Ron DeSantis, a candidate for the U.S. presidency, has firmly stated his stance against central bank digital currencies (CBDCs), promising to prohibit them in the U.S. if he wins the election. Speaking at the Family Leadership Summit on July 14, DeSantis emphatically said he would immediately eliminate any possibility of CBDCs in the U.S. He previously enacted legislation in Florida that forbids federal and foreign CBDCs, citing concerns about shifts in power. While some view CBDCs as a threat to privacy, others consider them a means to foster blockchain technology adoption. Currently, the Federal Reserve has no plans to introduce a digital dollar, but this could change post-2024 elections. Globally, CBDC initiatives are expanding, with over 100 countries researching and over 39 countries testing or exploring related projects.
In legal news, Ripple Labs received a favorable ruling from the U.S. District Court for the Southern District of New York on July 13. The court, led by Judge Analisa Torres, decided that Ripple's XRP tokens are not considered securities when traded on digital asset exchanges, though they are deemed securities when sold to institutional investors. The SEC had initially targeted Ripple for issuing what it claimed were unregistered securities. Since the court's decision, Ripple's token value surged from $0.45 to $0.61, currently standing at $0.63.
An analysis triggered by Silicon Valley Bank's (SVB) collapse on March 10 has brought to light the potential risk of failure for about 186 U.S. banks. Factors like rising interest rates, high volumes of uninsured deposits, and losses in long-term assets contribute to this vulnerability, with a risk of affecting up to $300 billion in insured deposits.
In SEC-related news, the agency has now classified at least 68 digital currencies as securities following several lawsuits. This expanded list includes cryptocurrencies like Solana, Cardano, Polygon, and Decentraland, as well as those involved in legal actions against Binance and Coinbase. SEC Chairman Gary Gensler maintains that all cryptocurrencies, except Bitcoin, are within the SEC's regulatory scope. This move represents a significant step in the SEC's increasing role in cryptocurrency regulation.
In investment news, former Coinbase CTO Balaji Srinivasan wagered $2 million on Bitcoin reaching $1 million within 90 days, driven by anticipated U.S. hyperinflation. The bet, initiated on March 17 with James Medlock on Twitter, set a 40:1 odds scenario, where Medlock risked $1 million in USD tokens and 1 BTC if Bitcoin failed to hit the target by June 17. However, Bitcoin did not reach the forecasted price within the timeframe.
Finally, BlackRock's proposed iShares spot Bitcoin ETF has been listed with the Depository Trust & Clearing Corporation (DTCC), a potential precursor to SEC approval. Bloomberg ETF analyst Eric Balchunas views this as a positive sign towards the ETF's launch, with the SEC's decision deadline set for January 10, 2024. Approval could pave the way for other spot crypto ETFs.
In the cryptocurrency lending sector, Genesis Global Capital, part of the Digital Currency Group, is reportedly preparing for bankruptcy due to liquidity issues. This move follows SEC charges against Genesis and the Gemini exchange for offering unregistered securities. Genesis also faces financial challenges linked to the collapses of Three Arrows Capital and FTX, holding about $175 million in FTX at the time of its bankruptcy.
