Ether (ETH) price fell below the $3,000 support on Sept. 20 as global markets entered a risk-aversion mode. The Invesco China Technology ETF (CQQQ) closed down 4.2%, while the SPDR S&P Metals and Mining ETF (XME) lost 3.8%. Some analysts pointed to the potential ripple effects of the default of Evergrande, a major Chinese real estate company. In contrast, others blame the ongoing debates over the debt limit in Washington as the catalyst for this week's volatility. As a result, the CBOE Volatility Index (VIX), usually referred to as the "stock market fear index," jumped by more than 30% to …

Tether Holdings Ltd, the issuer of the largest stablecoin, Tether (USDT), reported that its total market capitalization had crossed $64 billion for the first time in history. The company called the event a “milestone,” adding that it is another indication of the cryptocurrency market’s “continued trust and confidence” in its stablecoin. Tether’s $USDt market cap hits $64B! A new milestone reached and another indication of the market’s continued trust and confidence in #Tether ! pic.twitter.com/t85i6e6UQt — Tether (@Tether_to) August 16, 2021 In detail, Tether’s business model revolves around providing digitized dollars to cryptocurrency traders and investors. In doing so, the …

On Wednesday, several United States senators proposed an amendment to an infrastructure bill that would clarify language concerning crypto. Even though that proposal seemingly has the support of the White House, U.S. Treasury Secretary Janet Yellen has reportedly come out against the measure. According to a Friday report from the Washington Post, Yellen raised objections to the proposed amendment with lawmakers on Thursday. She lobbied Senator Ron Wyden regarding the changes which, if added to the bill, would exclude certain crypto companies from the reporting requirements for brokers. Wyden is one of three senators behind the amendment with Cynthia Lummis …

Senator Elizabeth Warren, a Democrat from Massachusetts, has called on United States Treasury Secretary Janet Yellen and other regulators to develop a “comprehensive and coordinated” framework for addressing risks in the cryptocurrency market. In a letter addressed to Yellen, the Democratic senator said the Financial Stability Oversight Council, also known as FSOC, “must act quickly to use its statutory authority to address cryptocurrencies’ risks and regulate the market to ensure the safety and stability of consumers and our financial system.” She continued: “As the demand for cryptocurrencies continues to grow and these assets become more embedded in our financial system, …

United States Treasury Secretary Janet Yellen has told financial regulators that the government must act quickly to establish a regulatory framework for stablecoins. The comments came at Monday's meeting of the President's Working Group on Financial Markets. The group discussed the rapid growth of stablecoins, revealing plans to issue regulatory recommendations in the coming months, according to Reuters. The group also deliberated on stablecoins as a means of payment, possible risks to end-users, and their broader impact on the U.S. financial system and national security. In February, Yellen warned that the misuse of crypto assets has been a growing problem …

The Federal Reserve’s ongoing research into central bank digital currencies, or CBDCs, has broadened to include stablecoins and whether they can be effectively regulated. In their paper, which was published in SSRN’s eLibrary on July 17, Gorton and Zhang argue that “privately produced monies” such as stablecoins are “not an effective medium of exchange because they are not always accepted at par and are subject to runs.” The authors then go on to propose solutions to address what they consider to be “systemic risks created by stablecoins.” After taking a deep dive into the history of private money, beginning with …

U.S. Secretary of the Treasury Janet L. Yellen announced plans to convene the President's Working Group on Financial Markets, or PWG, as well as the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation to discuss possible interagency work with regard to stablecoins. The meeting is set to take place on Monday July 19. Secretary Yellen said: “Bringing together regulators will enable us to assess the potential benefits of stablecoins while mitigating risks they could pose to users, markets, or the financial system. In light of the rapid growth in digital assets, it is important for …

Following major sell-offs in cryptocurrency markets amid reports of United States President Joe Biden's capital gains tax rise proposal last week, the Biden administration defended nearly doubling tax levies for only the “very, very richest.” A senior Biden administration official claimed that only 0.3% of taxpayers in the U.S. would be affected by higher levies on their investments under the new capital tax plan. “There’s increasing evidence that over recent years in fact many, many of the returns at the very top are what they call above-market rates of return, rents and so on. Taxing the people who are doing …

Kristin Smith, executive director of the Blockchain Association has dismissed fears that the United States Department of the Treasury was close to cracking down on Bitcoin (BTC) and cryptocurrencies. Indeed, rumors of the Treasury bringing money laundering charges against some financial institutions using cryptocurrencies began circulating on social media over the weekend. The report emerged during a period of massive selloffs in the crypto space, with the market capitalization dropping over $240 million as Bitcoin slid to $52,000. In an interview with CNBC, Smith debunked the reports, stating that it was the Department of Justice’s remit to charge companies with …

The craze behind nonfungible tokens, or NFTs, has seemingly reached peak parody after NBC's famed Saturday Night Live sketch comedy show addressed NFTs in a skit featuring Kate McKinnon as United States Secretary of the Treasury Janet Yellen. In Saturday’s show hosted by former cast member Maya Rudolph, Yellen is speaking at a university economics class when a student asks her to address exactly what non-fungible tokens are through the medium of rap. “What the hell’s an NFT? Apparently cryptocurrency. Everyone’s making so much money — can you please explain what’s an NFT?” The sketch features an absurd list of …

U.S.-based crypto advocacy group, the Blockchain Association, is lobbying key figures in the Biden administration to advocate for more favorable regulations. The Association’s executive director, Kristin Smith, told Fox Business the group has already met with or is in the process of scheduling meetings with high-ranking Whitehouse officials including Treasury Secretary Janet Yellen, Deputy Secretary nominee and former BlackRock executive Wally Adeyemo, along with representatives of the Treasury Department. Citing reported comments from Yellen about how the primary utility of cryptocurrency is “illicit financing,” Smith said the association’s key aim was to assist the Treasury chief to “understand the value …

Janet Yellen may be open to having United States regulators consider a digital currency, but she still seems to have strong concerns about Bitcoin (BTC). In an interview for The New York Times' DealBook DC Policy Project held on Monday, Yellen said it makes sense for the Federal Reserve to look into a digital dollar. Speaking to Andrew Ross Sorkin, the treasury secretary said a digital dollar maintained by the Fed could result in "faster, safer and cheaper payments," but added there were "a lot of things to consider" before a possible rollout. She questioned how regulators would "manage money …