BitOoda Regulatory Analysis, 5/4/2020: Recent regulatory developments reinforce ongoing market trends

Given the breadth of products and services we at BitOoda offer our clients, we continually monitor the full range of activity across the crypto space. Among notable regulatory developments we noted in the past few weeks were:

· Telegram’s decision to delay the launch of its TON blockchain until April 2021 after a U.S. judge granted an SEC-requested injunction to block the launch and the issuance of the gram tokens.

· Dual filings by the SEC and Kik opposing each other’s motions for summary judgment in the ongoing legal battle over whether the Kin token offering violated securities laws.

· SEC’s decision to delay a decision on tZERO’s proposed security token exchange, questioning whether the proposed exchange was fully compliant with securities laws.

· CFTC’s approval for Bitnomial to operate as a Designated Contract Market (DCM), allowing it to offer bitcoin futures and options contracts.

· CFTC commissioner Brian Quintenz’s announcement that he will not seek re-nomination for his term, which removes a strong crypto advocate from the country’s regulatory leadership.

We offer this summary first to keep our readers up to date on the latest U.S. regulatory happenings, and second to assess the implications of these developments on BitOoda’s market thesis and strategies. Two of our core arguments are that the derivatives space will continue to show significant growth in the U.S. market, and that the digital asset ecosystem will increasingly be centered around regulated firms.

· We continue to see the derivatives market as the key growth area for digital assets, given the SEC’s conservative approach and its continued legal action against firms who use private token sales to fund public blockchain projects, combined with CFTC’s principles-based regulation and regular approvals of new market platforms, products, and participants.

· Likewise, we continue to see indications that the market is migrating toward regulated platforms, which will allow BitOoda to increasingly leverage our industry-leading regulatory stack to offer clients a fully-compliant suite of products and risk-management strategies.

· Our leadership role in ADAM not only expands the breadth of our relationships across different sectors of the digital economy, but also reflects Commissioner Quintenz’s call for a self-regulatory structure for crypto.

Please reach out to us to discuss these or other BitOoda market assessments, to explore how to navigate the digital asset space in a compliant manner, and to tap into our products and risk management strategies during these challenging times for capital markets.



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A boutique digital asset investment bank focused on providing innovative and compliant capital markets solutions for institutional clients.