Several positive developments have happened over the past seven days, with the most-talked-about being the decision by the US SEC (Securities and Exchange Commission) and Ripple to dismiss their appeals. Last Thursday, the two parties informed the court of their decision, which was green-lighted, with Ripple ordered to pay a fine of $125 million for violating securities laws when it sold its XRP token to institutions a few years ago.
Alongside this story, other developments that have grabbed the attention of crypto enthusiasts include:
Trump Signs New Executive Order
On August 7th, American President Donald Trump signed an executive order instructing financial watchdogs to identify and charge banks that blocked crypto firms from using their services. The order also demands that financial institutions reinstate crypto clients debanked during “Operation ChokePoint 2.0” under former President Joe Biden.
For starters, Operation ChokePoint 2.0 was an initiative that many crypto players believed was intended to drive blockchain companies offshore. It made it difficult for crypto firms to access banking services, essentially limiting onramp and offramp services.
Bitwise Executive Officer Says SEC’s New Direction Hasn’t Been Priced in
According to Chief Investment Officer at Bitwise, Matt Hougan, crypto markets have not priced in the new SEC’s favourable stance on digital assets, and therefore, there is more room for prices to rise in the coming months.
The SEC, under the leadership of Paul Atkins, has announced several initiatives aimed at creating a conducive environment for crypto. Hougan says these initiatives are likely to promote institutional adoption, which could pump prices further.
Buterin Vitalik Supports Ethereum Treasury Companies, But Expresses Overleverage Concerns
Although Ethereum founder Vitalik Buterin supports companies adopting ETH treasuries, he is afraid that if this trend isn’t handled responsibly, it could turn into an ‘overleveraged game.’
Speaking on the popular Bankless podcast last Thursday, the crypto guru also acknowledged that Ethereum treasury firms have provided a new way for investors to get exposed to the ETH ecosystem without holding the token.
Binance Founder Asks Court to Dismiss an FTX Lawsuit
Changpeng Zhao, the founder of the Binance exchange, moved to court last week to challenge a lawsuit brought by fallen crypto platform FTX, which sought to recover at least $1.8 billion transferred to Binance by FTX founder Sam Bankman-Fried in 2021 to purchase back equity shares that Zhao’s exchange had acquired in 2018.
FTX attorneys told the court that the transfer was fraudulent, and Zhao should compensate the collapsed exchange, which is looking to raise more money to refund its creditors. However, the Binance founder argues that the funds were sent to the exchange’s account and he wasn’t the actual recipient; therefore, he should not be held accountable.
Bitcoin Rally to $250k in 2025 is Still Possible, Fundstrat Founder Claims
As many crypto analysts warn that a massive pullback is likely in the coming months, Fundstrat founder Tom Lee is optimistic that Bitcoin could surge to $250,000 before this year ends. He attributes the potential price rally to increased institutional interest.
Other industry players with a similar positive view on Bitcoin include Unchained’s market analyst Joe Burnett and BitMEX founder Arthur Hayes. Meanwhile, 10x Research CEO Markus Thielen has predicted a modest Bitcoin surge to $160,000 over the remaining months.
Former Crypto Guru to Pay the SEC $10M for Misappropriating Customer Funds
Hunyh Tran Quang Duy, the founder of now-collapsed lending protocol MyConstant, will pay the US SEC over $10 million in penalties to settle charges of misappropriating investor funds. According to a statement from the American financial regulator, Duy lied to investors that their funds would be used to offer loans and receive interest in return. However, he used the money ($11.9 million) to purchase the TerraUSD stablecoin, which collapsed in 2022.
Investors in MyConstant weren’t the only ones affected by TerraUSD’s sudden crash. Several companies that had exposure to the Terra ecosystem also incurred losses worth billions.
