Hivemind Brief 003 | AI Traders Are Here, Market Infrastructure Hits it's Stride, and a.c.k. Reimagines Reality

Welcome to The Hivemind Brief!

In this edition you can expect:

1. Macro Market Update

2. Regulatory & Legal Update

3. Featured Content
Who Let the Bots Out? AI’s Big Play in Finance
The Time Is Now: Modernizing Financial Market Infrastructure
Inside the Collection: Alpha Centauri Kid (a.c.k.)

4. Bulletin Board
Hivemind Unveils Shanghai Office + Welcomes Engineering Team
Hiring

Enjoy and we’ll see you in the next one!

From Richard Skeet, Managing Partner and Head of Research

“Inflation is the one form of taxation that can be imposed without legislation.” — Milton Friedman 

As we move through early 2025, the digital asset landscape is undergoing a fundamental transformation. The cautious optimism following the U.S. election has evolved into tangible momentum across the sector. The new administration's crypto-friendly stance has created a fertile environment for innovation that stands in stark contrast to the regulatory uncertainty that previously dominated the space. While improving regulatory regimes don't necessarily result in immediate price appreciation - a frustration for many market participants - the grey skies of regulatory uncertainty will inevitably give way to blue. Patience is required as markets digest these fundamental improvements and incorporate them into prices. 

The most significant shift we're witnessing is the transition from proof-of-concept to production. Major financial institutions are no longer asking if blockchain solutions should be adopted, but how quickly they can be deployed. This acceleration is evident in the rapid development of tokenized instruments, institutional trading platforms, and blockchain-based settlement systems reshaping market infrastructure. 

From a macroeconomic perspective, Friedman's observation on inflation as "taxation without legislation" remains relevant as markets grapple with inflationary pressures. However, recent data suggests the inflationary impulse is beginning to dissipate as shipping costs decrease and energy prices stabilize. These developments, alongside expanding global liquidity conditions, provide a supportive backdrop for digital assets—particularly Bitcoin, with its historical lag to liquidity trends suggesting positive momentum ahead. 

The convergence of artificial intelligence and digital assets presents another frontier of opportunity, with AI agents increasingly participating in digital markets in ways that could fundamentally reshape blockchain ecosystems. Meanwhile, the newly formed Department of Government Efficiency (DOGE) represents a unique convergence of political will and blockchain culture that few could have predicted. 

The stakes are high, and the message is clear: in a market shaped by liquidity, shifting regulations, and evolving macro forces, adaptability will define the winners. The cycle is turning—those paying attention now will be the ones best positioned when the next wave hits. 

From Sayuri Ganesarajah, Head of Legal and Compliance

Looking back at the last few weeks and months, it is difficult to focus on any other jurisdiction except the US in respect of the latest regulatory and legal news in digital assets.

The shift of the SEC to (in the majority of cases) completely drop several lawsuits and/or investigations is a very significant and welcome shift away from the SEC’s previous stance of regulation by enforcement: (i) the lawsuit against Coinbase for allegedly operating a cryptocurrency exchange as an unregistered securities exchange, broker, and clearing agency has been dismissed; (ii) the investigation into Robinhood over allegations that the company failed to register certain digital assets offered on its platform as securities has been closed; (iii) the investigation into OpenSea for allegedly selling NFTs which are unregistered securities has been dropped; (iv) the investigation into Uniswap for allegedly operating an unregistered securities broker and exchange, its UNI token being an unregistered security, has been closed; (v) the SEC’s lawsuit against Binance and its founder in respect of inflating trading volumes, diverting customer funds and misleading investors regarding market surveillance has also been put on pause for 60 days; (vi) the SEC has stated that it intends to dismiss its lawsuit against Kraken which alleged that Kraken was operating illegally as an unregistered securities exchange; and (vii) most recently, the SEC has closed its investigation into Yuga Labs, the company behind the Bored Ape Yacht Club (BAYC) NFTs, without taking enforcement action.

Importantly, in parallel, we have also seen fundamental shifts at the political and regulatory levels to attempt to provide regulatory clarity in the digital assets sector. Starting on 23 January 2025, President Trump signed an Executive Order to establish a Working Group to review current regulations and propose a federal regulatory framework which would govern the issuance and operation of digital assets, including stablecoins. The SEC has also created of a Crypto Task Force, led by Commissioner Hester Pierce, focused on developing a comprehensive and clear regulatory framework for digital assets.

The above, as well as other significant updates, including the recission of Staff Accounting Bulletin 121 (SAB 121), coupled with President Trump’s very public support for digital assets is well received. President Trump signed an Executive Order in January to promote the advancement of digital assets in the US and work towards developing a national digital asset stockpile. Most recently, on 4 March 2025, President Trump posted on Truth Social that the government would purchase and hold a variety of digital assets in a strategic reserve fund, including XRP, Solana and Cardano, as well as Bitcoin and Ethereum.

Overall, it is difficult to imagine a greater shift in support for digital assets in the US compared to the last few years. While a reduction in the pursuit of digital asset operations (in the manner we have seen) is a very welcome development, it does not replace the need longer-term need for regulatory clarity. Let’s hope that clarity is forthcoming, and it can usher in a new dawn for the industry.

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Hivemind Group Unveils Shanghai Office +
Welcomes New Engineering Team

Growing globally and deepening our tech-first approach to blockchain investing.

We’re expanding our footprint in Shanghai and launching a dedicated in-house engineering team to double down on our tech-driven approach to investing and building in blockchain.

Leading the charge are Dachao Zhao, Tao Tan, and Ryan Yuan—the brilliant minds behind Art Links, the blockchain game from The Metropolitan Museum and TRLab. With their expertise, we’re leveling up our ability to build proprietary tools, explore new market solutions, and dive deeper into the technical side of web3 investing.

Shanghai puts us right at the center of one of the world’s most blockchain-forward regions, giving us a front-row seat to innovation and a direct connection to the market’s pulse.

The team’s already hard at work on some exciting projects—more to come soon. Stay tuned! 🚀

Hiring - Join Us!

Open Hivemind Positions:

• Controller - New York

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