The July Crypto Newsletter

This month's theme is adoption. While crypto prices have been shattered over the past month (excluding the 48-hour run to this article's publication), arguments for crypto adoption beyond just Bitcoin have never been higher.

This month, we discuss:

• Ethereum and Solana ETFs,
• Donald Trump's impact on crypto,
• The potential of a bitcoin-backed world,
• And tokenizing Real World Assets (RWAs).

How could these bring about greater regulatory certainty in the blockchain world? Let's dive into how these worldwide updates drive blockchain technology's real-world utility.

Ethereum ETFs: Trading Could Start Tuesday, 23rd July

The Securities and Exchange Commission (SEC) announced that Ethereum ETFs could begin trading as early as Tuesday, July 23rd, causing a sharp spike in investor interest in crypto-wide assets.

Such a development reverberates throughout the entire industry, particularly as less than three months ago, Concensys sued the SEC over its 'unlawful regulation' of the Ethereum network.

ETH exchange traded-funds issuers were told by the SEC that funds can start trading July 23, according to sources.

The development of an Ethereum ETF has opened the door to alternative crypto asset financial instruments, notably relating to Solana.

Is a Solana ETF Really Possible?

At the end of June, asset manager VanEck filed for a Solana Exchange Traded Fund in the US. While it is unlikely this will be a swift deployment, the filing's very existence displays a growing belief in altcoin adoption and that cryptocurrencies beyond Bitcoin and Ethereum are genuine financial infrastructures.

Solana has had an extremely impressive 12 months, notably integrating with Stripe and X (Twitter) for payment solutions. Solana is increasingly being seen as a retail layer payment solution aiding VanEck's file for an ETF.

Predictions about Net inflows for the ETH and SOL ETFs range dramatically, but the SEC's swift U-turn on policy suggests that a greater regulatory shift is approaching, particularly if Donald Trump were to win again.

Could a Trump Presidency Mean an end to Gensler's SEC?

Gary Gensler, the current chair of the SEC under the Biden administration, has had an increasingly hard stance on crypto regulation. This has caused

In last month's newsletter, we discussed how the crypto industry is thriving in Eastern regions, leading to Donald Trump's statement about wanting America to produce every bitcoin left to mine (read last month's newsletter!)

American polls increasingly favor Donald Trump over Joe Biden; it is undoubtedly true that a Trump administration would create favorable crypto regulation to foster industry growth, innovation, and regulatory clarity.

Regulations will get out of the way of innovation.

This is what Trump said during an appearance in early July. Promising to demystify crypto regulation might simply be a ploy to gain popularity with American voters, but there is likely some weight behind what he is saying.

Trump sees the crypto sector as a method for capitalizing on global finance; the best way to do that is to create favorable legislation. This would include clarity on Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements, clarity around the SEC's jurisdiction, and certainty on stablecoins and digital securities.

US Government Fear BTC will replace USD as the Global Reserve

The discourse around this topic is particularly rife following reports in June that the US national debt lay just under $35 Trillion. Over the past 100 years, the U.S. federal debt has increased from $403 B in 1923 to $34.8 T in 2024.

U.S. Treasury secretary Janet Yellen has warned countries around the world are moving away from the U.S. dollar.

Of course, as the old crypto adage goes, this is entirely speculative. However, it builds into the crypto adoption argument, particularly Bitcoin's.

MiCA Regulation has Arrived

Markets in Crypto Assets (MiCA) has set a standardized rulebook across the EU, legitimizing crypto businesses against the tide of industry doubters.

Asset Referenced Tokens (ARTs) — stablecoins that maintain a value against a traditional asset, such as gold.

E-Money Tokens — stablecoins that maintain a value against a single fiat currency, such as USDT and USDC.

Stablecoin issuers must comply with these new EU standards, which leaves the door open to new issuers and potential exits for existing players. Crypto exchanges have already delisted various stablecoins in light of these new regulations.

The EU is expected to shift towards Euro-backed stablecoins for primary use in the European Union. These regulations are expected to ignite competition from small and large tech players who want to engage in Web3 and blockchain activities. How do these regulations impact digital Real World Assets?

Real World Assets: The time is Now

Tokenization has been the superstar of July. In perhaps the greatest RWA announcement in history, INX (a leading tokenized asset exchange) launched an on-chain digital representation of Nvidia stock.

This is a pivotal moment in blockchain history as it displays a willingness and a demand for tokenized financial instruments. Furthermore, Nvidia is only the start of a long list of tech companies wishing to follow suit.

Trading fees are reported to be 90% cheaper than traditional methods, and trade settlement times are much swifter. These innovations have caused various titanic projections for the RWA sector over the coming years, the greatest of which suggests the industry will reach $30 trillion by 2030.

Following MiCA's new regulations, however, it becomes clear that ARTs (as defined in the EU) will play an increasingly important role in global financial markets. If you want to learn more about digital securities and compliance, read our guide on Security Token Offering (STO) Compliance.

Crypto AML News

Taiwan Passes New AML Sentencing Legislation

According to Taiwan's new crypto legislation, individuals or businesses that provide crypto services must complete new Anti-Money Laundering procedures and record the capacity of their services with federal authorities.

When this law is in full effect, firms that fail to register the full extent of their services will face up to 2 years in prison and up to a $153,800 (USD) fine.

The rule also states that overseas firms operating in Taiwan must establish locally based entities and apply for a local AML registration.

Traditional Money Launderers are Veering Toward Crypto

Various reports from Chainalysis, a leading on-chain forensics service, declare that crypto is increasingly favored as a money laundering vehicle.

The volume of on-chain transactions to centralized exchanges (from an unhosted wallet, such as MetaMask, to an exchange like Binance) has increased. Notably, the value of these transactions is just beneath the enhanced customer due diligence threshold.

These transactions do not come from traditionally flagged accounts, meaning that sophisticated reporting software sees them as above board.

Chainalysis found a glut of transactions valued just below the $10,000 mark — at which point additional know-your-customer rules kick in.

The report acknowledged that just because a transaction is $1 below the reporting threshold, it isn't inherently illicit. However, it is an industry-wide trait that needs further investigation.

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