Welcome to the March 19, 2024 edition of the Genfinity News Recap! As you navigate through your busy workday, staying informed about the latest developments in the realms of Web3 and finance can be a challenge. However, we are here to provide you with an overview of the crypto news you might have overlooked today.
March 19, 2024 Genfinity News Recap
Bitcoin
It was only last week that Bitcoin reached $73,000, surpassing its previous 2021 peak, driven primarily by the launch of BTC ETFs and speculation surrounding the impending Bitcoin halving. However, maintaining this level has proven difficult.
As our Genfinity article summarized earlier, the selling of holdings by significant Bitcoin owners to increase supply could lead to greater institutional adoption, potentially initiating a self-reinforcing cycle of price fluctuations and ultimately determining Bitcoin’s genuine worth.
CoinDesk conducted thorough research and reporting on Bitcoin today, presenting the following updates:
- Following a decline, Bitcoin experienced a modest recovery as investors opted to reduce their exposure to risk.
- This fourth Bitcoin halving is marked by unique factors, including the significant role of transaction fees in miners’ revenues, driven by increased network usage enabled by protocols like Ordinals. Additionally, the upcoming halving at block height 840,000 is anticipated to yield the most valuable block to date, potentially valued at $50 million due to the rarity of individual satoshis and the unique data inscribed on the blockchain.
- Spot Bitcoin ETFs are seen as a means for financial institutions to maintain control and profit from the cryptocurrency market while complicating individual ownership of Bitcoin, particularly amid the rise of DeFi platforms. Large financial firms are acknowledging the potential disruptive impact of digital currencies on traditional business models, akin to the fear nations have towards non-sovereign currencies like Bitcoin. This reflects a broader trend where financial institutions seek to delay inevitable changes while maximizing profits.
- MicroStrategy has purchased an additional 9,245 BTC for $623 million, further bolstering its cryptocurrency holdings. With this acquisition, the company now possesses approximately 214,246 Bitcoins, accounting for over 1% of the total supply that will ever be in circulation.
Blackrock
CoinDesk reported that BlackRock (BLK), a prominent investment management firm, has introduced a tokenized asset fund, as disclosed in a filing submitted to the U.S. Securities and Exchange Commission. Known as the BlackRock USD Institutional Digital Liquidity Fund, this initiative is established in collaboration with tokenization company Securitize and operates from the British Virgin Islands. The fund’s initial capital of $100 million, denominated in Circle’s USDC stablecoin, was recorded on the Ethereum blockchain.
This development comes on the heels of BlackRock’s recent venture into digital asset funds, including the launch of a Bitcoin exchange-traded fund (ETF) in January, which has accrued over $15 billion in assets under management.
The establishment of the BlackRock USD Institutional Digital Liquidity Fund marks a significant milestone in the tokenization of real-world assets (RWA), an emerging sector that blends digital assets with traditional finance. This approach aims to leverage blockchain technology for quicker settlements and improved efficiency.
Regulation
Genesis Global
Genesis Global Capital, a bankrupt crypto lender, has reached a final agreement with the U.S. Securities and Exchange Commission to pay $21 million to settle charges related to securities law violations linked to the now-defunct Gemini Earn program. Summarized by CoinDesk, the settlement follows a recent decision by a New York judge to allow the SEC case against Genesis and crypto exchange Gemini to proceed, despite their attempts to halt it.
Genesis, along with two affiliates, had filed for bankruptcy shortly after facing SEC charges. The agreement, disclosed in court documents in February 2024, has now been concluded, but the SEC will only receive its share of the penalty after other claims are settled in bankruptcy court.
Coinbase
Coinbase, with backing from Paradigm and the Crypto Council for Innovation, is escalating its legal confrontation with the SEC, urging the agency to develop tailored regulations for the crypto market. Reported by CoinDesk, the absence of clear guidelines in the US has prompted businesses to seek more favorable conditions abroad, necessitating urgent regulatory clarity.
Paradigm, in a recent filing, emphasized the challenges of applying traditional securities regulations to decentralized crypto projects, advocating for regulations that consider the unique decentralized nature of digital assets. Coinbase and its allies stress the significance of regulatory predictability, criticizing the SEC’s enforcement-focused approach and its adverse impact on industry innovation and growth. The ongoing legal battle highlights the pressing need for comprehensive regulatory frameworks to support the domestic crypto industry’s development and competitiveness.
UK Financial Conduct Authority
In the coming year, the U.K.’s FCA aims to enhance its capabilities in identifying and addressing market abuse within the cryptocurrency sector, aligning with its plans for 2024 to 2025 to bolster measures against crypto market manipulation. Cointelegraph reported on this initiative, which involves refining monitoring systems and implementing advanced analytics tools to detect market abuse and ensure market integrity across various asset classes.
Furthermore, the FCA intends to collaborate on establishing a proportionate market abuse framework tailored to the unique characteristics of crypto assets, including supporting innovation to reduce industry expenses. The regulator also plans to enhance its technological infrastructure to detect misleading advertisements and educate investors on avoiding scams, building upon its recent implementation of crypto-related marketing regulations and guidance to ensure compliance.
We hope you enjoyed our March 19, 2024 Genfinity News Recap! Come back tomorrow evening for another news summary and please leave a comment below.
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