“With an advance during the early afternoon Eastern time, bitcoin (BTC) briefly rose above $19,000, up more than 7% for the day and at its highest level since it was gapping down in early November as crypto exchange FTX imploded. Bitcoin is now up about 14% this year after falling 63% in 2022.
Meanwhile, shares of crypto exchange Coinbase (COIN) were up 4% in recent trading. They have risen 35% year to date. The moves in the stocks of bitcoin miners are even more dramatic: Marathon Digital (MARA) is up 16% Thursday and 83% year to date, and rivals Riot Platforms (RIOT) and Hut 8 Mining (HUT) have notched similar gains. Grayscale Bitcoin Trust (GBTC) – whose discount to net asset value (NAV) widened to nearly 50% toward the end of 2022 – is up 12% for the session, and has now narrowed its discount to NAV to 36.4%.
The Consumer Price Index rose 6.5% in December from a year earlier, inline with expectations and down from a 7.1% increase in November. The slower pace of inflation will likely pave the way for the Federal Reserve to ratchet down its pace of rate hikes to 25 basis points per meeting.”
“U.S. House Republicans plan to set up a crypto committee in a move that signals the GOP wants to make crypto oversight and legislation a priority. McHenry told Politico the panel will be responsible for providing clear rules for federal regulators, as well as creating policies that allow financial technology to reach underserved communities.
We’ve got to respond for oversight and policymaking on a new asset class.
The new subcommittee on digital assets, financial technology and inclusion will be chaired by Rep. French Hill (R-Ark.), who has investigated the viability of a central bank digital currency. The vice chair of the subcommittee will be Rep. Warren Davidson (R-Ohio), who has also been active on crypto issues.”
“Digital Currency Group might sell assets from its venture portfolio to come up with funds to help Genesis, its wholly-owned subsidiary, cover a $3 billion shortfall, according to a report on Thursday from the Financial Times. The portfolio is worth about $500 million.
That means DCG’s stakes in more than 200 crypto projects—including data firm Dune Analytics, Ethereum block explorer Etherscan, crypto exchange Coinbase, and USD Coin issuer Circle—could soon be up for sale.”
“The investment regulator took aim at Gemini Earn, the troubled yield-bearing product that hundreds of thousands of U.S. investors entrusted with their crypto. Gemini generated yield on billions of dollars in crypto by loaning deposits to Genesis, which loaned them out again.
Defendants offered and sold the Gemini Earn Agreements through the Gemini Earn Program without registering with securities regulators. As a result, investors lacked material information about the Gemini Earn program that would have been relevant to their investment decisions.
The lawsuit is the latest twist in a high-stakes CEO battle pitting the Winklevoss twins of Gemini against Barry Silbert, head of DCG.”
“Sam Bankman-Fried, the disgraced former chief of FTX, denied stealing funds and claimed FTX and sister company Alameda Research collapsed because of the crypto market meltdown and inadequate hedging on Alameda’s part. In three instances in his note, Bankman-Fried called an announcement by crypto exchange Binance to withdraw funds from Alameda in early November that set off a run on the FTX exchange a “targeted attack.”
While casting the blame of FTX’s downfall on Alameda’s poor hedging, Bankman-Fried notably didn’t address the $65 billion line of credit he opened from the exchange to the trading arm, as revealed in a court hearing on Wednesday. At the hearing, a lawyer representing FTX in its Chapter 11 bankruptcy proceedings said the credit line has led to a “shortfall in value” in repaying customers and creditors.
He also said he plans to use nearly all his personal assets to help customers who lost money and says he has “offered to contribute nearly all” of his personal Robinhood Markets (HOOD) shares to customers. Meanwhile, court filings show Bankman-Fried seeking to retain control of the roughly 56 million Robinhood shares (worth around $450 million) to pay his legal fees. The disputed shares have since been seized by the Justice Department.”
“You don’t need a sash to walk around dressed as cash.
El Salvador became the first country in the world to make Bitcoin legal tender in 2021.”