Cryptocurrency exchange Coinbase has formally responded to allegations made by Massachusetts Senator Elizabeth Warren, denying claims that it has been using former government officials to obstruct the development of digital asset regulations. In a letter dated December 22, Coinbase's Chief Policy Officer, Faryar Shirzad, firmly rejected these accusations.

Hashdex, which is a Brazil-based crypto asset manager founded in 2018, has three primary products: the Hashdex Nasdaq Crypto Index Europe ETP (HASH), Hashdex Crypto Momentum Factor ETP (HAMO), and Hashdex Bitcoin Futures ETF (DEFI).

Hong Kong has recently shown an increased openness to crypto. This shift positions the city as a potential early adopter of spot bitcoin exchange-traded funds (ETFs) in Asia, especially if the U.S. moves forward with similar approvals, as per industry experts.

Top stories in the Crypto Roundup today:

• Coinbase Refutes Senator Elizabeth Warren's Allegations on Impeding Crypto Regulations
• Hashdex Names BitGo as Custodian in Bid for SEC Approval of Spot Bitcoin ETF
• Crypto Industry Experts Speculate on Hong Kong's Future Stance Towards Spot Bitcoin ETFs

Coinbase Refutes Senator Elizabeth Warren's Allegations on Impeding Crypto Regulations

Cryptocurrency exchange Coinbase has formally responded to allegations made by Massachusetts Senator Elizabeth Warren, denying claims that it has been using former government officials to obstruct the development of digital asset regulations. In a letter dated December 22, Coinbase's Chief Policy Officer, Faryar Shirzad, firmly rejected these accusations.

Shirzad conveyed that Senator Warren's assertions about Coinbase's efforts to undermine bipartisan cryptocurrency legislation were incorrect and misrepresented the company's true intentions and actions. He stressed that such accusations were baseless and did not reflect Coinbase's actual commitment to the crypto industry.

Additionally, Shirzad explained that hiring former government officials is part of Coinbase's wider strategy to ensure the safety and well-being of cryptocurrency users in the United States. He expressed pride in the team of national security experts at Coinbase, who are dedicated to protecting American citizens.

Senator Warren's letter had suggested that many government officials might be using their public service roles to position themselves for future opportunities in digital asset lobbying, citing Coinbase’s Global Advisory Council as an example. She criticized this practice as an abuse of the revolving door, accusing the crypto industry of spending millions to gain legitimacy while resisting regulations aimed at preventing the use of cryptocurrencies for terror financing.

This exchange between Coinbase and Senator Warren comes in the wake of recent news that Coinbase has expanded its Global Advisory Council, adding four national security experts.

Hashdex Names BitGo as Custodian in Bid for SEC Approval of Spot Bitcoin ETF

Hashdex, which is a Brazil-based crypto asset manager founded in 2018, has three primary products: the Hashdex Nasdaq Crypto Index Europe ETP (HASH), Hashdex Crypto Momentum Factor ETP (HAMO), and Hashdex Bitcoin Futures ETF (DEFI).

In a strategic move, Hashdex is now aiming to transform its U.S.-approved Bitcoin futures ETF into a spot Bitcoin ETF. This ambition was underscored last Friday when Hashdex revised its application to designate BitGo as the crypto custodian. This decision sets Hashdex apart in a crowded field of over a dozen applicants, most of whom have partnered with prominent crypto exchanges like Coinbase for custody solutions. In contrast, firms like Fidelity are opting for self-custody, while VanEck has chosen Gemini.

This update from Hashdex followed a day after the U.S. Securities and Exchange Commission (SEC) engaged with representatives from several other firms seeking ETF approvals, including BlackRock, Valkyrie, Fidelity, Grayscale, and ARK Invest. These interactions, along with recent amendments to various ETF applications, have sparked optimism about the imminent approval of a spot bitcoin ETF. The amendments, which include plans to issue ETFs with cash creation rather than in-kind, suggest that the SEC might be warming up to the idea of approving such products.

Hashdex's choice of BitGo as a custodian is a notable divergence from the norm, potentially signaling a strategic effort to align with the SEC's regulatory framework and increase its chances of approval for a spot Bitcoin ETF.

Crypto Industry Experts Speculate on Hong Kong's Future Stance Towards Spot Bitcoin ETFs

Hong Kong has recently shown an increased openness to crypto. This shift positions the city as a potential early adopter of spot bitcoin exchange-traded funds (ETFs) in Asia, especially if the U.S. moves forward with similar approvals, as per industry experts.

Yat Siu, chairman of web3 investor Animoca Brands, in a discussion with The Block, emphasized Hong Kong’s Securities and Futures Commission's (SFC) positive approach towards digital assets. He noted that the SFC's recent statements about widening access to digital assets could set the stage for the introduction of spot bitcoin ETFs in Hong Kong. The U.S. is gradually progressing towards the approval of its first spot bitcoin ETF; Siu anticipates that Hong Kong might follow the U.S.'s lead.

Contrasting with mainland China's stringent stance on cryptocurrency, Hong Kong has been more welcoming to crypto firms this year. In October 2022, Hong Kong authorities released policy statements to reinforce its status as a global financial hub, including the initiation of a crypto licensing regime in June, allowing licensed exchanges to offer retail trading services.

Julia Leung, CEO of Hong Kong’s SFC, mentioned in November that the regulator is considering spot crypto ETFs, indicating a readiness to embrace innovative financial technologies. Hong Kong has already listed several futures-based crypto ETFs, signaling its growing involvement in the crypto space.

Glenn Woo, Head of Sales of APAC at Blockdaemon, shared his optimism in an interview with The Block earlier this month. Woo, with his extensive experience in Hong Kong's traditional financial sector, expressed that there is a noticeable appetite for such financial products. He indicated uncertainty about the exact timeline for their launch, suggesting it could be either the next year or the year after. However, he was confident that this interest would increase following the U.S.'s approval of spot Bitcoin ETFs.

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