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Asset Manager Van Eck Says Stablecoins Should Be Treated as Investment Funds, Not Banks

Asset Manager Van Eck Says Stablecoins Should Be Treated as Investment Funds, Not Banks

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Stablecoins should be treated like investment products, not banks, Jan van Eck, the CEO of the investment firm VanEck, wrote in a Barron’s op-ed on Wednesday.

“They don’t lend money, so I don’t understand why there is a push to regulate them like banks. Bank regulation may in fact imply some sort of government guarantee,” he wrote.

Van Eck’s broadside followed just two weeks after the U.S. Undersecretary for Domestic Finance, Nellie Liang, testified before Congress that stablecoins “are bank-like products…as well as an investment-like product, which is why there was a regulatory gap.” A group of regulators called the President’s Working Group for Financial Markets published a report last year recommending that stablecoins fall under the same regulations as banks.

In her testimony, Liang said that technology companies without bank licensing should not offer stablecoins.

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Van Eck criticized the Working Group report for not seeing the similarities between stablecoins and money market funds.

“Despite the similarity that stablecoins have with money market funds, the PWG suggested that stablecoin issuers be “insured depository institutions.” Stablecoins invest in securities; they don’t lend like banks do,” van Eck wrote.

He made two recommendations for a potential, stablecoin regulatory framework.

First, he suggested that the SEC oversee stablecoins for a four-year trial period similar to how it considers investment funds under the Investment Company Act of 1940.

Secondly, van Eck recommended not forcing tax withholdings on stablecoins in the future. This measure would give stablecoins an opportunity to prove their value in the U.S. “Most stablecoins currently don’t pay dividends,” he wrote. “We need, however, to imagine a day when stablecoins pay interest and plan technologically and regulatorily for that day.”

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Jerald David, the president of asset management firm Arca supports van Eck’s first proposal, saying that “stablecoins on the market today resemble more of a ‘40 Act product than a bank,”

“Adding a wrapper, and creating a Blockchain Transferred Fund would allow for a U.S. dollar proxy that would be welcomed by the banks and large scale financial institutions,” David said.

75 basis points

Crypto, Stocks, PMs Sink Lower — All Eyes On The Fed’s Next Rate Hike As Ethereum’s Merge Hype Wavers

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Crypto, Stocks, PMs Sink Lower — All Eyes On The Fed’s Next Rate Hike As Ethereum’s Merge Hype Wavers

The crypto economy has slipped under the $1 trillion range once again after briefly rising to a high of $1.16 trillion on September 14. Signs show that Ethereum’s Merge hype has seemingly left the building and market participants are now waiting for the upcoming Federal Reserve meeting next week. Presently, the crypto economy is down 3% lower over the last day and is currently valued at $965 billion.

Major Stocks, Crypto Markets, Precious Metals, and Real Estate Drops Further — 80% of Investors Expect an Aggressive Fed Rate Hike

The Merge is over and the hype leading up to the transition from proof-of-work (PoW) to proof-of-stake (PoS) is now gone. Ethereum (ETH) and the rest of the crypto economy saw decent gains leading up to The Merge, but following the change, the entire crypto market is down more than 3% during the past 24 hours.

Currently, statistics show the market valuation of all the crypto tokens in existence is $965.42 billion. The day prior, before The Merge, the crypto economy was valued at $1.16 trillion. While the entire crypto economy slid 3% lower, bitcoin (BTC) shed 2.6% and ethereum (ETH) lost more than 7% against the U.S. dollar. At the time of writing, there’s $87.39 billion in 24-hour global trade volume and tether (USDT) commands $62.31 billion of today’s volume.

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BTC slipped under the $20K per unit zone to $19,794 per bitcoin, while ethereum (ETH) slipped to $1,495 per coin. Amid the crypto economy rout, Wall Street is suffering as well as all four major indexes are down on Thursday afternoon. Precious Metals (PMs) like gold shed 1.70% during the past day, and silver is down 2.09% against the U.S. dollar. Investors are worried about the upcoming U.S. Federal Reserve rate hike following the U.S. Bureau of Labor Statistics publishing August’s consumer price index (CPI) report.

Fed chair Jerome Powell (pictured above) and the Federal Open Market Committee (FOMC) are expected to raise the benchmark bank rate by 75bps next week.

The Federal Open Market Committee (FOMC) is expected to convene on September 20-21. Data from CME Group indicates that 80% of investors expect the Fed to hike the rate by 75 basis points next week. Jobless claims in the U.S. slid by 5,000 to 213,000 this week, which was above market predictions. The bond market is erratic as well, as Treasury yields jumped higher across the board. The two-year Treasury note’s yield was up to 3.85% rising roughly six basis points (bps) on Thursday.

Meanwhile, not many assets are safe, as reports show the U.S. housing market has taken the “sharpest turn” since the 2008 real estate crash. Mortgage rates, thanks to the U.S. central bank’s rate hikes have rallied above 6%. A 75bps increase codified by the Federal Reserve next week, will push mortgage and loan rates even higher. It can easily be argued that crypto markets, equities, and precious metals won’t react well to next week’s Fed hike. All of the FOMC rate hikes during the last few months have put a lot more pressure on a myriad of markets.

Tags in this story

75 basis points, 75bps, Benchmark Bank Rate, bond market, CME Group, crypto economy, Crypto markets, Fed, Fed rate hike, Federal Reserve, FOMC Meeting, gold, Hype Merge, merge, PMS, Precious Metals, Rate Hike, silver, Stock Market, The Merge hype

What do you think about the current state of crypto, precious metals, and equity markets at the moment? Do you expect the Federal Reserve to raise rates by 75bps next week? Let us know your thoughts about this subject in the comments section below.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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ada

Crypto Economy Loses $102 Billion In 30 Days — BTC, SOL Shed The Most Losses

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Crypto Economy Loses $102 Billion In 30 Days — BTC, SOL Shed The Most Losses

A great deal of digital currencies are down in value during the last 30 days and the worst performing crypto out of the top ten coins with the largest market valuations was solana, losing 19.12% against the U.S. dollar. Bitcoin was the second biggest loser in the top ten, as the leading crypto asset shed 12.71% in USD value this month.

Despite Mid-August Pump, Crypto Economy Shrank by $102 Billion Last Month

Crypto assets saw a decent rise on August 14, 2022, as bitcoin (BTC) jumped over the $25K zone and ethereum (ETH) surpassed $2K per unit. Despite the jump in value, BTC shed 12.71% in the last 30 days from Wednesday, August 3, 2022, up until Friday, September 2, 2022.

BTC/USD daily chart.

Ethereum’s monthly loss was less brutal after ETH took a 2.75% hit against the U.S. dollar. BNB lost ​​7.02%, XRP dropped 10.53% against the dollar, and ADA slid 9.34%.

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ETH/USD daily chart.

Solana (SOL) was the biggest loser out of the top ten crypto assets as it lost 19.12% against the dollar. The tenth largest crypto asset, polkadot (DOT), shed 8.93% during the last 30 days.

SOL/USD daily chart.

Historical statistics from coinmarketcap.com indicate that the global cryptocurrency market cap on August 3 was $1.06 trillion and by September 2, the overall valuation of the entire crypto economy was under $1 trillion at $982.53 billion.

Crypto prices were different 30 days ago as well, as bitcoin (BTC) was trading for $22,829 per unit. Ethereum (ETH) was swapping for $1,614 per coin, and BNB was fetching $282 per unit. The best-performing crypto asset on August 3 was optimism (OP) as it was up 18.24% against the U.S. dollar.

CHZ/USDT daily chart.

However, OP has lost 38.2% against the dollar this month. Lido dao (LDO) saw an 18.04% rise 30 days ago, but it’s lost 17.7% against the dollar this month. Chiliz (CHZ) was down 9.87% on August 3, but during the last month, CHZ gained 64.7% against the USD.

Theta network (THETA) was down 5.45% a month ago, and during the last 30 days, it has shed 17.9% in USD value. 30 days ago, the total value locked (TVL) in decentralized finance (defi) was $89.81 billion and today the TVL is $59.58 billion.

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Makerdao had $8.53 billion locked and as of September 2, Makerdao’s TVL is now down to $7.96 billion. Lido had $7.39 billion 30 days ago and today, it’s around $6.96 billion. The TVL in cross-chain bridges is $9.11 billion, down 25.1% this month, and Polygon bridges dominate by $4.21 billion.

Tags in this story

$CHZ, ada, AVAX, Bitcoin, bnb, BTC, Cardano, Chiliz, Crypto, crypto assets, crypto economy, Cryptocurrencies, DOT, ETH, Ethereum, lido Dao, SOL, Tether, USDT, XRP

What do you think about the crypto economy’s price action during the last 30 days? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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$930 billion erased

BNB Was The Top Ten’s Best Market Performer In Q2, Bitcoin Takes Second Place — Solana Performed The Worst

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BNB Was The Top Ten’s Best Market Performer In Q2, Bitcoin Takes Second Place — Solana Performed The Worst

With the first half of the year gone, statistics from the second quarter of 2022 indicate that the crypto economy has tumbled significantly in value, and crypto tokens in the top ten market positions have lost 30% to 60% in USD value during the past three months. Q2 data further shows that binance coin managed to avoid the losses its competitors have taken, and solana was the worst market performer out of the top ten crypto assets by market capitalization.

Top Ten Crypto Assets Suffered Significant Losses During the Last Quarter

It’s been a crazy Q2, to say the least, as numerous crypto assets within the digital currency economy are at much lower values than they were three months ago. During the second quarter of 2022, bitcoin (BTC) for instance, shed 42.92% of its value against the U.S. dollar.

Statistics also show that ethereum (ETH), the second-largest crypto asset by market cap, lost 47.24% over the last three months. While much of the crypto economy’s losses stemmed from the aforementioned two crypto assets, a wide variety of top-positioned digital currencies have shed massive value.

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BNB was the top ten’s best-performing crypto asset in Q2 2022 as it only took a loss of 33.67%, while the second best performer, bitcoin (BTC), lost 42.92% of its value against the U.S. dollar.

The Binance Smart Chain network’s BNB, however, is only down 33.67% in Q2, which makes BNB the best performer during the second quarter among the top ten crypto assets. BTC’s 42% plunge was the second best market performance out of the top ten, while cardano (ADA) managed to capture the top ten’s third best market performance in Q2.

Solana (SOL) was the top ten’s worst-performing crypto asset as the cryptocurrency lost 59.19% during the last three months.

ADA lost 45.49% in value against the U.S. dollar in three months. XRP lost 48.99% in Q2, while dogecoin (DOGE) lost 48.51%. Solana (SOL) was the top ten’s worst market performer as it lost 59.19% during 2022’s second quarter.

Dozens of Relatively Unknown Tokens Rise, $930 Billion Erased from the Crypto Economy in Q2

Most of Q2’s top-performing crypto assets that are not in the top ten positions were relatively unknown digital currencies. The largest gains recorded in Q2 were captured by the tokens like smartofgiving (AOG), followed by pitbull (PIT), and bosagora (BOA). The worst performers in Q2 include bluesparrow, piedao, terra luna classic, and wrapped terra luna classic.

Hundreds of coins out of the 13,414 crypto assets traded on 514 exchanges worldwide have lost more than 90% in value in Q2. In contrast, there are only a few dozen crypto assets that did perform well compared to the hundreds of coins that lost value during the second quarter. During the last three months alone, $930 billion in USD value has left the crypto economy.

Tags in this story

$930 billion erased, 2022, ada, AOG, best performer, bnb, BTC, crypto assets, crypto economy, Crypto Economy in Q2, crypto economy’s losses, Doge, ETH, Gains, Losses, piedao, PIT, Q2, Q2 2022, SOL, Top 10, Top Ten, Top Ten Cryptos, worst performer, XRP

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What do you think about the second quarter’s crypto market performances? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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