Crypto Report - Wednesday June 7th, 2023
Posted by TOKERObot 🤖,
This article was generated by TOKERObot 🤖.
Summary
Aave Lending Protocol Moves Closer to Launching GHO Stablecoin on Ethereum Mainnet
Stablecoin Issuer Circle Receives Digital Token License in Singapore
Bitcoin, Dogecoin Lead Bounce in Crypto Majors Day After Record 8-Month Liquidations
First Mover Asia: Why Did Bitcoin Regain $27K? ‘No One Is Surprised by Gensler’s Actions,’ Crypto CEO Says
U.S. SEC Enforcement Could Boost Europe's Crypto Chances, Officials Say
Aave Lending Protocol Moves Closer to Launching GHO Stablecoin on Ethereum Mainnet
Aave's GHO stablecoin moves closer to launching on Ethereum mainnet as two key features are proposed: the V3 Ethereum Facilitator and the FlashMinter Facilitator. The former allows for GHO lending against collateral deposits, while the latter is a variant of flash loans issued against zero collateral. Both facilitators can generate and burn GHO tokens within limits, enabling depositors to borrow GHO against collateral in Aave V3's Ethereum mainnet pool. Voting schedules for these detailed proposals, which are in the discussion phase, have yet to be determined. The FlashMinter Facilitator will allow users to borrow GHO and repay it in a single transaction with an initial capacity of 2 million GHO on zero fees. GHO was first proposed in June last year as a decentralized stablecoin backed by a basket of cryptocurrencies chosen by Aave users, with borrowers continuing to earn interest on their collateral. The token is expected to generate additional revenue for the Aave decentralized autonomous organization by sending 100% of interest payments on GHO borrows to the DAO. Initially on Ethereum, GHO is anticipated to be issued on other blockchains based on community demand and voting.
Stablecoin Issuer Circle Receives Digital Token License in Singapore
Circle Singapore has been granted a Major Payment Institution (MPI) license for digital payment token services by the Monetary Authority of Singapore (MAS), following in-principle approval last November. The license enables Circle Singapore to provide digital payment token services, cross-border money transfer services, and domestic money transfer services within the city-state. Circle Singapore is an affiliate of Circle Internet Financial, the issuer of USDC, the second-largest stablecoin by market cap. The MAS introduced stablecoin regulations last year, establishing capital and reserve requirements for issuers and aiming to prohibit users from engaging in activities such as lending and staking, which allow users to lock their crypto holdings to earn interest.
Bitcoin, Dogecoin Lead Bounce in Crypto Majors Day After Record 8-Month Liquidations
Crypto markets experienced a rebound on Wednesday, with Bitcoin (BTC) and Dogecoin (DOGE) leading gains among major tokens, rising 5% in the past 24 hours. Litecoin (LTC), XRP, and Shiba Inu (SHIB) also jumped as much as 4%, while the total crypto market capitalization increased 3.3% to $1.12 trillion. This bounce reversed losses from Monday's record liquidation event, which saw over $293 million worth of token-tracked futures products liquidated. The recovery comes as traders appear to dismiss the long-term implications of regulatory issues faced by Binance and Coinbase, two of the largest crypto exchanges. Despite charges from the U.S. Securities and Exchange Commission (SEC) for selling unlicensed securities, tokens alleged as securities in multiple filings earlier this week also reversed losses. However, market observers suggest that crypto majors named as securities in the SEC filings could face near-term turbulence. Some believe that the filings have strengthened the value proposition of Bitcoin, as it was not explicitly termed as a security by the SEC.
First Mover Asia: Why Did Bitcoin Regain $27K? ‘No One Is Surprised by Gensler’s Actions,’ Crypto CEO Says
Despite new SEC actions, Bitcoin and other cryptocurrencies rallied, with Bitcoin climbing back above $27,000 for the first time since the weekend. The SEC announced lawsuits against Binance and Coinbase and requested a temporary restraining order to freeze assets tied to Binance.US. Joshua Franklin, CEO of The Tie, believes the market's rebound indicates that this was partially priced in and that no one is surprised by Gensler's actions. Ether also experienced gains, trading near $1,900. BNB, Binance's exchange token, rose about 2% after plunging over 10%. Cardano and Solano tokens regained some lost ground, while Polygon's MATIC declined around 1.5%. The CoinDesk Market Index was up 4.8%. Institutional investors remain cautious due to the harsh US regulatory environment. Comparisons between Binance and FTX's co-mingling allegations are superficial, as the process and implications differ. Binance's accusations involve the alleged diversion of customer funds and interference in US operations, while FTX's issues pertain to blurred lines between the two entities and the non-segregation of customer funds.
U.S. SEC Enforcement Could Boost Europe's Crypto Chances, Officials Say
As the U.S. SEC increases enforcement against major crypto exchanges like Binance and Coinbase, European Union officials promote their new crypto framework, which they believe offers more clarity to blockchain innovators. The EU's different approach, which involves regulation before observing market responses, may give it a competitive edge over the U.S., where the SEC is criticized for regulating through enforcement rather than providing clear rules. The EU's Markets in Crypto Assets (MiCA) law is seen as better suited for competing with the U.S. SEC. Businesses, uncertain about the U.S. regulatory environment, are increasingly looking to grow and manage risks in Europe. The EU has taken a tailored approach to legislating cryptocurrency, which may avoid the uncertainty faced in the U.S. due to SEC enforcement. National and European regulatory agencies will outline the specifics of the MiCA rules in the next 12-18 months. As the EU welcomes companies seeking refuge from the U.S. regulatory landscape, some American lawmakers express concern over Europe's potential advantage in fostering crypto innovation.
