A key committee in the U.S. House of Representatives has given the green light to a bill that aims to provide clearer rules for the cryptocurrency industry. The Republican-led bill got through the House Financial Services Committee with a 35-15 vote.

Cryptocurrency investment products focused on three major altcoins – Stellar (XLM), XRP, and Solana (SOL ) – all saw major inflows this month, which led to significant rises in their assets under management (AUM), even though the main surge in assets under management came from Bitcoin (BTC) products.

Leading cryptocurrency exchange Binance has retracted its bid for a crypto license in Germany following reports that the country's financial regulator, BaFin, declined the exchange's application for a crypto custody license.

Top stories in the Crypto Roundup today:

• House Committee Approves Crypto Bill to Clarify SEC Role
• Stellar, Solana, and XRP Investment Funds See AUM Surge
• Binance Drops Crypto License Bid in Germany
• U.S. Retains its Position as Leading Country by Digital Asset AUM

House Committee Approves Crypto Bill to Clarify SEC Role

A key committee in the U.S. House of Representatives has given the green light to a bill that aims to provide clearer rules for the cryptocurrency industry. The Republican-led bill got through the House Financial Services Committee with a 35-15 vote.

The bill will next be considered by the House Agriculture Committee, which will weigh allocating an additional $120 million and new powers to the Commodity Futures Trading Commission in a bid to help it oversee the crypto industry.

Republicans have warned that without clear rules, cryptocurrency companies might move their operations overseas. But even if the full House supports the bill, it might struggle to get approval in the Democrat-led Senate, where there is more skepticism about the crypto industry.

The proposed bill would create a clear framework for crypto regulation in the US. It would define when crypto firms need to register with the SEC or the CFTC, and how they can prove that their tokens are not securities, while requiring both agencies to work together and create studies on emerging topics like non-fungible tokens (NFTs) and decentralized finance (DeFi).

Moreover, the legislation incorporates specific terms that indicate a digital asset isn't classified as a security solely due to its sale as part of an investment agreement, seemingly in alignment with a recent ruling by a federal judge on XRP not being a security.

There has been pushback against the bill, with SEC Chair Gary Gensler arguing existing laws are sufficient and that crypto firms are choosing not to follow them. Certain Democrats on the House Financial Services Committee have echoed this view, arguing that the bill could allow crypto to bypass existing securities laws.

Stellar, Solana, and XRP Investment Funds See AUM Surge

Cryptocurrency investment products focused on three major altcoins – Stellar (XLM), XRP, and Solana (SOL ) – all saw major inflows this month, which led to significant rises in their assets under management (AUM), even though the main surge in assets under management came from Bitcoin (BTC) products.

CCData’s latest Digital Asset Management Review report details that the positive performance of these products helped the total AUM experience a minor increase of 11.4% to $33.7 billion, marking the second consecutive month of growth.

Investment funds offering exposure to XLM experienced a striking 62.7% upswing, amassing $17.3 million in AUM, with the leap largely being driven by a notable rise in Grayscale’s XLM product, which reported a premium surpassing 330%.

Similarly, products centered on XRP and SOL showcased solid growth, buoyed by the recent SEC lawsuit verdict where the judge ruled that XRP doesn't necessarily qualify as a security.

Assets under management for XRP-centric products grew by 33.2%, accumulating to $65.7 million. Likewise, SOL-focused products rose by 55.7%, resulting in an AUM totaling $87.8 million.

Binance Drops Crypto License Bid in Germany

Leading cryptocurrency exchange Binance has retracted its bid for a crypto license in Germany following reports that the country's financial regulator, BaFin, declined the exchange's application for a crypto custody license.

Last month, headlines revealed Germany’s financial watchdog BaFin had rejected Binance's request for a crypto custody license, with Binance at the time pledging their commitment to engage with regulators and persist in dialogues with German officials

Binance has had a string of recent setbacks with European regulators. It has rescinded license applications in Austria, the Netherlands, and Cyprus, and last month it severed ties with its European banking ally, PaySafe.

The exchange is also under the scrutiny of French authorities, accused of “acts of aggravated money laundering.” Outside of Europe, Australian authorities have imposed restrictions on its operation of a derivatives exchange, and it has terminated operations in Canada.

Notably, the cryptocurrency exchange is set to soon launch operations in Japan.

U.S. Retains its Position as Leading Country by Digital Asset AUM

The United States continues to hold sway in the domain of digital asset product assets under management (AUM). A resurgence of interest in U.S. investment products, coupled with recent ETF filings, has helped ease concerns about regulatory scrutiny that had been shaking up the market in prior months.

The country remains a significant player in the digital asset realm, boasting a monthly AUM of $26.3 billion in July and claiming 78.0% of the market share. However, with Grayscale removed from the equation, Europe emerges as the leader in terms of AUM.

Specifically, countries like Sweden, Switzerland, and Germany stand out with a total of $3.90 billion in AUM in July, accounting for 11.5% of the total AUM.

Dig deeper into the world of cryptocurrency trading with CCData’s latest Exchange Review report.

State of the Crypto by Top Tier Exchange Volume

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