Circle’s USD Coin ballooned to $55 billion because institutional investors trust it more than Tether. Then SVB collapsed holding billions of USDC’s reserves and breaking the digital dollar. Finally, stablecoin regulation is coming.
under five years, USD coin , the $38 billion blockchain-based digital dollar issued by Boston-based Circle Financial, has built itself into a leader in the $100 billion plus stablecoin market. Unlike larger rival Tether, Circle has been taking the high road, touting its transparency and regulatory bona fides to anyone who would listen.
“In stablecoins, we saw clients moving their assets from USDC, into BTC , and ETH ,” says Austin Reid of crypto prime broker FalconX. The panic also caused an inflow of billions to Tether, which briefly surged above a dollar. One reason Circle may have kept 8% of its reserves, largely uninsured, in a single California bank may have to do with the fact that few U.S. banks are willing to take on crypto companies as account holders. Silicon Valley was one such firm, though these types of firms probably represented less than 10% of its $175 billion deposit base.By professing transparency and regulatory compliance Circle’s USDC stablecoin became an institutional darling.
“I think we need legislation to provide clarity to digital assets on how they're categorized for that functional regulation,” says Representative French Hill , who chairs the House Subcommittee on Digital Assets, Financial Technology, and Inclusion. “However, I think it's more complicated than just the composition of what is the nature of the stable part of the stablecoin collateral.
Like the warning label on cigarettes, issuers would be forced to issue explicit statements saying that stablecoins were not backed by the full faith and credit of the U.S. or protected by the FDIC.would ban the issuance of such tokens unless they were created by a subsidiary of an insured depository institution that has been approved to issue them or by a licensed non-bank entity.
The new legislation would also allow Federal Reserve banks to provide services to stablecoin issuers such as discount and borrowing privileges.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Trading Support and Resistance \u2013EUR/USD, USD/JPYThis week I will begin with my monthly and weekly Forex forecast of the currency pairs worth watching.
Weiterlesen »
USD/CHF retakes 0.9300 mark amid modest USD strength, risk-off mood likely to cap gainsUSD/CHF retakes 0.9300 mark amid modest USD strength, risk-off mood likely to cap gains – by hareshmenghani USDCHF RiskAversion Fed Bonds Currencies
Weiterlesen »
AUD/USD remains depressed near 0.6700, fresh USD selling lends some supportThe AUD/USD pair struggles to capitalize on its modest intraday gains and retreats from a nearly two-week high, around the 0.6730 area touched earlier
Weiterlesen »
GBP/USD rallies to over one-month peak, eyes mid-1.2200s amid notable USD weaknessThe GBP/USD pair builds on last week's rally from the vicinity of the 1.2000 psychological mark and gains positive traction for the third successive d
Weiterlesen »
Republicans' attempts to claim SVB as 'woke bank' fall apartGOP figures have claimed the bank's failure was due to its diversity policies, and that it was saved by the Biden administration for being 'woke.'
Weiterlesen »
Inside the New York Stock Exchange the day SVB collapsedHere's what it was like at the New York Stock Exchange the day Silicon Valley Bank collapsed, according to Wall Street's most famous trader
Weiterlesen »