The May 3 cryptocurrency market recap focused on US regulation, tokenized securities, project financing, and Bitcoin-focused corporate activities.
summary
- Coinbase said Senate negotiators reached a rewards agreement for the stablecoin, easing delays around the CLARITY Act.
- The New York Stock Exchange has applied to trade tokenized securities under the DTC beta while maintaining traditional equity rights rules.
- Founders Fund raised $6 billion as Tether backed Bitcoin merger involving Strike and Electron.
Coinbase reported progress on a major crypto bill, while the New York Stock Exchange moved closer to trading token shares under its DTC pilot program.
Coinbase says the CLARITY Act deal removes a major hurdle
Coinbase told Senate negotiators receipt Compromise on a disputed stablecoin rewards clause tied to the CLARITY Act. The agreement could help the bill move toward a hike in the Senate after months of delay.
The dispute focused on whether cryptocurrency companies and stablecoin issuers can offer rewards to users. Banks have argued that yield-like rewards could take deposits away from lenders, while cryptocurrency companies have said they need room to reward real use of the platform.
“In the end, banks were able to impose more restrictions on rewards, but we protected what mattered,” said Faryar Sherzad, chief policy officer at Coinbase. He said that cryptocurrency platforms have maintained the ability to offer rewards based on real network and platform activity.
Meanwhile, the aforementioned settlement was negotiated by Senators Thom Tillis and Angela Alsobrooks. The language would prohibit bonuses that operate like interest or return on a bank deposit.
This gives the banks a portion of what they wanted while leaving a path to cryptocurrency rewards tied to user activity. The bill’s next step depends on committee support, details of the final rules, and broader political support.
The SEC has also scheduled a roundtable in May related to the CLARITY Act and the structure of the digital asset market. This meeting adds another political event for cryptocurrency companies monitoring US rules.
Founders Fund raises record $6 billion vehicle
Peter Thiel Founders Fund closed New $6 billion fund, representing the largest raise in the company’s history. The vehicle will primarily focus on late-stage startup investments.
About $4.5 billion came from limited partners, including sovereign wealth funds. Thiel, management and employees contributed the remaining $1.5 billion.
The fund puts Founders Fund in a stronger position to compete for large private technology deals. It also shows that venture firms are still able to attract capital for mature startups, even as many companies delay public listings.
NYSE filings for token securities trading
The New York Stock Exchange introduced a Suggested Changing the rules with the Securities and Exchange Commission to allow tokenized issues of eligible securities to trade on its market. The plan will run under the DTC pilot coding program for three years.
Eligible tokenized securities must retain the same CUSIP, ticker, rights and privileges as their traditional issues. They will trade on the same order book and follow the same execution priority.
Clearing and settlement through DTC will remain on a T+1 basis. The NYSE also said it is “evaluating different approaches to tokenization” and may come up with more proposals if it chooses another structure.
Tether supports Bitcoin merging plan
Shares of Twenty One Capital rose in after-hours trading of Tether Supported Merger plan involving Strike and Electron Energy. The proposal would combine exposure to Bitcoin treasury, payments and mining infrastructure.
Strike will add payments and financial services, while Elektron will add mining operations. Tether said the deal could combine Bitcoin’s “product, brand and consumer leadership” with Raphael Zagury’s operational and capital markets expertise.
