Today in crypto: Bitwise’s Matt Hougan says Strategy won’t need to sell its Bitcoin to stay afloat, the US Commodity Futures Trading Commission approved spot crypto products on regulated futures exchanges and the European Commission moved to expand ESMA’s oversight of MiCA-regulated crypto firms and trading venues.
Strategy won’t be forced to sell Bitcoin, says Bitwise CIO
Strategy (MSTR) won’t be forced to sell Bitcoin (BTC) to stay afloat if its share price drops, and those who say otherwise are “just flat wrong,” Bitwise chief investment officer Matt Hougan said on Thursday.
Fears that Strategy could sell its massive Bitcoin haul flared after its CEO Phong Le said last week that it could offload some of its stash as a “last resort” if Strategy’s market value slipped below the value of its Bitcoin holdings.
But Hougan said Strategy has a lot of leeway even if its stock drops below its NAV as it has “no debt due until 2027 and enough cash to cover interest payments for the foreseeable future.”
He explained that Strategy “needs to pay about $800 million a year in interest, and it needs to convert or roll over specific debt instruments as they come due,” but the company has $1.4 billion in cash “meaning it can make its dividend payments easily for a year and a half.”
He added that Bitcoin trading around its current price of $92,000 is “24% above the average price at which Strategy acquired its stash ($74,436).”
“I just don’t see it happening,” Hougan said.
CFTC greenlights spot crypto trading on US exchanges
The US Commodity Futures Trading Commission has given approval for spot cryptocurrency products to trade on federally regulated futures exchanges.
In a Thursday notice, Acting CFTC Chair Caroline Pham said the move was in response to policy directives from US President Donald Trump. She added that the approval followed recommendations by the President’s Working Group on Digital Asset Markets, engagement with the US Securities and Exchange Commission and consultations from the CFTC’s “Crypto Sprint” initiative.
“[F]or the first time ever, spot crypto can trade on CFTC-registered exchanges that have been the gold standard for nearly a hundred years, with the customer protections and market integrity that Americans deserve,” said Pham.
Pham, who became acting CFTC chair in January amid Trump’s taking office, is expected to step down once the US Senate confirms a replacement. The nomination of Michael Selig, an SEC official whom Trump nominated to chair the CFTC, is expected to head to the Senate floor for a vote soon after moving out of committee.
EU plan boosts ESMA powers over crypto and capital markets
The European Commission has proposed expanding the powers of the European Securities and Markets Authority (ESMA) over crypto and broader financial markets in a bid to narrow the competitive gap with the United States.
Published Thursday, the package would transfer “direct supervisory competences” for key pieces of market infrastructure, including crypto-asset service providers (CASPs), trading venues and central counterparties, to the ESMA and strengthen its coordination role in the asset management sector.
The proposal still needs approval from the European Parliament and the Council, where it is under negotiation.
If adopted, ESMA’s role in overseeing EU capital markets would more closely resemble the centralized framework of the US Securities and Exchange Commission.
In September, France became the third European country to call for the Paris-based ESMA to take over supervision of major crypto firms, joining Austrian and Italian securities regulators.
The move followed growing criticism of Malta’s crypto licensing regime. In July, the ESMA released a peer review of the Malta Financial Services Authority’s authorization of a crypto service provider, saying that the regulator only “partially met expectations.”