7 April

“With the release of the minutes this month, the Fed is laying the groundwork for its upcoming meeting on May 4-5.

Participants generally agreed that monthly caps of about $60 billion for Treasury securities and about $35 billion for agency MBS would likely be appropriate.

In the 2017-19 period, when the Fed last attempted to shrink its balance sheet, the maximum reduction was capped at $50 billion, significantly lower than what the central bank is signaling this year.

U.S. stocks were already down ahead of the meeting, after several Fed officials hinted at what was discussed. Bitcoin (BTC) is down 5% over the last 24 hours.”

See Also: Observers Cautious for Bitcoin as US Inflation-Adjusted Bond Yield Hits 2-Year High

“A leading member of the Senate Banking Committee introduced a bill Wednesday to create a three-pronged regulatory framework for stablecoin issuers in the U.S.

As written, the discussion draft of the bill would define a “payment stablecoin,” authorize the Office of the Comptroller of the Currency (OCC) to create a new license specific to stablecoin issuers, allow insured depository banks to issue payment stablecoins and address state regulatory oversight of this segment of the crypto industry.

“Payment stablecoins” would include stablecoins issued by a centralized entity, are pegged to and can be converted to a fiat currency (or currencies), are “designed to be widely used as a medium of exchange,” do not confer interest and where transactions are recorded on a “public distributed ledger.”

Issuers would be subject to a disclosure regime that would require them to secure regular attestations, detail redemption policies and specify what actually backs the stablecoins they issue. OCC-licensed issuers would also have access to the Federal Reserve’s master account system, which would give them the ability to tap the broader financial system and larger amounts of liquidity in transacting.

The discussion draft of a bill is meant to circulate and garner feedback, rather than be immediately introduced as possible legislation. Toomey noted that stablecoins are currently mainly used for cryptocurrency trades, but suggested they could be used in the broader economy in future.”

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“Many have worried about Russia using crypto to get around U.S. sanctions. Treasury Secretary Janet Yellen says there’s no evidence this is happening on a large scale. Yellen alluded to the fact that large transactions would be easily viewable on public blockchain explorers—and spotted by private analytics firms.

We haven’t seen significant evasion through crypto so far. Trying to use crypto at a large scale, simply, we think is something that is not easy to do.”

“Fundamentally viewed as a protocol standard designed to optimize and unify the technical parameters of yield-bearing vaults, the newly passed ERC-4626 is gaining traction within the Ethereum community. The ERC-4626 standard is expected to enact widescale benefits across Ethereum’s decentralized finance (DeFi) ecosystem, enhancing the composability and accessibility of yield-bearing vaults across multiple networks.

To build a single app on top of DeFi’s yield-bearing tokens, you have to write dozens of complex, error-prone adapters that can handle each unique variation. If you “build an app on top of one ERC-4626 vault, […] it will work for all other ERC-4626 tokens.”