Today's Newsletter content 📃

Trump Proposes CFTC Take Charge of Crypto Regulation

Donald Trump’s incoming administration plans to shift crypto regulation from the SEC to the CFTC, aiming for fewer restrictions and greater innovation. The CFTC, already regulating commodities like gold and oil, would oversee Bitcoin, Ethereum, and crypto exchanges. Former CFTC chair Chris Giancarlo supports the move but highlights the need for more resources. This change intends to end the SEC’s aggressive actions under Gary Gensler and provide clarity for the crypto industry. Trump’s team also plans to appoint a ‘crypto czar’ to shape U.S. crypto policy, marking a pivotal shift for blockchain innovation in the U.S.

Brazil Proposes Strategic Bitcoin Reserve

Brazil has introduced a bill to create a Bitcoin reserve, RESBit, to protect against currency risks and back its digital currency, Drex. Inspired by El Salvador, the plan caps Bitcoin at 5% of Brazil’s $355 billion reserves. RESBit would be managed using blockchain and AI, ensuring transparency and security. Meanwhile, Brazil’s crypto imports soared to $1.4 billion in September 2024, a 40% increase from last year, with stablecoins dominating 70% of transactions. The bill is under review, signaling Brazil’s growing commitment to integrating Bitcoin into its financial system.

Pantera's $740K Bitcoin Prediction by 2028

Pantera founder Dan Morehead predicts Bitcoin could reach $740,000 by April 2028, fueled by a compound growth rate of 88% and pro-crypto policies under Trump’s presidency. At this price, Bitcoin’s market cap would hit $15 trillion, rivaling major global assets. Recent market trends, regulatory optimism, and Bitcoin’s alignment with the global M2 money supply support this bullish outlook. Meanwhile, options traders estimate a 50% chance of Bitcoin crossing $100K by 2024's end, with broader adoption and regulatory tailwinds paving the way for continued growth in the blockchain sector.

L2 Tokens Show Recovery After Months of Stagnation

L2 tokens are bouncing back, with market capitalization reaching $17B after months of sideways trading. Leading networks like Arbitrum and Optimism saw significant growth, expanding by nearly 50% in the past quarter. L2 chains remain pivotal in the Ethereum ecosystem, driving ETH burns through competition for blobs and calldata. Base, despite being tokenless, leads in transaction efficiency. As L2 chains scale and lower transaction costs, they regain attention for hosting super-apps and supporting DeFi activity, despite facing competition from L1 chains like Solana. This recovery signals renewed interest and innovation in the L2 space.

Drug Cartels Allegedly Using Tether for Money Laundering

Reports reveal that drug cartels, including the Sinaloa cartel, are using Tether (USDT) to launder money across borders, especially between Mexico, Colombia, and the U.S. USDT is reportedly sold at discounts in Mexico as drug proceeds and resold in Colombia via OTC and P2P platforms. Tether has denied involvement, emphasizing its ability to monitor and freeze illicit transactions. However, concerns about Tether’s transparency persist, with critics questioning its governance and recent $100 million investment in Adecoagro, a Latin American agricultural company. The stablecoin dominates over 75% of the market despite ongoing scrutiny.

Altcoin ETFs: The Next Big Move in Crypto?

Following Bitcoin ETF success, Grayscale and Bitwise are exploring ETFs for SOL, XRP, HBAR, ADA, and AVAX. VanEck filed for a Solana ETF, citing its scalability, while XRP gained momentum after its legal win, with a 103% price surge. Bitcoin ETFs hit $100B AUM in 10 months, with $773M inflows in a single day. DOGE and HBAR also caught attention, as institutional interest diversifies beyond Bitcoin and Ethereum. This marks a shift toward broader crypto exposure, with altcoin ETFs poised to drive the next wave of innovation and adoption.

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