New Crypto Definitions, Tokenization Approved, AI-Fueled Layoffs
The Securities and Exchange Commission, with the Commodities Futures Trading Commission, issued interpretive guidance Tuesday explaining how it will define different cryptocurrencies. The agencies established four asset categories that are not deemed securities, including digital commodities, digital collectibles, digital tools and payment stablecoins under the GENIUS Act. It also clarifies how securities laws should treat other crypto activities such as protocol staking, protocol mining, airdrops and wrapping non-security crypto assets. The agencies plan to launch a formal rulemaking process in the coming weeks.
On Wednesday, the SEC approved a proposal allowing the Nasdaq (NDAQ) to trade some securities in tokenized form, which brings blockchain technology to the equity markets.
"The Nasdaq SEC approval for tokenized securities is a step in the right direction and follows a broader trend of deeper integration between digital asset and conventional markets, said Jesse Knutson, head of operations at Bitfinex Securities. "It's an encouraging move from the world's largest pool of capital, but it's still a step behind some of the more progressive digital jurisdictions, where these functionalities have been available for several years.
Elsewhere, Crypto.com is cutting 12% of its workforce, or about 180 employees, as part of a pivot toward "enterprise-wide AI integration" in an effort to streamline its organizational structure, according to reports.
Crypto Stocks Retreat
Cryptocurrency stocks sold off early Thursday.
CleanSpark (CLSK) led declines, tumbling more than 4%. Bitdeer Technologies (BTDR) and Bitfarm (BITF) fell about 4%. Circle (CRCL) and Figure (FIGR) dived more than 6%.
Coinbase (COIN) pared its early loss to near 2%.
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