Crypto
Federal Reserve calls for Strong Oversight of Stablecoins
Federal Reserve calls for Strong Oversight of Stablecoins
The US Federal Reserve Chairman Jerome Powell has said that the central bank would like to see stablecoin issuers and Fiat-backed digital currencies operate with the same level of regulations similar to those imposed on banks and other financial institutions. Powell made this statement while speaking to the House of Representatives Financial Services Committee.
The call for oversight
Stablecoins are digital currencies that are backed by a fiat currency, gold, or other cryptocurrencies. Currently, the stablecoin market is valued at about $100 billion. Powell expressed concern over stablecoins, citing that they are yet to receive adequate regulatory attention. He said, “We have been clear about our expectations for consumer protection, anti-money laundering, and financial stability regarding cryptocurrencies, including stablecoins.” Further adding that the Federal Reserve would like to have a “robust framework” for its supervision going forward.
Federal Reserve would like a “limited role” in issuing a digital dollar
While the central bank is highly interested in the release of a digital dollar, Powell expressed the need for a congressional obligation before the Federal Reserve embarks on developing any digital currency projects. He stated, “I think it’s important that we have a conversation with Congress about it because there would be a lot of complicated questions that would need to be answered if we were to decide to pursue that.” Powell also revealed that the central bank would like to have a “limited role” in issuing a digital dollar.
Stablecoin issuers must comply with regulatory requirements
In conclusion, Powell reiterated that the central bank is not shying away from digital innovation and intends to pursue it aggressively. However, he emphasized that stablecoin issuers must comply with regulatory requirements. This is an important point given the recent lawsuit against Tether, a prominent stablecoin issuer, by the New York attorney general. The lawsuit accuses the company of not fully backing its stablecoin with enough fiat and failing to disclose that some of its reserves were invested in risky assets.
The future of stablecoins is uncertain
The call for regulatory oversight of stablecoins (and other cryptocurrency) is not new. Lawmakers in multiple jurisdictions have voiced caution over the potential of unregulated stablecoin markets. With Powell’s statement, we could see a heightened effort by regulators to supervise stablecoins, making its future uncertain. Nevertheless, stablecoins remain an essential part of the crypto ecosystem, with them being used for a wide array of transactions, from trading to remittances. It is now up to regulators to find a way to ensure that stablecoins are adequately regulated while not stifling innovation.
BNB price has noted significant gains over the past few days, surging past the psychological resistance of $300. The native cryptocurrency of the Binance Exchange has surpassed Solana to regain its position as the fourth-largest cryptocurrency by market cap. The digital currency has been rallying lately with a 7-day profit of more than 15%. Additionally, BNB has clocked a phenomenal gain of 38% in the month to date.
Binance Coin Outlook
BNB price has been on a strong bull run for the past week, breaking out of its consolidation. Even so, the asset has experienced a correction in its uptrend over the past 24 hours but remains above the crucial level of $300. BNB’s total market cap has decreased by 4% over the past day to $48 billion, while the total volume of the asset traded over the same period dipped by about 15%.
Over the past year, Binance Coin has had to cope with Fear, Uncertainty, and Doubt (FUD) on the back of the regulatory troubles of its underlying exchange. Earlier, the BNB price touched a low of $223.50, a few days after its former CEO, Changpeng Zhao, pleaded guilty to money laundering charges. However, the cryptocurrency has managed to rebound 46% in value since then.
The recent price rally has been associated with various positive developments in the Binance ecosystem, including the Introduction of the Isolated Margin Auto-Transfer Mode. This feature enables…
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
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