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The price of bitcoin crashed below the closely watched level of $20,000 per bitcoin, down more than 70% from its all-time high at the end of last year. Ethereum and the other top ten cryptocurrencies BNB
Now, after Wall Street giant Deutsche Bank released a surprise bitcoin price forecast this week, reports have surfaced that the Biden administration may pass crypto legislation governing so-called stablecoins such as the recently collapsed terraUSD and its supporting coin luna as early as this year.
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This week, the President’s Financial Markets Task Force, a group that includes several financial regulators, met to discuss stablecoin legislation, with an unnamed official saying Coindesk the legislative package could become law by the end of the year. The source said they will define stablecoins for US regulatory purposes and explain how they are used.
The stablecoin market has exploded in recent years, with the largest stablecoin tether now boasting a market capitalization of nearly $70 billion. Stablecoins – cryptocurrencies whose price is pegged to traditional currencies such as the US dollar – are used to facilitate payments and make it easier for people to access certain cryptocurrency exchanges that do not support deposits direct.
This year, the collapse of the so-called algorithmic stablecoin terraUSD which used a cryptocurrency called luna to maintain its peg to the US dollar sent shockwaves through the crypto market and galvanized regulators to better control the technology and protect users.
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TerraUSD and the luna collapse have shaken the confidence of many crypto investors who have been further shaken by many crypto lending companies suspending withdrawals in recent weeks in the face of soaring bitcoin, ethereum and crypto prices. crypto.
In Europe, lawmakers this week reached agreement on tough new rules designed to ensure that stablecoins maintain sufficient reserves to meet redemption requests in the event of large withdrawals.
EU lawmaker Stefan Berger said the rules would “bring some order to the Wild West of crypto assets,” adding that the rules “will provide legal certainty for issuers of crypto assets, ensure equal rights for providers services and ensure high standards for consumers and investors”.