As 2024 Comes To An End, Stablecoins, & In Particular Tether’s USDt, Have Proven To Be Major Winners - We Discuss The Momentous Year That Stablecoins Have Had. According to Coinmarketcap, stablecoins currently have a market cap of USD 212.28B. Tether’s USDt represents 66% of this market cap, followed by Circle’s USDC accounting for USD 42B, accounting for 20%. Athena’s USDe, an algorithmic stablecoin using BTC and ETH basis as backing, is in third place with a market cap of USD 5.9B. This year has been successful for USDt for a number of reasons. The stablecoin added USD ~48B to its market cap since the start of the year. Tether’s CEO Paolo Ardoino views this as a result of USDt uptake in emerging markets where access to traditional USD is strained. In addition, the company has been showcasing the extent of its performance via quarterly financial results. In October, Tether reported consolidated profits of USD 7.7B through the first nine months of 2024, for example. The realization, by some US politicians, that stablecoins offer new demand for US debt has also been a major development for their issuers in 2024. Trump has vowed to establish ‘a framework to enable the safe, responsible expansion of stablecoins’ during his term. He has pitched stablecoins as ‘allowing us to extend the dominance of the US dollar to new frontiers all around the world.’ According to Trump, such a policy would bring ‘billions of people’ in the crypto space, increasing the ability of individuals to ‘[store] their savings in bitcoin.’ In a September interview the top Democrat on the House Financial Services Committee Maxine Waters said she envisions stablecoin legislation as possible under a ‘grand bargain.’ Waters, known as a particularly anti-crypto politician previously, described digital assets as ‘inevitable’ during the interview. In addition to a new-found political situation, Cantor Fitzgerald CEO Howard Lutnick has been nominated to serve as Secretary of Commerce. Lutnick is an outspoken BTC proponent and his firm manages US treasuries in Tether’s stablecoin reserves.TAKEAWAY: Stablecoins have been a unique focus of attention for regulators in the past. So much so that Meta’s (NASDAQ: META) efforts to launch a type of stablecoin were halted by global regulators in 2022. The episode saw high profile testimonies by Mark Zuckerberg in front of Congress where Waters, Chair of the House Financial Services Committee at the time, led criticism of the project. In 2021 the Financial Times reported that Janet Yellen and Jerome Powell had direct conversations over whether to allow the project to move forward, with the Treasury Secretary ultimately deciding against it. In 2024, the political dynamics surrounding stablecoins could not be more different: the incoming US administration is supportive of stablecoins and views them as congruent with core national interests.

• Former German Finance Minister Christian Lindner criticized Chancellor Olaf Scholz for not adopting BTC in Germany's financial strategy. In a Bundestag speech, Lindner cited the US as an example of crypto-friendly policies, urging a reassessment of Germany's digital finance approach. - link - @TheDefiant • Ripple is expected to launch its USD-pegged dollar stablecoin, RLUSD, today. Following an announcement from the company’s CEO Brad Garlinghouse RLUSD was approved by New York state regulators, the stablecoin is set to be available on platforms such as Uphold and MoonPay. RLUSD is backed by US dollar deposits and government bonds. - link - @CoinDesk • London-based stablecoin startup BVNK secured USD 50M in a Series B funding round led by Haun Ventures. The company, valued at approximately USD 750M, is focusing on expanding stablecoin adoption in Europe as the region evolves in terms of regulation. - link - @Forbes • FTX's bankruptcy distribution plan is expected to be implemented on January 3. The plan, sanctioned by Judge John Dorsey, will begin initial payouts to creditors within 60 days through Kraken and BitGo. - link - @FTX • NFT collection CyberKongz received a Wells Notice from the SEC, indicating potential enforcement action. The team expressed disappointment and plans to fight for clearer NFT regulations. The SEC's concerns include issues with token usage in blockchain games and contract migrations. - link - @TheBlock • Anchorage Digital was granted a BitLicense by the New York State Department of Financial Services. The license permits the company to provide crypto trading services to New York institutions, and facilitate the secure custody and settlement of trades via Anchorage Digital Bank N.A. - link - @Anchorage • Crypto exchange Bitget was granted a Bitcoin Service Provider license in El Salvador. On December 16, the Central Reserve Bank of El Salvador authorized Bitget to provide BTC-related services, such as trading, payment processing, and custody. In addition, Bitget is pursuing a Digital Assets Service Provider license to offer a broader range of services. - link - @Cointelegraph • Exodus Movement, the firm behind the crypto wallet app Exodus, obtained approval for listing on the NYSE. Initially planned for May, the listing was pushed to December 18 after undergoing SEC review. Chief Executive Officer JP Richardson emphasized the listing's expected improvements to the company's liquidity and market presence. - link - @CoinDesk • Ethena introduced USDtb, a stablecoin backed by BlackRock’s Ethereum-based money market fund, ‘BUIDL.’ The announcement on Monday revealed that USDtb is supported by over USD 500M in US t-bills. - link - @TheBlock • Tether has taken a stake in European stablecoin-issuer StablR. The investment aims to further regulated digital asset adoption within the EU, amidst preparations for the forthcoming EU MiCA regulation. StablR specializes in providing euro and dollar-pegged stablecoins that focus on enhancing liquidity management and minimizing transaction fees for its users. - link - @TheBlock

• Bloomberg: ‘Like Buying Lottery Tickets’: Crypto Surge Lures Final Holdouts https://www.bloomberg.com/news/articles/2024-12-16/bitcoin-at-100-000-lures-long-time-crypto-holdouts-encouraged-by-trump-win

• Outlook For 2025: Expect More New Highs, But Volatility Too, Bitfinex Alpha, December 16, 2024 • Bitfinex's weekly research note provides an outlook for crypto and BTC into 2025.

• Bitcoin Is A Unique Long-Term Investment Thesis, Says Canaccord's Joseph Vafi, CNBC, December 16, 2024 • Joseph Vafi, Canaccord Genuity managing director of equity research, discusses crypto market dynamics.