Morning Crypto Market Digest: Tether Winds Down aUSDT, CME Group Sues CFTC, and Ark Invest Switches Robinhood for Coinbase
While the market was digesting the overnight consolidation, several events occurred that could set the direction for the coming weeks. Let me start with the main one: Tether officially announced the discontinuation of support for the gold-backed stablecoin aUSDT. The decision comes just two years after the launch of the Alloy by Tether platform.
The company explains this by a shift in priorities towards products with higher liquidity — in particular, the XAUT token, which remains their flagship gold-based instrument. aUSDT allowed users to deposit XAUT as collateral and issue a dollar token without selling gold assets. New positions in aUSDT are now unavailable, and the redemption process will last until September 17. This is already the third Tether product to be closed in the past year and a half — CNHT and EURT were previously discontinued. Meanwhile, XAUT's market capitalization stands at a solid $3 billion.
CME Group challenges the CFTC
The operator of the world's largest futures exchange, CME Group, intends to file a lawsuit against the Commodity Futures Trading Commission (CFTC). The reason is the regulator's approval of perpetual futures for the Kalshi platform and its neutral stance on a similar proposal from Coinbase. CME CEO Terrence Duffy calls perpetual contracts a "disaster," comparing the current situation to the pre-crisis environment of 2008. According to him, high leverage and the inexperience of market participants create systemic risks. The lawsuit will be filed on Thursday, and its key argument is that perpetual futures should be classified as swaps under the Dodd-Frank Act.
Ark Invest bets on Coinbase
Cathie Wood's investment company made a major move: it sold Robinhood shares for nearly $29 million and directed $18.4 million to purchase Coinbase securities. The purchase was made through three ETFs managed by Ark. Notably, Coinbase shares ended Wednesday down 2.57%, extending their monthly decline to nearly 13%, while Robinhood, on the contrary, surged 8.78%. After the sale, Robinhood remains the fourth-largest position in the flagship ARKK fund, while Coinbase now ranks eighth.
My comment: Tether's decision to wind down aUSDT is a signal that the company is focusing on the most liquid instruments, which seems reasonable amid the current macroeconomic uncertainty. As for the CME lawsuit against the CFTC, it could set a precedent that either slows down the development of crypto derivatives in the US or, conversely, creates clearer rules of the game. We are following developments closely.