In today's crypto landscape, we see a dynamic interplay of regulatory shifts, strategic market moves, and institutional trends. OKX's decision to burn over 65 million of its native token, OKB, is a clear example of a strategic supply adjustment influencing market behaviour. This move, coupled with the planned upgrade of its Ethereum layer-2 network, X-Layer, has resulted in a significant surge in OKB's price. The exchange's strategy to position X-Layer as a leading network for DeFi, asset tokenization, and payments is an indication of the growing institutional interest in these areas.
On the regulatory front, the Google Play Store's new licensing requirements for cryptocurrency wallet applications across 15 jurisdictions, including the US and EU, is a significant development. This move, which requires developers to adhere to local financial regulations, is a clear signal of the increasing regulatory scrutiny in the crypto space. It also highlights the challenges faced by non-custodial wallets, which are now required to implement AML/KYC compliance despite not holding user funds.
Meanwhile, the US SEC's shift from "regulation by enforcement" to less hostile engagements with crypto companies under the Trump administration has resulted in several high-profile cases being dropped. These decisions are seen as victories for the crypto industry and could potentially signal a more favourable regulatory environment for crypto firms.
Lastly, the successful debut of cryptocurrency exchange Bullish on the public markets indicates a resurgence in investor interest in digital asset firms. This, along with the anticipated approval of Solana ETFs, could potentially accelerate the rally in the crypto market.
In conclusion, the current crypto landscape is marked by strategic market moves, regulatory shifts, and growing institutional interest. Understanding these trends and their implications is crucial for legal and financial professionals navigating the Web3 space.
The following article summaries have been sourced from Decrypt, CryptoSlate, NewsBTC, and Crypto Briefing. Each summary includes a direct link to the original source.
OKX, a global cryptocurrency exchange, announced changes to the tokenomics of its native token, OKB, which resulted in the token's price more than doubling and hitting a new all-time high. The exchange plans to burn over 65 million OKB tokens, reducing its fixed supply to 21 million. This move sparked a surge in OKB's price, with the token reaching as high as $135 before settling around $103. The 124% gain makes OKB the biggest mover among the top 100 crypto assets by market cap over the last 24 hours, with nearly $3.5 billion worth of OKB changing hands during that period.
The price surge comes as OKX plans to upgrade its Ethereum layer-2 network, X-Layer, which uses OKB as its native gas token. The upgrade aims to position X-Layer as one of the leading networks for DeFi, real-world asset tokenization, and payments. As part of the upgrade, OKX will decommission its OKT Chain network and convert all OKT Chain tokens in user accounts to OKB. This announcement also sent OKT prices up more than 100%. The exchange also plans to carry out a one-time burn of over 65 million OKB tokens, which will reduce the total OKB supply to 21 million, matching the supply of Bitcoin. The burn transaction, expected to take place on August 15, will incinerate around $6.7 billion worth of OKB tokens.
Bitcoin reached a new all-time high on Wednesday, with its price hitting $122,882, surpassing the previous record of $122,838 set in July, according to CoinGecko data. This surge, representing a 6% increase over the past week and a 30% increase year-to-date, comes amid a favorable macro environment that has encouraged traders to take on more risk. Stocks also experienced significant growth, with the S&P 500 and Nasdaq setting record highs. Bitcoin's performance has been linked to the low-interest-rate environment and its classification as a "risk-on" asset, similar to tech equities.
The recent surge in Bitcoin's value is also attributed to President Trump's election win in November and the subsequent increased investor interest in American Bitcoin exchange-traded funds. President Trump has been exerting pressure on Jerome Powell, the chair of the U.S. central bank, to lower interest rates. Meanwhile, Ethereum, the second-largest cryptocurrency, is also nearing its record high. Currently priced at $4,728, it is just 3% below its all-time high of $4,878 set in November 2021. This comes after a period of underperformance, even as Bitcoin consistently hit new peaks.
The U.S. Securities and Exchange Commission (SEC) under the Trump administration has been shifting its stance towards crypto companies, moving from "regulation by enforcement" to less hostile engagements. This shift is evident in the regulator's recent decisions to back away from legal battles with several top crypto companies. One of the most significant cases involved Ripple Labs, where the SEC and Ripple agreed to suspend their legal appeals and pursue a negotiated resolution. Although this resolution was initially denied by a U.S. district judge, the case was eventually dropped in August, marking the end of a four-year lawsuit.
Other notable cases include Binance, where the SEC submitted a filing to dismiss its ongoing case against the crypto exchange, and Coinbase, whose lawsuit was officially dismissed by the SEC in February. The regulator also ended its investigations into NFT marketplace OpenSea, Robinhood Crypto, Uniswap Labs, and Gemini Trust, among others. In all these cases, the SEC's decisions were seen as victories for the crypto industry, with several company leaders expressing relief and optimism for the future of crypto regulation.
Google Play Store has introduced new licensing requirements for cryptocurrency wallet applications across 15 jurisdictions, including the US and EU. As reported by Rage, these new policies require developers to obtain regulatory approvals before publishing their apps on the platform. The policy applies to both custodial and non-custodial wallets and requires developers to adhere to local financial regulations to ensure a safe and compliant ecosystem for users. In the US, this includes registering with FinCEN as a Money Services Business (MSB) and obtaining state money transmitter licenses, or operating as federally or state-chartered banking entities.
However, the report pointed out that Google's new requirements go beyond the current legal obligations for non-custodial wallets. FinCEN's 2019 guidance on Convertible Virtual Currencies differentiates between "hosted" custodial and "unhosted" non-custodial wallets, stating that non-custodial wallets do not qualify as money transmitters under existing regulations. The compliance programs required of MSBs represent a significant cost burden for financial institutions and could effectively exclude most non-custodial wallet developers from the Play Store. The policy also imposes Anti-Money Laundering and Know Your Customer requirements on all non-custodial wallets available through standard Google devices.
The policy has drawn criticism from industry experts, including Consensys lawyer Bill Hughes and Justin Slaughter, vice president of regulatory affairs at Paradigm. Hughes highlighted the policy inconsistencies and lack of clear definitions, while Slaughter criticized the policy as problematic given Google's ongoing antitrust litigation and referenced pending congressional legislation that suggests "pure coding should not require a federal license".
Cryptocurrency exchange Bullish experienced a significant surge in its stock on its first trading day on August 13, tripling the company's IPO price and indicating a resurgence in investor interest in digital asset firms on public markets. The stock, trading under the symbol BLSH, opened at $37 and reached an intraday high of $118 before settling near $84 in the afternoon, marking a gain of approximately 126% from its offering price. Based on the share count in its regulatory filings, Bullish's market capitalization was estimated at around $12.2 billion. The exchange primarily serves institutional clients, providing spot markets and derivative products linked to cryptocurrencies.
Bullish's successful debut adds to a series of positive crypto listings this year, with more anticipated in the upcoming months. For instance, Circle, the issuer of the USDC stablecoin, saw its shares triple on their NYSE debut in June, reaching a peak of $299 before settling near $153. Similarly, trading platform eToro gained nearly 30% on its first day on the Nasdaq in May. Bullish CEO Tom Farley, a former NYSE president, has stated that the company's decision to go public is a reflection of what it perceives as the next growth phase for the digital asset industry. Despite initial plans to list in 2021 through a $9 billion merger with Far Peak, a special purpose acquisition company, the deal was abandoned amid a market slump and a series of crypto sector bankruptcies. However, market sentiment has since improved, coinciding with a friendlier regulatory environment after the Trump administration rolled back several high-profile regulatory enforcement actions against crypto firms.
Venture capital firm Andreessen Horowitz (a16z) and the DeFi Education Fund have called on the US Securities and Exchange Commission (SEC) to establish a "Safe Harbor" program for decentralized application (dApp) trading platforms. In a letter to SEC Commissioner Hester Peirce, the groups argued that a clear regulatory framework would prevent builders of non-custodial interfaces from being classified as broker-dealers under current securities laws. They believe that a safe harbor would offer essential regulatory clarity to developers and ensure they can build in the US without fear of misapplying laws unsuitable for modern software infrastructure.
The proposal focuses on apps that serve as technical infrastructure, allowing users to initiate blockchain transactions and interact with smart contracts. Under these guidelines, users would execute transactions independently, without taking custody of assets or soliciting investments. The dApps would need to operate on non-custodial, permissionless blockchain networks or smart contracts. Both a16z and the DeFi Education Fund argue that these criteria would set expectations for developers and reduce accidental violations. They also emphasized that decentralization happens in stages, and if regulators impose strict rules too early, it could lead to rushed changes, security gaps, or a complete halt in progress. Therefore, they urged the regulator to provide concessions to platforms actively moving towards decentralization.
The article titled "Historic Test Ahead: Ethereum Nears Its All-Time High Amid Retail Sell-Offs" is a personal narrative by Godspower Owie, a crypto enthusiast and employee of Bitcoinnist and NewsBTC news outlets. Owie shares his life journey, from his upbringing in Edo State, Nigeria, to his current position in the cryptocurrency world. He credits his parents and siblings for their unwavering support and guidance, which have been instrumental in his personal and professional growth.
Owie's interest in cryptocurrency was sparked three years ago when a friend shared his successful investment experience. Despite the market's volatility, Owie's passion for the field has remained steadfast, driven by his belief that growth leads to excellence. He also speaks highly of his colleagues, whom he describes as the best he has ever worked with, and expresses his commitment to contributing to the growth of the companies he works for.
In addition to his professional pursuits, Owie enjoys exploring new places, learning new things, and meeting new people. He also has a passion for football and other creative activities such as singing, dancing, and fashion. Owie values his time, work, family, and loved ones above all else and is determined to achieve his dreams. He aspires to be a boss someday, acknowledging the challenges that lie ahead but expressing confidence in his ability to overcome them with the support of his family, friends, and faith.
Solana (SOL) has seen a significant surge of 12% in the past 24 hours, briefly reaching the $200 mark. This increase is attributed to a combination of institutional adoption and tokenization milestones. Key among the institutional adopters is DeFi Development Corp (DDC), which now holds over 1.3 million SOL, valued at nearly $250 million. This aggressive treasury strategy earns DDC $63,000 daily in staking rewards, highlighting Solana's staking advantage over non-yielding assets like Bitcoin. In August, DDC added 4,500 SOL to its reserves, a move partly fueled by a $122.5 million convertible debt raise managed by Cantor Fitzgerald.
Adding to the positive outlook for Solana, CMB International, one of Asia's largest asset managers, announced the tokenization of its Hong Kong–Singapore Mutual Recognition Fund on Solana via DigiFT and OnChain. Furthermore, the potential approval of Solana ETFs within the next two months could serve as a significant catalyst for the cryptocurrency. Nate Geraci, President of NovaDius Wealth Management, revealed that the SEC is reviewing over 75 crypto ETF applications, with a streamlined approval framework in place for assets like Solana, XRP, and Cardano. Crypto ETFs have already attracted $26 billion in inflows this year, indicating strong investor confidence. If approved, a Solana ETF could potentially accelerate the rally toward—and beyond—$250.
Keshav, a senior writer at NewsBTC, has been with the website since June 14, 2021. He has a diverse writing background, having worked in a variety of niches, but has spent the longest time in the cryptocurrency industry. Keshav holds a bachelor's degree in Physics from the University of Delhi, but his plans for a career in Physics were disrupted by the COVID-19 pandemic. The shift to online classes allowed him more free time, which he used to explore other passions, including writing.
Keshav's interest in blockchain and its concepts began in 2020, and he has been particularly drawn to on-chain analysis. His background in science influences his writing style, as he prefers to explain the indicators he discusses in detail to ensure clarity and consistency for his readers. Despite focusing on his writing career, Keshav maintains his passion for Physics and plans to pursue a master's degree in the field out of personal interest.
In addition to his professional pursuits, Keshav is an avid football fan and player, enjoys anime and video games, and is dedicated to fitness. He has even become a semi-professional player in EA FC, an online game, due to his intense focus. Keshav also taught himself Japanese, a skill he has used professionally for translation jobs. His fitness routine includes agility and acceleration-related workouts, influenced by his love of football, as well as a traditional strength-based gym program.
Google Play Store is set to ban non-custodial cryptocurrency wallets unless their developers possess a FinCEN, state banking, or MiCA license. This new policy will effectively eliminate non-custodial wallets from the Google Play Store in the European Union, where MiCA applies. The policy extends to 15 jurisdictions, including the US and EU, and does not differentiate between custodial and non-custodial wallets.
In the United States, developers are required to register with FinCEN as a Money Services Business and as a state money transmitter or operate as a bank. In the European Union, they must secure a MiCA license as a crypto-asset service provider. Critics argue that these rules surpass legal requirements, pointing out that FinCEN's 2019 guidance excludes non-custodial wallets from money transmitter licensing. This change could result in the removal of most non-custodial wallet apps from the Play Store, compelling them to implement AML/KYC compliance despite not holding user funds.
MetaMask, an Ethereum-based wallet boasting over 30 million monthly active users, is gearing up to launch its own US dollar-pegged stablecoin, mUSD, by the end of August. According to a CoinDesk report, the announcement of the new stablecoin is expected later this week. The mUSD project was inadvertently revealed last week through a prematurely posted governance proposal, which was subsequently deleted. MetaMask is developing the mUSD in collaboration with Bridge, a stablecoin payments infrastructure firm acquired by Stripe earlier this year, and issuance protocol M^0. Blackstone is set to provide custody and treasury management services for the token.
The mUSD launch is a part of a larger shift in the US regulation of stablecoins, following the July passage of the GENIUS Act. This legislation established the first federal framework for stablecoins, mandating 1:1 reserves in high-quality liquid assets such as US Treasuries, monthly public reserve attestations, and full AML/KYC compliance. The regulatory clarity provided by the GENIUS Act has spurred a wave of corporate stablecoin initiatives, including MetaMask's mUSD.
A data breach at FTX has resulted in the exposure of the names and emails of the platform's creditors. The leak has been exploited by scammers who are sending phishing emails that appear to be from FTX. These fraudulent emails falsely confirm successful identity verification and attempt to lure recipients into clicking on malicious links that could lead to credential theft or malware installation. The phishing attempts are targeting claimants ahead of the next round of creditor payouts.
Sunil Kavuri, a known FTX creditor activist, issued the warning about the data leak. FTX and FTX Recovery Trust are set to distribute $1.9 billion to creditors on September 30, following a reduction of the disputed claims reserve from $6.5 billion to $4.3 billion by the Bankruptcy Court. This will be the third major payout, with previous distributions of $1.2 billion and $5 billion made earlier in the year. The upcoming distribution excludes creditors from certain countries, such as China, where their claims have yet to be approved. Creditors are being advised to access claim portals only through official URLs to avoid falling victim to these scams.
