SEC Drops Crypto Appeal; Coinbase Expands Derivatives; MicroStrategy Seeks $2B for Bitcoin

The Securities and Exchange Commission (SEC) has withdrawn its appeal against a Texas court decision that blocked a broker-dealer rule expansion. This move, proposed under former SEC Chair Gary Gensler, would have required crypto liquidity providers and automated market makers with over $50 million in capital to register as dealers. The proposed rule would have subjected decentralized crypto protocols to stringent regulations, including Know Your Customer and Anti-Money Laundering rules, which crypto advocacy groups deemed unenforceable due to the decentralized nature of these protocols. The dismissal marks an end to the legal contention initiated by crypto entities in response to what they viewed as regulatory overreach.

The SEC's decision to drop the appeal comes amidst a broader shift in the crypto landscape, with various developments shaping the industry's future. Coinbase, a leading crypto exchange, has expanded its crypto derivatives offerings with CFTC-regulated Solana and Hedera futures, catering to both institutional and retail traders globally. Additionally, Coinbase has introduced EURC perpetual futures, enhancing crypto-native FX trading with leverage.

Meanwhile, Strategy, formerly MicroStrategy, has announced its intention to offer $2 billion in convertible senior notes at 0% interest to fund bitcoin purchases and other corporate needs. The notes, maturing in 2030, may convert into cash or stock options, also allowing for an additional $300 million purchase option for initial buyers. This announcement follows Strategy's profitability warning and acknowledgment of $1.79 billion in impairment losses from its bitcoin holdings in 2024.

In other news, Tether Investments has proposed to acquire a 51% controlling stake in Adecoagro S.A., a South American sustainable production company. The offer of $12.41 per Common Share was made on February 14, 2025, aiming to increase Tether's stake from 19.4% to 51%. Adecoagro's Board is currently reviewing the proposal with assistance from legal and financial advisors to determine its suitability for shareholders.

HyperEVM, a significant development for Hyperliquid, has gone live, introducing full programmability with the initial release on its mainnet. Key features include the integration of HyperEVM blocks within L1, supporting secure transactions through HyperBFT consensus, enabling spot transfers between native and HyperEVM HYPE tokens, and deploying a canonical WHYPE system contract for