CoinDesk Weekly Recap: A Busy Week for Crypto
Regulatory Developments
The new Trump Administration’s pro-crypto agenda continued to take shape, with the industry laying the groundwork for growth in the new cycle.
Ripple in the Spotlight
Ripple was at the center of the news, with Ondo Finance announcing that it would offer tokenized treasuries on Ripple’s XRP Ledger. Additionally, XRP Ledger will offer clawback features, enhancing liquidity for Ripple’s dollar-pegged stablecoin RLUSD (Shaurya Malwa).
Brad Garlinghouse’s Plea
CEO Brad Garlinghouse lobbied for XRP to be included in any national crypto reserve, sparking controversy among Bitcoin enthusiasts who believe the reserve should be bitcoin-only (Omkar Godbole). Godbole also provided incisive market analysis in his daily update, which is a must-read.
Protocol Updates
Cardano rolled out a hard fork ("Plomin"), enabling decentralized governance. Meanwhile, Avalanche announced that its December upgrade resulted in a 75% drop in transaction costs for users, a significant win for the project. Movement Labs unveiled a developer mainnet ahead of a much-anticipated L1 launch in February.
Stablecoins Surge Past $200 Million Market Cap
Stablecoins, the most traded form of crypto, surged past a $200 million market cap. Tether, issuer of the leading stablecoin USDT, announced a $13 billion profit for 2024, a healthy stockpile for further investments (Sandor). At the same time, Howard Lutnick, the administration’s pick for Commerce Secretary, defended Cantor Fitzgerald’s custodial relationship with Tether during a Senate hearing.
MicroStrategy and Grayscale
MicroStrategy, which pioneered the idea of corporate bitcoin treasuries, added to its bags and outlined plans to raise more capital (James Van Straten). Grayscale opened a new closed-end fund trust offering exposure to dogecoin, stating that the memecoin, which was started as a joke in 2013, had become a tool for global financial inclusion.
ETFs and Exchanges
Bitwise won SEC approval for a combined bitcoin-ether ETF and filed an application for a dogecoin ETF (Helene Braun). Grayscale opened a new closed-end fund trust offering exposure to dogecoin.
Regulatory and Policy News
Solana’s memecoin powerhouse, Pump.fun, was hit with a class-action lawsuit alleging securities violations (Cheyenne Ligon). French authorities expanded a money laundering and tax probe against Binance. Robinhood CEO Vlad Tenev joined BlackRock’s Larry Fink in calling for tokenized equity. Jesse Hamilton, deputy managing editor for regulatory, reported on the continued success of Fairshake, an industry SuperPAC.
FTX Founder’s Parents Seek Presidential Pardon
The parents of disgraced FTX founder Sam Bankman-Fried announced that they are seeking a presidential pardon, citing the recent pardon given to Silk Road founder Ross Ulbricht. However, as Shaurya Malwa noted, the cases are very different, and Joseph Bankman and Barbara Fried likely face an uphill task.
Conclusion
It’s been an interesting few days in crypto, with many developments shaping the future of the industry. We will continue to keep you updated on the latest news and trends in the world of cryptocurrency.
FAQs
- What are the key takeaways from the past week in crypto?
- Ripple’s XRP Ledger will offer clawback features, enhancing liquidity for RLUSD
- Brad Garlinghouse lobbied for XRP to be included in any national crypto reserve
- Cardano rolled out a hard fork, enabling decentralized governance
- What is the current market cap of stablecoins?
- Over $200 million
- What is the latest development in the FTX saga?
- The parents of Sam Bankman-Fried are seeking a presidential pardon, citing the recent pardon given to Ross Ulbricht
