BB DAILY 01-07-2025: Backpack acquires FTX EU for $32.7M, Coinbase appeal halts SEC lawsuit, Trump plans crypto regulatory changes
Backpack Exchange acquires FTX EU for $32.7M, targeting dominance in the EU derivatives market. Coinbase wins an appeal, pausing the SEC’s lawsuit over unregistered operations. Trump administration prepares for a potential crypto policy overhaul, signaling shifts for banks and the industry.
Because Bitcoin
January 7, 2025
Backpack Exchange Acquires FTX EU for $32.7M, Aiming to Dominate EU Crypto Derivatives Market
Backpack Exchange, founded by former Alameda Research and FTX employees, has acquired FTX EU for $32.7 million. The deal includes FTX EU’s MiFID II license, enabling Backpack to become the only regulated perpetual futures provider in Europe. CEO Armani Ferrante plans to launch regulated crypto derivatives by Q1 2025, prioritizing the return of FTX EU customers’ funds. Other competitors, like Coinbase and Bitstamp, have MiFID licenses but do not yet offer perpetual futures in the EU.
CFTC Chair Rostin Behnam to Step Down as Trump Prepares Crypto Policy Overhaul
CFTC Chair Rostin Behnam will resign on January 20, paving the way for President-elect Donald Trump to appoint new leadership with a crypto-friendly focus. Trump is expected to name either Summer Mersinger or Caroline Pham as acting chair, with external candidates like Brian Quintenz also under consideration for the permanent role. Behnam, a Democrat, has served since 2017 and emphasized the need for stronger U.S. crypto regulation during his tenure. The CFTC, which played a key role in crypto lawsuits against FTX and Binance, is poised for a more prominent role in shaping the digital asset landscape under the new administration.
Judge grants Coinbase’s appeal, pausing SEC lawsuit over unregistered operations
A New York district judge, Katherine Polk Failla, approved Coinbase’s request for an interlocutory appeal, pausing the SEC’s lawsuit accusing the exchange of operating as an unregistered entity. The appeal, which raises questions about applying the Howey Test to crypto-assets, now moves to the Second Circuit Court of Appeals. Judge Failla noted the substantial legal debate and conflicting rulings on this issue, calling for higher court insight. Coinbase’s policy chief labeled the decision a setback for the SEC, while the regulator declined to comment.
Trump administration may ease crypto-banking ties but caution remains, says TD Cowen
Investment bank TD Cowen predicts stronger connections between traditional finance and crypto under the Trump administration, though banks may still exercise caution due to compliance and risk concerns. Analyst Jaret Seiberg highlighted that while some banks may embrace crypto opportunities, others might hesitate, and crypto entities wary of oversight could further complicate partnerships.
Seiberg anticipates banks could issue stablecoins or trade crypto assets if new laws emerge, potentially easing restrictions on crypto-backed loans and payment systems. This follows backlash over past crypto-banking restrictions, with documents revealing regulatory pressure to pause certain crypto activities in 2022-2023. Industry leaders hope Trump will address these concerns after taking office in January.
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