Crypto Biz: A crypto policy expert may run the SEC

The future of cryptocurrency regulation in the United States could see a significant shift as Paul Atkins, a former commissioner of the Securities and Exchange Commission known for his pro-innovation views, emerges as a frontrunner to lead the agency under a new administration at the White House. 

Atkins previously served as commissioner and staffer under two chairs, Richard Breeden and Arthur Levitt, and is known as an expert in securities law and a balanced regulator. Most importantly, he holds a strong background in digital assets. 

According to his profile on Patomak Global Partners, where he serves as CEO, Atkins has been at the core of industry efforts to develop best practices for digital asset issuances and trading platforms since 2017. He co-chairs the Token Alliance, an initiative by the Chamber of Digital Commerce aimed at shaping policy for tokenized networks and digital asset issuers.

His appointment could mark a stark contrast to the current SEC chair, Gary Gensler, who is slated to step down in January. Gensler’s term was marked by a “regulation by enforcement” approach, leading to frequent lawsuits and limited guidance for crypto companies. 

However, the SEC’s role in crypto regulation may become less critical if rumors of shifting digital asset oversight to the Commodity Futures Trading Commission (CFTC) are confirmed, as the agency is seen as more innovation-friendly. The incoming administration of President-elect Donald Trump is said to be considering this move.

 This week’s Crypto Biz also explores Singapore Gulf Bank’s plans to acquire a stablecoin firm, Binance delisting tokens, Cantor Fitzgerald’s stake in Tether and the first DOGE ETP.

Binance delisting sends five tokens tumbling 40%

Crypto exchange Binance is set to delist five crypto tokens by Dec. 10, citing a lack of compliance with industry standards. Tokens to be delisted include Gifto (GFT), IRISnet (IRIS), SelfKey (KEY), OAX (OAX) and Ren (REN). Arbitrage strategies, loans and futures positions on these tokens will be closed on Dec. 3, while isolated and cross-margin borrowings are already suspended. The announcement triggered a significant sell-off, leading the tokens to plummet by nearly 40% on Nov. 26. The exchange did not disclose what requirements the tokens failed to meet. 

Singapore Gulf Bank seeks $50M to fund stablecoin firm acquisition

The crypto-friendly digital bank Singapore Gulf Bank is reportedly looking for a fund injection of at least $50 million as it plans to acquire a stablecoin payments company in early 2025. The bank is reportedly willing to sell 10% of its equity by early 2025 to raise funds for an acquisition, according to anonymous people with direct knowledge of the matter. The company has been in talks with a Middle East sovereign wealth fund and other potential investors. The funds would be used to enhance the bank’s payment network and to purchase a stablecoin payments firm in the Middle East or Europe in the coming months. The Singapore Gulf Bank is run by the Whampoa Group, a family office based in Singapore.

Cantor Fitzgerald acquires 5% stake in Tether for up to $600M: Report

Financial services firm Cantor Fitzgerald now owns a 5% stake in stablecoin issuer Tether, which could position the company to receive more political support from the incoming Trump administration. According to WSJ, the stake was valued at as much as $600 million. Cantor Fitzgerald was one of Tether’s most important banking partners at a time when the stablecoin issuer was cut off by many banks around the world. Howard Lutnick, Cantor Fitzgerald’s CEO, was selected as Donald Trump’s secretary of commerce nominee on Nov. 19. Lutnick said he would step down as Cantor Fitzgerald’s CEO upon Senate confirmation.

Valour launches first-ever DOGE ETP

Crypto fund issuer Valour has launched the first exchange-traded product (ETP) for Dogecoin (DOGE). The ETP will trade on Sweden’s Spotlight Stock Market, enabling retail and institutional investors to gain exposure to the world’s largest memecoin by market cap in a regulated fund wrapper. With the fund’s launch, DOGE’s market capitalization surpassed Porsche’s on Nov. 27 by reaching $57.8 billion. The memecoin price has risen 175% during the past month, and some crypto traders predict a potential 1,000% DOGE rally based on emerging technical chart patterns.

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