Here’s a quick crypto market recap for your morning commute. The US regulatory agencies are furthering their actions to regulate crypto. Furthermore, Metaplanet is investing a huge sum in cryptocurrency. While these sentiments are bullish, it is also important to note that crypto scams have increased over the last quarter.
US Regulators Align on Spot Crypto Trading Oversight
On Tuesday, the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) released a joint staff statement outlining a collaborative approach to regulate and facilitate spot cryptocurrency trading in the United States.
The agencies confirmed that current regulations do not prohibit US or foreign regulated exchanges, such as national securities exchanges (NSEs), designated contract markets (DCMs), or foreign boards of trade (FBOTs), from offering spot crypto products, including those with leverage and margin features.
The statement noted, “The Divisions affirm that DCMs, FBOTs, and NSEs are permitted to facilitate trading of certain spot crypto asset products. Market participants are encouraged to consult with SEC or CFTC staff as needed.
This development aligns with recommendations from the President’s Working Group on Digital Asset Markets, which emphasized the need for regulatory clarity to foster blockchain innovation within the US.
The regulators are prepared to review exchange filings, address inquiries on custody and clearing, and ensure compliance with standards for transparency, market surveillance, and investor protection.
The SEC and CFTC invited market participants to engage with their staff for guidance on proposals or inquiries.
Metaplanet Secures Approval for $3.7B Bitcoin Fundraising Plan
At the general meeting, investors approved expanding authorized shares to 2.7 billion and adopting a dual-class preferred stock system.
The structure includes Class A shares with fixed dividends for income-focused investors and Class B shares, which carry higher risk but can convert to common stock.
Japanese Bitcoin investment firm Metaplanet gained shareholder approval on Monday to restructure its capital framework. This approval will enable the firm to fundraise up to $3.7 billion and bolster its Bitcoin acquisition strategy.
Metaplanet stated this approach minimizes dilution while unlocking significant funding for its Bitcoin-focused strategy.
Crypto Hacks Surge to $163M in August Losses
In August, crypto hackers and scammers stole over $163 million across 16 attacks, with a single social engineering attack targeting a Bitcoin holder accounting for the majority of losses.
According to blockchain security firm PeckShield, this marks a 15% increase from July’s $142 million, though it’s a 47% decrease year-over-year.
Cybersecurity experts noted that the rise in losses was driven by hackers targeting high-value projects, amplified by soaring crypto prices. Bitcoin hit a new all-time high of over $124,000 on August 14, while Ether surpassed $4,946 on August 24.
