Hi there. A nightly interpretation letter from the Office of the Comptroller of the Currency (OCC), the US banking regulator, saying banks could act as stable hubs of coins was the juice it took to force Bitcoin out of the doldrums. JPMorgan analysts see a future where 1 BTC could trade hands near $ 150,000, according to a new report.
In other regulatory news, the comment deadline for a controversial wallet rule has closed, and many batsmen opposed the Treasury Department’s proposed rules to improve stock market surveillance. More on that later, first the top stories of the day.
Bet on stable coins
A new letter from the US banking regulator could give stablecoin networks the same status as other global payment networks like SWIFT or FedWire. In a possible final act by Acting Comptroller Brian Brooks, US banks can now act as stable coin nodes and send transactions, provided they comply with the securities and other regulations. Bitcoin markets rebounded on the news.
Bitcoin mining machine prices are rising along with the price of bitcoin. According to CoinDesk, a surge in mining revenues, limited manufacturing capacity, and a number of new mining companies have created a supply bottleneck. It doesn’t help that established players like Riot and Marathon (both publicly traded) have bought out the latest ASIC miners.
The battle for control of the growing Brazilian crypto retail sector is heated. Argentina’s Ripio acquires BitcoinTrade, the second largest crypto exchange in South America’s largest economy. Last month, Mexico City-based crypto exchange Bitso raised a $ 62 million round of funding, part of which was earmarked for a push in Brazil.
- RIPPLE EFFECT: Shades of gray drop XRP from the Large Cap Crypto Fund after Ripple / SEC lawsuit. (CoinDesk)
- BUY TRADE BLOCK: CoinDesk has taken over the institutional analysis and data provider TradeBlock. ((WSJ)
- Mining Pivot: Two former Canaanite directors help a Chinese mobile games company enter the crypto mining sector. (CoinDesk)
- VOYAGING OUT: According to Voyager Digital, a cryptocurrency broker, fourth quarter revenue is expected to hit around $ 3.5 million, up 75% from the previous quarter. (CoinDesk)
- TOKEN GENERATOR: Crypto Exchange LCX is now licensed in Liechtenstein to help banks create their own digital assets and security tokens. (CoinDesk)
- PIONEER: DeFi is always amazing. (CoinDesk)
- KNOWN UNKNOWN? According to moderator Coinbase, One River has closed “one of the largest deals with digital assets in history”. The amount is unknown. ((Decrypt)
A new investment report from JPMorgan has set a price target of $ 146,000 for Bitcoin. The bullish target is the latest analytical comment that betting on Bitcoin is becoming a popular alternative to gold. “Bitcoin’s [current] Market capitalization of around $ 575 billion would have to increase 4.6 times – at a theoretical Bitcoin price of $ 146,000 – to match total private sector investment in gold via exchange-traded funds or bars and coins. “The only thing keeping the bitcoin beast in check? Volatility.
On the game
A comment deadline for a proposed set of rules that would increase reporting requirements for crypto exchanges and minimize blockchain users’ privacy was closed yesterday, and many large crypto firms rejected the maneuver.
The rulebook, cited by the US Treasury Department in December but primarily shaped by the global Financial Crimes Enforcement Network (FinCEN), requires exchanges to implement Know-Your-Customer (KYC) requirements for transactions sent to non-hosted wallet addresses or – addresses are sent that exist outside of a centralized or custodial environment.
This would mean identifying many types of personal wallets as well as counterparties for exchange customers. Reporting limits would be set for personal wallets that received more than $ 10,000 in a 24-hour period, and recording rules for transactions valued at over $ 3,000. FinCEN and the Treasury Department claim the increased surveillance will aid law enforcement and reduce financial ills.
The proposal was released late Friday, December 18 – a week before many US employees could expect a break for the winter vacation – as the Treasury Department only set a comment period of 15 days. Many commentators in the crypto industry described the hasty timeline as burdensome and potentially illegal.
Still, around 6,000 comments were submitted to FinCEN in this narrow window, with companies such as Square, Andreessen Horowitz (a16z), Kraken, and civil liberties organizations including the Electronic Frontier Foundation (EFF) and the Coin Center strongly opposed to the proposal . Since then, the reporting period has been “extendedUntil January 7th.
“The process itself is tainted with a ‘us-versus-you’ hostility to industry views – like the breakneck timeline for an important rule, the Treasury’s thinness of justifications, and the lack of meaningful engagement before the vacation in the country Eleventh hour shows rule creation, “said the cryptocurrency platform Coinbase in a prepared statement.
While the hasty schedule has been a common goal – the rule was proposed when U.S. Treasury Secretary Steven Mnuchin is about to step down – others noted the perverse impact these new reporting requirements could have on the fledgling crypto industry.
“This creates unnecessary friction and perverse incentives for cryptocurrency customers to avoid regulated entities for cryptocurrency transactions, and prompts them to use non-custody wallets or services outside of the US to more easily transfer their assets,” wrote Jack Dorsey, CEO of payments company Square.
In a press release, Kraken stated that the proposed rule would constitute a “material departure from existing law”. And one that Coinbase and a16z have promised if they pass fight in court.
In defense of the proposal, CoinDesk columnist and financial blogger John Paul Koning tweeted that the rules would align the crypto industry with money transmitter practices already in place, such as those of remittance giant MoneyGram.
“Coinbase, which sends cryptocurrency to a non-hosted address, is like MoneyGram, which sends physical money to a stranger. MoneyGram needs to collect personal information from the stranger. Shouldn’t Coinbase need to collect information about the non-hosted wallet? “Koning wrote.
In response, the Mint Center’s Research Director, Peter Van Valkenburgh, wrote that “equating a blockchain transaction with a remittance ignores the obvious difference … blockchain transactions can be peer-to-peer transactions while wires are always switched.”
Indeed, there are notable differences between the two systems of value transfer. With blockchains providing a public ledger of all transactions, a heightened reporting rule could represent a major intrusion into the financial privacy of an exchange user than just identifying the recipient of a transfer – the entire history of the financial life of both counterparties would be fully visible, including that of nothing have to do with a central exchange.
As the EFF said in its statement against the rules of FinCEN: “Anonymity is important precisely because financial records can be very personal and revealing: they offer an intimate window into a person’s life and reveal family, political, professional, religious and sexual ones Associations. “