2 November

A group of U.S. regulators urged lawmakers to subject stablecoin issuers to the same strict federal oversight as banks, in a highly anticipated report released Monday.

Congress should also require custodial wallet providers to be regulated by a federal agency and limit stablecoin issuers’ interactions with non-financial companies such as tech or telecom providers, the President’s Working Group for Financial Markets said. The latter recommendation appeared to be aimed squarely at Diem.

Without the safeguards, I think the industry and regulators alike think we might miss out on some potential benefits of financial innovation. I think there’s a common appreciation of needing a framework that isn’t too onerous, provides protections and can keep the innovation moving forward.

Treating stablecoin issuers like other federally regulated insured depository institutions would address risk concerns, the report said, going so far as to say that these types of institutions should be the only entities able to issue stablecoins. The report notes that a single entity might not be responsible for all parts of a stablecoin’s operations. It broke the stablecoin process down to three components: the token’s issuance, how it’s exchanged and how it’s stored. Legislation should address all three components.

If Congress fails to pass such laws, the regulatory agencies have the authority to take their own measures. Congress may be willing to get involved. Members of both the Democratic and Republican parties have been engaged in discussions around regulating cryptocurrencies at large and stablecoins in particular.

The legislation would apply to stablecoin issuers that are headquartered in the U.S., operate stablecoins that people in the U.S. can access or otherwise have a strong tie to the U.S.”

See Also: Why Stablecoin Regulation Isn’t ‘Urgent’
See Also: Ethereum Is Now the Primary Collateral for Decentralized Stablecoin DAI

Bitcoin tends to gain 11%-18% in the fourth quarter, which is one reason why some analysts have maintained their bullish outlook on crypto prices for the remainder of the year. It appears that BTC has followed a seasonal pattern with a sell-off earlier this year and a volatile September, although the downside was limited as traders entered to buy on dips.

Despite wild price swings, bitcoin’s long-term uptrend remains intact.

Aside from open interest, the euphoria seen from the rise in meme coins last week, notably SHIB, could contribute to a leverage flush in the short term, due to the increase in retail traders.”

See Also: Institutional managers bought $2B worth of Bitcoin in October
See Also: Pension Funds Wade Gingerly Into Crypto Investments

“In a blog post published on Sunday, Vitalik Buterin voiced his support for utilizing the cryptocurrency phenomena to serve the interests of local governments and their citizens. Buterin claimed that city tokens should satisfy at least three of the following five objectives:

  • Act as a sustainable source of revenue for the government
  • Facilitate economic cooperation between residents and the city
  • Promote saving and wealth-building for all stakeholders
  • Encourage city-wide social initiatives
  • Reduce wealth inequality

21st-century digital democracy through real-time online quadratic voting and funding could plausibly do a much better job than 20th-century democracy.”

See Also: eNaira slowly gains traction post-launch amid glitches

China’s Big Tech appears to be facing increasing pressure over the companies’ involvement with NFTs. The market hype around the unique digital assets appears to have made regulators worried that NFTs are edging too close to crypto trading.

Ant Group and Tencent recently changed references on their websites and platforms from NFTs to “digital collectibles,” likely to put more distance between their products and crypto markets. NFTs have, up to this point, mostly been exempted from China’s crackdown on crypto.”

See Also: Sorare CEO shares bold vision on NFTs during Web Summit 2021 opening night

“From Nov. 1 through Nov. 21, Burger King customers in the United States who spend $5 or more will be given free crypto, primarily in the form of Dogecoin (DOGE), the company announced Monday. A few lucky customers will have the opportunity to win a whole Bitcoin (BTC) or Ether (ETH). Users must register with Robinhood Crypto to receive the reward.

From a business perspective, cryptocurrencies are becoming too big to ignore, with several corporations experimenting with digital assets and nonfungible tokens, or NFTs. The crypto rewards will be drawn from a total prize pool of 2 million DOGE, 20 BTC and 200 ETH.”