DeepSeek Makes Sending Crypto Easy, Klarna Goes Crypto-Friendly & More

Welcome back!

This is J264G and this week I’ve got these titbits for you:

• AI-Powered Crypto: Whisper enables crypto transactions via DeepSeek & Co.

• Reshaping Finance: Coinbase now rivals top U.S. banks and brokers in AUM.

• American Edge: Latest crypto updates from the Senate, SEC, and CFTC. 

Last week, Sebastian Siemiatkowski publicly announced that Klarna is actively exploring crypto’s potential. As one of fintech's last major crypto skeptics, Sebastian’s shift marks a pivotal turning point.

Now, let’s jump right into this week’s newsletter!

Click on any underlined heading/hyperlink to learn more.

Spotlight

Warm Embrace

In the first official statement from the SEC’s newly established Crypto Task Force, Commissioner Hester Peirce provided insight into the group’s regulatory direction and priorities. 

She began by reflecting on how the previous SEC administration handled crypto, criticising its legal ambiguity and impractical approach. As such, Peirce acknowledged the complexity of the current regulatory environment, noting that many cases remain in litigation and that multiple market participants still face uncertainty. She emphasised that resolving these issues will take time, urging patience.

Peirce then laid out a tentative roadmap for how the new SEC administration plans to engage with crypto and bring about regulatory clarity. 

Among the action items outlined, these are the most important:

• Security vs. Commodity: Determining whether crypto assets fall under securities laws is a top priority, as it impacts multiple regulatory questions. In this context, the Task Force is actively assessing different types of crypto assets.

• Registered Offerings: The Task Force will also explore modifying existing paths to registration — such as Regulation A and crowdfunding — to make token offerings more viable and legally compliant.

• Investment Advisers: Moreover, Peirce and her team will work with investment advisers to develop a clear framework for custodying crypto assets of their clients, whether held independently or via third parties.

• Crypto Rails: Efforts will also focus on how crypto fits into clearing agency and transfer agent regulations. Specifically, the Task Force aims to collaborate with market participants interested in tokenizing securities and modernising financial markets by leveraging blockchain technology.

• Global Collaboration: Given the global nature of crypto, the Task Force is considering ways to support international experimentation through a cross-border regulatory sandbox. 

Generally, Commissioner Peirce’s statement signals a complete shift in the SEC’s stance and tone toward crypto. 

Particularly as she emphasises that building in crypto should be both safer and more enjoyable, which can be achieved through a more structured and inclusive regulatory environment that protects investors and fosters innovation and growth.

You know I’m already bullish on crypto, but the new SEC has me even more excited — let’s get to work!

Chart Of The Week

News Bites

Going Global: Phantom recently introduced multi-currency support, further enhancing the overall user experience. Users can now view balances and token prices in 16 different currencies, making it easier to track portfolio values in their preferred denomination.

AI-Powered Crypto: Whisper leverages AI platforms such as OpenAI, Gemini, and DeepSeek, enabling users to send crypto to phone numbers by initiating transactions through a simple chat interface.

Decentralised Science: yesnoerror is an AI agent powered by the $YNE token on Solana, designed to analyse scientific papers for errors and discrepancies. Recently, Reid Hoffman — Partner at Greylock — publicly voiced his support for the initiative.

Dollar Supremacy: Senator Hagerty has introduced the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a bill aimed at establishing clear regulations for U.S. stablecoins and ensuring dollar supremacy.

Regulatory Tailwinds: The Commodity Futures Trading Commission will hold a CEO Forum with industry-leading firms to discuss the launch of a digital asset markets pilot programme for tokenized non-cash collateral such as stablecoins. 

USDC Collateral: On the topic of stablecoins, Circle CEO Jeremy Allaire suggests that the CFTC pilot programme may allow USDC to be used as collateral in futures markets. If implemented, this move could further integrate stablecoins into traditional finance.

Reshaping Finance: Brian Armstrong revealed that Coinbase now holds $420B in customer assets, which would rank the centralised exchange as the 21st largest bank or 8th largest brokerage in the U.S.

Perpetual Surge: Raydium’s perpetual futures platform (public beta) reached $100M in daily volume, making it the third-largest derivatives player on Solana and a rising contender in the perpetual futures market.

Tokenizing Gold: ORO is shaking up tokenized RWAs by bringing gold onchain via Solana. The team recently announced the signing of an MOU with the German Minister of Finance and the UAE Minister of Foreign Trade.

ETF Expansion: BlackRock plans to launch a spot Bitcoin ETF in Europe, domiciled in Switzerland — highlighting the asset manager’s long-term commitment to integrating crypto into traditional financial markets.

Caught In 4K

Weekly Take

Keks & Giggles

And that's a wrap!

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Talk soon!

J264G

_{DISCLAIMER
None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research. Lastly, please be advised that we discuss products and services from our partners from which our team members may hold tokens/equity.}