Morning Minute is a daily newsletter authored by Tyler Warner. The insights and views presented are his own and do not necessarily represent those of Decrypt. Also, check out our daily news show 'FOMO HOUR' for all the latest stories and market updates.
Good morning!
Here's the latest news:
- Major cryptocurrencies are on the rise, with HYPE leading the charge; BTC is priced at $78,000
- The SEC has introduced an innovation exemption for tokenized stocks, causing altcoins to surge by 10-20%
- The CFTC has issued a no-action letter, relaxing rules for brokers
- Hyperliquid has hit over $90, achieving a new all-time high while launching protocol lending and borrowing
- Onchain leaders have reported gains of 10-30%, following the trend in altcoins
🏛️ The SEC Takes Action Where the Clarity Act Fell Short
Just two days after the Senate narrowly rejected the Clarity Act, the SEC approved an Innovation Exemption that enables eligible platforms to trade tokenized U.S. stocks on public blockchains without the need for national exchange registration. SEC Chair Gary Gensler noted that, given Congress's inaction, the Commission is stepping in with a significant move under its authority.
Tokenized Securities Venues can facilitate tokenized stocks using automated market makers and liquidity pools on open blockchains. Companies providing liquidity will be exempt from dealer registration, and there is no waiting list; firms that meet criteria simply inform the SEC and commence operations. This exemption is effective immediately and lasts for five years.
However, there are two important restrictions to consider. The exemption applies only to genuine tokenized stocks that offer full rights, including dividends and voting, thus excluding synthetic versions that have driven offshore trading activity. Additionally, an unrelated party can tokenize a company’s stock, but the actual issuer has 30 days to object and prevent the tokenization and trading of their shares. This gives companies some control over the process.
This provision directly relates to the recent comments made by AMC's Adam Aron, who criticized Robinhood’s stock tokens and threatened SEC involvement. He now has the mechanism he sought. Both Robinhood and Coinbase have previously indicated that redemption and voting rights are on the way, aligning with the requirements of this new exemption.
Coinciding with this announcement, S&P Global announced its acquisition of OpenZeppelin. S&P Global Ratings described this move as a way to provide reliable data, benchmarks, and transparent risk assessment for markets transitioning to onchain operations. Essentially, if tokenized assets and stablecoins are to become viable institutional instruments, a reliable assessment of the contracts holding these assets is crucial, not just the integrity of the issuers.
The bottom line is clear: traditional finance is moving to the blockchain. Stocks, commodities, and various asset types will be tokenized and traded on global, permissionless blockchains around the clock. It’s only a matter of time, and the SEC's decision marks a significant advancement in making this vision a reality sooner rather than later.
🌎 Macro Crypto and Markets
- Major cryptocurrencies are performing well, with HYPE leading; BTC +2.2% at $78k; ETH +3% at $2,500; SOL +6% at $106; HYPE +13% at $90.53; ZEC +8% at $1,460
- Top altcoin gainers include UNI (+26%), ARB (+25%) and NEAR (+22%)
- Oil prices increased by 1% to $101; Gold rose by 0.6% to $4,420
- Stock futures are relatively stable following yesterday's gains; DOW -0.05%, Nasdaq +0.3%
- The SEC hosted a roundtable on 24-hour trading just after approving tokenized securities, with Gensler stating that tokenization could enhance real-time inventory management
- The CFTC has issued a no-action letter allowing passive software providers to connect users to regulated derivatives without needing to register as introducing brokers, extending earlier relief granted to Phantom
- S&P Global has agreed to acquire OpenZeppelin, a firm specializing in smart contract security that supports over $37 trillion in value transferred, marking its second digital-asset deal in just four days
- NYSE parent ICE is exploring Avalanche as a potential settlement layer for a new alternative trading system, with ICE's Michael Blaugrund stating it meets many criteria and that teams are actively collaborating
- Coinbase has partnered with Stablecore to integrate custody, trading, staking, and stablecoin payments into community bank and credit union applications, expanding its reach to over 3,000 U.S. institutions
- Vitalik Buterin dismissed concerns that AI could compromise cybersecurity, arguing that formal verification advantages defenders and noting that about 90% of his net worth is in crypto as a bet on that security
Corporate Treasuries & ETFs
- Bitcoin ETFs experienced $159M in net inflows on Thursday, while ETH ETFs saw $39M in outflows
Meme Coin Tracker
- Meme coin leaders were mostly positive; DOGE +6%, SHIB +7%, PEPE +7%, PENGU +6%, TRUMP +5%, SPX +4%
- Robinhood chain tokens surged after the SEC exemption; Pons +10% to $480M; AI +30% at $360M; Cashcat +3% at $204M; Boner +35%, Orbio +80%, Index +30%, and Moo +35% led the gains
- Solana's top movers included Paid +30%, Raycat (+40%), MCAT +80%, and Tilcayo (+45x); Stonk ecosystem tokens also rallied with Stonk +25% to $220M, Purr +47%, and Nearkat +120%
💰 Token, Airdrop & Protocol Tracker
- Hyperliquid launched its native lending and borrowing feature, allowing users to collateralize HYPE and BTC for stablecoin loans
- Hyperliquid led the onchain protocols in revenue with $1.94M, followed closely by Pump.fun with $1.89M; Pons dropped to 15th with $460k
- Stonkfun achieved its highest revenue day since Sunday with $900k
🚚 NFT Market Update
- NFT leaders remained mostly stable; Punks +1% at 29.7 ETH, BAYC steady at 6.85 ETH, Pudgy -1% at 3.38 ETH
- Rare Friends (+40%) and Stonkbrokers (+11%) were the top gainers
- Zksnarks raised $37M in a public auction that closed at 1.5 ZEC, with trading starting today
- FWA launched its version 2 on Wednesday, resulting in a 50% increase in the FWA token to $17M