Crypto enthusiasts can now breathe a sigh of relief. The SEC has decided not to push for a court ruling that would classify popular crypto tokens like Solana (SOL-USD), Cardano (ADA-USD), and Polygon (MATIC-USD) as securities in its lawsuit against Binance. This shift, revealed in a filing on July 30, 2024, means the court won’t need to decide whether these tokens are securities for now.

What’s Happening with the Tokens?

The SEC initially targeted several tokens, including BNB (BNB-USD), Binance USD (BUSD-USD), Solana, Cardano, Polygon, and others, in its broad claim that these could be classified as securities. In June 2023, the SEC argued that at least 68 tokens were securities, potentially affecting over $100 billion in the crypto market, according to CoinTelegraph.

Changing Views on Crypto

The SEC’s retreat comes amid shifting attitudes towards crypto in the US. On July 27, former President Donald Trump pledged to end the “war on crypto” if re-elected, promising to make the US the “crypto capital of the planet” and vowing to replace SEC Chair Gary Gensler. Meanwhile, Democratic members of Congress are also reassessing their stance, with some calling for a more “forward-looking approach” to digital assets. Advisors to Vice President Kamala Harris are reportedly reaching out to crypto firms to mend ties with the industry, according to DLNews.

A Silver Lining for Crypto Investors

Amidst this positive development, investors might want to consider exploring crypto-related stocks that could benefit from this news. With the SEC stepping back, companies involved in crypto infrastructure, exchanges, and blockchain technology may see a boost. Stocks of firms like Coinbase (COIN) and crypto mining companies might gain traction as the regulatory uncertainty around major tokens eases.

Investors can compare the cryptocurrency stocks using the TipRanks Stocks Comparison tool.

The SEC faces legal challenges, PayPal’s stablecoin grows with Solana integration, and state-backed stablecoins gain momentum.

Here are some headlines crypto investors may have missed.

SEC Faces Legal Hurdles in Stablecoin Regulation

Binance and CZ have pleaded guilty to unlawful activities, paid billions in fines, and face huge legal hurdles, but the SEC just suffered a legal setback in its Binance efforts. The SEC closed its inquiry into Binance USD stablecoin issuer Paxos without recommending enforcement.

Paxos should celebrate the lack of enforcement action, but it may potentially affect crypto regulation.

Stablecoins will benefit as the SEC faces more legal battles to designate the whole crypto sector as securities.

Since these cryptoassets, almost all of which are backed 1:1 by the USD, were designed to be used as a medium of exchange rather than an investment vehicle, these setbacks may allow for more objective discussions.

PayPal’s PYUSD Gains Traction with Solana Integration

PayPal’s stablecoin initiatives have persisted after a low-profile launch and an SEC probe. Forbes reports that recent integration with the Solana blockchain has increased the token’s market cap to above $500 million. DeFillama data suggests that Ethereum’s supply is $399 million, 77% of the total supply, with the rest on Solana.

Solana supply jumped 58% in the first week of integration, while Ethereum supply dropped 6%.

Given PYUSD’s consumer name familiarity and Solana integration’s rise, PayPal and PYUSD appear poised for continued expansion and use.

Wyoming’s State-Backed Stablecoin WYST Makes Waves

Minting of the state-backed token began in May 2024 after some pushback and legislative issues. The 1:1 U.S. dollar-backed token will commence circulation in 2024 under the ticker WYST.

Senate Enrolled Act 85: Wyoming Stable Token Act authorized the Stablecoin Commission to create the first U.S. state-backed stablecoin. The Ethereum-based WYST will only be exchanged on centralized exchanges like Coinbase.

While it is too early to judge how successful or widespread WYST will be, the fact that one state has gone so far so rapidly shows how popular stablecoins are.

Stablecoins are here to stay and are vital to TradFi, centralized exchanges, DEX, and crypto investors of all sizes.

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US Securities and Alternate Fee (SEC) Chairperson Gary Gensler has mentioned that the company plans to control the crypto trade as its excessive volatility poses grave dangers to buyers.

In a Twitter video, Gary defined why the SEC needs to control the market beneath securities legislation. The highest market regulator additionally mentioned that his workplace is in talks with the crypto exchanges to deliver them beneath its purview just like the securities exchanges. Gensler acknowledged that discussions are additionally on to get some digital cash registered as securities.

We’ve got guidelines in our capital markets to safeguard market integrity & defend towards fraud & manipulation. If an organization builds a crypto market that protects buyers & meets the usual of our market laws, individuals will extra doubtless have higher confidence in that market. pic.twitter.com/ZxdBfvmqXP

— Gary Gensler (@GaryGensler) July 28, 2022

At the moment, the crypto market has no authorized framework to safeguard its integrity or defend buyers from fraud and manipulation. It has been a serious concern for regulators.

Gensler mentioned that he needs to revive confidence out there by way of regulation. 

Bitcoin, the world’s largest cryptocurrency by market capitalization, fell by greater than half of its worth to $24,000 from its all-time excessive of $67,566 in August 2021.

In different information, the US Federal Reserve and the Federal Deposit Insurance coverage Company (FDIC)  have issued a discover  to the bankrupt crypto lending agency Voyager to cease making “false claims” to its clients that their funds are insured by the federal government. 

”Primarily based on the data gathered so far, it seems that these representations doubtless misled and had been relied upon by clients who positioned their funds with Voyager and would not have rapid entry to their funds,” the Federal Reserve and FDIC mentioned in a joint assertion.

Along with the @FederalReserve, we issued a letter to #VoyagerDigital, demanding they stop and desist from making false and deceptive statements on their FDIC deposit insurance coverage standing and take rapid motion to right these false statements. https://t.co/sWv1n7z710

— FDIC (@FDICgov) July 28, 2022

Voyager filed for chapter on July 5 after it was revealed that it had invested $661 million within the failed crypto hedge fund 3AC.

Cryptocurrency Costs

The worldwide crypto market capitalisation went up by 4.65 per cent to $1.19 trillion as of 4:20 pm. Nevertheless, the worldwide crypto quantity went up by 16.05 per cent to $110.75 billion, in keeping with Coinmarketcap knowledge.

Bitcoin (BTC) was buying and selling at $24,045.58, up by 4.46 per cent, within the final 24 hours. Ethereum (ETH) rose by 6.06 per cent to $1,724.23. 

Amongst different vital cash, Cardano (ADA) was up 8.19 per cent to $0.5419, Algorand (ALGO) was buying and selling at 4.82 per cent larger to $0.3425, Solana (SOL) rose 7.69 per cent to $43.12, Polkadot (DOT) was up 5.90 per cent to $8.10, and Binance Coin (BNB) rose 8.72 per cent to $291.56.

Friday’s high gainer was TerraClassicUSD (USTC), which was up by 16.05 per cent to $0.03897. The highest loser was Convex Finance (CVX), down 5.92 per cent to $6.03. 

Meme Coin And DeFi Costs

Dogecoin (DOGE) was up 0.17 per cent at $0.07101. Rival Shiba Inu (SHIB) was up by 5.74 per cent at $0.00001202. Dogelon Mars (ELON) rose 0.41 per cent to commerce at $0.0000003694, Floki Inu (FLOKI) misplaced 2.65 per cent at $0.000001127, and Samoyed Coin (SAMO) misplaced 7.51 per cent to $0.01166. 

Within the DeFi phase, YFI (yearn.finance) was up by 23.70 per cent at $9,188.61, and Terra Basic (LUNC) was buying and selling with a achieve of three.89 per cent at $0.0001017. Avalanche (AVAX) was up by 6.37 per cent at $24.55, Uniswap (UNI) was buying and selling with a achieve of 8.11 per cent at $8.97, and Aave (AAVE) rose by 6.867 per cent at $98.75.

Having an unique regulator oversee cryptocurrency developments within the U.S. won’t be the perfect technique, in line with Securities and Change Fee (SEC) Commissioner Hester Peirce. She instructed CoinDesk TV in a Thursday interview that the SEC has tailored to new applied sciences through the years, and it shouldn’t be totally different with crypto.

“I’ve a few issues with it,” Peirce mentioned. “Sometimes in Washington, if you construct one other regulator, all you get is all the prevailing regulators plus one.”

Ripple has achieved the “strongest yr ever” regardless of the lawsuit over XRP by the U.S. Securities and Change Fee (SEC), based on CEO Brad Garlinghouse. “Calling crypto the ‘Wild West’ is a farce,” he mentioned, emphasizing that “most are complying with monetary regulators globally.”

Ripple Has Finest 12 months Regardless of SEC’s Lawsuit Over XRP

Ripple CEO Brad Garlinghouse talked about his firm’s achievement and cryptocurrency regulation in a collection of tweets Wednesday. He defined that regardless of the lawsuit over XRP, Ripple had the “strongest yr ever.”

The U.S. Securities and Change Fee (SEC) filed a lawsuit towards him, Ripple Labs, and co-founder Chris Larsen a yr in the past. The securities watchdog alleged that XRP ought to have been registered as a safety.

Whereas insisting that the SEC’s lawsuit towards XRP “is an assault on crypto within the US, not simply Ripple,” Garlinghouse detailed:

2021 has been a watershed yr for crypto. Acceptance and consciousness of the chance to carry billions of individuals into the worldwide monetary neighborhood has by no means been so clear. It’s been unimaginable to see rather a lot much less ‘maximalism’, and lots of extra builders becoming a member of the trade.

The CEO proceeded to stipulate Ripple’s progress over the yr, equivalent to launching new On-Demand Liquidity (ODL) corridors and its central financial institution digital forex (CBDC) answer. “All of this progress got here from exterior the US,” he opined.

Garlinghouse then famous that SEC Chairman Gary Gensler “has taken an aggressively anti-crypto method and corporations are already transferring exterior the US.” He asserted that “the SEC as we speak received’t reply questions concerning the authorized standing of ETH, a lot much less the rest,” elaborating:

Calling crypto the ‘Wild West’ is a farce – most are complying with monetary regulators globally. This trade shouldn’t be punished for asking for regulatory readability & regulation that’s constantly utilized with a degree taking part in discipline.

What do you consider Garlinghouse’s feedback? Tell us within the feedback part beneath.

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