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ETFS 21Shares Crypto Monitor - 29th June 2022

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This Week in Crypto

Markets are doing slightly better than the last 7 days; the crypto market gained 11% capitalization, with Bitcoin jumping 4.7% and Ethereum 9.4% since last Tuesday. The market sentiment is kept at the edge of its seat as speculators compare the liquidity crisis accumulating on the likes of BlockFi, Celsius, and other DeFi platforms to the financial crisis in 2008. On the brighter side of the tunnel, Bank of England’s Deputy Governor Jon Cunliffe said that crypto projects that survive these trying times in the industry could become the tech companies of the future; aligning with other bullish sentiments that deem the market crash as healthy to infiltrate the strong projects from the weaklings.

Figure 1: More VC Money in Digital Assets Since Last Market Crash

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Source: PitchBook, Bloomberg

Key Takeaways

  • Cardano lobbies for software-enabled self-regulation for the cryptoassets industry

  • Data indicates nearing a market bottom

  • Tether to launch GBP-pegged stablecoin

  • KPMG kicks off collaboration hub in the metaverse

  • Solana unveils web3-focused Android phone

Macro, Regulations; Spot, and Derivative Markets

Former UK Chancellor Philip Hammond expressed his concerns about the Kingdom’s progress with crypto regulations. Working as a senior advisor to Copper.co, Hammond explained that Brexit, COVID-19, and their repercussions could be the main drivers of this lag. However, Hammond recommends that the Financial Conduct Authority needs to consult with the crypto industry to hire the talents required to work up the regimes the UK needs to introduce. On that note, British MP Matt Hancock reiterated the importance of having a “liberal” regulatory framework for cryptoassets. Hancock is taking it upon himself to position the UK as the jurisdiction of choice for crypto.

In the US, Chairman of the Securities and Exchange Commission (SEC) Gary Gensler is lobbying for one rule book on crypto exchanges that would protect all trading regardless of the pair. If a token that represents a commodity is listed on a platform overseen by the SEC, the securities regulator would send that information over to the CFTC, which oversees commodities. However, there’s a bill that somewhat challenges Gensler’s lobbying and expands the CFTC’s oversight over the industry. Senator Cynthia Lummis posted the bill on Github