6 January

Federally regulated banks can use stablecoins to conduct payments and other activities, the OCC said Monday.

The letter said these financial institutions can participate as nodes on a blockchain and store or validate payments. The OCC said [blockchains] ‘may be more resilient than other payment networks‘ due to the large number of nodes needed to verify transactions, which can, in turn, limit tampering.

Brian Brooks, the Acting Comptroller of the Currency, said in a statement that while other nations have built real-time payments systems, the U.S. “has relied on” the private sector to create such technologies, seemingly endorsing the use of cryptocurrencies – specifically stablecoins – as an alternative to other real-time payment systems.

The letter states that blockchains have the same status as other global financial networks, such as SWIFT, ACH and FedWire.”

See Also: Official Statement

“One River has worked with crypto exchange Coinbase to invest an undisclosed amount in cryptocurrency. According to Coinbase, which carried out the transaction, its purchase represents “one of the largest digital asset trades in history.”

Market observers have noted large amounts of Bitcoin being withdrawn from the exchange, suggesting institutional holders buying Bitcoin and withdrawing to long term storage. On January 5, Cryptoquant CEO Ki Young Ju noted that 55,000 Bitcoin left the exchange on January 2.

One River recently made its case for cryptocurrencies in a post on its website, entitled “The Case for Digital Assets.”

Owning these assets is a mere toehold to the future, a deposit on the view that everything we know about financial intermediation and its relationship to centralized policy will change in ways we cannot yet foresee.

Holding these assets over the long-term aligns yourself with the macro mega-trends of technological advance and currency debasement, both of which appear to be accelerating.”

See Also: JPMorgan Predicts Bitcoin Price Could Rise Over $146,000 in Long Term

“The “Kimchi Premium” is back, suggesting sentiment for Bitcoin is increasing in Korea. The premium usually fluctuates by 1% on average. However, on Monday, it rose to 5.5%, with the trend continuing on Tuesday morning.

Some traders consider the rising premium to be an indicator of rising sentiment—and perhaps prices—for Bitcoin in the future.

The 2017 bull run was marked by a constant kimchi premium throughout the rally, it particularly shot up during the local tops.”

“One of Ripple Labs’ big financial backers is looking to reverse its bet on the XRP issuer.

Tetragon Financial Group LTD, the multi-billion asset manager-turned-plaintiff, had led Ripple’s $200 million funding round in December 2019. On Monday night the U.K.-based firm moved to exit its position in a sealed filing in Delaware Chancery Court.

Tetragon seeks to “enforce its contractual right to require Ripple to redeem” Series C preferred stock. In the meantime, Tetragon wants the court to essentially freeze Ripple’s liquid assets until it pays.”

“In a Jan. 4 letter addressed to FinCEN, Dorsey said, if the rules are approved, cryptocurrency customers maybe pushed to use unregulated services outside of the U.S.

This creates unnecessary friction and perverse incentives for cryptocurrency customers to avoid regulated entities for cryptocurrency transactions, driving them to use non-custodial wallets or services outside the U.S. to transfer their assets more easily.

VC firm Andreesen Horowitz said Monday that ‘FinCEN has proposed at the eleventh hour of an outgoing administration a rule that has all the hallmarks of an arbitrary and capricious agency action.'”

See Also: Andreessen Horowitz joins push against FinCEN’s 11th-hour crypto rules

“Back in October, the OCC laid out its “True Lender” rule, which took effect at the end of December. The rule dictates that a loan that includes a national bank as a lender can therefore rely on the OCC’s national guidance rather than that of individual states.

The controversy here is that many states have especially strong anti-usury provisions, which cap interest rates in the hope of preventing predatory lending. State regulators claim that the OCC overstepped its authority by overriding — or preempting— state law.”

The licenses make LCX a regulated crypto exchange, digital asset custody provider, price oracle provider, digital asset compliance provider, smart-contract creator and token-offering platform, said LCX CEO Monty Metzger.

In an era where banks are not only exploring bitcoin but their own digital assets, LCX is positioning itself to be a retail exchange that can help other institutions launch their own digital assets.”

See Also: Swedish Bankers Air Concerns Over E-Krona Digital Currency Plan