In the world of crypto, the past week has seen some major events unfold, including a crypto market crash, stablecoin uncertainty, exchanges migrating overseas, and Chinese banks taking on crypto clients. Additionally, the world’s largest tech company, Apple, has begun offering high yields on deposits, which could incentivize even more money to flow out of small banks. Let’s dive into the top stories of the week.
Crypto Market Crash Sends Major Coins Tumbling by More Than 10%
Leveraged long positions liquidated for over $250 million, causing a cascade of long liquidations and a drop in prices. The crash was likely caused by a combination of factors, including sentiment getting too bullish and institutional investment being discouraged by regulatory uncertainty and the shutting off of crypto to fiat ramps.
Stablecoin Uncertainty Increases as U.S. Politicians Declare Congress is Starting from Scratch on Stablecoin Regulations
Following an intense hearing with SEC Chairman Gary Gensler, regulatory uncertainty around stable coins has increased. Institutional investors have been investing indirectly in cryptocurrencies like BTC and ETH through paper derivatives found on traditional exchanges like the CME. However, regulatory uncertainty, especially around stable coins, has discouraged direct crypto investment by institutions.
Exchanges Migrate Overseas as the EU Clarifies Crypto Regulations and Chinese Banks Take on Crypto Clients
Coinbase and Gemini have established global operations as the EU clarifies crypto regulations, while Chinese banks take on crypto clients. This could mean increased adoption of cryptocurrencies and more favorable regulations for crypto in the EU.
Apple vs. Banks: The World’s Largest Tech Company Begins Offering High Yields on Deposits
Apple’s move to offer high yields on deposits could incentivize even more money to flow out of small banks. This could impact the economy, as small banks rely on deposits to fund loans and invest in the community.
Gary Gensler Hearing: SEC Chairman Believes Stablecoins Are Used for Crypto, Not Payments
Subheading: During the recent House Financial Services Committee hearing, Gary Gensler stated that all cryptocurrency stable coins are used for crypto, not payments. This could have significant implications for stablecoin issuers, such as Circle, which have been lobbying U.S. politicians to pass regulations that would give the FED authority over payment stable coins