Nvidia, Jevons Paradox, and Why the AI Age is Just Getting Started

By: Jake Moodie , Analyst, Digital Asset Group at Ninepoint Partners

SEC Confirms Staking Activities on PoS Networks Do Not Violate Securities Laws as Regulatory Momentum Builds Across Agencies

The SEC’s Division of Corporation Finance has published a statement clarifying that crypto staking on proof-of-stake (PoS) networks doesn’t violate securities laws. In particular, the staff letter says protocol staking “does not involve the offer and sale of securities” and that participants “do not need to register transactions with the Commission under the Securities Act.” The SEC explained that staking rewards are simply payments for services provided to the network, not profits coming from the managerial and entrepreneurial efforts of others. That distinction is key under the Howey Test. This comes as part of a broader effort by the SEC to lead positive crypto regulatory reform. Since the launch of its Crypto Task Force, led by Commissioner Hester Peirce in January, the SEC has issued similar letters for stablecoins, proof-of-work (PoW) mining activities, and even memecoins, stating they too don’t fall under securities laws. And it’s not just the SEC moving in a more supportive direction. The U.S. Federal Reserve recently pulled back its earlier guidance that discouraged banks from dealing with crypto and stablecoins. The FDIC clarified that banks can engage with crypto without needing prior approval. And the OCC confirmed that banks can custody crypto, hold stablecoin reserves, and use blockchain networks for payments. Back in our 2025 outlook, we talked about how the new administration was driving a whole-of-government approach to crypto, a shift we said could create a more welcoming regulatory environment and attract traditional financial institutions and large enterprises. As we discussed last week, with leading U.S. banks now eyeing a joint stablecoin launch, it feels like that moment may finally be arriving.

FTX Estate Begins Second Round of Creditor Distributions Totaling $5B, Saga Nearing End with 90% of All Claims in Distribution Pipeline

The FTX bankruptcy estate has kicked off its second major round of distributions, sending over $5 billion in cash and stablecoins to eligible creditors. The process began last Friday, May 30, with funds expected to land in accounts within three business days via crypto platforms like BitGo and Kraken. This round covers four classes of creditors, with recoveries ranging from 54% to 120% of original claims. In October 2024, a U.S. court approved FTX’s bankruptcy plan, which stated that 98% of creditors, those with under $50,000 on the platform, would receive 119% of their account balances from the time of the exchange’s collapse in November 2022. These payouts were scheduled to be completed within 60 days of the plan’s effective date, January 3, 2025, using a portion of the $14.7 to $16.5 billion the estate had recovered. The first round, totaling nearly $7 billion, was sent out on February 18. Interestingly, that initial wave didn’t create the kind of crypto buying pressure many had predicted. But according to Coinbase Institutional, this second round might play out differently for three key reasons: some payments are being made in stablecoins, providing instant onchain liquidity; the market backdrop is more bullish than it was in February; and growing regulatory clarity could prompt institutional creditors to rotate back into the market. Only time will tell where this liquidity flows, but either way, it’s encouraging to see this FTX saga finally winding down, with 90% of all claims now in the distribution pipeline.

New Jersey’s Bergen County Moves 370,000 Property Records Onchain in Largest Land Registry Tokenization Project in U.S. History

Last week, New Jersey’s Bergen County announced the largest land registry tokenization project in U.S. history, bringing 370,000 property records, worth roughly $240 billion in real estate value, onchain using Avalanche. The system is being developed through a five-year partnership with Balcony, a blockchain land records company building on Avalanche, and will serve nearly one million residents across 70 municipalities. For decades, real estate transactions in the U.S. have depended on paper records and outdated systems, often taking up to 90 days to complete. By moving to blockchain rails, Bergen County can cut that down to just one day, while creating a digital, tamper-proof, and searchable record of property ownership. This shift is expected to reduce the risk of fraud, title disputes, and administrative errors. It follows a similar move nearly a year ago, when California’s Department of Motor Vehicles (DMV) put 42 million car titles on Avalanche to streamline transfers and improve fraud detection. To learn more about how Avalanche is driving real-world blockchain adoption, we encourage you to check out our DeFi Decoded episode from November featuring John Wu, President of Ava Labs.