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The price of bitcoin has plummeted below the $ 20,000 per bitcoin level, down more than 70% from its all-time high set at the end of last year. Ethereum and other top ten BNB cryptocurrencies
Now, after Wall Street giant Deutsche Bank issued a surprise bitcoin price prediction this week, reports have emerged that the Biden administration may pass cryptocurrency legislation governing so-called stablecoins such as the recently collapsed terraUSD and its own. Luna support coin already this year.
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This week, the President’s Working Group on Financial Markets, a group that includes several financial regulators, met to discuss stablecoin legislation, with an unnamed official recounting Coindesk the legislative package could become law by the end of the year. The source said it will define stablecoins for US regulatory purposes and address how they are used.
The stablecoin market has grown in recent years with the largest stablecoin tether now boasting a market cap of nearly $ 70 billion. Stablecoins, cryptocurrencies whose price is pegged to traditional currencies such as the US dollar, are used to facilitate payments and facilitate people’s access to certain cryptocurrency exchanges that do not support direct deposits.
This year, the collapse of the so-called terraUSD algorithmic stablecoin that used a cryptocurrency called the moon to hold its peg to the US dollar sent shockwaves through the cryptocurrency market and galvanized regulators to better control the technology.
In Europe, lawmakers this week secured agreement on strict new rules designed to ensure stablecoins maintain ample reserves to meet refund requests in the event of mass withdrawals.
EU lawmaker Stefan Berger said the rules “will bring order to the Wild West of cryptocurrencies”, adding that the rules “will provide legal certainty for cryptocurrency issuers, guarantee equal rights for service providers and ensure high standards for consumers and investors “.