What happened this week in the world of blockchain and cryptocurrencies? The most relevant local and international events, along with engaging background reports, concisely summarized in the weekly review.
Selected articles of the week:
Since Trump took office, the Securities and Exchange Commission (SEC) has undergone significant restructuring. Instead of confronting new crypto services with lawsuits, the agency is now expected to be more open to innovation. Consequently, dozens of applications for altcoin funds have landed on the SEC’s desk. The most anticipated are ETFs for the cryptocurrencies Solana and XRP. Until recently, however, the agency did not acknowledge any of these applications. Just six weeks ago, the SEC, led by Democrat Gary Gensler, instructed the issuing exchanges to withdraw their Solana applications. This has now changed. The agency started the clock this week for ETFs on Solana, Litecoin, and Dogecoin. These new funds could hit the market as early as the end of March and no later than October.
The SEC has acknowledged an application for a Solana ETF, starting the clock for approval or rejection with the deadline in October.
Settlement of some SEC lawsuits
In June 2023, the SEC filed a lawsuit against Binance, its US subsidiary, and founder Changpeng Zhao (“CZ”). The agency accused the world’s largest crypto exchange of artificially inflating trading volumes, misusing customer funds, and deceiving investors about market surveillance practices. The founder served four months in prison for similar charges, and Binance paid $4 billion to the US Department of Justice. However, under the new SEC leadership, the legal dispute could soon be resolved. Both parties have jointly requested a pause, which is likely to be followed by a settlement. Crypto exchanges Coinbase and Kraken are also engaged in ongoing legal disputes with the SEC.
The SEC and the crypto exchange Binance have requested a 60-day pause in their ongoing legal dispute and lawsuit.
FTX repayments in a week
The once-leading crypto exchange FTX collapsed in November 2022 after a liquidity crisis revealed mismanagement and misuse of customer funds, leading to bankruptcy. Founder Sam Bankman-Fried was subsequently arrested and faces multiple fraud charges. Former FTX customers are now considered unsecured creditors in the ongoing bankruptcy proceedings. Two and a half years after the collapse, the first payouts to creditors with claims under $50,000 will begin next week. In total, FTX will pay out $16 billion over the coming months to years.
The insolvent crypto exchange FTX will begin repaying the USD 16 billion in customer funds on February 18, 2025.
Steady outflows from crypto exchanges
The collapse of FTX shook confidence in centralized crypto exchanges and triggered widespread concerns about the safety of user funds held on these platforms. In response, many investors moved their assets into self-custodied wallets to gain more control and security over their holdings. This process can be directly tracked on the blockchain. Additionally, new regulations in the European Union have made self-custody more attractive.
After most significant failures of centralized platforms such as FTX, we could observe a large uptick in Bitcoin withdrawals from exchanges.
Cryptocurrencies in retirement planning
Furthermore, a new study by the crypto exchange Bitget shows a significant shift in retirement planning among younger generations. Generations Z and Alpha are showing growing distrust in traditional pension systems and a strong preference for cryptocurrencies. 78% of respondents stated that they would rather rely on alternative retirement options such as crypto investments, real estate, or private pension funds. If retirement institutions want to keep up, they should consider offering relevant services.
A new study by the crypto exchange Bitget Research reveals a major shift in retirement…
