Cryptocurrencies To Watch

Author: Chris Lion

  • Hong Kong Plans to Introduce Stablecoin Regulations

    Hong Kong Plans to Introduce Stablecoin Regulations

    Hong Kong is preparing to strengthen its position as a global crypto hub as its regulatory body, the Securities and Futures Commission (SFC), plans to implement a regulatory framework for stablecoins.

    The regulations, expected to be released this year, are designed to strengthen oversight and provide clearer guidelines for the growing stablecoin market in the region. This shows the SFC’s commitment to securing digital asset stability and mitigating risks for investors.

    A Transparent Framework

    The framework will outline essential requirements for stablecoin issuers, such as reserve management, transparency, and operational safeguards.

    Stablecoins, designed to maintain a stable value over time, have grown in popularity because they are more stable than more volatile crypto assets like BTC and ETH.

    The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) also issued a consultation paper in December 2023 on a proposal to regulate fiat-referenced stablecoin (FRS) issuers in light of the potential monetary and financial stability risks posed by FRS.

    Circle Responds to Proposed Stablecoin Regulations

    In line with the stablecoin regulation, Circle, a stablecoin issuer, submitted its response to the Hong Kong Financial Services, the Treasury Bureau, and the Hong Kong Monetary Authority (HKMA) on the proposed regulations for stablecoin issuers in Hong Kong.

    Circle further noted that well-regulated stablecoins can drive the growth of Hong Kong’s Web3 ecosystem and strengthen its position as a global financial center.

    Circle also agreed with the authorities that the FRS issuer must ensure that the FRS remains stable, which is critical for a trusted store of value.

    Slower-Than-Expected Progress

    Meanwhile, Hong Kong started crypto licensing in June 2023, which allowed licensed exchanges to offer retail trading services.

    Progress has been slower than expected. Only three platforms have been fully licensed so far, while another 11 platforms are “deemed-to-be-licensed.”

    The region’s regulator has concluded the initial round of onsite inspections and instructed these applicants to implement the required adjustments.

    China’s Regulatory Commission has also introduced a new licensing system for crypto over-the-counter (OTC) and custody services and is seeking feedback from the industry.

  • The US Dollar Doesn’t Need to Collapse for BTC to Reach $200K: Bitwise CIO

    The US Dollar Doesn’t Need to Collapse for BTC to Reach $200K: Bitwise CIO

    Bitwise Asset Management’s chief investment officer (CIO), Matt Hougan, has addressed a question regarding Bitcoin (BTC) and the ongoing devaluation in the United States.

    In a recent post on X, Hougan responded to a financial adviser’s question about whether BTC could reach $200,000 without collapsing the U.S. dollar.

    Responding to the question, Hougan said:

    “So, no, the dollar doesn’t need to collapse for bitcoin to hit $200k. All you need is bitcoin to continue on its current path of maturing as an institutional asset. But it’s increasingly looking like both parts of the argument will come true. That’s why bitcoin is surging.”   

    The Bitwise executive noted that although both arguments responded to the original question, they were separate points, each with its possible price outcome.  

    BTC to Hit $400,000

    The CIO further explained that bitcoin’s current market capitalization of $1.4 trillion is approximately 7-8% of gold’s $18 trillion market cap. He noted that if BTC matures, its value could reach about half of gold’s, which would make one bitcoin worth around $400,000.

    He added that if bitcoin matures as a store-of-value asset and governments persist in devaluing their fiat currencies, its price could soar well into the seven-figure range. 

    While Hougan explained these points, he added that the store of value market is growing because governments are abusing their currencies.

    “When you invest in bitcoin, you’re actually making two bets at once. Bitcoin will succeed in establishing itself as a new ‘store of value’ asset, while Governments will abuse fiat currencies and increase demand for store of value assets,” he said.  

    Can BTC Hit These Prices?

    In recent times, several Bitcoin investors and crypto experts have expressed high hopes about the future of the crypto asset, predicting it will hit new highs.  

    According to CNBC, many crypto investors are adopting the idea that bitcoin will thrive whether pro-crypto candidate Donald Trump wins or his opponent, Vice President Kamala Harris, takes the seat after the election on November 5.

    Some have strongly believed that BTC will jump to at least $100k no matter who becomes the next U.S. president.

    Similarly, MicroStrategy’s chairman, Michael Saylor,, believes that BTC will reach $13 million within the next 10 years.

  • Asset Manager Canary Capital Files For Spot Solana ETF

    Asset Manager Canary Capital Files For Spot Solana ETF

    Crypto asset management firm Canary Capital has filed for a spot Solana exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC). 

    According to the filing, the proposed Solana ETF will track SOL market value via the Chicago Mercantile Exchange CF Solana index — a live price benchmark tool. 

    Canary to Reduce Risk in Holding SOL 

    The asset manager also noted that the spot Solana ETF offers investors a pathway to engage with the Solana market through a traditional brokerage account, bypassing the risks associated with directly holding the digital asset. 

    Canary Capital has not revealed the custodian for the spot Solana ETF or specified the ticker symbol under which the fund will be listed. 

    Nonetheless, the asset manager believes that Solana has significantly surpassed both Ethereum and Binance Chain in active address market share, even when accounting for layer 2 chains.

    Experts anticipate that Solana will be the next cryptocurrency to gain SEC approval for a spot ETF, following Bitcoin and Ether, which were approved in January and July. 

    Asset Managers Filing for Solana ETF

    Canary Capital is not the only asset manager to have filed for a US spot ETF. On June 27, crypto asset management firm VanEck announced on X that it had filed for a Solana ETF with the US Securities regulator. 

    Similarly, on June 28, 21Shares filed a spot Solana ETF with the US securities regulator. The firm aims to address the growing market demand for crypto-focused investments. 

    Franklin Templeton, one of the first firms to issue a spot Bitcoin ETF in the US, also revealed plans for a potential Solana ETF.

  • Trump Proposes Zero Tax on Crypto Assets Created in the US

    Trump Proposes Zero Tax on Crypto Assets Created in the US

    United States presidential candidate Donald Trump has proposed a zero tax on crypto assets created in the US.

    In a recent interview, Trump noted that the country should prepare to let go of tokens created outside the US.

    “No tax on crypto but only on tokens made in the USA. We want tokens made here at home, we don’t want the Chinese tokens. We say get those Chinese tokens out of here,” Trump said.  

    Zero Tax Payment on BTC & XRP

    He further mentioned that bitcoin (BTC) and XRP would be subjected to zero tax because they are American crypto assets. Cryptocurrencies created outside the country’s economy, like ether (ETH), would be taxed.

    Trump criticized the idea of crypto tax payments. He stated that instead of paying taxes on crypto, it should be replaced with tariffs. 

    “They have them paying tax on crypto, and I don’t think that’s right. Bitcoin is money, and you have to pay capital gains tax if you use it to buy coffee? I was talking with a friend and he said ‘it really shouldn’t be taxed’ and I agreed. Maybe we get rid of taxes on crypto and replace it with tariffs,” he said. 

    America as the World’s Capital For BTC

    In the past months, Trump has made several promises concerning Bitcoin. In September, he notably expressed his confidence in the digital asset and the crypto industry at large. 

    Trump revealed that he plans to make America the world’s capital of Bitcoin and crypto if he wins the upcoming election. 

    The presidential candidate also noted that he would make many adjustments to fit the masses’ demands, including eliminating ten old regulations for every new regulation.   

    Over $7.5M in Crypto Donations

    As part of Trump’s commitment to integrate digital assets into the political and financial framework, his campaign is actively accepting crypto donations. Recently, he received approximately $7.5 million in crypto donations. 

    On July 26, 2024, he received approximately $4 million in crypto donations. More than $2.15 million in BTC was contributed by 19 donors from 12 states.

  • Florida CFO Pushes to Include Bitcoin in State Pension Funds

    Florida CFO Pushes to Include Bitcoin in State Pension Funds

    Florida Chief Financial Officer (CFO) Jimmy Patronis has voiced strong support for including bitcoin (BTC) in the state’s investment portfolio.

    If implemented by the State Board of Administration (SBA), Florida will join a growing number of American states like Wisconsin and Michigan, which have added crypto assets to their portfolios.

    In a letter sent to the SBA executive director Chris Spencer, Patronis called on the SBA to provide a report regarding the feasibility, risks, and possible advantages of allocating a portion of state pension funds into digital asset categories and requested that the report be ready before the upcoming legislative session, which is set for March 4, 2025.

    “Bitcoin is often called ‘digital gold,’ and it could help diversify the state’s portfolio and provide a secure hedge against the volatility of other major asset classes,” Patronis said.

    A Framework For Florida’s Growth Fund

    The CFO proposed that the SBA could establish a “Digital Currency Investment Pilot Initiative” within the framework of the Florida Growth Fund.

    Florida’s SBA oversees more than 30 funds, including the Florida Retirement System Trust Fund, which held approximately $205 billion in assets under management as of September 30.

    According to a January report, the fund used up to 1.5% of the Florida Retirement System Trust Fund and invested approximately $998 million in high-growth assets between 2022 and 2023.

    “When managing state pensions for firefighters, teachers, and police officers, it’s also essential to prioritize the bottom line and ensure the best return on investment for Floridians. This is where the potential of investing in a cryptocurrency, like Bitcoin, becomes particularly compelling,” he added.

    The CFO further noted that this step would align with Florida Governor Ron DeSantis’s recent push to block central bank digital currencies (CBDCs), emphasizing that crypto is the “antithesis” of centralized currency.

    US States Investing in Crypto Assets

    Other US states have recently invested in digital assets. For instance, in May, the State of Wisconsin Investment Board (SWIB) revealed an investment of $164 million in spot Bitcoin exchange-traded funds (ETFs) from Grayscale and BlackRock, representing approximately 0.1% of its total assets under management. 

    Similarly, in July, the State of Michigan Retirement System disclosed its Bitcoin investments, holding 110,000 shares in ARK 21Shares’ ETF, constituting 0.003% of its assets under management.

  • Brian Armstrong Says Next SEC Chair Should Apologise to Americans

    Brian Armstrong Says Next SEC Chair Should Apologise to Americans

    Coinbase CEO Brian Armstrong has urged the future chair of the United States Securities and Exchange Commission (SEC) to drop the agency’s “frivolous” lawsuits targeting crypto companies and apologize to Americans.

    In a recent post on X, Armstrong noted that the apology would not reverse the harm and damage done to the country but would begin to rebuild confidence in the SEC as a trusted institution.

    The CEO pointed out the agency’s approach to regulating the crypto industry, which he claimed has triggered avoidable lawsuits against companies like Coinbase.

    SEC Unable to Classify Crypto Assets

    Under Gary Gensler’s leadership, the SEC has released contradictory statements on key matters, such as classifying digital assets as securities and the agency’s jurisdiction over crypto trading platforms.

    Armstrong noted that in 2018, the SEC declared that crypto assets were not securities, only to reverse that stance in 2021 by categorizing the asset class as investment contracts. By 2024, the agency had altered its position again, asserting that digital assets are not securities.

    The securities watchdog has also changed its classification stance on bitcoin (BTC). The regulator initially classified the asset as a security in 2023, only to re-establish its non-security status in 2024.

    Armstrong further expressed concerns about the SEC’s authority over crypto exchanges. In 2021, the regulator claimed that no regulatory authority governed these platforms. A year later, it claimed that it had Congressional jurisdiction to regulate crypto exchanges.

    SEC Goes After Big Firms

    In recent times, the SEC has filed charges against prominent companies like Coinbase, Kraken, and Binance, and over $7.42 billion in fines have been imposed on crypto firms and individuals.

    This year’s record far exceeds the totals from the previous two years, which were $308.9 million in 2022 and $150.26 million in 2023, which reflects a 63% increase compared to last year’s.

    “The Most Lawless Chair”

    The SEC approach to crypto matters has also led Gensler to face scrutiny over his leadership, with Minnesota Representative Tom Emmer criticizing him as the most destructive and lawless chair in the agency’s history.

    Many in the crypto space have advocated for Gensler’s removal, a move Republican presidential candidate Donald Trump has pledged to pursue if elected.

  • DOJ Charges Crypto Exchange Operator with Money Laundering and Tax Crimes

    DOJ Charges Crypto Exchange Operator with Money Laundering and Tax Crimes

    The United States Department of Justice (DOJ) has charged Maximiliano Pilipis, the operator of crypto exchange AurumXchange, with money laundering and tax crimes.

    According to a recent press release, the DOJ alleged that the 53-year-old defendant conducted over 100,000 tractions, which resulted in a transfer of more than $30 million in funds, some of which came from the held on the Silk Road, an anonymous dark web marketplace that hosted illicit activities including the sale of illegal drugs.

    “Together with our partners in federal law enforcement, we will continue to work to investigate and prosecute offenders who exploit digital assets to fuel drug trafficking and other offenses, and those who unlawfully facilitate the transfer and laundering of the proceeds of crime,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana.

    FBI Shuts Down Silk Road

    The court document revealed that Pilipis operated his exchange without a license from 2009 until 2013 when the Federal Bureau of Investigation (FBI) shut down the Silk Road.

    AurumXchange and Pilipis collected millions of dollars in fees for facilitating these transactions, accumulating over 10,000 BTC, valued at around $1.2 million at the time.

    The agency also accused Pilipis of violating federal registration and reporting requirements for crypto exchanges. The DOJ claimed he ignored the mandate to register with the U.S. Treasury Department and report the exchange’s activities to the federal government.

    Pilipis Laundered and Concealed Proceeds

    The DOJ alleged that the defendant neglected to enforce Know-Your-Customer (KYC) rules, violating Anti-Money Laundering (AML) and counter-terrorism financing (CTF) regulations.

    After shutting down the platform, the DOJ noted that Pilipis divided and transferred the BTC and other assets he obtained from running the exchange to launder and conceal the proceeds of the offenses.

    The DOJ accused Pilipis of converting his proceeds into U.S. dollars and using it for real estate investments in Arcadia and Noblesville, Indiana.

    A 10-Years Sentence

    The department reported that Pilipis’ assets generated hundreds of thousands of dollars in income in 2019 and 2020, yet he failed to file a tax return.

    Pilipis faces up to 10 years in federal prison and a fine of up to $250,000 if convicted. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

  • VanEck’s Matthew Sigel: Bitcoin’s Bullish Setup Mirrors 2020’s Pre-Election Rally

    VanEck’s Matthew Sigel: Bitcoin’s Bullish Setup Mirrors 2020’s Pre-Election Rally

    VanEck’s head of digital assets research, Matthew Sigel, recently shared his view on bitcoin (BTC) ahead of the United States presidential election. In a recent interview with CNBC, Sigel noted that the crypto asset’s patterns mirrored the pre-election rally four years ago.

    He referenced several factors that could drive BTC price movement amid the election, such as economic conditions, market behavior, and growing institutional interest.

    BTC Climbs Higher

    Sigel further shared his insights as BTC climbed above $69,100, with the leading cryptocurrency holding firm despite recent downward pressure. Whether the crypto asset can hit the $70,000 level before November 5, 2024, remains unknown.

    “This is a very bullish setup for Bitcoin into the election. We saw the exact same pattern in 2020 where Bitcoin lagged with low volatility, and then once a winner was announced, we had a high vol rally as new buyers came into this market,” Sigel said.

    Commenting on the recent surge and its correlation with betting odds favoring a Donald Trump win, Sigel said that the connection holds.

    Trump as a More Pro-Crypto Candidate

    The VanEck executive referred to Trump as a more pro-crypto candidate than Vice President Kamala Harris. 

    Segil noted that bitcoin’s most significant long-term correlation is a negative correlation with the U.S. dollar and a positive correlation with money supply growth.

    He further stated that the Federal Reserve’s policy shift and seller exhaustion—particularly after the German government’s significant sell-off—signal a potential reacceleration in money supply growth.

    Sigel mentioned that the rating agency Moody’s is poised to downgrade U.S. sovereign debt, a development that could enhance BTC’s bullish outlook.

    Can BTC Price Hit These Highs?

    Several Bitcoin enthusiasts have recently predicted that the digital asset will hit new highs. For instance, Robert Kiyosaki, a famous American businessman and the author of the popular financial book Rich Dad Poor Dad, predicted that BTC would reach $105,000 by August 2015.

    American billionaire entrepreneur and MicroStrategy’s executive chairman Michael Saylor continues to boost optimism in crypto and bitcoin adoption. Saylor believes that BTC will hit $13 million in two decades.

  • El Salvador’s President Donates $133k in Bitcoin to Support Education in Honduras

    El Salvador’s President Donates $133k in Bitcoin to Support Education in Honduras

    El Salvador’s president, Nayib Bukele, has donated bitcoin (BTC) worth approximately $133,000 to support the construction of 1,000 schools across Honduras.

    El Salvador Embraces BTC for Goodwill

    Shin Fujiyama, a prominent philanthropist and founder of Students Helping Honduras, a non-profit dedicated to combating poverty through education, received the donation.

    One of the key objectives of Students Helping Honduras is to improve young students’ digital literacy, prepare them for the future job market, and empower them with the skills necessary to thrive in the digital economy.

    Fujiyama expressed his gratitude to President Bukele for the generous donation and shared how the president’s dedication to Bitcoin has inspired him.

    The donation shows that Bukele remains dedicated to integrating BTC into daily life and utilizing it for social good despite El Salvador’s obstacles in adopting the crypto asset.

    Promoting BTC Adoption

    Bukele is well-known for his efforts to integrate BTC into El Salvador’s economy. His commitment to the digital asset has led the county to purchase one bitcoin daily.  

    Since declaring Bitcoin legal tender in 2021, Bukele’s administration has taken several steps to boost crypto adoption, with countries like Argentina partnering with the Central American country to advance the adoption of Bitcon. 

    In line with the country’s successes in Bitcoin adoption, early this year, El Salvador mined 474 BTC, valued at approximately $29 million, using volcanic geothermal energy.  

    The country allocated 1.5 megawatts (MW) of the 103 MV, the state-owned power plant produced for crypto mining. 

    On August 21, 2024, El Salvador announced plans to train and provide Bitcoin instruction and certifications to 80,000 public servants. 

    The certification program aims to equip public servants with comprehensive knowledge of Bitcoin, blockchain technology, and the strategic management and public policies surrounding Bitcoin.  

    The country has also launched a website to openly share details about its Bitcoin treasury holdings, demonstrating its commitment to transparency and accountability. 

    The site operates on a custom instance of Mempool, one of the most widely used Bitcoin block explorers.

  • Ethereum’s ‘Verge’ Upgrade to Enable Node Operation on Phones and Smartwatches

    Ethereum’s ‘Verge’ Upgrade to Enable Node Operation on Phones and Smartwatches

    Ethereum co-founder Vitalik Buterin recently explained that the network’s upcoming upgrade, known as “The Verge,” will enhance security and accessibility, enabling its nodes to operate on devices like smartphones and smartwatches.  

    The upgrade aims to enhance the feasibility and accessibility of solo staking by allowing node functionality on smaller devices.

    The Verge also aims to lower hardware requirements through stateless verification, enabling nodes to validate blockchain blocks without the need to store large amounts of data.

    The Verge Introduces Stateless Verification

    According to Buterin’s post, the introduction of stateless verification will make verifying the blockchain so lightweight that every mobile wallet, browser extension, and even smartwatch will handle it automatically.

    The move to stateless verification will eliminate the need for Ethereum nodes to store the entire blockchain, lowering the technical hurdles for users, including solo stakers.  

    Buterin noted that The Verge was originally centered on introducing Verkle trees, a cryptographic method aimed at minimizing proof sizes and facilitating stateless validation.

    He addressed worries regarding the vulnerability of Verkle trees to quantum computing, saying:

    “Verkle trees are vulnerable to quantum computers, and so if we replace the current KECCAK Merkle Patricia tree with Verkle trees, we will later have to replace the trees again.” 

    While the upgrade initially focused on implementing Verkle trees, developers are exploring the use of binary hash trees built on Scalable Transparent Arguments of Knowledge (STARKs), which offer better long-term prospects for security and scalability in the face of quantum computing risks.

    Modifying Ethereum’s Gas Fee

    The Verge also outlines proposed modifications to the network’s gas fee structure through Ethereum Improvement Proposal (EIP)-4762, which would pave the way for stateless verification.

    The proposed change would recalibrate gas fees for resource-intensive cryptographic operations to maintain both network scalability and security, introducing multidimensional gas, according to Buterin.

    This innovative approach distinguishes gas fees for call data, computation, and state accesses to enhance the management of Ethereum’s resources, aligning with the upgrade’s emphasis on reducing hardware requirements.