The chair of the US Securities and Exchange Commission, Gary Gensler, has warned of widespread fraud in the cryptocurrency industry, accusing companies of disregarding laws designed to protect investors. He highlighted recent enforcement actions against crypto firms, including Binance and FTX, as evidence of the sector exploiting unwary investors.
Meanwhile, Donald Trump has made a surprising U-turn, becoming an advocate for cryptocurrency. The former president, now seeking a third term, promises to make the US the global centre for crypto innovation and has even launched his own cryptocurrency business, World Liberty Financial. It marks a stark contrast to his previous criticisms of Bitcoin, which he once dismissed as a scam.
As the US presidential elections approach, the future of cryptocurrency regulation is at a critical point. Trump’s pro-crypto stance opposes the Biden administration’s clampdown on the industry. With millions being spent on political donations, the outcome could significantly influence the direction of crypto regulation, both in the US and worldwide.
Donald Trump made headlines on Wednesday by becoming the first US president, past or present, to publicly use Bitcoin. During a visit to PubKey, a cryptocurrency-themed bar in Manhattan, Trump completed a Bitcoin transaction with the help of the bar’s staff, purchasing burgers ahead of a rally in Long Island. His public use of the Bitcoin network has further solidified his engagement with the crypto industry.
This appearance follows his recent support for World Liberty Financial, a new crypto project involving Trump and several of his children. The project, which formally launched earlier this week, plans to issue a governance token called WLFI. Trump’s involvement in the crypto space has grown significantly in recent months, as he seeks the industry’s backing in his third run for president.
Trump has been vocal in his promise to make the US the ‘crypto capital of the planet,’ as he courts the digital asset sector in his campaign. His ongoing efforts to align with the crypto community signal a strategic push to secure their support ahead of the 2024 election.
Kamala Harris has made her first public comments on cryptocurrency during her US presidential election campaign. Speaking at a Wall Street fundraiser on 22 September, Harris pledged to encourage investment in AI and digital assets while ensuring consumer protection. She also emphasised the need for consistent regulations to create a safe business environment. This marks a shift in Harris’ campaign, with many speculating on how her approach to crypto would differ from President Joe Biden’s.
Harris’ remarks have drawn attention from the crypto industry, with some viewing her comments as a positive step. However, critics, such as crypto legal experts, are wary of her focus on consumer protection, noting that it could be used to stifle the sector. Coinbase’s policy chief acknowledged Harris’ statement as significant but suggested it was less forward-thinking than Donald Trump’s pro-crypto stance. Trump, who has embraced the industry by releasing NFTs and backing his family’s crypto platform, has vowed to overhaul the current regulatory framework if elected.
Crypto has become a key issue in the upcoming election, with both Harris and Trump vying for the support of the industry. National polls show the two candidates running neck-and-neck, with Harris leading Trump by a slim margin of 2.9 percentage points.
Early Bitcoin miners from 2009 have recently begun moving their long-dormant holdings, sparking intrigue within the cryptocurrency community. On 20 September, five miner wallets, each receiving 50 BTC as block rewards shortly after the launch of the Bitcoin blockchain, saw their funds being transferred. These wallets, dating back to January and February 2009, are believed to belong to individuals present during Bitcoin’s inception, just weeks after its pseudonymous creator, Satoshi Nakamoto, introduced the protocol.
When mining, the 250 BTC in these wallets had little value. However, today, the total value has skyrocketed to £13 million. Bitcoin first hit $1 in 2011 on the now-defunct Mt. Gox exchange, a pivotal moment in its rise. The sudden movement of these ancient wallets has prompted speculation, with some suggesting the owners rediscovered their old hard drives, while others ponder whether they belong to Satoshi Nakamoto or early adopters like Hal Finney.
The first recorded Bitcoin transaction took place on 12 January 2009, when Nakamoto sent 10 BTC to Finney, who played a key role in Bitcoin’s early development. Now, with these recent wallet movements, many are left wondering about the identity of those behind them, adding another layer of mystery to Bitcoin’s origin story.
Gold has soared to a record high of $2,629 per ounce following the US Federal Reserve’s recent interest rate cut. This surge, which took place on 23rd September, was fuelled by a combination of reduced bond attractiveness and growing geopolitical tensions. With inflation concerns and ongoing conflicts in Ukraine, Israel, and other regions, many investors are turning to gold as a safer asset. Goldman Sachs analysts expect the precious metal to rise further, predicting it could hit $2,700 by early 2025.
Meanwhile, Bitcoin, often dubbed ‘digital gold’, is also experiencing a rise. Following the Fed’s 0.5% rate cut on 18th September, Bitcoin climbed by 8.5%, reaching a four-week high of $64,660. Crypto analysts predict that the cryptocurrency could break new all-time highs by the end of 2024, following its typical seasonal patterns.
While gold’s rise is grabbing attention, some argue that Bitcoin is now dominating investor interest. Peter Schiff, a known advocate for gold, remarked that many are overlooking the significance of gold’s performance, opting instead to focus on digital assets like Bitcoin.
Former US President and Republican candidate Donald Trump has announced the release of the ‘President Trump First Edition Silver Medallion,’ aimed at raising funds for his upcoming electoral campaign. The silver coin, priced at $100 and available on the RealTrumpCoins.com website, is minted from 99.9% fine silver. One side of the medallion features Trump’s face, while the reverse shows the White House and the phrase ‘In God We Trust.’
With the US presidential election approaching, Trump is exploring various ways to gather financial support. The silver medallion is his latest initiative to boost campaign donations. Trump has clarified that this is the “ONLY OFFICIAL coin” he has personally designed, distancing himself from numerous unofficial Trump-themed meme coins that have emerged in recent months.
Despite speculation that Trump might launch a cryptocurrency, this medallion is a traditional silver coin rather than a digital asset. Many of his supporters had anticipated a crypto launch following the introduction of the World Liberty Financial project, which included a governance token but lacked the typical features of a cryptocurrency.
Investor interest in cryptocurrency has surged, with digital asset funds recording their second consecutive week of inflows. A report from CoinShares indicates that global crypto investment products garnered $321 million in inflows last week, slightly down from the previous week’s $436 million. US-based funds accounted for a significant share, attracting $277 million, while Switzerland contributed $63 million—its second-largest inflow this year.
CoinShares attributes this inflow trend to the US Federal Reserve’s recent 50 basis point interest rate cut, encouraging investments in cryptocurrencies and other high-risk assets. As a result, crypto funds experienced a 9% increase in their total assets under management, reaching $9.5 billion in total investment product volumes.
Bitcoin funds were the primary beneficiaries of this trend, seeing inflows of $284 million. Conversely, Ethereum funds continue to struggle, with $29 million in outflows for the fifth consecutive week, primarily driven by persistent withdrawals from Grayscale’s Ethereum Trust. However, Solana investment products have maintained a steady pace, recording small inflows of $3.2 million last week.
In a bid for mainstream adoption and global visibility, cryptocurrency startups have signed approximately 87 sports sponsorship deals over the past three years. Research from data provider CoinGecko reveals that many of these partnerships were forged with European football clubs, with 33 agreements established since 2021. Renowned clubs such as Manchester United and Chelsea have offered valuable exposure to crypto sponsors, especially during high-profile events like the UEFA Champions League and the FIFA World Cup.
The motorsports sector has also seen substantial involvement from cryptocurrency firms. Before its collapse, FTX secured a multi-year deal with the Mercedes Formula 1 team, while Bybit and Red Bull Racing announced a $150 million partnership in 2022. Furthermore, F1 designated Crypto.com as its official digital asset partner in a separate $100 million agreement, highlighting the growing intersection of crypto and sports.
Esports has emerged as another area of focus, with FTX investing $210 million in Team SoloMid in 2021. Other major players, such as Coinbase, have also made similar commitments. Additionally, sports like basketball, competitive combat, baseball, American football, and cricket have engaged with crypto service providers, aiming to reach larger audiences. Notably, most of these marketing collaborations occurred in 2024, spurred by rising crypto prices and increasing Bitcoin adoption.
While it remains challenging to assess the effectiveness of these sponsorships on the cryptocurrency market, recent trends indicate that web3 firms are likely to allocate more resources towards sports marketing in the future.
MyTonWallet, the wallet application native to The Open Network (TON) blockchain, has recently added support for the Tron network. In a post on X dated 23 September, the wallet announced its multi-chain capabilities, allowing users to access TronDAO assets through its interface. Users can now manage Tron (TRX) and Tether (USDT) on the MyTonWallet platform.
This multi-chain wallet lets users track their balances, view transaction history, and transfer assets across TON and Tron networks. The integration comes as both ecosystems witness significant development and growing adoption, particularly with the rise of tap-to-earn models and meme coin projects, enhancing interoperability between the two chains.
Toncoin, the native cryptocurrency of the TON ecosystem, facilitates network operations and serves as a transaction currency, supporting decentralised finance (DeFi), gaming, and non-fungible tokens. Additionally, USDT on TON is being leveraged to drive growth within its DeFi ecosystem. The TON team recently launched a $5 million incentive programme to bolster this expansion further and increase USDT usage on TON-based decentralised exchanges.
In a crucial court case, Coinbase, the largest US cryptocurrency exchange, confronted the Securities and Exchange Commission (SEC) in Philadelphia. The exchange is calling on the SEC to create new regulations for digital assets stemming from a lawsuit over the agency’s failure to address a 2022 petition. The petition aimed to clarify when a digital asset is deemed a security and suggested a new regulatory framework specifically designed for the cryptocurrency sector.
The SEC rejected Coinbase’s request in December 2023, asserting that current regulations are adequate for the cryptocurrency sector. Coinbase’s attorney argued that the SEC’s refusal to clarify registration processes has hindered the exchange’s ability to operate within US laws. In contrast, an SEC lawyer maintained that the agency is not obligated to create new rules, suggesting that businesses like Coinbase must adapt to the existing regulatory framework.
This legal dispute highlights an ongoing tension between the cryptocurrency industry and the SEC, which asserts that many crypto tokens qualify as securities and fall under its jurisdiction. The crypto sector largely views itself as existing in a regulatory grey area, pushing for new legislation to provide more precise guidelines for managing digital assets. This ongoing struggle underscores the need for a cohesive framework that addresses the unique challenges of the rapidly evolving crypto market.
As the appeals court considers both sides, the outcome could have significant implications for how cryptocurrencies are regulated in the United States, potentially shaping the industry’s future.
