Ripple’s Chief Legal Officer, Stuart Alderoty, has delivered a scathing critique of Gurbir Grewal, the Director of Enforcement at the Securities and Exchange Commission (SEC), regarding comments made about the compliance efforts within the crypto industry.

During a recent SEC event, Grewal suggested that the burgeoning crypto sector was employing various tactics to circumvent regulatory oversight, such as relocating or registering in different jurisdictions. He also addressed concerns regarding the SEC’s regulatory approach, refuting allegations of overreach and exceeding its regulatory mandate.

Alderoty, however, highlighted the inconsistencies in Grewal’s remarks, pointing out instances where the SEC had potentially overstepped its bounds and abused its authority. He specifically mentioned the DebtBox sanctions for “gross abuse of power,” a Ripple judge’s criticism for lacking “faithful allegiance to the law,” and the “arbitrary and capricious” ruling in the Grayscale case.

Moreover, Alderoty criticized the SEC’s erratic application of the Howey test, a standard used to determine whether certain transactions qualify as investment contracts. He noted that the SEC’s guidance on the Howey test, still present on its website, fluctuates arbitrarily, leading to confusion and inconsistency within the industry.

According to Alderoty, the SEC must address these concerns to restore credibility and trust. He urged the regulator to acknowledge and rectify the institutional damage inflicted by its approach to crypto regulation, emphasizing the necessity for enhanced transparency and accountability.

In conclusion, Alderoty emphasized that if the SEC genuinely aims to mend the institutional harm caused during what he termed as a “misguided war on crypto,” it must confront these truths and adopt a more responsible and balanced regulatory stance.

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Oppenheimer, a New York-based financial firm, has revised Coinbase’s share price target to $276, marking a notable increase from the previous target of $200, while maintaining its buy rating.

The new price target of $276 represents a roughly 10% surge from Wednesday’s closing share price of Coinbase, which stood at $251.58.

Owen Lau, Executive Director at Oppenheimer, highlighted the ongoing adoption of digital assets, particularly following the approval of spot bitcoin ETFs in January. Lau projected a significant increase in Coinbase’s 1Q24 trading volume, estimating a 95% quarter-on-quarter and 107% year-on-year rise to $300 billion.

Additionally, Lau pointed out the growing liquidity in the space, with USDC’s market capitalization witnessing a 12% uptick between the first quarter of 2024 and the last quarter of 2023.

According to Oppenheimer, the sustained adoption of digital assets and blockchain technology positions Coinbase as a key beneficiary in the cryptocurrency sector over the long term.

Lau emphasized that the upward revision of the price target for Coinbase shares reflects the company’s improved fundamentals and higher trading revenue. Factors such as strong inflows into spot bitcoin ETFs, the halving, and increased retail participation contribute to this growth. However, Lau noted that Coinbase’s Base Layer 2 wasn’t a significant revenue driver factored into the increased target price for the stock.

In pre-market trading on Thursday, Coinbase shares surged by 3.29% to $259.85 as of 8:56 a.m. ET. Since the beginning of the year, the cryptocurrency exchange’s share price has climbed more than 44%.

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PayPal has unveiled a new service allowing its U.S. clients to conduct cross-border money transfers utilizing the company’s PYUSD stablecoin.

Commencing Thursday, users of the company’s international payments service, Xoom, based in the U.S., can convert PYUSD to USD and subsequently send funds to “recipients in approximately 160 countries” without incurring transaction fees, PayPal stated.

Silicon Valley-based payments behemoth PayPal is once again expanding the utility of its PYUSD stablecoin, aiming to facilitate more efficient international transactions.

The move signifies PayPal’s confidence in the market’s appetite for more cost-effective methods of sending international money transfers. Referencing a World Bank report, PayPal noted that the “global average cost of sending $200 is just over 6%.”

In addition to promoting the use of its stablecoin, launched last year, PayPal aims to establish itself as a reputable entity in the realm of digital assets, aligning with the evolving landscape of cryptocurrency adoption worldwide.

Jose Fernandez da Ponte, PayPal’s Senior Vice President of the blockchain, cryptocurrency, and digital currency group, emphasized the significance of enabling U.S. Xoom users to fund cross-border money transfers using PYUSD, furthering the company’s objective of mainstream cryptocurrency adoption.

Amid PayPal’s announcement, the stablecoin market appears to be gaining momentum. Ripple recently disclosed its plans to introduce a stablecoin primarily targeting enterprise clients, foreseeing the stablecoin market potentially reaching $2.8 trillion by 2028.

Presently, Tether’s USDT and Circle’s USDC stablecoins dominate the market in terms of supply, according to data from The Block Data Dashboard.

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Ethena Labs has announced the addition of bitcoin as a backing asset for its USDe synthetic dollar, tapping into the growing enthusiasm for the world’s oldest digital asset among traders.

The decentralized finance (DeFi) protocol stated in a series of updates that anchoring USDe with Bitcoin will facilitate significant scalability, multiplying its capacity by more than 2.5 times and enhancing safety measures for traders. This strategic move arrives as bitcoin derivative markets outshine their ether-based counterparts.

“With Ethena’s scaling trajectory nearing $10 billion, this enhanced backing provides a more resilient foundation, ensuring a safer environment for users,” the protocol remarked, noting that the current supply of USDe is valued at around $2 billion.

Ethena also highlighted Bitcoin’s superior liquidity and duration profile for delta hedging compared to liquid staking tokens as a key factor in the decision to incorporate it as a backing asset.

Previously, USDe was solely supported by staked ether (ETH), as indicated on Ethena Labs’ website. However, heightened trader interest in Bitcoin prompted the protocol’s adjustment.

Ethena noted a substantial surge in bitcoin open interest, which soared by 150% to reach $25 billion over the past year, leading to more than doubling USDe’s scalability potential. In contrast, ether’s open interest grew by 100% to $10 billion during the same period, according to data provided by the protocol.

Bitcoin’s robust demand coincides with its remarkable surge in speculative value, currently trading at $68,384 according to The Block’s price data, marking a 4% increase over the past 24 hours.

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Coinbase has announced securing a restricted dealer license in Canada, marking a significant milestone for the U.S.-based exchange. This makes Coinbase the first and largest international cryptocurrency exchange to be registered in the country.

Having officially launched in Canada nearly eight months ago, Coinbase’s latest announcement of securing registration as a restricted dealer underscores its commitment to expanding its presence in global markets outside the United States. This move aligns with Coinbase’s strategy amidst challenges it has faced in its home market, including regulatory scrutiny from the Securities and Exchange Commission.

Expressing enthusiasm about obtaining the restricted dealer license, Coinbase highlighted its collaboration with Canadian banks, investment advisors, and pension funds. The company emphasized its dedication to facilitating the successful navigation of the evolving digital asset landscape for these entities.

Coinbase’s efforts in Canada have been bolstered by the appointment of a country director approximately a year ago. Additionally, the exchange cited a study it contributed to, revealing that nearly one-third of Canadians would be more inclined to purchase cryptocurrency if there were more regulatory measures in place.

As of late last year, WonderFi held control over almost half of all regulated exchanges operating in Canada, reflecting the growing interest and participation in the cryptocurrency market within the country.

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