The U.S. Securities and Exchange Commission (SEC) may have thrown a wrench in FTX’s bankruptcy plan as it signaled its intention to challenge any distributions involving digital assets to creditors.

The Qatar Financial Centre (QFC) and the Qatar Financial Centre Regulatory Authority (QFCRA) have unveiled a new regulatory framework designed with the help of an advisory group of 37 domestic and international organizations.

The non-fungible token (NFT) market experienced a further decline in August, with monthly sales volumes dropping to a low of $374 million. This is the first time in the year that monthly NFT sales have dropped below the $400 million mark.

Top stories in the Crypto Roundup today:

• SEC Challenges FTX Bankruptcy Plan Over Stablecoin Distributions
• Qatar Financial Centre Unveils New Digital Asset Framework
• NFT Sales Hit 2024 Low in August, Marking a 76% Decline from March Peak
• EURC Demand Surges Following MiCA Regulations

 

SEC Challenges FTX Bankruptcy Plan Over Stablecoin Distributions

The U.S. Securities and Exchange Commission (SEC) may have thrown a wrench in FTX’s bankruptcy plan as it signaled its intention to challenge any distributions involving digital assets to creditors.

The SEC's opposition comes in response to a proposed plan by the FTX bankruptcy estate that would see 98% of creditors receive 118% of their claims in cash within 60 days of court approval.

However, the SEC has taken issue with the estate's definition of "cash," which includes U.S. dollar-pegged stablecoins. In an earlier filing, FTX defined cash as “the legal tender of the United States of America or the equivalents thereof,” including stablecoins pegged to the greenback, bank deposits, checks, and “other similar items.”

In its filing, the SEC said it is not “opining as to the legality, under the federal securities laws, of the transactions outlined in the Plan and reserves its rights to challenge transactions involving crypto assets.”

The SEC also noted that “the debtors have not identified the distribution agent, which may potentially distribute stablecoins to creditors under the Plan."

Qatar Financial Centre Unveils New Digital Asset Framework

The Qatar Financial Centre (QFC) and the Qatar Financial Centre Regulatory Authority (QFCRA) have unveiled a new regulatory framework designed with the help of an advisory group of 37 domestic and international organizations.

The framework, developed in collaboration with industry stakeholders, aims to establish Qatar as a global hub for digital innovation and outlines rules for governing tokenization processes, property rights, custody arrangements, transfer and exchange, and smart contracts.

The QFC is a free economic zone within the United Arab Emirates, allowing it to operate independently from the mainland. It has its own legal, regulatory, and tax framework and allows up to 100% foreign ownership and repatriation of profits.

NFT Sales Hit 2024 Low in August, Marking a 76% Decline from March Peak

The non-fungible token (NFT) market experienced a further decline in August, with monthly sales volumes dropping to a low of $374 million. This is the first time in the year that monthly NFT sales have dropped below the $400 million mark.

Data from NFT tracker CryptoSlam reveals the significant downturn in the digital collectibles market, with August's sales volume representing a 76% decrease from the highest monthly record of $1.6 billion achieved in March 2024.

The downward trend began in April, with sales plummeting to $1.2 billion. While there was a brief surge in the last week of August, the overall trajectory has been one of consistent decline.

Despite a drop in monthly sales volumes, July witnessed an 87% increase in NFT transactions. However, this momentum failed to carry over into August, with transaction numbers falling by 31% while the average value of NFT sales rose 27% last month.

EURC Demand Surges Followings MiCA Regulations

The market capitalization of the Euro-backed stablecoin Euro Coin (EURC) has surged by 71.3% to $53.7 million last month to its highest market capitalization since October 2022.

Its rise came amid growing demand following the implementation of MiCA regulations, with monthly trading volumes for EURC trading pairs rising for the third consecutive month in August to see $36.7 million in volume.

Dig deeper into the stablecoin sector through CCData’s latest Stablecoins & CBDCs report.

State of the Crypto by Top Tier Exchange Volume

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