JPMorgan says SEC view of digital assets as securities skews regulation and more
From AGIX to ANW: Will the incredible surge of AI tokens this year be sustained going forward?
The popularity of AI tokens in the cryptocurrency market has unexpectedly increased since January, with the collapse of Sam Bankman-Fried founded FTX last year killing all hopes for 2023.
> Still, the market has shown resilience, with Bitcoin starting the year around $16,500 and breaking through the $25,000 ceiling just last week, reaching a peak of $24,345 on February 16.
> Likewise, Ether remained just below the $1,750 mark, peaking at $1,752 on February 16.
> Meanwhile, AI-based tokens such as SingularityNET, Anchor Neural World and GNY are three of the most successful tokens on the market, and they are all AI-based.
JPMorgan report predicts increased SEC regulation for digital assets
The Securities and Exchange Commission (SEC) has a dominant position in the US when it comes to regulating the digital asset space, according to a recent research report by JPMorgan
> The report highlights the SEC’s bias in viewing most cryptocurrencies as securities, with Bitcoin being the only exception.
> This view extends to staking services, which the SEC views as offering any other type of security.
> The report predicts that stablecoin issuers, custody and protection of investors’ digital assets, and separation of broker/dealer/lending/clearing/custodial activities will face increased regulatory actions.
> The bank also expects regular disclosure, reporting and auditing of reserves, assets and liabilities across major crypto entities.
Bankman-Fried’s latest indictment alleges illegal straw donor scheme for political influence campaign
Sam Bankman-Fried, the founder of FTX, is facing new charges in a federal indictment accusing him of engaging in conduct that led to the collapse of the exchange.
> The indictment, unsealed Thursday, includes 12 criminal counts, up from the previous eight, and includes charges of conspiracy to operate an unlicensed money transmission business and conspiracy to commit bank fraud.
> According to the indictment, Bankman-Fried was also involved in a straw donor scheme to avoid public reporting of his political contributions.
> The indictment accuses him of using clients’ funds to run a $40 million political influence campaign.
> “To avoid certain contributions being publicly reported in his name, Bankman-Fried conspired to and had certain political contributions made in the names of two other FTX executives,” the indictment alleges.
Unlocking curated music: Spotify’s NFT pilot program
Popular music streaming service Spotify is experimenting with a new feature called “token-enabled playlists” that allows non-fungible token (NFT) holders to connect to their wallets and listen to curated music playlists.
> The service is currently in a three-month test phase and is only available to holders within the Fluf, Moonbirds, Kingship and Overlord communities.
> During the trial period, curated playlists will be updated frequently and community members can only access them via a unique link.
> Kingship, a metaverse band signed to Universal Music Group, has released a special playlist that can only be accessed by Kingship keycard NFT holders.
Three Arrows Capital’s liquidators to sell NFTs to raise money
The liquidators of Three Arrows Capital, a now-defunct hedge fund, have announced plans to sell some of the firm’s non-fungible tokens (NFTs) as part of their recovery efforts.
> In an announcement published on Wednesday, Christopher Farmer, CEO of Teneo, stated that “the purpose of the sale is to realize the value of the NFTs for the purposes of the liquidation.”
> Sales will begin after March 23, Bloomberg reported.
> While the announcement did not reveal which NFTs would be up for sale, it clarified that the “Starry Night” portfolio, an NFT-focused fund created by Three Arrows’ co-founders Su Zhu and Kyle Davies during cryptomania in 2021, will not be included in the sale.
Solana’s technical advantages could help it emerge stronger from the turmoil in the crypto market
> The Solana community was as surprised as the broader market by the collapse of FTX, given the network’s historical relationship with the now-defunct exchange.
> Still, Solana’s founder Anatoly Yakovenko believes that the blockchain’s “perceived links” with FTX have historically been overstated.
> From a technical perspective, the fundamental value proposition of the Solana protocol remains intact.
> Solana is optimized for high throughput, minimal costs and natural scalability, making it a “legitimate differentiated approach within the layer 1 landscape,” according to Coinbase analyst Brian Cubellis.
IMF warns of monetary policy implications over widespread crypto adoption
The International Monetary Fund (IMF) has called for a coordinated global response to the risks posed by cryptoassets.
> In a board paper, the IMF set out a nine-element framework to guide members in developing a comprehensive, consistent and coordinated policy response.
> The paper addressed concerns about the risks and benefits of cryptoassets and operationalizes the principles outlined in the Bali Fintech Agenda.
> The use of crypto-assets in some countries, their extraterritorial nature and increasing interconnections with the financial system were cited as reasons for the framework.
> Board members largely agreed that crypto assets have policy implications that lie at the core of the fund’s mandate. They noted serious concerns about financial stability, financial integrity, legal risks, consumer protection and market integrity.
Crypto Markets Struggle Amid Financial Uncertainty: Bitcoin Holds $24K, Ether Up 2.1%
On Thursday, Bitcoin experienced a drop but later rebounded near $24,000 as investors analyzed the minutes of the Federal Open Market Committee (FOMC) meeting earlier this month, along with the latest economic data.
> Despite ongoing macroeconomic uncertainty, the largest cryptocurrency by market capitalization managed to register a 0.5% gain from Wednesday, although it was down from its weekly high of over $25,000.
> Meanwhile, Ether (ETH), the second largest cryptocurrency, rose 2.1% and recently traded at $1,650.
> The CoinDesk Market Index, which reflects the overall performance of the crypto market, registered a 1.1% increase for the day.
