What happened in crypto this week

It’s been busy in the crypto market this week: Singapore blocks Polymarket, Tether is to relocate to El Salvador, a judge orders the SEC to explain lack of crypto regulations, BitMEX is hit with an additional penalty, Oklahoma is to introduce a Bitcoin strategic reserve, Nasdaq files for a Canary Litecoin ETF, and Trump will prioitize crypto with an executive order.

Singapore blocks Polymarket

Singapore’s gambling regulator blocked prediction marketplace Polymarket, defining it as an “illegal gambling site.”

Singapore’s Gaming Regulatory Authority (GRA) issued a warning to users that Singapore Pools is the only licensed gambling operator in the country and that Polymarket is considered illegal, adding:

“Under Section 20 of the Gambling Control Act 2022, a person convicted of gambling with unlicensed gambling service providers is liable for a fine of up to $10,000, or a jail term of up to six months, or both.”

This was the latest action taken against Polymarket. In August, Polymarket was scrutinised as US lawmakers intensified efforts to ban gambling in American elections.

In November, Polymarket faced regulatory action in France after an anonymous trader netted nearly $50 million wagering on Donald Trump’s victory in the US presidential election. French authorities, particularly the Autorité Nationale des Jeux (ANJ), blocked the platform after breaching local gambling laws.

Also in November, the FBI seized Polymarket’s CEO Shane Coplan’s phone and electronics after raiding his home.

Tether is to relocate to El Salvador

Tether is set to establish its headquarters in El Salvador.

The USDT issuer published a blog post earlier this week highlighting its intentions.

The relocation of Tether follows the acquisition of a Digital Asset Service Provider (DASP) registration in the crypto-friendly country.

In a post on X, Paolo Ardoino, CEO of Tether, said the company was “very excited,” adding that “El Salvador is the beacon of freedom and @nayibbukele is an inspiring leader driving the country with love, passion and intelligence.”

Tether ♥️ 🇸🇻

Very excited for Tether group relocating in El Salvador.
El Salvador is the beacon of freedom and @nayibbukele is an inspiring leader driving the country with love, passion and intelligence.

Seguimos 🦾 https://t.co/42Y83ryEaE

— Paolo Ardoino 🤖🍐 (@paoloardoino) January 13, 2025

Judge orders the SEC to explain lack of crypto regulations

The US Court of Appeals for the Third Circuit has ordered that the US Securities and Exchange Commission (SEC) explain itself for refusing to set clear crypto regulations when Coinbase requested them.

According to one of the judges, “Rather than force the agency to make a rule, we order it to explain its decision not to.” Another cautioned the SEC against rendering a poor explanation like it has been doing.

The SEC’s case against Coinbase began in March 2023 when it issued the exchange with a Wells Notice for violating securities regulation through its staking services and asset listings.

Coinbase responded with confidence in the legality of its operations and attempted to engage with the regulator to clarify the basis of its Wells Notice and set clear regulations.

The SEC, however, maintained that current securities regulations were sufficient to regulate crypto and filed a lawsuit in June 2023.

In recent developments, Coinbase was granted an interlocutory appeal, temporarily pausing its ongoing court case against the SEC. It means Coinbase can proceed to the Second Circuit Court of Appeals to receive guidance and to determine if the SEC’s complaints against it are valid.

BitMEX is hit with an additional penalty

BitMEX’s operator, HDR Global Trading Limited, has been ordered to pay a $100 million fine following BitMEX’s guilty plea in 2022 for violating the US Bank Secrecy Act.

Judge John Koeltl of the US District Court for the Southern District of New York also handed down a sentence on January 15, 2025, that included two years of unsupervised probation for the exchange.

The charges stem from BitMEX’s operation without a meaningful Anti-Money Laundering (AML) program.

In 2020, the CFTC charged BitMEX owners with illegally operating a cryptocurrency derivatives trading platform and AML violations. BitMEX introduced AML checks on the platform and pleaded guilty to the charges in 2022.

However, in early 2023, BitMEX was hit with a new lawsuit filed by BMA LLC, claiming that BitMEX had been illegally offering services to users in the US through ABS Global. This is controlled and operated by HDR, despite being unregistered as a money-transmitting company.

In a statement to its users after the court issued the sentence, BitMEX expressed disappointment over the additional financial penalty.

Oklahoma is to introduce a Bitcoin strategic reserve

Oklahoma has become the latest US state to propose a Bitcoin strategic reserve. Earlier this week, Representative Cody Maynard proposed the introduction of the Strategic Bitcoin Reserve Act.

Speaking about this, Maynard said: “Bitcoin represents freedom from bureaucrats printing away our purchasing power. As a decentralized form of money, Bitcoin cannot be manipulated or created by government entities. It is the ultimate store of value for those who believe in financial freedom and sound money principles.”

This would make Oklahoma the sixth US state with a Bitcoin reserve. The announcement follows similar plans in New Hampshire, North Dakota, Ohio, Pennsylvania, and Texas.

Maynard added: “This bill is about protecting the hard-earned money of Oklahoma’s citizens. By diversifying our state’s savings and pension funds into digital assets, we are not only securing a stronger financial future for our state but also demonstrating Oklahoma’s leadership in adopting innovative fiscal policies.”

Nasdaq files for a Canary Litecoin ETF

Nasdaq has filed a 19b-4 form for the proposed ‘Canary Litecoin ETF,’ with the US Securities and Exchange Commission (SEC). By doing so, it signals the start of the review process.

The 19b-4 form outlines that US Bancorp Fund Services, LLC will act as the administrator for the ETF, with US Bank N.A. tasked with managing the fund’s cash assets. The custody of the actual Litecoin for the ETF will be handled by Coinbase Custody Trust Company LLC.

This is the latest filing and is part of a broader trend among companies pushing for various spot crypto ETFs. In January 2024, the SEC approved the first spot Bitcoin ETFs, paving the way for other crypto-related products.

With a new incoming US administration, many in the crypto industry believe Trump will be more favorable toward crypto regulations.

Bloomberg Senior ETF analyst Eric Balchunas expressed optimism about the Litecoin ETF’s prospects. He stated on X that feedback from the SEC bodes well for approval and that “Litecoin is most likely to be the next coin approved.”

We had heard chatter that the Litecoin S-1 had gotten comments back from SEC. This looks to confirm that which bodes well for our prediction that Litecoin is most likely to be the next coin approved. All that said, new SEC chair has yet to start and that’s a huge variable. https://t.co/cKFswPwcr0

— Eric Balchunas (@EricBalchunas) January 15, 2025

Trump will prioritize crypto with an executive order

US President-elect Donald Trump is reportedly planning to sign an executive order designed to prioritize crypto as his inauguration day approaches.

The order enables industry insiders to work with agency regulators, according to people familiar with the matter. It could also create a crypto advisory council.

An earlier report from The Washington Post suggests Trump is expected to sign executive orders – on the first day of his presidency – focusing on crypto de-banking and the repeal of crypto accounting policies requiring banks holding digital assets to count them as liabilities.

Trump, who will be inaugurated on January 20, has enjoyed strong support from the crypto industry. During his campaign trail, he promised to make the US the “crypto capital” of the world, and was the recipient of a $2 million Bitcoin donation from Cameron and Tyler Winklevoss and a $1 million Ethereum donation from Jesse Powell, co-founder of Kraken.

Since winning the US election in November, the crypto market has rallied with Bitcoin hitting a new all-time high of over $108,000.