Big Market and Crypto News: U.S. Stocks Drop, DeFi at Risk, Ripple’s Stablecoin Launch and More

On Tuesday, U.S. stocks were in the red, primarily driven by losses in the tech and semiconductor sectors. The market experienced a $1 trillion reduction in total market cap. The Dow fell by over 600 points, while the Nasdaq dropped by 3%. Nvidia, a leading semiconductor company, was hit hard, with its stock down more than 7%. This was the largest one-day market cap decline for any U.S. company. This decline also led to a personal loss for Nvidia's CEO, who saw a $10 billion reduction in net worth. Bitcoin also fell below $56,000 but has since recovered slightly to around $58,000. Analysts are awaiting the non-farm payrolls report, due on Friday, which could further impact the market.

The CFTC has fined Uniswap Labs $175,000 for offering illegal digital asset derivatives trading. The CFTC found that Uniswap Labs provided leveraged or margined retail commodity transactions in cryptocurrencies without proper registration. These leveraged tokens did not meet legal requirements for delivery and were offered to non-Eligible Contract Participants. The fine was reduced due to Uniswap Labs' cooperation with the investigation.

Spot Bitcoin ETFs saw big outflows on Tuesday, with $287.78 million withdrawn, marking the largest outflow since May 1. Spot Ethereum ETFs also experienced outflows totaling $47.4 million.

The FBI has issued a warning about North Korean cybercriminals intensifying efforts to hack U.S. spot Bitcoin ETFs. According to the FBI, these cybercriminals are using advanced social engineering tactics, such as phishing and impersonation, to deceive industry workers and steal funds from Bitcoin ETFs.

Ripple CEO Brad Garlinghouse announced that Ripple's new stablecoin, RLUSD, is "very close" to launch and is expected in the coming weeks. The U.S. dollar-pegged stablecoin aims to complement XRP and address gaps left by other stablecoins like USDT and USDC. Garlinghouse also stated that Ripple is not pursuing a U.S. public offering due to the SEC's "hostile" stance towards the crypto industry.

Polygon (MATIC) is migrating to a new token standard, POL, starting this week. This transition is part of Polygon's efforts to enhance blockchain infrastructure and improve ecosystem functionality. Users and developers are advised to follow the migration process to ensure a smooth transition.

New information has emerged about the Trump Crypto Project, which is linked to a $2 million DeFi hack. The project's codebase was initially uploaded to GitHub and later deleted. The code closely resembles that of Dough Finance, which was hacked in July. The project also plans to include a non-transferable governance token, $WLFI.

Paul Grewal, Coinbase's Chief Legal Officer, confirmed that Coinbase has engaged with both Donald Trump and Kamala Harris' presidential campaigns. The Trump campaign has been more proactive in its interactions with Coinbase, reflecting the growing intersection between cryptocurrency platforms and political campaigns.

And congratulations to John Deaton, who won the Republican primary for the U.S. Senate seat, securing 64% of the vote. He will face Senator Elizabeth Warren in the general election this November.