Top stories of this week
SEC Chair Atkins calls for “Reshore Crypto” as businesses return to the US
Crypto companies are gradually making their way back to the US, with leaders expressing optimism about new regulations and an emphasis on domestic development.
Speaking at the American First Policy Institute, SEC Chairman Paul Atkins mentioned the idea of “reshoring” crypto businesses and supported former President Donald Trump’s vision of the US becoming a central hub for digital assets.
Treasury Secretary Scott Bescent shared that the US is now in the “golden age of crypto,” urging innovators to establish their ventures domestically and hire local talent.
With enhanced regulations and strong political backing, crypto firms are starting to respond positively. Companies like Kraken and MoonPay are broadening their operations as policies shift.
US SEC to launch “Project Crypto” to update rules for digital assets
SEC Chair Paul Atkins has unveiled Project Crypto, an initiative aimed at overhauling regulations for digital finance and clarifying the rules for US digital assets.
Atkins noted that this initiative is a direct response to a recent report from the president’s working group on the digital asset market.
He suggested easing licensing requirements so that various asset classes provided by brokerage firms could operate under a single license, thus creating a clearer market structure distinguishing cryptocurrencies from securities.
Atkins emphasized that regulatory exemptions should guarantee ample space for innovation without stifling new projects.
99% of CFOs plan to utilize cryptocurrency long-term, with 23% looking to adopt in two years: Deloitte
According to research from CFOs in the second quarter, cryptocurrency is becoming a key area for financial planning. Notably, 99% of CFOs from billion-dollar companies anticipate long-term usage.
The survey of 200 CFOs revealed that 23% expect to incorporate cryptocurrency into investments or payments within two years, a number that rises to nearly 40% among CFOs in firms earning over $10 billion.
Yet, despite the positive outlook, concerns linger. Respondents highlight price volatility as the primary obstacle, with 43% naming it a barrier to adopting cryptocurrencies like Bitcoin and Ether.
Other significant worries include accounting complexities (42%) and regulatory unpredictability (40%), further complicated by evolving US policies.
UK regulators lift ban on crypto ETNs for retail investors
The Financial Conduct Authority (FCA) in the UK has lifted the ban on retail access to cryptocurrency Exchange Traded Notes (CETNs).
This change allows UK firms to quickly provide retail consumers with CETNs, as announced by the FCA on Friday.
This regulatory shift follows a previous ban imposed in January 2021, which cited extreme volatility and a perceived lack of necessity for retail investments in crypto assets.
David Geale, the FCA’s executive director for payments and digital finance, remarked that since the ban, the market has evolved, and products are now more widely understood.
CoindCX employee arrested in connection with $44 million crypto hack
Reports indicate that a CoindCX employee, linked to a $44 million hack in July, has been arrested in India.
Rahul Agarwal, a software engineer at CoindCX, was detained by Bengaluru police after allegedly compromising his login credentials to access company assets. The Times of India reported this on Thursday.
This arrest came after a complaint and internal investigation, which revealed that Agarwal had used his work laptop to gain unauthorized access to company servers.
Although Agarwal denied any wrongdoing regarding the theft of the code, he acknowledged having part-time commitments to multiple clients while working at CoindCX.
Winners and losers in the crypto market
At the week’s end, Bitcoin (BTC) was valued at around $113,936, while Ether (ETH) stood at $3,527 and XRP at $3.01. According to Coinmarketcap, the overall market capitalization reached $3.71 trillion.
Among the top 100 cryptocurrencies, notable gains included shape, rising by 12.96%, Toncoin by 11.49%, and story by 10.00%.
The biggest losers were Fartcoin, down 30.55%, followed by Bonk at 28.08%, and Virtual Protocol at 23.03%. Further insights can be found in the Cointelegraph Market Analysis.
Memorable quotes
Ted Pillow, Crypto investor and entrepreneur: “I think BTC could surpass this level next month. This will start the next leg.”
Ray Dario, Founder of Bridgewater Associates: “[If] We were optimizing our portfolio for risk-to-risk ratios, we would probably hold around 15% in gold or Bitcoin.”
Defi Investor, Crypto Analyst: “Stablecoins are a product that can be mounted on the chain for the first billion people.”
Bank with Standard Chartered: “I think they [Ether treasury firms] will ultimately own 10% of all ETH, which could increase tenfold from current holdings.”
Von Le, CEO of Strategy: “We are using some of the most innovative technologies and assets in human history. Meanwhile, we might be the most misunderstood and undervalued stocks, both in the US and globally.”
Joe Rubin, CEO of Consensys: “We believe that with every fully diluted share, we can acquire more Ether.”
Top forecast of the week
XRP may be gearing up for a short-term rebound, with a 20% chance of increasing in price by the end of August.
Technical analysis on a four-hour candle chart shows bullish divergence—a sign that indicates a potential reversal. In this case, while XRP has hit lower lows, momentum indicators show a higher low, suggesting diminishing selling pressure.
Top FUD of the Week
Crypto hacks lead to major losses for CoindCX, totaling $142 million in July
Throughout July, nefarious actors stole at least $142 million from the crypto space in 17 separate incidents.
According to blockchain security company Peckshield, monthly losses rose by 27% compared to June’s $111 million.
Despite this increase, the figure is a significant drop of 46% from the previous year when hackers stole $266 million. The most notable incident involved a $230 million breach related to India’s crypto exchange Wazirx.
Tornado Cash co-founder awaits court decision after closing arguments
The judge is set to determine the fate of Rome Storm, co-founder of the cryptocurrency mixing service Tornado Cash, after both sides concluded their arguments on Wednesday.
This final stage involves summarizing the case and persuading the judge before deliberations commence.
Storm is on trial in Southern New York, where the outcome could set important precedents regarding the responsibilities of developers for the misuse of decentralized software.
The US prosecutors allege that Storm conspired to launder money, violated US sanctions, and operated an unauthorized money transfer service. If found guilty, he faces up to 40 years in prison.
Indonesia implements tax hikes for crypto traders and miners
The Indonesian government has raised tax rates for traders and miners in an update to the crypto industry’s tax policy, while removing value-added tax obligations for buyers.
On Monday, the Ministry of Finance released regulatory updates addressing tax compliance and rates, which will take effect on August 1.
As reported by Reuters, the new framework increases the income tax on cryptocurrency sales from domestic exchanges from 0.1% to 0.21%.
It also significantly hikes taxes on sales made through foreign exchanges, raising them from 0.2% to 1%.
This week’s top magazine story
ZK Tech: Ethereum’s Roadmap to 10,000 TPs — A Guide for Beginners
This article covers everything needed to understand ZKEVMS and the real-time capabilities essential for Ethereum’s expansion to meet global demands.
China’s shifting crypto policies, new Telegram Dark Markets: Asia Express
A recent 30-minute television special from China discusses the country’s infrastructure and its struggles with US crypto regulations, while highlighting the rise of dark markets on Telegram.
Training AI to love owls… or perhaps Hitler? Meta + AI news
Researchers have found that AI systems can encode secret messages, some leading to unusual outcomes, like a fondness for owls or more controversial figures. This week also features various quirky stories related to AI.
