Alpaca Finance Institutional Newsletter #8
EU regulators continue to make strides toward actionable guidelines for companies operating in the crypto market with the previously leaked MiCA draft now being moved into a parliamentary vote. This will give homogenous oversight over stablecoin, NFT and decentralized finance issuances. While most are happy to see clarity, the bill is opaque regarding best practices, particularly for NFTs and DeFi. Additionally, yet to be defined “occasional” crypto users in the EU are set to receive a simplified tax treatment, which was heavily voted in favor.
While the Greyscale termination of Genesis supporting its main operations might not make headlines, the subtext may. The subsequent reduction in Genesis’ headcount and the stepping down of its CEO seems to be due in part to the now long-forgotten 3AC crisis. This acts as a stark reminder that although the worst is certainly over, 3AC paired with the Terra meltdown may still have knock-on effects we cannot see or expect. This is certainly true for the Celsius bankruptcy case, with the majority of users still not able to withdraw assets, founders liquidating holdings prior to the halt in withdrawals, and the largest KYC breach in crypto history. So it seems that what was experienced earlier this year will continue to provide headwinds for the market.
News
- EU Council approves MiCA text, proposal moves to Parliament for a vote
- Celsius Exposes User Information in Public Court Docs
- Grayscale terminates Bitcoin trust material agreements with Genesis
- Nasdaq needs clear regulations before launching crypto exchange, says VP
Regulation
- Terra could leave a similar regulatory legacy to that of Facebook’s Libra
- US Treasury recommends lawmakers decide which regulators will oversee crypto spot market
- US senator bill seeks to cushion crypto exchanges from SEC enforcement actions
- European Parliament members vote in favor of crypto and blockchain tax policies
Products
- Cathie Wood’s ARK Invest to offer crypto strategies to investment advisors
- Mastercard launches new crypto fraud protection tool
- Bitwise launches Web3 ETF for institutional and retail investors
- Coinbase expands to Australia with focus on institutions in ‘months to come’
Funding
- NYDIG raises $720M as Bitcoin balance hits all-time high
- M31 Capital launches $100M Web3 investment fund with $50M in commitments so far
- Skyweaver’s parent company secures $40M in Series A funding
- a16z leads $40M raise for decentralized knowledge protocol
