News Headlines (1st November 2023)

Data from Cointelegraph Markets Pro and TradingView showed BTC price trajectory continuing Cathie Wood’s investment management firm ARK Invest has made its third sale of Coinbase (COIN) stock this week, dropping 37,377 shares worth almost $4.7 million at Thursday’s closing price.

Along with sales on Nov. 27 and Nov. 29, ARK has sold around $15 million worth of COIN shares this week from its Next Generation Internet ETF (ARKW).

The crypto exchange’s Nasdaq-listed shares reached their highest level since April 2022 at the start of the week, touching $119.77 on Monday. They fell 2.43% on Thursday to close at $124.72, but nonetheless remain at 19-month highs.*qhciy0*_up*MQ..*_ga*MTI4NDg1MTE2Mi4xNzAxNDMyNzI3*_ga_VM3STRYVN8*MTcwMTQzMjcyNi4xLjEuMTcwMTQzMjc1Mi4wLjAuMA..

A spot Bitcoin ETF has become something of a holy grail for the crypto industry—despite repeated pushback by the SEC—but Coinbase CEO Brian Armstrong is “pretty optimistic” that one will be approved soon.

While stressing that he doesn’t have “proprietary or inside knowledge” on the matter, Armstrong told Decrypt that, “from everything I’ve read publicly […] it feels to me like we’re getting closer to an approval.”

“I’m pretty optimistic we’ll see something approved on an ETF next year,” he added.

Crypto exchange Binance launched a pilot program that allows banks to store trading collateral off-exchange, according to a Nov. 30 announcement. Binance claimed that the program would help reduce counterparty risk.

According to the announcement, the program allows institutions to hold collateral at a third-party bank instead of depositing it on the exchange. This “replicates a framework common in traditional financial markets, which enables investors to proportion their crypto-asset allocation based on their risk tolerance,” the announcement stated. Collateral can be held in the form of cash or Treasury bonds, allowing institutions to earn yields while they trade.

According to Decrypt, Reddit’s r/cryptocurrency community token, Moons, has experienced a double-digit increase after the social media platform officially renounced the Moons contract. As part of the process, Reddit burned its remaining 98,000 Moons tokens, imposing a hard cap on the supply of approximately 83 million Moons. The r/cryptocurrency subreddit’s mod team considers this a significant milestone for the community, as it ensures no further changes to Moons’ contract in the future. This also allows Moons to easily retain existing exchange listings without the need for a new token deployment.

The price of Moons currently stands at $0.158456, up 11% on the day, and has surged over 150% in the past month following the announcement of a plan forward for the token.

The individual responsible for the Kyberswap security breach has conveyed a desire for absolute authority over Kyber, the company, and temporary control over the Kberdao governance structure. This revelation followed the $47 million breach at Kyberswap, after which the team established communication with the suspected perpetrator. The day prior, the assailant stressed the need for the team to adopt a more approachable stance and indicated plans to propose a new strategy on November 30.

As promised, an announcement was made by the hacker, signaling an interest in a more favorable arrangement than the initial share offered by the Kyberswap team. In essence, the hacker is asserting a claim to complete dominion over Kyber, encompassing all its resources, both onchain and offchain.

After months of hoping U.S. crypto legislation could win House of Representatives approval this year, lawmakers doing much of the behind-the-scenes work are looking to 2024 as the time when digital assets bills may get passed by that Republican-controlled chamber though the efforts still face an uphill climb in the Senate where Democrats have the reins.

U.S. Rep. French Hill (R-Ark.), the chairman of the House Financial Services Committee’s subcommittee that focuses on digital assets, said the House’s consideration of two major crypto bills – one to regulate U.S. stablecoin issuers and another to form a broad system of rules for crypto markets – has likely shifted into “early 2024.”*qhciy0*_up*MQ..*_ga*MTI4NDg1MTE2Mi4xNzAxNDMyNzI3*_ga_VM3STRYVN8*MTcwMTQzMjcyNi4xLjEuMTcwMTQzMjc1Mi4wLjAuMA..

The lawsuit alleges that Binance sold unregistered securities and operated illegally in the United States. It claims Ronaldo lent his celebrity to hype investments, driving traffic and investors to the platform.

“The binding law… across the country, regarding mass promotion of cryptocurrency and unregistered securities. was recently clarified and reversed,” wrote plaintiffs’ attorney Adam Moskowitz. He argued that under the new standards, “promoters like Cristiano Ronaldo, with a financial incentive for themselves or for the financial benefit of the securities issuer (Binance), can be held liable under securities laws for using the internet and social media for mass solicitations of cryptocurrency.”

Australia’s controversial new guidelines for cryptocurrency taxation should be ignored for being unclear and should probably be seen as “toilet paper,” according to an Australian law firm.

On Nov. 9, the Australian Tax Office (ATO) released guidance that could impact how investors and traders involved in decentralized finance report their taxes.

In a Nov. 27 blog, Cadena Legal noted the guidance was “non-binding” instead of a binding public ruling — arguing that such guidance should be seen as “toilet paper.”

According to Foresight News, Hong Kong-listed company Kester Holdings has announced that it has signed a non-binding cooperation letter of intent with Rongz International, Zhongsheng Investment LPF, and American Bacosys Inc. The four parties plan to establish a joint venture in the United States and collaborate globally to develop international offshore banking, cross-border payment and settlement, digital finance, and digital asset (virtual asset) businesses.

The joint venture aims to combine the expertise and resources of the four companies to expand their presence in the global financial market. By working together, they hope to offer innovative solutions in the areas of offshore banking, cross-border payments, and digital finance, as well as explore new opportunities in the growing digital asset sector.

Hill blasted the lack of action from the SEC on the FTX case, criticizing SEC Chair Gary Gensler for not working with Congress in issuing a regulatory framework with a legislative background as was recommended in a Biden Administration executive order signed last year.

He stated:

The SEC has been asleep on the switch. I don’t think you can solve this by trying to cram the crypto and digital assets infrastructure and ecosystem into existing laws and that’s what Gary Gensler has tried to do. I think he has failed at it.

Furthermore, Hill explained that passing these bills gives the CTFC oversight over the spot Bitcoin market from a regulatory standpoint, an element commonly mentioned as an impediment to getting an ETF approved. “I think it’s something that will benefit institutional and individual investors,” he concluded.