Coinbase has filed a motion seeking partial summary judgment in its ongoing legal battle against the US Securities and Exchange Commission (SEC). The cryptocurrency exchange aims to access internal SEC documents, hoping to gain insight into the regulator’s approach toward the crypto industry. This stems from the SEC’s decision to deny requests under the Freedom of Information Act (FOIA) for crucial records on its enforcement strategies.
Coinbase, through History Associates, has been attempting to understand the SEC’s stance on digital assets, especially concerning the regulation of cryptocurrencies as securities. The SEC initially withheld documents under law enforcement exemptions but later acknowledged that these protections might no longer apply. Despite this, the regulator has delayed the document review process for three years, which Coinbase argues is unwarranted.
This motion is part of Coinbase’s broader efforts to challenge the SEC’s regulatory approach to the crypto sector, which many believe lacks clear guidelines. The case highlights the need for transparency regarding how the SEC enforces securities laws in the rapidly growing digital asset space.
Cryptocurrency investment products saw a surge in inflows during 5–11 October, totalling $407 million, with Bitcoin leading the charge. Bitcoin investment products attracted $419 million, while short-Bitcoin investments saw outflows of $6.3 million. This significant uptick comes as political developments in the US, particularly polls favouring Republicans in the upcoming elections, appear to have boosted market confidence in Bitcoin.
CoinShares’ head of research, James Butterfill, highlighted the political shift as the main driver behind the increase in crypto inflows, noting that economic data had little impact on stemming outflows from the previous week. Investors seem to view Republicans as more supportive of digital assets, leading to a rise in Bitcoin’s price, which climbed by more than 2%.
Meanwhile, blockchain ETFs saw their largest weekly inflows of 2024, totalling $34 million. However, Ethereum continued its trend of outflows, with $9.8 million withdrawn from Ether products last week, indicating a contrast in investor sentiment between Bitcoin and Ethereum.
US Vice President Kamala Harris is strengthening her connection with the cryptocurrency community through her “Opportunity Economy” agenda. She is set to speak with Black entrepreneurs in Erie, Pennsylvania, discussing her support for small businesses, cryptocurrency regulation, and cannabis legalisation at the federal level. The initiative aims to empower Black men by providing tools for home ownership, business creation, and wealth building.
Harris’s campaign has shifted its stance on digital assets. Once seen as part of an anti-crypto regime, her current position favours regulatory frameworks that protect crypto investors, including Black men who own such assets. Ripple co-founder Chris Larsen’s $1 million donation to her campaign signals a growing belief that Harris may work on bipartisan crypto legislation.
Despite this support, not everyone in the crypto community is convinced by her campaign’s shift. However, Harris remains focused on protecting crypto ownership rather than restricting it.
The Central Bank of Brazil has opened the second phase of its digital currency pilot, Drex, inviting companies to apply from 14 Oct. to 29 Nov. The initiative aims to explore complex use cases for the tokenised real, including government-backed loans, agribusiness assets, and carbon credits. Thirteen proposals have already been approved, advancing Brazil’s push toward integrating blockchain into its financial system.
The first phase of the Drex pilot saw 16 consortiums, mostly led by banks, testing the digital real through decentralised networks. However, privacy concerns remain, with four participants yet to resolve transaction anonymity issues. Brazil’s Securities Commission president stressed that tokenisation is a business model poised for long-term success and must be regulated within the financial system.
Brazil’s efforts to develop its CBDC align with global trends. The Atlantic Council notes that 134 countries are considering CBDCs, with Brazil among the 65 most advanced. China, meanwhile, has made significant strides, with its digital renminbi, e-CNY, reaching $1.02 trillion in transactions by 11 October.
World Liberty Financial, a crypto project backed by Donald Trump, has secured over 100,000 signups ahead of its WLFI token launch on 15 October. The WLFI token, built on Ethereum as an ERC-20 asset, will serve as the governance token for the decentralised finance (DeFi) platform, allowing users to borrow, lend, interact with liquidity pools, and transact with stablecoins. In the US, however, only accredited investors will have access.
The platform’s team, including Zak Folkman, reiterated its plans to raise $300 million through the WLFI token sale, aiming for a $1.5 billion valuation. The project will initially launch on Ethereum with plans to expand to layer-2 networks. Former President Trump has pledged to turn the US into the world’s ‘crypto capital’ if elected in November, as he leads Kamala Harris by 9% on the Polymarket betting platform.
Deutsche Bank has entered a strategic partnership with Keyrock, a crypto-native market maker, to bolster its global market-making and OTC trading operations. The collaboration is set to improve settlement processes and expand Keyrock’s operations across regions like Europe, the Middle East, and Asia-Pacific. Deutsche Bank will provide multi-currency accounts and access to over 100 currency pairs, enabling Keyrock to trade efficiently and reduce settlement risks.
Keyrock CEO Kevin de Patoul welcomed the partnership, emphasising Deutsche Bank’s industry expertise and innovative approach. Kilian Thalhammer, Deutsche Bank’s Global Head of Merchant Solutions, noted that this move reflects the bank’s commitment to supporting fintech and blockchain advancements.
This partnership follows Deutsche Bank’s earlier steps into blockchain technology, including its involvement in Singapore’s Project Guardian. The bank’s proactive stance on digital assets highlights its increasing engagement with the evolving financial markets.
The UK is set to launch a Central Bank Digital Currency (CBDC) pilot in 2025, but critics are sounding alarms over privacy concerns. While the Bank of England promises to modernise the financial system, experts, including Big Brother Watch, question whether enough has been done to protect citizens’ freedoms.
Susanna Copson, legal and Policy Officer at Big Brother Watch, argues that the case for a CBDC remains unclear, especially with risks to privacy and equality. She warns that a digital pound without anonymity could lead to government overreach, turning the currency into what she describes as a ‘digital spy coin.’
As awareness remains low, organisations like Big Brother Watch push for public participation in government consultations. They urge citizens to contact their MPs and engage in discussions to protect their freedoms in the face of this looming digital shift.
As much as $1.3 billion in Ethereum, seized from the notorious PlusToken Ponzi scheme, is expected to be sold on exchanges soon. On-chain analysts have confirmed that a portion of the 542,000 ETH remaining from the scheme has already been transferred to platforms like Binance and OKX, suggesting plans to sell off the assets.
The PlusToken scheme, which was dismantled in China in 2019, attracted millions of participants and saw vast amounts of cryptocurrency seized. Analysts warn that any significant liquidation of this Ethereum could increase selling pressure, possibly affecting its market value, which is currently around $2,448.
Experts from blockchain analytics firms are monitoring the situation closely. They suggest that the sale of such a large amount of Ethereum could have a ripple effect on the crypto market, leading to potential price drops and further impacting investor sentiment.
Stablecoins are rapidly emerging as a vital solution for businesses seeking to streamline payment processes, with Singapore recently hitting a milestone of $1 billion in stablecoin payment value. As a stable alternative to both traditional fiat and volatile cryptocurrencies, stablecoins are increasingly being adopted for everyday transactions, particularly within the e-commerce sector. Recent studies indicate that 64% of consumers are open to using cryptocurrencies and stablecoins for payments, with a growing number of retailers planning to accept them within the next couple of years.
These digital currencies, tethered to stable assets like the US dollar or Euro, offer notable advantages, such as faster transactions and reduced volatility. The stability allows businesses to mitigate the risks associated with sudden price fluctuations, making it easier to lock in profits. Furthermore, with stablecoins expanding across various blockchain networks, including faster and more cost-effective options like Polygon and Solana, they are becoming more accessible to a wider range of businesses. This shift not only simplifies payment processing but also enhances cross-border transactions by eliminating currency conversion hassles.
As regulations around cryptocurrencies continue to evolve, stablecoins are well-positioned to lead the charge in the transformation of financial settlements. With their increasing normalisation in markets like Singapore, these digital assets are set to play a crucial role in the future of e-commerce. The potential for stablecoins to overcome many of the challenges faced by traditional payment systems suggests that they will soon become a mainstream choice for businesses worldwide, ushering in a new era of digital financial solutions.
MicroStrategy is set on transforming itself into a ‘Bitcoin bank,’ with co-founder Michael Saylor projecting a potential trillion-dollar valuation for the company. With a massive Bitcoin holding of 252,200 coins, valued at $15.8 billion, MicroStrategy’s strategy centres around using Bitcoin to create capital market instruments for investors.
Bernstein Research has rated the firm as ‘Outperform’ with a target price of $290, crediting its Bitcoin-focused approach for this optimistic outlook. Saylor likens Bitcoin to a ‘tech monetary network’ and envisions creating various financial products tied to the cryptocurrency, allowing investors to benefit from Bitcoin’s performance.
MicroStrategy’s innovative use of convertible bonds and equity to raise capital at low interest rates has given it a competitive edge in the digital asset space. Saylor remains bullish, predicting that Bitcoin’s price will soar in the future, potentially turning MicroStrategy into a trillion-dollar company.
