What is happening in the crypto market today?

The crypto market witnessed a modest rebound today, with Bitcoin managing to bounce back above the $25k mark, marking a 1.3% gain for the day. Ethereum also experienced a 1.4% increase, while Binance’s BNB remained stagnant. However, the overall market sentiment remains bearish, as XRP faced a further decline of 3.5% and Cardano dropped by 1.2%.

Crypto Roundup – Hot Topics

French authorities have launched an investigation into Binance, according to a report by Crypto Slate citing a local news report. The probe primarily focuses on whether Binance operated in France without the necessary license and solicited French users. Additionally, authorities are examining allegations of aggravated money laundering through investment operations. Despite becoming a regulated exchange in France last year, Binance is currently cooperating with regulators to meet compliance requirements. Binance’s regulatory challenges continue in other territories, Reuters reported this morning the exchange’s exit from the Dutch market due to regulatory roadblocks.

Another prominent crypto player, Tether, responded to reports suggesting that Chinese securities once backed its stablecoin (USDT). Cointelegraph reports that the inclusion of securities from Chinese state-owned firms, as outlined in documents released by New York’s Attorney General (NYAG), sparked concerns. Tether swiftly addressed the issue, stating their disapproval of such behaviour and emphasising their commitment to customers. They clarified that the documents in question are outdated, spanning over two years, and do not accurately reflect the company’s current state. Tether highlighted their exposure to Chinese commercial papers was liquid and involved stable and highly rated issuers. Furthermore, they pointed out that they eliminated their holdings in commercial paper last year, ensuring no losses were incurred.

Staying with Tether, its Chief Technology Officer (CTO), Paolo Ardoino, referred to the recent depeg incident of Tether (USDT) as a “good stress test” for the company. Despite acknowledging the attack, Ardoino expressed confidence that it is now waning. Tether remains committed to safeguarding its community and assuring its strength and liquidity. CoinDesk’s legal victory in accessing reports on enforcement actions by the NYAG against Tether coincided with this incident. Tether dropped its opposition to the information request, underscoring the importance of transparency, particularly in the current market climate. Tether disclosed that its exposure to commercial papers and secured loans was significantly reduced in 2022, and its latest attestation statement reveals a surplus of $2.4 billion.

And finally, In a notable development, BlackRock’s iShares unit, a renowned fund management firm, filed for the creation of a spot bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). The proposed ETF, named iShares Bitcoin Trust, will primarily consist of bitcoin held by a custodian on behalf of the Trust. Coinbase, a prominent cryptocurrency exchange, has been chosen as the custodian. While other companies attempts at establishing spot bitcoin ETFs have been previously rejected by the SEC, BlackRock’s entry into the race signals renewed efforts to secure approval for a spot bitcoin ETF.