Washington
Terra crash sharpens Washington’s attention on crypto regulations
The collapse of the stablecoin TerraUSD
USTUSD,
has made waves in Washington, attracting the eye of the nation’s prime policymakers and including urgency to an ongoing debate in Congress about cryptocurrency regulation.
At its peak in early Could, TerraUSD, additionally identified by its ticker UST, was the third hottest stablecoin, with a market capitalization of practically $20 billion. Only a few weeks later the blockchain has ceased to operate and buyers within the coin and associated cryptocurrency LUNA
LUNAUSD,
have seen billions in wealth vanish.
“The markets final week undoubtedly caught the attention of D.C.,” Ron Hammond, director of presidency relations on the Blockchain Affiliation, a crypto business group, informed MarketWatch. “There’s undoubtedly a gaggle of buyers who misplaced some huge cash, and that does elicit concern from people on Capitol Hill.” He predicts that within the coming weeks there might be a slew of recent proposals, some bipartisan, for regulating stablecoins and different points of the crypto ecosystem.
Opinion: Regulators have the authority to behave now to cease runs on dangerous stablecoins
Stablecoins are a sort of cryptocurrency that goal to take care of a gentle worth in relation to the U.S. greenback
DXY,
and are primarily utilized by crypto merchants to park uninvested funds so they’re protected from the risky swings in worth that characterize belongings like bitcoin
BTCUSD,
and ether
ETHUSD,
Following Terra’s collapse, different stablecoins skilled volatility and a wave of redemptions. Tether, the biggest stablecoin by market capitalization, briefly broke its peg with the greenback final week and has seen $7 billion in redemptions since. Tether mentioned in a Monday weblog submit that the peg was by no means damaged, as a result of it continued to honor redemptions of $1 for one tether, even when the worth on some exchanges fell under $1.
The drama was sufficient for Treasury Secretary Janet Yellen to induce Congress to rapidly move a brand new regulatory framework and for Pennsylvania Sen. Pat Toomey, the highest Republican on the Senate Banking Committee, to carry a press convention touting his laws on this space.
Why are policymakers fearful about stablecoins?
Stablecoins compete with banks and different regulated monetary establishments, so regulators imagine they need to observe related guidelines to advertise an equal enjoying area, shield buyers and guard towards monetary contagion.
Asset-backed stablecoins like Tether
USDTUSD,
and USD Coin
USDCUSD,
look rather a lot like banks, based on Daniel Neilson, a Bard Faculty financial economist who research cryptocurrency.
Tether points tokens that it guarantees to redeem for $1 at any level, and to again up these claims Tether says it maintains reserves equal in worth to excellent tether.
“Economically, it’s a financial institution, and which means at some point, as with Terra, all people goes to need their a refund, and that’s a problem banks have confronted for not less than a thousand years,” Neilson mentioned.
In the meantime, as Tether and different stablecoins develop, they develop into extra built-in into the broader monetary system by means of reserve-fund purchases of business and authorities debt.
“Tether is greater than most mutual funds who’re historically the largest gamers in business paper,” Neilson mentioned, and its position will solely develop in that market and the marketplace for authorities debt as Tether grows. “A fancy set of monetary connections is being constructed. I can’t inform you what the straw that breaks the camel’s again goes to be, however at some point it’s going to go too far.”
Tether mentioned in emailed feedback to MarketWatch that it “publishes details about the maturities and scores of all our business papers” and that its “business paper holdings have gone down considerably as a share of our reserves” in latest quarters.
Who ought to get to control stablecoins?
The Biden administration believes that the bank-like nature of stablecoins signifies that stablecoin issuance ought to be restricted to federally regulated banks, because it expressed in a working paper revealed in November.
Toomey and different congressional Republicans have argued for a framework that provides issuers the choice to be regulated by totally different entities relying on its enterprise mannequin. Specifically, Toomey is targeted on the likelihood that stablecoins will emerge as opponents for fee providers and subsequently ought to be regulated by the states as cash transmitters. The Pennsylvania Republican isn’t working for re-election this 12 months.
Paul Kupiec, an economist on the American Enterprise Institute, favors this strategy, as a result of he sees the potential for stablecoins to advertise innovation within the funds business.
“Cost stablecoins are basically like a cash order or a traveler’s examine, the one distinction is that they clear and settle on the web utilizing some form of blockchain,” he mentioned. “Western Union
WU,
and Paypal
PYPL,
function below this framework.”
What’s in Tether’s field?
Republicans and Democrats disagree on the small print of how stablecoins ought to be regulated, however there may be widespread settlement that any regulation ought to require very detailed disclosure of a stablecoin’s backing belongings.
Tether has had a run-in with U.S. regulators up to now for its disclosure insurance policies. In October the Commodity Futures Buying and selling Fee fined Tether for $42.5 million for deceptive prospects concerning the high quality of the reserves that again its stablecoin, and mentioned that Tether solely held ample reserves of {dollars} to again excellent tether tokens 27.6% of the times throughout a 26-month pattern between 2016 and 2018.
Tether mentioned in an announcement on the time that the problems within the CFTC case have been “totally resolved” and that it “has all the time maintained satisfactory reserves and has by no means did not fulfill a redemption request.”
Right now the corporate points common statements on the composition of its reserves, attested to by the impartial auditor MHA Cayman, although these disclosures fall properly in need of what’s required of federally regulated cash market funds or banks.
Bennett Tomlin, host of the Crypto Critics’ Nook podcast, mentioned in an interview that questions stay as to what truly backs Tether’s reserves, and this poses a risk to the crypto market broadly.
“Tether manages a portfolio of conservative liquid belongings with a give attention to preserving our reserves,” the corporate mentioned in emailed feedback to MarketWatch. “Tether’s prospects proceed to position their belief and confidence in Tether, as exhibited by means of the stablecoin’s development and market cap of 80bn. In doing so, they’re telling the market that Tether’s disclosures are ample to make well-informed selections.”
Tether additionally disputed the notion {that a} lack of confidence in its stablecoin might influence the broader crypto market. “Tether dropping its peg won’t tank Bitcoin and Ethereum. It could solely value extra to buy Bitcoin and Ethereum utilizing Tether.”
Crypto lobbyist sustain the stress
Volatility in digital belongings comes towards a backdrop of fast development of the business’s presence in Washington, D.C. The variety of lobbyists representing crypto advocates practically tripled from 115 in 2018 to 320 final 12 months, based on an evaluation by Public Citizen, whereas spending nearly quadrupled from $2.2 million to $9 million over the identical interval.
Hammond of the Blockchain Affiliation says these tendencies are matched by rising curiosity amongst lawmakers on either side of the aisle who typically wrestle to maintain up with the quickly altering world of digital belongings.
However Capitol Hill is working up towards the onerous actuality of the calendar, he mentioned, noting that the looming election and issues over inflation and different issues might make it troublesome to move laws earlier than there’s a brand new Congress in 2023.
“There’s a timeline right here, and if Congress doesn’t act regulators would possibly step in” and impose a framework that’s lower than very best, he mentioned. “It’s a reasonably tight window right here and it’s a sophisticated topic to deal with.”
WASHINGTON — School officials widely expressed optimism about the prospect of a high school esports team, despite several questions about the logistics of such a newly conceived extracurricular activity.
At a Washington school board meeting Wednesday night, District Activities Director Nathan Miller said a poll of high school students and incoming freshman showed 33 kids interested in joining such a team next year.
Of those, he said the “vast majority” were not involved in any of the school’s other activity rosters. That makes it an ideal way to get kids involved who might otherwise not make such connections.
“One of the main goals that I’m looking at, as activities director, is how do we engage more kids within our school,” Miller said. “This is an opportunity where we could engage kids in something else we don’t currently have, that may meet a clientele that would love to be part of a group or activity.”
The competitive video game scene is a somewhat new concept, as far as school activities go, but those involved say it’s growing fast. Much like with traditional sports, students would try out for the team, compete in divisions based on experience, and seek to bring home trophies for their school at tournaments.
Also like other school activities, members would need to maintain passing grades to compete, and come to class in order to attend practice. Washington would be the fourth school in its conference to establish an esports roster.
Competitions are not only a source of entertainment for viewers. Schools say they’re a wellspring of scholarships and academic achievement for students.
Fairfield senior Carter Stutzman made headlines in April, when he signed on to Northwestern College’s Rocket League Team, where he’ll play the viral “vehicular soccer” game. And in November, New London’s esports team qualified for states, where they played Nintendo-produced fighting game Super Smash Bros. Ultimate and the mythology-inspired arena title SMITE.
“I actually sat in on an esports presentation … and there’s more scholarship money available in colleges than they can give out right now,” Miller said. “This is something that could not only impact our kids now, with a connection to school, it could provide avenues and opportunities after high school.”
The activity is sanctioned by the Iowa High School Esports Association. Miller said Washington would start competing in Super Smash Bros. in the fall, and Mario Kart in the spring, but not participate in other events or in the winter season, at least at first.
Instead, he said the school would stick to online tournaments in its first year, rather than traveling to distant venues. Startup costs would include four Nintendo Switch consoles, high-end controllers, subscriptions to Nintendo Switch Online — a service required to access multiplayer features in the games — and paid coaching positions in the fall and spring.
The activities director said the team would likely raise funds through events and local business sponsorships.
“There are events, eventually, that we could travel to,” Miller said. “There is actually a kid in our high school who is one of the top 10 or 15 players in our country for Fortnite … but we’re not going to go to these big tournaments if we’re just going to get stomped on at first. That’s why we want to start small.”
More out of curiosity than skepticism, school board members had several questions for Miller about the activity. Things like, “what does an esports practice look like,” and “how is it coached?”
With a vote on the proposed program expected next month, Board President Troy Suchan said he was excited about its prospects
“It’s another way to get another subgroup involved, same as when we started archery,” he said. “It’s getting people involved, making them feel like they’re part of the school.”
Comments: Kalen.McCain@southeastiowaunion.com
With USC, UCLA, Oregon and Washington set to join the Big Ten, we’re exploring what each of these additions means to the Big Ten men’s basketball landscape. How do their fans feel about their head coach? Who has joined and left the program this offseason? Where are they projected to rank in the conference?
Next up: the Washington Huskies
Washington will be looking to bounce back after a disappointing 2023-24 season in which it went 17-15 and missed the NCAA Tournament.
Following Lorenzo Romar’s successes from 2002-17, the program turned to Mike Hopkins. Hopkins won Pac-12 Coach of the Year his first two seasons while also winning the conference regular season title in 2018-19. But that would be the peak of the Hopkins era, as the Huskies only advanced to the second round of the NCAA Tournament that year and never made the tournament again in his tenure.
The university let Hopkins go before quickly identifying Danny Sprinkle as their next head coach. Sprinkle comes to Washington after just one — albeit very successful — year at Utah State. Prior to that, he was at Montana State for four seasons and took them to the NCAA Tournament twice.
Last season’s Huskies were led by a pair of former Kentucky Wildcats in forward Keion Brooks Jr. (21.1 points per game) and guard Sahvir Wheeler (14.3 ppg). They had two other scorers who averaged double-digits in forward Moses Wood (11.9) and guard Koren Johnson (11.1). The Huskies also had a pair of former Big Ten players in the rotation in guard Paul Mulcahy (Rutgers) and forward Wilhelm Breidenbach (Nebraska). Centers Franck Kepnang and Braxton Meah, along with guards Nate Calmese and Anthony Holland, rounded out the rotation.
Predictably due to the coaching change, Washington’s roster is undergoing a massive overhaul. Five Huskies ran out of eligibility, while Johnson (Louisville) and Meah (Nebraska) left for greener pastures via the portal. Yates and Calmese also entered the portal but have yet to find a new home. For those keeping track at home, that’s all four of their top scorers and eight of the 10 members of the rotation that will not be returning. Only Breidenbach (5.3 ppg) and Kepnang (8.3 ppg) are expected to return.
To replace essentially the entire roster, Sprinkle brought in a transfer portal class of seven players that is currently ranked No. 2 in the Big Ten and No. 8 nationally, according to 247Sports. Headlining the class is center Great Osobor, who is following Sprinkle from Utah State to Washington. The No. 7 ranked transfer in the country this offseason, Osobor made the news recently as the highest paid transfer of all time (that we know of) as he is set to earn more than $2 million in NIL, according to ESPN.
In addition to Osobor, Sprinkle brought in highly touted guards Mekhi Mason (Rice) and D.J. Davis (Butler), and forward Tyler Harris (Portland). Mason is No. 87 on 247Sports’ transfer portal rankings, while Davis is No. 104.
Rounding out the class are unranked transfers, Chris Conway (Oakland), KC Ibekwe (Oregon State), and Luis Kortright (Rhode Island).
Washington’s incoming freshmen class is another reason for excitement. The Huskies brought in two four-star guards in Zoom Diallo and Jase Butler. Both are in the top-100 of high school prospects, with Diallo bordering on five-star status. Both are expected to be instant contributors. The class ranked No. 34 nationally and No. 6 in the Big Ten.
It’s tough to know what to project for this upcoming season’s Washington Huskies, given they return just 7.8 percent of their total minutes from a season ago. Only USC returns less minutes from last year in the new Big Ten.
Torvik currently projects Washington to go 19-12 and be the No. 52 team in the country. This would place the Huskies 14th in the Big Ten, just ahead of the Iowa Hawkeyes.
Osobor certainly provides some excitement, along with the incoming freshmen guards, but the depth likely won’t be there this season.
Historically, Washington has not been a top-tier men’s basketball program. The Huskies have never won a National Championship and have made just one Final Four (1953). Their last Sweet Sixteen was in 2010.
Notable alumni of the program include Brandon Roy, Isaiah Thomas, Matisse Thybulle, Detlef Schrempf, and Dejounte Murray.
Washington is certainly in for a rude awakening in the Big Ten this year. However, Sprinkle has the ball rolling with a little momentum right now. Whether he’s able to continue that momentum will determine their early success or failure.
Ian Landy’s Great Falls home. Photograph by Craig Westerman.
Virginia
1
Where: Great Falls.
Sold by: Ian Landy, cofounder of the telecommunications company LightSpeed International.
Listed: $17,995,000.
Sold: $14,750,000.
Days on market: 271.
Style: Georgian.
Bragging points: Eight bedrooms, 11 bathrooms, and five half bathrooms on more than 17 acres, with equestrian stables, a private lake, a sauna, an elevator, and an indoor swimming pavilion.
2
Where: Rosslyn.
Sold by: Ralph Shrader, chairman and former CEO of Booz Allen Hamilton.
Listed: $6,250,000.
Sold: $5,950,000.
Days on market: 81.
Style: Condo.
Bragging points: A 4,600-square-foot penthouse with three bedrooms, three bathrooms, and two half bathrooms; northern, eastern, and southern exposures; a gourmet kitchen; two dressing rooms; and a library.
DC
3
Where: Kalorama.
Sold by: Rex Tillerson, former Secretary of State and former CEO of ExxonMobil.
Listed: $6,500,000.
Sold: $6,200,000.
Days on market: 19.
Style: Townhouse.
Bragging points: Four bedrooms, three bathrooms, and three half bathrooms, with an elevator, a study, three fireplaces, and a courtyard-style garden.
4
Where: Forest Hills.
Bought by: Stephen Weissman, partner at Gibson Dunn.
Listed: $5,850,000.
Sold: $5,650,000.
Days on market: 98.
Style: Transitional.
Bragging points: New construction on almost half an acre, with six bedrooms, five and a half bathrooms, a recreation room, a wet bar, a mudroom, and a primary suite with dual walk-in closets.
5
Where: Georgetown.
Sold by: John Castellani, former president and CEO of PhRMA.
Listed: $4,750,000.
Sold: $4,500,000.
Days on market: 3.
Style: Colonial.
Bragging points: Four bedrooms, three bathrooms, and two half bathrooms, with a wet bar, covered porch, gated four-car parking pad, and walkout terrace.
6
Where: Berkley.
Bought by: Katie Mitchell, partner at Narrative Strategies, and Nicholas Williams, VP of technology and product development at X-COR Therapeutics.
Listed: $4,150,000.
Sold: $4,050,000.
Days on market: 8.
Style: Colonial.
Bragging points: Six bedrooms and six and a half bathrooms, with an indoor/outdoor fireplace, French doors, over-size windows, a media room, and a gated motor court.
Maryland
7
Where: Chevy Chase.
Bought by: Danielle Juda, executive director at J.P. Morgan Private Bank, and Aaron Juda, chief strategy officer and president of consumer banking at Forbright Bank.
Listed: $3,500,000.
Sold: $3,600,000.
Days on market: 6.
Style: Colonial.
Bragging points: Seven bedrooms, six bathrooms, and two half bathrooms, with a chef’s kitchen, sunroom, den, screened porch, wet bar, mudroom, and au pair suite.
Sales information provided by Bright MLS.
This article appears in the May 2024 issue of Washingtonian.
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