Today in crypto, exchange Gate has launched spot trading services in the United States; Andreessen Horowitz urged US senators to revise a draft crypto bill in open letter, and public companies buying crypto have committed to spending $8 billion in just the past week.
Crypto exchange Gate launches spot trading services in the US
Crypto exchange Gate is launching in the United States, offering spot trading services to US customers for the first time. Founded in 2013 by Chinese scientist Lin Han, the company cited improved regulatory clarity in the country as the reason behind the move.
According to Gate, it will initially offer crypto trading pairs for US customers, with upcoming services for fiat on- and off-ramps and support for custodial wallets. As of July 24, the exchange offered over 3,800 trading pairs on its platform, one of the largest asset varieties in the market.
Spot trading volume on Gate reached $6.8 billion in the past 24-hours, according to CoinMarketCap.
The move comes as crypto exchanges are reentering the United States amid increased regulatory clarity.
Andreessen Horowitz warns of loopholes in draft US crypto rules
Venture capital firm Andreessen Horowitz (a16z) called on US lawmakers to revise a draft crypto regulation bill, warning that the proposed framework could open dangerous loopholes and undermine investor protections.
In a Thursday open letter to the US Senate Banking Committee, the investment firm urged regulators to close loopholes in the draft crypto legislation. The letter was a response to the discussion draft released in late July.
The discussion draft in question builds on the 21st Century Financial Innovation and Technology Act (CLARITY Act) and seeks industry input on the ongoing crypto regulation. A16z points to the definition of ancillary assets, referring to tokens sold with an investment contract that give buyers no equity, dividend or governance rights.
“The ancillary asset construct should not serve as the foundation for legislation without significant modifications,” the letter said.
A16z said the current approach fails to resolve core issues facing crypto markets and would be incompatible with the Howey test, the long-standing legal benchmark for defining securities.
Crypto treasury firms plan $8 billion buying blitz
Crypto treasury firms have begun moves to buy over $7.8 billion worth of crypto this week, with altcoins emerging as a popular bet.
Cointelegraph analyzed 16 company statements since Monday, which either announced a plan to buy or raise money for crypto, with at least five having bought or promising to buy over $3 billion worth of Ether (ETH) — the hottest target of the week.
Some of the notable moves since Monday saw Tron Inc. — linked to Justin Sun’s Tron blockchain — say it wants to raise $1 billion to buy the blockchain’s token, Tron (TRX), while YZi Labs, linked to Binance co-founder Changpeng Zhao, helped launch a BNB (BNB) buying firm with a $500 million deal.
Bitcoin (BTC) still saw the largest total buys, with Strategy leading the way by scooping up around $2.5 billion worth using the proceeds from its fourth preferred stock, STRC.
Galaxy Research analyst Will Owens wrote in a report, however, that the business model isn’t without its risks and the sector “is becoming increasingly crowded.” He added that crypto treasury companies “can become structurally fragile” if hundreds of firms make “ the same one-directional trade.”
