Here’s what happened in crypto today
Today in crypto, Jump Crypto subsidiary Tai Mo Shan settles with the SEC, Google says UK advertisers wanting to promote crypto exchanges in the country must register with the FCA, and Tether has announced a $775 million strategic investment with video-sharing platform Rumble.
Jump Crypto subsidiary settles with Securities and Exchange Commission
Jump Crypto subsidiary Tai Mo Shan entered into a $123 million settlement with the Securities and Exchange Commission (SEC) for misleading investors about the TerraUSD (UST) algorithmic stablecoin.
According to a Dec. 20 announcement from the SEC, Tai Mo Shan misled investors about the stability of the algorithmic stablecoin by purchasing $20 million in UST to artificially keep the price of UST pegged at a 1:1 ratio with the US dollar.
TerraUSD eventually lost its dollar peg in May 2022 — first de-pegging to $0.98 due to a whale offloading roughly $285 million in UST — then plummeting to $0.67 days later.
The fear, uncertainty, and doubt created by the initial price declines caused a cascade of liquidations in the Terra ecosystem — eventually leading to the complete collapse of UST.
Google to require FCA registration for crypto ads targeting the UK
Google advertisements promoting digital asset exchanges and wallets in the United Kingdom must register with the country’s financial services regulator when a new Google policy update takes effect in January 2025.
The search engine company said that starting on Jan. 15, 2025, advertisers offering crypto exchange products and services in the UK will be allowed to advertise if they meet certain requirements.
For crypto exchanges and software wallets, Google said it would allow ads to promote these products if they are registered with the Financial Conduct Authority (FCA).
Google also announced that it will permit ads for hardware wallets designed to store private keys for cryptocurrencies, non-fungible tokens (NFTs), or other digital assets, as long as they do not provide additional services such as buying, selling, or trading.
While Google Ads did not specify any further requirements for these hardware wallets, the company expects advertisers to comply with local regulations. Google wrote:
This means that advertisers wanting to show crypto-related ads on Google must look into the local regulations of the jurisdictions they want their ads to appear and meet the requirements set by the financial regulators in those areas.
Tether pours $775 million into video-sharing platform Rumble
Tether, the issuer of the world’s largest stablecoin by market cap, has invested $775 million into Rumble, an alternative platform to YouTube known for not censoring content.
“Tether deeply believes in the fundamental values of freedom of speech and financial freedom,” Tether CEO Paolo Ardonio said in a Dec. 20 X post.
“Our strategic investment in Rumble greatly underscores Tether’s focus in supporting technology and companies that empower humans, delivering independence and resilience to our society,” Ardonio said.
Ardonio said he was optimistic about what Rumble CEO Chris Pavlovski and his team have built and looks forward to collaborating on a “shared vision.” Tether and Rumble plan to collaborate on an advertising, cloud, and crypto payments solution relationship.
Echoing a similar sentiment, Pavlovski said in a Dec. 20 X post that he has never been more excited for the future and intends to keep pushing against the world’s largest video-sharing platform, YouTube: