Howard Lutnick, CEO of Cantor Fitzgerald and chair of Donald Trump's presidential transition team, believes proper regulation would cause companies to go “head first into Bitcoin.” Currently, regulations require banks to set aside an equal amount of money for every dollar in Bitcoin. Cantor Fitzgerlad plans to open a Bitcoin financing business to provide lending and leverage to BTC holders.

Larry Fink stated in an interview with CNBC that while he was originally a skeptic on Bitcoin, he now believes it is a legitimate financial instrument. Fink sees it serving a purpose for investors afraid of currency debasement and as a hedge against government financial control. Equating it to “digital gold,” he believes it is a hedge against hope with strong industrial use.

In a recent interview with CNBC's Squawk Box, SEC Chair Gary Gensler emphasized the urgent need for investor protections within the cryptocurrency industry. He warned that without these safeguards, the sector is unlikely to endure. Gensler pointed to the significant turmoil experienced in the crypto market over the past few years, highlighting the collapse of major firms such as FTX, Three Arrows Capital, and Celsius. He noted that many prominent figures in the industry have faced legal consequences, including FTX's Sam Bankman-Fried, who was sentenced to nearly 25 years in prison for fraud. Gensler's comments reflect a broader concern about the lack of trust and accountability in the crypto space, which has seen tens of billions of dollars lost due to bankruptcies and mismanagement. He stated, "What innovative field in America survives without having building trust in that field and protecting investors or consumers?" This underscores his belief that investor protection is essential for the sustainability and growth of the industry. While Gensler has classified most cryptocurrencies as securities, he reiterated that Bitcoin is an exception. He encouraged the registration of crypto platforms with the SEC to ensure compliance and transparency. Gensler also mentioned that investors can now express their views on Bitcoin through exchange-traded products, which provide a regulated avenue for investment. The discussion also touched on the political landscape, with Gensler being asked about the differing views on cryptocurrency from presidential candidates Vice President Kamala Harris and Donald Trump. Harris has expressed a commitment to fostering innovation in digital assets while ensuring consumer protection, whereas Trump has criticized regulatory actions against crypto and proposed his own crypto initiative. Gensler refrained from commenting on the political implications but maintained that investor protection is crucial for fostering innovation across all sectors. Overall, Gensler's remarks highlight the SEC's ongoing efforts to regulate the cryptocurrency market and the importance of establishing a framework that protects investors while allowing for innovation.

Johnny Ng, a legislative council member in Hong Kong, suggests that Hong Kong should explore including Bitcoin in its strategic financial reserves because of its growing acceptance and status as "digital gold."

Sen. Cynthia Lummis and former President Donald Trump have proposed creating U.S. bitcoin reserves, arguing that it could act as a buffer against market fluctuations.

Publicly-listed companies are increasingly adding Bitcoin to their balance sheets, a trend that has gained momentum since the cryptocurrency's all-time high in March 2024. Notably, six companies, including five publicly traded ones, have collectively purchased approximately 48,836 BTC during this period, with an estimated expenditure of around $3.09 billion. This investment is now valued at approximately $3.1 billion. MicroStrategy, a data intelligence firm, has been a significant player in this trend, accounting for 97% of the Bitcoin acquired by these corporations, while the others, including Block, Metaplanet, Semler Scientific, OneMedNet, and Real Bedford FC, contributed about $92.7 million. The price of Bitcoin has seen fluctuations, retracing as much as 27% from nearly $73,740 to $53,900. While the exact purchase prices for these acquisitions are difficult to pinpoint, estimates suggest that companies likely spent around $63,250 per coin. Since MicroStrategy's initial Bitcoin purchase in August 2020, at least fifteen companies have added Bitcoin to their balance sheets, with the actual number likely being higher. This includes various firms across different sectors, from e-commerce to gaming, reflecting a growing acceptance of Bitcoin as a legitimate asset. The trend of corporate Bitcoin purchases is accelerating, with at least 32 companies making acquisitions in 2024 alone, compared to just nine in 2023. This surge indicates a broader institutional interest in Bitcoin, with many companies adopting strategies similar to MicroStrategy's. In the broader cryptocurrency market, Bitcoin's price has recently dipped below $65,000, settling around $63,572, while Ether is trading at $2,616. Despite this, a significant portion of altcoins tracked by ETC Group has outperformed Bitcoin, and overall market sentiment appears bullish, as indicated by the Cryptoasset Sentiment Index reaching its highest level since March 2024. In a notable development, Changpeng Zhao, co-founder of Binance, has been released from federal custody after serving a four-month sentence. Following his release, Zhao expressed satisfaction with Binance's operations under new CEO Richard Teng, indicating that the exchange is performing well without his direct involvement. As part of his plea deal, Zhao is barred from managing Binance for three years and has shifted his focus towards investing in blockchain technology and education initiatives, including a nonprofit platform aimed at providing free education. Additionally, the cryptocurrency landscape is evolving, with Japan considering a review of its crypto oversight rules, potentially paving the way for the introduction of ETFs. This shift reflects a broader trend of regulatory adaptation to the growing demand for cryptocurrency investment products, signaling a more favorable environment for digital assets in Japan. Overall, the increasing participation of publicly-listed companies in Bitcoin acquisition, alongside regulatory developments and the evolving roles of key figures in the crypto space, highlights a significant transformation in the cryptocurrency market.

Arthur Hayes, co-founder of BitMEX, suggested that the crypto bull market is coming back because of recent interest rate cuts by the Bank of Canada and the European Central Bank, potentially marking the start of a global easing cycle. He speculated about further rate cuts by other central banks, and took a cautious stance on the U.S. Fed's actions given the proximity to the presidential election. Hayes ultimately concluded by encouraging investments in bitcoin and other crypto in light of these developments.

A report by VanEck reveals that approximately $175 billion worth of bitcoin is held by ETFs, nations, and both public and private companies, which makes up about 15% of the total Bitcoin supply. This holding demonstrates increasing institutional interest and acceptance of bitcoin as a viable store of value, with more involvement from hedge funds, asset managers, and endowments.

Policymakers' opposition to Bitcoin, especially Bitcoin ETFs, is more rooted in concerns about the financial system's stability than investor protection or criminal use. Bitcoin acts as a stark signaling device, highlighting problems with excessive government spending and monetary policy. The ETFs also provide an easy ‘exit ramp’ for all people, which could prove to be problematic for a regime reliant on excessive government spending.

Ethereum co-founder Joe Lubin described recent SEC approvals of spot Ethereum ETFs and bipartisan support for a crypto regulation bill as big shifts in U.S. crypto policy, largely influenced by political dynamics.

This argument explains why a middle-class American who believes in the current system should support crypto. The government has been aggressively anti-crypto and in some cases criminal, like in the Debt Box case where the SEC was sanctioned for committing perjury. Furthermore, the current financial system penalizes small and medium-sized businesses by not providing adequate protections against the risks the banks take with their money. Change to this system will have to come from the outside, with competitive products that challenge the status quo through low transaction costs, self-custody, and a lower risk profile.

Bitwise highlights Bitcoin's ability to let users hold and control their wealth independently of centralized institutions. Despite its volatility and lack of governmental endorsement, Bitcoin's value is underpinned by its scarce supply and high demand. Bitcoin skeptics fail to appreciate its resistant nature to censorship and the fundamental market principles that determine its pricing.

The recent growth in the market capitalization of stablecoins is playing a significant role in providing liquidity that may support an increase in the price of Bitcoin and other major cryptocurrencies. According to CryptoQuant, this trend is crucial for the overall health of the crypto market. Julio Moreno, the Head of Research at CryptoQuant, emphasized that the inflow of stablecoins onto centralized exchanges has been notable, with USDT reserves reaching a record high of $22.5 billion in 2024. This influx of stablecoins is seen as a positive indicator for potential price growth in Bitcoin. The stablecoin market capitalization has hit a record high of $169 billion this year, and there is a strong correlation between the total market cap of stablecoins and rising Bitcoin prices. CryptoQuant's analysis indicates that the net inflow of stablecoins onto exchanges can serve as a predictive tool for Bitcoin's future price movements. Notably, there was a significant correlation observed in September between Bitcoin's price and the net inflows of stablecoins, particularly influencing the price increase towards the end of that month. In addition to the stablecoin dynamics, K33 Research has identified several bullish factors for Bitcoin as the market approaches the fourth quarter. These include a shift in the Federal Reserve's policy, efforts by China to enhance liquidity, and the recent approval of options trading on spot Bitcoin exchange-traded funds (ETFs). The report highlights that these developments are likely to generate momentum and drive further activity in the global markets. The approval of institutional options trading on BlackRock's spot Bitcoin ETF is particularly noted as a catalyst for optimism, with expectations of increased ETF inflows to meet the demand for options exposure. Overall, the combination of stablecoin market growth and favorable macroeconomic factors is creating a potentially bullish environment for Bitcoin and the broader cryptocurrency market as it heads into the final quarter of the year.

Pro-crypto Senator Cynthia Lummis plans to announce legislation for establishing a US Strategic Bitcoin Reserve at the Bitcoin 2024 conference in Nashville. Under this plan, the Federal Reserve would hold BTC as a strategic reserve asset, similar to how it holds gold and foreign currencies. Lummis is expected to make the announcement on Saturday before Trump speaks, but details have yet to be finalized.

Traditional indicators for cryptocurrency market tops might not be relevant in the current cycle. The increasing influence of institutions like BlackRock on Bitcoin sentiment and the mainstream adoption of crypto could change what traditional market tops look like. Look for broader signals, such as sovereign wealth funds investing in Bitcoin, corporate treasuries diversifying into crypto, crypto company IPOs, and potential crises from over-leveraging or restaking in the sector.

Joshua Lim discusses the implications of the SEC's approval of IBIT options in a detailed thread, emphasizing the evolving landscape of cryptocurrency trading and the role of established options markets. He begins by acknowledging the existing liquidity in the crypto options market, particularly highlighting Deribit, which handles approximately $40 billion in notional monthly trading of Bitcoin options, significantly outpacing the CME's $3 billion. Lim points out that while Deribit is an offshore and crypto-native venue, it attracts both retail traders and traditional finance (tradfi) firms, including notable market makers. He notes that these firms are drawn to the healthy margins available in crypto trading, despite their fluctuating interest in the sector over the years. The presence of institutional users on Deribit is also significant, with various trading strategies being employed, such as directional trades and volatility arbitrage. He raises questions about the potential for a short squeeze in Bitcoin options, referencing the historical context of market squeezes and the challenges of manipulating a $1 trillion asset class like Bitcoin. Lim argues that while such squeezes are theoretically possible, they are less likely to occur compared to smaller markets with limited supply. He also discusses the macroeconomic factors that have historically influenced Bitcoin's price movements, suggesting that these factors may overshadow the potential for options-driven price spikes. Lim contemplates the impact of IBIT options on the broader derivatives market, predicting that their introduction will enhance trading volumes and facilitate risk-netting across different products. He anticipates that the influx of traditional finance into the crypto space could lead to a dampening of volatility, as structured products become more prevalent. This could result in a significant increase in the issuance of IBIT-linked notes, further integrating traditional finance with the crypto ecosystem. He also speculates on the potential for an altcoin boom, driven by increased liquidity and margin lending against Bitcoin collateral. Lim believes that the options markets will help in pricing the risks associated with margin lending, making it more attractive for prime brokers to engage with crypto assets. Additionally, he predicts that basis spreads will compress as access to USD funding improves, which would further stabilize the market. In conclusion, Lim emphasizes that while there are risks associated with trading IBIT options, the overall landscape is poised for growth and transformation, driven by the convergence of traditional finance and cryptocurrency markets. The anticipated changes could lead to a more robust trading environment, benefiting both retail and institutional participants in the crypto space.

Standard Chartered's Geoff Kendrick is expecting a sustained rally for Bitcoin and other digital assets since the Fed Reserve's rate cut, attributing the expected growth more to favorable macroeconomic conditions than to the outcome of the U.S. presidential election.

Austin Campbell discusses the recent developments surrounding Binance and the broader implications for the cryptocurrency industry in the context of traditional finance (tradfi) and regulatory scrutiny. He begins by acknowledging the significant compliance issues that Binance faced between 2018 and 2021, which made it vulnerable to exploitation by bad actors. He draws parallels between Binance's challenges and those faced by traditional financial institutions, highlighting that compliance failures are not unique to crypto but are prevalent in the traditional banking sector as well. Campbell points out that major banks have faced substantial fines for similar issues, yet the consequences for their executives have been minimal compared to what Binance's CEO, CZ, has experienced. He questions the fairness of the regulatory response, suggesting that if the conduct of Binance warrants severe penalties, then similar actions in tradfi should also lead to significant repercussions for bank executives. He argues that the public nature of blockchain transactions makes it easier to detect crime in the crypto space, which can create a misleading perception of the prevalence of crime compared to the opaque nature of traditional finance. Campbell expresses concern that political efforts to combat crime in crypto may hinder progress in addressing financial crime more broadly. He emphasizes that the visibility of crypto transactions does not equate to a higher incidence of crime, and he challenges the notion that the choice of ledger technology is the root of the problem. The discussion also touches on the political landscape, with Campbell criticizing politicians for scapegoating crypto while ignoring more significant issues within the traditional financial system. He suggests that the regulatory focus on crypto may be a distraction from deeper systemic problems and calls for a reevaluation of how financial crime is addressed across both sectors. In conclusion, Campbell presents two possibilities: either the conduct of Binance is not as severe as portrayed, and CZ has been unfairly treated, or the conduct is indeed serious, and regulators have failed to hold traditional financial institutions accountable. He advocates for a more equitable approach to regulation that addresses the root causes of financial crime in both crypto and traditional finance, urging for reforms that prioritize transparency and accountability.

In an appearance on CNBC, SEC Chairman Gary Gensler said he believes there is a disproportionate amount of scams, fraud, and media attention in crypto compared to its market cap. He believes that the attention given to the SEC's crypto enforcement is a function of the fact that that's where the media's attention is and that he is frequently asked about crypto by financial media. Gensler did not comment on recent Wells notices or lawsuits facing Robinhood, Consensys, and others.

Block, the parent company for Cash App and Square created by Twitter co-founder Jack Dorsey, dedicated its shareholder letter to explaining why it focuses on Bitcoin instead of crypto and Web3. Block believes Bitcoin is the best option for the internet's native currency. Its strategy focuses on making it accessible through Cash App, secure through creating mining hardware, and usable through mobile on- and off-ramps.

If elected, Robert F. Kennedy Jr. promises to make Bitcoin non-taxable and direct the treasury to buy 4 million BTC, saying it would make Bitcoin worth “hundreds of trillions of dollars.” MicroStrategy's Michael Saylor explained that his 2045 bear case is $3M, base case is $13M, and bull case is $49M per coin.

Jamie Dimon, CEO of JPMorgan Chase, reiterated his skepticism of cryptocurrencies but highlighted that JPMorgan is a major user of blockchain technology, calling it an efficient way to share data. Despite dismissing crypto as "worthless," Dimon emphasized that the bank's Onyx blockchain network has processed over $700 billion in transactions since 2020.

Though FIT21 is a momentous step forward for legitimizing the crypto industry, issues with its current form must be addressed in Senate negotiations. The bill's bifurcation of cryptocurrencies into “restricted digital assets” and “digital commodities” ignores tokens' global and fungible nature, leading to fragmentation and regulatory arbitrage. Lawmakers should refine the bill to unify spot markets for tokens that are not otherwise securities.

Uniswap Labs, Circle, and the Copenhagen Business School have released a paper explaining how traditional financial factors affect the crypto market. Since 2019, digital asset prices have been composed of monetary policy, broad market risk premium, and crypto-specific demand. Two-thirds of Bitcoin's 2022 decline can be attributed to contractionary monetary policy. 2023 and beyond's bull market has been driven by the decrease in crypto risk. Day-to-day Bitcoin volatility can be explained best by adoption and risk premium shocks.

This thread cites several factors for the bull case for Ethereum and an eventual $10,000+ price. The early pivot to Layer 2s and the commitment from innovative companies, like StarkWare and Coinbase, in building L2s demonstrates industry confidence. Even though L1 transaction costs remain high, the mainnet remains a place for the highest-security transactions, and the deflationary nature of ETH incentivizes investors to hold. Institutions and governments seem to be warming up to Ethereum, as demonstrated by BlackRock’s onchain fund and the CFTC’s declaration that Ethereum is a commodity.

Donald J. Trump recently shared a message emphasizing his commitment to revitalizing America through cryptocurrency. He announced that @WorldLibertyFi is working towards establishing the United States as the leading hub for cryptocurrency. This initiative is positioned as a significant opportunity for individuals to participate in a transformative moment in the financial landscape. Trump highlighted that the whitelist for eligible participants is now open, inviting people to join this movement. He directed interested individuals to visit the website worldlibertyfinancial.com to learn more and get involved. This announcement reflects Trump's ongoing engagement with the cryptocurrency sector, aligning with his broader agenda of economic revitalization and innovation. The call to action suggests a push for community involvement in shaping the future of finance in America, leveraging the growing interest in digital currencies.

SEC Chair Gary Gensler has criticized the Financial Innovation and Technology for the 21st Century Act (FIT21), arguing that it would create regulatory gaps and reduce the oversight of crypto assets as securities, thus jeopardizing investor protection.

Richard Teng, who replaced Changpeng Zhao as Binance's CEO, stated that the exchange is not considering an IPO due to its strong financial position. Teng emphasized that Zhao is no longer involved in company operations, though co-founder Yi He is still active in management. Binance is transforming into a board-led organization, seeking a permanent HQ, and improving relationships with regulators to ensure stability.

Brian Armstrong, co-founder & CEO of Coinbase, highlights the impact of decentralized, low-cost, fast payment solutions like stablecoins on global finance, noting the potential to revolutionize everyday transactions and payments by reducing costs and increasing efficiency, similar to the drastic shift seen in the messaging industry.

The U.S. House of Representatives has passed the Financial Innovation and Technology for the 21st Century Act (FIT21), marking a significant bipartisan effort to provide regulatory clarity for the cryptocurrency sector, enhance consumer protection, and foster American innovation. As the bill progresses to the Senate, advocates are encouraged to actively support responsible crypto regulation through social media engagement and outreach to senators.