Today in crypto: Strategy responded to MSCI’s plan to exclude companies with major crypto treasuries from its indexes. Japan is preparing to move crypto regulation under securities law, and Jack Mallers’ Twenty One Capital dropped 20% in its NYSE debut.
Strategy responds to MSCI letter, makes case for index inclusion
Strategy, the largest Bitcoin treasury company, submitted feedback to index company MSCI on Wednesday about the proposed policy change that would exclude digital asset treasury companies holding 50% or more in crypto on their balance sheets from stock market index inclusion.
Digital asset treasury companies are operating companies that can actively adjust their businesses, according to the letter, which cited Strategy’s Bitcoin-backed credit instruments as an example.
The proposed policy change would bias the MSCI against crypto as an asset class, instead of the index company acting as a neutral arbiter, the letter said.
The MSCI does not exclude other types of businesses that invest in a single asset class, including real estate investment trusts (REITs), oil companies and media portfolios, according to Strategy. The letter said:
“Many financial institutions primarily hold certain types of assets and then package and sell derivatives backed by those assets, like residential mortgage-backed securities.”
The letter also said implementing the change “undermines” US President Donald Trump’s goal of making the United States the global leader in crypto. However, critics argue that including crypto treasury companies in global indexes poses several risks.
Japan plans major shift as crypto moves from payments to securities law
Japan’s financial regulators are preparing to move crypto asset oversight out of the country’s payments regime and into a framework designed for investment and securities markets.
The Financial Services Agency (FSA) on Wednesday released a comprehensive report from the Financial System Council’s Working Group on the regulatory status of cryptocurrencies across multiple sectors.
The document outlines a plan to shift the legal basis for crypto regulation from the Payment Services Act (PSA) to the Financial Instruments and Exchange Act (FIEA), which is the primary law regulating securities markets, issuance, trading and disclosures.
“Crypto assets are increasingly being used as investment targets both domestically and internationally,” the report noted, underscoring the need to protect users by providing regulation that treats crypto as a financial product.
One of the core changes brought by bringing crypto under FIEA regulatory scope is strengthening data disclosure requirements for initial exchange offerings (IEOs), or token sales managed by crypto exchanges.
“Crypto transactions conducted by users are similar to securities transactions, and may involve the sale of new crypto assets or the buying and selling already in circulation,” the document reads, highlighting the importance of timely information during IEO sales.
Bitcoin firm Twenty One Capital drops 20% on first day of trading
Shares in Twenty One Capital (XXI), the newest crypto treasury company in the US, slid 20% on its trading debut after merging with the blank-check company Cantor Equity Partners.
Twenty One Capital opened trading on Tuesday at $10.74, below the closing price of $14.27 on Monday for Cantor’s special purpose acquisition company that it merged with.
The new Bitcoin-focused company’s stock closed trading on Wednesday at $11.42, down 19.97% over 24 hours.
Twenty One was among the most anticipated crypto public debuts this year, with the company backed by major stablecoin issuer Tether, crypto exchange Bitfinex Japan’s SoftBank Group. Jack Mallers, the founder and CEO of the Bitcoin platform Strike, was also named Twenty One’s CEO.
The company holds over 43,500 Bitcoin worth over $4 billion, boasting the third-largest holdings among public companies behind Bitcoin miner MARA Holdings, according to BitcoinTreasuries.NET.