuits, appeals, and rule-making related to cryptocurrencies."
