Tether’s regulatory proposal is ‚apocalyptic‘ for crypto

The Stable Act could mean the end of Tether.

The US government wants tighter controls on stablecoins.

Tether could be replaced by a regulated crypto-dollar.

Unregulated stablecoins such as Tether face increasing regulatory pressure from the US government.

A new US bill called the Stable Act is causing anxiety in the crypto community. The introduction of this law could effectively put an end to billions of dollars in transactions and set the industry back several years.

The law, as reported by BeInCrypto , calls for banking licenses for stablecoin issuers such as Tether.

It doesn’t end there. The bill proposes additional requirements for Federal Reserve reporting. It also offers issuance approval in addition to constant checks, and an insurance policy to cover assets.

Another proposal may require stablecoin issuers to store their reserves directly with the U.S. Federal Reserve. This puts them under the control of the central bank and significantly limits their open use.

An apocalyptic law for Tether and crypto

A report from Dragonfly Research offers an in-depth analysis of the current use of stablecoin . He concludes that if the bill passes, it could spell the end of Tether:

Make no mistake: the day Tether is slain it will prove to be apocalyptic .

Tether is by far the largest and most widely used stablecoin. Its supply has grown 410% this year alone, from $ 4.1 billion in market cap in early January to $ 20.9 billion today, according to the Tether Transparency Report .

Tether, or the “cryptodollar” as the report researcher calls it, has revolutionized the industry over the past two years. He opened up huge trading gateways with massive liquidity that was not possible using fiat.

The USDT has been a liferaft for many citizens in countries with hyperinflation or tight currency controls. It also helped fuel the rise of DeFi alongside Ethereum.

However, several US agencies and prosecutors are investigating Tether. The company has so far produced very few defenses or audits.

Tether cannot support its monumental growth, which is not sustainable, the research added. The authors say the day of his demise will bring down the entire industry.

Crypto markets will collapse, exchanges will be in disarray, millions of crypto traders will likely have their assets frozen, and prices will drop everywhere.

The future of stablecoins

Currently, the “Stable Act” is only a proposal. It is the subject of much criticism from industry leaders and entrepreneurs, for example. They say the proposal sends the United States back to a dark age in terms of innovation and digitization.

However, a recent statement from the Presidential Task Force bodes ill for this crypto segment. The statement suggests that all stablecoin holders should be subject to KYC (know your customer) requirements, which indicates that stablecoins are still in their sights.

Tether may not be the future of the digital dollar. First, a regulated stablecoin that becomes the de facto standard is a likely replacement. Then there will inevitably be more audits and identity checks by governments, banks and tax authorities. If so, the freedoms we have today with the digital money movement could be a thing of the past.

Bitcoin price (BTC) cracks 25,000-US-dollar mark – These are the reasons

The Bitcoin price has not only reached a new all-time high, but also cracked the psychologically important mark of 25,000 US dollars.

Even on the otherwise rather quiet holidays, where rather little is traded, the bitcoin price knows no stopping. Why the pressure towards the north is currently so high.

In the morning hours of Boxing Day, the time had come. For just a few seconds, the Bitcoin price briefly touched the 25,000 US dollar mark. Immediately afterwards, the price dropped minimally and now stands at 24,940 US dollars at the editorial deadline. This is an impressive gain, considering that the price was still hovering around 18,000 US dollars at the beginning of December. In the second half of December, the bitcoin price started its final Christmas rally, as the chart shows:

Pressure from institutional investors does not let up

As explained many times before, the bitcoin rally in the last quarter of 2020 is primarily due to institutional investors. In other words, it is not primarily the money of private individuals that is rushing into the market, but that of companies, hedge funds, fund companies, etc.

As in the traditional financial sector, these professional players determine how prices develop. For example, not only has Nasdaq’s Microstrategy bought Bitcoin for another $650 million, as CEO Michael Saylor announced via Twitter on December 21, but so have several traditional investment houses.

Among them would be the American insurance company MassMutual, which recently acquired Bitcoin for $100 million, as well as the hedge fund Guggenheim, which invests up to 10 percent of its five billion fund in BTC. Practically every day, new large investors are added, who acquire Bitcoin, but also other cryptocurrencies, in the two- or three-digit million range. This trend is then also reinforced by private investors, who are also increasingly jumping on the crypto bandwagon again.

Bitcoin price: What’s next?

It is no secret knowledge that many more institutional investors will continue to enter the crypto market in 2021. As the market capitalization of the crypto market remains small compared to other asset classes, these capital inflows should continue to provide support for cryptocurrencies.

Of particular interest here is the growth of traditional securities securitizations. These allow investors without a wallet and a willingness to hold tokens to get into bitcoin and the like. Thus, several new „Bitcoin securities“ such as Exchange Traded Notes (ETNs) have been issued in recent weeks. In this context, the classic securities account is sufficient to be able to participate in the Bitcoin price. This should also be seen as a positive sign on both a private and institutional level.

BTC-ECHO readers had the right instinct

The fact that our readers have a good feel for the price is proven by our screenshot of the Opinary survey that was placed on our site over a week ago. There we asked whether the bitcoin price would rise to over 25,000 US dollars this year. Of the more than 8,500 participants, 76 percent answered YES and were therefore right.

With this in mind, we wish our readers continued good instincts for 2021.

BIGG Digital Assets compra 40 monedas de bits adicionales; la tesorería total alcanza los 189,5 BTC

BIGG Digital Assets Inc., propietaria de Netcoins, una empresa de corretaje de criptografía en línea que facilita a los canadienses la compra y venta de bitcoin, y propietaria de Blockchain Intelligence Group (BIG), un desarrollador de soluciones de búsqueda de tecnología de cadenas de bloques, puntuación de riesgos y análisis de datos, ha anunciado hoy que ha adquirido 40 bitcoins adicionales (BTC) para la tenencia de tesorería a largo plazo.

BIGG compró estos bitcoins por 24.854 dólares canadienses por BTC para un total de 994.160 dólares canadienses.

Esta compra, sumada a las existencias de bitcoins de BIGG, eleva su tesorería a ~189,5 bitcoins, valorados en ~4,65 millones de dólares canadienses (3,63 millones de dólares estadounidenses) al 7 de diciembre de 2020.

Mark Binns, CEO de BIGG, señala, „BIGG (antes BIG Blockchain Intelligence Group) comenzó a acumular bitcoin desde el año 2015. Bitcoin se ha apreciado sustancialmente como una clase de activo en horizontes de 1, 2, 5 y 10 años, y creemos que el potencial para una apreciación impactante de los precios es más fuerte hoy que nunca“. La participación y compra institucional, y la adopción de la corriente principal, continuarán impulsando el precio del bitcoin, ya que la oferta sigue siendo limitada. Creemos que nuestros holdings de bitcoin pueden actuar como autofinanciamiento, con el tiempo, a medida que continuamos expandiendo nuestro núcleo de comercio de criptografía y negocios de software forense de cadena de bloques“.

Bitcoin och dollardominans: Fem faktorer bakom den aktuella Altcoin-säsongen

Bitcoin-priset handlas nästan på sin tidigare rekordhöga nivå, och vid en prispunkt som för många känns oåtkomlig att äga ett helt mynt har intresset åter vänt sig mot altcoins. BTC-dominans har sjunkit som ett resultat, och samtidigt bryter dollarn ner från stöd.

Det tidigare scenariot gav den perfekta stormen för den största altcoin säsongen någonsin. Är den här otroliga explosionen av rikedomsgenerering på väg att slå till för andra gången?

Ethereum, XRP och Litecoin: Major Altcoins exploderar när BTC-dominans och dollarn faller

Under november månad satte Bitcoin en högre höjd över sin topp 2019 och ökade ytterligare $ 5.000 bortom den. Uppväxten sugade kapital ur altcoins, men nu när fullblåst FOMO har återvänt till krypto orsakar vinstintag från BTC till alts stora altcoins att rippa.

Bara i november ökar Ethereum, XRP och Litecoin med 50% eller mer. Ripple, som har varit den sämst presterande på en björnmarknad under tre år, skjutit i höjden över 100%.

Crypto är tillbaka på en tjurmarknad, och medan det kommer att finnas starka korrigeringar på vägen är riktningen för medellång sikt troligtvis uppåt.

Altcoins har haft faser av överprestanda jämfört med Bitcoin tidigare, men det som gör den här tiden speciell beror på att DXY-dollarns valutaindex sjönk samtidigt.

I diagrammet nedan led BTC-dominans och DXY bara en annan gång samtidigt. Resultatet var kryptobubblan 2017 och den största alt-säsongen någonsin. Är historien på väg att upprepas?

Varför dyra Bitcoin och en försvagande Greenback Sparks Alt Season

Utöver tekniken och diagrammen för de två mest dominerande krafterna som altcoins strider mot via handelspar som tydligt visar samma inställning som förra altcoin-säsongen, finns det också grundläggande orsaker till denna förändring i känslan.

För det första kan uppfattningen om priset per Bitcoin fungera mot det till förmån för altcoins. Dyra BTC driver deltagarna mot billigare altcoins.

Försvagningen av dollarn förstärker effekten av denna åtgärd och orsakar en massiv breakout i altcoins över hela linjen. Tillgångarna har, precis som Bitcoin, varit på en björnmarknad och efter fyra år kan de återgå till en tjurtrend.

Om det är sanningen och förhållandena är desamma som förra gången, kommer ytterligare en omgång med otrolig rikedom.

Biden dovrebbe integrare Bitcoin nel sistema finanziario

Biden dovrebbe integrare Bitcoin nel sistema finanziario statunitense, dice Niall Ferguson

Lo storico dell’economia ha detto che l’amministrazione del Presidente eletto Biden dovrebbe considerare la Bitcoin come un’alternativa al „dollaro digitale cinese“.

Lo storico economico e finanziario britannico Niall Ferguson ha detto che gli Stati Uniti devono trovare la Bitcoin Bank propria strada nell’adozione delle crittocurrenze, piuttosto che „costruire [le proprie] versioni dei sistemi di pagamento elettronico della Cina“.

In un articolo di Bloomberg, Ferguson ha detto domenica che l’attuale pandemia è stata generalmente buona per l’adozione delle crittovalute, accelerando una „rivoluzione monetaria“ in tutto il mondo. Tuttavia, lo storico ha osservato che la Cina sta „avanzando rapidamente“ nella diffusione del suo yuan digitale e nell’uso crescente dei pagamenti mobili. App come Alipay e WeChat Pay gestiscono circa 40 trilioni di dollari di transazioni all’anno.

Lo storico ritiene che queste misure della Cina servano da modello per altri paesi che sviluppano sistemi di pagamento transfrontalieri e pagamenti di rimesse. Tuttavia, ha sconsigliato agli Stati Uniti di farlo:

„Anche i governi che si oppongono alla penetrazione finanziaria cinese, come l’India, stanno essenzialmente costruendo le proprie versioni dei sistemi di pagamento elettronici cinesi“, ha detto Ferguson. „Piuttosto che cercare di creare un dollaro digitale in stile cinese, la nascente amministrazione di Joe Biden dovrebbe riconoscere i vantaggi dell’integrazione di Bitcoin nel sistema finanziario statunitense“.

Coinbase che non rispettano i requisiti fiscali e di reporting

Ferguson ha aggiunto che le autorità statunitensi dispongono già di metodi per affrontare l’applicazione delle norme che circondano il Bitcoin (BTC). L’Internal Revenue Service ora richiede alle persone fisiche di fare una dichiarazione relativa alle loro partecipazioni criptate nei loro rendimenti e potrebbe andare a cercare gli utenti di Coinbase che non rispettano i requisiti fiscali e di reporting. Inoltre, il Federal Bureau of Investigation ha messo gli occhi su casi di riciclaggio di denaro sporco che utilizzano il cripto.

„Il punto è semplicemente che i dati finanziari degli individui rispettosi della legge sono meglio protetti da Bitcoin che da Alipay“, ha detto lo storico.

Le opinioni personali del presidente eletto su cripto, sulle valute digitali della banca centrale e sul Bitcoin non sono ben note, ma ci sono indicazioni che le persone nella sua amministrazione potrebbero potenzialmente aiutare a guidare il cripto in un quadro normativo più amichevole negli Stati Uniti. Per esempio, Biden potrebbe sfruttare l’ex presidente della Commodity Futures Trading Commission Gary Gensler come suo vice segretario del Tesoro.