Katherine Ross

Robinhood announced on Thursday that it entered into an agreement to acquire Bitstamp.



As part of the <a href="https://www.globenewswire.com/news-release/2024/06/06/2894548/0/en/Robinhood-to-Acquire-Bitstamp.html">deal</a>, Robinhood would pay $200 million in cash and it gets the bonus of an international expansion. The deal won’t close until the first half of 2025.



There are two aspects to look at when combing through this deal and what it means for the publicly traded Robinhood.&nbsp;



While the announcement buoyed shares, which jumped on the news, analysts such as JMP’s Devin Ryan didn’t boost their price targets or weighting on the stock.&nbsp;



Ryan’s team reiterated a $30 price target and its outperform rating on the stock.&nbsp;



“We believe owning the exchange will provide opportunities for the firm to more deeply connect into the ecosystem (e.g., trading, staking, tokenization, payments, remittance, wallet integration), and perhaps over the longer term play an even bigger role in the tokenization of assets and securities, which we believe could be quite interesting. We also see opportunities to drive more activity and better economics with existing Robinhood retail customers through the exchange,” the analysts wrote.&nbsp;



Robinhood <a href="https://blockworks.co/news/robinhood-solana-staking-europe">rolled out</a> Solana staking in the EU earlier this year after making its European Union debut just last December. In February, the firm <a href="https://blockworks.co/news/robinhood-q4-earnings-2024">teased</a> that it plans to focus on building out that customer base.



Read more: <a href="https://blockworks.co/news/gensler-targets-crypto-exchanges">Gensler takes aim at crypto exchanges</a>



But Ryan’s team thinks that HOOD could open its doors to more institutional clients with the acquisition as well. According to CoinMarketCap, Bitstamp is ranked 16th on top crypto spot exchanges.



The company said it plans to onboard the Bitstamp team, and this means that it won’t have to pursue its own licenses in various jurisdictions.&nbsp;



“Through this strategic combination, we are better positioned to expand our footprint outside of the US and welcome institutional customers to Robinhood,” said Johann Kerbrat, General Manager of Robinhood Crypto.&nbsp;



But it’s going to take some time for these benefits to be realized financially. JMP wrote that it estimates revenues to be in the “ballpark of $100 [million]” and that’s based on “trailing 12-month volumes of $70 billion.”



Now there are other concerns, which we covered in the Empire newsletter Thursday morning.&nbsp;



First is the potential lawsuit that Robinhood faces on US soil.&nbsp;



In the last couple of months, the Securities and Exchange Commission served Robinhood, Uniswap and Consensys with Wells notices. Based on the Coinbase timeline from last year, if the SEC pursues a lawsuit against any of the three, we’re likely to see it filed this summer.&nbsp;



Despite trying to fly under the radar, Robinhood couldn’t avoid the SEC’s ire. Last year, the company even delisted tokens after the regulatory agency listed them as securities in suits against Binance and Coinbase.&nbsp;



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Robinhood’s Bitstamp acquisition could open the door for institutional clients

David Canellis

<h2 class="wp-block-heading">ETFs as a Trojan horse</h2>



“Why shouldn’t there be a BONK ETF?” asked Jim Cramer of Gary Gensler on CNBC yesterday.



And it wasn’t even just BONK. The Mad Money host also made the case for ETFs backed by sushiswap, polkadot, cardano (he called it “cordano”), immutable, ronin and osmosis and myneighbouralice.



“[They have] all traded millions—I’m talking millions of dollars this very morning … I would think that BONK is a natural, and osmosis… shouldn’t we have some sort of product?”



Gensler sidestepped by redirecting the question to the matter of disclosure. Today is the SEC’s 90th birthday, he said, and reminded the audience (talking into the camera) that President Roosevelt created the Commission to ensure sellers of securities openly inform prospective investors so they can make better decisions.



His point was that, across crypto, those disclosures supposedly aren’t happening. This, if you ask lobbyists, industry lawyers and founders, is because issuers and protocol stewards simply don’t consider the tokens securities or investment contracts — so there’s no disclosure required — and in many cases there’s no centralized entity through which to disclose.



And then he came for the crypto exchanges.&nbsp;



“These crypto exchanges, Jim, are doing things we would never allow this New York Stock Exchange to do,” Gensler said. “Our laws don’t allow you to trade against your customers.”



The questions were awkward for Gensler, even before Cramer brought up memecoins that borrow likenesses of celebrities and other media personalities, including himself and <a href="https://blockworks.co/news/gensler-memecoin-outperforms-market">the SEC chair</a>.



(Gensler said those should be registered as securities, but it’s unclear whether he fully grokked the concept of memecoins about public figures that weren’t issued by the actual person.)



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="1600" height="868" src="https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-1.png" alt="" class="wp-image-87339" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-1.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-1.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-1.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-1.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-1.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-1.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-1.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-1.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image-1.png?w=80 80w" sizes="(max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">The moment Gensler found out about $CRAMER, which <a href="https://www.coingecko.com/en/coins/cramer-coin">spiked</a> up to 500% following the segment (Source: <a href="https://www.youtube.com/watch?v=M-VO6dtFRes">CNBC Television</a>)</figcaption></figure>



Cramer may not have remembered, but the SEC already labeled cardano a security in both <a href="https://blockworks.co/news/sec-sues-coinbase">Coinbase</a> and <a href="https://blockworks.co/news/sec-10-tokens-securities">Binance</a> lawsuits filed last June, alongside a dozen others including solana, polygon, BNB, internet computer, filecoin and axie infinity.&nbsp;



So far, the companies and entities working to build out those ecosystems haven’t been sued — just crypto exchanges found listing them. Tron founder Justin Sun was sued separately months before over TRX and bittorrent (BTT), while the SEC stung Ripple Labs for XRP in December 2020 and sent Uniswap Labs a <a href="https://blockworks.co/news/sec-issues-uniswap-wells-notice">Wells notice</a> in April.



Still, the Binance and Coinbase lawsuits coincided with a severe drop in the bitcoin ratios for the tokens singled out by the SEC.&nbsp;



Most had fallen more than 10% against bitcoin in the three days following the suits, with those losses doubling over the next two weeks or so. Bitcoin itself dropped around 7% over the same period.



To date, out of the 13 tokens named by the SEC, only bitcoin ratios for solana and near have made it back, followed by ICP, which is only just short. Ironically, near and ICP have been largely invigorated by the AI narrative, something of which Gensler is a <a href="https://blockworks.co/news/sec-gensler-ai-better-than-crypto">huge fan</a>.



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="1600" height="1195" src="https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image.png" alt="" class="wp-image-87338" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image.png?w=344 344w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image.png?w=349 349w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image.png?w=293 293w, https://blockworks-co.imgix.net/wp-content/uploads/2024/06/image.png?w=80 80w" sizes="(max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">The colorful band of lines beneath the cross pulls downward following the lawsuits — but few have recovered</figcaption></figure>



Beating bitcoin (and thus growing the bitcoin ratio) has however been tough this bull market, and tons of cryptocurrencies that haven’t been named as securities by the SEC have underperformed.&nbsp;



All things considered, there probably won’t be a BONK ETF anytime soon, but the notion that cryptocurrencies might one day invade the stodgy stock market via ETFs is compelling.&nbsp;



The real trick to getting SEC approval is turning out to be courting CME, which is regulated by the CFTC and not Gensler&#8217;s agency. Bitcoin and ether both had futures markets for years before spot ETFs were approved.



Perhaps a dogecoin fund might be an easier sell. Coinbase Derivatives, which is also regulated by the CFTC, not long ago <a href="https://www.cftc.gov/sites/default/files/filings/ptc/24/03/ptc03072412521.pdf">launched</a> its own dogecoin futures markets.



CME Group <a href="https://www.theblock.co/linked/102033/cme-group-is-not-launching-dogecoin-futures">denied</a> it had any plans for dogecoin futures when rumors circulated in 2021. What better time to revisit that decision.



— David Canellis



<h2 class="wp-block-heading">Data Center</h2>



<ul>
<li>BTC is sitting slightly above $71,000, even for the day and less than 4% away from all-time high. BNB set its own price record on Wednesday.</li>



<li>Base memecoin Based Brett (BRETT) rallied another 30% to a new price record. Launched in February, it now has a $1.5-billion market cap.</li>



<li>Base stablecoin volume has nearly never been higher, currently more than $1.5 billion per day, per <a href="https://app.blockworksresearch.com/analytics/base?dashboard=base-onchain-activity">Blockworks Research</a> data. May 23 saw almost $1.7 billion.</li>



<li>Aside from Optimism, weekly net flows into Binance Smart Chain bridges are higher than Polygon zkEVM, Arbitrum and all others <a href="https://defillama.com/bridges/chains">tracked</a> by DeFiLlama combined, with $20.4 million to OP’s $72 million.</li>



<li>Derivatives appchain Hyperliquid has crossed over $200 billion cumulative volume, by far <a href="https://defillama.com/derivatives/chains/hyperliquid">second</a> only to Arbitrum, which has seen $308 billion.</li>
</ul>



<h2 class="wp-block-heading">The merry adventures of Robinhood</h2>



Wake up, honey, we’ve got some M&amp;A activity.&nbsp;



Robinhood announced that it entered into an agreement to acquire Bitstamp, one of Europe’s largest and longest-serving crypto exchanges.



As part of the <a href="https://www.globenewswire.com/news-release/2024/06/06/2894548/0/en/Robinhood-to-Acquire-Bitstamp.html">deal</a>, Robinhood would pay $200 million in cash. The deal won’t close until the first half of 2025.



Putting my thinking cap on, this news is interesting for a few reasons. The elephant in the room is obviously the Wells notice that Robinhood’s crypto segment received from the SEC exactly a month ago. And then there’s the international aspect.&nbsp;



Let’s first start with the SEC, shall we?



Gary Gensler’s agency made it clear earlier this year that it still intends to move forward with its regulation-by-enforcement approach when it served Robinhood, Uniswap and Consensys with Wells notices. And, <a href="https://blockworks.co/news/empire-newsletter-sec-issues-robinhood-wells-notice">as I’ve written before</a>, if the SEC pursues a lawsuit against any of the three, we’re likely to see it filed this summer.&nbsp;



So obviously, on the US front, Robinhood has its job cut out for it despite making clear efforts to follow the SEC’s crypto crackdown. Robinhood <a href="https://blockworks.co/news/robinhood-nixes-ada-matic-sol">delisted tokens last summer</a> after the SEC listed them as securities in suits against Binance and Coinbase.&nbsp;



But, alas, that wasn’t enough for Gensler and his team.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">We believe crypto will fundamentally reorganize the financial system, and we’re acquiring <a href="https://twitter.com/Bitstamp?ref_src=twsrc%5Etfw">@Bitstamp</a> to accelerate our vision. Soon we’ll combine forces with Bitstamp’s global footprint, core spot exchange and industry-leading products like crypto-as-a-service, institutional…&mdash; Vlad Tenev (@vladtenev) <a href="https://twitter.com/vladtenev/status/1798680590344126963?ref_src=twsrc%5Etfw">June 6, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Anyway, this leads me to the not-so-hostile European environment. Robinhood, in December of last year, <a href="https://newsroom.aboutrobinhood.com/robinhood-launches-crypto-trading-in-the-eu/">launched</a> in the European Union. Since then, it’s enabled <a href="https://blockworks.co/news/robinhood-solana-staking-europe">Solana staking</a> and made an effort to build out a user base. In February, the firm <a href="https://blockworks.co/news/robinhood-q4-earnings-2024">teased</a> in its earnings call that it plans to focus on building out its customer base in Europe.



And what better way to execute on that strategy than to acquire Bitstamp? According to CoinMarketCap, the exchange is ranked 16th on top crypto spot exchanges.



Robinhood says that it plans to onboard the Bitstamp team, and this means that it won’t have to pursue its own licenses in various jurisdictions. If you watch Binance closely at all, you know that the licenses aren’t always easy to acquire.&nbsp;



But this also opens up more than just Europe for the publicly traded US company. When the deal closes, Robinhood will also have access to some of the Asian market too.&nbsp;



“Through this strategic combination, we are better positioned to expand our footprint outside of the US and welcome institutional customers to Robinhood,” said Johann Kerbrat, general manager of Robinhood Crypto.&nbsp;



While Robinhood still has a ways to go when it comes to the US, it’s clearly looking to lock down the international markets.&nbsp;



— Katherine Ross



<h2 class="wp-block-heading">The Works</h2>



<ul>
<li>Over in Spain, Roger Ver was released on bail as the US seeks to extradite him over alleged tax fraud, Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-06-05/spanish-court-grants-bitcoin-jesus-bail-in-extradition-fight">reported</a>.</li>



<li>One million people have <a href="https://x.com/standwithcrypto/status/1798433256339079417">signed up</a> for Coinbase’s Stand With Crypto movement.</li>



<li>VanEck <a href="https://www.vaneck.com/us/en/blogs/digital-assets/matthew-sigel-eth-2030-price-target/">raised</a> its 2030 ETH price target to $22,000 — 470% growth from here.</li>



<li>Riot was <a href="https://x.com/KerrisdaleCap/status/1798346114279911575">targeted</a> by Kerrisdale Capital in a short-seller report, with the firm alleging that bitcoin miners are filled with “snake oil salesmen.”</li>



<li>Paxos International announced USDL, styled as the first regulated stablecoin to <a href="https://www.prnewswire.com/news-releases/paxos-international-introduces-lift-dollar-usdl---the-first-stablecoin-to-offer-holders-daily-yield-in-wallet-under-regulatory-oversight-302164126.html">offer</a> daily yield.</li>
</ul>



<h2 class="wp-block-heading">The Morning Riff</h2>



Q: Is Vitalik right to hate on celebrity memecoins?



<hr class="wp-block-separator has-alpha-channel-opacity"/>



We’re here for a good time, not a long time.&nbsp;



But I actually agree with him here. This cycle is different from what we saw in 2020-2021 but some things are staying the same, including these celeb memecoins.&nbsp;



At the end of the day, whether these folks are creating their own token or just shilling someone else’s, they’re making money off their following. And that’s okay! I mean, everyone’s making money off of hyping their social media presence: Just look at the influencers on TikTok and Instagram.&nbsp;



Buterin isn’t upset that everyone’s joined in though, he’s advocating for celeb-backed projects to have more of a means than just enriching the celeb themselves. That’s the part I can get behind.



He thinks the last good example of this was the Stoner Cats NFT project led by Ashton Kutcher and Mila Kunis in 2021, which led to an animated series. But we might see Caitlyn Jenner’s project hit at least some of his <a href="https://x.com/VitalikButerin/status/1798293391144366184">requirements for respect</a> if Jenner <a href="https://x.com/Caitlyn_Jenner/status/1796013813927473380?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1796013813927473380%7Ctwgr%5Ec502ce2f74bc6da357032732eb1e2570b377ad0c%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fdailycoin.com%2Fjenner-under-fire-for-controversial-trump-supporting-memecoin%2F">donates</a> funds to former President Donald Trump’s campaign.&nbsp;&nbsp;



— Katherine Ross



Nah. Maybe he’s right about vaporware coins touted by celebrities like DJ Khaled, Floyd Mayweather and Kim Kardashian.&nbsp;



But the celeb memecoins today aren’t like that. There are generally no white papers or claims about groundbreaking technology or impressive partnerships. It’s just memes.



There’s absolutely room for people to lose financially buying celebrity memecoins, especially impressionable people.&nbsp;



The same can be said of ERC-20s in the ICO boom, most of which had had less real-world utility than $MOTHER or $JENNER.&nbsp;



At least those are funny.



— David Canellis



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Empire Newsletter: Gensler takes aim at crypto exchanges

Bitstamp is discontinuing services in Canada starting January 2024.



The crypto company did not give a clear reason for the exit, with CEO Bobby Zagotta saying, “This is not a decision we took lightly, and we thank our Canadian customers for their loyalty over the years. We hope to be able to serve Canada again at some point in the future.”&nbsp;&nbsp;&nbsp;



“After initially informing our valued customers in March, Bitstamp will officially discontinue its services to customers in Canada starting Jan. 8, 2024. As a result, all Canada accounts will be closed and customers will no longer have access to their accounts,” Zagotta added.



Customers will be able to withdraw their funds until Jan. 8, though after that “customers must deactivate their <a href="https://blockworks.co/tag/bitstamp">Bitstamp</a> accounts.”



Read more: <a href="https://blockworks.co/news/bitstamp-eth-staking">Bitstamp ending ETH staking for US customers in September</a>



Bitstamp is the latest exchange to exit the Canadian market, following Binance and Bybit. Other companies, such as OKX, Paxos and dydx also left earlier this year.&nbsp;



“Unfortunately, new guidance related to <a href="https://blockworks.co/tag/stablecoins">stablecoins</a> and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time,” <a href="https://blockworks.co/news/binance-leaving-canada">Binance said back in May</a>.



Bybit, which <a href="https://blockworks.co/news/bybit-flees-canada">announced its decision</a> to exit the market in late May, told users to close out positions by the end of September.&nbsp;



The exits earlier this year came as the Canadian Securities Administrators gave crypto asset exchanges a deadline of late March to register with them and meet “pre registration requirements.”



However, on Oct. 6, the <a href="https://blockworks.co/news/canada-relaxes-stablecoin-rules">CSA announced that it may allow the trading</a> of specific stablecoins subject to terms and conditions.



The CSA will require stablecoin issuers to hold an “appropriate” asset reserve with a qualified custodian.&nbsp;



The change does not mean that the CSA is changing its stance on crypto.



“The fact that an asset satisfies these interim terms and conditions should not be viewed as an endorsement or approval of the asset, nor give any indication that the asset is risk-free,” the CSA warned.



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Bitstamp to exit Canada in January

Ben Strack

With Bitstamp becoming the latest crypto exchange set to end its staking services in the US, the outlook for the segment in the country is teetering.



Still, two of crypto’s largest companies continue to provide such offerings amid legal battles with the US Securities and Exchange Commission, and investors’ ability to stake via decentralized platforms remains unhindered.&nbsp;



Bitstamp pointed to “current regulatory dynamics in the US” Wednesday as its reason <a href="https://blockworks.co/news/bitstamp-eth-staking">for soon halting staking</a> for customers living in the country. The decision came about six months after <a href="https://blockworks.co/news/kraken-settles-sec-crypto-staking-program">Kraken agreed to end its on-chain staking services for US clients</a> — a move made in tandem with paying a $30 million fine to the SEC as part of a settlement.&nbsp;&nbsp;



Retail and institutional stakers, or validators, stake assets for the right to verify blockchain transactions — ensuring the decentralization of the network while also earning rewards.&nbsp;&nbsp;



Brandon Skurka, president of Canadian crypto platform Bitbuy, said he expects “a viable path forward” for regulated staking in the US as lawmakers and regulators become more familiar with the segment and its benefits.&nbsp;



“Many unregulated staking providers in the US have historically offered staking programs that have lacked necessary protections for participants, including paying out rewards from activities unrelated to on-chain protocol staking,” Skurka told Blockworks. “As practices amongst staking providers improve and mirror on-chain activities, I believe that staking will become more widely accepted and embraced in the US.”



<h2 class="wp-block-heading">Coinbase and Binance continue to fight</h2>



While Kraken and Bitstamp have chosen to end these offerings in the US, others intend to stand their ground.&nbsp;&nbsp;



Coinbase and Binance —<a href="https://blockworks.co/news/coinbase-binance-suits-different"> crypto giants sued by the SEC in June</a> for alleged securities violations — continue to offer staking services in the US.&nbsp;



Aside from the SEC’s enforcement action against Coinbase, 10 states initiated proceedings related to the company’s staking services the same day.&nbsp;



The following month, Coinbase said California, New Jersey, South Carolina, and Wisconsin required the company to limit its retail staking in those states while proceedings move forward.&nbsp;



“We are confident in the work we have done to abide by all federal and state securities laws, and as we vigorously defend that work we intend to use these proceedings as an opportunity to bring more clarity to our industry as a whole,” Coinbase wrote in its Aug. 3 shareholder letter.&nbsp;



The crypto exchange noted that staking services accounted for roughly 4% of its net revenue during the second quarter. The bulk of the company&#8217;s revenue is derived from transaction fees and interest income from USDC.



Coinbase said it seeks to protect access to staking in all states, however, “because staking is so fundamental to the operations and development of our industry overall,” the company added in the letter.&nbsp;&nbsp;



A Coinbase spokesperson declined to comment further.&nbsp;



Binance.US also continues to <a href="https://www.binance.us/staking">offer</a> crypto staking despite the SEC claiming that the company’s staking investment product counts as an unregistered security.



While Binance.US halted dollar deposits shortly after the SEC revealed the charges, it noted in a June 9 <a href="https://twitter.com/BinanceUS/status/1666996908651323393">tweet</a> that “trading and staking as well as crypto-denominated deposits and withdrawals, “remain fully operational.”



“While we remain open to a productive compromise that enables a thriving digital asset marketplace in America, Binance.US will continue to vigorously defend ourselves, our customers and industry against the meritless attacks of the SEC,” it added in the tweet.



Staking remains available for 20 cryptocurrencies, according to Binance.US’ <a href="https://support.binance.us/hc/en-us/articles/15259026846487-A-Complete-Guide-To-Using-Binance-US-as-a-Crypto-Only-Exchange">website</a>.&nbsp;



A spokesperson for Binance.US did not immediately return a request for comment.&nbsp;



In Canada, Bitbuy worked closely with regulators to create its regulated staking service, Skurka noted. Roughly 44% of the company’s monthly active users participate in crypto staking.



“Companies that engage in poor practices, or whose staking offerings differ materially from on-chain staking are at risk of being targeted by regulators and ordered to stop,” Skurka said. “Staking providers in the US that provide a managed service for on-chain-like staking will likely continue to be able to provide their services.”&nbsp;



<h2 class="wp-block-heading">Staking with decentralized protocols&nbsp;</h2>



Industry watchers <a href="https://www.bloomberg.com/news/articles/2023-02-10/us-crypto-staking-crackdown-seen-as-huge-gift-for-decentralized-services">told</a> Bloomberg in February after Kraken’s settlement with the SEC that the regulator’s crackdown on US staking was a boon for on-chain direct staking and decentralized platforms.



Kyle Doane, a trader at crypto asset management firm Arca, told Blockworks Thursday that he expects staking will ultimately move more to decentralized protocols.&nbsp;



While centralized exchanges like Coinbase and Binance.US pool client assets and manage validators on behalf of those assets in aggregate, liquid staking providers like Lido, Rocket Pool and StakeWise use Ethereum smart contracts to create liquid, tokenized versions of the ETH staked.



“There is still a lot of work to do to improve the user experience and security, but a lot of money is being directed towards these efforts,” Doane said. “The utility of liquid staking derivatives is only increasing within DeFi as well, making DeFi ultimately the more efficient route.”



Lido has the largest amount of ETH staked with a roughly 29% share, according to an Aug. 18 research note by Compass Point Research &amp; Trading. Centralized exchanges account for 20% of ETH staked — led by Coinbase at about 11%, the firm said. 



Compass Point analysts said in the note that the <a href="https://blockworks.co/news/shapella-institutional-interest-blockchain">successful Shanghai hard fork</a> in April has the potential to help spur significant adoption of staking-as-a-service (SaaS) solutions and the liquid staking market. The percentage of ETH supply that is staked is likely to move from nearly 20% to between 30% and 40%, they predict.



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With another crypto exchange set to halt US staking, what’s next for the segment?

Bitstamp is ending ether staking for US customers effective Sept. 25.



In a statement emailed to Blockworks, Bitstamp US CEO Bobby Zagotta said, “As a result, US customers will stop receiving staking rewards. All other Bitstamp services will remain unaffected.”



“Customers will continue earning staking rewards up until Sept. 25, 2023, and after that, all staked assets will be unstaked. Rewards, along with the principal, will be credited to users’ main Bitstamp account balances. Typically, this process takes a few days but could be extended depending on network conditions,” the emailed statement continued.



The company said that it is shuttering its staking features due to the US regulatory environment, with Zagotta telling Blockworks that “as one of the most regulated and trusted exchanges in the world, we have a comprehensive framework in place to continuously evaluate the services we support, taking into account the evolving regulatory environment in all jurisdictions in which we operate.”



“Considering current regulatory dynamics in the US, we’ve made the decision to discontinue staking for customers residing in the United States.”



The <a href="https://blockworks.co/tag/sec">US Securities and Exchange Commission</a> has — in multiple legal actions — targeted staking services. In its lawsuits against both Coinbase and <a href="https://blockworks.co/news/sec-allegations-against-binance">Binance</a>, it claimed that the staking programs fall under <a href="https://blockworks.co/news/binance-changpeng-zhao-face-sec-charges">investment contracts</a> under the Howey test.



“At all relevant times, the Coinbase Staking Program, as it applied to each of the five stakeable assets, was an investment contract under Howey, and therefore a security, whose offers and sales were subject to registration under the Securities Act,” the <a href="https://blockworks.co/news/sec-sues-coinbase-allegations">SEC said in its suit</a> against Coinbase.



In June, following the SEC’s suit, <a href="https://blockworks.co/news/coinbase-staking-program-targeted">multiple states targeted Coinbase’s</a> staking program, with Alabama saying that investors are not protected from potential losses, as “3.5 million staking rewards program accounts nationwide are not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC).”



Additionally, the <a href="https://blockworks.co/news/kraken-settles-sec-crypto-staking-program">SEC settled with Kraken</a> back in February over its staking products.&nbsp;



The company previously told Blockworks that it “agreed to end its on-chain staking services for US clients only. Starting today, with the exception of staked ether (<a href="https://blockworks.co/price/eth">ETH</a>), assets enrolled in the on-chain staking program by US clients will automatically be unstaked and will no longer earn staking rewards. Further, US clients will not be able to stake additional assets, including ETH.”



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Bitstamp ending ETH staking for US customers in September

Shalini Nagarajan

Luxembourg-based Bitstamp is halting trade in the US for seven cryptos classified as securities by the SEC.



From August 29 onwards, the platform will discontinue trading for <a href="https://blockworks.co/price/axs">AXS</a>, <a href="https://blockworks.co/price/CHZ">CHZ</a>, <a href="https://blockworks.co/price/mana">MANA</a>, <a href="https://blockworks.co/price/MATIC">MATIC</a>, <a href="https://blockworks.co/price/NEAR">NEAR</a>, <a href="https://blockworks.co/price/SAND">SAND</a> and <a href="https://blockworks.co/price/SOL">SOL</a>.



In legal actions against Binance and Coinbase, the Securities and Exchange Commission asserted that these tokens, among others, met the standards of a security.



Offering alleged securities on a crypto exchange brings about issues such as heightened regulatory oversight, potential legal liabilities and regulatory complexities.



<a href="https://blockworks.co/tag/bitstamp">Bitstamp</a> said in an <a href="https://blog.bitstamp.net/post/important-update-halt-of-axs-chz-ex-ny-mana-matic-near-sand-and-sol/">announcement</a> on Tuesday that new trades won’t be allowed with these assets from later this month, and any current trades will be halted.



Users were prompted to complete any buy or sell transactions they wanted with the impacted assets before the deadline.



Although Bitstamp didn&#8217;t directly attribute the suspension to the SEC&#8217;s actions, it did mention their evaluation factored in “ever-changing regulatory environments and the corresponding obligations they entail.”



“Consequently, there may be occasions when adjustments to our crypto offerings are necessary,” the exchange said.



Without the seven mentioned tokens, Bitstamp still offers trade in 30 other cryptocurrencies, including bitcoin (<a href="https://blockworks.co/price/btc">BTC)</a>, ether (<a href="https://blockworks.co/price/eth">ETH</a>) and <a href="https://blockworks.co/price/xrp">XRP</a>, which was <a href="https://blog.bitstamp.net/post/xrp-is-back-in-the-us-start-trading-today/">re-enabled</a> for US users in July following the court ruling in <a href="https://blockworks.co/tag/ripple">Ripple</a>’s dispute with the SEC.



Bitstamp isn&#8217;t the only platform restricting trade after the SEC’s actions, but its move comes notably later than other companies in the industry. The exchange didn’t return a request for comment by press time.



Binance.US in June <a href="https://blockworks.co/news/binance-culls-usdt-trading-pairs">ceased</a> a few trading pairs, such as ATOM/BTC and MANA/BTC. Meanwhile, Robinhood also took action by <a href="https://blockworks.co/news/robinhood-nixes-ada-matic-sol">delisting</a> ADA, MATIC and SOL from its offerings.



Around the same time, eToro <a href="https://blockworks.co/news/etoro-curtails-crypto-securities">restricted</a> US customers from accessing four cryptocurrencies, namely <a href="https://blockworks.co/price/ALGO">ALGO</a>, MANA, MATIC and <a href="https://blockworks.co/price/dash">DASH</a>.



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Bitstamp joins eToro, Binance.US in suspending trade for SEC-flagged tokens

Casey Wagner

Bitstamp is making its foray into crypto lending, starting with select markets that offer more lenient regulatory policies than the US, the company announced Thursday.&nbsp;



Bitstamp is now offering yields on lended crypto, ranging from 1.5% APY on <a href="https://blockworks.co/price/xrp" target="_blank" rel="noreferrer noopener">XRP</a> and 4.4% on <a href="https://blockworks.co/price/usdc" target="_blank" rel="noreferrer noopener">USDC</a> and tether (<a href="https://blockworks.co/price/USDT" target="_blank" rel="noreferrer noopener">USDT</a>). The interest income is paid out in various cryptocurrencies of the investor’s choice, the company said. 



The products are available to customers in France, Italy, Hong Kong and the <a href="https://blockworks.co/tag/UAE" target="_blank" rel="noreferrer noopener">United Arab Emirates</a>, among other regions. Users in the US and UK cannot currently access Bitstamp’s lending services. 



“We acknowledge the risks associated with lending your crypto, that’s why we have built crypto lending from the ground up for enhanced security so you can lend your crypto with increased confidence,” <a href="https://blockworks.co/tag/bitstamp" target="_blank" rel="noreferrer noopener">Bitstamp</a> said in a statement. 



In an effort to promote transparency, Bitstamp <a href="https://blog.bitstamp.net/post/lend-crypto-with-confidence-and-full-transparency/">said</a> it will be sharing a monthly performance report to include borrower risk profiles, collateral levels and more. The firm has not yet released its first report.&nbsp;



The yields are comparable to other lending programs based outside the US. Bybit, which currently blocks US IP addresses, offers 1.8% yield on bitcoin (<a href="https://blockworks.co/price/btc" target="_blank" rel="noreferrer noopener">BTC</a>) and 5.5% on USDT, with flexible staking periods. 



Options for lending and staking for retail investors in the US have dwindled as <a href="https://blockworks.co/news/sec-crypto-enforcement-actions-accelerate">regulatory pressures increased</a>. US-based exchange Kraken recently <a href="https://www.sec.gov/news/press-release/2023-25">settled with the SEC</a> for $30 million over its staking product.&nbsp;



Coinbase is still offering its Earn product, where users can generate 1.5% APY on USDC and more than 6% on Cosmos, but regulators appear to be cracking down on the service.&nbsp;



The publicly-traded exchange was <a href="https://blockworks.co/news/sec-serves-coinbase-in-latest-alleged-crypto-securities-violation">issued a Wells notice late last month</a> over concerns regulators have with its Earn, wallet and prime brokerage offerings. The SEC has not yet released an enforcement action, which succeeds a Wells notice. 



“We are confident in the legality of our assets and services, and if needed, we welcome a legal process to provide the clarity we have been advocating for and to demonstrate that the SEC simply has not been fair or reasonable when it comes to its engagement on digital assets,” Coinbase <a href="https://www.coinbase.com/blog/we-asked-the-sec-for-reasonable-crypto-rules-for-americans-we-got-legal">said</a> when the notice was issued. “Rest assured, Coinbase products and services continue to operate as usual — today’s news does not require any changes to our current products or services.”



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Bitstamp Rolls Out Crypto Lending in Europe, UAE — US Has to Wait

<div id="highlights-block_62991a364d51a" class="highlights">
 <ul>
 <li>CEO of exchange’s US business says investors are looking beyond the traditional financial ecosystem amid high inflation</li>
 <li>Bitstamp plans to allow users to stake other assets in the coming months</li>
 </ul>
 
</div>



Cryptocurrency exchange Bitstamp has introduced a staking offering for its US retail and institutional customers as investors seek out alternatives amid inflation and low yields.



Through the company’s Bitstamp Earn, users can participate in securing the Ethereum and Algorand networks and earn staking rewards of up to 5% annually. Bitstamp plans to roll out support for staking other assets in the coming months.



Customers can use the ether (ETH) or algorand (ALGO) they already own or buy new assets.&nbsp;



Bobby Zagotta, CEO of Bitstamp’s US business, said record-high inflation is causing a number of Americans to delay retirement, noting more people are starting to look beyond the traditional financial ecosystem. He cited a company survey that found 76% of retail investors are “excited” for crypto writ large to reach the mainstream.



“Staking offers customers a way to make their crypto work hard for them as they diversify and strengthen their portfolios,” Zagotta told Blockworks.&nbsp;



The <a href="https://cms.blockworks.co/80-of-institutions-bullish-on-cryptos-future-survey-finds/" target="_blank" rel="noreferrer noopener">survey</a> found 80% of institutional investors anticipate crypto overtaking traditional financial products within a decade. More than half of retail investors reported thinking that cryptocurrencies will overtake traditional currencies over the same span.&nbsp;



The launch comes ahead of Ethereum’s <a href="https://cms.blockworks.co/shadow-forks-and-testnets-the-ethereum-merge-approaches/" target="_blank" rel="noreferrer noopener">long-anticipated merge</a> from a proof-of-work blockchain to a proof-of-stake network.&nbsp;



The share of ETH in Bitstamp’s assets under management globally has risen 70% since January 2021, according to the company. The crypto exchange also reports a trend of more first-time crypto buyers in the US buying ether, compared to bitcoin.&nbsp;&nbsp;



Of Bitstamp’s users worldwide, the highest staking adoption is among clients between the ages of 45 and 50, who have staked more than 30% of their ETH.&nbsp;



Crypto exchanges have rolled out staking offerings in recent years, including Kraken, which acquired staking platform <a href="https://staked.us/" target="_blank" rel="noreferrer noopener">Staked</a> last December to expand its number of supported networks and enable a non-custodial alternative to the company’s existing custodial staking service.



The average staking yield increased 11% quarter over quarter to 15.4%, according to a report published by Staked in April. Annualized staking rewards hit an all-time high of nearly $15 billion during the first three months of 2022, Staked found, up 57% from the first quarter of 2021.



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Bitstamp Launches Staking Offering For US Customers

<div id="highlights-block_627eaa8f4a75f" class="highlights">
 <ul>
 <li>Blockchain platform Infinite Arcade hires Visa’s former senior director of global marketing</li>
 <li>Bitstamp promotes its Europe chief executive to global CEO</li>
 </ul>
 
</div>



Binance hired Joshua Eaton, a former deputy US attorney in the Northern District of California, as its deputy general counsel.



Before becoming an attorney at the Department of Justice, Eaton was a line prosecutor and senior staff advisor in the US Army. In both roles, he offered counsel on a range of complex operations, investigations, litigation and policies.&nbsp;



Eaton said he became interested in crypto while working at the US attorney’s office, where he realized the importance of preventing bad actors from abusing blockchain technology for personal gain.



He will now lead the largest crypto exchange’s legal affairs group, supporting global compliance, investigations and law enforcement coordination activities.&nbsp;



Binance also revealed its appointment of Jarek Jakubcek as the company’s head of intelligence and investigations for the Asia Pacific region.&nbsp;



Jakubcek previously worked for seven years as a cryptocurrency specialist in Europol Cybercrime Centre’s dark web team. Prior to Europol, he spent about five years at An Garda Siochana, Ireland’s National Police and Security Service.



At Binance, Jarek will work with law enforcement agencies to coordinate the takedown of malicious crypto actors.



The US affiliate of crypto exchange FTX hired Marissa MacDonald to be the chief compliance officer of FTX Trust Company — FTX.US&#8217;s New York division that’s pending regulatory approval.&nbsp;&nbsp;



FTX.US also disclosed it applied for a trust charter with the New York Department of Financial Services to operate in the state.



MacDonald most recently worked as chief compliance officer at Fidelity Digital Assets. She began her career at Ernst &amp; Young.



Metaplex Studios hired former Paxos interim chief marketing officer Julie Mossler as its chief marketing officer to expand the range of projects built on the <a href="https://www.metaplex.com/" target="_blank" rel="noreferrer noopener">Metaplex protocol</a>. 



In less than a year, the Metaplex protocol has been used to mint more than 11 million NFTs, which have generated $2.6 billion in sales, according to the organization.



Before working at crypto company Paxos, Mossler was head of global marketing and brand at Waze and also served as head of global communications at Groupon.



Crypto exchange Bitstamp appointed JB Graftieaux as its new global CEO after he joined the company in May 2021 as its Europe chief executive.



He succeeds Julian Sawyer, who decided to pursue other opportunities, the company said Monday.



Graftieaux previously held executive roles at eBay and PayPal. He was also Bitstamp’s chief compliance officer between 2014 and 2016, helping the company obtain regulatory licenses. &nbsp;



Asia-based digital asset financial services group HashKey Group appointed David Leahy as chief operating officer of the company’s exchange business and WK Chim as senior advisor to the board.



Leahy joins from JPMorgan in Hong Kong, where he was most recently a managing director and head of the Financial Sponsors Group for Asia. He previously worked in senior alternative investments roles at Credit Suisse.



Chim, who will focus on providing independent assessment and advice on the risk frameworks and policies across HashKey, currently serves as independent non-executive director of OCBC Wing Hang Bank and chairs the bank’s risk management committee.



Blockchain platform Infinite Arcade, which is focused on bringing the mobile games industry into the metaverse, appointed Andrew Dubatowka as a core contributor of product marketing.&nbsp;



Dubatowka previously spent four years as a senior director of global marketing at financial services giant Visa and has also worked in senior roles at IPG Mediabrands and AdColony. He has worked with brands and clients such as Intel, Johnson &amp; Johnson, Google, Pandora, Charles Schwab and Wells Fargo.



“The project is all about a firm belief in two things: the benefits that blockchain technology can bring to the games industry; and, through these benefits, that gaming will be the ramp that onboards hundreds of millions of people into web3,” Dubatowka said in a statement.



Canada-based virtual currency brokerage Secure Digital Markets (SDM) said this week Wall Street veteran Alan Mittleman joined the firm on May 2 as chief operating officer.



Mittleman most recently worked at NatWest Markets as its global head of USD fixed income trading. From 2011 to 2015, he was global head of USD rates trading for Société Générale. He held other roles at Bear Stearns, Credit Suisse First Boston and Price Waterhouse.



Zachary Friedman, SDM’s co-founder and former COO, is now the company’s chief strategy officer.



Crypto financial services company EQONEX hired Daniel Ling as chief financial officer and a member of its executive committee.



The move comes as Paul Ewing, the company’s previous CFO, was appointed as chief operating officer (COO) following former COO Andrew Eldon’s resignation to pursue other opportunities.



Ling had recently been appointed to EQONEX’s board of directors as part of the company’s strategic partnership with payments technology company Bifinity, where Ling was director of strategy.&nbsp;



Before Bifinity, he was CFO at Pujiang International Group and also previously worked at Bridgewater Associates, PricewaterhouseCoopers, the Singapore Exchange and ShoreVest Capital.

Latest in Crypto Hiring: Binance, FTX Make Key Additions

<div id="highlights-block_626742f71fddd" class="highlights">
 <ul>
 <li>Increased education leading to increased trust is a positive for crypto’s long-term potential, Bitstamp US CEO says</li>
 <li>Uncertainty over regulation remains the key barrier to crypto investing</li>
 </ul>
 
</div>



Eight out of 10 institutional investors believe that crypto will overtake traditional investment vehicles within a decade, a survey by crypto exchange Bitstamp found.



The company’s Crypto Pulse survey also discovered that 54% of retail investors believe that cryptocurrencies will overtake traditional currencies within 10 years.



“The survey results show that crypto is a long game and we need to be building for the next 50 to 100 million customers,” Bitstamp US CEO Bobby Zagotta told Blockworks. “The industry needs to enable the infrastructure that supports that next wave of investors.”



The survey reflects the opinions of roughly 28,000 respondents — about 5,000 institutional investment strategy decision-makers and 23,000 retail investors — across 23 countries.



It found that crypto is trusted less than property ownership, which is trusted by about 80% of retail investors and institutions. Shares and stocks are deemed trustworthy by about 69% and 77% of retail investors and institutions, respectively.



Still, 67% of retail respondents believe crypto is a trustworthy investment, while 70% of institutional investor respondents said they trust it. Of the latter group, 68% actively recommend crypto in investment strategies.



Decentralized finance (DeFi) investment vehicles, including stablecoins, non-fungible tokens (NFTs) and blockchain networks, have trust ratings of roughly 60% across retail and institutional investors.



“As people learn more about crypto, they tend to trust it more,” Zagotta said. “This is extremely positive when you think about crypto’s long-term potential.”



Individuals and institutions in emerging economies are more likely to trust crypto — with nearly 80% reporting they do, compared to 62% in more developed financial markets.



Regulation remains a barrier to crypto investing, according to respondents. Nearly half of retail investors and more than a third of institutional investors consider crypto to be unregulated.



President Biden <a href="https://cms.blockworks.co/bidens-crypto-executive-order-may-be-watershed-moment-despite-lack-of-specifics/" target="_blank" rel="noreferrer noopener">signed an executive order</a> last month tasking a swathe of government agencies to collaborate on studying responsible regulation of digital assets. 



Zagotta said that certain facets of crypto regulation should be non-negotiable, such as maintaining blockchains’ transparency, prioritizing privacy and remaining independent from third parties.



“Given the executive order and recent legislative activity, the topic is certainly hot in Washington,” he said. “We expect more regulation…in the coming months.”



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80% of Institutions Bullish on Crypto’s Future, Survey Finds

<div id="highlights-block_62347c36f4570" class="highlights">
 <ul>
 <li>A former Federal Reserve Bank of New York employee has joined a lending protocol</li>
 <li>Crypto-focused asset manager Arca went on a hiring spree</li>
 </ul>
 
</div>



The gaming and NFT arm of Ethereum scaling platform Polygon has announced a range of hires from some of the largest Web2 companies.&nbsp;



Polygon Studios hired Michael Blank and Young Ko as its chief operating officer and chief financial officer, respectively. Blank joins after working nearly two decades at game developer and publisher Electronic Arts, while Ko spent the past 9 years as the vice president of finance at Penske Media, which includes brands Rolling Stone and Billboard.



Urvit Goel, who most recently helped Amazon launch its cloud gaming business, joins Polygon Studios as vice president of gaming business development. Charnjit Bansi, who was director of product management at Mythical Games, will be vice president of game design.



Ben Watley is Polygon Studio’s new senior director of strategy for gaming, joining from Electronic Arts. He will work alongside Will Matteson, an ex-NASA software engineer and Riot Games strategist, who joins Polygon Studios as corporate strategy manager.&nbsp;&nbsp;&nbsp;



The new hires join Polygon Studio’s recently appointed CEO, Ryan Wyatt, who previously headed YouTube’s gaming vertical.



Crypto exchange Bitstamp USA has hired Rika Khurdayan as its chief legal officer, Silvia Lacayo as head of marketing and Michael Levi as head of product and strategy.



Khurdayan joins from New York-based blockchain law practice KSTechLaw, which she founded. Lacayo most recently worked as head of marketing for software company Viable and also held top marketing roles at ZipRecruiter, Chainalysis and Unilever.



Levi was a managing director for nearly a decade at Level One Consulting Group, a firm focused on marketing, sales and business development strategy. He was also recently chief marketing officer for blockchain company Kava Labs, according to his LinkedIn page.&nbsp;



Crypto-focused asset manager Arca named Deborah Djeu its chief compliance officer and deputy general counsel to oversee the firm’s registered and private funds. She joins from crypto exchange Okcoin, where she was head of regulatory and chief compliance officer.



Scott Helfman, who was most recently director of public affairs at Citi, is Arca’s new head of communications. Before his decade-long tenure at Citi, he served in several communications roles at Deutsche Bank.&nbsp;



Annelise Osborne, who is now head of institutional for Arca’s innovation arm, Arca Labs, rounds out the company’s new additions. She had worked in the digital asset space as the chief operating officer of Propellr and spent 12 years at Moody&#8217;s Investor Service running commercial real estate teams within the structured finance group. 



CoinDesk named Alan Campbell as president of data and indices. The company’s flagship product, the CoinDesk Bitcoin Price Index (XBX), has been in operation since 2014.



Campbell was previously head of product management at Bloomberg Indices and also formerly managed Bloomberg Terminal functions and special projects for the company’s CEO.



Brandon Neal, who worked at the Federal Reserve Bank of New York for nearly a decade, has joined Euler Finance. He now serves as the lending protocol’s chief operating officer.



Neal was most recently a Treasury auction directorate at the bank and previously handled governance and strategic planning.&nbsp;&nbsp;&nbsp;



In addition to the new hires this week, blockchain infrastructure company announced that it is looking to hire more than 600 new employees following its latest <a href="https://cms.blockworks.co/consensys-plans-to-redesign-metamask-and-hire-600-new-employees/" target="_blank" rel="noreferrer noopener">$450 million fundraising round</a>.



Job postings with titles containing terms such as Bitcoin, Ethereum, blockchain and cryptocurrency grew 395% in the US from 2020 to 2021, according to <a href="https://www.linkedin.com/posts/linkedin-news_theworkshift-economy-labormarket-activity-6887062336839016450-67iT/" target="_blank" rel="noreferrer noopener">a LinkedIn analysis</a>. This outpaced the broader tech industry, which saw a 98% increase in listings during the same time period.



A Blockworks search on Thursday of US LinkedIn-listed jobs featuring the keyword “crypto” yielded 16,862 results.



<hr class="wp-block-separator"/>



Did you know that Blockworks is hiring too? Check out our available roles on our <a href="https://cms.blockworks.co/careers/" target="_blank" rel="noreferrer noopener">Careers page</a>!



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The Latest in Crypto Hiring: Polygon Studios Adds Range of Talent

Jacquelyn Melinek

<div id="highlights-block_612e8f6d2451c" class="highlights">
 <ul>
 <li>“It’s a cyclical business, but it will continue to grow. Each wave creates more interest and adoption,” Zagotta said </li>
 <li>“A week in crypto is like a year in traditional finance because of the rate of innovation,” he said</li>
 </ul>
 
</div>



The cryptocurrency industry has been around about 12 years, since bitcoin’s inception in 2009, but it is still in its early stages for global adoption, Robert “Bobby” Zagotta, the CEO of Bitstamp USA said in an interview with Blockworks.



“About 10 years ago, crypto was literally a cypherpunk outlaw, a ‘below the surface’ community and concept that was viewed with skepticism. Now, major financial institutions are offering it or in the process of offering it so it’s absolutely amazing how the acceptance curve has changed,” he said.&nbsp;



Bitstamp, the longest-running cryptocurrency <a href="https://www.bitstamp.net/" target="_blank" rel="noreferrer noopener">exchange</a>, hit its 10-year anniversary last week. In Q1 of this year, the company’s trading volume increased by 512%, compared to the same quarter-period of last year, it said. Additionally, customer growth is up 197% in the last year, Bitstamp said.&nbsp;



The company <a href="https://cms.blockworks.co/bitstamp-is-giving-crypto-wings-with-us-expansion/" target="_blank" rel="noreferrer noopener">doubled down on its US efforts</a> earlier this year after seeing a three-digit percentage increase in user uptick and interest as retail investors dip their feet in the bull market and digital assets make their way to the balance sheet of many ordinary folk, Blockworks previously reported.&nbsp;



Since opening in the US, Bitstamp has seen 666% growth in institutional investors and 1,934% growth in retail investors, it said.



<h3 class="wp-block-heading">The 2021 wave&nbsp;</h3>



As the market is seeing growth and adoption by institutional investors and major financial players, Zagotta said he still expects there to be continued waves of growth and decline. “It’s a cyclical business, but it will continue to grow. Each wave creates more interest and adoption,” Zagotta said.&nbsp;



The market is currently in it’s “2021 wave,” where hedge funds, banks, brokers and traditional trading companies are investing heavily so they can offer it to their customer bases, Zagotta said. “A week in crypto is like a year in traditional finance because of the rate of innovation,” he said.&nbsp;



With that said, there are some players in the crypto ecosystem who have a “burn it to the ground mentality about traditional financial services,” however Zagotta said he and Bitstamp as a whole believe it’s important to bridge between crypto and traditional financial services.&nbsp;



“I don&#8217;t want to battle traditional financial institutions. I want to help them and help them help us bring this concept to the world,” he said.&nbsp;



From a Bitstamp perspective, cryptocurrencies are an incredibly powerful development that should be available to everyone in the world, Zagotta said.&nbsp;



“It could mean life or death or wealth or lack of wealth,” he said. “We think it’s incredibly powerful and incredibly important and in order for (growth) to happen, well-respected reliable institutions have to participate in a smart way,” he added.&nbsp;



In the near future, the crypto industry will also need to look at regulation and work with it, rather than work around it, Zagotta said.&nbsp;



“If you&#8217;re really interested in adoption of this concept globally you have to work with regulators and help them make smart choices because that’s a necessary condition for widespread adoption,” he said.



Want more investor-focused content on digital assets?&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Join us</a>&nbsp;September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Buy it now</a>.