2 years ago
Top Stories This Week
Silicon Valley Bank unopen down by California regulator, holding implicit $5 cardinal for salient crypto VCs
Silicon Valley Bank (SVB) was unopen down by California’s fiscal watchdog connected March 10 aft announcing a important merchantability of assets and stocks aimed astatine raising further capital. The California watchdog appointed the Federal Deposit Insurance Corporation (FDIC) arsenic the receiver to support insured deposits. However, the FDIC lone insures up to $250,000 per depositor, per instauration and per ownership category. The slope held implicit $5 cardinal successful funds from large task superior firms. Silicon Valley Bank is 1 of the apical 20 largest banks successful the United States, providing banking services to crypto-friendly task companies, specified arsenic Sequoia Capital and Andreessen Horowitz.
USDC depegs arsenic Circle confirms $3.3B stuck with Silicon Valley Bank
USD Coin (USDC) issuer Circle confirmed that $3.3 cardinal of its $40 cardinal USDC reserves stay astatine Silicon Valley Bank, triggering a sell-off that resulted successful the stablecoin falling beneath $1. The stablecoin ecosystem felt an contiguous interaction arsenic USDC depegged from the U.S. dollar, with large stablecoin depegging from the U.S. dollar arsenic a consequence, including DAI, USDD and FRAX. The USDC terms was dilatory re-pegging connected precocious Saturday aft turbulent trading hours. Circle plans to screen missing liquidity successful SVB with firm funds.
Silvergate Capital Corporation to ‘voluntarily liquidate’ Silvergate Bank
Silvergate Capital Corporation announced this week plans to “wind down operations” and liquidate its crypto arm, Silvergate Bank. The determination was made “in airy of caller manufacture and regulatory developments,” said the company. Silvergate was 1 of the large banking partners for galore crypto firms, but drew concerns astir its solvency aft delaying the filing of an yearly fiscal report. Although its closure does not look to beryllium a systematic hazard for the United States banking system, crypto firms are bracing for the imaginable effects of its exit, specified arsenic an summation successful banking attraction and challenges for crypto task superior firms successful the U.S..
SBF’s lawyers awesome request to propulsion backmost October transgression trial
Lawyers representing FTX founder Sam Bankman-Fried person flagged that it whitethorn beryllium indispensable to hold his transgression trial, since the defence is inactive waiting for a “substantial portion” of grounds and much charges person been brought against Bankman-Fried successful precocious February. Meanwhile, instrumentality firms, concern banks and consulting companies moving with FTX connected its bankruptcy lawsuit billed the crypto speech a combined $34.18 million successful January, tribunal documents revealed. FTX’s main restructuring serviceman and caller CEO, John J. Ray III, besides received a hefty wage package, charging $1,300 an hour, amounting to a full of $305,000 successful February.
Biden fund proposes 30% taxation connected crypto mining vigor use, treble superior gains tax, and a prohibition connected crypto lavation sales
United States crypto miners could be taxable to a 30% taxation connected energy costs nether a fund connection by President Joe Biden aimed to “reduce mining activity.” According to the White House, immoderate steadfast utilizing resources — whether they beryllium owned oregon rented — would beryllium liable for a 30% taxation of the energy outgo utilized to excavation integer assets. Another constituent affecting the crypto manufacture successful the fund connection includes ending tax-loss harvesting and astir doubling taxation rates connected superior gains for immoderate investors to 39.6% connected semipermanent investments, up from the existent 20% taxation rate.
Winners and Losers
At the extremity of the week, Bitcoin (BTC) is astatine $19,920, Ether (ETH) astatine $0,000 and XRP astatine $0.35. The full marketplace headdress is astatine $928.9 billion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the apical 3 altcoin gainers of the week are Kava (KAVA) at 12.40%, Bone ShibaSwap (BONE) at 1.22% and UNUS SED LEO (LEO) at 1.05%.
The apical 3 altcoin losers of the week are Stacks (STX) at -31.05%, Mina (MINA) at -29.40% and SingularityNET (AGIX) at -29.14%.
For much info connected crypto prices, marque definite to work Cointelegraph’s marketplace analysis.
Most Memorable Quotations
“This manufacture has grown leaps and bounds, particularly for being arsenic young arsenic it is, and I’m inactive assured that we are successful the process of gathering a better, much equitable fiscal strategy successful the United States and globally.”
Charlie Shrem, wide spouse astatine Druid Ventures
“Notwithstanding a regulatory model astir stablecoins, they’re going to beryllium commodities successful my view.”
Rostin Behnam, president of the U.S. Commodity Futures Trading Commission
“Without cognition oregon vulnerability to the industry, women whitethorn suffer assurance and involvement successful pursuing careers successful the sector.”
Sandy Carter, main operating serviceman and caput of concern improvement astatine Unstoppable Domains
“It is important that regulators foster maturation successful IoT and M2M payments, arsenic it is cardinal to maintaining the planetary competitiveness of the European integer economy.”
“Despite the volatile 2022 crypto landscape, consumers didn’t suffer religion successful their crypto investments.”
“As the slope of prime for crypto, Silvergate Bank’s nonaccomplishment is disappointing, but predictable.”
Elizabeth Warren, U.S. senator
Prediction of the Week
Bitcoin battles $20K arsenic trader calls slope chaos ‘2008 each implicit again’
Bitcoin fell to its lowest terms since mid-January connected March 10 arsenic cryptocurrency markets panicked implicit a imaginable banking crisis, information from Cointelegraph Markets Pro and TradingView shows.
The BTC/USD brace saw the bulk of its losses during the erstwhile day’s Wall Street trading arsenic hazard assets everyplace suffered setbacks courtesy of the market’s acold feet connected the backmost of large restructuring astatine Silicon Valley Bank (SVB) — the United States’ 16th largest commercialized lender.
“Will astir apt wick into 18-19k earlier this is over- but it’s conscionable a retest,” pseudonymous trader Credible Crypto wrote connected Twitter.
Uncertainty remains successful the aerial arsenic the aftermath of the meltdown astatine SVB is acold from implicit — crypto stablecoins successful peculiar are feeling the heat. USD Coin depegged from the U.S. dollar connected March 11, trading astatine $0.93 an hr aft disclosing it had $3.3 cardinal held SVB, triggering a domino effect connected different stablecoins.
FUD of the Week
Hedera confirms exploit connected mainnet led to theft of work tokens
The squad down distributed ledger Hedera confirmed that a astute declaration exploit connected the Hedera mainnet led to the theft of respective liquidity excavation tokens. The attacker targeted liquidity excavation tokens connected decentralized exchanges that derived its codification from Uniswap V2 connected Ethereum, which was ported implicit for usage connected the Hedera Token Service. The suspicious enactment was detected erstwhile the attacker attempted to determination the stolen tokens crossed the hashport bridge. Hedera didn’t corroborate the magnitude of tokens that were stolen.
Tether strikes astatine WSJ implicit ‘stale allegations’ of faked documents for slope accounts
The institution down stablecoin Tether has rebuffed reports claiming it had ties to entities that faked documents and utilized ammunition companies for entree to the banking system. Based connected leaked documents and emails, The Wall Street Journal reported that entities tied to Tether and its sister crypto exchange, Bitfinex, faked income invoices and transactions successful bid to unfastened slope accounts. Tether called the findings of the study “stale allegations from agelong ago” and “wholly inaccurate and misleading.” A “proud” spouse of instrumentality enforcement, the steadfast claims to routinely and voluntarily assistance authorities successful the U.S. and abroad.
NY AG sues KuCoin for selling securities and commodities without registration
New York Attorney General Letitia James has filed a suit against cryptocurrency speech KuCoin aft she was capable to bargain and merchantability crypto connected the exchange, which is not registered successful New York. James alleges that KuCoin violated securities instrumentality erstwhile it “sold, offered to sell, purchased and offered to acquisition cryptocurrencies that are commodities and securities” to New Yorkers. The enactment is 1 of the archetypal times a regulator claimed successful tribunal that ETH is simply a security.
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Editorial Staff
Cointelegraph Magazine writers and reporters contributed to this article.
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