Magnet Crypto Review | The weekly roundup of all things blockchain

Issue #61

Written by Magnet Capital | Oct 2, 2023 10:00:00 PM

Market Overview

As of the time of writing (Monday 5pm), the total market cap of the crypto asset market is $US1.15T, up (6.9%) from last week.

Below is the weekly performance of the top crypto assets. 

News Headline Highlights

 Crypto Asset Project Updates

Regulation Station

  • Last week the US House Financial Services Committee held an SEC oversight hearing with Chairman Gensler. Notable items during the Committee meeting included:
    • A bipartisan group of Representatives penned a letter urging Chairman Gensler to approve a Bitcoin Spot ETF immediately.
    • Chairman Patrick McHenry kicked off the session with stern words to Gensler, “your efforts to choke out the digital asset ecosystem, which has created real harm for consumers and our markets, is clear to all. Chair Gensler, you have also said your goal is consumer protection, yet your actions have pushed legitimate digital asset firms outside regulated financial institutions where consumers are best protected".
    • Representative Andy Barr comically called Gensler the "Tonya Harding of securities regulation because you're kneecapping the U.S. capital markets".
    • House Whip Tom Emmer continued the barrage on Gensler, stating, "I'm convinced you're not an impartial regulator. Instead, it's clear that you working to consolidate your own power even though it means crushing opportunities for everyday Americans".
    • Democratic Representative Richie Torres called Gensler out for his overreach, referencing his lack of case law used to support his stance on cryptocurrency regulation. 
    • Representative Mike Flood took highlighted the impracticality of SEC actioned Staff Accounting Bulletin (SAB) 121, a policy that prevents even the most legitimate institutions such as BNY Mellon from offering digital asset custody. 
  • U.S. Congressman Mike Flood (R-NE), Congressmen Ritchie Torres (D-NY), Congressman French Hill (R-AR), and Congressman Wiley Nickel (D-NC) introduced a bipartisan bill, the Uniform Treatment of Custodial Assets Act. The bill would, in effect, rescind a rule by the Securities and Exchange Commission, Staff Accounting Bulletin 121 (SAB 121), that prevents banks from providing custodial services to digital assets investors by requiring them to keep those assets on the balance sheet.
  • Christina Choi, an official of Hong Kong’s Securities and Futures Commission, said the regulator is working on detailed guidance on the tokenization of authorised investment products, such as equities “in the near term”.

The Weekly Deal Room

Metric of the Week

Ethereum, which launched in mid 2015, is one of the fastest products to achieve $10B in cumulative revenues since launch. The rate of growth of Ethereum revenue has outpaced many major tech companies, including Microsoft Corp and Adobe Inc, which took 19 and 20 years respectively to reach the same revenue landmark. Alphabet Inc. achieved this level within approximately six years. 

Source: Caleb & Brown