Following a recent court ruling in Illinois classifying Bitcoin and Ether as commodities, stakeholders in Nigeria are advocating for a similar approach from the Nigerian Securities and Exchange Commission (SEC) to enhance regulatory clarity.
This call for classification comes amidst the growing importance of cryptocurrencies in global finance.
Lucky Uwakwe, chairman of Nigeria’s Blockchain Industry Coordinating Committee (BICCoN), emphasized the necessity of defining crypto asset classes clearly.
In an interview with Cointelegraph, Uwakwe stressed, “The Nigerian SEC should make rules that define the asset class of crypto assets or break respective crypto into asset classes and explain how such crypto qualifies as securities or commodities.”
He noted the distinction made by the US SEC and the Commodity Futures Trading Commission (CFTC) regarding Bitcoin and Ether as commodities, while highlighting how protocols like proof-of-stake (PoS) or proof-of-work (PoW) could affect the classification of other crypto assets.
In Nigeria, however, the focus of the Commodity Board has traditionally been on physical commodities like agricultural products, with minimal attention given to digital commodities.
Oladotun Wilfred Akangbe, chief marketing officer at Flincap, a platform for African over-the-counter crypto exchanges, underlined the diverse nature of cryptocurrencies and the varied interest from Nigerian governmental bodies.
READ MORE: German Government Resumes Bitcoin Sales, Sparking Market Volatility Concerns
“Cryptocurrencies like Bitcoin and Ethereum have become valuable commodities in global markets,” Akangbe remarked, advocating for distinct regulatory strategies tailored to these foundational cryptocurrencies compared to others.
Akangbe suggested that the SEC concentrate primarily on cryptocurrencies used for fundraising, such as initial coin offerings (ICOs).
Another local crypto analyst, Rume Ophi, argued for individual scrutiny of each cryptocurrency to determine its classification as a security or commodity, emphasizing their uniqueness.
These recommendations are pivotal as Nigeria seeks to establish a robust regulatory framework for digital assets.
By classifying Bitcoin and Ether as commodities, the Nigerian SEC can offer much-needed clarity and stability to the market.
This approach not only fosters innovation but also ensures adherence to regulatory standards.
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During a recent CNBC interview, BlackRock CEO Larry Fink admitted he was “wrong” about Bitcoin, now recognizing it as “digital gold” and a “legitimate” financial instrument.
Speaking with CNBC’s Jim Cramer, Fink said, “I was a skeptic, a proud skeptic,” but his perspective changed after studying the decentralized asset.”
He acknowledged Bitcoin’s potential for uncorrelated returns, stating, “It is a legitimate financial instrument that allows you to maybe have uncorrelated type of returns.
“I believe it is an instrument that you invest in when you’re more frightened, though. It is an instrument when you believe countries are debasing their currency by excess deficits, and some countries are.”
Fink highlighted the economic and political instability in certain countries, suggesting that Bitcoin offers an alternative investment opportunity beyond local geographies for individuals in those regions.
In May, BlackRock’s iShares Bitcoin Trust (IBIT) surpassed Grayscale Bitcoin Trust (GBTC) to become the world’s largest Bitcoin exchange-traded investment fund.
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By July 15, IBIT’s year-to-date inflows had exceeded $18 billion.
The asset manager also incorporated shares of the Bitcoin ETF into its Strategic Income Opportunities Fund (BSIIX) and the Strategic Global Bond Fund (MAWIX), emphasizing Bitcoin’s potential benefits for income-focused investors, including retirees.
CoinShares’ most recent inflows data, released on July 15, showed that Bitcoin investment vehicles recorded their fifth-highest week of inflows, with over $1.35 billion invested in a single week.
Bitcoin’s price reacted positively to Fink’s comments and other bullish developments, including the German government selling its final Bitcoin holdings, which had been creating significant selling pressure by dumping 50,000 coins on the market.
The decentralized asset saw four consecutive days of gains, with the nine-day exponential moving average crossing back over the 200-day exponential moving average.
This technical movement reversed several weeks of negative price action, pushing Bitcoin back above the $60,000 mark.
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Tokenized United States treasuries are projected to reach $3 billion by the end of 2024, highlighting the growing benefits and widespread adoption of financial asset tokenization.
To achieve the $3 billion mark by year-end, tokenized treasuries must nearly double their current value.
This growth is driven by decentralized autonomous organizations (DAOs) increasingly diversifying their holdings into tokenized US treasuries, says Tom Wan, a research strategist at 21.co.
The anticipated growth to $3 billion is supported by major players like Securitize and BlackRock. In a July 15 X post, Wan noted:
“With the two projects allocating to tokenized US treasury, we could be seeing the total market cap of tokenized US treasury increasing to $3B+ by the end of 2024.”
Data from Dune shows that tokenized US government securities have already accumulated over $1.6 billion in total assets under management (AUM).
BlackRock’s USD Institutional Digital Liquidity Fund, tickered BUIDL, has emerged as the largest tokenized treasury fund, surpassing Franklin Templeton’s fund.
In just six weeks, BUIDL reached over $375 million in market capitalization, now valued at over $528 million and holding a 28.8% market share.
Wan believes BlackRock’s fund will significantly boost inflows into tokenized treasuries.
READ MORE: Ether Surges to $3,300 Amid Anticipation of Spot ETH ETFs Launch
He explained:
“As the strategy laid out by Securitize and Blackrock, they intend to provide diversification for the crypto ecosystem to access risk-free US treasury yield without needing to leave the blockchain ecosystem.”
Tokenization is seen as a potentially massive market opportunity.
According to the Global Financial Markets Association (GFMA) and Boston Consulting Group, the global value of tokenized illiquid assets could grow to $16 trillion by 2030.
Citigroup analysts offer a more conservative estimate, predicting that an additional $4 trillion to $5 trillion worth of tokenized digital securities will be minted by 2030, as stated in a 2023 report.
Major companies are increasingly recognizing the potential of tokenization. For instance, Goldman Sachs plans to launch three new tokenization products later this year, driven by rising client interest.
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Tether is enhancing its transparency efforts for its stablecoin through a significant new hire.
On July 15, Tether announced the appointment of Philip Gradwell, previously the chief economist at Chainalysis, as its new head of economics.
In his role, Gradwell will focus on quantifying and communicating the usage of Tether’s USDT to regulators and stakeholders.
After a six-year tenure at blockchain analytics firm Chainalysis, Gradwell is set to analyze USDT data globally.
Since 2017, USDT has consistently recorded daily trading volumes in the billions, with the latest 24-hour volume reported at $32.23 billion, according to Messari.
“Many people still view digital assets as a mystery, partly due to the industry’s focus on technology rather than practical use cases,” Gradwell said in a statement.
His goal at Tether is “to shift this conversation toward understanding how digital assets are used in the real economy, and how USDT is supporting dollar hegemony.”
Gradwell’s responsibilities will include engaging with regulators, particularly in the United States. Tether’s interactions with federal agencies have involved both cooperation and scrutiny.
In February 2021, Tether and its sister company, Bitfinex, reached an $18.5 million settlement with the New York Attorney General over allegations that Tether misrepresented the amount of fiat collateral backing its tokens.
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The settlement required Tether to provide quarterly reserve reports for two years and banned it from operating in New York.
Tether has made strides in cooperating with government authorities, including integrating the United States Federal Bureau of Investigation into its platform.
In March, Tether assisted the US Department of Justice in recovering approximately $1.4 million in stolen USDT from an unhosted digital wallet.
According to Tether, Gradwell will play a key role in “enhancing communication with regulatory bodies and stakeholders.”
In recent years, increased government scrutiny of the crypto industry has bolstered USDT’s market share.
The stablecoin now holds a 69% market dominance, with Circle’s USD Coin following. Data from DefiLlama shows USDT’s current market capitalization at $112 billion.
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Bitcoin sentiment has dramatically shifted from “extreme fear” to “greed” and “FOMO” within just a few days, driven by a 12% gain over the last week.
On July 16, crypto analytics platform Santiment posted on X, advising caution amidst the sudden bullish trend.
They warned that investors should be careful when “the crowd has collectively become so bullish without many signs of fear.”
Santiment attributed the market’s optimism to investors favoring the potential election victory of Donald Trump and his crypto-friendly running mate JD Vance in November.
READ MORE: Ether Surges to $3,300 Amid Anticipation of Spot ETH ETFs Launch
During the period from July 13 to July 16, the Crypto Fear & Greed Index for Bitcoin sentiment flipped from “extreme fear” to “greed” as the crypto market rallied.
Bitcoin has surged by 12.8% in the last week, currently trading at $64,508, according to TradingView data.
Bitcoin exchange-traded funds (ETFs) have also shown strength, with eleven spot Bitcoin funds seeing net inflows of $300.9 million on July 15.
Leading the inflows were funds from BlackRock and Ark 21 Shares, each with $117.2 million on that day, as reported by FarSide Investors.
Bitcoin’s price rebounded from a July 5 low of $53,500, which followed significant sales by German government-linked entities and negative sentiment due to fears about $8.5 billion in BTC being returned to creditors of the collapsed crypto exchange Mt. Gox.
After Bitcoin surpassed the $62,000 mark, several analysts told Cointelegraph that an improving macro-environment suggests that the worst “is likely behind us.”
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Several Filipino musicians’ YouTube accounts have been hacked and are now promoting an XRP scam.
On July 15, numerous accounts belonging to renowned musicians in the Philippines were observed promoting a deepfake video of Ripple CEO Brad Garlinghouse predicting that XRP might reach $4.
Such scams typically direct victims to phishing websites to steal their funds.
A report from the local media outlet Bitpinas revealed that the YouTube pages for the local band Ben&Ben, boyband SB19, and musician Rico Blanco were all compromised.
Filipino musicians’ YouTube accounts seen promoting XRP scam
Ben&Ben, a nine-piece pop band with over 3 million followers on YouTube, announced on July 15 that their account had been compromised.
On their official Facebook page, the band stated that their YouTube channel was hacked, and their team was working to recover the page.
During this period, the account livestreamed a common XRP scam.
A few hours later, the band announced that they had restored and recovered part of their account from the hijackers.
However, the account continued to stream content by the attackers. As of now, the XRP scam livestream has ceased.
Simultaneously, Filipino boyband SB19 also announced that their YouTube account with 3.6 million followers had been compromised.
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The band’s management swiftly recovered the account and reported the incident to the relevant authorities.
Meanwhile, musician Rico Blanco also appeared to be a victim of the hacks.
Although there are no official statements from the artist yet, Redditors flagged that his account, with over 700,000 followers, had been compromised.
The account is currently blocked on YouTube for violating the platform’s guidelines.
Deepfake XRP scam on YouTube
Scammers using a deepfake of Ripple’s Garlinghouse have been active on YouTube for a while now.
In December 2023, Reddit users flagged a fraudulent video of Garlinghouse asking XRP holders to send their coins to a specific address and promising to send back double the amount — a common line used by crypto fraudsters.
Redditors reported seeing the fraudulent advertisements between November and December 2023 and claimed to have already reported them to Google.
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XRP, after reaching a four-year low, now shows signs of a potential resurgence against Bitcoin.
Driving this positive shift is the emergence of a triple bottom pattern, a classic bullish formation indicating robust support.
This pattern forms when the price hits three distinct lows around the same level, followed by a breakout above the neckline resistance.
As of July 12, the XRP/BTC pair tested key support near 793 satoshis, with analysts eyeing a breakout scenario.
The weekly relative strength index (RSI) hovered at 36, suggesting XRP’s undervaluation relative to Bitcoin and bolstering optimism for recovery.
A decisive close above 793 satoshis could propel XRP/BTC towards its triple bottom target of approximately 1,055 satoshis.
Conversely, failure to breach this level might see a decline towards the local bottom around 664 satoshis, marking a potential 15% drop from current levels by August.
The recent strength in XRP against Bitcoin contrasts with market dynamics, including Germany’s sizable BTC sell-off, amounting to $2.69 billion in outflows from government-associated wallets since mid-June.
Additionally, the ongoing reimbursement of 140,000 BTC to Mt. Gox creditors has tempered interest in Bitcoin, contributing to XRP/BTC’s 20% gain in July.
READ MORE: Global Crypto Trading to Exceed $108 Trillion by 2024, Driven by US and Europe
Bitcoin’s dominance slipped marginally to 54.55% on July 12, suggesting a possible shift of trader interest towards altcoins amid Bitcoin’s consolidation phase.
XRP remains relatively underbought compared to other top cryptocurrencies in 2024, with year-to-date returns at approximately -26.50%.
XRP/BTC’s weekly RSI rebounded from its two-year low around 33, historically preceding a substantial rally, hinting at potential upward movement.
In contrast, Bitcoin’s RSI corrected sharply from an overbought 88 in March to a neutral 45.50 as of July 12, indicating waning bullish momentum and potentially benefiting undervalued major altcoins like XRP in the near term.
Furthermore, anticipation surrounding XRP’s forthcoming exchange-traded fund launch could further bolster its market position.
Overall, XRP’s technical indicators and market dynamics point towards a pivotal period with potential for significant price movements against Bitcoin in the weeks ahead.
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The German government resumed selling its Bitcoin holdings on July 12, following the return of some previously transferred BTC to its Bitcoin wallet.
Arkham blockchain data indicates that the German government executed multiple transactions, transferring a total of 3,200 Bitcoin across various platforms. Bitstamp, Kraken, and Coinbase each received 400 BTC, while two unknown addresses received 1,000 BTC and 500 BTC respectively.
Crypto analyst Michaël van de Poppe speculated on X that the remaining Bitcoin, worth approximately $300 million, would likely be sold on July 12.
Historically, large sales by government entities can lead to increased market volatility. However, the careful distribution of Bitcoin across different platforms might help prevent sudden and extreme price swings.
The German government’s wallet, containing Bitcoin seized from a film pirating website in January, has transferred billions of dollars in Bitcoin since June 19, with a noticeable increase in activity at the start of July.
READ MORE: Bitcoin Surges to One-Week Highs Following US Inflation Data Surprise
Starting with 50,000 Bitcoin, the wallet has sold a significant portion of its holdings over the past month. With 5,800 Bitcoin remaining, the German government has sold 44,200 BTC — 88.4% of the original 50,000.
On July 11, the German government’s Bitcoin wallet temporarily fell below 5,000 BTC after transferring approximately $615 million worth of Bitcoin to various cryptocurrency exchanges, including Coinbase, Bitstamp, Kraken, Flow Traders, and two unknown addresses, according to blockchain analytics firm Arkham.
German lawmaker and Bitcoin advocate Joana Cotar criticized the large-scale sale of Bitcoin, suggesting that the cryptocurrency could have been utilized as a safeguard against traditional financial system risks by adopting it as a “strategic reserve currency” instead.
The recent decline in Bitcoin’s price can be attributed to several factors, including Germany’s significant sale of BTC and concerns that Mt. Gox is releasing a substantial amount of Bitcoin worth over $8 billion to its creditors.
This has led to market uncertainty and downward pressure on prices.
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The Law Commission of the United Kingdom has concluded that decentralized autonomous organizations (DAOs) do not require separate legal oversight and can be integrated within existing financial regulations and tax frameworks.
This decision was detailed in a scoping paper that highlighted the lack of a unified definition for DAOs.
The commission, which focuses on law reforms, noted the impracticality of a blanket law for DAOs due to their diverse nature and tendency to adapt to local judicial requirements.
DAOs encompass a wide range, from pure DAOs to hybrid arrangements and digital legal entities, complicating efforts to characterize them for legal reforms.
These organizations often function as trustless entities, adding to the regulatory challenge.
“The Law Commission has already agreed with Government to undertake a review of trust law.
“This will consider — in general terms rather than in the DAO context specifically — the arguments for and against the introduction of more flexible trust and trust-like structures in England and Wales.”
In addition, the commission recommended reviewing the Companies Act 2006 to better oversee DAOs operating as limited liability partnerships.
They also proposed examining reforms for nonprofit DAOs and current Anti-Money Laundering (AML) regulations.
The commission emphasized the need for international cooperation to develop a global AML and tax framework for DAOs.
READ MORE: Bitcoin Long-Term Holders Remain Resilient Amid Deepest Correction of Current Price Cycle
Parallel to these developments, the Solicitors Regulation Authority (SRA) in the United Kingdom issued a warning regarding a Bitcoin scam involving fake lawyers.
Scammers impersonated legitimate law firms, Attwaters Solicitors and Attwaters Jameson Hill Solicitors, using personal data and Bitcoin payments from potential victims to prevent information leaks.
The SRA advised the public to exercise caution and verify the authenticity of any suspicious correspondence.
This can be done by directly contacting the law firm through reliable means and checking the SRA’s records to confirm the firm’s authorization.
These steps are crucial in ensuring the public does not fall victim to such fraudulent schemes, especially with the rise of digital and decentralized technologies like DAOs.
The commission’s recommendations and the SRA’s warning highlight the need for robust regulatory and security measures in this evolving landscape.
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Bitcoin long-term holders are showing remarkable resilience amid the deepest correction of the current BTC price cycle, according to crypto analytics firm Glassnode.
In the latest edition of its weekly newsletter, The Week Onchain, Glassnode highlighted the strength of Bitcoin holders despite significant market downturns.
Bitcoin is facing its most substantial drawdown of the current bull market, yet its steadfast “diamond hands” are not showing signs of panic.
Glassnode noted, “If we look at performance indexed to the date of the Bitcoin halving, we can see that the current cycle is one of the worst performing.”
This is despite the market reaching a new cyclical all-time high before the halving event in April, an unprecedented occurrence.
Unlike previous well-known capitulation events, Glassnode’s analysis reveals that long-term holders are steadfast, even with BTC/USD hitting four-month lows of $53,500.
The newsletter stated, “Looking at losses locked in by both Long-Term and Short-Term Holders, we note that the loss-taking events this week account for less than 36% of the total capital flows across the Bitcoin network.”
Significant capitulation events in September 2019, March 2020, and May 2021 saw losses exceeding 60% of capital flows over several weeks, with contributions from both long-term and short-term holders.
Long-term holders are defined as those holding Bitcoin for more than 155 days, while short-term holders have it for less, indicating a more speculative nature.
Glassnode’s chart shows the lack of long-term holder participation in onchain selling at a loss during the BTC price drawdown.
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They stated, “Following 18 months of up-only price action after the FTX implosion and 3 months of apathetic sideways trading, the market has endured its deepest correction of the cycle.”
Despite this, the drawdowns in the current cycle remain favorable compared to historical cycles, indicating a robust underlying market structure.
As Cointelegraph reported, short-term holders and day traders are particularly affected as profit margins turn negative.
At $53,500 lows, short-term holders held nearly 2.8 million BTC, or 14.2% of the total supply, at an unrealized loss.
Concerns are also rising among miners, with a hashrate capitulation phase reminiscent of the bear market bottom in late 2022.
Charles Edwards, founder of Capriole Investments, highlighted that the recent drawdown has been preceded by a Hash Ribbon Capitulation signal, suggesting that a buy signal could still be weeks away.
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