SEC Unlocks Next Crypto Gold Rush

Chart of the Day — Tokenized equity holder numbers soaring
Trade of the Day — MSFT lining up for a short
Alpha Leaks — Vitalik makes the case for AI cybersecurity
News Roundup — SEC and CFTC support crypto, TradFi tokenization, Hyperliquid highs

Tokenized Equity Holders Above 4M

According to data from Blockworks, the number of tokenized equity holders has now risen to a total, across blockchains, of just over 4 million. The top three chains are BNB Chain, on 1.7 million, Robinhood Chain, on 1.3 million, and Solana, on 850,000, but keep in mind that Robinhood Chain has only been operating since the start of July.

Tokenized stocks are a huge topic right now, and there have been several key developments in this sector, which we’ll dive into in the News Roundup, below.

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We’re returning to the MSFT chart today. This was mentioned a couple of weeks ago and it’s taking a while to play out, but it appears that MSFT is in either (or both of) a head and shoulders or a rising wedge. Both of these patterns tend to be bearish, so we favor a short position here.

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SEC and CFTC Step Up for Crypto

The Clarity Act failed to pass its Senate vote earlier this week, but… does it even matter? As anticipated, the SEC and the CFTC have both stepped up to help clear a path for the crypto industry, making it clear that crypto will be part of the financial landscape, with or without new legislation.

On Thursday, the SEC announced a five-year Innovation Exemption facilitating the trading of tokenized stocks on “certain onchain venues”. There are some conditions attached, but essentially, the SEC is giving tokenized stocks a temporary all-clear, and signalling a permissive stance.

Additionally, the SEC has greenlit 23/5 stock market trading, due to begin in December, and indicated that 24/7 trading is a possibility, which would align traditional markets with crypto markets.

As for the CFTC, it has announced a “No-Action Position to Providers of Passive Software”, meaning that crypto wallets and other crypto trading developers will not have to register with the CFTC.

And then on Friday, the CFTC filed its own new crypto rulemaking proposals–titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets”–making it clear that if the Senate will not pass crypto legislation, then regulators will take an alternative route of their own.

TradFi Giants Make Onchain Moves

Sticking with the theme of tokenization, S&P Global has announced that it is to acquire blockchain security firm OpenZeppelin, indicating real commitment to moving markets onchain.

OpenZeppelin stated of the deal, “onchain finance is growing from an emerging market into core financial infrastructure”.

And at the same time, NYSE is working on bringing traditional markets online 24/7 through onchain trading using its own in-development new platform ATS (Alternative Trading System).

As for which networks might play a role in this, Michael Blaugrund, Head of Equities at NYSE, has said that NYSE is closely engaged with Avalanche, as it fits many requirements.

Hyperliquid: The Infrastructure to House All Finance?

Take a look at the front of the Hyperliquid website and it will tell you that the chain provides the “infrastructure to house all finance”, but can that claim really be true?

Well, it might not be all the way there yet, but it’s heading in that direction, and the latest addition to its line-up is Manual Borrows, which went live on Friday. This allows users to borrow USDC or USDT against collateral supplied as either HYPE or BTC. Or to earn interest, users can supply the quote assets, USDC and USDT.

This product addition means that Hyperliquid now offers perps trading of both crypto and RWAs, spot trading, outcome markets, HYPE staking, vaults, and DeFi lending.

And price action is reflecting this commitment to expansion, with HYPE climbing today to a new ATH approaching $95.

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