Coinbase adds more wobbly legs to stool 16 Feb 2024 Coinbase posted its first annual profit since 2021, sending its shares up 12%. But the $46 bln digital currency exchange is moving from volatile trading fees to even shakier revenue streams, such as interest on deposits and legally ambiguous staking.
Peter Thiel’s latest bitcoin bet is a coronation 13 Feb 2024 The billionaire’s Founders Fund pocketed $1.8 bln in 2022 on crypto investments before dipping back in last fall. Bitcoin has since been anointed with an ETF and technology that furthers its use. The currency isn’t yet legitimate, but Thiel’s return marks its growing status.
Gary Gensler crafts SEC into a mighty sandcastle 25 Jan 2024 The chief US securities watchdog has outpaced predecessors in making rules and extracting penalties from firms like Morgan Stanley and D.E. Shaw. But his aggressive approach has inflamed a wider war on regulation. Gensler’s accomplishments could yet wash away.
Jack Bogle’s ghost haunts Vanguard’s crypto plans 19 Jan 2024 The asset manager’s rival BlackRock is plunging into digital currency with a bitcoin ETF that brought in over $1 bln in a week. That strategy, divergent from Vanguard, highlights the desperation to differentiate. Bogle’s former firm’s decision to shun crypto may leave it behind.
Bitcoin ETFs only entrench one frivolous use case 10 Jan 2024 The SEC finally greenlit BlackRock, Grayscale and other funds to track the crypto price, with trading due to start this week. It’ll be easier to make – and lose – money in the volatile digital asset, but it’s no closer to being a currency, store of value or network for new apps.
Blockchain’s rebirth will pass United States by 19 Dec 2023 Regulators are cracking down on digital asset firms while Congress dithers over passing rules to govern them. Financial hubs like London, faster to set guidelines, will capture the value created not just by crypto, but by potentially powerful distributed ledger technology.
Bitcoin ETF race is a shiny distraction 15 Dec 2023 The digital token’s price has spiked as a US exchange-traded fund creeps closer to approval, bringing it back into the ranks of the world’s most valuable assets. But as with gold, economic swings, not accessibility or inherent value, will mostly determine its long-term worth.
Binance mega-fine fits go-big-or-go-home vibe 21 Nov 2023 The cryptocurrency exchange will pay $4.3 bln for violating US laws, and its founder will stand down. It’s more than HSBC and Goldman Sachs paid for big financial transgressions, and racked up in a fraction of the time. Crypto is precocious in its lows as well as its highs.
Lina Khan’s spirit haunts T-Mobile deal ghost 10 Nov 2023 Consumers are suing the $170 bln telecom company for its deal with Sprint. Given government watchdogs can’t bust up big tech, it seems ambitious. But recent jury verdicts illustrate rising movements against companies. Plus the hassle creates yet another deal impediment.
Capital Calls: Regulating crypto 7 Nov 2023 Concise views on global finance: The US Securities and Exchange Commission is struggling to hire digital token experts, partly because prospective recruits aren’t willing to acquiesce to the agency’s requirement that they sell their holdings in bitcoin and beyond.
SBF’s guilty verdict will help crypto break free 3 Nov 2023 Sam Bankman-Fried’s crimes worsened a rout that wiped trillions of dollars in value from digital assets. The FTX founder’s conviction suggests that, even in crypto, bad actors will be held to account. That could help rebuild trust in the idea of a trustless financial system.
Biden AI plan is one step in avoiding crypto trap 30 Oct 2023 The president’s new executive order aims to set regulatory guardrails for artificial intelligence. It still leaves a big hole for Congress to fill. Failing to set coherent rules risks the kind of piecemeal enforcement that hobbled crypto, but for a technology with higher stakes.
Bankman-Fried circus will be a singular clown show 4 Oct 2023 The FTX founder’s fraud trial bookmarks crypto’s rise and fall. Risk-loving speculators were the most obvious losers, while more everyday investors suffered in previous scandals such as Enron and Countrywide. This time, the spectacle is less likely to lead to new protections.
Capital Calls: US budget 21 Sep 2023 Concise views on global finance: US House Speaker Kevin McCarthy is siding with hardline conservatives to fund the government. Empowering the further-right flank narrows the already slim odds of new Ukraine aid, cannabis reform and crypto clarity.
Capital Calls: Coinbase’s Circle deal 22 Aug 2023 Concise views on global finance: Crypto exchange Coinbase is investing in struggling $26 bln stablecoin issuer Circle. Tokens tracking the US dollar haven’t delivered on hopes of transforming finance; the deal promises little current payoff, but at least keeps the dream alive.
Crypto survivors will be severely scarred 17 Aug 2023 Digital asset custodian BitGo says it raised money at a $1.7 bln valuation, days after a rival filed for bankruptcy. As with stablecoins, exchanges, and currencies, winners are emerging in crypto. Stumbles will still happen, though – a painful but necessary process.
Capital Calls: Coinbase raises the stakes 4 Aug 2023 Concise views on global finance: For the first time, the $21 bln cryptocurrency exchange generated more revenue from services like pledging coins for blockchain initiatives than from transaction fees. Diversification is sensible, but 10 state regulators jeopardize the strategy.
Coinbase is a crypto conundrum, squared 20 Jul 2023 The exchange boasts powerful Wall Street allies like BlackRock’s Larry Fink, and a recent court decision gave its shares a boost. But its future still hangs on unpredictable judges and politicians. The real unknown? Why the market thinks Coinbase is worth anything like $25 bln.
Winklevoss twins take strike two with crypto hype 11 Jul 2023 The founding brothers of crypto investment firm Gemini are suing the parent of bankrupt crypto lender Genesis over a soured deal that led to almost $1 bln in losses. The twins, known for their spat with Meta’s Mark Zuckerberg, are a bellwether of another messy tech hype cycle.
Capital Calls: Digital euro, Thames Water 28 Jun 2023 Concise views on global finance: Brussels is in a new push to convince EU member states and the European Parliament to endorse a digital euro; Britain’s Thames Water could be placed into special administration.