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Tornado Cash co-founder guilty of unlicensed money transmission, signaling regulatory pressure.
Tokenized stocks surged 220% in July, showing strong investor demand for blockchain assets.
Ethereum treasury firms rise as investable assets, offering staking rewards and DeFi access.
The crypto market today has experienced major events like the guilty verdict against Tornado Cash co-founder Roman Storm and the astounding volume growth of tokenized stocks. Meanwhile, the rising interest in Ethereum treasury companies as viable investments. These events are changing the cryptocurrency environment and providing new information on legal issues and market trends.
Roman Storm, the co-founder of Tornado Cash, was found guilty of one charge following a jury deadlock. A Manhattan jury found Storm guilty of conspiracy to provide an illegal money transmission service, which carries a maximum sentence of up to five years. The case focused on Storm's participation in Tornado Cash, a cryptocurrency mixer that facilitates anonymous transactions.
While Storm was acquitted of two other charges—conspiracy to commit money laundering and conspiracy to violate North Korean sanctions—the jury's inability to reach a unanimous decision on those charges resulted in a partial victory for the defendant. The case has attracted interest as it may have impacts on the rest of the cryptocurrency ecosystem as regulators crack down on privacy-focused products such as Tornado Cash.
In addition, Storm, who had pleaded not guilty on all charges, was indicted in August 2023. The defense and the prosecution both contributed during the trial, where the testimony of experts such as Ethereum core developer Preston Van Loon was of key importance. The defense claimed that Storm could not be held accountable for the actions of Tornado Cash users and could not be punished based on their criminal actions. Nevertheless, one of the charges was found to be proved with references to these defenses.
Also Read: Bitcoin News Today: Bitcoin's Market Cap Surges to $2.4 Trillion, Rivals World's Largest Assets
The real-world asset (RWA) tokenization industry, of which tokenized stocks represent a segment, experienced a dramatic 220% increase in July. By the close of the month, the value of tokenized stocks stood at a market capitalization of $370 million. This increase reflects that of the initial decentralized finance (DeFi) bubble, where value locked (TVL) grew exponentially between 2020 and 2021.
The first company to issue tokenized stocks on Securitize is Exodus Movement (EXOD), which contributed $260 million to the total market cap. Regardless of this, tokenized equities were not restricted to Exodus, and the industry generally experienced wider growth, with investor demand growing dramatically. In July alone, blockchain addresses holding tokenized stocks surged from 1,600 to over 90,000, indicating growing demand for blockchain-based financial products.
Tokenized stocks promise a host of advantages, including 24/7 trading and the absence of traditional commissions. The evolution of this market segment is regarded as one of the major milestones on the path towards hybrid finances as traditional assets and decentralized blockchain meet. As more tokenized equities hit major exchanges, their potential to disrupt the financial sector becomes increasingly apparent.
Ethereum treasury companies, which have collectively purchased 1.6% of all ETH in circulation since June, have garnered attention as a highly investable asset class. Standard Chartered’s Geoffrey Kendrick highlighted that these firms offer greater advantages over U.S. spot Ethereum exchange-traded funds (ETFs). Not only do Ethereum treasury firms benefit from the ability to earn staking rewards, but they also have access to decentralized finance (DeFi) leverage features not available to traditional ETH ETFs.
Kendrick pointed out that the net asset value (NAV) multiples of Ethereum treasury firms had normalized and held a more attractive investment option than the U.S.-based ETFs that cannot engage in staking or DeFi. Similar to the development observed in the Bitcoin market, the increase in Ethereum treasury companies is a trend followed by corporate entities such as MicroStrategy, which paved the way for purchasing BTCs.
As Ethereum treasuries can potentially hold up to 10% of all the ETH in circulation, they constitute an increasingly significant part of the crypto investment environment. Companies like SharpLink Gaming have helped fuel this increase, and their NAV multiples have nearly come to compete with the price of Ethereum. The trends are indications of more institutional acceptance of cryptocurrencies as a reserve asset, and Ethereum treasuries will be at the center of this shift.
