Regulation
Tether’s market capitalisation slips as MiCA regulations kick in
- Tether’s market capitalisation slid 1.5% over the last seven days as broader MiCA regulations across crypto asset service providers in the Eurozone kicked in on December 30
- These regulations include stringent rules for global stablecoin providers as some European exchanges have begun to delist USDT
Leading stablecoin Tether (USDT) has lost 1.5% of its market capitalisation over the last seven days, falling to $137.32bn from $139.46bn after broader Markets in Crypto-Assets (MiCA) regulations kicked in on December 30.
Per the regulations, European exchanges have begun to delist USDT from their crypto line-up, directly contributing to USDT’s falling market share and capitalisation.
MiCA rules around stablecoins
Approved in June 2024, the MiCA regulation framework regulates dollar-denominated stablecoins like USDT and USDC to limit their dominance with the EU. At the same time, it encourages the use of Euro-pegged stablecoins for settlements and transactions.
While dollar-pegged stablecoins are not outrightly banned (users can hold them in decentralized wallets), they are subject to stricter rules (like maintaining a 30% reserve in traditional banks, which could impact cash flow) and are restricted on registered exchanges within the EU.
Comments from industry insiders remain unfazed as the bulk of USDT trading and transactions come from Asia and the US, where USDT is not restricted.
Meanwhile, Tether CEO, Paolo Ardoino, retweeted a post citing that Tether’s daily trading volume outpaced the second-largest stablecoin by 14x by December 31.
— Paolo Ardoino 🤖🍐 (@paoloardoino) December 31, 2024
Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, has strongly refuted recent rumors regarding the company and its executives. The rumors suggested that former President Donald Trump criticized Ripple for alleged financial support of Kamala Harris during a past election. Alderoty dismissed the claims as baseless and entirely fabricated, taking to Twitter to call out the reports as “pure fiction.”
Ripple CLO Refutes Claims of Political Allegations
Rumors have started to surface following a report made by Unchained, which stated that insiders said that Ripple had a conversation with Trump during which he allegedly bashed the company. In the report, Trump claimed that Ripple did not support his administration at a crucial time and highlighted that Chris Larsen, the co-founder of Ripple, had donated to PACs backing Kamala Harris.
The report further suggested that Ripple may have influenced another rumor published by the New York Post. The rumor claimed Trump was open to including non-Bitcoin, American cryptocurrencies, such as XRP, in a national reserve. XRP, Ripple’s native token, experienced a significant price surge following the report, reaching a seven-year high of $3.40.
Ripple’s chief legal officer, Stuart Alderoty quickly fired back at the allegations on social media and questioned the origins of the information from the unnamed sources. “The rumors published by this third-tier crypto rag are pure fiction. Completely made up,” Alderoty wrote on X.
John Deaton Criticizes Speculative Reporting
Like Ripple CLO, Prominent attorney John Deaton, who has been a vocal figure in the XRP community, also criticized the speculative reporting. Deaton questioned the reliability of unnamed sources and emphasized the importance of evidence-based claims.
As Deaton took to X to express his opinions he wrote,
” Let me get this straight, a person who was not at the meeting told another person that they were guessing what may have been said at the meeting?” This is why we have rules of evidence in Court.”
Deaton also pointed to the dangers of “tribalism” within the crypto sector, which is often characterized by groups that try to spread fear, uncertainty, and doubt (FUD) about other projects. According to him, the recent market performance of XRP which has been performing better than Bitcoin among other cryptocurrencies was likely to raise eyebrows.
XRP Price Hits 7 Year High Amid Controversy
The speculation was made at the same time of the unprecedented increase of XRP usage having hit more than 2,365 $100K transactions. Concurrently, XRP price has increased by more than 10% in the last 24 hours hitting a 7 year high due to speculations that the digital asset will be added to a US strategic digital assets reserve.
Other publications, including the New York Times, revealed that Ripple’s CEO, Brad Garlinghouse, had urged Trump to consider expanding such a reserve to include other cryptocurrencies besides Bitcoins. Despite these claims, no report could establish whether Trump had accepted the proposition or not.
Ripple’s representative, Susan Hendrick, has confirmed that Garlinghouse did reach out to the former president, but she denied that Ripple was behind the rumors of Trump supporting XRP. ‘All those allegations are lies,’ she told Unchained when confronted with the allegations.
The controversy arises at a time when Ripple is still in a legal tussle with the U.S Securities and Exchange Commission (SEC). The SEC recently filed an appeal of a 2023 decision by US District Judge Analisa Torres which found that XRP sales on cryptocurrency trading platforms did not constitute securities transactions.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
CryptoCom has been granted a license for the Markets in Crypto Assets (MiCA). By this approval, the company is now ready to work under the new European Union crypto regulation. CryptoCom becomes one of the first major crypto firms to secure this provisional licence which allows for the firm to operate across the 27 member states of the EU.
CryptoCom Becomes First Major Crypto Firm to Secure Provisional MiCA Licence
In a recent blog post, CryptoCom announced to have received an in-principle MiCA licence. This provisional approval now allows the company to offer its crypto services across the EU on the back of an efficient framework. The MiCA regime provides clearer definitions and more certainty in the crypto sector.
The new regulatory framework enables authorized firms to provide their services across the whole of the EU. This does away with the need of having several licenses in each member state. CryptoCom’s approval is a significant development in its European expansion plan.
However, the regulation under Markets in Crypto Assets (MiCA) and the Transfer of Funds Regulation (TFR) Travel Rule adopted on December 30, 2024, have been misinterpreted. Consequently, recently Circle’s Policy Head, Patrick Hansen, clarified these misconceptions, providing key insights.
Europe’s First Comprehensive Crypto Regulation
MiCA establishes clear guidelines for businesses operating within the EU, ensuring a structured regulatory framework. This particular crypto regulation requires that companies meet certain standards on issues of reporting, AML, and consumer protection.
The exchange’s adherence to MiCA regulations demonstrates its commitment to responsible growth. The company has consistently advocated for robust regulatory structures to boost confidence in the crypto sector.
Although CryptoCom did not specify which regulator issued the approval, its European headquarters in Paris suggests involvement from French authorities. France has been proactive in implementing MiCA rules, making it a hub for crypto businesses.
Other firms are also working to secure MiCA licenses as member states roll out the framework. For instance, MoonPay and Boerse Stuttgart have already received similar approvals.
MiCA Licence Impact
With the in-principle MiCA licence, CryptoCom can offer its services across all EU member states. The approval allows the company to operate under a unified regulatory framework, reducing compliance complexities.
CryptoCom’s President and COO, Eric Anziani said that the company fully supports MiCA regulations. He noted that this was going to improve confidence, transparency and clarity in the crypto space.
CryptoCom’s COO added,
“We have always been fully supportive of MiCA and strongly believe it will bring clarity, transparency, and establish a more streamlined sentiment towards the regulation of our industry across the EU.”
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Gary Gensler officially concluded his tenure as Chairman of the U.S. Securities and Exchange Commission (SEC) on Friday. Stuart Alderoty, Ripple’s Chief Legal Officer, commented on the event with a bold statement on social media. Alderoty suggested that starting Saturday, Gensler would no longer hold relevance in discussions surrounding the US SEC.
Gary Gensler’s Last Day as US SEC Chair: Ripple CLO Alderoty Comments
In a post on X, Stuart Alderoty, Ripple CLO, mocked Gary Gensler’s departure from the SEC. He remarked that the crypto industry would soon ask, “Gary who?” Alderoty’s comments come amidst Ripple’s ongoing legal battle with the SEC, which began in 2020.
The SEC has alleged that Ripple sold XRP as an unregistered security, a claim the company has denied. Despite the XRP company’s partial court victory in 2023, where the judge ruled that XRP sales to retail investors did not violate securities laws. However, the US SEC appealed the decision prolonging uncertainty for Ripple and the crypto industry.
In recent reports on the XRP lawsuit, the U.S. Securities and Exchange Commission (SEC) filed an appeal challenging the district court’s 2023 ruling that XRP is not a security. The SEC argues that all XRP transactions, including programmatic sales to retail investors, qualify as investment contracts under the Howey Test.
Gary Gensler’s legacy as SEC Chair is marked by an aggressive approach to regulating the crypto industry. Under his leadership, the SEC initiated over 80 lawsuits against crypto companies, including prominent names such as Coinbase, Uniswap, and Ripple.
Despite the controversies, Gensler claimed that crypto enforcement accounted for only a small portion of the SEC’s overall activities. Supporters of his tenure highlighted efforts to protect investors and enforce compliance across the financial sector. The former US SEC chair shared a video on X, reflecting on the four years in office.
It has been the privilege of a lifetime to work for you as @SECGov Chair.
Over the last four years, we updated rules in our equity market & Treasury Markets, & shortened the settlement cycle. We returned more than $2.7B to harmed investors.
A quick look at the last four years: pic.twitter.com/gUBfaiURMx
— Gary Gensler (@GaryGensler) January 17, 2025
XRP Price Performance Amid Leadership Changes
XRP experienced a surge in its price, climbing to $3.27 on Friday as Ripple CLO and crypto traders celebrated Gensler’s last day. Analysts noted the formation of a bullish pennant pattern on XRP’s weekly price chart. The pattern, often indicative of strong upward momentum, has led some analysts to forecast a potential short-term target of $10.
The bullish outlook is boosted by improved market sentiment surrounding Ripple’s chances in its legal battle with the SEC. Investors remain optimistic about the possibility of reduced regulatory pressure under the Trump administration.
Additionally, recent price analysis supports the bullish outlook for XRP, with targets of $5, $10, $15, and $20 in sight. The ongoing rally is fueled by strong technical patterns like the “bull flag” and increased open interest, which recently hit $7.51 billion. Whale accumulation has also intensified, indicating growing investor confidence.
Anticipation Grows for XRP ETF Approval
More so analysts at JPMorgan broke silence on XRP ETF possibilities, forecasting an inflow of $3 billion to $8 billion if approved by the SEC. The prediction is based on adoption rates similar to BTC and Ether ETFs, which captured 6% and 3% of their market caps, respectively, within their early months. The report highlights the potential for XRP and Solana ETFs to boost liquidity and market adoption.
At press time, the Ripple token is trading at $3.27, marking a 39.71% gain over the past 7 days. The cryptocurrency’s market cap stands at $188.16 billion, with a 24-hour trading volume of $13.8 billion.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Ripple CLO Denies Rumors of Trump Criticism Over Campaign Donations
Will Bitcoin and Altcoins Crash Following Bank of Japan Rate Hike This week?
XRP Price Holds Strong: Uptrend Shows No Signs of Slowing
Polymarket Under Fire in Thailand, But Bitcoin ETF is a Possibility
ETH Recovers From Drop, Analyst Points At 2021 Rally
CryptoCom Secures In-Principle MiCA Licence For EU Expansion
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
Coinbase cbBTC Set to go Live on Solana
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
Coinbase cbBTC Set to go Live on Solana
-
Regulation19 hours agoUS judges demand explanation from the SEC for its refusal to set clear crypto rules
-
Regulation10 hours agoActing SEC Chair Uyeda announces new crypto task force
-
Regulation8 hours agoTurkey rolls out new crypto AML regulations
-
Ethereum8 hours agoEthereum ETFs inflows surge as Bitcoin ETFs see major outflows
-
Market8 hours agoBitcoin price analysis: economic headwinds push price lower
-
Ethereum5 hours agoETH breaks $3,900 as Bitcoin spikes past $103k
-
Regulation21 hours agoDonald Trump’s team considering XRP, Solana, and USDC strategic reserves
-
Blockchain12 hours agoJordan Adopts Blockchain Policy To Propel Government Into The Future
✓ Share: