The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
|
|
Happy Thursday! Here's what you need to know today in crypto: |
- Coinbase's Base layer 2 blockchain is now live.
- The SEC appeals part of federal judge's ruling in Ripple case.
- Congresswoman Maxine Waters calls out PayPal's new stablecoin.
|
|
|
CoinDesk Market Index (CMI): 1,229 −0.9%
Bitcoin (BTC): $29,483 −1.1%
Ether (ETC): $1,851 −0.5%
S&P 500: 4,467.71 −0.7%
Gold: $1,954 +2.0%
Nikkei 225: 32,204.33 −0.5% |
|
|
Coinbase (COIN), the large publicly traded U.S. crypto exchange, said its new Base blockchain, a "layer 2 network," has gone live, heralding the start of a new era of public companies running their own distributed networks. Base was already live for testing by developers, and it became open to the public at noon ET on Wednesday. The move could ultimately allow Coinbase to garner fees from running its own blockchain, in addition to a potentially even more lucrative stream of revenue from applications built atop it, executives say. Layer 2 networks are built atop base ones, relieving congestion on the underlying network. Base is built upon the Ethereum blockchain. |
Coinbase CEO Brian Armstrong (Conbase) |
The U.S. Securities and Exchange Commission will file an "interlocutory appeal" of a judge's ruling on Ripple's programmatic sales of XRP, the regulator said in a court filing on Wednesday. The SEC said it was seeking to "leave to" appeal part of a recent decision while other parts of the SEC's case proceed to trial. The regulator said approval of an appeal could prevent the SEC and government from needing two trials. The SEC sued Ripple in 2020 on grounds that it was selling an unregistered security. Last month, a federal judge ruled that Ripple's programmatic sales — where it listed XRP on exchanges for anyone to purchase — weren't securities transactions, whereas Ripple's direct sales to institutional clients were. Rep. Maxine Waters (D-Calif.) said Wednesday she's "deeply concerned that payments giant PayPal (PYPL) is launching its own stablecoin without federal rules for stablecoins in place. Waters, the top Democrat on the House Financial Service Committee, noted that PayPal has 435 million customers around the world, more than the number of online accounts of all the largest banks combined. "Given PayPal's size and reach, federal oversight and enforcement of its stablecoin operations is essential in order to guarantee consumer protections and alleviate financial stability concerns," Waters wrote. |
|
|
Market Insight: Aptos Gains Ahead of Unlock |
Aptos (APT) tokens surged as much as 15% on Wednesday after the network announced a partnership with Microsoft (MSFT) to develop blockchain-based artificial-intelligence tools. The surge comes ahead of a supply unlock that could add selling pressure, data suggests. Just over 2% of the APT supply — worth $33 million at current prices — is set to be unlocked on Saturday at 05:30 am UTC, data shows. This is part of a planned move and will decrease locked tokens to 80% of the total supply. Unlocks increase the circulating supply of any token in the open market, adding bearish sentiment if holders choose to sell and demand fails to keep up, causing prices to plunge quickly. |
|
|
Source: Lisa Abramowicz, Bloomberg |
- The chart shows market-implied probabilities of the fed-funds rate, or the benchmark borrowing cost, over different time frames.
- Ahead of Thursday's release of the Consumer Price Index, futures activity tells us that the Federal Reserve is done raising rates and is likely to begin the easing cycle early next year.
- A hotter-than-expected CPI may dent dovish Fed expectations and inject volatility into markets.
|
|
|
State of Crypto: Policy & Regulation |
It is now more important than ever to set industry standards and align on practical short-term and long-term objectives through pointed conversations with the best legal minds and Washington D.C.'s most important decision makers.
Join us at State of Crypto: Policy and Regulation on October 24 in Washington D.C. for an unprecedented opportunity to evaluate, dissect and ultimately shape crypto regulatory frameworks that support a vibrant, secure and healthy future for the digital economy. Save 10% with code FM10. Learn more and register. |
|
|
Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
|
|
|
Coinbase’s New Blockchain Goes Live