Headlines
▌US Supreme Court Dismisses Binance Appeal, Upholds Ruling that US Securities Laws Apply to US Investors
The US Supreme Court on Monday dismissed the appeal of CZ and Binance. Previously, the Second Circuit Court ruled that US securities laws still apply to the cryptocurrency exchange, even if Binance has no physical headquarters in the US.
Since 2023, CZ and Binance have been facing legal disputes. The US Securities and Exchange Commission (SEC) accused the platform of illegally serving US citizens. At the end of 2023, Binance paid a $4.3 billion fine and forfeiture, and admitted to multiple felony charges. Based on trading volume, Binance is widely considered the world's largest cryptocurrency exchange.
The core dispute in this case was whether Binance is subject to US securities laws for serving US clients, even though it has no formal office or headquarters in the US. Binance had requested the Supreme Court to review the Second Circuit's ruling, which found that as long as US investors purchase tokens through Binance and the transactions occur on US servers, the platform must comply with US law, even if Binance has no offices in the US.
▌Trump May Issue Executive Order on Bank Crypto Business and Repeal Controversial Crypto Accounting Policy on First Day in Office
According to The Washington Post, sources say Trump is expected to issue an executive order on his first day as president, addressing bank cryptocurrency business and repealing a controversial cryptocurrency accounting policy that requires banks to treat digital assets held as liabilities on their balance sheets.
A source told The Washington Post, "The Trump team has made it clear this is a priority." These upcoming executive actions target cryptocurrency regulation, aiming to protect cryptocurrency investors from what Trump calls the "Washington bureaucratic swamp".
Market
As of press time, according to Coingecko data:
BTC last traded at $94,364.60, with a daily change of -0.2%;
ETH last traded at $3,130.23, with a daily change of -4.4%;
BNB last traded at $687.75, with a daily change of -0.8%;
SOL last traded at $182.12, with a daily change of -3.4%;
DOGE last traded at $0.3368, with a daily change of +0.2%;
XPR last traded at $2.52, with a daily change of +0.5%.
Policy
▌US Judge Allows Release of Prosecutor's Report on Trump's Efforts to Overturn 2020 Election
Court documents released on January 13 local time show that US District Judge Erin Cannon has allowed the Department of Justice to release the special counsel's report on CZ's attempts to overturn the 2020 election. The judge also extended the deadline for the release of the report on the Trump classified document case.
▌US Third Circuit Court Grants Coinbase Writ of Mandamus, Orders SEC to Reconsider Crypto Rulemaking Petition
Coinbase Chief Legal Officer paulgrewal.eth posted on X platform that Coinbase has just won a writ of mandamus petition in the Third Circuit Court. The court rejected the SEC's order dismissing its rulemaking petition, meaning the SEC must reconsider Coinbase's request and provide a more thorough explanation for why they refused to develop clear rules regarding cryptocurrencies.
The judge found "the SEC's order was conclusory and insufficiently reasoned, and therefore arbitrary and capricious, and we will grant Coinbase's petition in part and remand to the SEC for further explanation."
▌Trump Plans to Visit Los Angeles as Early as Next Week After Taking Office
According to The Wall Street Journal, sources say Trump plans to visit the fire-ravaged Los Angeles as early as next week to assess the damage and reconstruction needs, with the exact timing still undecided, but Trump advisers are considering setting it for later next week, after the Monday inauguration. Trump advisers want to ensure his appearance does not disrupt wildfire suppression efforts. Trump's response to the fires will be an early test of his presidency, as LA's rebuilding will require close coordination between federal, state and local officials. The fires have been raging in the region for over a week, causing 24 deaths, and may become one of the most devastating natural disasters in US history. Previously, Trump publicly clashed with Democratic California Governor Newsom, who demanded Trump personally visit LA to see the disaster, with Trump accusing him of incompetence and calling for his resignation, while Newsom accused Trump of politicizing the fires.
▌Robinhood to Pay $45 Million to Settle Securities Claims
The US "meme stock" broker Robinhood will pay $45 million to settle a series of securities claims.
The US Securities and Exchange Commission (SEC) announced today that Robinhood Securities LLC and Robinhood Financial LLC (collectively "Robinhood") have agreed to pay a total of $45 million in civil penalties to resolve over 10 charges related to its brokerage business.
The SEC stated that Robinhood Securities LLC and Robinhood Financial LLC violated over 10 separate securities law provisions, including failing to timely report suspicious transactions, failing to implement adequate identity theft protection measures, and failing to adequately address unauthorized access to Robinhood's computer systems.
▌US FDIC Vice Chair Calls for Banking Regulators to Issue New Digital Asset Guidance
US Federal Deposit Insurance Corporation (FDIC) Vice Chair Travis Hill has taken a critical stance on FDIC's digital asset position in a recent public speech, calling for banking regulators to issue new digital asset guidance.
Hill, appointed to the board by Republicans two years ago, criticized FDIC's role in pressuring banks to abandon crypto clients. He said: "FDIC's long-term goal is to reduce the number of unbanked. Depriving lawful customers of banking services is unacceptable, and regulators must work to stop this, as anyone who directly or indirectly coerces banks to cease serving lawful customers has no place at FDIC."
Current FDIC Chair Martin Gruenberg has informed staff he will resign on January 19, the day before Trump's inauguration. In Gruenberg's absence, Vice Chair Travis Hill will temporarily serve as acting Chair.
Blockchain Applications
▌Stargaze Announces Launch of Zero Gas Chain Intergaze Based on Initia
NFT application chain Stargaze has announced the launch of the zero gas chain Intergaze based on the Rollup interoperability protocol Initia. Intergaze is designed for creators and NFTs, with development support from Initia's Interwoven Stack, allowing seamless minting, sending and trading of NFTs across any chain, regardless of the VM used.
Cryptocurrencies
▌BlackRock Launches Bitcoin ETF on Cboe Canada
According to the official announcement, BlackRock has launched a new Bitcoin ETF, the iShares Bitcoin ETF, on Cboe Canada. The iShares ETF is currently trading on Cboe Canada under the ticker IBIT, with the US dollar-denominated trading ticker IBIT.U.
The iShares Bitcoin ETF seeks to reflect the performance of Bitcoin, before fees and liabilities of the iShares funds. The fund will invest all or substantially all of its assets in the iShares Bitcoin Trust ETF, while the US IBIT will invest and hold the majority of its assets for long-term Bitcoin holding. The iShares Bitcoin ETF will allow investors to gain exposure to Bitcoin through their brokerage accounts.
▌Bitfinex Report: Surging Bond Yields, Gloomy Economic Outlook Pose Consolidation Risks for Bitcoin
According to the latest Alpha report from Bitfinex, Bitcoin's relative strength under macroeconomic pressure can be attributed to an optimistic attitude towards potential regulatory changes. The prospect of a new term for President-elect Donald Trump and a more favorable cryptocurrency policy have boosted market confidence, providing a counterbalance to the broader challenge of risk assets.
As BTC hovers around the critical $90,000 support level, the market may enter a range-bound environment characterized by consolidation. Rising government bond yields, hawkish Federal Reserve signals, and outflows from ETF funds indicate a changing macroeconomic backdrop that poses challenges for risk assets.
However, Bitcoin's resilience compared to traditional stocks suggests it may continue to attract investor interest, primarily as regulations become clearer. Currently, Bitcoin holders face a balancing act, having to navigate macroeconomic headwinds while awaiting potential tailwinds from policy and sentiment changes.
▌Viewpoint: Traditional markets are driving cryptocurrency price trends, and ETF trading time limits may exacerbate volatility during opening hours
Frank Chaparro, Director of Special Projects at The Block, shares the view that traditional market forces are now driving cryptocurrency price trends with the launch of spot Bitcoin ETFs. After the release of US employment data on January 12th, the crypto market showed a high correlation with the Nasdaq index, highlighting the far-reaching impact of macroeconomic conditions.
Greg Guttas, an analyst at Flowdesk, points out that the mismatch between ETF trading hours (6.5 hours per day) and the 24/7 nature of cryptocurrency trading may exacerbate volatility during opening hours. Although the crypto industry faces favorable factors such as improved regulatory environments and increased bank participation, current market sentiment suggests these positives may struggle to offset the pressure from macroeconomic headwinds.
▌Viewpoint: DEXs have replaced venture capital markets in token price discovery
According to an analyst known as Ignas, PENGU and CGPT are the only recently launched tokens that have not experienced a full-blown crash after listing on Binance. As of the time of writing, PENGU is trading at $0.028, down 60% from its $0.07 listing price, while CGPT has declined 4.7% since its January 10th listing. Meanwhile, memecoins like Shiba Inu (CAT) and the native token of Magic Eden (ME) have plummeted around 70% since their listings.
Ignas sees this as a positive shift for the market: "Previously, price discovery happened in the private venture capital market, with CEXs (centralized exchanges) providing exit liquidity. Now, DEXs are responsible for price discovery, and CEXs provide exit liquidity."
Ignas further emphasizes this new dynamic using the example of the Velodrome (VELO) token listing. After Binance created a trading pair for VELO on its platform, the price dropped nearly 70%, currently trading at $0.1154. This change is attributed to the dominance of "smart money" traders in decentralized exchanges.
Additionally, Ignas notes that the presence of centralized exchanges providing exit liquidity is healthy for the market.
▌Report: Driven by Trump's victory and institutional demand, crypto OTC trading volume surges over 100% in 2024
According to Finery Markets' 2024 review report, the cryptocurrency over-the-counter (OTC) market saw significant maturation last year, with a year-over-year growth rate of 106%. The report highlights that this was a vibrant year for institutional and large-scale digital asset trading, driven by key macroeconomic and industry-specific developments, including the launch of Bitcoin and Ethereum exchange-traded funds, Donald Trump's victory, and the continued institutionalization of digital assets.
OTC trading refers to direct off-exchange transactions between buyers and sellers, often facilitated by brokers or trading desks. This method allows institutions and high-net-worth individuals to execute large trades with minimal market impact. The analysts write, "As the industry matures, traditional finance leaders' stance has shifted from skepticism to neutrality or acceptance, with institutions either entering the crypto market or planning acquisitions to build out their capabilities."
Key Economic Developments
▌97.3% probability of the Fed keeping rates unchanged in January
According to the CME FedWatch tool, the probability of the Federal Reserve keeping rates unchanged in January is 97.3%, with a 2.7% chance of a 25-basis-point rate cut. The probability of maintaining the current rate through March is 79.8%, with a 19.7% chance of a cumulative 25-basis-point rate cut and a 0.5% chance of a 50-basis-point cut.
▌Trump team explores gradual tariff increases of 2%-5% per month
According to media reports citing informed sources, the Trump economic team is discussing gradually increasing tariff rates on a monthly basis. The goal of this incremental tariff hike is to strengthen negotiating leverage while helping to avoid a surge in inflation. The sources say one proposal involves a schedule of approximately 2% to 5% monthly tariff increases, leveraging executive powers under the International Emergency Economic Powers Act. The plan is still in the early stages and has not been submitted to or evaluated by President Trump himself. Advisors involved in the discussions include potential Treasury Secretary Scott Bessent, National Economic Council Director-designate Kevin Hassett, and National Economic Council Chairman-designate Stephen Miller.
▌New York Fed survey: US consumer inflation expectations complex, household finances mixed
According to a survey released by the New York Fed on Monday, US consumers' expectations for the inflation path exhibited a complex picture in December, while their concerns about household debt-servicing ability have clearly intensified. The New York Fed's latest consumer expectations survey noted that respondents expect the inflation rate to remain at 3% a year from now. Notably, the three-year-ahead inflation expectation rose from 2.6% in November to 3%, while the five-year-ahead inflation expectation declined from 2.9% to 2.7%. Additionally, the survey revealed that uncertainty about the inflation outlook has increased in the one-year and three-year forecasts, but decreased in the five-year forecast. In terms of specific price expectations, the survey showed an uptick in food price expectations, but declines in expectations for other key categories, with gasoline price expectations hitting the lowest level since September 2022. Home price expectations remained relatively stable at 3.1%. Furthermore, the New York Fed's survey found a mixed picture in households' views on their own financial situations. While more respondents expressed optimism about their personal finances, they also indicated expectations of smaller income and earnings growth. Consumers' perceptions of the job market outlook were also varied.
Jinse Encyclopedia
▌What is a Sybil attack in crypto?
In the cryptocurrency environment, Sybil attacks often target the decentralized nature of blockchain platforms. Even if they do not target the cryptographic algorithms of cryptocurrencies, disrupting the underlying peer-to-peer network infrastructure that cryptocurrencies rely on can lead to service interruptions, fund losses, and a decline in user trust. Attackers can focus on specific nodes or servers to interfere with the consensus process, transaction validation, or node-to-node communication. This can result in network fragmentation, processing delays, or even a complete halt in operations.
Disclaimer: Jinse Finance, as a blockchain information platform, publishes articles solely for informational purposes and does not provide any actual investment advice. Please everyone establish the correct investment concept and be sure to improve risk awareness.
