Crypto
All eyes are on Fed’s Barr to flesh out path forward on crypto rules
![All eyes are on Fed’s Barr to flesh out path forward on crypto rules All eyes are on Fed’s Barr to flesh out path forward on crypto rules](https://arizent.brightspotcdn.com/dims4/default/48485a9/2147483647/strip/true/crop/5610x2945%200%20397/resize/1200x630!/quality/90/?url=https://source-media-brightspot.s3.amazonaws.com/b9/cc/8619337242918bf66e870f68094b/391603417.jpg)
The Federal Reserve’s prime regulator is about to provide his first speech on cryptocurrency oversight this week.
Fed Vice Chair for Supervision Michael Barr will ship remarks on the topic Thursday on the Peterson Institute for Worldwide Economics. His deal with comes at a time when financial institution regulators in Washington are carving out their positions on digital property by means of coverage steering.
The Fed, Federal Deposit Insurance coverage Corp. and Workplace of the Comptroller of the Foreign money issued two joint statements on crypto threat administration within the first eight weeks of 2023. Whereas nonbinding, the statements have raised issues amongst business members about a de facto ban on financial institution engagement with crypto.
Barr will not be anticipated to deviate from the skeptical posture regulators have taken in current weeks, however advocates and opponents alike will probably be parsing his phrases to see in the event that they depart any daylight for crypto to enter the banking system and underneath what circumstances.
Cody Carbone, vp of the Chamber of Digital Commerce, a crypto lobbying agency, mentioned he expects Barr to stick to the Fed’s official neutrality on whether or not banks ought to have interaction in crypto-related actions, whereas nonetheless focusing closely on the inherent dangers and have to rein them in.
Carbone mentioned he will probably be listening for any indication from Barr that the Fed’s help of innovation within the crypto house is something greater than lip service.
“In the event you see alternatives, put your cash the place your mouth is and supply some proposals, work with business to verify these alternatives occur right here within the U.S. and so they’re completed in a protected and safe surroundings inside U.S. regulatory system,” he mentioned. “We simply have not seen that. It is all been about dangers.”
In the meantime, those that favor the regulators’ efforts to maintain financial institution publicity to crypto at a minimal will probably be on the lookout for extra of the identical from Barr.
“A very powerful factor for the monetary regulators to do, together with, importantly, the Fed, is to carry the road and proceed to disregard the stress from the crypto business and their political allies to rescue crypto by offering them with an unwarranted and harmful entry to Fed services and interconnections with the banking system,” mentioned Dennis Kelleher, head of the patron advocacy group Higher Markets. “There’s actually no authentic, authorized use of crypto and a lot of the crypto actions are presently unlawful providing, promoting and buying and selling of unregistered securities and commodities.”
Barr has touched on crypto a handful of instances as a part of broader speeches, in one-off remarks throughout public appearances and whereas testifying in entrance of lawmakers. His feedback have usually targeted on the dangers related to digital property and the necessity for higher supervision within the house, although he has insinuated that they belong underneath the jurisdiction of different businesses, such because the Securities and Trade Fee and Commodity Futures Buying and selling Fee.
In October, Barr devoted a phase of his speech on “Managing the Promise and Threat of Monetary Innovation” to crypto property. In it, he mentioned it was necessary to verify the actions within the house had been regulated commensurately with equal actions that happen in regulated markets. The idea of making use of related regulation to love actions has garnered help from each ends of the Fed Board of Governors’ ideological spectrum.
Barr additionally flagged the chance of banks having a focus of crypto-backed deposits, together with their susceptibility to volatility given the interconnectedness of the digital-asset sector. Notably, San Diego-based Silvergate Financial institution, a Fed-supervised state-member financial institution that focuses crypto banking, was topic to this actual sort of deposit run simply weeks after Barr’s remarks, amid the collapse of the cryptocurrency change FTX
The Fed, FDIC and OCC issued a joint assertion on managing liquidity dangers in crypto deposits final month.
Through the downfall of FTX in November, Barr testified in entrance of the Senate Banking Committee alongside the heads of the FDIC and OCC. He advised the committee that the episode spoke to the potential systemic dangers that might come up “if interlinkages develop between the crypto system that exists in the present day and the standard monetary system.”
Barr and different financial institution regulators incessantly credit score the restricted connections between banks and crypto firms with preserving monetary stability throughout crypto’s tumultuous yr in 2022.
Kelleher mentioned regulator’s efforts to maintain digital property at an arm’s size from the banking system probably averted a disaster on the dimensions of the subprime mortgage disaster in 2008.
“That will have meant contagion and bailouts, and that did not occur as a result of these regulators resisted the stress and put the general public curiosity in security and soundness first,” he mentioned. “Our view is that they’ve completed an unrecognized, improbable job of defending the American individuals, and they need to proceed to do this.”
Others fear this technique will enable dangers and unlawful actions to construct up in elements of the economic system which can be past the attain of regulators.
Bryan Hubbard, an impartial advisor for monetary corporations and a former OCC spokesman, mentioned he’s involved this method might result in regulatory gaps and blind spots that might result in spillovers into the standard monetary system.
“It is very harmful to, slightly than discover a means for banklike exercise to happen within the full sunshine of the banking house, as a substitute have it happen in darkish corners,” Hubbard mentioned. “What I am on the lookout for are regulators offering a path for current banks to interact in new know-how that their prospects could profit from and for firms engaged in new monetary intermediation to have the ability to have interaction with banks in a means that enables them to conduct enterprise in a protected and sound method.”
Barr’s final feedback on crypto regulation got here throughout a question-and-answer session with Michael Pressure, director of financial coverage research on the American Enterprise Institute on Dec 1. Throughout that dialog, Barr mentioned among the volatility seen within the crypto sector might have been mitigated by means of regulation and that whereas linkages between the banking system and digital property are few, it’s price inspecting how they are often managed to greatest defend monetary stability.
But, Barr additionally famous that no matter method the Fed takes won’t be one which seeks to close down the digital-asset sector fully.
“It is necessary for us to not arrange a regulatory surroundings that stifles innovation. Innovation is de facto essential to the monetary sector. It’s important to the American economic system. One of many causes we’ve got an amazingly vibrant financial system is as a result of we allow, encourage, enable that form of innovation,” he mentioned. “And so we have to get the stability proper. Now we have to have actually good guardrails, in order that traders and shoppers are protected, in order that the protection and soundness of the monetary system is protected. After which we have to let innovation flourish inside these guardrails, in order that we do not lock in outdated know-how or incumbents. And getting that stability proper could be very, very tough. We clearly do not have it proper now on this planet that we’re seeing.”
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Crypto
Lehigh County man lost over $62K in cryptocurrency scam, cops say
![Lehigh County man lost over K in cryptocurrency scam, cops say Lehigh County man lost over K in cryptocurrency scam, cops say](https://www.lehighvalleylive.com/resizer/v2/BUUQIRZ4VFHI3GAU5MFFEYKPQM.jpg?auth=fb951af4bed7d7635799fd7821392a6a2f5782eae1a7383c836a38a5af0be363&width=1280&quality=90)
A 57-year-old Emmaus man fell victim to a cryptocurrency scam that bilked him out of more than $62,000, state police said.
Pennsylvania State Police in Fogelsville said the man on July 15 reported to authorities he was being duped. Investigators say the scheme involved the victim providing financial information to a scam artist posing as a legitimate well-known cryptocurrency investor and entrepreneur.
The incident began in October 2023 over a Google workspace chat thread and went on until early April, according to a state police news release.
The victim received assistance from whom he thought was the legitimate investor in setting up several bitcoin transactions over a span of seven months. Investments totaled $62,115, according to state police.
When the victim went to access the funds, he realized all the cash was gone, police said.
Pennsylvania State Police in Fogelsville are investigating the scheme. The victim also has reported the scam to the Pennsylvania Attorney General’s Office.
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Pamela Sroka-Holzmann may be reached at pholzmann@lehighvalleylive.com.
Crypto
Bitcoin set to fall on weekly basis as Trump's victory odds slide (Cryptocurrency:BTC-USD)
![Bitcoin set to fall on weekly basis as Trump's victory odds slide (Cryptocurrency:BTC-USD) Bitcoin set to fall on weekly basis as Trump's victory odds slide (Cryptocurrency:BTC-USD)](https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1255216496/image_1255216496.jpg?io=getty-c-w750)
peshkov/iStock via Getty Images
Bitcoin (BTC-USD) is set to witness a 7.4% weekly fall, as the prospects of crypto-friendly Republican nominee Donald Trump securing the presidency in November further diminished.
The world’s oldest cryptocurrency saw a gradual decline over the week, after starting off strongly.
“The crypto market experienced a pullback. News speculating Trump’s presidential odds falling back below 50% while Kamala is on the rise is likely the main contributor to the sell-off,” Augustine Fan, founder, SOFA.org said.
The solid start was mainly as traders digested Trump’s speech on crypto over the weekend.
Making an appearance at the Bitcoin 2024 Conference in Nashville over the weekend, Trump, who wasn’t always friendly to crypto, vowed to create a strategic national bitcoin stockpile, fight CBDCs, defend the right to self-custody, and institute the “responsible expansion of stablecoins to extend the dominance of the U.S. dollar to new frontiers.”
Bitcoin (BTC-USD) briefly dropped to below $66K on Tuesday, after hovering near the $70K mark in the prior session, as concerns of potential selling pressure mounted after the U.S. government moved $2B worth of the cryptocurrency.
The highest-profile token saw a further fall on Wednesday, as the Federal Reserve held rates steady for the month, but signaled a possible rate cut in September.
BTC also saw an intraday decline on Thursday, as it followed suit of the major U.S. equity averages, which witnessed a sell-off on the day, as soft economic data reignited questions about the Fed’s decision to wait longer on cutting interest rates.
BTC will likely remain in the 60-70k range in the near term, but we are still positive for Q4 with the long-term bullish story remaining intact, Fan added.
“While Bitcoin tested the upper region of our support zone, we believe that the low is likely in. We are setting up for the next leg higher,” SA analyst Knox Ridley said.
Notable News
Ault Alliance (AULT) said it will focus on its artificial intelligence data center space as part of its reorganization strategy.
A U.S. strategic Bitcoin (BTC-USD) reserve would fund purchases of the cryptocurrency in part by revaluing gold (XAUUSD:CUR) certificates held by the Federal Reserve, CoinDesk reported earlier this week, citing a draft of the proposed bill.
Privately held shares of Circle Internet Financial, the issuer of stablecoin USDC (USDC-USD), are changing hands in the secondary market at a price that suggests a valuation of $5B-$5.25B ahead of its planned initial public offering.
Bitcoin, Ether prices
Bitcoin (BTC-USD) fell to $62.9K at 3:03 pm on Friday, amid a fall in major stock averages, after the July U.S. jobs report stoked fears the world’s largest economy is headed toward a recession. Ether (ETH-USD) down ~2.5% to $3K.
“The dizzy heights of $100k could be in sight, but there needs to be a convincing breakout and a rally might be more tempered compared to previous ones,” said SA analyst Clem Chambers, and added, Bitcoin’s (BTC-USD) value, driven by investor confidence, could surge with government backing.
Crypto
AI Predicts Top 3 Cryptocurrency to Buy if Ripple Wins SEC Case
![AI Predicts Top 3 Cryptocurrency to Buy if Ripple Wins SEC Case AI Predicts Top 3 Cryptocurrency to Buy if Ripple Wins SEC Case](https://watcher.guru/news/wp-content/uploads/2024/08/photo_6154614313726361554_y.jpg)
The Ripple (XRP) case with the US SEC has been one of the most significant highlights of the cryptocurrency world. The US SEC case with XRP has received special insights and scrutiny over the years.
Now that the case is “reportedly” nearing its end, AI has predicted three new coins that can bank on XRP’s surge if Ripple wins the case against the SEC. Here are three coins that may gain significant market momentum.
Also Read: Dogecoin (DOGE) & Ethereum (ETH) Price Prediction August 2024
Three Coins That May Skyrocket Post-XRP Win Against the US SEC, AI Predicts
![Stellar (XLM), EOS, and Cardano (ADA)](https://watcher.guru/news/wp-content/uploads/2024/04/photo_6163376089959874655_y-1024x585.jpg)
1. Stellar (XLM) – Fast crypto payments
![XLM CoinCodex price prediction chart](https://watcher.guru/news/wp-content/uploads/2024/08/image-23.png)
![XLM CoinCodex price prediction chart](https://watcher.guru/news/wp-content/uploads/2024/08/image-23.png)
Stellar, popularly referred to as XLM, is another notable cryptocurrency making waves in the crypto market. The token is one of the three coins predicted by AI to bank on the XRP price surge.
The reason is that Stellar is also dubbed a low-cost payment-centric network focusing on cross-border transactions, just like XRP. If XRP spikes soon, the exact technicalities and functional elements XLM shares with Ripple may help the token gain better price levels.
“Stellar may trade within a range of $0.07618 and $0.161019. If it reaches the upper price target, XLM could increase by 65.41% and reach $0.161019.”
According to CoinCodex, XLM may spike to reach the $0.161019 price level by the end of August 2024.
Also Read: BlackRock Reveals These Two Cryptocurrencies Are Worth An Investor’s Money
2. EOS (EOS) – Crypto dApp platform
![EOS CoinCodex price prediction chart cryptocurrency](https://watcher.guru/news/wp-content/uploads/2024/08/image-24.png)
![EOS CoinCodex price prediction chart cryptocurrency](https://watcher.guru/news/wp-content/uploads/2024/08/image-24.png)
EOS is another cryptocurrency that the AI predicted may seek better price momentum post-XRP’s win against the US SEC.
The AI shared that EOS shares similar scalability and usability factors with XRP, which makes it a popular coin capable of surging XRP wins against the SEC. EOS is referred to as a developed operating system that operates industrial-scale DApps.
Per CoinCodex, EOS may surge by 7% to stabilize at $0.579366 by the end of 2024.
“EOS may trade within a range of $0.518941 and $0.579366. If it reaches the upper price target, EOS could increase by 7.44% and reach $0.579366.”
3. Cardano (ADA) – Research-driven crypto
![ADA Coincodex price prediction chart cryptocurrency](https://watcher.guru/news/wp-content/uploads/2024/08/image-25.png)
![ADA Coincodex price prediction chart cryptocurrency](https://watcher.guru/news/wp-content/uploads/2024/08/image-25.png)
Cardano needs no further introduction, as the token is one of the most promising decentralized chains in the crypto world.
Its similarities with XRP in terms of scalability, global collaborations, and security make it a suitable coin capable of leveraging XRP’s post-SEC win surge.
Also Read: Cryptocurrency: 3 Coins to Buy Before They Become ETFs
According to CoinCodex, ADA may rise to trade at a stable level of $1.529875 by the end of 2024.
“Cardano may trade within a range of $0.356486 and $1.529875. If it reaches the upper price target, ADA could increase by 295.74% and reach $1.529875.”
As the crypto world watches XRP’s case, these coins could ride the potential wave, and we’re ready for it! Are you?
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