U.S. Congressman Tom Emmer has directly criticized SEC Chair Gary Gensler, calling him the most destructive and lawless chair in the history of the regulatory agency. As the upcoming Presidential Election looms, Kamala Harris insists on keeping Gensler where he is whereas Donald Trump has explicitly stated he plans to fire Gensler immediately if he wins.

A Shaky Foundation

Emmer accused Gensler of inventing the term crypto asset security without providing any regulatory clarity, which has fueled enforcement efforts by the SEC against the crypto industry for three years. Last week, the SEC retracted the term in a court footnote.

Emmer also challenged Gensler on the mishandling of the Debt Box case, where the SEC sued a crypto startup for an alleged $50 million fraud, resulting in a dismissal and a $1.8 million fee against the SEC. Gensler admitted the case was poorly handled. Mark Cuban outright called Gensler a blight and that his departure will greatly contribute to local GDP growth.

Fighting Back

SEC Commissioner Hester Peirce also criticized the agency for taking too long to retract the aforementioned term, suggesting that it should have acknowledged earlier that crypto tokens are not securities. She indicated that while congressional input on definitions would be helpful, the SEC could have provided guidance itself.

Despite calls by 42 lawmakers to revoke the SEC Staff Accounting Bulletin No. 121, which requires companies holding crypto to list it as a liability, Gensler confirmed it would stay in place, arguing it helps companies understand risks. Rep. Wiley Nickel countered that this rule could hinder banks and their ability to custody crypto products, creating greater risk by shifting control to non-bank entities.

Riot Platforms has ended its attempt to acquire Bitfarms, settling instead for a 19.9% ownership stake as both companies redirect their focus to their own strategies following the agreement. This settlement, announced on September 23rd, 2024, means Riot will not pursue an immediate acquisition.

The Calm Before The Storm

As part of the deal, Riot has retracted its request for a special meeting of Bitfarms shareholders. In exchange, Bitfarms has implemented several board-level changes to support its ongoing strategic review. Notably, Amy Freedman has been appointed to the Board, taking over for Andrés Finkielsztain, who has resigned. Freedman, recognized for her expertise in corporate governance, will actively participate in the Bitfarms Governance and Nominating Committee and Compensation Committee, and may also join special committees of independent directors as needed.

The interest by Riot Platforms in Bitfarms has been closely watched since its unsolicited $950 million acquisition proposal in May, followed by increased share purchases. In response, Bitfarms adopted a shareholder rights plan, often referred to as a poison pill, on June 20th, preventing any entity, including Riot, when it came to acquiring over 15% of company shares before a specified deadline. This strategy was aimed at safeguarding shareholder interests while considering other potential strategic options like mergers or sales.

Wait And See

Concerns arose within Bitfarms regarding Riot, particularly among its Special Committee of Independent Directors. They contended that the ongoing share acquisitions could jeopardize the integrity of the strategic review process which Bitfarms had meticulously crafted, arguing that Riot was undervaluing the company. This led the committee to adopt defensive measures to protect shareholder value.

Although the settlement has taken place, Riot continues to hold a significant stake in Bitfarms and may reevaluate its position in the future. According to its early warning report, Riot could present new proposals based on how Bitfarms performs as well as broader market conditions. For the time being, both companies are concentrating on their respective strategies and have seemingly established a temporary truce.

Caroline Ellison has often played a supporting role in both business and her personal life. About three years ago, the talented mathematician became co-CEO of the crypto trading firm Alameda Research, sharing the position with Sam Trabucco before eventually taking over completely.

Prior to this, she established herself within the inner circle of FTX, the sister exchange to Alameda, solidifying her status as a loyal deputy and confidante to its infamous founder and CEO, Sam Bankman-Fried.

Quite The Entanglement

Ellison will be in the spotlight at a federal court in Manhattan, where she is set to be sentenced for her involvement in the multi-billion-dollar collapse of FTX. Bankman-Fried received a 25-year prison term for his crimes and has since filed an appeal.

Caroline, now 29 years old, served as the former co-CEO of Alameda Research, a firm she joined in 2017. For several years, she was also in an intermittent romantic relationship with Sam Bankman-Fried, who oversaw FTX. In the wake of the FTX collapse in 2022, Ellison was dismissed regarding her position at Alameda and subsequently became a key witness in the criminal proceedings against Bankman-Fried.

Some Leeway
Ellison has had her sentencing scheduled for the U.S. District Court in Manhattan on Tuesday, September 24th, at 03:00 PM ET. Ellison pleaded guilty to two counts of wire fraud and conspiracy to commit wire fraud, along with one count each of conspiracy to commit money laundering, commodities fraud, and securities fraud. These charges could carry a maximum combined sentence of 110 years.
Although she could face a lengthy prison term, it is unlikely she would serve the maximum. Entering a plea deal with federal prosecutors in 2022, Ellison agreed to testify against Bankman-Fried in exchange for leniency. Her defense team has requested a supervised release without incarceration. Federal prosecutors have not specified a recommended sentence, praising her cooperation as substantial and exemplary.

Additionally, many in the crypto trading community are betting on a light sentence for Ellison, with a significant percentage predicting she will avoid prison altogether.

As October approaches, often dubbed Uptober in the cryptocurrency community, investor enthusiasm is palpable, particularly regarding the meme coin market. Three lesser-known contenders are capturing attention for their potential to rise significantly, Pepe Unchained (PEPU), Catizen (CATI), and DOGS (DOGS).

Competing With Ethereum

Pepe Unchained is currently developing a Layer-2 network tailored for meme coins, which aims to deliver faster transaction speeds and lower fees compared to Ethereum. The project has already seen success in its presale, raising over $14.7 million and offering impressive staking rewards for early investors, suggesting robust demand for its offerings.

Catizen, trading at $0.76 with a market cap of $231 million, stands out by integrating gaming and social features on the TON blockchain. Users can engage in managing virtual cat cafes and earn vKITTY tokens, making the platform both entertaining and rewarding. The recent launch of CATI on major exchanges like Binance has further fueled excitement and speculation about its future growth.

Letting The DOGS Out

Meanwhile, DOGS, currently priced at $0.00085, has emerged as the fifth most traded meme coin worldwide, with an impressive trading volume of $213 million just yesterday. The success of its August airdrop, which reached over 42 million wallets, highlights its expanding user base. The team behind DOGS has hinted at plans for tradable meme stickers and additional crypto rewards, reinforcing its community-first approach.

With all three coins demonstrating unique features and promising developments, they could be well-positioned for notable activity as Uptober unfolds, attracting the interest of both seasoned investors and newcomers alike.

Solana Breakpoint Day One kicked off with multiple significant announcements, including Firedancer, key updates by Jupiter, and Franklin Templeton revealing plans for a mutual fund on Solana. Day Two maintained the excitement with more major developments.

Key Details
Coinbase announced it will launch its wrapped Bitcoin version, cbBTC, on Solana. This addition aims to enhance liquidity and capital efficiency across DeFi applications. Following its impressive Day One, Firedancer announced its full validator client is now live on the Solana mainnet for non-vote transactions. A live demo showcased its ability to handle 1.04 million transactions per second.
Magic Eden also shared plans for new features, including the ability to swap fungible assets across different chains, and confirmed its upcoming $ME token will launch on Solana. Meanwhile, co-founder Alex Smirnov announced the highly anticipated $DBR token will go live on October 17th, along with new product features like gasless bridging. BONK, a beloved meme coin, also announced its growth and plans for a BONK ETP, indicating a possible future BONK ETF.

Other Notable Updates
Sanctum introduced Creator Coins for monetizing audiences, announced a new Sanctum card for real-world payments, and teased the return of its Wonderland incentives campaign. Pyth Network unveiled OIS (Oracle Integrity Staking) to enhance data accuracy and reward $PYTH stakers through various DeFi products.
Kamino Finance announced plans for Spot Leverage trading, with founder Marius Ciubotariu emphasizing its appeal to institutional investors. The event concluded with engaging debates on crypto trends and the future of the Solana Foundation. Dan Albert announced that planning for Solana Breakpoint 2025 is underway, set for December 11th-13th in Abu Dhabi.

Vice President Kamala Harris, who will compete against Donald Trump in the upcoming November election, expressed her support for emerging technologies like AI and cryptocurrency during a campaign fundraiser on September 22nd. Harris had previously been very much against promoting cryptocurrencies, but has apparently changed her mind since crypto has become such a prominent topic among US citizens.

A Change Of Heart

At an event held at Cipriani Wall Street in Manhattan, Harris emphasized that her administration would promote innovation while also ensuring the protection of investors and consumers. We will encourage innovative technologies such as AI and digital assets while safeguarding our consumers and investors, she stated.

With the cryptocurrency industry experiencing rapid growth in recent years, it has become a prominent issue as the election approaches, particularly as many executives and investors criticize the Biden administration and their strict regulatory stance. Some proponents of crypto viewed the statements made by Harris as a way to highlight her differing approach compared to President Biden, even if she personally does not support crypto.

A Stark Contrast

In contrast, her Republican opponent, Trump, has positioned himself as an avid supporter of the crypto sector, with him being the first ever former United States President to use BTC publicly. He has criticized current regulations and indicated plans to replace SEC Chair Gary Gensler if elected, aiming to create a more favorable environment for cryptocurrency. Recently, he even garnered attention by purchasing burgers with Bitcoin at a New York crypto-themed bar.

According to Bloomberg, the aforementioned fundraiser drew Wall Street donors, with contributions ranging between $500 to $1 million. The Vice President reportedly raised an additional $27 million for her campaign, following a strong fundraising month for the Democratic Party, which collected $361 million in August, compared to Trump who had $130 million.

Zulu Network raised an undisclosed amount in Seed funding with help by Draper Dragon. Zulu Network is a Bitcoin Layer 2 solution, introducing a two-layer architecture aimed at enhancing the capabilities of the Bitcoin Network.

Chaos Labs secured $4M in Undisclosed funding with assistance by PayPal Ventures. Chaos Labs is a platform that focuses on providing advanced risk management solutions for DeFi protocols.

Coinhall obtained an undisclosed amount in M&A funding with support by Jupiter. Coinhall is a decentralized trading terminal for Solana and Cosmos blockchains. It offers real-time prices, charts, swap aggregations, and analytics across all Automated Market Maker (AMM) decentralized exchanges within the Cosmos ecosystem.

Helius acquired $21.75M in Undisclosed funding with help by Founders Fund. Helius aims to help creators by providing APIs to understand on-chain data and query transactions, as well as webhooks that enable automations and bots, plus the RPC nodes that let Solana apps interact with the blockchain.

Aptos Foundation secured an undisclosed amount in Strategic funding with support by Foresight Ventures. Aptos is a scalable Layer 1 blockchain that offers new and novel innovations in consensus, smart contract design, system security, performance, and decentralization.

Bool Network obtained $2M in Seed funding with assistance by Spark Digital Capital. Bool Network is an open, decentralized, and secure Bitcoin verification layer powered by MPC-based (Multi-Party Computation) distributed key management.

CUDIS raised $5M in Seed funding with help by Draper Associates. CUDIS is a Web3 AI wellness company that develops a smart ring for monitoring health metrics. The ring allows users to access their health data via the Solana blockchain and earn passive rewards.

Amnis Finance secured $2M in Seed funding with assistance by OKX Ventures. Amnis Finance is a DeFi protocol on the Aptos blockchain that focuses on liquid staking and yield tokenization. Users can stake their APT tokens through Amnis to earn staking rewards without locking up their capital or running a validator node.

Vana obtained $5M in Strategic funding thanks to support by Coinbase Ventures. Vana is a network designed for private, user-owned data. It is an EVM-compatible Layer 1 blockchain specifically created for collective ownership of private digital assets used in artificial intelligence systems.

Toncoin (by Telegram Messenger) raised $30M in Strategic funding with help by Foresight Ventures. Toncoin (TON) is the native cryptocurrency of The Open Network (TON) blockchain, which was originally created by Telegram in 2018. It was meant to be a competitor to Ethereum and is used for transaction fees, securing the blockchain, gas payments, and more.

The crypto markets had a solid week, but pullbacks are now visible across the charts. On a daily basis, altcoins are also showing losses, with the largest corrections affecting TON, AVAX, and NEAR among the major cryptocurrencies.

Just A Taste

After the Fed finally decided to cut interest rates, Bitcoin peaked at $64,000 but has since fallen by about $1,000, currently trading around $63,000. The week started with Bitcoin dropping to below $58,000 on Monday. Following the decision to cut rates by 0.5% on Wednesday, Bitcoin surged past $61,000 but could not maintain its upward trajectory.

The market cap of the flagship crypto is also just under $1.25 trillion, with its dominance over altcoins decreasing to 54.3%. Moreover, various altcoins, which initially saw notable gains, are now stabilizing. ETH, XRP, BNB, TRX, and SHIB have moved less than 1%, while SOL, DOGE, ADA, LINK, and BCH have dropped by 1% to 2%.

Notable declines include Toncoin, Avalanche, and NEAR. WIF has dropped nearly 10%, leading losses among the top 100 altcoins. The total crypto market cap has similarly decreased by about $40 billion, now below $2.3 trillion.

Other Markets

Some money managers are expressing concerns that the market seems overly relaxed about current issues, especially as the bold move to cut interest rates has pushed already high valuations even higher. At the Morgan Stanley Australia Summit, the Australian Treasurer shared optimistic insights about making progress in the fight against inflation.

In tech news, chipmaker Qualcomm is reportedly considering acquiring Intel, indicating potential shifts in the industry. In Brazil, a judge has imposed a ban on X while Elon Musk contests top court orders, though he has agreed to comply with legal directives. Market reactions are buzzing as polls suggest a landslide victory for Modi, reigniting global interest in Indian stocks during this ongoing bull run. Coffee roasters are bracing for price increases due to dwindling reserves in Vietnam, while a soggy crop in Asia signals continued price hikes for caffeine lovers.

Lastly, hedge fund titans are nurturing a $14 billion group of startup cubs. While these new firms boast substantial investor capital, their ability to replicate the success of their established predecessors remains uncertain.

A growing Clipper Malware scam is specifically targeting the Shiba Inu (SHIB) community, intercepting cryptocurrency transactions and posing a serious risk to users. Given the rise in these kinds of threats, it is essential for users to remain vigilant, verify addresses, and utilize secure platforms to safeguard their funds against Clipper Malware and similar scams.

Understanding Clipper Malware

As cryptocurrency evolves, so do the tactics employed by cybercriminals. Among the latest threats is Clipper Malware, which increasingly affects users in the Shiba Inu community as well as the wider crypto landscape.

In a recent alert, Shibarmy Scam Alerts underscored the escalating danger posed by this malware. Having been around for seven years, it now actively intercepts cryptocurrency transactions. Originally identified in questionable Android apps, it now threatens both Android and iOS devices. The malware functions by monitoring copied wallet addresses and modifying them to redirect funds to the wallet of the attacker.

A Losing Battle

The prevalence of this scam has surged, impacting numerous users. Despite platforms like Binance blacklisting suspicious wallet addresses, the community remains vulnerable. Users are urged to manually verify wallet addresses before completing transactions and to download apps exclusively through reputable sources like the Apple or Google Play Store.

Moreover, Shiba Inu recently introduced a new staking platform, K9 Finance. This platform has also attracted attention by cybercriminals impersonating the project in an effort to mislead users. While the K9 Finance team actively defends against these attacks, fraudulent Telegram groups and links continue to circulate. The community is advised to exercise caution and use only official K9 Finance links to avoid scams.

In April 2023, ConsenSys filed a lawsuit against the United States SEC, alleging that the agency was investigating Ethereum and had issued a Wells Notice regarding potential enforcement actions tied to swap and staking features provided by MetaMask. On September 19th, 2024, Judge Reed dismissed claims made by ConsenSys regarding MetaMask, stating that enforcement actions do not constitute final agency actions.

Lacking A Definitive Stance

The lawsuit aimed for a court decision asserting that Ether is not a security and that Ethereum sales do not qualify as securities transactions, in addition to preventing the SEC in terms of taking action against the MetaMask software.

The judge noted that the Wells Notice does not represent a definitive stance by the SEC, nor does it grant any legal rights or impose consequences on ConsenSys. The court also deemed all claims by ConsenSys about Ethereum moot, as the SEC had concluded its investigation into ETH earlier that summer. This conclusion followed the approval by the regulatory agency of Ether ETFs in May, which rendered the initial concerns obsolete.

ConsenSys To Pursue Other SEC Charges

Despite this ruling, ConsenSys announced its intention to continue its legal battle against a separate SEC complaint filed in June. This lawsuit accuses the company of functioning as an unregistered brokerage that provides unregistered securities through MetaMask Swaps.

ConsenSys has criticized the SEC for what it perceives as an anti-crypto agenda, arguing that the agency is attempting to expand its regulatory authority by reshaping established legal standards through enforcement actions.

German law enforcement has acted against 47 cryptocurrency exchange services operating in the country, citing their role in facilitating criminal activities. The Bundeskriminalamt (BKA), which is the main criminal investigation agency in Germany, announced this crackdown in a recent press release.

Previously, German legislator Joana Cotar led an effort to designate Bitcoin (BTC) as an official currency in the country. Presently, El Salvador and the Central African Republic (CAR) are the only countries to have made BTC legal tender.

Lack Of KYC Policies

According to the announcement, the operation was led by the Frankfurt am Main Public Prosecutor Office and the Federal Criminal Police Office (BKA). They focused on platforms that allowed anonymous exchanges between fiat currencies and cryptocurrency.

Authorities targeted these exchanges due to alleged violations of anti-money laundering laws, specifically the failure to implement adequate know-your-customer (KYC) procedures. The platforms are accused of deliberately hiding the origins of funds obtained through illegal means on a large scale, effectively functioning as criminal trading platforms.

As part of these measures, the BKA and ZIT secured extensive user and transaction data via the disabled exchange services, the agency stated. It was noted that some involved are linked to ransomware groups, botnet operators, and darknet traders.

A Broader Strategy

This operation forms part of a broader strategy to combat cybercrime by disrupting the infrastructure that supports illegal activities, aiming to sever the flow of illicit funds. Additionally, German authorities have recently reported various successes in their efforts against cybercrime, including the seizure of the ChipMixer server infrastructure in 2023, which resulted in approximately 90 million euros being secured.

The BKA also highlighted the dismantling of several criminal marketplaces, including the Kingdom Market, as well as the disabling of significant malware threats like Qakbot and Emotet. In any case, Germany has established a comprehensive regulatory framework for cryptocurrencies, enforcing strict anti-money laundering measures that require KYC compliance to help prevent money laundering and terrorist financing activities.

The much-anticipated day has finally come, as the United States Federal Reserve has revealed its decision to lower interest rates, which carries significant consequences for Bitcoin (BTC) and the wider cryptocurrency market. Following this announcement, the markets experienced notable fluctuations.

Optimistic View For Bitcoin
The Fed has just revealed a reduction in the federal funds rate by 0.50 percentage points (bps) for the first time in four years, marking a significant change since the beginning of the COVID-19 pandemic.

This modification adjusts the target range to 4.75% to 5%, a decrease compared to the previous number of 5.25% to 5.5%, which had been the highest rates since 2001. A significant Bitcoin rally is predicted over the next six months after the rate cut.

Analysts widely expected this reduction, with some, like crypto analyst Doctor Profit, suggesting that a 50 bps cut would be beneficial for Bitcoin and the broader digital asset landscape in the short term. Market expert Michael Van de Poppe has also noted that increased volatility is likely for both Bitcoin and Ethereum after this event, potentially driving prices higher in the long run.

Bitcoin Responds
In the wake of the announcement, Bitcoin has shown considerable volatility, with marked price swings. Currently trading around $60,180, the cryptocurrency has experienced ups and downs, dropping about 1% after hitting nearly $62,000 on Tuesday.

As investors process the news, it is uncertain how the market will stabilize in the coming days. An influx of capital into the crypto market could enhance overall growth for Bitcoin, presenting bullish investors with an opportunity to take advantage of favorable conditions.

However, maintaining a balance between upward momentum and market corrections will be vital in shaping the short-term outlook for Bitcoin and other cryptocurrencies going forward.