Buffett and Ackman take opposing sides on Treasury yields — What does it mean for Bitcoin?
Two investment moguls are betting on different directions for inflation and Treasury yields, with potentially negative impacts on Bitcoin.
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Značka: treasury
Could a Bitcoin bull run be triggered by Fitch’s US credit rating downgrade?
Fitch downgraded the US credit rating due to its government debt and potential challenges in handling its fiscal responsibilities. Will Bitcoin price benefit from this decision?
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Where’s the recession? These 3 economic indicators can alert investors to a market downturn
Analysts have called for a U.S. recession all year, but stocks continue to creep higher. Here are three metrics investors can watch to know if an economic downturn is coming.
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US Treasury yields are rising — What does it mean for Bitcoin price?
The 5-year U.S. Treasury yield reached its highest level in 3 months, but the typical inverse correlation-based price action with Bitcoin might not work this time.
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Crypto lobbyists still fighting to axe 'unlawful' Tornado Cash sanctions
The crypto industry advocacy group has placed its support behind Coin Center and its lawsuit against the U.S. Treasury over its Tornado Cash sanctions.
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Bitcoin, gold and the debt ceiling — Does something have to give?
Traders are still tiptoeing around markets, as multiple risk events remain at the forefront, but BTC margin and futures markets are starting to favor a bullish breakout.
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Will $28K Bitcoin price hold? Two indicators remain solid despite 5% pullback
BTC margin markets and futures’ long-to-short indicator show professional traders unwilling to bet on Bitcoin’s price dropping.
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Coinbase met with Australian banking regulators over local crypto regulations
Coinbase’s vice president of international policy told Cointelegraph the meetings took place in Canberra and Sydney and touched on the government’s token mapping efforts.
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Aussie treasurer promises crypto regulation next year amid FTX debacle
The Australian government has doubled down on its commitment towards a robust regulatory framework for crypto following the catastrophic collapse of FTX last week.A spokesperson for Australian Treasurer Jim Chalmers said the Treasury said it is now planning on regulations to improve investor protection next year, according to a Nov. 16 report from the AFR. The spokesperson made the announcement in light of the FTX’s fall last week, stating that it was closely monitoring the fallout from the FTX collapse, “including further volatility in crypto-asset markets and any spillovers into financial markets more broadly,” adding:“These developments highlight the lack of transparency and consumer protection in the crypto market, which is why our government is taking action to improve the regulatory frameworks while still promoting innovation.”The call for fast-tracked regulation comes as 30,000 Australians and 132 companies have fallen victim to Sam Bankman Fried’s fallen empire. Michael Bacina, Digital Asset Specialist at Piper Alderman lawyers told Cointelegraph that regulation was the only way forward to re-establish the much-needed trust in trading platforms:“Regulatory certainty is key to rebuilding trust in relation to centralized exchanges, and while law cannot eliminate bad behavior, it can set powerful norms and standards which make that behavior easier to find.”While Danny Talwar, the head of tax at crypto tax platform Koinly added that a robust regulatory regime may fill in the holes where retail investors are left to be exploited:“Following the FTX fallout highlights the need for sensible regulations within the crypto world, both domestically and across the globe, in order to eliminate uncertainty and remaining grey areas and provide clarity around digital assets — especially for retail consumers.”“[But] the challenge will be ensuring that regulation does as intended to effectively protect consumers without suppressing industry growth,” he added.As for what the regulation may entail, Talwar noted that while Australian trading platforms must comply with the Australian Transaction Reports and Analysis Centre (AUSTRAC), recommendations have been put forward to establish a market licensing regime.The regime would include “capital adequacy and auditing standards to demonstrate the operational integrity” of trading platforms, which Talwar stressed is of great importance given that many exchanges are offering high yield products at a heightened risk in order to gain a competitive edge. Related: Australian prudential regulator releases roadmap for cryptocurrency policyBacina also stated that the “measured approach” taken by the Australian government could also position the country to become an industry leader in digital asset regulation:“When Australia brings in technology-enabling custody rules for centralized holders of crypto-assets, we will either be a leader in the space, or catching up, depending on how fast other jurisdictions, like Singapore and Europe, move to make rules.”The Treasury is also looking to provide greater protection to investors by establishing a “token mapping” system, which will help identify how certain digital assets should be regulated, according to an Aug. 22 statement by Assistant Treasurer Stephen Jones.
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Australia's new government finally signals its crypto regulation stance
Three months after being elected into power, the Australian Labor party has finally broken its silence on how it’s planning to approach crypto regulation. Treasurer Jim Chalmers announced a “token mapping” exercise, which was one of the 12 recommendations in a senate inquiry report last year on “Australia as a Technology and Financial Center.” The report was warmly welcomed by the industry which has been anxiously waiting to see if the ALP government would embrace it.Aimed at being conducted before the end of the year, the token mapping exercise is expected to help “identify how crypto assets and related services should be regulated” and inform future regulatory decisions. Cointelegraph understands that Treasury will also undertake work on some of the other recommendations in the near future, including a licensing framework for crypto asset service providers dealing in non-financial product crypto assets, appropriate requirements to safeguard the consumer crypto asset custody, and a review of the decentralized autonomous organization (DAO) company-style structure.In a statement from Treasurer Jim Chalmers, along with Assistant Treasurer and Minister for Financial Services Stephen Jones, and Assistant Minister for Competition, Charities and Treasury Dr. Andrew Leigh, the Albanese-led government says it wants to reign in on a “largely unregulated” crypto sector.“As it stands, the crypto sector is largely unregulated, and we need to do some work to get the balance right so we can embrace new and innovative technologiesThe statement noted that more than one million taxpayers have interacted with the crypto ecosystem since 2018, and yet, “regulation is struggling to keep pace and adapt with the crypto asset sector.”The politicians claimed that the previous Liberal-led government had previously “dabbled” in crypto asset regulation through crypto secondary service providers “without first understanding what was being regulated.”“The Albanese Government is taking a more serious approach to working out what is in the ecosystem and what risks need to be looked at first.”Speaking to Cointelegraph, Michael Bacina, partner at Piper Alderman, said the token mapping exercise will be an “important step” to bridge the significant education gap within regulators and policymakers. “Australia punches above its weight in blockchain right now but we have seen regulatory uncertainty lead to businesses leaving Australia,” he said.Related: Australia’s world-leading crypto laws are at the crossroads: The inside story“A sensible token mapping exercise which helps regulators and policy makers understand in depth the activities they are looking to regulate and how the technology interfaces with those activities should help regulation be fit for purpose and both support innovation and jobs in Australia while protecting consumers,” he added. Caroline Bowler, CEO of BTC Markets said the move mirrors calls from many in the industry for “proportional, appropriate regulation” of the sector. “The additional benefits of token mapping are many. It will provide greater clarity to crypto investors; aid companies in developing their own blockchain-based innovations; provide guidance to digital currency exchanges; as well as assist regulators in shaping an appropriate regulatory regime,” she said. However Dr. Aaron Lane, a senior lecturer at the RMIT Blockchain Innovation Hub, believes the token mapping exercise is something of a delaying tactic by the Labor government: “Progress is progress — but it is disappointing that we are not further along the path to greater regulatory certainty for industry and greater protections for consumers.”“Unfortunately, they’ve needed to buy themselves time with a token mapping exercise to allow them to get up to speed,” he added. Progress is progress. But let’s be clear though – it is not the first time token mapping has been done. See this, for example, from the UK in 2019. #cryptolaw https://t.co/rghWmklDJv— Aaron Lane (@AMLane_au) August 21, 2022
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LidoDAO rejects sale of 10M LDO tokens to Dragonfly Capital
LidoDAO, the governance body that controls Lido Finance, has voted to reject a proposal that would have sent 1% of the LDO token supply to Dragonfly Capital in exchange for about $14.5 million in DAI.LDO is the native token on the Lido Finance protocol, which issues the Lido Staked Ether (stETH) token. DAI is the dollar-pegged stablecoin issued by the Maker Protocol. If it had passed, crypto VC Dragonfly Capital would have received 10 million LDO tokens at $1.45 each. A total of 609 votes were cast across three options, but the proposal was ultimately rejected with 43 million total tokens in favor of rejection. Nine whales whose collective 40.3 million tokens comprised the vast majority of the weight of the votes. The other two options were each in favor of the proposal either with a one-year lockup on the LDO tokens or with no lockup. This vote was for the first half of the total 20 million LDO token allocation stipulated in the proposal. The second portion of 10 million LDO tokens could be sold to LidoDAO’s treasury, but it is unclear whether that vote will take place following this first rejection. Lido’s treasury is currently valued at about $228 million as of the time of writing.The July 18 proposal issued by DAO member Jacob Blish aimed to secure a two-year runway for LidoDAO to carry out its functions in the Lido Finance protocol without worrying about further fundraising. Blish stated: “This will ensure Lido and its core contributors are able to continue the important work needed for the protocol in the long term and to flourish as an autonomous, self-governing collective.”Blish added that the proposal specifies accumulation of stablecoins to ensure that Lido can remain in a “steady state to ensure survivability and security for Lido independent of further market actions.”Lido community members appear nonchalant about the outcome of the vote as the project’s Discord and Twitter accounts have been silent since the results came in. With the rejection, the proposal will go back to the drawing board and possibly be voted on again.Dragonfly Capital, led by Haseeb Qureshi and Bo Feng, has at least 57 companies in its crypto and Web3 investment portfolio. The firm closed a $650 million funding round in April.Lido allows ETH investors to stake their coins in preparation for the Ethereum network’s transition to Proof-of-Stake (PoS) consensus expected by September. Related: Lido co-founder discusses the future of Ethereum at EthCCThe LDO whale who swung their considerable weight of 17 million tokens to reject the proposal has voted in favor of another ongoing vote at LidoDAO that will add a developer to one of the project’s multi-sig wallets if passed. This proposal is designed to increase the security of the protocol’s funds.
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US Treasury study finds CBDCs a plus for commercial bank stability
The introduction of a central bank digital currency (CBDC) may increase the stability of a banking system, according to a paper released Tuesday by the United States Treasury Office of Financial Research. This finding counters concerns that a CBDC may encourage runs on weaker banks. According to the July 12 paper, researchers often claim that the public may in times of financial stress “pull funds out of banks and other financial institutions” meaning that a “CBDC could make runs on financial firms more likely or more severe.”The authors however argued that a well-designed CBDC can mitigate that risk, and also offered two arguments that favored the role of CBDCs in increasing financial stability. First, the authors created a mathematical model in which banks performed maturity transformation, that is, they borrowed money for shorter periods than they made loans for, to insure against liquidity risk. This could create financial fragility in case of an adverse event, and that could lead to a bank run. In the authors’ model, however, access to a CBDC “intuitively” makes “experiencing a liquidity shock” less costly to depositors, so banks can provide less insurance against this risk. Thus, a CBDC leads to greater stability of the financial system.“In this way, the adjustments in private financial arrangements in response to a CBDC may tend to stabilize rather than destabilize the financial system.”The second argument was based on a so-called information effect. Banks in weak positions may try to hide that fact from regulators to avoid intervention. Hiding unfavorable information could also make the crisis worse because of delayed response. Related: BIS: 90% of Central Banks are researching the utility of CBDCsHowever, the nature of CBDCs will allow policymakers the ability to identify situations where funds are being converted, and not simply withdrawn from a bank — thus spotting problems sooner which can lead to a faster resolution.“By allowing a quicker policy reaction to a crisis, this information effect is another channel through which CBDC may tend to improve rather than worsen financial stability.”The authors point out that other researchers have suggested imposing caps, fees or other restrictions on CBDC during crises. The authors argue against this approach, noting:“Policies that limit the use or attractiveness of CBDC risk losing many of its potential benefits as well.”They also argue that the benefits of the greater information available to policymakers in the presence of a CBDC may have a variety of beneficial uses.
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