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Samsung Pay integrates crypto payment option through Alchemy Pay partnership
Alchemy Pay has expanded its crypto payment services by integrating its virtual card with Samsung Pay, allowing users to make crypto payments both in-store and online at supported retailers. This follows the platform's recent integration with Google Pay. Alchemy Pay, which serves over one million registered users, expects increased demand from the partnership. Samsung Pay users can now use Alchemy Pay’s virtual card for payments on platforms like Amazon, Netflix, and the Apple Store. Alchemy Pay plans further integrations with major card networks like Visa and Mastercard.
Crypto.com files lawsuit against SEC following receipt of Wells notice
Crypto.com has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) after receiving a Wells notice, which signals the agency's intent to pursue an enforcement action. The crypto trading platform claims the SEC has overstepped its jurisdiction, particularly in asserting that most cryptocurrencies are securities. Crypto.com argues that the SEC's actions forced them to sue, citing an "unauthorized and unjust regulation by enforcement" approach. The company seeks a court ruling to confirm that certain network tokens on its platform, such as SOL and ADA, are not securities, and to establish that it is not operating as an unregistered broker-dealer or clearing agency. Crypto.com also filed a petition requesting the SEC and CFTC clarify jurisdiction over specific cryptocurrency derivatives. This lawsuit follows similar actions by other crypto firms like Coinbase, which have also pushed back against the SEC's regulatory stance.
South Korea to introduce regulations for cross-border stablecoin transactions
South Korea's Financial Services Commission (FSC) plans to implement foreign exchange regulations for cross-border stablecoin transactions, focusing on dollar-pegged stablecoins. The move aims to ensure the soundness of these transactions, which are increasingly used for global transfers. The FSC will consult with international regulators, including those from Japan and the EU, as part of the second phase of its Virtual Asset User Protection Act. The regulations will begin with the issuance of stablecoins pegged to South Korea’s won and later extend to foreign currency stablecoins. South Korea has already strengthened crypto regulations through the Virtual Asset Protection Act, which mandates strict asset security measures for virtual asset service providers and imposes severe penalties for violations.
Trading Desk Insights
Bitcoin retraced by 4% from Monday’s peak, mirroring an initial downturn in equities, which have since rebounded, leaving cryptocurrencies hovering near their low. Unlike the equity markets, the rising dollar index and 10-year treasury yields signal potential headwinds for risk assets, pointing to possible pressure on the horizon. In the options arena, short-term Bitcoin calls lean bullish, reflecting optimism in the run-up to the U.S. election. In contrast, the S&P 500 options exhibit a preference for puts, indicating a hedging against declines. This divergence between Bitcoin and the S&P 500 sets the stage for heightened volatility, suggesting a potential decoupling or mispricing between these markets. Bitcoin’s year-to-date return to volatility ratio lags at under 2%, a stark contrast to gold’s superior risk-adjusted return of about 3%, rendering direct speculative positions less attractive and possibly explaining the rising popularity of Bitcoin arbitrage strategies among traditional financial institutions.
In regulatory developments, Crypto.com faces potential charges as signaled by a Wells Notice from the SEC, typically a precursor to formal enforcement actions.
In the mining sector, share prices continue to lag, with no premium attached by investors despite September’s underperformance. However, companies like Core Scientific, TerraWulf, and IREN, which are pivoting towards AI and high-performance computing, managed to outperform Bitcoin last month.
In restructuring news, a bankruptcy court has greenlit FTX’s reorganization plan nearly two years post-collapse. The firm has secured assets worth between $14.7 billion and $16.5 billion, aiming to return up to 119% to 98% of its creditors.
Turning to crypto ETFs, the sector saw a significant $235.2 million inflow, primarily into vehicles managed by Blackrock and Fidelity, while Ethereum ETFs reported no new movements.
In broader financial markets, stock futures have seen a mild recovery following a dip, buoyed by a slight easing in oil prices and bond yields early Tuesday. Despite a strong jobs report bolstering last week’s rally, market sentiment has tempered with growing geopolitical tensions and concerns that the Federal Reserve might maintain a firmer stance on rate cuts due to the robust labor market. The S&P 500 has dipped over 1.1% in October after a 2% rise in September, with crude oil prices retracting by 2% Tuesday amid a wait-and-see approach to the Middle East conflict.
Crypto Charts
Disclaimer
This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
The information on which the analysis is based has been obtained from sources believed to be reliable such as, for example, the company’s financial statements filed with a regulator, company website, company white paper, pitchbook and any other sources. While Secure Digital Markets has obtained data, statistics, and information from sources it believes to be reliable, it does not perform an audit or seek independent verification of any of the data, statistics, and information it receives.
Unless otherwise provided in a separate agreement, Secure Digital Markets does not represent that the report contents meet all of the presentation and/or disclosure standards applicable in the jurisdiction the recipient is located. Secure Digital Markets and their officers, directors and employees shall not be responsible or liable for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses, or opinions within the report.
Crypto and/or digital currencies involve substantial risk, are speculative in nature and may not perform as expected. Many digital currency platforms are not subject to regulatory supervision, unlike regulated exchanges. Some platforms may commingle customer assets in shared accounts and provide inadequate custody, which may affect whether or how investors can withdraw their currency and/or subject them to money laundering. Digital currencies may be vulnerable to hacks and cyber fraud as well as significant volatility and price swings.
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