Hey there, crypto fam!
And just like that, we are halfway through February. If you blinked, you probably missed something big because a lot has happened this week. From Coinbase battling yet another lawsuit to Binance and the SEC calling a temporary truce and even Trump making headlines again, there’s a lot to catch up on. But don’t worry—we’ve got all the details, hot takes, and market trends wrapped up just for you.
So, get comfy and let’s dive into this week’s stories.
Biggest Story
Coinbase Faces Class Action Over Alleged Illegal Securities Sales
Coinbase just can’t seem to escape legal trouble!
U.S. District Court Judge Paul Engelmayer has ruled that the exchange must face a class action lawsuit over allegations that it sells unregistered securities. And no, this case differs from the one brought by the U.S. Securities and Exchange Commission (SEC), as it was initiated by some of its customers in New York.
The case was initially dismissed in 2023 by the same judge, but after the plaintiffs secured a victory in appealing this dismal in April 2024, it was revived, precisely specific claims within it. For instance, in his latest ruling, Judge Engelmayer pointed to the claim that customers transact exclusively with Coinbase, which could classify the exchange as a seller under securities law.
The crypto exchange maintains that it does not sell securities and intends to contest the case in court. Meanwhile, it is also dealing with similar lawsuits from customers in California and Florida.
Concerning its battle with the SEC, Coinbase recently won a small victory—the right to appeal parts of the case before it goes to trial.
Other Stories Making Waves
Trump’s Crypto Nominates Brian Quintenz to Lead CFTC: Trump is reportedly nominating Brian Quintenz—a big name in crypto policy—as the next chair of the U.S. Commodity Futures Trading Commission (CFTC). If confirmed, he could challenge the SEC’s stance on digital assets, potentially making the CFTC the go-to crypto regulator.
U.S.SEC & Binance Hit Pause on Legal Battle: In a surprising twist, the SEC and Binance have agreed to a 60-day pause in their legal fight, hinting at a possible resolution. With the SEC’s new Crypto Task Force in play, could this signal a friendlier approach to crypto regulation?
U.S. SEC Might Finally Approve Ethereum ETF Staking: Cboe BZX just filed for SEC approval to allow staking in the 21Shares Ethereum ETF, letting investors earn passive income on their ETH. With SEC leadership changes and growing optimism, this could be a game-changer for Ethereum ETFs.
Fed Governor Pushes for Stablecoin Rules: Fed Governor Christopher Waller is all in on clear regulations for stablecoins, saying they could boost the U.S. dollar’s global dominance.
zkLend Loses $9M in Hack, Offers Hacker a 10% Bounty: Starknet-based zkLend just got hit with a $9M exploit and is now offering the hacker 10% to return the funds—talk about negotiating with cybercriminals! Security teams are on the hunt, and if the hacker doesn’t comply by Feb 14, things could get messy.
Central Banks Are Pumping the Brakes on CBDCs Plans: Nearly a third of central banks have hit pause on their digital currency plans, thanks to messy regulations and economic woes. The U.S. is especially cold on the idea, with Trump outright banning the digital dollar.
Deepfake or Real? CAR President’s Memecoin Sparks Major Drama: The Central African Republic’s president announced a national memecoin—but AI tools flagged his video as potentially fake! With shady website registrations and a midnight launch, many suspect a scam.
South Korean Politician Cleared in Crypto Scandal—For Now: Kim Nam-kuk, a former lawmaker accused of hiding $6.8M in crypto, just got acquitted because disclosure rules didn’t apply at the time. While he claims innocence, critics argue he shaped laws that benefited him.
Man Still Hunting for $620M Bitcoin in a Landfill—Now Wants to Buy It: James Howells, who accidentally trashed a hard drive holding 8,000 BTC, is now considering buying the entire landfill to recover his fortune. The council won’t let him dig, so he’s suing—again.
Indiana Man Jailed for $37M Crypto Theft: Imagine pulling off a $37 million crypto heist and thinking you’d get away with it—well, Evan Light didn’t. The 22-year-old hacker got slapped with a 20-year federal prison sentence for stealing from nearly 600 victims through a cyber-intrusion scheme
Around the World: Bold Moves and Crypto Regulations
U.S., UK, and Australia Sanction Russian Web Hosting Provider for Helping Hackers: The U.S., UK, and Australia just slapped sanctions on Russian hosting provider Zservers for aiding the notorious LockBit ransomware gang. This move cuts them off from the global financial system, tightening the noose on cybercriminal networks.
Hong Kong Accepts Bitcoin & Ethereum for Residency Applications: Authorities in Hong Kong now accept Bitcoin and Ethereum as proof of assets for investment immigration, provided you have at least HK$30 million ($3.8M) in holdings.
South Korea Pushes for Crypto ETFs to Stay Competitive: South Korea’s top exchange official says the country needs crypto ETFs ASAP to keep up with global markets. With the U.S. already trading Bitcoin ETFs, he warns that delaying could hurt South Korea’s financial industry.
Japan Might Classify Crypto as Securities: Japan is rethinking its entire crypto game, with regulators considering classifying cryptocurrencies as securities. If this happens, retail investors might face stricter rules, but it could also pave the way for Bitcoin ETFs.
SEC & CFTC Team Up to Regulate Crypto: Talks are underway that SEC and CFTC might actually start working together to revive a joint advisory committee, which could bring some much-needed clarity to U.S. crypto laws.
South Korea Eases Crypto Rules—Institutions Can Now Sell Digital Assets: South Korea is loosening its grip on crypto, finally allowing charities, universities, and institutions to sell their digital asset donations.
Texas Wants a State-Owned Bitcoin Reserve: Texas lawmakers are doubling down on Bitcoin, reintroducing a bill to create a state-run Bitcoin reserve. If passed, Texas would become the first U.S. state to own Bitcoin as a strategic asset.
Market Trends: Winners and Losers
Top 5 Gainers 📈
According to data from CoinGecko, these are the five biggest gainers of the week:
- Unchain X surged 419.5%, from $0.0291 to $0.1509.
- Safemoon jumped 400.9%, from $0.00001495 to $0.00007488.
- Ket increased by 132.9%, from $0.1198 to $0.2790.
- Murasaki saw a 27.3% increase, from $1.10 to $1.40.
- AI Rig Complex gained 163.5%, from $0.1585 to $0.4179.
Top 5 Losers 📉
According to data from CoinGecko, the five biggest losers of the week are:
- Vine dropped 46.3%, from $0.1273 to $0.0683.
- Akuma Inu declined by 28.4%, from $0.00008964 to $0.00006419.
- Unicorn Fart Dust fell 48.2%, from $0.0652 to $0.0338.
- LOFI decreased by 19.1%, from $0.0566 to $0.0458.
- Flayer lost 32.6%, from $0.0901 to $0.0607.
Project Spotlight
Avalon Labs’ Bitcoin-Backed Debt ETF
Avalon Labs is pioneering the first Bitcoin-backed debt public fund, aiming to integrate Bitcoin into traditional capital markets. The firm announced during the week that it is in the process of submitting an application to the SEC for a Bitcoin-backed Debt ETF.
Why It Matters
This new type of ETF, which would enable investors to gain exposure to Bitcoin’s performance through debt securities, broadens the options available for accessing the financial asset.
This initiative, as a whole, enhances Bitcoin’s financial utility, making it more accessible to mainstream investors. It furtthers previous moves to close the gap between DeFi and traditional finance.
Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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