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A wave of crypto ETFs is anticipated for approval in 2025, with firms like Hasdex, Franklin Templeton, and Bitwise Invest leading the charge for Bitcoin and Ethereum ETFs. However, complex legal issues regarding token classifications may complicate the process, particularly for Solana and XRP.The incoming Trump administration, with Paul Atkins likely as the new SEC chair, is expected to foster a more crypto-friendly regulatory environment, potentially enhancing institutional adoption of digital assets. The CFTC may also play a role in regulating certain crypto assets, further shaping the landscape.
Deutsche Bank is developing an Ethereum layer 2 solution using ZKsync technology to enhance transaction efficiency and address regulatory challenges for financial institutions on public blockchains. This initiative, part of Project Dama 2 and linked to Singapore’s Project Guardian, aims to create a secure environment for banks by allowing them to customize validators and provide regulators with oversight capabilities. A minimum viable product is expected next year, pending regulatory approval.
The cryptocurrency market has surged 65% since November, fueled by optimism for regulatory clarity under the incoming Trump administration. Analysts suggest that a pro-crypto Congress and key appointments could lead to a more legitimate future for digital assets, although significant reforms may take 9-12 months to materialize. As exchanges expand offerings and traditional finance eyes crypto integration, the landscape may shift from speculation to a cornerstone of financial innovation.
By the end of 2025, the US cryptocurrency landscape is poised for significant change, driven by Republican leadership and anticipated regulatory clarity that will foster innovation. As over 80 countries explore Central Bank Digital Currencies (CBDCs), the UK is leading with a regulated platform for digital currencies, while the US is expected to adopt a more favorable regulatory stance under the incoming Trump administration. Increased institutional trading activity and the need for robust infrastructure will shape the market, alongside a push for global regulatory coordination to ensure financial stability.
Tether is solidifying its position in Europe's stablecoin market, moving an average of $40 million daily to exchanges as the MiCA regulations approach. Despite Coinbase's delisting of USDT for European users, other major exchanges continue to support it. Tether's investment in StablR, a compliant stablecoin issuer, highlights its commitment to regulatory adaptation and innovation, with StablR's MiCA-compliant stablecoins enhancing liquidity and accessibility in the growing European market.
Donald Trump delivered a goodwill speech at the Washington Crypto Policy Summit, emphasizing the U.S. government's commitment to becoming a global leader in cryptocurrency. He assured attendees that the U.S. aims to retain its crypto business domestically, rather than allowing it to shift to countries like China. The summit featured participation from Congress members and industry leaders, focusing on crucial legislative areas such as decentralized infrastructure, stablecoins, and DeFi. A presentation highlighted that 70% of crypto investors considered candidates' digital asset policies in the last election, with 25% of voters owning crypto.
MiCA-compliant stablecoins are rapidly gaining market share in Europe, with euro-denominated trading volumes consistently surpassing 2023 averages, peaking at over $42 billion monthly. Despite Tether discontinuing its euro-pegged stablecoin, euro-backed stablecoins like Circle’s EURC and Societe Generale’s EURCV collectively held 91% of the market by November 2024. Binance has emerged as a key player, nearly matching Coinbase's market share after listing EURI.
Binance has announced the delisting of WazirX (WRX), Kaon (AKRO), and Bluzelle (BLZ) tokens, leading to significant price drops of 40%, 25%, and 24%, respectively. The exchange cited failure to meet high standards in development activity, trading volume, and regulatory compliance as reasons for the decision. Users are advised to close positions and manage holdings before key deadlines, with trading pairs set to be removed on December 25, 2024.
Beatrice Bösiger, originally from Burgdorf (BE), has an academic background in German, Philosophy, and Cultural Studies from institutions in Bern, Zurich, and Vienna. She served as an editor for Wirtschaftsblatt in Austria and was a correspondent in Moscow from 2012 to 2016, focusing on business and politics in Russia, Ukraine, Belarus, and Central Asia. Since 2018, she has been an editor at Finanz und Wirtschaft, specializing in banking, insurance, private markets, cryptocurrencies, and fintech, and recently joined the NZZ business department in October 2024.
An analyst from VanEck predicts the establishment of a US strategic Bitcoin reserve next year, likely through executive action rather than Congressional legislation. This reserve could involve reclassifying the 200,000 Bitcoin already owned by the government. Additionally, states like Pennsylvania, Florida, or Texas may also pursue their own reserves.
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