🦅 Ether ETF Approved – US Regulations Shifting Positive!

It’s difficult to overstate the magnitude of this week’s developments for the United States. 👀

From the Ether ETF to SAB121’s impending overturning, a new day is dawning for digital assets in the U.S. 🌅

🎯🔥 Rapid Fire Takeaways:

💥 Spot Ether ETFs receive official approval from the SEC

🔨 Senate votes to overturn SEC crypto custody rule

👋 FDIC Chair Martin Gruenberg will resign following a scathing investigation that detailed a toxic workplace

🏛️ U.S. House Approves Crypto FIT21 Bill With Wave of Democratic Support

🗣️ Fed Governor Bowman warns of risks of resisting innovation, including DL

⛓️ DTCC, Chainlink Complete Pilot to Accelerate Fund Tokenization with JPMorgan, Templeton, BNY Mellon Participating

⚖️ Real-world asset tokens can stabilize DeFi — Market observer

🤝 Hong Kong expands integration with China’s eCNY CBDC

What does this all mean for the tokenization landscape? ♟️

Given the circumstances, we have some ideas… and they’re all quite rosy. 🌹

👀 Did Ya Miss It?

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Mark your calendars – and listen to last week’s installment! 😉

RWA World was also featured in a recent article from VanEck’s Head of Web3, Matthew Bartlett, who had this to say about our database:

“I believe they are building the premier database for tracking and understanding the world of RWA and the platforms that are playing a defining role in it.”

That’s high praise coming from a financial giant like VanEck. Thanks, Matt! 💗

🎷 U.S. Changes Tune Almost Overnight

A few weeks ago, we discussed SEC Chair Gary Gensler’s ongoing war against digital assets in the U.S. and its chilling effect on the industry. 🥶

Less than a month later, we’re hearing a different tune. Four big moves have sent the world’s largest economy hurdling in a pro-digital asset direction: 

1. SAB121 Passes the Senate 

2. FDIC Chair Resigns

3. FIT21 Passes the House 

4. Ether ETF Approved

Let’s zoom in! 🔍👇

The Senate recently joined the House in voting to overturn SAB121, potentially opening the door for U.S. banks to custody digital assets for their clients. Democrats are jumping from the anti-crypto ship en masse, which may suggest Biden will rethink his stance of vetoing the bill. 🤞

Banks haven’t shied away from digital assets solely due to SAB121. FDIC Chair Martin Gruenberg has been a staunch supporter of Operation Chokepoint 2.0, a move by regulators to stifle existing digital asset accounts and prevent the opening of new ones. 🔒

Now, dozens of FDIC employees are whistleblowing a culture of pervasive sexual harassment, bullying, and discrimination at the FDIC, and Gruenberg is stepping down in disgrace. Regardless of the yet-to-be-named new Chair’s stance on digital assets, we sincerely hope they at least have basic human decency toward their subordinates – shame on you, Gruenberg. 😠

The Financial Innovation and Technology for the 21st Century Act, or FIT21, has passed the House with surprising bipartisan support. As crypto becomes a contentious topic in the upcoming U.S. election, Democrats have calculated it’s not worth sacrificing votes in crucial states. 🧮

📜🖊️ Some FIT21 points: 

• Companies granted the right to self-certify as crypto securities 

• Crypto securities are exempt from Regulation A and D restrictions 

• Non-accredited investors are allowed to invest up to 10% of their net worth or annual income into crypto securities 

• Gives SEC 60 days to contest self-certification 

Not everyone is excited about FIT21, though. Some argue that it gives the CFTC too much authority and that spot commodities have never been regulated like this before. Could digital asset enthusiasts be counting chickens before they hatch? 😬🐔

But the biggest news of the day? The Ether ETF was officially approved by the SEC. Gary’s War is quickly coming to a close, and a new day is dawning for digital assets in the United States. While we’re not out of the woods yet, the sentiment is clearly shifting in favor of digital assets and thoughtful regulation rather than enforcement action. 🥳

Oh, and the cherries on top: Federal Reserve Governors are coming out in favor of digital asset innovation, with Governor Michelle Bowman saying that resisting new technology is futile. That partly explains why Chicago-based CME Group is planning spot Bitcoin trading. 🍒

🌐 The World Sings Along

Other jurisdictions have been working diligently to support tokenization. The World Bank is partnering with the Swiss National Bank and the SIX Digital Exchange to issue a 200 million CHF bond. This move marks over 1 billion CHF in issuances for SIX, a powerful milestone for the world’s first regulated digital currency exchange. ⛰️

Japan continues to push forward with its tentative plan to become a Web3 innovation hub, with Panasonic exploring using the tokenized Yen deposit tool DCJPY to support tourism in the country. Major Japanese banks are also getting in on the action, with MUFG subsidiary Progmat partnering with KlimaDAO to launch a carbon credit market with big aspirations for the international market! 🗻

Across the sea, China is making serious strides. Hong Kong launched its first spot crypto ETFs while expanding its eCNY CBDC integrations. The Sino-CBDCs show no sign of slowing down either – cross-border payments with Thailand are in the works, and Arta TechFin’s eHKD is trialing interest-free currency on CBDC rails. 🏙️

🤝 Partnerships and Expansions

Arta TechFin has been busy with more than the eHKD – it’s partnered with Chainklink for real-world asset tokenization. That was a good move, too, given Chainlink’s momentum. Chainlink just completed a pilot with the DTCC for fund tokenization with J.P. Morgan and friends. 

Everyone is dancing to the tokenization tune! The International Swaps and Derivatives Association (ISDA) is exploring tokenized collateral, while PwC has chosen 11 startups focused on digital assets and tokenization for its accelerator program. Meanwhile, Glasstower is launching a tokenized money market fund to accelerate its business growth. 🚀

Perfect timing. New studies show that real-world assets can stabilize DeFi markets, meaning new levels of predictability and strength for the young technology. And while tokenized treasuries are rapidly becoming a burgeoning asset class in their own right, wider adoption will naturally take time. 

😌 Wrapping Up An AMAZING Week

So far, every week has been great for tokenization – but this one in particular has proven to be an absolute blockbuster in the U.S.A. 🦅

As the foundations for broader tokenization regulation and digital asset adoption continue to solidify, RWA World continues to deliver you the best insights into the news, trends, and players, making it happen. 📸

Come say “Hey!” if you’re in Austin, Texas, for Consensus next week. We’d love to nerd out with you! 🤓