23andMe Is a Wake-Up Call on Data Sovereignty

In all likelihood, the move by the Sei Foundation – the organization behind layer1 blockchain Sei – to buy bankrupt genetic data company 23andMe is a long-shot at best, and potentially just a publicity stunt. But, it remains an incredibly exciting idea that has got a lot of people thinking.

Were such a deal to go through, we would see a Web3 company rescue a Web2 company, which would have enormous ramifications in and of itself. Web2 tech giants are already being challenged in the area of AI by much smaller, nimble, and more flexible companies. However, the purchase of what was once one of Silicon Valley’s shiniest stars by a blockchain upstart would be a total paradigm shift.

Beyond that, a deal would be a win for public understanding for data security and privacy. While we have all been vaguely aware of how Meta, Google, Apple, etc., take and use our data, we have chosen to ignore that for the convenience it affords us.

Then there has perhaps never been such a case as 23andMe, which holds DNA and other data for 15 million people. It shows the public how vulnerable their most personal and intimate data is in the hands of centralized companies and organizations.

It’s one thing when Facebook and Instagram are tracking our shopping and consumer habits and making our sensitive messages and emails vulnerable to leaks. With 23andMe, we’re talking DNA data; the very fabric of our human bodies has just been green-flagged for sale to the highest bidder.

If Sei is not successful, which is most likely, this data can and may well be sold to health or life insurance companies. They may then be able to use this data to potentially exclude people from vital healthcare or insurance policies, thanks to the questionable way in which the U.S. healthcare system is run and its discrimination policies enforced.

Perhaps, finally, this is a turning point at which the public may seriously come to understand the importance of owning their own data. Maybe more people will realize that to keep their data truly safe, they have full control of it themselves through the use of decentralized blockchain technology.

Of course, not every blockchain is created equal. However, Sei certainly claims to be highly secure, and projects like Arweave – which is a permanent storage chain built on a “pay one store forever” model – have applications that can allow you to upload and store your data privately, securely and permanently.

These are two among a growing list of options in our industry, but the point is this: there is simply no centralized solution beyond a piece of paper stored in a Swiss security deposit box with keys buried deep in the ground that can compare. And even then, someone can dig those keys up.

This is a watershed moment for people to understand the importance of data self-sovereignty. And it comes at a time when trust in centralized organizations, companies, and even governments is breaking down. As such, the 23andMe sale could mark a true turning point in history, and one that could reshape how Web3 is seen, understood and utilized.

source https://www.coindesk.com/opinion/2025/03/31/23andme-is-a-wake-up-call-on-data-sovereignty

Bitcoin Headed Below $60K Says Hot-Handed Crypto Hedge Fund Manager

Bitcoin’s correction may just be getting started. In fact, the crypto sector as a whole could be facing a severe downtrend reminiscent of 2022.

“I could see us going back to a five handle by the end of the year,” Quinn Thompson, founder of crypto hedge fund Lekker Capital, told CoinDesk in an interview. A "five handle," i.e. a price between $50,000 and $59,999, would be down substantially from the already shaky current $83,000 level and roughly a 50% decline from bitcoin's peak just above $109,000 just more than two months ago.

“I don't think it happens quickly, which is why it would be very painful and shocking to people because nothing about the current market conditions is very volatile, with big liquidations and crashes,” Thompson added. “It's this sort of different market environment, a slow grind down that is almost more unbearable for people because they're like, ‘Is it over? Is the bottom in?’”

Thompson, who had been bearish from far higher levels, has repeatedly called the White House’s crypto announcements — be it the Sovereign Wealth Fund or Strategic Bitcoin Reserve, or anything in-between — "nothingburgers" and “sell the news” events. He has also argued that Strategy’s (MSTR) constant bitcoin buys aren’t necessarily bullish for the cryptocurrency, since they seem to be the only significant bid.

The economy’s four headwinds

Central to Thompson’s thesis is the idea that the Trump administration’s various policies will likely hurt the economy for the next six to nine months.

First, the Department of Government Efficiency (D.O.G.E), in its efforts to reduce the U.S. deficit, is bent on cutting government spending — which has been one of the largest drivers of job growth in recent years. The labour market was already wobbly when the Biden team handed over the reins to Trump, Thompson said, and the new government’s fiscal arm isn’t interested in propping things up anymore.

“People get caught up in the politics of it,” Thompson said. “We can disagree on whether we need the Department of Education or not. But those dollars were being printed and going into people's pockets, and those people spent them, and went on vacation and to the grocery store. So it was growth positive.”

Elon Musk, the main force behind D.O.G.E, said last week that he was aiming to cut $1 trillion in government spending by the end of May; he also said he wanted to cut 15% of the government’s annual spending, meaning almost $7 trillion.

Even if D.O.G.E fails its stated objective and only manages to cut, say, a hundred billion over the course of four years, the bigger cuts are likely to occur at the beginning of Trump’s term, not the end, Thompson argued. This means that D.O.G.E’s impact on the economy and consumer sentiment is likely to be felt in the coming months, no matter whether the agency actually succeeds or not.

Second, the crackdown on illegal immigration at the southern border — combined with the renewed emphasis on deportations — is bound to affect the labour market, Thompson said. Migration is growth positive because it puts pressure on wages; if that labour pool dries up, workers will demand higher salaries, which some businesses won’t be able to afford.

Thompson’s third issue is tariffs. The Trump administration keeps changing up its tariff threats on a day-to-day basis, sometimes promising new ones, sometimes calling them off, creating doubt as to whether the majority of proposed tariffs will actually ever go into effect. But the important thing about tariffs is that they create uncertainty for businesses, which may elect to delay investment or hiring decisions until the tariff situation is resolved.

Finally, the Federal Reserve doesn’t seem to be in a hurry to loosen financial conditions because inflation data hasn’t been great. The U.S. central bank cut interest by a full percentage point at the end of 2024, to 4.25%-4.5%, and even that wasn’t enough to push bitcoin above $110,000. Thompson says he expects the Fed to cut anywhere between 25 and 75 basis points in 2025, but that these cuts will be spread out in the second half of the year.

“I think there's a lot more coordination going on between the Treasury and the Fed than people want to believe,” Thompson said. “People thought Trump and [Fed chair] Powell would be bickering, but they’re actually kind of on the same team right now. [Secretary of Treasury] Bessent and Trump are bringing growth down, and that helps Powell achieve lower inflation.”

When will the bottom be?

With such headwinds working against risk-on assets like stocks and bitcoin, the crypto sector is unlikely to have a good year, Thompson said. The fact that the White House doesn’t seem overly concerned about a potential recession is also a strong signal, he said.

“Bessent is coming in saying, ‘We need to right the ship.’ And righting the ship means cutting off the juice that was powering these crazy asset prices. The direct result of their policies working is a lower stock market,” Thompson said.

But how long is Trump likely to maintain course? Until it becomes too painful and even Trump’s political base tells him to cut it out, or until the beginning of 2026 — you can’t be pushing a country into a recession with midterm elections coming up.

“I equate this to a controlled burn. They’re trying to purposefully clear the brush so that it doesn't become a bigger problem. But sometimes controlled burns become forest fires,” Thompson said. “I think it's going to be a long kind of slog through the year as they try to enact these policies.”

source https://www.coindesk.com/markets/2025/03/31/bitcoin-headed-below-usd60k-says-hot-handed-crypto-hedge-fund-manager

Innovation Amid Yield Compression: DeFi Lending Markets in Q1 2025

The first quarter of 2025 tells a clear story about DeFi's evolution. While yields across major lending platforms have compressed significantly, innovation at the market's edges demonstrates DeFi's continued maturation and growth.

The Great Yield Compression

DeFi yields have declined sharply across all major lending platforms:

The vaults.fyi USD benchmark has fallen below 3.1%, below the U.S. 1-month T-bill yield of ~4.3% for the first time since late 2023. This benchmark, a weighted average across four leading markets, approached 14% in late 2024.

Spark has implemented four consecutive rate decreases in 2025 alone. Starting the year at 12.5%, rates were cut to 8.75%, then 6.5%, and now sit at 4.5%.

Aave's stablecoin yields on mainnet are around 3% for USDC and USDT, levels that would have been considered disappointing just months ago.

This compression signals a market that’s cooled significantly from late-2024's exuberance, with subdued borrower demand across major platforms.

The TVL Paradox: Growth Despite Lower Yields

Despite falling yields, major stablecoin vaults have experienced extraordinary growth:

Collectively, the largest vaults on Aave, Sky, Ethena, and Compound have nearly quadrupled in size over the past 12 months, expanding from about $4 billion to about $15 billion in supply-side deposits.

Despite Spark's consecutive rate cuts, TVL has grown more than 3x from the start of 2025.

As yields have fallen from nearly 15% to under 5%, capital has remained sticky. This seemingly contradictory behavior reflects increasing institutional comfort with DeFi protocols as legitimate financial infrastructure rather than speculative vehicles.

The Rise of Curators: DeFi's New Asset Managers

The emergence of curation represents a significant shift in DeFi lending. Protocols like Morpho and Euler have introduced curators who build, manage, and optimize lending vaults.

These curators serve as a new breed of DeFi asset managers, evaluating markets, setting risk parameters, and optimizing capital allocations to deliver enhanced yields. Unlike traditional service providers who merely advise protocols, curators actively manage capital deployment strategies across various lending opportunities.

On platforms like Morpho and Euler, curators handle risk management functions: selecting which assets can serve as collateral, setting appropriate loan-to-value ratios, choosing oracle price feeds, and implementing supply caps. They essentially build targeted lending strategies optimized for specific risk-reward profiles, sitting between passive lenders and sources of yield.

Firms like Gauntlet, previously service providers to protocols like Aave or Compound, now directly manage nearly $750 million in TVL across several protocols. With performance fees ranging from 0-15%, this potentially represents millions in annual revenue with significantly more upside than traditional service arrangements. Per a Morpho dashboard, curators have cumulatively generated nearly 3 million in revenue and based on Q1 revenue are on track to do 7.8mm in 2025.

The most successful curator strategies have maintained higher yields primarily by accepting higher-yielding collaterals at more aggressive LTV ratios, particularly leveraging Pendle LP tokens. This approach requires sophisticated risk management but delivers superior returns in the current compressed environment.

As concrete examples, yields on the largest USDC vaults on both Morpho and Euler have outperformed the vaults.fyi benchmark, showing 5-8% base yields and 6-12% yields inclusive of token rewards.

Protocol Stratification: A Layered Market

The compressed environment has created a distinct market structure:

1. Blue-chip Infrastructure (Aave, Compound, Sky)

Function similar to traditional money market funds

Offer modest yields (2.4-6.5%) with maximum security and liquidity

Have captured the lion's share of TVL growth

2. Infrastructure Optimizers & Strategy Providers

Base Layer Optimizers: Platforms like Morpho and Euler provide modular infrastructure enabling greater capital efficiency

Strategy Providers: Specialized firms like MEV Capital, Smokehouse, and Gauntlet build on these platforms to deliver higher yields upwards of 12% on USDC and USDT (as of late March)

This two-tier relationship creates a more dynamic market where strategy providers can rapidly iterate on yield opportunities without building core infrastructure. The yields ultimately available to users depend on both the efficiency of the base protocol and the sophistication of strategies deployed on top.

This restructured market means users now navigate a more complex landscape where the relationship between protocols and strategies determines yield potential. While blue-chip protocols offer simplicity and safety, the combination of optimizing protocols and specialized strategies provides yields comparable to what previously existed on platforms like Aave or Compound during higher rate environments.

Chain by Chain: Where Yields Live Now

Despite the proliferation of L2s and alternative L1s, Ethereum mainnet continues to host many of the top yield opportunities, both inclusive and exclusive of token incentives. This persistence of Ethereum's yield advantage is notable in a market where incentive programs have often shifted yield-seeking capital to newer chains.

Among mature chains (Ethereum, Arbitrum, Base, Polygon, Optimism), yields remain depressed across the board. Outside of mainnet, most of the attractive yield opportunities are concentrated on Base, suggesting its emerging role as a secondary yield hub.

Newer chains with substantial incentive programs (like Berachain and Sonic) show elevated yields, but the sustainability of these rates remains questionable as incentives eventually taper.

The DeFi Mullet: FinTech in the Front, DeFi in the Back

A significant development this quarter was Coinbase's introduction of Bitcoin-collateralized loans powered by Morpho on its Base network. This integration represents the emerging "DeFi Mullet" thesis - fintech interfaces in the front, DeFi infrastructure in the back.

As Coinbase's head of Consumer Products Max Branzburg has noted: "This is a moment where we're planting a flag that Coinbase is coming on-chain, and we're bringing millions of users with their billions of dollars." The integration brings Morpho's lending capabilities directly into Coinbase's user interface, allowing users to borrow up to $100,000 in USDC against their bitcoin holdings.

This approach embodies the view that billions will eventually use Ethereum and DeFi protocols without knowing it — just as they use TCP/IP today without awareness. Traditional FinTech companies will increasingly adopt this strategy, keeping familiar interfaces while leveraging DeFi's infrastructure.

The Coinbase implementation is particularly notable for its full-circle integration within the Coinbase ecosystem: users post BTC collateral to mint cbBTC (Coinbase's wrapped Bitcoin on Base) and borrow USDC (Coinbase's stablecoin) on Morpho (a Coinbase-funded lending platform) atop Base (Coinbase's Layer 2 network).

Looking Forward: Catalysts for the Lending Market

Several factors could reshape the lending landscape through 2025:

Democratized curation: As curator models mature, could AI agents in crypto eventually enable everyone to become their own curator? While still early, advances in on-chain automation suggest a future where customized risk-yield optimization becomes more accessible to retail users.

RWA integration: The continued evolution of real-world asset integration could introduce new yield sources less correlated with crypto market cycles.

Institutional adoption: The scaling institutional comfort with DeFi infrastructure suggests growing capital flows that could alter lending dynamics.

Specialized lending niches: The emergence of highly specialized lending markets targeting specific user needs beyond simple yield generation.

The protocols best positioned to thrive will be those that can operate efficiently across the risk spectrum, serving both conservative institutional capital and more aggressive yield-seekers, through increasingly sophisticated risk management and capital optimization strategies.

source https://www.coindesk.com/markets/2025/03/31/innovation-amid-yield-compression-defi-lending-markets-in-q1-2025

Ether-Bitcoin Slumps to 5-Year Low: Van Straten

Ether (ETH), the second-largest cryptocurrency, has dropped 39% this year relative to bitcoin (BTC), the largest, taking the ratio between the two to the lowest in almost five years.

At the current level, 1 ETH is the equivalent of 0.02191 BTC. That's the least since May 2020, when ether was trading around $200 and bitcoin just under $10,000. Today the ETH price is about $1,800 and the BTC price around $82,000.

The underperformance is notable because it's the first time ether has weakened against bitcoin in the 12 months after a BTC reward halving. On April 20, 2024, the payment Bitcoin miners received for confirming blocks on the blockchain was reduced by 50% to 3.125 BTC.

In previous halving cycles, ether outperformed bitcoin in the first year after a halving. This time, the ratio has dropped by more than 50%.

This relative performance also marks one of ether’s worst quarterly performances against bitcoin in several years, according to data from Glassnode. The last time ether underperformed bitcoin to a similar degree was in the third quarter of 2019, when the ratio dropped to 0.0164, a quarterly decline of 46%.

This current slump mirrors the underperformance seen in 2019 and further highlights ether's relative weakness, especially when compared to other layer-1 assets. The SOLETH ratio — measuring the value of Solana’s SOL relative to ether — is up 24% year-to-date to 0.07007. This indicates that SOL has significantly outperformed ether in 2025, despite the token itself itself being down 35% year-to-date.

source https://www.coindesk.com/markets/2025/03/31/ether-bitcoin-slumps-to-5-year-low-van-straten

'No DOGE in D.O.G.E.', Says Dogecoin Proponent Elon Musk

Faint hopes of dogecoin (DOGE) being included in the U.S. Department of Government Efficiency (D.O.G.E.) were dented on Sunday as the department’s figurehead Elon Musk squashed any plans of adding the memecoin.

"There are no plans for the government to use dogecoin or anything,” Musk said during a speech at the America PAC town hall in Green Bay, Wisconsin.

“I was going to call it Government Efficiency Commission, but that's a super boring name. Then the internet said it needs to be the Department of Government Efficiency. I was like Internet is right,” he added.

DOGE prices are down 3.5% in the past 24 hours, in line with a broader market drop. While there have been no firm plans to include the token in the controversial non-governmental agency, its introduction in August had sparked several namesake tokens and birthed the start of a multi-month rally in dogecoin.

The official site even sported a dogecoin logo for a few hours on the day after Trump’s inauguration, giving more credence to rumors of the joke token playing a role in the new agency.

D.O.G.E seeks to make government spending of taxpayer money more efficient while streamlining departments that handle spending. It has saved an estimated $130 billion after a formal start in January, data shows, with an average $840 saving for taxpayers.

source https://www.coindesk.com/markets/2025/03/31/no-doge-in-d-o-g-e-says-dogecoin-proponent-elon-musk

Japan Mulls Reclassifying Crypto as a ‘Financial Product’ to Curb Insider Trading: Report

Japan's Financial Services Agency (FSA) plans to reclassify cryptocurrencies as financial products under new rules, aimed at curbing insider trading in the digital asset market, per a Nikkei report on Sunday.

The move comes as part of a broader effort to strengthen oversight in Japan's crypto ecosystem, which has witnessed growing adoption alongside a rise in fraudulent activities.

The FSA intends to submit amendments to the Financial Instruments and Exchange Act (FIEA) to Japan's parliament as early as 2026, following a detailed review conducted by experts behind closed doors.

Cryptocurrencies are currently categorized as a "means of settlement" under the Payment Services Act, a designation that has governed their use primarily as a payment tool rather than as investment vehicles.

However, this existing classification has left gaps in regulatory oversight, particularly concerning activities like insider trading.

As such, specific details about the insider trading rules — such as what constitutes insider information in the crypto context or the penalties for violations — have not yet been disclosed, leaving room for further clarification as the proposal takes shape.

source https://www.coindesk.com/policy/2025/03/31/japan-mulls-reclassifying-crypto-as-a-financial-product-to-curb-insider-trading-report

Bitcoin May be on 25% of S&P 500 Firms' Balance Sheets by 2030: Architect Partners

Bitcoin is making its way from trading desks to corporate treasuries, and by the end of the decade, it could be standard practice, according to one analyst.

“Across all the different strategies and implementations, I anticipate that by 2030, a quarter of the S&P 500 will have BTC somewhere on their balance sheets as a long-term asset,” Elliot Chun, a partner at Architect Partners, wrote in a market snapshot.

The strategy—holding bitcoin as a treasury reserve asset—was unorthodox when Strategy, formerly known as MicroStrategy, first adopted it in August 2020. The firm framed BTC as a hedge against inflation, a diversification tool, and a way to distinguish itself in the market.

Then CEO Michael Saylor’s highly public embrace of bitcoin transformed the company into a de facto proxy for BTC exposure. Since then, MicroStrategy stock has surged more than 2,000%, far outpacing both the S&P 500 and bitcoin over the same period, Chun pointed out.

GameStop is the latest company to follow suit, announcing this week that it would raise $1.3 billion through a convertible note to acquire bitcoin. Its stock initially surged following the announcement but has since endured a correction, falling nearly 15% for the week.

Chun argued that treasurers may soon face career risk not for buying bitcoin, but for ignoring it altogether. “Doing nothing is no longer a defensible strategy,” he wrote.

According to BitcoinTreasuries data, publicly listed companies currently hold 665,618 BTC, around 3.17% of the cryptocurrency’s total supply. Strategy holds the lion’s share, 506,137 BTC.

Read more: U.S. Listed Firms Continue Bitcoin (BTC) Treasury Adoption

source https://www.coindesk.com/markets/2025/03/30/bitcoin-may-be-on-25-of-s-and-p-500-firms-balance-sheets-by-2030-architect-partners

Chart of The Week: Will April Bring Good Luck or Fool's Hope for Bitcoin?

It's a bloodbath for digital assets, with traders hitting the sell button, wiping out over $160 billion of the total cryptocurrency market cap since Friday.

Few things have compounded as the first quarter of this year closes out, leading to the sell-off, including Trump's tariff threats, global economic concerns and the lack of a clear catalyst for the next leg up.

However, if history is anything to go by, there might be some glimmer of hope heading into the second quarter, as April could bring a bullish setup for crypto.

Based on the total percent return since 2010, April has brought in an average 27% return for bitcoin, marking it the third-best month, according to Barchart data. November and May were the other two months with the highest returns, with about 38% and 26% gains, respectively.

As CoinDesk analyst Omkar Godbole reported for Crypto Daybook Americas—a premium newsletter offering to help traders make informed investment decisions—this seasonality could be a much-needed positive indicator for the market.

"Seasonality factors are not as reliable as standalone indicators, but when coupled with other signs, such as the recent halt in selling by long-term holders, they appear credible," Godbole wrote.

One cog in the wheel may be the defunct exchange Mt. Gox's transfer of a significant amount of bitcoin to the centralized exchange's wallets, which could create fear of creditors' liquidations.

"A potential short-term risk is Mt. Gox, which has been transferring sizable amounts of BTC to Kraken—this may lead to temporary selling pressure or market volatility," said Deribit CEO Luuk Strijers.

Read more: Now Is 'Really Good Time' to Buy Bitcoin, Says Trillion Dollar Investment Manager

source https://www.coindesk.com/markets/2025/03/30/chart-of-the-week-will-april-bring-good-luck-or-fool-s-hope

Where All the SEC Cases Are

The U.S. Securities and Exchange Commission has dropped or paused over a dozen ongoing cases (and lost one) since U.S. President Donald Trump retook office just over two months ago and appointed Commissioner Mark Uyeda as acting chair.

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One left?

The narrative

The U.S. Securities and Exchange Commission appears to have closed almost all of its outstanding crypto-related cases — at least the publicly disclosed ones — in the last two months since Mark Uyeda took over as acting chair of the agency. In many of the court filings, the SEC argued that it needs to pull these cases while the regulator's new crypto task force reassesses how exactly it applies securities laws to digital assets, though in at least some of these cases the SEC is leaving itself no recourse to sue again should it find some cryptos from previously active suits are indeed securities.

Why it matters

TKTK

Breaking it down

Ripple: Ripple announced it had reached an agreement with the SEC to drop both the SEC's appeal of a federal judge's 2023 ruling and RIpple's cross-appeal. Ripple will receive back $75 million of the $125 million fine it was assessed by a federal judge. The agreement does not yet appear to be on the public court docket.

Coinbase: Coinbase announced last month it had reached an agreement with the SEC to drop the regulator's ongoing case against it. The SEC filed to withdraw the case with prejudice — meaning it cannot bring the same charges again — and a judge signed off on the withdrawal at the end of February. The SEC alleged that Solana (SOL), Cardano (ADA), Polygon (MATIC), Sandbox (SAND), Filecoin (FIL), Axie Infinity (AXS), Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP), Near (NEAR), Voyager (VGX), Dash (DASH) and Nexo (NEXO) all appeared to be traded as securities in its initial lawsuit.

ConsenSys: The SEC said it would drop its case against ConsenSys over the MetaMask wallet, CEO Joe Lubin said last month, and a joint stipulation dismissing the case with prejudice was filed on March 27. A court docket entry dated March 28 said the civil case was terminated.

Kraken: The SEC told Kraken it would drop its case against the exchange alleging it violated securities laws and commingled customer and corporate funds earlier this month. A joint stipulation dismissing the case was filed on March 27, though a judge does not appear to have signed off just yet.

Cumberland DRW: The SEC told Cumberland DRW it would drop its case alleging it was acting as an unregistered securities dealer earlier this month. The SEC and Cumberland filed a motion to stay proceedings on March 18, saying "the parties have agreed in principle to dismiss this litigation with prejudice" but needed three weeks to work out the details. The judge overseeing the case granted the motion, ordering the parties to file a joint status report by April 8 unless the dismissal filing is on the docket by then.

Pulsechain: A federal judge dismissed the SEC's suit against Pulsechain and HEX, saying the agency did not plausibly show that the project targeted U.S. investors and that it had jurisdiction over the case. The SEC has until April 21 to file an amended complaint.

Immutable: The SEC told Immutable Labs it closed its investigation into the Web3 gaming firm, it said earlier this week.

Yuga Labs: The SEC closed its investigation into Yuga Labs, the NFT firm said earlier this month.

Robinhood: The SEC told trading platform Robinhood it closed its investigation into the company, it said late last month.

OpenSea: The SEC closed its investigation into OpenSea, the NFT marketplace's CEO said late last month.

Uniswap: The SEC closed its investigation into Uniswap Labs, the firm announced last month.

Gemini: The SEC closed its investigation into Gemini, co-founder Cameron Winklevoss said last month.

Binance: The SEC and Binance (alongside the various affiliated parties/co-defendants) filed to pause the regulator's case for 60 days in early February. The judge overseeing the case paused the case until April 14, ordering the parties to file a joint status report by then. The SEC alleged commingling violations alongside securities law violations, as well as allowing U.S. persons to trade on the global platform.

Tron Foundation: The SEC and the Tron Foundation (alongside the various affiliated parties/co-defendants named) filed to pause the SEC's case for 60 days in late February. The judge overseeing the case granted the motion, which should bring the new deadline to around April 27 (a Sunday). The SEC alleged market manipulation and fraud, alongside securities law-related registration violations.

Crypto.com: Crypto.com announced on March 27 that the SEC had closed its case into the crypto exchange and would not take any enforcement action. Trump Media, the company behind Truth Social, is also partnering with the exchange to issue exchange-traded products.

Unicoin: Unicoin appears to be the only publicly-disclosed ongoing investigation by the SEC, though its CEO has asked the agency to close that investigation as well.

HAWK: On Thursday, Haliey Welch, whose "HAWK" token appeared to pump and dump (falling from a $491 million market cap to under $100 million within minutes) when it launched last year, told TMZ that the SEC had closed its investigation into her as well.

Stories you may have missed

Trump-Backed World Liberty Financial Confirms Dollar Stablecoin Plans With BitGo: World Liberty Financial is launching USD1, a stablecoin, on the Ethereum and BNB Chain networks.

Trump Media Wants to Partner with Crypto.Com for ETP Issuance: Trump Media, the company behind the Truth Social social network, wants to launch crypto exchange-traded products with Crypto.com.

U.S. House Stablecoin Bill Poised to Go Public, Lawmaker Atop Crypto Panel Says: The House's latest stablecoin bill draft more closely aligns with the Senate's GENIUS Bill, which passed out of committee already, Rep. Bryan Steil said at the Digital Chamber's annual conference.

Trump-Tied World Liberty Financial Pitches Its Stablecoin in Washington With Don Jr.: Donald Trump Jr. and other World Liberty Financial leaders promoted its new stablecoin at the Chamber event.

SEC Drops Investigation into Web3 Gaming Firm Immutable: The U.S. Securities and Exchange Commission has dropped another investigation, this time into Immutable.

Shuttered Russian Crypto Exchange Garantex Rebrands as Grinex, Global Ledger Finds: Garantex is an exchange sanctioned by the U.S. and seized by international law enforcement officials. That does not appear to have stopped some of its operators from rebranding it as Grinex and launching anew, based on on-chain and off-chain data.

Crypto Bill to Combat Illicit Activity Gets New Push After Passing U.S. House in 2024: Reps. Zach Nunn and Jim Himes have reintroduced the Financial Technology Protection Act.

President Trump Pardons Arthur Hayes, 2 Other BitMEX Co-Founders: U.S. President Donald Trump pardoned Arthur Hayes, Ben Delo and Sam Reed, the co-founders of BitMEX. The three had all previously pleaded guilty to Bank Secrecy Act violations and were sentenced to parole.

Sei Foundation Explores Buying 23andMe to Put Genetic Data on Blockchain: This headline is self-explanatory, though I would love to know more about what it would mean to put individuals' genetic data on an immutable public ledger.

This week

Thursday

14:00 UTC (10:00 a.m. ET) Paul Atkins and Jonathan Gould (among others) faced the Senate Banking Committee for their confirmation hearing. Outside of Sen. John Kennedy (R-La.) asking questions about Sam Bankman-Fried's parents (and a few other passing references to FTX's collapse), there were no crypto-related questions.

Elsewhere:

(The Atlantic) Jeffrey Goldberg, the editor-in-chief of The Atlantic, said he was inadvertently added to a Signal group chat by National Security Advisor Michael Waltz, which contained other key figures in the Trump Administration and where Defense Secretary Pete Hegseth shared details about an imminent strike on Yemen hours before it occurred. Middle East envoy (and World Liberty Financial investor) Steve Witkoff confirmed that he was part of the group through one of his "personal devices," rather than his government-issued secure phone. Tulsi Gabbard, the director of national intelligence and John Ratcliffe, the director of the CIA, said the messages were not classified, and The Atlantic published them.

(Wired) A Venmo account named "Michael Waltz" that Wired reports was "connected to accounts bearing the names of people closely associated with him" left its transactions public until after the news organization reached out about it.

(The Verge) U.S. President Donald Trump fired Federal Trade Commissioners Alvaro Bedoya and Rebecca Slaughter, both Democrats, reportedly in violation of a Supreme Court precedent. Both have since sued Trump contesting the firings.

(The Washington Post) The IRS is projecting it will collect $500 billion less in 2025 than 2024, the Post reported.

(The New York Times) "SpaceX is positioning itself to see billions of dollars in new federal contracts or other support," the Times reported.

(The Washington Post) Plainclothes officers arrested Tufts University Ph.D student Rumeysa Ozturk and relocated her to a Louisiana facility. The Department of Homeland Security said she "engaged in activities in support of Hamas," but has not published any evidence supporting the claim. Secretary of State Marco Rubio said he canceled Ozturk's visa because she was "creating a ruckus," but does not appear to allege she committed any crimes.

If you’ve got thoughts or questions on what I should discuss next week or any other feedback you’d like to share, feel free to email me at nik@coindesk.com or find me on Bluesky @nikhileshde.bsky.social.

You can also join the group conversation on Telegram.

See ya’ll next week!

source https://www.coindesk.com/policy/2025/03/29/where-all-the-sec-cases-are

Bitcoin Plunges Below $84K after $115B Sell-Off Wipes Out Weekly Gains

Hopes for the crypto recovery to continue vanished on Friday, as a market-wide rout erased virtually all gains from earlier this week.

Bitcoin (BTC), hovering just below $88,000 a day ago, tumbled to $83,800 recently and is down 3.8% over the past 24 hours. The broad-market benchmark CoinDesk 20 Index declined 5.7%, with native cryptos Avalanche (AVAX), Polygon (POL), Near (NEAR), and Uniswap (UNI) all nursing almost 10% losses during the same period. Today's sell-off wiped out $115 billion of the total market value of cryptocurrencies, TradingView data shows.

Ethereum's ether (ETH) declined over 6% to extend its downtrend against BTC, falling to its weakest relative price to the largest cryptocurrency since May 2020. Underscoring the bearish trend, spot ETH exchange-traded funds failed to attract any net inflows since early March, while their BTC counterparts saw over $1 billion of inflows in the past two weeks, according to Farside Investors data.

The ugly crypto price action coincided with U.S. stocks selling off during the day on poor economic data, with the S&P 500 and the tech-heavy Nasdaq index down 2% and 2.8%, respectively. Crypto-focused stocks also suffered heavy losses: Strategy (MSTR), the largest corporate BTC holder, closed the day 10% lower, while crypto exchange Coinbase (COIN) dropped 7.7%.

The February PCE inflation report, released this morning, showed a 2.5% year-over-year increase in the price index, with core inflation at 2.8%, slightly above expectations. Consumer spending showed a modest 0.4% rise, though inflation-adjusted figures indicate minimal growth, suggesting potential headwinds for economic growth. The Federal Reserve of Atlanta's GDPNow model now projects the U.S. economy to contract 2.8% in the first quarter, 0.5% adjusted for gold imports and exports, spurring stagflationary fears.

The implementation of broad-scale U.S. tariffs next week—the so-called "Liberation Day' on April 2, as the Trump administration refers to—also compounded investor concerns across markets.

CME gapfill or another leg lower?

Bitcoin has closely correlated with the Nasdaq lately, so U.S. equities rolling over for another leg down could weigh on the broader crypto market. However, on a more optimistic note, today's decline could be BTC filling the price gap at around $84,000-$85,000 between Monday's open and the previous week's close on the Chicago Mercantile Exchange futures market. Historically, BTC usually revisited similar CME gaps and a drop to $84,000 was in the cards, CoinDesk senior analyst James Van Straten noted earlier this week.

Read more: Bitcoin's Weekend Surge Forms Another CME Gap, Signaling Possible Drop Back

"At this stage it’s difficult to determine if we have already seen a bottom in 2025," Joel Kruger, market strategist at LMAX Group, said in a market note. Despite the on-going correction, he noted several positive trends such as crypto-friendly policies in the U.S. and more traditional financial firms entering the industry or expanding crypto offerings, which could bode well for digital assets later in the year.

"Any additional setbacks that we might see should be exceptionally well supported into the $70-75k area," he added.

source https://www.coindesk.com/markets/2025/03/28/bitcoin-plunges-below-usd84k-after-usd115b-sell-off-wipes-out-weekly-gains

President Trump Pardons Arthur Hayes, 2 Other BitMEX Co-Founders: CNBC

Arthur Hayes, the former CEO of crypto exchange BitMEX, has been granted a pardon by U.S. President Donald Trump, according to a Friday report from CNBC.

Trump reportedly also pardoned Hayes’ co-founders at BitMEX, Samuel Reed and Benjamin Delo.

In 2020, the U.S. Department of Justice (DOJ) brought charges against BitMEX, its three co-founders, and its first employee, Gregory Dwyer, accusing them of violating the Bank Secrecy Act (BSA). Prosecutors alleged BitMEX advertised itself as a place where customers could use its platform virtually anonymously, without providing basic know-your-customer (KYC) information. All four individuals eventually pleaded guilty and were sentenced to fines and probationary sentences. The exchange itself pleaded guilty to violating the BSA last year.

Hayes faced two years of probation; Delo spent 30 months and Reed 18 months. Dwyer got 12 months of probation.

The Commodity Futures Trading Commission ordered BitMEX to pay $100 million for violating the Commodity Exchange Act and other CFTC regulations in 2021, separately from its DOJ settlements.

Attorneys representing Hayes, Delo and Reed did not immediately return requests for comment.

The reported pardons come just a day after Trump granted a pardon to Trevor Milton, the former CEO of Nikola Motors who was previously convicted of fraud in 2022. In January, Trump made good on long-standing promises to pardon Silk Road creator Ross Ulbricht, who was 11 years into a draconian sentence of double life in prison plus 40 years, with no possibility of parole. Since Ulbricht’s pardon, former FTX CEO and convicted fraudster Sam Bankman-Fried has been angling for his own pardon, attempting to curry favor with the Trump administration and appearing on Tucker Carlson in an unauthorized jailhouse interview that landed him in solitary confinement.

Former Binance CEO Changpeng "CZ" Zhao, who pleaded guilty to the same charge as Hayes and served four months in prison last year — making him not only the richest person to ever go to prison in the U.S., but also the only person to ever serve jail time for violating the BSA — has denied reports that he, too, is seeking a pardon from President Trump.

But, Zhao admitted in a recent X post that “no felon would mind a pardon, especially being the only one in US history who was ever sentenced to prison for a single BSA charge.”

source https://www.coindesk.com/policy/2025/03/28/president-trump-pardons-arthur-hayes-2-other-bitmex-co-founders-cnbc

FDIC Reverses U.S. Crypto Banking Policy That Demanded Prior Approvals

The Federal Deposit Insurance Corp. will no longer instruct banks to get prior sign-off before they engage in crypto activities — a standard that was set in 2022 and that effectively severed institutions from the digital assets sector as they waited for approvals that never came.

The FDIC, which is the chief federal supervisor of thousands of typically smaller banks and runs the banking industry's government backstop, had occupied a significant role in the crypto debanking saga. A courtroom fight with crypto exchange Coinbase had recently unveiled dozens of letters between the regulator and banks it supervised. In that 2022 correspondence, the FDIC had instructed them to steer clear of new crypto matters while it hashed out policies, though the agency never developed any and left bankers hanging.

The new industry guidance issued on Friday comes after President Donald Trump elevated a crypto-friendly leadership at the FDIC and other financial regulators and has directed his administration to open doors for the industry.

“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said FDIC Acting Chairman Travis Hill, in a statement. “I expect this to be one of several steps the FDIC will take to lay out a new approach for how banks can engage in crypto- and blockchain-related activities in accordance with safety and soundness standards.”

Read More: Trump's FDIC Chief Rethinks Crypto Guidance as U.S. Senators Probe Debanking

Banks that were once expected to get pre-approvals on crypto matters can now forge ahead, as long as they're appropriately considering the risks.

Bo Hines, the White House's director of its council of digital assets advisers cheered the FDIC's move in a social media post, calling it a "huge step forward."

The guidance to seek pre-approvals was a common stance across all three U.S. banking agencies, including the Federal Reserve and the Office of the Comptroller of the Currency. The OCC also acted recently to rescind its similar 2022 guidance, which had emerged as the digital assets sector was beset by failure and high-profile fraud, and global exchange FTX was steering toward disaster.

Read More: OCC Says Banks Can Engage in Crypto Custody and Certain Stablecoin Activities

UPDATE (March 28, 2025, 18:42 UTC): Adds comment from a White House official.

source https://www.coindesk.com/policy/2025/03/28/fdic-reverses-u-s-crypto-banking-policy-that-demanded-prior-approvals

Tokenized Gold Hits Record $1.4B Market Cap as Trading Volumes Soar in March

The market capitalization of tokenized gold climbed to a record $1.4 billion in March with trading volumes soaring to yearly highs, CoinDesk Data's monthly stablecoin report shows.

The growth in market value and activity happened alongside the physical yellow metal's rally to fresh all-time highs above $3,000 per ounce. Tether's gold-backed token (XAUT) and Paxos' PAXG dominate among the offerings, with market capitalizations of $749 million and $653 million, respectively.

The trading volume with gold tokens surpassed $1.6 billion through the month, the highest level in more than a year, according to the report.

The overall stablecoin market, which includes tokens with prices pegged to fiat currencies and commodities, climbed above $231 billion market cap this month, growing for the 18th consecutive month, the report said.

Tether's USDT, the largest stablecoin on the market, also increased to a record supply of $144 billion. However, its market share dropped to the lowest level (62.1%) since March 2023 as the stablecoin landscape is getting increasingly competitive. Circle's USDC, the second-largest stablecoin, grew 7% in a month to near $60 billion.

Decentralized finance protocol Ethena's recently launched dollar stablecoin USDtb, which uses BlackRock's tokenized money market fund BUIDL as a reserve asset, quickly gobbled up over $1 billion of assets to become the 8th largest by market cap.

In terms of trading volumes on centralized exchanges, USDT's dominance slightly declined, but still stood above competition at 75.7% through the month among the top ten stablecoins. Meanwhile, USDC and Hong Kong-based First Digital's FDUSD saw their trading market cap dominance rise to 13.6% and 10%, respectively.

Regulatory shifts have been reshaping the market of euro-denominated stablecoins, as exchanges moved to comply with the Markets in Crypto-Assets (MiCA) framework. Kraken delisted USDT and other non-compliant stablecoins for European users, following the footsteps of other exchanges such as Coinbase and Crypto.com.

Circle's EURC stablecoin was a notable beneficiary of the developments, growing nearly 30% to $157 million market cap and claiming a 45% market share of all euro stablecoins.

source https://www.coindesk.com/markets/2025/03/27/tokenized-gold-hits-new-record-market-cap-as-trading-volumes-soar-in-march

FBI Seizes $200,000 in Crypto From Hamas-Linked Wallets, Accounts

The U.S. Federal Bureau of Investigation (FBI) seized more than $200,000 in cryptocurrency from several wallets and exchange accounts linked to the Palestinian militant group Hamas, according to a Thursday announcement.

According to the FBI, more than $1.5 million in crypto — largely in the form of donations from Hamas supporters around the world — has flowed through the seized wallets and exchange accounts since last October. The wallet addresses were allegedly promoted in a group chat claiming to be associated with Hamas, a U.S. and European Union-designated terrorist organization, and donations were subsequently laundered through a series of crypto exchanges and transactions.

“These seizures show that this office will search high and low for every cent of money going to fund Hamas, wherever it is found, and in whatever form of currency,” U.S. Attorney Edward R. Martin Jr. of the District of Columbia said in a statement. “Hamas is responsible for the death of many U.S. and Israeli nationals, and we will stop at nothing to stop their campaign of terror and murder.”

Approximately $90,000 in crypto was seized from an undisclosed number of wallets, and another $112,000 was taken from three exchange accounts, according to the FBI’s release, and the accounts were registered to Palestinian individuals living in Turkey “and elsewhere.”

The U.S. Treasury Department and other foreign governments have previously sanctioned Hamas-linked financial networks and facilitators of crypto transfers, seized Hamas-linked crypto accounts. In April 2023, Israel’s Defense Ministry’s National Bureau for Counter Terror Financing (NBCTF) seized nearly 200 cryptocurrency accounts tied to Palestinian currency exchanges. According to a report from blockchain analytics firm TRM Labs, the NBCTF has seized “tens of millions” of dollars in crypto from Hamas-linked accounts over the last few years.

According to the U.S. Treasury, Hamas has been using cryptocurrency to move some of its money since at least 2020, in order to mitigate the risks of physically transporting cash and to evade financial monitoring.

source https://www.coindesk.com/policy/2025/03/27/fbi-seizes-usd200-000-in-crypto-from-hamas-linked-wallets-accounts

The Protocol: Ethereum’s Final Pectra Test Goes Live

Welcome to The Protocol, CoinDesk's weekly wrap-up of the most important stories in cryptocurrency tech development. I'm Ben Schiller.

In this issue:

Ethereum’s Final Pectra Test Goes Live

Hyperliquid Eases Token Transfers for DeFi

Celo Migration to Layer-2 Network Is Done

Bitcoin DeFi Expansion Faces Fork Dilemma

This article is featured in the latest issue of The Protocol, our weekly newsletter exploring the tech behind crypto, one block at a time. Sign up here to get it in your inbox every Wednesday.

Network news

IT’S ALIVE! ETHEREUM PECTRA TEST: The final dress rehearsal for Ethereum’s upcoming Pectra upgrade occurred Wednesday, as the blockchain's biggest changes in over a year were tested an additional time following a series of mishaps. The upgrade on the new Hoodi testnet was closely watched given that two previous tests, on the Holesky and Sepolia test networks, failed to finalize properly. Following those tests, developers created a new testnet, Hoodi, to give ecosystem players, particularly staking providers, one more testing opportunity before the Pectra upgrade hits Ethereum’s mainnet. The test involved passing Hoodi a series of code changes meant to make Ethereum more user-friendly for both end-users as well as developers. One of those changes adds smart contract functionality to wallets, allowing wallet software developers to build new convenience-oriented features, like the ability to pay transaction fees in cryptocurrencies other than ether (ETH). ​​Testnets act as copies of a main blockchain, and are used by developers to run through any major code changes in a low stakes environment, giving them a place to patch out any bugs before they reach mainnet. Hoodi was the last of three testnets to run through a simulation of Pectra. Developers previously agreed that if all went well on Wednesday, Pectra would be monitored for around 30 more days and then, finally, activated on Ethereum's mainnet. — Margaux Nijkerk Read more.

HYPERLIQUID EASES TOKENS FOR DEFI: The decentralized finance (DeFi) sector is among the biggest drivers of value accrual and revenue creation for crypto projects, but its complexity often leaves users tangled in a web of blockchains, bridges, wallets and tokens. A technical update by Hyperliquid is making that process easier for both developers and users, with the direct linking of tokens on HyperCore and HyperEVM platforms now being possible. HyperCore is its native platform for spot assets (think tokens you can trade directly), and HyperEVM, an Ethereum Virtual Machine (EVM) network that executes smart contracts on Ethereum. Tokens on HyperCore, dubbed “Core spot,” can be linked to their counterparts on HyperEVM and are called “EVM spot.” Once linked, users can transfer them using simple actions — like a “spotSend” on HyperCore or a standard ERC-20 transfer on HyperEVM. By letting tokens move directly between them — without a third-party intermediary — developers can create products that cut out the technical chops required to move assets, which is easy for heavy crypto users, but may be challenging for beginners. — Shaurya Malwa Read more.

CELO MIGRATION to LAYER-2: The Celo blockchain's long-awaited plan of becoming an Ethereum layer-2 chain has been completed, ending an almost two-year process, the main organizations behind the network said Wednesday. The transition ends a long journey beginning back in July 2023 for the layer-1 blockchain that included a community vote in July 2024 and a fierce competition, won by Optimism, among layer-2 networks out to convince the Celo ecosystem to build with their technology. The improved network — like other layer 2s — offers faster and cheaper transactions on top of Ethereum's mainnet. The blockchain is powered by Optimism’s OP Stack, a customizable framework that lets developers build layer-2 networks based off of Optimism’s technology. According to Rene Reisberg, the CEO of the Celo Foundation, the migration is the first of its kind in the Ethereum ecosystem, and will probably be used as a blueprint for other EVM-compatible blockchains that are looking to become a layer-2 network. — Margaux Nijkerk Read more.

BITCOIN DEFI FACES FORK DILEMMA: Bitcoin developers looking to expand the blockchain's decentralized finance (DeFi) capabilities are likely to be considering zero-knowledge (ZK) proofs, functionality that's not currently available and which require a so-called soft fork, or new version of the software, to introduce them. That's a problem, according Edan Yago, a Bitcoin veteran of over a decade and core contributor to smart contract operating system BitcoinOS (BOS). "Forking a blockchain, especially one with $2 trillion worth of value on it, is like open-heart surgery," he told CoinDesk in an interview. ZK proofs are a cryptographic method of proving the validity of statements while maintaining privacy through not revealing any information about it. The functionality is not available in Bitcoin's software, but could be made so through proposed implementations like OP_CAT and OP_CTV. Yago said developers should be able to find ways of enabling them on Bitcoin without any kind of fork. "The burden of proof is on developers to demonstrate that there is no other way of accomplishing this through clever engineering," he said. This is what BOS hopes to achieve through the BitSNARK, a Bitcoin rollup protocol that is part of the family of computing paradigms being developed to scale the original blockchain. These emerged following the introduction of BitVM by Robin Linus in October 2023, which set out a framework for how Ethereum-like smart contracts could be enabled on Bitcoin. BitcoinOS has now open-sourced what Yago describes as a "fully production-ready" BitSNARK protocol, meaning developers now have access to ZK verification on Bitcoin and can connect it to other blockchains like Ethereum, Solana and Cardano. — Jamie Crawley Read more.

In Other News

In a two-hour interview with CoinDesk Senior Anchor Christine Lee, Strategy Executive Chair Michael Saylor discusses a U.S. Bitcoin strategic reserve, why securities holders keep him sleepless, and his own economic immortality. — Christine Lee reports.

Crypto start-up Plasma has revealed the technical features of its blockchain, which is designed for fast and efficient global stablecoin transfers, using a HotStuff-inspired consensus mechanism. — Omkar Godbole reports.

Regulatory and policy

U.S. Senator Kirsten Gillibrand (D-N.Y.), one of the leading Democrats supporting crypto legislation, warned the industry against pushing for a “watered-down” version of the long-awaited stablecoin legislation currently moving through the Senate, arguing that stringent regulations are necessary to foster innovation and protect investors from bank runs like the one on Silicon Valley Bank in 2023 and the collapse of crypto exchange FTX in 2022. - Cheyenne Ligon report.

Calendar

April 8-10: Paris Blockchain Week

April 30-May 1: Token 2049, Dubai

May 14-16: Consensus, Toronto

May 20-22: Avalanche Summit, London

May 27-29: Bitcoin 2025, Las Vegas

June 30-July 3: EthCC, Cannes

Oct. 1-2: Token2049, Singapore

source https://www.coindesk.com/tech/2025/03/26/the-protocol-ethereum-s-final-pectra-test-goes-live

GameStop Raising $1.3B Via Convertible Debt to Buy Bitcoin

Just 24 hours after adding its name to the roster of companies pursuing a bitcoin (BTC) treasury strategy, GameStop (GME) — led by its CEO Ryan Cohen — is also adding its name to those firms issuing convertible debt to raise funds for BTC acquisition.

The $1.3 billion of convertible senior notes will have a five-year maturity, according to a press release, and the underwriter greenshoe is for up to an additional $200 million. The paper will come with a 0% coupon.

"GameStop expects to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin in a manner consistent with GameStop’s Investment Policy," the press release continued.

In making this move, GameStop is joining the likes of Michael Saylor-led Strategy (MSTR), Semler Scientific (SMLR), MARA Holdings (MARA) and Riot Platforms (RIOT) as those firms issuing convertible debt for bitcoin purchases.

GME shares are down 7% in after-hours trading following an 11.7% advance in the regular session on Wednesday. Bitcoin appears to be bouncing off of its worst levels of the day on the news, retaking $87,000 after falling as low as $86,000 minutes ago.

source https://www.coindesk.com/markets/2025/03/26/gamestop-raising-usd1-3b-of-convertible-debt-for-bitcoin-purchases

SEC Drops Investigation into Web3 Gaming Firm Immutable

The U.S. Securities and Exchange Commission (SEC) has dropped its investigation into Web3 gaming platform Immutable and will not file enforcement charges, according to a Tuesday announcement from the company.

Immutable, an Australian company, disclosed that it had received a Wells notice — essentially an official heads-up from the SEC that it intends to file an enforcement action against the recipient — in November. At the time, the firm speculated that the SEC’s investigation was tied to its listing and private sales of its native IMX token back in 2021.

“We are pleased the SEC has concluded its inquiry,” said Robbie Ferguson, Immutable’s co-founder and president, in a statement. “This marks a significant milestone for the crypto

industry and gaming as we advance towards a future with regulatory clarity.”

Ferguson added that the firm was “thrilled” at the developing regulatory clarity coming from the U.S. government, and said that “with a clear regulatory framework, we plan to accelerate our ambitions to bring digital ownership to the 3.1 billion gamers in the world.”

The SEC declined to comment, telling CoinDesk that the agency “does not comment on the existence or nonexistence of a possible investigation.”

The SEC’s decision to end its investigation into Immutable is the latest in a string of closed probes and dropped litigation as the agency continues its full-scale retreat from former Chair Gary Gensler’s so-called “regulation by enforcement” approach to the crypto industry. Under the leadership of Acting Chair Mark Uyeda, the SEC has signaled a total overhaul in its crypto regulation strategy, setting up a Crypto Task Force spearheaded by crypto-friendly Commissioner Hester Peirce and starting a series of roundtable discussions with industry players.

In the less-than-three-month span since U.S. President Donald Trump took office — catalyzing a regulatory sea change for the crypto industry — the SEC’s investigations into crypto exchange Gemini, trading platform Robinhood, non-fungible token (NFT) marketplace OpenSea, NFT company Yuga Labs, and now, Immutable, have all been dropped, with no enforcement charges filed. The agency’s litigation against crypto companies including Kraken, Coinbase, ConsenSys, Ripple andCumberland DRW have also been dropped. Still more litigation, including the SEC’s cases against Tron and Binance, have been paused.

However, not everyone who received a Wells notice is off the SEC’s hook yet. Crypto issuer Unicoin received a Wells notice last year informing the firm that the SEC planned to bring charges alleging violations related to fraud, deceptive practices and the offer and sale of unregistered securities.

A spokesperson for Unicoin told CoinDesk that the firm “remains in the final stages of the SEC review process.”

“As of now, we have not received any new updates or formal feedback from the SEC regarding our registration,” the spokesperson added. “We are fully committed to compliance and transparency, and we continue to work toward securing the necessary approvals for our planned offerings.”

Crypto.com also received a Wells notice from the SEC last year, after which it sued the agency and then-Chair Gensler, accusing the regulator of “unlawfully expanding its jurisdiction.” The suit was later dropped. Crypto.com has not publicly commented on the status of the SEC’s investigation, and did not respond to CoinDesk’s request for comment.

source https://www.coindesk.com/policy/2025/03/25/sec-drops-investigation-into-web3-gaming-firm-immutable

Blockchain Data Provider Chronicle Raises $12M to Expand Infrastructure for Tokenized Assets

Chronicle, a blockchain data provider focused on tokenized assets, announced on Tuesday that it has raised $12 million in a seed funding round. The investment was led by Strobe Ventures, formerly known as BlockTower Capital. Other backers include Galaxy Vision Hill, Brevan Howard Digital, Tioga Capital and Fenbushi Capital, alongside notable crypto angel investors such as Rune Christensen (Sky/MakerDAO founder), Andre Cronje (founder of Sonic and Yearn), Stani Kulechov (founder of Aave), Mark Phillips (co-founder of Steakhouse) and Sam MacPherson (co-founder of Phoenix Labs).

Chronicle operates as an oracle network, offering real-time data verification for tokenized financial products. It has processed more than $20 billion in total value secured (TVS) since its launch in 2017 and is expanding its infrastructure to meet rising demand. The company recently rolled out its "Verified Asset Oracle," which ensures the authenticity of off-chain assets for issuers such as Centrifuge, Superstate and M^0.

"As banks and asset managers accelerate tokenization initiatives, Chronicle's trusted data infrastructure provides the reliability and compliance capability these institutions require," said Thomas Klocanas, general partner at Strobe Ventures.

The demand for real-world asset (RWA) tokenization is rising, as global banks and asset managers increasingly use blockchain rails for moving traditional financial instruments. Tokenized assets could become a multitrillion-dollar market by 2030, reports by McKinsey, Boston Consulting Group and others projected.

Chronicle aims to tap into that rising demand by integrating off-chain data with blockchain-based assets by ensuring data security, auditability and cost-efficiency through a network of validators, including established financial data providers and crypto-native organizations like Sky, formerly MakerDAO.

The company said it will use the new capital to advance product development, expand partnerships, and strengthen compliance measures, reinforcing its role as a bridge between traditional finance and digital assets. Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.

source https://www.coindesk.com/business/2025/03/25/blockchain-data-provider-chronicle-raises-usd12m-to-expand-infrastructure-for-tokenized-assets

A $41B Investment Firm Wants to Stick With Just Bitcoin ETFs as Safer Bet

Earlier this year, Calamos made its crypto debut with the launch of not one but three funds designed to protect investors from the volatility in bitcoin’s (BTC) price.

But the global investment management firm, which handles $41.3 billion in assets, is far from launching any other products beyond bitcoin, — even Ethereum (ETH), said its head of ETFs Matt Kaufman in an interview with CoinDesk.

Since their inception, Calamos’ protected BTC funds have attracted over $100 million from investors, which primarily include financial advisors.

For most firms looking to make an entrance into the crypto market, launching a bitcoin product is just the first step in a long journey that quickly extends to ethereum-based products. BlackRock, for example, applied to launch its spot bitcoin ETF (IBIT) in June 2023 and five months later, did the same for Ethereum (ETH).

“Ethereum doesn’t really meet our criteria for being able to effectively hedge that exposure,” he said. “It’s not a liquid asset, there’s no options on Ethereum ETPs so if those check boxes start to get built, we’ll explore it but right now it’s not on our radar.”

The Calamos Bitcoin Structured Alt Protection ETF (CBOJ), Calamos Bitcoin 90 Series Structured Alt Protection ETF (CBXJ) and Calamos Bitcoin 80 Series Structured Alt Protection ETF (CBTJ) offer investors 80-100% downside protection with an upside cap rate of 10-55%.

This is achieved by using a combination of Treasuries and options on the CBOE Bitcoin US ETF Index. While Cboe Exchange has filed to list options tied to Ether ETFs, the Securities and Exchange Commission (SEC) in January delayed its deadline to approve or deny the product. The Commission will have to stick to the final deadline in May, however.

Another asset class that Calamos won’t likely ever touch is meme coins, Kaufman said. “We’re a risk manager, so we build things we know will work,” he said. “From that perspective, I don’t have any opinion on meme coins but it’s not something I would ever do.”

Kaufman believes that the recent surge in applications for meme coin ETFs highlights the fact that investors have to do their due diligence. “We live in America, you have to know what you own. Freedom gives you choice and with choice comes responsibility,” he said.

source https://www.coindesk.com/markets/2025/03/25/a-usd41b-investment-firm-wants-to-stick-with-just-bitcoin-etfs-as-safer-bet

China's CPIC Rolls Out $100M Tokenized Fund with HashKey as RWA Trend Expands in Asia

China Pacific Insurance (CPIC) Investment Management, a Hong Kong-based subsidiary of one of China's largest insurance groups, rolled out a tokenized U.S. dollar money market fund as the asset tokenization trend is expanding to Asia.

The eStable Money Market Fund (MMF) was launched on the HashKey Chain, a permissioned blockchain for institutional users developed by digital asset group HashKey, and has secured $100 million in subscription on the first day, according to a Monday press release.

The product is only accessible for professional and institutional investors and invests in U.S. dollar-denominated short-term fixed income assets and money market instruments. The PAC serves as the tokenization issuance platform for the fund, while Standard Chartered Bank provides registration and fund administration services.

Asset managers around the globe are increasingly putting traditional financial instruments such as government bonds, credit, and funds on blockchain rails, a process often referred to as tokenization of real-world assets (RWAs). By doing so, they seek to achieve operational and efficiency gains and faster, around-the-clock settlements.

U.S.-based issuers like Franklin Templeton and BlackRock have been spearheading the tokenization efforts of U.S. Treasury securities as a blockchain-based facility to manage cash holdings, similar to a money market fund. Last week, Fidelity Investments also filed for regulatory approval to enter the market with a fund built on the Ethereum network. This is a fast-growing market: the total market value of yield-generating some 500% over the past year to almost $4.8 billion, rwa.xyz data shows.

"The essence of finance is the flow of value across time and space, and blockchain is the new infrastructure for this process," said Dr. Xiao Feng, chairman and CEO of HashKey Group.

"Integration with traditional finance is an important direction for future Web3 development and one of the directions with the greatest certainty," CG Zhou, CEO of CPIC Investment Management, said in a statement, adding that the company will seek to tokenize more traditional assets using compliance-driven blockchains.

source https://www.coindesk.com/business/2025/03/24/china-s-cpic-rolls-out-usd100m-tokenized-fund-with-hashkey-as-rwa-trend-expands-in-asia

Philippines' Largest Digital Wallet GCash Adds USDC Support

GCash, the largest digital wallet in the Philippines, has announced support for stablecoins via USDC.

Publicly available data shows that GCash, which is similar to China's Alipay or WeChat Pay, does over $65 billion (3.8 trillion Philippine Pesos) in annual transaction volume.

Filipino remittances reached a record $38.3 billion in 2024, and account for approximately 8%-10% of the country's GDP.

Alipay owner-Ant Group, Ayala Corporation and Manilla-based Globe Telecom's 917Ventures own GCash operator Mynt. GCash offers crypto services via its GCrypto subsidiary, which has partnered with locally licensed crypto exchange PDAX.

In total GCrypto offers 39 different assets to trade on its platform, including Paypal's PYUSD stablecoin. Stablecoin-based transfers are growing as a share of the market but remain relatively small, with less than 5% of all inbound remittances using crypto rails.

Recently, Bloomberg reported that GCash could seek an IPO valuation of at least $8 billion by the end of 2025.

The company, reportedly, is in no rush to go public as it recently completed a funding round that raised its valuation to $5 billion, giving it enough capital and flexibility to wait for favorable market conditions.

source https://www.coindesk.com/markets/2025/03/24/philippines-gcash-digital-wallet-adds-usdc-support

Bitcoin, XRP and SOL Rise With U.S. Equity Futures as Trump Plans Targeted Action for Tariffs 'Liberation Day'

Financial markets gave risk-on vibes early Monday during Asia hours based on reports that the next round of Trump tariffs due on April 2 could be more measured than initially expected.

Bitcoin (BTC), the largest digital asset by market value, traded at around $86,500, up 2.7% on a 24-hour basis, with Solana's SOL token trading nearly 6% higher at $138, according to CoinDesk data.

Payments-focused XRP was up 2.5% at $2.44, trading above its 50-day simple moving average (SMA) after two consecutive weeks of positive price action.

Futures tied to the S&P 500, Dow Jones Industrial Average, and Nasdaq rose over 0.5% on the day, while Wall Street's fear gauge, the VIX index, slipped 2.5% to 18.88 points. Markets in China reversed early losses.

The sentiment improved as media reports over the weekend said President Donald Trump's planned "reciprocal tariffs" expected April 2 could be more focused than the barrage occasionally threatened.

Some countries will be exempt, and existing levies on steel and other metals may not be cumulative, Bloomberg's report said.

Trump's tariffs roiled the market sentiment in February, sending both stocks and the crypto market lower. BTC fell nearly 17.6%, hitting lows under $80,000. Last week, the Federal Reserve revised its inflation forecasts higher while downgrading growth figures likely due to Trump's aggressive trade policies.

The Fed, however, called the tariffs-led inflationary impulse transitory while retaining forecasts for two rate cuts this year in a dovish move for risk assets, including cryptocurrencies.

The Fed action, coupled with prospects of easing tariffs, has revived bullish sentiment in the market.

"I bet $BTC hits $110k before it retests $76.5k. Y? The Fed is going from QT to QE for treasuries. And tariffs don’t matter cause “transitory inflation”. JAYPOW told me so," BitMEX co-founder Arthur Hayes, who is now chief investment officer at Maelstrom, said on X.

The other key factors to watch out for in the coming days are Friday's PCE reading, the Fed's preferred inflation gauge, and the appearance of the SEC nominee Paul Atkins and Comptroller of the Currency nominee Jonathan Gould before the Senate Banking Committee on March 27.

source https://www.coindesk.com/markets/2025/03/24/bitcoin-xrp-and-sol-rise-with-u-s-equity-futures-as-trump-plans-targeted-action-for-tariffs-liberation-day

Fidelity Files for OnChain U.S. Treasury Fund, Joining the Asset Tokenization Race

U.S.-based asset manager Fidelity Investments has filed paperwork to register a blockchain-based, tokenized version of its U.S. dollar money market fund, aiming to join the tokenized asset race.

According to a Friday filing to the U.S. Securities and Exchange Commission (SEC), the company seeks to register an "OnChain" share class of its Fidelity Treasury Digital Fund (FYHXX) and use blockchains as transfer agent. FYHXX holds cash and U.S. Treasury securities and was launched late last year.

The OnChain class of the fund currently uses the Ethereum (ETH) network, and the firm may expand to other blockchains in the future, the filing said. The registration is subject to regulatory approval, with the product expected to become effective on May 30.

The filing happened as global banks and asset managers increasingly put traditional financial instruments such as government bonds, credit, and funds on blockchain rails, a process often referred to as tokenization of real-world assets (RWAs). They do so to pursue operational and efficiency gains and faster, around-the-clock settlements.

Fidelity, with $5.8 trillion in assets under management, is the latest traditional financial heavyweight seeking to enter the fast-growing tokenized U.S. Treasuries space.

Blackrock (BLK), in partnership with digital asset firm Securitize, launched a similar tokenized T-bill fund last March called BUIDL and has become the market leader with nearly $1.5 billion of assets, rwa.xyz data shows.

Franklin Templeton's fund, which was the first on-chain money market product, gathered $689 million in assets since its 2021 debut.

The entire tokenized U.S. Treasury market is currently worth $4.77 billion, growing almost 500% over the past year, per rwa.xyz.

Fidelity is also one of the largest issuers of spot bitcoin and ether exchange-traded funds (ETF) in the U.S., with its $16.5 billion FBTC and $780 million FETH, per SoSoValue data.

source https://www.coindesk.com/business/2025/03/22/fidelity-files-for-onchain-u-s-treasury-fund-joining-the-asset-tokenization-race