The DeFi and crypto world is continually evolving with new developments shaping the future of financial technology. In this article, we highlight the most significant happenings of the past week.
U.S. Senate to Establish New Crypto Subcommittee
The U.S. Senate Banking Committee, led by Senator Tim Scott, is setting up its first cryptocurrency-focused subcommittee. This body will focus on regulating digital assets, such as Bitcoin, financial technologies, and AI in finance. The committee's formation follows 2023 House initiatives and aims to balance consumer protection with innovation while ensuring U.S. competitiveness in the digital economy.
Backpack Exchange Acquires FTX EU
Backpack Exchange has acquired FTX EU, the European branch of the collapsed FTX Exchange, approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC). This acquisition positions Backpack to dominate Europe's regulated crypto trading market, filling the gap left by unregulated offshore exchanges. The new Backpack EU plans to offer perpetual futures and crypto derivatives, serving an underserved market.
Strive Aims to Launch Bitcoin Bond ETF
Strive Asset Management, co-founded by Vivek Ramaswamy, has filed with the U.S. Securities and Exchange Commission (SEC) to launch the Strive Bitcoin Bond ETF. The actively managed fund will invest in bonds issued by companies intending to use proceeds for Bitcoin purchases, as well as derivatives like swaps and options for indirect Bitcoin exposure. Once approved, the ETF will list on the New York Stock Exchange (NYSE) and comply with U.S. regulatory standards.
These events illustrate how the DeFi sector continues to adapt and expand despite regulatory challenges and market volatility. These initiatives underscore the progress in digital asset regulation and the ambition of companies to integrate innovative financial solutions into traditional markets.
