In this recap of the crypto world, we will explore the events and news that had the most significant impact in the past week of Sept 11. Our focus will be on the following developments:
- France Launches a Training Program for Financial and Crypto Influencers
- FTX Granted Court Approval to Sell $3.4 Billion in Crypto Holdings
- U.S. Inflation on the Rise Again
- SEC Sues Stoner Cats NFT Collection
France Launches a Training Program for Financial and Crypto Influencers
In a bid to foster responsible financial influence and marketing, French regulators Autorité des Marchés Financiers (AMF) and Autorité de Régulation Professionnelle de la Publicité (ARPP) have introduced a training program aimed at financial and crypto influencers. This program will equip influencers with the necessary knowledge and skills to provide informed investment recommendations, including insights into traditional financial instruments, crypto-assets, and unconventional investment products.
The process begins with influencers undertaking a specialized course that dives deep into the intricacies of advertising equities, bonds, funds, derivatives, exchange-traded funds (ETFs), and the increasingly enigmatic world of cryptocurrency. However, it does not stop there. The program also delves into unconventional investment products unique to the French market.
To qualify for the Responsible Influence Certificate, candidates must meet stringent criteria. First and foremost, they are required to pass a rigorous course examination consisting of 25 multiple-choice questions. Achieving a minimum score of 75% is mandatory to successfully clear the course.
The driving force behind this innovative certification program is investor protection. By enhancing the knowledge and competence of financial influencers, France aims to safeguard the interests of investors who rely on these influencers for insights. This initiative aligns with the broader goal of fostering transparency and accountability within the financial industry, thereby strengthening the integrity of the market. Read more on this here.
FTX Granted Court Approval to Sell $3.4 Billion in Crypto Holdings
FTX, the bankrupt cryptocurrency exchange, has obtained court approval to embark on a monumental journey – the liquidation of approximately $3.4 billion in cryptocurrency assets. This court-sanctioned move marks a pivotal moment in the exchange’s quest to repay its creditors, and it comes with a detailed plan that outlines the sale, staking, and hedging of its extensive digital asset holdings.
The court’s approval sets the stage for the liquidation of FTX’s crypto holdings, unlocking their value for equitable distribution among creditors. This move aligns with the broader goal of addressing FTX’s financial obligations and ensuring that its creditors receive the compensation they are owed.
The roadmap for the liquidation of FTX’s crypto holdings was initially outlined in August. Under this plan, Mike Novogratz’s Galaxy Digital assumes the crucial role of the investment manager responsible for overseeing the sale process. As per Cointelegraph, the plan is designed to ensure a measured and responsible approach to asset liquidation.
To maintain a steady pace, FTX has capped its first weekly selling at $50 million, with subsequent weeks seeing a potential increase to $100 million per week. Importantly, this cap may be raised to $200 million on an individual token basis, subject to the exchange obtaining written authorization from the court.
U.S. Inflation on the Rise Again
According to the Bureau of Labor Statistics (BLS), U.S. inflation, measured by the Consumer Price Index (CPI), has surged to 3.7%, which is higher than expected. This increase follows a trend from the previous month when the CPI went up to 3.2% after hitting a low of 3% in June.
While these numbers reflect a resurgence in inflation, it is crucial to contextualize the current situation. In recent months, inflation rates in the U.S. have exhibited fluctuations. April recorded a significant inflation rate of 4.9%, followed by 4% in May. March saw inflation peak at 5%. However, the trend started to change after July, when the CPI figure began to rise again.
Therefore, the upcoming Federal Open Market Committee (FOMC) meeting, scheduled for September 19-20, holds significant implications for the nation’s economic landscape. As per WatcherGuru, Federal Reserve Chair Jerome Powell, addressing the annual Jackson Hole central banking symposium in August, hinted at the possibility of another interest rate hike as a means to control inflation and bring it in line with the Federal Reserve’s targeted 2%.
SEC Sues Stoner Cats NFT Collection
In a surprising twist of events, the United States Securities and Exchange Commission (SEC) has taken decisive legal action against the Stoner Cats NFT Collection. This move comes in response to allegations that the project engaged in the sale of unregistered securities in conjunction with the launch of their NFTs in 2021.
The core of the SEC’s case revolves around the substantial $8 million that Stoner Cats raised during their NFT sale. In this unique venture, participants acquired Ethereum-based NFTs, which effectively served as admission tickets to access an animated web series. However, the SEC contends that the NFTs were promoted as investment opportunities, complete with the potential for resale on secondary markets, thereby classifying them as unregistered securities.
In response to these allegations, Stoner Cats LLC, the entity behind the NFT-driven animated series, has opted to comply with a cease-and-desist order issued by the SEC. As part of the negotiated settlement, the company has agreed to pay a significant civil penalty totaling $1 million, though it has not formally admitted any wrongdoing. Additionally, Stoner Cats LLC has committed to the destruction of any remaining NFTs within its possession. Furthermore, the company will establish a “Fair Fund” designed to provide refunds to investors who partook in the minting of these NFTs. Read more on this here.