Daily Crypto Signals: WBTC Delisting, DAO Liability Ruling, and PYUSD Expansion

The cryptocurrency market saw notable developments today across multiple sectors, including token delistings, decentralized governance, and stablecoin innovations. Here’s a detailed recap of the top stories impacting the blockchain and crypto world.

Coinbase to Delist Wrapped Bitcoin (WBTC)

Coinbase announced it will suspend trading of Wrapped Bitcoin (WBTC) starting December 19, 2024, citing the token’s failure to meet its listing standards. The exchange has already halted market trades, limiting transactions to limit orders only. Withdrawals of WBTC will remain accessible.

WBTC, a Bitcoin tokenization product with over $13 billion in total value locked (TVL) according to DefiLlama, expressed surprise at the decision. Representatives urged Coinbase to reconsider, emphasizing the token’s transparency and compliance.

Meanwhile, Coinbase’s own Bitcoin wrapper, Coinbase Wrapped BTC (cbBTC), has gained traction with $1.4 billion TVL since its September launch. This move could signal Coinbase’s pivot to favoring its proprietary token.

California Judge Holds DAO Members Liable

In a groundbreaking ruling, a California federal judge declared that members of decentralized autonomous organizations (DAOs) could be held liable for the group’s actions under state partnership laws. The decision arose from a lawsuit against Lido DAO, where an investor alleged losses due to unregistered securities.

This judgment highlights growing regulatory scrutiny on DAOs, with legal experts like Miles Jennings of a16z Crypto calling it a significant blow to decentralized governance. The ruling could set a precedent for future cases involving DAO accountability.

Lawmakers Demand Action on Tornado Cash

A group of U.S. lawmakers, including crypto critic Brad Sherman, pressed the Treasury Department for updates on efforts to curb Tornado Cash. Despite sanctions in 2022, the crypto mixer reportedly processed $1.8 billion in deposits in H1 2024, a 45% increase from the previous year.

The lawmakers expressed concern over the resurgence of mixers and urged stronger enforcement, highlighting Tornado Cash’s continued operation via decentralized smart contracts.

PayPal Expands PYUSD Reach via Xoom

PayPal partnered with Xoom to enable cross-border stablecoin payments using PayPal USD (PYUSD). The initiative targets expanding PYUSD access in Asian and African markets, allowing transactions beyond traditional banking hours.

PYUSD, an Ethereum-compatible stablecoin backed 1:1 by U.S. dollars, now facilitates seamless payments through collaborations with platforms like Cebuana Lhuillier and Yellow Card. Despite its innovation, PYUSD trails market leaders USDT and USDC, which command combined market caps of over $165 billion.

Paxos to Expand Stablecoin Presence in Europe

Blockchain infrastructure provider Paxos is set to acquire Finnish EMI Membrane Finance, gaining a license to issue euro-pegged stablecoins across 30 European countries. The move positions Paxos to compete in the regulated European stablecoin market, now governed by the Markets in Crypto-Assets (MiCA) Regulation.

Paxos already issues several dollar-pegged stablecoins and a gold-backed cryptocurrency but lacked a euro-pegged offering. The acquisition aims to bolster its footprint in the growing real-world asset tokenization sector, currently valued at $2.4 billion.

El Salvador Launches Tokenized T-Bills

El Salvador unveiled its first tokenized U.S. Treasury offering, allowing individuals and organizations to invest in T-Bill tokens. Managed by Bitfinex Securities, the product offers access to short-term treasuries backed by BlackRock’s bond ETFs. Investors can subscribe using USDT or Bitcoin, with trading set to commence under the ticker USTBL.

Tokenized assets continue to bridge traditional finance and blockchain, with the market tripling in size over the past year.

Rumble Considers Bitcoin Treasury Strategy

Video-sharing platform Rumble saw its stock rise after CEO Chris Pavlovski teased a potential Bitcoin treasury strategy on social media. The announcement drew a response from MicroStrategy’s Michael Saylor, a vocal advocate for corporate Bitcoin adoption.

This comes as Bitcoin hit a new record high of $94,000, driven by increasing corporate interest and stablecoin liquidity.

Trump Appoints Crypto Advocate as Commerce Secretary

President-elect Donald Trump named Howard Lutnick, CEO of Cantor Fitzgerald, as his Commerce Secretary. Lutnick, a proponent of cryptocurrency, has strong ties to Tether and previously announced a $2 billion Bitcoin financing initiative. His appointment signals potential crypto-friendly policies in the upcoming administration.