Scenius Sync (Issue #128)

Good Riddance Gensler, Hello Bessent & Lutnick, Pump.fun Livestream Backlash, Avalanche9000 Upgrade Launches With $40M Rewards for Builders, Wen SOL ETF? & No ETH No Problem

Scenius: The intelligence and the intuition of a whole cultural scene. The communal form of the concept of genius.

Welcome to The Scenius Sync.

Our mission with this concise publication is twofold:

1. Share the essential stories driving the crypto industry and markets.

2. Highlight innovative applications and mainstream adoption of crypto and blockchain technology.

If you find this newsletter valuable, please subscribe and share The Scenius Sync with your network 💪

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Essential News 🗞

1. SEC Chair Gary Gensler to step down as Trump signals pro-crypto agenda

   • Gary Gensler plans to leave on January 20, 2025, according to a statement released by the agency on Thursday. During his time at the SEC, Gensler led efforts to push for central clearing in Treasury markets, implemented changes on executive pay versus performance and forged on with work to shield investors in crypto markets.  Gensler has maintained that most cryptocurrencies qualify as securities and urged crypto firms to register with the SEC. Some in the crypto industry have fought back, saying that it's impossible to register with the agency, partly because rules were made for more traditional entities that are different from the digital asset industry. Gensler's announcement to depart comes after President-elect Donald Trump pledged to fire Gensler if elected. Trump's term as president starts on Jan. 20. 

   • Relatedly: SEC Commissioner Lizárraga to Leave as Trump, GOP Take Over,

     • SEC Commissioner Jaime Lizárraga intends to step down on Jan. 17, leaving just one Democrat on the commission when President-elect Donald Trump returns to office.

2. Trump Picks Pro-Crypto Hedge Fund Manager Scott Bessent for Treasury Secretary

   • U.S. President-elect Donald Trump named hedge fund manager Scott Bessent, a cryptocurrency enthusiast, as his pick for Treasury Secretary.

     If the Senate confirms him, the next person whose signature adorns U.S. paper currency will be a fan of the digital currency ecosystem set up to replace the conventional financial system. Bessent runs Key Square Group, a macro investing firm. He worked for prominent investor George Soros three decades ago and was, according to The Wall Street Journal, "one of the driving forces" behind Soros Fund Management's famous bet — that netted a more than $1 billion profit — that the British pound would collapse.

     Bitcoin and crypto as a whole are now in his sights. "I have been excited about [Trump's] embrace of crypto and I think it fits very well with the Republican Party, the ethos of it. Crypto is about freedom and the crypto economy is here to stay," he said in an interview with Fox Business in July. "Crypto is bringing in young people, people who have not participated in markets."

3. Trump picks Wall St CEO Lutnick to run Commerce, oversee USTR, tariffs

   • U.S. President-elect Donald Trump said on Tuesday he will nominate Wall Street CEO Howard Lutnick to lead his trade and tariff strategy as head of the Commerce Department, the agency that has become the U.S. weapon of choice against China's tech sector. Lutnick, the head of brokerage firm Cantor Fitzgerald, will also have "additional direct responsibility" for the U.S. Trade Representative's office, Trump said in a statement.

   • In related news: Cantor Fitzgerald acquires 5% stake in Tether for up to $600M: Report and Cantor also Plans $2 Billion Bitcoin Lending Program via Tether

4. Pump.fun faces backlash over harmful content on livestream feature

   • Pump.fun, a decentralized platform for creating Solana-based memecoins, is under fire after users allegedly broadcast harmful and violent acts through its livestream feature. The platform has faced criticism from crypto community members calling for stricter moderation or the shutdown of the livestream feature.

   • Update: the platform has disabled its live streaming feature. See here.

5. FTX plans to start reimbursing users by March 2025 as restructuring wraps up

   • The FTX estate has announced it will begin reimbursing users by March. According to a statement on Thursday, the firm expects its bankruptcy and reorganization efforts will likely wrap up early next year, “paving the way for FTX to begin creditor and customer distributions.”  By the end of December, FTX plans to make arrangements with its “specialized distribution agents” to send the funds and be in a position to announce the “exact effective date.” FTX said that in order to be eligible to receive recoveries, customers must create an approved account with a distribution agent, complete KYC verification and submit required tax forms before the initial distribution date.

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Innovation & Adoption 💡📈

1. SEC is 'engaging' Solana ETF applicants: report

   • SEC “engaging” on Solana ETF applications, sparking optimism for potential approval in 2025. VanEck, 21Shares, and Bitwise lead Solana ETF filings amid pro-crypto White House hopes. SOL token rises 4.6% to $247.91, bolstered by Solana’s strong DeFi ecosystem and demand.

2. Avalanche9000 launches on testnet, over $40 million offered in retroactive rewards

   • The team behind the Layer 1 blockchain network Avalanche launched its major upgrade on testnet Monday.  "Avalanche9000," as the upgrade is called, includes numerous technical improvements that aim to reduce the cost of chain deployment by 99.9%, according to a press release. Such improvements include the community proposals ACP-77, which makes Avalanche Layer 1 validators more flexible, and ACP-125, which seeks to reduce Avalanche's base fees by 96%.  Alongside the upgrade is Retro9000, a grant program of $40 million to reward builders developing Layer 1 blockchains and other tools on the Avalanche9000 testnet, the release said. 

3. No ETH, No Problem: How MetaMask Is Enabling Swaps Without ETH for Fees

   • MetaMask is making crypto swaps more convenient. Recently, the wallet unveiled a new feature called Gas Station to allow users to carry out swaps without having the gas fee-denominated token, starting with the Ethereum network.

   • See the company’s announcement on X here.

4. Ripple announces tokenized money market fund launching on XRP Ledger

   • Ripple said Monday that a tokenized money market fund has launched on the XRP Ledger. The launch was made possible through a partnership with Archax, Ripple said in a press release. "Archax, the first FCA regulated digital asset exchange, broker and custodian, has provided access to a money market fund from UK asset manager abrdn in tokenized form on the XRP Ledger," according to the statement. "The fund comprises part of abrdn’s £3.8 billion US dollar Liquidity Fund (Lux) fund and represents the first tokenized money market fund on the XRPL," Ripple added.

   • In related news: WisdomTree registers XRP ETF entity in Delaware

5. Allianz, Germany’s biggest insurer, buys 24% of MicroStrategy’s $2.6B notes

   • Germany’s largest insurance company, Allianz, has reportedly purchased nearly a quarter of MicroStrategy’s $2.6 billion convertible note offering, signaling increasing institutional interest in Bitcoin. Allianz — the second-largest insurance provider in Europe — has acquired 24.75% of MicroStrategy’s $2.6 billion note sale for institutional investors, which closed on Nov. 21.  The insurance giant made the investment across four different sub-organizations, according to Bloomberg Terminal data viewed by Cointelegraph.

   • Meanwhile: MicroStrategy has acquired 55,500 additional BTC for ~$5.4 billion at ~$97,862