“The 125-page Financial Stability Oversight Council (FSOC) document concluded that potential fraud and manipulation in crypto trading begs for a spot market watchdog.
These latest recommendations from the group, which is led by Treasury Secretary Janet Yellen, effectively bolster the two leading efforts in crypto legislation: a bill that would put the Commodity Futures Trading Commission (CFTC) in charge of overseeing that spot market, and another that would establish rules for stablecoin issuers.
The FSOC – whose members include the heads of financial agencies, including the Federal Reserve and both the SEC and CFTC – is also preparing to recommend that U.S. regulators need to be able to reach into all corners of digital businesses. They not only need to be able to supervise a crypto firm, but also all of its affiliates and key service providers – as the Fed can do when it oversees Wall Street banks, the report will argue.
Innovation without adequate regulation could result in significant disruptions.”
“DEXs have grown faster than centralized exchanges (CEXs) over the past two years, Citigroup said in a research report Thursday. One of the main differences between DEXs and CEXs is the custody of funds, the bank said, as there is a risk in storing assets with CEXs.
One potential driver for DEX volumes in the near term is an increase in regulation, the note said. As crypto regulation develops more broadly, with expanded reporting requirements, users could begin to migrate to DEXs from “KYC-heavy CEXs,” it said.
DEXs offer distributed revenue, like dividends, to token holders and the ability to self-custody funds, the report said. Once the trading rewards are included, these exchanges have comparatively lower fees than platforms such as Coinbase Pro, Citi added.
Citi says DEXs are responsible for 18.2% of spot-trading volume, noting that volumes have remained resilient at over $50 billion a month, with total revenue of $3.6 billion in the last year. Uniswap continues to dominate, accounting for around 70% of total DEX volume, and could distribute up to $250 million to token holders if a recent governance proposal is passed.
This could mark a key pivot for a foundational DEX within the DeFi space.”
“Cathie Wood’s investment firm, ARK Investment, is making its two actively managed crypto strategies available to registered investment advisors. The ARK Cryptocurrency Strategy aims to capitalize on the monetary revolution, said the companies in the statement, claiming that it ‘could serve as a strategic allocation in well-diversified portfolios.‘
The strategies will be separately managed accounts (SMAs) designed to meet the needs of financial advisors, wealth managers, and their clients by offering direct ownership, low minimums, and portfolio reporting integration among other benefits.
ARK’s crypto asset analyst, said in the statement that ‘much of the speculative behavior has died down. The moment presents an attractive entry point for investors.'”
“Stablecoin issuer Tether has cut its commercial paper holding to less than $50 million. As of Sept. 30, the company increased its holding of U.S. Treasury bonds to 58.1% of its total portfolio from 43.5% of its total portfolio as of June 30.
Tether had earlier said that it will bring its commercial paper holdings to zero by the end of the year. In May, the company held $20.1 billion of commercial papers, which it reduced to $8.5 billion by June 30.”
“YPF, Argentina’s state-owned energy company, is supplying power to an undisclosed international crypto mining company. YPF is currently supplying power for a 1 megawatt operation and plans to launch a second project eight times larger before the end of the year.
We started to develop this generation pilot for cryptocurrency mining with a vision of sustainability and business from flare natural gas, which cannot be harnessed during exploration.”