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The U.S. Securities and Exchange Commission's (SEC) request to appeal its loss against Ripple has been denied by District Judge Analisa Torres, citing the SEC's failure to demonstrate crucial legal questions or substantial grounds for varying opinions. While the judge ruled in July that Ripple breached securities laws by selling XRP directly to institutional investors, it hadn't done so when selling XRP to the general public via exchanges. This decision raised questions regarding the extent of regulatory control over crypto. Although the SEC had planned to halt further decisions pending an appellate court's review, Judge Torres' recent ruling means the case will move forward, with a trial set for April 2024.
Ripple Granted Digital Asset License by Monetary Authority of Singapore
Ripple has secured a Major Payments Institution (MPI) license from the Monetary Authority of Singapore, enabling its subsidiary, Ripple Markets APAC Pte Ltd, to provide regulated digital asset token services in Singapore. CEO Brad Garlinghouse emphasized the strategic importance of Singapore, where they have doubled their staff in the past year and plan further expansion. The license aligns with Ripple's focus on enhancing cryptocurrency adoption in the fast-expanding Asia Pacific region. This comes as other prominent crypto entities such as Circle and GSR also received MPI licenses from the Singaporean authority this year.
Celsius Successor to Receive $450 Million in Cryptocurrency Seed Funding if Restart Plan Gains Approval
The potential successor to the defunct crypto lender, Celsius, named "NewCo", is pushing forward with plans to revive the business, backed by seed funding of up to $450 million in cryptocurrency and zero funded debt. The investment consortium Fahrenheit is set to manage NewCo and is committing up to $50 million for an equity position in the firm. They aim to repay affected customers by year's end and believe that this approach is the optimal recovery solution. The reorganization proposal, which saw over 98% creditor support, awaits approval by Judge Martin Glenn and regulatory bodies. A successful revival would be a first for the crypto industry, however, should the plan be rejected, Celsius could face liquidation, potentially reducing creditor recoveries.
Jump Trading Lost Nearly $300 Million in FTX Collapse, Per Michael Lewis' Book 'Going Infinite'
Jump Trading, a notable market-making firm in the cryptocurrency space, reportedly incurred losses nearing $300 million following the collapse of the FTX crypto exchange, as per Michael Lewis' new book "Going Infinite." The book, which narrates the experiences of Sam Bankman-Fried and the downfall of his exchange FTX, highlights that Jump Trading was among the most significant account holders unable to withdraw their funds during the crisis. Specifically, Jump Trading lost $206 million, while its affiliated trading firm, Tai Mo Shan Ltd., experienced losses exceeding $75 million. According to the book, the revelations come from documents found by Constance Wang, FTX's former COO.
Trading Desk Insights
Stock futures rebound after light jobs data sends yields lower. This comes on the back of Wall Street's losses prompted by strong job openings data, suggesting resilience in the labor market. The Dow lost 1.3%, notching its worst session since March. The S&P 500 tumbled 1.4% and at one point hit its lowest level since June while Nasdaq ended 1.9% lower. Consequently, the Dow's YTD performance turned negative, though the S&P 500 and Nasdaq remain bullish, advancing over 10% and 24% in 2023 respectively.
The recent JOLTS Job Openings data, clocking in at 9.61m—surpassing the 8.81m forecast—catapulted bond yields and saw the Nasdaq tumble by 2% post-release. Traders have their sights set on Friday’s nonfarm payroll at 8:30am EST—a pivotal metric in this climate.
Good news remains bad news in this market environment.
Bitcoin pulled back towards 27,200 after the initial pop on Monday. As the Dollar Index is retracing, we’re seeing the stock market and Bitcoin recover from the recent session lows. As long as prices remain above their 20-day and 50-day moving averages, we should expect further upside.
The inauguration of the ETH futures ETFs left much to be desired. Its lackluster inflow paints a picture of a tepid market and minimal appetite for ETH. The market's anticipation lies with spot ETFs, not their futures counterparts. Given that a BTC futures ETF has been in play for some time, the ETH variant shouldn't significantly sway market dynamics. Historical data supports this: the BTC futures ETF launch massively overshadowed the recent ETH debut, registering a whopping $1.01bn trading volume compared to the paltry $1.96m of the latter. This underscores the seemingly lukewarm desire to bolster crypto portfolios, aligning with the ongoing market consolidation.
The SEC's appeal motion concerning the Ripple case was turned down by District Judge Analisa Torres. Following the announcement, XRP witnessed a 5% uptick. Torres clarified in a concise statement on Tuesday that the SEC couldn't sufficiently demonstrate the presence of pivotal legal questions or substantial grounds for differing opinions. While this particular decision doesn't favor the SEC, the silver lining for the regulatory body is the scheduled trial in April 2024 to address remaining unresolved issues. The SEC might consider pursuing an appeal on the broader case in subsequent stages.
Technical Charts
Disclaimer
This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
The information on which the analysis is based has been obtained from sources believed to be reliable such as, for example, the company’s financial statements filed with a regulator, company website, company white paper, pitchbook and any other sources. While Secure Digital Markets has obtained data, statistics, and information from sources it believes to be reliable, it does not perform an audit or seek independent verification of any of the data, statistics, and information it receives.
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Crypto and/or digital currencies involve substantial risk, are speculative in nature and may not perform as expected. Many digital currency platforms are not subject to regulatory supervision, unlike regulated exchanges. Some platforms may commingle customer assets in shared accounts and provide inadequate custody, which may affect whether or how investors can withdraw their currency and/or subject them to money laundering. Digital currencies may be vulnerable to hacks and cyber fraud as well as significant volatility and price swings.
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