Eagle Crest Asset Management

August 1, 2024

SEC Announces Compensation Plan For Terraform Investors And Creditors

According to BlockBeats, the collapse of Terra's LUNA and UST in mid-2022 resulted in a $40 billion loss for global investors. Terraform Labs and its founder, Do Kwon, reached a civil settlement with the U.S. Securities and Exchange Commission (SEC) in June, agreeing to pay fines of $4.47 billion and $200 million, respectively. However, the timeline for compensating affected investors remains unclear.On the 26th, the SEC released a notice addressing compensation for investors and creditors affected by Terraform Labs. The SEC clarified that compensation would be handled through the ongoing bankruptcy case of Terraform Labs. The company filed for Chapter 11 bankruptcy protection in Delaware in January, with estimated assets and liabilities between $100 million and $500 million, and 100 to 199 creditors.The SEC explained that Terraform Labs would seek approval for a Chapter 11 liquidation plan, which would establish a liquidation trust or property representative to distribute the remaining assets to creditors and investors harmed by Terraform's crypto asset securities, such as LUNA. The court's final judgment ordered Terraform to pay $4.47 billion in illicit gains, pre-judgment interest, and civil penalties. Do Kwon is required to transfer at least $204 million to Terraform's bankruptcy estate, including $7 million in cash and all crypto assets of the Luna Foundation Guard.The SEC emphasized that it would not receive any payments until investors and creditors are fully compensated. The bankruptcy plan, expected to be finalized in the fall of 2024, will outline the rights of creditors and affected investors. They will have the opportunity to review and vote on the disclosure statement and liquidation plan. The bankruptcy court has yet to determine the procedures and deadlines for submitting fraud-related loss claims against Terraform, but information will be posted on the following website once the plan is approved: https://dm.epiq11.com/case/terraform/info.As for LUNA's market performance, the token has seen a significant decline. After reaching $0.83 at the end of May, LUNA's price has dropped to $0.385, a nearly 70% decrease from its yearly high of $1.26.

July 23, 2024

Fed May Start Rate Cuts In September, Limited Dollar Depreciation Expected

According to Odaily, analysts at Société Générale suggest that the Federal Reserve might begin cutting interest rates in September, but any depreciation of the dollar is expected to be limited. The bank's forex strategists noted that the dollar's rebound in 2021-2022 has provided ample room for downward correction. However, unless the U.S. economy slows down significantly more than anticipated, U.S. interest rates are 'very unlikely' to approach pre-pandemic levels of 2020.They highlighted that the most significant fluctuations are expected in the dollar-yen exchange rate, which could drop from the current 156.197 to 140 by early 2025. The yen has been the currency most adversely affected by rising U.S. interest rates and yields. Additionally, they mentioned that at some point in 2024 or 2025, the euro-dollar exchange rate might increase from the current 1.0850 to 1.15.

July 23, 2024

European Banks Revive Digital Asset Payment Market

According to Odaily, approximately a year and a half after the collapse of crypto-friendly banks in the United States, European banks are making strides to rejuvenate the 24/7 payment market for digital assets. In recent weeks, two Swiss banks, AMINA Bank AG and Sygnum Bank AG, have launched real-time payment and settlement networks. Their objective is to fill the void left by the Silvergate Exchange Network (SEN) and Signature Bank's Signet platform, both of which played crucial roles in providing liquidity to the crypto market before their collapse in March 2023.Company documents reveal that in the quarter preceding their shutdown, SEN processed $117 billion in transfers, while Signet handled $275.5 billion. The introduction of these new networks by AMINA Bank AG and Sygnum Bank AG aims to restore the seamless liquidity and continuous transaction capabilities that were lost with the closure of SEN and Signet. This move is seen as a significant step towards stabilizing and advancing the digital asset ecosystem in Europe.

August 1, 2024

BIS And Bank Of England Release Pyxtrial Project Results

According to Odaily, the Bank for International Settlements (BIS) and the Bank of England have unveiled the results of their 'Pyxtrial Project,' which aims to monitor the reserves of asset-backed stablecoins and tokenized assets. Described as a proof-of-concept project, Pyxtrial is considered an 'important first step.' However, the system is not yet fully ready for deployment. The creators of the project have noted that the global regulatory framework, which the system will help enforce, is still largely under development.

July 31, 2024

Bahamas Parliament Passes 2024 Digital Assets And Registered Exchanges Act

According to Odaily, the Bahamas Securities Commission has announced that the Bahamian Parliament has passed the Digital Assets and Registered Exchanges Act (DARE 2024). This legislative move strengthens the country's position in the realm of digital asset regulation. Building on the foundation laid by the 2020 DARE Act, the new law introduces comprehensive reforms aimed at addressing the evolving landscape of digital assets and cryptocurrency markets.Christina Rolle, Executive Director of the Bahamas Securities Commission, stated, 'DARE 2024 represents a new standard in digital asset regulation. The framework we have created not only focuses on investor protection but also encourages responsible innovation, positioning the Bahamas at the forefront of global digital asset regulation.'

July 31, 2024

SEC Provides Information for Terraform Labs Investors

According to Odaily, the U.S. Securities and Exchange Commission (SEC) has launched an information page specifically for investors affected by Terraform Labs. The SEC stated that since the settlement agreement was reached last month, investors have been inquiring about the compensation process. The SEC clarified on its webpage that it will not receive any compensation until investors and creditors have received their full bankruptcy case payouts. The SEC added that the Chapter 11 plan confirmation hearing and start date are expected to take place in the fall.Previously, it was reported that Terraform Labs agreed to pay $4.47 billion as part of the settlement agreement with the SEC. The company will pay $3.58 billion in illicit gains and $420 million in civil penalties. The settlement terms also prohibit its co-founder, Do Kwon, from serving as an executive or director of any public company.

July 30, 2024

NFT Artists Sue SEC Over Securities Classification

According to Odaily, two NFT artists have filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) regarding the classification of NFTs as securities and the agency's jurisdiction over them. Law professor Brian Frye and Jonathan Mann, known for his 'Song a Day Mann' series, initiated the legal action on Monday in the U.S. District Court for the Eastern District of Louisiana against the SEC and its five commissioners. The artists' attorneys accuse the SEC of launching a 'jurisdictional grab' and argue that categorizing NFTs as securities is absurd, using Taylor Swift concert tickets as an example to illustrate their point. The lawsuit also references two recent cases the SEC has brought against NFTs.

July 30, 2024

US Senate Delays Vote On Cryptocurrency Regulation Bill

According to Odaily, the United States Senate has postponed the vote on a cryptocurrency regulation bill this week. The bill may be revisited when lawmakers return to Washington in September. Senate Agriculture Committee Chair, Michigan Democrat Senator Debbie Stabenow, has been working on the bill and planned to hold a markup hearing on Wednesday. However, she did not secure the support of the committee's top Republican, Arkansas Senator John Boozman.Cody Carbone, Chief Policy Officer of the Digital Chamber, stated in a release, 'As industry leaders and committee members continue to provide feedback to Senator Stabenow's team, the bill has undergone multiple iterations. It appears that the review of the bill will be delayed until after the August recess to achieve more consensus. Senator Stabenow continues to engage with stakeholders to solicit feedback, which is positive.A statement from Stabenow's office, obtained by Politico reporters, indicated that she is collaborating with the Senate Banking Committee to draft the bill and emphasized the need for a Republican senator to 'step up.'

July 30, 2024

Lawsuit Filed Against SEC Over Digital Art Sales Jurisdiction

According to Foresight News, law professor Brian Frye and Jonathan Mann, the creator of 'Song a Day Mann,' have filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) and its five commissioners. The lawsuit was submitted to the U.S. District Court for the Eastern District of Louisiana on Monday. The plaintiffs' attorneys accuse the SEC of launching a campaign to assert jurisdiction over the sale of digital artworks, using examples such as Taylor Swift concert tickets and referencing two recent NFT-related cases by the agency. Both companies involved in these cases are preparing NFT projects and are seeking a court ruling on the matter. The SEC has declined to comment on the lawsuit. Ashley Ebersole, Chief Legal Officer at 0x Labs and a former SEC attorney, noted that previous SEC enforcement actions regarding NFTs have been settled, leaving courts with limited opportunities to determine whether NFTs qualify as securities.

July 30, 2024

Fed's September Rate Cut Signals Awaited Amid Economic Data Releases

According to BlockBeats, the market has fully priced in a rate cut by the Federal Reserve in September. However, a key question for the Federal Open Market Committee (FOMC) meeting on July 30-31 is how clearly the FOMC will signal this move. Economists, including Anna Wong, believe that the communication from the July meeting will only provide a preliminary hint of a rate cut in September. Federal Reserve Chair Jerome Powell is expected to indicate that a rate cut is possible if the data evolves as anticipated. The main reason for this cautious approach is the significant amount of data yet to be released before the FOMC meeting on September 17-18, including two inflation and employment reports, which could show considerable changes. The best time to clearly signal a September rate cut would be during Powell's speech at the Jackson Hole central bank symposium at the end of August, by which time he will have an additional month of employment and inflation data.Economists' expectations for the July 30-31 FOMC meeting are that, despite calls from many Wall Street analysts for a rate cut, the FOMC will unanimously decide to keep rates unchanged at 5.25%-5.50%. Since the June FOMC meeting, inflation data has been encouraging, while economic activity data has been somewhat concerning. Overall, the committee is likely to view the balance of risks between its two goals—price stability and full employment—as roughly equal.