Tag: Stablecoin

A Critical Juncture for the Global Stablecoin Market

Elsewhere, the G-20 discussions earlier in the year revealed a split in perspectives, especially among emerging economies, over concerns about the disruptive potential of stablecoins on sovereign monetary policies. This led to calls for stringent regulatory frameworks, reflecting the need to balance financial innovation with national economic safeguards. In October, the G20 adopted a crypto roadmap to coordinate a global policy framework for crypto assets, including stablecoins, which will also take into consideration implications for emerging markets. Source

Crypto Lobbying Surges in 2023 amidst Push for Stablecoin Regulation

The House Financial Services and House Agriculture Committees have advanced bills actively seeking to provide a clear regulatory framework to govern the crypro and stablecoin market.  In 2023, the crypto industry witnessed a substantial surge in lobbying efforts aimed explicitly at shaping stablecoin regulations and influencing legislative outcomes in the United States, Bloomberg reported. According to the report, lobbying on stablecoin legislation experienced a significant uptick this year, with 161 reports – a remarkable 79% increase compared to last year. The Rise of Stablecoins and Regulatory Urgency For clarity, Stablecoins…

Crashed Stablecoin Iron Bank Euro (ibEUR) Lacks Clear Repeg Path

The minor alternative stablecoin, which has an $11 million market cap, dropped from its normal price of $0.97 to as low as $0.39 Monday after a shakeup in ibEUR’s main trading pool left the asset’s markets imbalanced. At press time ibEUR had recovered to $0.72 after risk-prone traders piled in, hoping for a path back to – or at least closer to – its supposed Euro peg. Source

S&P’s Stablecoin Report Is a Vote of Confidence for Crypto

That said, of the eight stablecoins S&P reviewed, several received lackluster scores. Most notably Tether’s USDT, the largest stablecoin by market cap and most used crypto asset in terms of trading volume, was given the fourth-lowest score in range from 1 to 5. Meanwhile MakerDAO’s dai (DAI), popular across decentralized finance (DeFi), and the Justin Sun-backed TrueUSD, the fourth and fifth largest stablecoins, respectively, were also given low scores. Source

Global regulator tightens stablecoin standards for top rankings

The Basel Committee for Banking Supervision has proposed new criteria for stablecoins, aiming to differentiate them from more volatile cryptocurrencies like Bitcoin. A consultative document released on Thursday outlines 11 standards that stablecoins must meet to be classified as Group 1b assets, considered lower risk than unbacked digital assets. The standards ensure that the reserve assets backing stablecoins are of high credit quality, have short-term maturities, and exhibit low volatility. This move is part of the committee’s broader efforts to manage the risks associated with digital assets in the banking…

Basel Committee suggests introducing maturity limits for stablecoin reserve assets

boss

The Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) proposed several measures on targeted adjustment to its standard on banks’ exposure to cryptoassets. A consultative document was published on the BIS website on Dec. 14.  The document is the result of the review work conducted during 2023, which helped the committee formulate amendments to its original prudential standards for banks’ exposure to stablecoins, published in December 2022. Proposed changes relate primarily to the composition of the reserve assets of stablecoins, specifically for crypto assets, classified under…

Is A Mega Bull Run Incoming? Whale Transfers Over $780 Million Of Stablecoin To Binance

boss

Data Nerd Data on December 13 shows that over the past 24 hours, the wallet “0xea8” moved 200 million BUSD from Binance, the world’s leading cryptocurrency exchange by client count. The whale transfer caught the attention of keen crypto users, who also noted that the transfer was soon followed by a deposit of 99.95 million FDUSD, a stablecoin supported by the exchange. Whale Address Accumulating FUSD Stablecoin On Binance That the address is shuffling and accumulating large amounts of stablecoins is noteworthy. Data Nerd Data shows that the address has transferred over…

USDT Ranked 4 out of 5 in New Stablecoin Stability Assessment From Ratings Agency S&P Global

“As we look to the future, we see stablecoins becoming further embedded into the fabric of financial markets, acting as an important bridge between digital and real-world assets,” Lapo Guadagnuolo, a senior analyst at S&P Global Ratings said in a statement. “Nonetheless, it’s important to acknowledge that stablecoins are not immune to factors such as asset quality, governance, and liquidity.” Source