SEC Stabilization Act

SEC Stabilization Act

Fipto research team
June 13, 2023

Crypto has never been more political. The question is no longer whether Gary Gensler will leave, as discussed last week, but who will replace him.

While just last week A16z was planning to expand to London, within a few days, something happened. By announcing yesterday that Coinbase would stay in the United States, Brian Armstrong has made a bet that his successor will be crypto-friendly.

17% of American adults reportedly held crypto in 2022, equating to almost 46 million voters*. This is a positive sign that crypto clearly still has a say in the United States. Vox Populi Vox Dei.

One of our favorite indicators, the correlation index between Bitcoin and US indices, is approaching its historical low. This means that the risk premium on Bitcoin is not expensive, while the Nasdaq continues to break records, fueled by the artificial intelligence bubble.

Crypto-currency dynamics evolve under regulatory pressure

The U.S. is witnessing a transformative phase in the crypto space. Regulatory pressures have led to Bitcoin and Ether reserves on U.S. exchanges plunging below 50% for the first time since January 2017. This decline indicates users are transferring their assets either offshore or to private wallets - a decision fueled by the rising concerns surrounding the current regulatory landscape in the U.S.

The migration of crypto assets away from U.S. exchanges is noteworthy. It highlights the critical need for a supportive, well-balanced regulatory framework for cryptocurrencies. The inability to provide such a conducive environment could potentially threaten the U.S.'s position in the global crypto economy and raises significant questions about the future of digital assets within the country.

As the crypto dynamics continue to evolve, Fipto is committed to keeping you updated on these crucial shifts and what they mean for you. In the ever-changing world of Web3, we stand by our mission to guide our users through these transitions.

Stay tuned for more updates.

Bank of China advancing Crypto Institutionalization

The Bank of China's investment bank subsidiary, BOCI, has issued $28 million worth of digital structured notes on the Ethereum blockchain. This makes BOCI the first Chinese financial institution to issue tokenized securities in Hong Kong. The collaboration with UBS demonstrates the expansion of tokenization in the financial sector and the growing interest of traditional institutions in blockchain and digital assets. Additionally, Hong Kong's efforts to regulate stablecoins and its previous initiatives in tokenization and cryptocurrency futures indicate a commitment to blockchain technology. Overall, these developments contribute to the institutionalization of crypto by increasing the legitimacy and adoption of digital assets among financial institutions and regulatory authorities.

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June 13, 2023

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