Riding The Wave News Summary #56
Biden Official Reveals Crypto Plans Amid $2 Trillion Terra Luna Led Bitcoin, Ethereum, BNB, XRP, Solana, Cardano And Dogecoin Price Crash, Major crypto broker Voyager Digital suspends all trading
Welcome to Riding The Wave. If you have questions or feedback, please reply to this email. If you are new to the Newsletter, please check out what we provide on our about page and consider subscribing. Within the Newsletter, I provide News Summaries, Weekly Status Updates, & Deep Dive Articles on Specific Topics (Ex: How do I pick which coins/tokens to buy?). More details here
News
Table of Contents
Tweets
Major crypto broker Voyager Digital suspends all trading, deposits and withdrawals
Ethereum average gas fee falls down to $1.57, the lowest since 2020
Cryptocurrency Bill Will Mitigate Key Risks For Web3 Investors, If It Can Pass
Tweets
Biden Official Reveals Crypto Plans Amid $2 Trillion Terra Luna Led Bitcoin, Ethereum, BNB, XRP, Solana, Cardano And Dogecoin Price Crash
Now, after Wall Street giant Deutsche Bank issued a surprise bitcoin price prediction this week, reports have emerged the Biden administration could pass crypto legislation governing so-called stablecoins such as the recently collapsed terraUSD and its support coin luna as soon as this year.
This week, the President’s Working Group on Financial Markets, a group that includes several financial regulators, met to discuss stablecoin legislation, with an anonymous official telling Coindesk the legislative package could become law by the end of the year. The source said it would define stablecoins for the purposes of U.S. regulation and address how they're used.
In Europe, lawmakers this week secured an agreement on tough new rules designed to ensure stablecoins maintain ample reserves to meet redemption requests in the event of mass withdrawals.
It’s nice to see Europe has locked in a set of rules to protect investors but also disappointing to see the US isn’t in a rush to bring forward regulations. Overall this delay likely won’t be a major issue but it’s more indicative of the US government’s overall attitude towards crypto.
Major crypto broker Voyager Digital suspends all trading, deposits and withdrawals
Digital asset brokerage Voyager Digital has paused all customer trading, deposits, withdrawals and loyalty rewards, according to a statement released Friday afternoon.
“This was a tremendously difficult decision, but we believe it is the right one given current market conditions,” said Stephen Ehrlich, CEO of lending company Voyager.
Erlich went on to say that the decision is designed to give the firm additional time to continue “exploring strategic alternatives with various interested parties” and that they will provide additional information at “the appropriate time.”
The news comes a few days after one of Voyager’s customers failed to make payments on a loan worth hundreds of millions of dollars, fueling growing concerns of an insolvency contagion effect across the industry.
On Monday, the broker issued a notice that prominent crypto hedge fund Three Arrows Capital (3AC) had defaulted on a loan worth more than $670 million. At the time, Voyager said that it intended to pursue recovery from 3AC, and in the interim, said it would continue to operate and fulfill customer orders and withdrawals.
While I dont think groups like Voyager or Blockfi will go under I personally am not comfortable with the unneeded risk and so I have moved funds off of any platforms with rumors of collapse or other chaos.
Keep reading with a 7-day free trial
Subscribe to Riding The Wave to keep reading this post and get 7 days of free access to the full post archives.