- Fed Chair Jerome Powell said in a webinar today that stablecoins are a “high-level focus” for the central bank.
- Powell said the Fed is primarily concerned about the financial risks posed by stablecoins.
- Central bank digital currencies, or CBDCs, are also on the Fed’s radar.
Federal Reserve Chair Jerome Powell said in a webinar today that providing “regulatory answers” for stablecoins is a “high-level focus” for the central bank.
The webinar was hosted by Yahoo Finance, and was essentially an interview conducted by the Princeton economist Markus Brunnermeier.
“We’ve been very focused… on potential regulatory answers for global stablecoins, in particular,” said Powell in response to a question about CBDCs, or central bank digital currencies.
“So that’s been a high-level focus, and that will continue to be a high-level focus because they could become systemically important overnight and we don’t begin to have, you know, our arms around the potential risks and how to manage those risks, and the public will expect we do and has every right to expect that… It’s a very high priority.”
European Central Bank President Christine Lagarde evidently shares a similar view. Last November, she published an op-ed which warned that stablecoins, if widely adopted, could “threaten financial stability and monetary sovereignty” around the world. Other global financial bodies, such as the G7 and G20 international forums, have expressed similar concerns.
Powell didn’t go into detail about how exactly the Fed plans to approach going forward, but his tone suggests these sorts of private digital currencies are very much on the bank’s radar.
Regarding CBDCs, Brunnermeier asked Powell whether he was interested in waiting to see how they performed in smaller countries first, before experimenting with a digital version of the US dollar.
Powell said as much, explaining that there’s no reason the US needs to get there first. “Since we are the world’s reserve currency, we actually think we need to get this right, and we don’t feel an urge or need to be first,” he said. “We effectively already have a first mover advantage, because we’re the reserve currency.”
China is currently rushing to build its own CBDC, and South Korea, Thailand, Japan, and France are all exploring their options.
Bitcoin Price Analysis: BTC Breaks Long Term Trend As Tesla Ditches It
Bitcoin has broken out of a long 3 month range of $10,000. After Elon Musk announced Tesla will no longer be accepting BTC due to environmental reasons, BTC broke its major support of $55,000 and quickly fell over 15%. BTC is now is now in scary waters.
While looking at the chart, BTC has broken a long term trend that has been held for nearly 6 months. This is not a good sign as there is much FUD spreading about Bitcoins environmental impact. BTC must hold major support range of $46,500-$48,000 or we can experience a large fall to $40,000. As of now, the 150MA has held the price of BTC as it touched this moving average for the first time in 6 months.
Bitcoin Price Analysis: BTC/USDT 1 Day Chart
If BTC can break above $48,000 and hold, there will be a decent revival to $51,400. In the case that BTC holds this resistance, next up is $54,400. BTC has grown over 1000% in a year. With this being said, there is a good chance more downside might occur before BTC resumes a bullish uptrend.
While looking at the Stochastic RSI, we can see that strength has reset to oversold levels. If the strength can bound above 30, expect a revival to minimum $51,400. The regular RSI also confirms a small bullish upswing as it has printed a bullish divergence. This occurs when price makes a Lowe low but RSI makes a higher low.
BTC intraday levels
- Spot rate: $48,100
- Trend: Bearish
- Volatility: High
- Support: $46,400
- Resistance: $48,000
Standard Custody takes new route to ‘qualified custodian’ status
It’s the first digital asset firm to receive approval on a de novo application for a New York trust license.
The post Standard Custody takes new route to ‘qualified custodian’ status appeared first on The Block.
Standard Custody received its license to operate as a New York state-chartered trust on May 4, and it’s already making a play to gate-crash the institutional custody space.
Just days after its licensing, the firm announced the close of a $53 million Series B round for its parent firm, PolySign.
Cowen Digital Asset Investment Company led the round with a $25 million strategic investment. The two will also partner, with PolySign providing digital asset custody solutions for Cowen clients through its newly licensed trust arm, Standard Custody. Blockchain.com and Race Capital also participated in the round.
Through Standard Custody, PolySign is looking to fill a gap in the custody space. While many crypto firms are attempting to build all-in-one services, with exchange, brokerage and custody housed under the same roof, CEO Jack McDonald says Standard Custody plans to differentiate itself by focusing solely on custody-based services for institutions.
Though Standard Custody plans to expand its range of services, McDonald says it will stop short of being an exchange unlike others in the custody space.
“We think that ultimately the institutions that are wading into the space, more and more of the traditional institutional asset managers, are going to want to see a segregation of duties there between exchange activity and custody activity,” he said.
That could mean hedge funds, family offices, endowments and exchanges could make up its client base going forward, but not retail-facing activities. Others serving the retail market have expressed interest in Standard Custody’s services, mostly due to its recent licensure. It’s the first to get approval for a de novo trust application in New York, and that’s positioning it to emerge as a favorable partner for a variety of clients, according to McDonald.
To build out custody and escrow services, Standard Custody needed to be a qualified custodian. There’s more than one way to gain the distinction, but some fit better than others. To be a qualified custodian, firms can either become a registered broker-dealer with the Financial Industry Regulatory Authority (FINRA), a futures commodities merchant regulated by the Commodities Futures Trading Commission (CFTC) or you can be a federally or state-licensed trust bank.
For firms mainly looking to custody, it makes the most sense to become a trust but it’s recently become unclear how far a trust license extends outside state borders. The Securities and Exchange Commission (SEC) is currently seeking comment on how it should view state-licensed qualified custodians in the wake of a letter from Wyoming’s regulators. On the national level, Congress is still debating how much power the Office of the Comptroller of the Currency (OCC) should have to designate digital asset firms as national trusts and therefore qualified custodians.
Still, a New York trust license from the New York Start Department of Financial Service is the gold standard of state licenses. It’s the highest barrier of the state licensure frameworks, and also has more reciprocity than other states, meaning some other states recognize the New York trust charter and don’t require an additional license. Standard Custody is the first to receive a de novo approval, meaning it’s operating a new business as opposed to converting a previous entity like Gemini and Coinbase. That’s made it more attractive to businesses looking to set up shop in the U.S. without going through onerous regulatory frameworks.
“We do have a lot of interest in our technology from some of the more retail-oriented strategics out there and specifically wanting to tap our capabilities to business in New York and more broadly in the U.S.,” said McDonald.
© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Elon Musk Manages to Send Dogecoin Up Again
It is hard to understand Elon Musk at times. There are moments when he appears to be quite clear regarding cryptocurrency, and other days when he seems to be way off the mark. Either he does not fully understand the influence he has on the space, or he does and says certain things knowing they will have certain impacts. Either way, he has now sent Dogecoin through the roof again with his latest words following the rough week it has had.
Elon Musk and Dogecoin Are Mixing Things Up
Over the past day, Dogecoin – now the fourth largest cryptocurrency in the world – has jumped in price by about 30 percent. This is huge considering the currency had fallen roughly 20 percent prior. The drop largely had to do with Elon Musk renouncing his decision to allow bitcoin payments for Tesla-based services and products. In addition, Vitalik Buterin – the co-founder of Ethereum, the world’s second largest cryptocurrency by market cap – sent more than one billion Doge units to a COVID relief fund in India, a move that had harsh repercussions.
Either way, the asset appears to be on a path towards recovery. Elon Musk is assuring crypto traders everywhere that he has full belief in the crypto system, and he is positive it is the future of finance. He appears concerned that his latest words were taken out of context, and he is trying to remedy the situation. He states:
To be clear, I strongly believe in crypto, but it cannot drive a massive increase in fossil fuel use, especially coal.
Basically, while he thinks there is a lot of power in crypto usage, he is worried that the mining of certain cryptocurrencies – particularly bitcoin – will do environmental harm that cannot be reversed down the line. This is an argument that is as old as the dickens, yet for some reason, it continues to make heavy headway, and many are arguing against BTC simply because they carry atmospheric concerns.
How Big Is the Mining Problem?
In the past, it has been stated that bitcoin mining now uses more energy than countries such as Iceland and Argentina. It is also said that it has as big a carbon footprint as the entire city of Las Vegas, Nevada. One of the primary problems with the mining sector as of late is that much of the activity stems from China, a country not known for its environmental prowess. Much of the BTC mining operations in the nation require fossil fuels and coal to operate, which tend to leave more pollutants in the air.
Thus, Kevin O’Leary – aka Mr. Wonderful on the television program “Shark Tank” – has commented that he will not be buying any more bitcoin mined in China. In a recent interview, he likened the asset to “blood money,” and stated that he will only be garnering bitcoin sourced from hydroelectricity and other clean methods.
Billionaire Druckenmiller says ledger-based system could replace USD worldwide
Bitcoin Vault inks major deal with ESE to co-produce Gaming & Esports Talent Show in five countries
XRP Lawsuit ramifications: Is the SEC hurting the same community it vows to protect?
First Spot: Coinbase’s App Surpassed TikTok, Instagram, and Facebook on iOS in the US
Raze Network Kicks Off Testnet Phase With UI Community Voting
dotmoovs Raises $840,000 From Strategic Investors and Partners
The challenges with designing a CBDC, explained
Casper Network’s CSPR Spot Trading Now Open on OKEx
How did Internet Computer (ICP) become a top-10 cryptocurrency overnight?
When dollars meet the hype: The biggest NFT hits from celebrities
PARSIQ Integrated Into Polkadot For Smart Triggers Across the Relay Chain
US Investment Bank Cowen to Offer Crypto Custody Services
Uniswap flips Bitcoin on daily revenue… and it’s more impressive than you think
Polkadot, Cosmos, Bitcoin Cash Price Analysis: 11 May
DeFi lending platform Aave reveals “private pool” for institutions
From cypherpunk to state contracts: the changing face of blockchain
TA: Ethereum Overcame Odds With New High, Here’s Why ETH Could Test $4.5K
MoneyGram to Enable Users to Buy Bitcoin and Withdraw it From Birck-and-Mortar Locations
eBay Now Allows the Sale of NFTs on its Platform
Griff Green: Doge-loving hippy hacker steals crypto before bad guys can
Blockchain1 week ago
Crypto Market Cap Added $300B in 7 Days as Altcoins Explode: The Weekly Recap
Blockchain5 days ago
Palantir Accepts Bitcoin for Payments and Considers Adding BTC to Balance Sheet
Blockchain1 week ago
Ray Dalio’s Bridgewater CFO leaves to work on Bitcoin full-time
Blockchain1 week ago
Ethereum price closes in on $4K as Shiba Inu (SHIB) steals Dogecoin’s thunder
Blockchain1 week ago
CFO of World’s Largest Hedge Fund Joins Institutional Bitcoin Firm NYDIG
Blockchain1 week ago
Banking Giants Goldman Sachs and Citi Warm Up to Offering Bitcoin (BTC) Services
Blockchain1 week ago
Ethereum (ETH) Hits $3800 ATH As Coinbase Premium Shoots With Institutional Interest
Blockchain1 week ago
Crypto Banter Will Give Away Over $500K To 10 Eligible Community Members