Today in crypto, Robinhood has acquired Bitstamp for $200 million, the US SEC was slammed for its new guidance on crypto staking, and Singapore’s central bank said local crypto firms targeting overseas markets need to halt operations by June 30.
Robinhood acquires Bitstamp for $200 million
Robinhood Markets, Inc. said on June 2 that it closed a $200 million acquisition of Luxembourg-based crypto exchange Bitstamp, adding over 50 licenses and registrations and an established institutional client base to its crypto business.
Robinhood paid in cash for the world’s longest-running crypto exchange and said the deal was unchanged from an initial agreement in June 2024.
Bitstamp has over 5,000 institutional clients and 50,000 retail customers, with most of its trading volume driven by its institutional base and Robinhood said that the acquisition significantly expands its crypto footprint beyond the US into the European, UK and Asian markets.
Shares in Robinhood (HOOD) closed June 2 trading up 2.77% to $67.98, with gains extending by 0.44% in after-hours.
Robinhood Crypto general manager Johann Kerbrat said on CNBC that the company hasn’t ruled out other crypto-related acquisitions.
It comes after Robinhood agreed on May 13 to acquire Canadian crypto platform WonderFi for approximately $179 million as part of a move to strengthen its presence in Canada.
SEC faces criticism over crypto staking shift
The US Securities and Exchange Commission (SEC) is facing mounting criticism from current and former officials over its evolving stance on crypto staking services.
On May 29, the SEC’s Division of Corporation Finance issued new guidance on crypto staking services, claiming that certain offerings may not constitute securities and effectively exempting proof-of-stake blockchains from registration requirements under the Securities Act.
However, the SEC’s fresh interpretation may diverge from several federal court rulings, according to former SEC chief of Internet Enforcement, John Reed Stark.
In a statement on X, Stark argued the Commission’s latest move contradicts judicial findings in high-profile cases against crypto exchanges Binance and Coinbase, where judges previously allowed allegations that staking products qualified as securities under long-standing legal precedent.
“This is how the SEC dies – in plain view,” Stark wrote in a lengthy response to the agency, calling the shift “a shameful abdication of its investor protection mission.”
Sitting Commissioner Caroline Crenshaw also issued a statement on May 29 in response to the agency’s approach to crypto staking, warning that the staff’s conclusions did not align with established case law or the Howey test.
Singapore orders local crypto firms to cease overseas activity by June 30
Singapore’s central bank has set a deadline of June 30 for local crypto service providers to stop offering digital token (DT) services to overseas markets.
The directive came from the Monetary Authority of Singapore’s (MAS) response to industry feedback on its proposed regulatory framework for Digital Token Service Providers (DSTPs) under its Financial Services and Markets Act of 2022 (FSM Act).
MAS stated that no transitional arrangements will be made for local DTSPs providing services abroad. It said that any Singapore-incorporated company, individual or partnership that provides DT services outside Singapore must either cease operations or obtain a license when the DTSP provisions come into force by the end of June.
“DTSPs which are subject to a licensing requirement under section 137 of the FSM Act must suspend or cease carrying on a business of providing DT services outside Singapore by 30 June 2025,” MAS wrote.
Under Section 137 of the FSM Act, Singapore-based businesses are presumed to be operating from Singapore and are thus subject to licensing. This includes companies whose overseas token-related activities are not their primary business activity.
Companies found violating the laws will be subject to hefty fines of up to 250,000 Singaporean dollars ($200,000) and imprisonment of up to three years.