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Secretary Mnuchin Indicates New Cryptocurrency Regulations are Coming

In his testimony before the Senate Finance Committee, on February 12, Treasury Secretary Steven Mnuchin stated that the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) will soon release new regulations related to cryptocurrency. FinCEN is responsible for issuing and implementing anti-money laundering (AML) and counter-terrorist financing (CTF) regulations applicable to certain US financial… Continue Reading

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In his testimony before the Senate Finance Committee, on February 12, Treasury Secretary Steven Mnuchin stated that the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) will soon release new regulations related to cryptocurrency. FinCEN is responsible for issuing and implementing anti-money laundering (AML) and counter-terrorist financing (CTF) regulations applicable to certain US financial institutions. According to Secretary Mnuchin:

We’re spending a lot of time on the issue of cryptocurrencies and digital payment systems …. on pure cryptocurrencies like Bitcoin, and there are others, we want to make sure that these are not used as the equivalent of secret bank accounts. So, we are working with FinCEN, and we will be rolling out new regulations to be very clear on greater transparency so that law enforcement can see where the money is going and that this isn’t used for money laundering.

FinCEN previously issued guidance on virtual currency in 2013 and 2019, which clarify how FinCEN’s existing rules for money services businesses, or MSBs, apply to “administrators,” “exchangers,” and “users” of what the agency calls “convertible virtual currency.” The MSB rules apply to certain persons dealing in fiat currency, convertible virtual currency, and other “value that substitutes for currency,” but does not treat MSBs dealing in convertible virtual currency differently than other types of MSBs. Therefore, if FinCEN were to issue new regulations specifically addressing cryptocurrencies or digital assets more broadly, such regulations would be a first of its kind.

Secretary Mnuchin did not offer any additional details with respect to the timing or scope for any new regulations. Assuming FinCEN used the formal notice and comment process to issue any new regulations, this would be the first opportunity for digital asset companies to formally weigh in on FinCEN’s approach to the industry. The outcome of such a process could have a significant impact on the digital asset industry in the United States. (However, it is possible the agency issues an interim final rule or utilizes another process whereby industry would not be granted the same opportunity to comment).

Secretary Mnuchin also addressed stablecoins and central bank issued cryptocurrencies, telling lawmakers, “There is another component of the market which people refer to as stablecoins, where we do think technology can be used to reduce payment processing quite considerably, particularly for small dollar payments cross-border. And then there’s a third component that people are looking at, which is central bank digital issued currency. That is something that Chairman Powell and I do not think the US needs to consider now, but could consider again down the road.”

Although not clear, his comments with respect to stablecoins suggest there is a possibility that FinCEN might take a different approach toward stablecoins than other types of digital assets in any new regulations. While most regulators in the US have treated varying types of digital assets similarly with respect to AML laws and regulations, there has been some movement toward treating stablecoins differently, as noted in our prior blog post on guidance from the Texas Department of Banking.

Source: https://www.steptoeblockchainblog.com/2020/03/secretary-mnuchin-indicates-new-cryptocurrency-regulations-are-coming/

Blockchain

Shiba Inu’s days in the sun may be over; here’s why

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In a market full of investment-worthy coins, there are a few meme-coins such as Shiba Inu that do not offer much value, be it in terms of use-case or a strong network. Thanks to its strong community though, SHIB managed to surprise the entire crypto space.

However, it seems the community is not what it used to be anymore.

Shiba Inu sees a dump

On September 16, SHIB got listed on Coinbase pro, and people went into a frenzy. The meme-coin witnessed a 28.87% growth in 1 day.

This is the highest single-day growth since May and even then, SHIB could not breach its long-established resistance level of 0.00001010. SHIB has been stuck under it since May.

Shiba Inu’s price rose by 28.8% 48 hours ago | Source: TradingView – AMBCrypto

But that did not stop the SHIB supporters from reacting strongly. Within 48 hours, over 6.04 trillion SHIB was bought out of the market, figures that were last seen on July 26. This further led to the supply on exchanges falling to a 4-month low.

Shiba Inu’s supply on exchanges at a 4-month low | Source: Santiment – AMBCrypto

Why you should stay away from SHIB?

This kind of behavior is the exact reason why SHIB is an untrustworthy asset because it is literally treated like a pump and dump asset. The instances observed yesterday are similar to what we saw at the beginning of the July rally.

Its own community does not take it seriously and only appears during a price rise to cash out as much as possible. Active addresses and transaction volumes remain dormant and pretty low, regularly, and rise only when there is a price rise.

Shiba Inu’s transactions volumes | Source: Santiment – AMBCrypto

In fact, long-term holders cash out at the first sign of profits, too. Yesterday over 3.3 quadrillion coin days were destroyed, levels similar to which were earlier noticed, in July, showing the movement of old coins. If they had kept their holdings instead, the price would have remained stable.

Shiba Inu’s coin days destroyed | Source: Santiment – AMBCrypto

Adding to the pump and dump narrative, is the fact that in less than 24 hours, MVRV fell. Down from the strength of 2.0 into the negative zone at press time.

Shiba Inu’s MVRV in the negative zone | Source: Santiment – AMBCrypto

Simply put, there is no real value coming into the coin from the very loyal SHIB community as of now. However, due to its fanbase and hyped DOGE, it will keep blipping on the crypto radar every now and then.

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Source: https://ambcrypto.com/shiba-inus-days-in-the-sun-may-be-over-heres-why

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Making sense of Solana’s ‘extremely rapid’ growth

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When Solana experienced a crash right after hitting a new all time high on 9 September, traders and experts tried to make sense of the event. On “The Best Business Show,” investment expert Anthony Pompliano interviewed Kyle Samani, co-founder and managing partner at Multicoin Capital, to discuss the rising star-turned-meteor, that Solana has turned out to be.

From 4 cents to over $200

Pompliano began by discussing Multicoin Capital’s investment in Solana. He calculated that the initial investment had gone up roughly 3750 times since the initial round, when one SOL had been at $0.04.

For his part, Samani said,

“Solana today is growing at an extremely rapid pace. Users being on-boarded, assets being issued, stablecoins going into it – all of these things. Look at the last nine days: it’s just a vertical line from, call it a billion in assets to like 10 billion.”

While listing out possible factors for Solana’s success, Samani cited Solana’s speed and network, its NFT platform Metaplex, the rise in SOL’s price, and the stablecoins issued.

Network > Price

Inevitably, Pompliano brought up Solana’s crash – though he admitted calling it so was “hilarious,” in the context of the alt coin’s growth. However, Samani’s answer was a surprising one. He claimed that he tried to ignore prices and didn’t refer to Coin Gecko or Coin Market Cap. Rather, he preferred to focus on Solana’s network and its growth. He further explained,

“Our time horizon is measured in years, not weeks or months. So the question we will always ask ourselves, is you know, is this network compounding at a sufficiently fast rate? And if you really go dig into developer activity, user on-boarding, dollar flow in the system. . .all of those things right now are compounding at an astounding rate and I don’t think that’s going to slow down.”

Furthermore, the following infographic presents data on Solana transfers.

Could Solana kill Ethereum?

Samani spoke about Metaplex and how the NFT platform came during the NFT Boom of summer 2021. He noted Ethereum’s high gas fees and how many users saw Solana as a faster alternative. Even so, Samani admitted that he thought it was “improbable” for Solana to displace Ethereum. Instead he suggested the two would likely co-exist.

Samani also addressed a common criticism aimed at Solana, regarding the its centralized nature, due to the number of validators and the expensive hardware required to run it.

Samani called the criticism “valid” but “irrelevant,” pointing out that the trade-off meant better performance for users, reiterating the network’s rapid growth.

At press time, there were between 974 and 1000 validators on the Solana mainnet. Samani’s assessment of the alt coin was simple but memorable. He said,

“I don’t think there’s going to be another Solana.”

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Source: https://ambcrypto.com/making-sense-of-solanas-extremely-rapid-growth

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Will Bitcoin make a pitstop at $85,000, before racing to $100,000

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Even though Bitcoin has been making no major moves of late, the market’s bullishness on the coin continued making headlines, and all for the right reasons. After all, the king coin surprised the market before, with massive its moves that rendered skeptics silent. 

Bitcoin to $100K, by the end of the year is a much-anticipated move by the market. As we enter the last quarter of this year, Bitcoin is expected to push towards that major psychological barrier. However, even though Bitcoin presented a solid recovery from the May crash, at the time of writing, the effects of the September 7 flash crash hadn’t completely worn out. 

Nonetheless, as BTC presented around 3% daily gains and traded at the $48.5 level at press time, the market once again eyed BTC for some major moves. But before Bitcoin actually makes a move towards the $100K, its last stop would be the $85K mark which will confirm an upward move to $100K. 

The above observation was part of a market report by trading platform Decentrader ,which presented bullish signals in the near term, for BTC. It presented how we it could be setting up for a major run that first reaches $85,000 before breaking through the psychological barrier of $100,000, thereby making for an explosive Q4 2021. 

BTC looking hyper bullish 

In spite of BTC trading below $50K throughout the week, on-chain metrics have led analysts to stay bullish on Bitcoin price action. A report stated that the constantly decreasing supply of BTC on exchanges put upwards pressure on price in the medium term. With demand increasing as supply reduces, the price would go up. 

Further, another factor that contributed to Bitcoin’s bullish mid-term trajectory was its SOPR which presented a similar trend to the months that followed the March covid crash. After the summer crash where SOPR was heavily printing green candles, some minor selling at a loss was observed on this pullback from $50,000 too. Thus, SOPR flashed a sort of buy-the-dip opportunity as final sellers get flushed out before it moves higher, as was observed in Q4 2020. 

Additionally, Active Address Sentiment Indicator had reset with price change lower than active address change. With a pullback in prices alongside constant network growth, the market will look to catch up with network growth by noting price gains. 

Thus, the report presented a hyper-bullish possibility of Bitcoin reaching $85K by the end of Q4. However, Bitcoin’s options market didn’t look too big on gains at the moment with funding rate flashing negative signs. Further BTC’s global open interest by expiry indicated year-end expectations of around $65K which is almost $20K less than the target of $85K. 

So, is $100K too far?

Well, not really. The reason being that, from the July local low of around $30K Bitcoin registered almost 75% gain to reach the multi-month price high of over $52K. Notably from the current consolidating prices, another 75% price gain would land Bitcoin to $85K. So a rally like that over the next three months won’t be a big surprise. 

Thus, while BTC was consolidating, a squeeze upward should characterize the remainder of this year, similar to events from 2020. 

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Source: https://ambcrypto.com/will-bitcoin-make-a-pitstop-at-85000-before-racing-to-100000

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