👀 CFTC Chair Says 70% Of Cryptocurrencies Aren't Securities

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Rostin Behnam, the chair of the CFTC, told the U.S. Senate that at least 70% of cryptocurrencies do not comprise commodity assets. The move suggests the CFTC is looking to assert greater regulatory jurisdiction over the crypto sector.

The news coincides with the SEC dropping an investigation into Paxos and its BUSD stablecoin. This follows a U.S. federal court ruling the BUSD is not a security asset two weeks ago.

Digital assets continue to recover after the violent weekend sell-off. The markets were buoyed by U.S. inflation dropping to a three-year-low, signaling that an interest rate reduction may be just around the corner.

Plus, BitMEX pleads guilty to Bank Secrecy Act violations, Lyra Finance offers leveraged USDe exposure, and Starkware proposes a STRK staking.

✍️ In today’s newsletter:

Most digital assets aren’t securities: CFTC chairman
SEC abandons Paxos and BUSD investigation
Crypto bulls react to multi-year inflation low
BitMEX pleads guilty to AML violations
Lyra integrates USDe for leveraged vault
Starknet staking proposal

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🎉CFTC Chair Asserts At Least 70% of Crypto Assets Are Not Securities

The CFTC chairman believes between 70% and 80% of cryptocurrencies do not comprise securities, in stark contrast to the SEC. The comments were delivered to the U.S. Senate, and accompanied by calls for lawmakers to grant the CFTC extended authority to oversee digital assets, including spot markets.

🔎SEC Drops Investigation into Stablecoin Issuer Paxos

The U.S. Securities and Exchange Commission has bailed on its investigation into Paxos and its BUSD stablecoin. The move came just two weeks after a U.S. federal judge tossed SEC charges against Binance concerning BUSD sales.

🚀Crypto Markets Surge On Inflation Hitting Three-Year Low

Digital assets continue to recover from the weekend’s violent sell-off, with crypto bulls on parade in response to inflation dropping to multi-year lows. The data is the latest signal suggesting that the Federal Reserve may soon cut interest rates.

⚖️BitMEX Pleads Guilty to Bank Secrecy Act Violations

BitMEX, the once-dominant crypto derivatives exchange, has pleaded guilty to failing to establish an effective anti-money laundering program while operating in the United States. The move could carry prison time and heavy fines for the company and its executives, and is the latest in a string of admissions to U.S. prosecutors from BitMEX.

🆕Lyra Finance Offers Leveraged Exposure to ETH Through Ethena

Lyra Finance, a yield protocol in the Synthetix ecosystem, has launched a vault product offering leveraged exposure to Ethena’s yield-bearing USDe stablecoin. The product seeks to offer boosted yield during bullish ETH uptrends while forfeiting returns as the price of Ether dips.

🗳️Starkware Introduces Proposal For Staking on Starknet by End of Year

Starkware, the team behind the StarkNet Layer 2, launched a governance proposal advocating for the introduction of a staking mechanism on the network. The plan includes a staged rollout intended to deliver staking by 2025.

🌍 ELSEWHERE

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Hacks, Rug Pulls Cost BNB Chain $1.6B Since Inception: Immunefi (CoinDesk)
50% of Illicit Funds End Up At Centralized Crypto Exchanges: Chainalysisl (Unchained)