Good afternoon Brew Crew, buckle up… it’s a new week and anything can happen in the digital asset world. STAY READY!

Let’s dive in ⬇️

On the menu today:

• 🚨 WALL STREET JOURNAL MESSED UP WITH CRYPTO & TERRORISM

• 📉 BINANCE’S MARKET SHARE IS TRENDING DOWN

• 👀 U.K.’S PLANS FOR STABLECOIN REGULATION

Today’s Charts:

🚨 WALL STREET JOURNAL MESSED UP WITH CRYPTO & TERRORISM

The Wall Street Journal (WSJ) corrected an article that mischaracterized how Hamas and other militant groups funded terrorist activities with crypto.

The original article, published October 10, claimed that Palestinian Islamic Jihad raised as much as $93 million in crypto from August 2021 - June 2023.

The WSJ cited blockchain forensics firm → Elliptic.

ELLIPTIC CLARIFIED:

The $93 million did not mean Palestinian Islamic Jihad raised these funds for terrorism….

Instead, research from Chainalysis suggested only $450,000 went to a known terrorism-affiliated wallet. 😳

Elliptic, called for the correction on October 25, stating that crypto funding for Hamas is relatively small compared to other sources.

The craziest part about this situation:

Senator Elizabeth Warren wrote a letter signed by over 100 U.S. lawmakers, which cited WSJ's misinterpreted data to argue that crypto poses a national security threat.

WHAT A JOKE!!! 🤡

📉 BINANCE’S MARKET SHARE IS TRENDING DOWN

Binance, the largest crypto exchange globally, has been facing a gradual decrease in its market share, dropping from 74% in December 2022 to 50% in October 2023.

Why is Binance losing market share?? ⬇️

This decline in market share coincides with the recent surge in the crypto market - capital has moved into multiple exchanges, not just Binance.

ALSO, Binance has faced multiple issues recently:

• significant / multiple executive exits → Chief Risk Officer, CEO/President of Binance.US, head of Binance in the UK

• regulatory investigations → SEC and Commodities Futures Trading Commission

• decreased interest among trading firms as the regulatory scrutiny continues around the exchange

Binance's market share decline is affecting its trading volumes / overall market position, despite attempts by the company's CEO to address the situation.

When you think about the internet boom in its early stages, not all of the original big companies survived.

This does not mean Binance won’t survive - they are currently the largest and most used crypto exchange in the world!

BUT - it’s always good to see things with a zoomed out perspective and realize just how early we are in the digital asset space.

👀 U.K.’S PLANS FOR STABLECOIN REGULATION

The United Kingdom government has released updated plans for regulating stablecoins, specifically those backed by fiat currency.

The document, published October 30, outlines the government's aim to facilitate / regulate the use of fiat-backed stablecoins within the U.K. payment systems.

The doc intends to introduce specific legislation to parliament in 2024.

This includes bringing the regulation of fiat-backed stablecoins under the authority of the Financial Conduct Authority (FCA).

Local companies will be designated as "arrangers of payment" authorized by the FCA → ensuring that overseas stablecoins comply with local standards.

Non-fiat-backed stablecoins, such as algorithmic stablecoins, will not be permitted within regulated payment systems.

The FCA will have the authority to require stablecoin issuers to hold all reserve funds in a statutory trust, with the trust's terms outlined in FCA rules.

These are the regulatory steps that need to take place in order to see widespread adoption around the globe. 🤝

Special Blend: Morning Meme Roast

As the CryptoBrew Daily comes to a close, we invite you to join us on Twitter for more crypto chat. Think of it as a chill gathering of like-minded folks, minus Chad talking about his 1-rep deadlift max and your tipsy uncle who always shares TMI stories. Let’s keep the crypto conversation going!

***DISCLAIMER: Please note that the information provided in this newsletter is for educational purposes only and is not intended to be construed as financial advice or a solicitation to buy or sell any assets. We urge you to exercise caution and conduct your own research before making any financial decisions.