Welcome to this week’s edition of AsicZ’s Weekly Wednesday Roundup, where we dive into the cryptoverse, unraveling the most pivotal and transformative events that have shaped the narrative this week. From the launch of the UAE Dirham Stablecoin, DRAM, to the legal intricacies involving the SEC, Coinbase, and Ripple, and the crypto community’s call to Elon Musk regarding the Satoshi ‘X’ Account, this week has been a blend of innovation, regulatory tussles, and community activism. Let’s embark on this journey, summarizing the week’s most notable happenings.
Distributed Technologies Research (DTR) has launched DRAM, a stablecoin backed by the United Arab Emirates’ (UAE) fiat currency, the dirham. Initiated by an MIT alumnus and former SoftBank executive, Akshay Naheta, DRAM aims to provide countries experiencing high inflation with exposure to assets linked to the UAE’s stable economy. The stablecoin, which was listed on DeFi protocols Uniswap and PancakeSwap on October 3rd, is issued by Hong Kong-based Dram Trust and regulated under the Hong Kong Monetary Authority. Although DRAM cannot be offered in Hong Kong or the UAE currently, discussions are underway to facilitate its listing on centralized exchanges outside these jurisdictions. The stablecoin’s smart contract addresses are linked on Ethereum, BNB Smart Chain, and Arbitrum, reflecting different DRAM supplies on each blockchain.
The U.S. Securities and Exchange Commission (SEC) has requested a federal judge to deny Coinbase’s motion to dismiss a lawsuit, maintaining that some digital assets listed on its platform were investment contracts under the Howey Test and thus subject to SEC registration. The SEC alleges that Coinbase was aware that if these coins meet the Howey Test, they are securities. Coinbase’s legal chief, Paul Grewal, countered the SEC’s arguments, asserting that the assets listed “are not securities and are not within the SEC’s jurisdiction.” The SEC refuted Coinbase’s invocation of the “major questions doctrine,” which claims the SEC has no authority over the crypto market until Congress provides direction. The ongoing legal battle continues to spotlight the regulatory complexities surrounding digital currencies and their classification.
Members of the crypto community have called for Elon Musk to remove a profile on X (formerly Twitter) claiming to be Bitcoin creator, Satoshi Nakamoto, alleging it violates the platform’s terms of service regarding “misleading and deceptive” identities. The account, reportedly run by a user named Andy Rowe since 2018, recently posted for the first time since October 31, 2018, stating it would explore various aspects of the Bitcoin white paper in the coming months. The community has rallied behind the call to remove the account, with some labeling it “embarrassing” and urging immediate action. The true identity of Satoshi Nakamoto has long been a topic of speculation and debate within the space.
A federal judge has denied the U.S. Securities and Exchange Commission’s (SEC) motion to appeal its loss against Ripple, the company associated with the XRP token. Following the news, XRP’s price experienced a roughly 5% increase. District Judge Analisa Torres stated that the SEC did not demonstrate the existence of controlling questions of law or substantial grounds for differences of opinion. While this decision is a setback for the SEC, the judge has set a trial date for April 2024 for other unresolved issues. The SEC may attempt to appeal the overall case afterward. In July, the judge had ruled that Ripple violated federal securities laws by selling XRP to institutional investors directly but did not do so by making XRP available to retail customers through programmatic sales to exchanges. This ruling had cast doubt on the SEC’s ability to regulate crypto effectively.
The trial of FTX founder, Sam Bankman-Fried, commenced without a jury being seated on the first day, though several prospective jurors were dismissed. Approximately 50 individuals remain in the pool, with 12 jurors and six alternates expected to be selected on the following day, and opening arguments anticipated shortly after. Bankman-Fried, accused of conducting one of the largest financial frauds in history, could face decades in prison if convicted. His companies, FTX and Alameda, collapsed last November after customer withdrawals revealed an $8 billion deficit. The trial, estimated to last six weeks, is likely to begin after jury selection concludes. The prosecution and defense expect their opening statements to last 30 to 40 minutes, with the first witnesses to take the stand later in the day.
The launch of Ether (ETH) futures exchange-traded funds (ETFs) in the U.S. has been met with subdued investor interest, contrasting with the initial enthusiasm surrounding their introduction. On October 2nd, nine ETFs holding futures contracts based on ETH made their debut, but the collective trading volume was only $6.6 million on the first day, according to data from AB Bernstein. This performance pales in comparison to the ProShares Bitcoin Strategy ETF (BITO), which attracted $1 billion of assets in its first two days of trading in October 2021. The lackluster launch is attributed to the current weak retail sentiment towards digital assets, as opposed to BITO, which launched during a peak in the digital bull market. Despite the slow start, the availability of these ETFs provides a regulated avenue for investors to gain exposure to ETH, and their success or failure cannot be determined from the initial days of trading due to various influencing factors like market sentiment and macroeconomic conditions.
Ripple announced that its Singapore subsidiary has obtained a payments license, enabling it to operate in Singapore without transaction limits. The Monetary Authority of Singapore (MAS) granted the license, allowing Ripple to offer regulated digital payment token services. The initial approval was received in June. Ripple is now one of 14 companies licensed to provide digital payment token services in Singapore, alongside others like Coinbase’s Singapore arm and the Singapore units of Revolut and Blockchain.com. The MAS, acting as Singapore’s central bank and financial regulator, only grants licenses to digital currency firms with robust anti-money laundering controls. Ripple, based in San Francisco, notes that over 90% of its business is conducted outside the U.S., with Singapore and the broader Asia-Pacific region being among its fastest-growing areas.
In a week where stablecoin launches, legal battles, and community voices have painted the cryptoverse with varied strokes, the importance of staying informed and navigating through these complex narratives becomes paramount. At AsicZ, we are your one stop source for a wide array of mining equipment and tools such as our profitability and hosting calculators. With our industry-leading MaaS (Mining as a Service) that offer power rates below .03/kWh, we are also your ally in remaining sustainable through most market conditions. Our daily blog ensures you’re equipped with the knowledge to mine, invest, and traverse confidently through the digital currency landscape. Together let’s continue to grow, innovate, and prosper in this burgeoning industry .
- UAE Dirham Stablecoin DRAM Launches on Uniswap, PancakeSwap
- SEC Asks Judge to Reject Coinbase’s Motion to Dismiss Lawsuit
- Crypto Community Tells Elon Musk to Dump Satoshi ‘X’ Account
- XRP Price Rises After SEC’s Motion to Appeal Ripple Loss Is Denied
- No Sam Bankman-Fried Jury Yet; Judge Expects to Cull 50 Prospects Quickly on Wednesday
- Ether Futures ETFs Experience a Slow Start
- Crypto Firm Ripple Secures Singapore Payments Licence