Cryptocurrency Market Update: Coinbase Delists WBTC, California Judge Holds DAO Members Liable, and More

The cryptocurrency market saw notable developments today across multiple sectors, including token delistings, decentralized governance, and stablecoin innovations. Here's a detailed recap of the top stories impacting the blockchain and crypto world.

Here are the key cryptocurrency and blockchain stories that unfolded today, covering token delistings, decentralized governance, and stablecoin innovations.

Coinbase to Delist Wrapped Bitcoin (WBTC)

Coinbase announced it will delist Wrapped Bitcoin (WBTC) on December 19, 2024, due to the token failing to meet the exchange’s listing standards. Coinbase has already halted market trades, allowing only limit orders, while withdrawals of WBTC will still be permitted.

WBTC, a Bitcoin tokenization product with over $13 billion in total value locked (TVL) as per DefiLlama, expressed surprise at the decision. Representatives urged Coinbase to reconsider, highlighting the token’s transparency and regulatory compliance.

On the other hand, Coinbase’s own Bitcoin wrapper, Coinbase Wrapped BTC (cbBTC), has gained traction with $1.4 billion TVL since its September launch. This move might indicate Coinbase’s preference for its proprietary token.

California Judge Holds DAO Members Liable

In a landmark ruling, a California federal judge has decided that members of decentralized autonomous organizations (DAOs) can be held liable for the group’s actions under state partnership laws. This decision arose from a lawsuit against Lido DAO, where an investor claimed losses due to the DAO offering unregistered securities.

This judgment brings increased regulatory scrutiny on DAOs. According to legal experts like Miles Jennings of a16z Crypto, the ruling is a significant blow to decentralized governance. It could set a precedent for future cases involving DAO accountability.

Lawmakers Demand Action on Tornado Cash

A group of U.S. lawmakers, including crypto critic Brad Sherman, pressed the Treasury Department for updates on efforts to curb Tornado Cash. Despite sanctions in 2022, the crypto mixer reportedly processed $1.8 billion in deposits in H1 2024, a 45% increase from the previous year.

The lawmakers expressed concern over the resurgence of mixers and urged stronger enforcement, highlighting Tornado Cash’s continued operation via decentralized smart contracts.

PayPal Expands PYUSD Reach via Xoom

PayPal partnered with Xoom to enable cross-border stablecoin payments using PayPal USD (PYUSD). This initiative aims to expand PYUSD access in Asian and African markets, enabling transactions beyond traditional banking hours.

PYUSD, an Ethereum-compatible stablecoin fully backed 1:1 by U.S. dollars, now facilitates seamless payments through collaborations with platforms like Cebuana Lhuillier and Yellow Card. Despite its innovation, PYUSD trails market leaders USDT and USDC, which together command a market cap of over $165 billion.

Paxos to Expand Stablecoin Presence in Europe

Blockchain infrastructure provider Paxos is set to acquire Finnish EMI Membrane Finance, obtaining a license to issue euro-pegged stablecoins across 30 European countries. This move positions Paxos to enter the regulated European stablecoin market, governed by the Markets in Crypto-Assets (MiCA) Regulation.

Paxos already issues several dollar-pegged stablecoins and a gold-backed cryptocurrency but lacks a stablecoin pegged to the euro. The acquisition aims to expand its presence in the growing real-world asset tokenization sector, currently valued at $2.4 billion.

El Salvador Launches Tokenized T-Bills

El Salvador unveiled its first tokenized U.S. Treasury offering, enabling individuals and organizations to invest in T-Bill tokens. Managed by Bitfinex Securities, the product offers access to short-term treasuries backed by BlackRock’s bond ETFs. Investors can subscribe using USDT or Bitcoin, and the tokens will be traded on the exchange under the ticker USTBL.

Tokenized assets continue to integrate traditional finance and blockchain, with the market tripling in size over the past year.

Rumble Considers Bitcoin Treasury Strategy

Video-sharing platform Rumble saw its stock rise after CEO Chris Pavlovski hinted at a potential Bitcoin treasury strategy on social media. The announcement prompted a response from MicroStrategy’s Michael Saylor, a renowned advocate for corporate Bitcoin adoption.

This news comes as Bitcoin hit a new record high of $94,000, largely driven by increasing corporate interest and stablecoin liquidity.

Trump Appoints Crypto Advocate as Commerce Secretary

President-elect Donald Trump has appointed Howard Lutnick, CEO of Cantor Fitzgerald, as his Commerce Secretary. Lutnick, a cryptocurrency proponent, has close ties to Tether and previously announced a grand plan to finance Bitcoin with $2 billion. His appointment suggests potential crypto-friendly policies in the upcoming administration.