“Bitcoin’s latest breakout above $50,000 seems to be backed by renewed institutional buying.
Front-month bitcoin futures contracts based on the Chicago Mercantile Exchange (CME) are trading at an annualized premium of 12.8% to the spot price. That’s the highest level since mid-April and marks a significant rise from the discount of 0.36% seen a week ago.
The increase in premium suggests that there is high demand among the CME traders to build long exposure in bitcoin at the moment.
According to Bloomberg’s Intelligence senior ETF analyst, there is a 75% chance of a futures-based ETF approval this month, most likely the ProShares Bitcoin Strategy ETF on Oct. 18.
A futures-based ETF, if approved, could lead to further buying pressure on the front-month CME futures contract and a higher premium. A continued rise in premium may entice carry traders, leading to more substantial demand in the spot market.”
“The Federal Deposit Insurance Corp. (FDIC), a key U.S. banking regulator, is studying whether certain stablecoins might be eligible for its coverage. Such coverage would insure holders of the tokens against losses up to $250,000 if the bank holding the collateral were to fail.
This is all part of a process by which they are trying to bring stablecoins into the banking system in a responsible manner.
The FDIC has strict rules as to which institutions may call themselves FDIC-insured. Insurance of particular stablecoins and permission to use the FDIC logo would provide clarity about which stablecoins, up to the insurance limit, will not lose value.”
“It was the highest price since May 12, before a crackdown by China on its domestic cryptocurrency and other negative news helped push the price below $30,000. The latest rally has pushed bitcoin’s market capitalization back up above $1 trillion.
If the bulls are looking for a pain point, then the next stop is $60,000, and if they don’f find a pocket of shorts to force out, then confidence will only grow.
Traditional markets are struggling in the current macroeconomic environment with falling stock prices, a potential energy crisis and fears over losses in the Chinese property sector. ‘Global markets are derisking.’
That might mean that ‘bitcoin is arguably becoming more resilient against traditional market turbulence.’ Morris said that the next leg up for bitcoin could come from a further adoption push by Wall Street and traditional financial firms.”
“Each of our four proposals is designed to stand on its own, but taken together, they represent the start to a comprehensive approach to supervision, oversight and taxation in a decentralized environment.
a16z’s consumer protections proposal recommended creating a simple disclosure-based supervision regime under the Consumer Financial Protection Act. DAOs, meanwhile, are to be given similar legal rights to those of a standard incorporated entity, including tax requirements and being allowed to open bank accounts and sign legal agreements.
The firm suggested three ways to shore up regulatory fragmentation and overlap. Those included harmonizing areas of jurisdiction among agencies, establishing an industry self-regulatory organization and setting up a nonprofit for technical oversight.”
See Also: Gensler’s Crypto Testimony: 6 Key Takeaways
See Also: DOJ to Create Crypto Enforcement Group to Fight Cybercrime, Money Laundering
See Also: BIS Outlines How Stablecoins Could Comply With International Money Standards
“Republic Music gives listeners the chance to ‘invest in the music they love for as little as $100 and share in the rights to royalties.’ S-NFTs are a kind of security – something you can invest in with the expectation of profit down the line.
The songs are going to be placed in an LLC, and you will be a member of the LLC. You will have a share of ownership in that song, and a right to the royalty on the back end.
I think in the New World Order, early supporters are going to be rewarded, the artists are going to get paid and the community is going to grow stronger.
That means S-NFTs are overseen by the SEC and the Financial Industry Regulatory Authority (FINRA); investors based in the U.S. will need to comply with relevant KYC / AML regulations.”
“Strips is planning to launch in November with initial functionality that will enable interest rate swaps (IRSs) via automated market makers (AMMs). The product will be launching natively on Arbitrum. IRSs allow users to switch between more volatile floating rates and safer, but lower-upside fixed rates on deposits.
This is something we haven’t found available in DeFi so far, however, it is a huge market in traditional finance – we’re talking about over $6.5 trillion being traded in interest rate markets in a single day.”
“Traditional cross-border payments giant MoneyGram is working with the Stellar blockchain network to create instant money transfers using Circle’s USDC stablecoin.
Working with MoneyGram allows end consumers to have on- and off-ramps everywhere that MoneyGram’s vast agent network supports this. So this is just transformational in terms of being able to exchange crypto for fiat and fiat for crypto.
The news will come as a slap in the face for Ripple, the cryptocurrency payments network whose longstanding relationship with MoneyGram wound down after the U.S. Securities and Exchange Commission (SEC) filed suit against Ripple in December 2020.”