Hello Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

Here's a snapshot of the stories we're covering today:

1. Trump's Stance Against CBDCs: Donald Trump vows to fight against CBDCs in the U.S., now making it a focal point in his 2024 presidential campaign.

2. Coinbase vs. SEC Legal Battle: Coinbase challenges the SEC over digital tokens and their regulation. The outcome of this case could reshape the crypto regulatory landscape.

3. Ethereum's Dencun Upgrade: Ethereum's latest upgrade, Dencun, goes live with a focus on reducing transaction costs and introducing new features.

4. Terraform Labs' Legal Drama: As Terraform Labs co-founder Do Kwon seeks to delay his trial, the SEC's case against the company for alleged securities fraud intensifies.

5. 💡 Feature of the Day - Gemini's Regulatory Approval in France: Gemini gains approval to operate in France, marking a significant step in its European expansion and highlighting the importance of regulatory compliance in the crypto space.

6. 🔍 Industry Insights - Crypto Investment Trends: A shift in institutional investment from traditional crypto products to U.S. spot bitcoin ETFs is underway, signaling a maturing market and growing investor preference for direct bitcoin exposure.
   
   All this and more in today’s headlines!

📰 News Highlights:

Donald Trump Vows To Battle Against CBDCs! [Source][Source]

In a surprising twist, former President Donald Trump takes the center spotlight yesterday, for vowing to "never allow" the creation of a central bank digital currency (CBDC) in the United States. 

Trump's bold declaration, made during a campaign speech in Portsmouth, echoes his commitment to protecting Americans from perceived government tyranny. As the 2024 presidential election looms, Trump's anti-CBDC stance becomes a pivotal point, aligning with fellow candidate Ron DeSantis, who made a similar pledge in 2023.

Former SEC Chief, of Internet Enforcement John Reed Stark, took to twitter to suggest that crypto topics could be one of the core topics that shape the 2024 election landscape. While John’s prediction that every presidential campaign will appoint a “Crypto Czar” this year is unclear. What is clear is that the adoption of digital currencies in the United States will be heavily impacted by the outcome of this years election.

Coinbase vs. SEC: An Intense 5-Hour Legal Showdown! ⚖️ [Source][Source]

Representatives from Coinbase engaged in a five-hour face-off with the Securities and Exchange Commission (SEC). In an extremely unusual move, the Judge overseeing the case skipped over any prepared arguments from either side and instead went straight to questioning the lawyers.

Lawyers for both sides spent time dissecting the Howey test's application to digital token issuances and the evolving dynamics between stocks and crypto tokens.

Ultimately neither side delivered any hard hitting “knockout blows” with Coinbase's side in the debate focused on challenging the SEC's narrative, emphasizing distinctions between crypto tokens and traditional stocks. The outcome although undecided as of yet could significantly influence the regulatory landscape for crypto exchanges, setting precedents for the industry's future. 

The final ruling is expected to be delivered sometime over the next three months. We will continue to update you on this story as we get closer to a decision.

Ethereum's Dencun Upgrade!🔄 [Source][Source][Source]

Ethereum's latest upgrade, Dencun, goes live on the Goerli testnet. The journey, marked by a four-hour delay due to a bug in Prysm, highlights the challenges of implementing transformative changes in decentralized networks. 

Ethereum developer Parithosh Jayanthi's insights into the debugging process showcase the resilience of the Ethereum team, turning obstacles into opportunities.

As the Dencun upgrade promises to lower transaction costs on layer 2s and introduces new features, the crypto community witnesses the intricate dance between innovation and technical hurdles.

Terraform Labs' Trial Drama - Can Do Kwon Stall Out The SEC? ⚖️ [Source][Source]

The courtroom saga surrounding Terraform Labs vs SEC takes an unexpected turn as the much anticipated trial faces a possible last minute rescheduling. The US courts received a unique request from co-founder Do Kwon. 

Currently in Montenegro and awaiting extradition to the United States, Kwon requested to participate in his own defense in person in Montenegro. The only problem? The trial, originally set for January 29, now awaits a March start. This would mean delaying Kwon’s extradition and postponing his US trial.

The SEC's case against Terraform Labs involves allegations of a "multi-billion dollar crypto asset securities fraud," so it’s unclear if the US legal system will grant Kwon’s request. What is certain is that Do Kwon is in a lot of trouble with international law enforcement.

💡 Feature of the Day:

Gemini Receives Regulatory Green Light in France! 🇫🇷 [Source][Source]

In a significant move, Gemini, the cryptocurrency exchange, receives the coveted approval to operate in France as a digital asset services provider (DASP). 

The approval from Autorité des marchés financiers (AMF) positions Gemini as the 105th company to receive registration. This expansion into France marks a strategic move for Gemini, enhancing its footprint across over a dozen European jurisdictions.

As the crypto landscape evolves, Gemini's entry into the French market symbolizes the slow and steady progression happening in regards to regulatory compliance. Institutional and retail traders in France are excited and anticipate gaining access to a diverse range of cryptocurrencies, further enriching the crypto ecosystem.

Gemini's Head of the European Union and Ireland, Gillian Lynch, expresses excitement about providing compliant and secure access to the future of finance in France, adding another chapter to the global crypto narrative.

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🔍 Industry Insights:

Shifting Trends in Crypto Investment Products [Source]

The crypto market is undergoing a notable transformation as traditional investment products witness net outflows of $424 million this week.

Institutions are strategically reallocating funds from products like ProShares Bitcoin Strategy ETF (BITO) and Grayscale’s GBTC towards cost-efficient U.S. spot bitcoin ETFs. The recent approval of 11 spot bitcoin ETFs by the SEC, including offerings from major players like BlackRock's iShares Bitcoin Trust, has spurred substantial inflows, totaling $2 billion. This surge in demand is reflected in the record-breaking first-day trading volume of $4.6 billion, showcasing a growing preference for these newly introduced investment vehicles. We’re seeing:

• Investment Shift: Traditional products like BITO and GBTC saw $424 million in outflows this week as institutions pivot to cost-efficient U.S. spot bitcoin ETFs.

• Spot Bitcoin ETF Surge: Approval of 11 spot bitcoin ETFs, including BlackRock's iShares, drove inflows of $2 billion, with a record-breaking first-day trading volume of $4.6 billion.

• Maturing Market Dynamics: The shift signals a maturing crypto market, emphasizing investor preference for direct exposure through spot bitcoin ETFs. Institutional funds flowing into these ETFs are set to intensify competition among issuers, shaping the future of crypto investments.

The industry is at a pivotal moment, with the recent ETF approval, the growing acceptance and integration of crypto assets within traditional investment portfolios is likely going to increase over time. Resulting in a steady demand for BTC from large intuitional investors.

😂 Crypto Meme of the Day: 

And that’s it for this today.

With all of the recent hacks taking place, remember to protect your crypto assets with today’s sponsor Trezor hardware wallets.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com