“Bitcoin traded lower on Tuesday as investors reacted to a widely expected 75 basis point (BPS) interest rate hike by the Federal Open Market Committee (FOMC).
The issues driving the Fed’s continued monetary hawkishness were more important than the size of the interest rate hike. [Notably], the federal funds rate is projected to increase to 4.4% by year’s end and close to 4.6% by the end of 2023, indicating equally aggressive rate hikes through the remainder of this year.
Estimates for higher, future interest rates and muted expectations for economic growth, are likely to present a hurdle for asset valuations. Thus, today’s report implies that bitcoin and other risk assets will continue to face challenges.”
“Leaders of the House Financial Services Committee continue to negotiate the terms of a proposed bill to regulate stablecoins, even as the window to act draws increasingly narrow heading into the midterm elections.
The latest draft legislation would ban algorithmic stablecoins like TerraUSD (UST) for two years, while regulatory agencies conduct a study of “endogenously collateralized” tokens. “Endogenously” means something produced or synthesized within the organism or system.
Prior versions of the bill required stablecoin issuers to maintain 1:1 liquid reserves for all stablecoins in circulation and would also limit the types of assets that could back them. The latest draft goes even further. The stablecoin bill now provides a path for banks and other financial institutions to issue stablecoins, working with their existing network of regulators.
The committee could bring the bill up for a vote as soon as next week.”
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“Tether has been ordered by a U.S. judge in New York to produce financial records relating to the backing of USDT as part of a lawsuit that alleges Tether conspired to issue the stablecoin as part of a campaign to inflate the price of bitcoin (BTC).
The order requires Tether to produce “general ledgers, balance sheets, income statements, cash-flow statements, and profit and loss statements” as well as records of any trades or transfers of cryptocurrency or other stablecoins by Tether including information about the timing of the trades. It also orders Tether to share details about the accounts it holds at crypto exchanges Bitfinex, Poloniex and Bittrex.”
“The move by Societe Generale, which had over $1.6 trillion in assets as of 2021 and is among the largest banks in Europe, demonstrates the appetite by mainstream financial institutions to offer crypto-related services to their clients as demand increases.
The services will allow the asset managers to offer crypto funds in a “simple and adapted” way within a framework that is compliant with European regulations, the bank said Wednesday. The service has been adopted by French asset manager Arquant Capital SAS, which is opening a range of funds investing in crypto, starting with two products based on bitcoin (BTC), ether (ETH) and derivatives.”
“NFTs have become the biggest crypto on-ramp for countries in Central and Southern Asia, as well as Oceania, according to a report from Chainalysis on Wednesday.
The blockchain analytics firm noted that, in Q2 2022, 58% of web traffic from these countries to crypto services was NFT-related. Another 21% of traffic to crypto services was related to play-to-earn blockchain games, which reward players with cryptocurrencies and often integrate NFTs into their gameplay.
Besides NFTs and play-to-earn games, cryptocurrency is also growing popular as a remittance tool in these regions. Consistent with the popularity of remittance payments and NFTs, the two most actively traded crypto assets in these countries are stablecoins, Ethereum, and Wrapped Ethereum.”
“Nova Labs and T-Mobile have partnered to launch Helium Mobile, a 5G wireless service for smartphones. It will use Helium’s decentralized, crypto-powered 5G network as well as T-Mobile’s network, and switch between the two as needed.
Nova Labs says the service will offer two significant economic differentiators from traditional services: plans will start at just $5 per month, and users can also optionally earn crypto token rewards for sharing data.
Helium Mobile will allow users to opt into receiving the network’s MOBILE token rewards in exchange for providing anonymized data about their network usage. Renski said that the service will treat such users as contributors, as the data will be used to monitor network quality and availability as it scales
Set to launch in the first quarter of 2023, T-Mobile and Nova Labs have signed a five-year agreement to power the service.”