Top Headlines
- ? Thanks to the extensive overhaul of SEC regulations pertaining to equity crowdfunding, the fundraising method may prove to be a viable alternative to venture capital fundraising. Our November 8th newsletter highlighted some of the changes, including Reg CF offering limits being raised to $5M from $1.07M, while also amending investment limits for investors to increase opportunities for small and medium enterprises to raise capital (Pitchbook, Crowdfund Insider)
- Bitcoin rallied beyond $18K this week, although many investors are bracing for a price correction in upcoming weeks (Forbes)
- Outgoing SEC Chairman Jay Clayton pointed to inefficiencies in existing payment systems as one of the reasons why Bitcoin is on the rise, one of his most supportive statements to date concerning the blockbuster cryptocurrency (Coindesk)
Cryptocurrency Spotlight:
- A representative from Deutsche Bank claimed this week that institutional investors are increasingly turning towards Bitcoin as opposed to gold in efforts to hedge US dollar risks and inflation (Zero Hedge)
- President Trump nominated former Coinbase general counsel Brian Brooks for a five year term as the Comptroller of the Currency this week (Coingeek)
- Coinbase has increased its institutional asset holdings under custody to over $20B, with a $14B rise since April of this year (Coindesk)
- The SEC issued a no-action letter this week for a coin offering by avatar social media platform IMVU, who has been conducting virtual transactions for their VCOIN which allows users to customize their avatar on the platform. This is only the third no-action letter issued by the SEC to a cryptocurrency firm (Coin Telegraph)
- The Texas State Securities Board has brought enforcement actions against 15 cryptocurrency firms (10 of which are operated by the same individual) after alleging the firms promoted and sold fraudulent crypto investments (Texas State Securities Board)
International Spotlight:
- ?? In response to the growing economic crisis in Venezuela, the United States has enlisted crypto firm Circle to circumnavigate domestic financial restrictions as enacted by disputed president Nicolás Maduro. Circle, along with US fintech company Airtm and the elected Bolivarian Republic of Venezuela government, developed a pipeline of financial aid for Venezuelan citizens using the USDC coin, which is backed by the US dollar (Circle blog)
- ?? Chinese president Xi Jinping encouraged world leaders to embrace central bank digital currencies during his speech at the G20 meeting this week, asking financial institutions develop “standards and principals for central bank digital currencies with an open and accommodating attitude” (Coindesk)