Riding The Wave News Summary 124
US agencies recommend old risk management principles for crypto liquidity, Solana Validators to Make Second Restart Attempt as Transaction Freeze Drags On, & more.
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US agencies recommend old risk management principles for crypto liquidity
Solana Validators to Make Second Restart Attempt as Transaction Freeze Drags On
FSB, IMF and BIS papers to set global crypto framework, says G20
This Week on Crypto Twitter: NFT Community Wants Creator Royalties Back
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US agencies recommend old risk management principles for crypto liquidity
In a joint statement released by three United States federal agencies, the banking sector was advised against creating new risk management principles to counter liquidity risks resulting from crypto-asset market vulnerabilities.
The Board of Governors of the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) released a statement reminding banks to apply existing risk management principles when addressing crypto-related liquidity risks.
While the trio agreed that “banking organizations are neither prohibited nor discouraged from providing banking services” as per the law of the land, it recommended active monitoring of the liquidity risks and establishing and maintaining effective risk management and controls over crypto offerings.
The agencies recommended four key practices for effective risk management to banks, which include performing robust due diligence and monitoring of crypto assets, incorporating the liquidity risks, assessing interconnectedness between crypto offerings and understanding the direct and indirect drivers of the potential behavior of deposits.
The statement highlighted the possibility of changing crypto regulations with references to agencies’ “case-by-case approaches to date.”
Solana Validators to Make Second Restart Attempt as Transaction Freeze Drags On
The Solana network’s deep freeze continued Saturday as validators were preparing a second restart attempt that they hoped would restore service to users of the blockchain.
By evening New York time, validators running Solana’s infrastructure had long since concluded that the best way to right the chain would be to synchronize a restart and fork the chain. A first attempt was abandoned when validators realized they picked the wrong point at which to restart, further lengthening the delay.
The problems that started as sluggish transaction processing have spiraled into a near complete shutdown of activity on Solana, validators and developers told CoinDesk. The chain’s block production has ceased and transactions aren’t processing or being validated.
At press time validators, working in conjunction with developers at Solana Labs, were again attempting to restart the chain and had gotten some 70% of total stake behind the move. The network needs an 80% supermajority to proceed.
FSB, IMF and BIS papers to set global crypto framework, says G20
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