Crypto Resurgence: SEC Calls for US Return, XRP Poised to Rebound

The cryptocurrency landscape is witnessing significant shifts, from regulatory changes to market dynamics. Here’s a concise overview of the week's top stories:

Crypto Companies Eye US Return

SEC Chair Paul Atkins is advocating for crypto companies to return to the United States, signaling a move towards more favorable regulation under President Donald Trump’s administration. Treasury Secretary Scott Bessent has declared a “golden age of crypto” in the U.S., urging builders to establish and expand their operations domestically. Companies like Kraken and MoonPay are already responding by increasing their U.S. presence.

SEC's 'Project Crypto' to Modernize Digital Asset Rules

Chair Paul Atkins has introduced “Project Crypto,” an initiative designed to modernize the SEC for the digital finance era. The project aims to establish clear regulations for digital assets, responding to recommendations from the President’s Working Group on Digital Asset Markets.

Key proposals include:

• Easing licensing rules for brokerages.
• Creating a market structure that separates commodities from securities.
• Offering regulatory exemptions for early-stage crypto projects and ICOs to foster innovation.

CFOs Prioritize Long-Term Crypto Use

A Deloitte survey indicates that 99% of CFOs at billion-dollar firms plan to use crypto for business long-term. 23% expect their treasury departments to use crypto for investments or payments within the next two years, with this figure rising to nearly 40% among firms with over $10 billion in revenue.

Concerns remain about price volatility, accounting complexity, and regulatory uncertainty.

UK Lifts Ban on Crypto ETNs for Retail Investors

The UK's Financial Conduct Authority (FCA) has reversed its ban on retail access to cryptocurrency exchange-traded notes (cETNs), effective Oct. 8. This decision reflects an evolving market with better-understood and more mainstream products, according to FCA executive director David Geale.

CoinDCX Employee Arrested in $44M Crypto Hack

A CoinDCX software engineer, Rahul Agarwal, was arrested in India following a $44 million hack. Authorities believe his compromised login credentials led to unauthorized access to the exchange’s servers. Agarwal denies involvement but admits to part-time work for private clients.

Market Overview: Winners and Losers

As the week concludes:

• Bitcoin (BTC): $113,936
• Ether (ETH): $3,527
• XRP: $3.01
• Total market cap: $3.71 trillion

Top gainers among the largest 100 cryptocurrencies include Four (FORM), Toncoin (TON), and Story (IP). Major losers were Fartcoin (FARTCOIN), Bonk (BONK), and Virtuals Protocol (VIRTUAL).

Notable Quotes

• Ted Pillows (crypto investor): “I think BTC could break above this level next month which will start the next leg up.”
• Ray Dalio (Bridgewater Associates): “You would have about 15% of your money in gold or Bitcoin.”
• The DeFi investor (crypto analyst): “Stablecoins are the product that can onboard the first billion people on-chain.”
• Standard Chartered Bank: “They [Ether treasury firms] may eventually end up owning 10% of all ETH, a 10x increase from current holdings.”
• Phong Le (Strategy): “We’re capitalized on the most innovative technology and asset in the history of mankind...we’re possibly the most misunderstood and undervalued stock.”
• Joe Lubin (Consensys and SharpLink Gaming): “We believe that we’ll be able to accumulate more Ether much faster than any other Ethereum-based project.”

XRP's Potential Rebound

XRP shows signs of a potential 20% price increase by the end of August. A bullish divergence on its four-hour candle chart suggests weakening selling pressure and a possible trend reversal.

FUD Highlights

• Crypto Hacks: $142 million stolen in July across 17 attacks, with CoinDCX experiencing the largest loss.
• Tornado Cash: Roman Storm's trial continues, potentially setting a precedent for developer responsibility in decentralized software.
• Indonesia Crypto Taxes: Indonesia has increased income tax on crypto asset sales, particularly on foreign exchanges.

Magazine Highlights

• Ethereum Scaling: An overview of how zkEVMs and real-time proving will scale Ethereum to meet global demands.
• Asia Express: Discusses China's critique of US crypto policies and the rise of Telegram dark markets.
• AI Oddities: Explores how AIs can encode secret messages influencing other AIs.

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