The biggest news in the cryptoverse on March 8th was Silvergate Capital’s announcement that its crypto bank would cease operations following earlier reports of an attempt to recover with the FDIC. Meanwhile, 3AC founders have developed the business model for the upcoming OPNX exchange, with CFTC Chairman Rostin Benham saying that stablecoins and ETH are commodities.
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Silvergate Bank ceases operations and goes into liquidation
Silvergate Bank plans to scale back operations and liquidate March 8 Press release from the holding company, Silvergate Capital.
Silvergate said banking operations would be suspended in accordance with regulations.
It said the course of action would include the full repayment of all deposits. It also said it is exploring ways to settle claims and ensure the continued residual value of assets such as proprietary technology and tax assets.
The company said it made the decision in light of “recent industry and regulatory developments,” without citing specific events.
Silvergate has not disclosed whether it will file for bankruptcy.
Failed bank Silvergate and FDIC discuss recovery plans
Collapsed cryptocurrency bank Silvergate is working with U.S. regulators to find a way to recover, according to a Bloomberg report. March 7.
Bloomberg reported that Federal Deposit Insurance Corporation (FDIC) officials visited Silvergate’s California headquarters last week with permission from the Federal Reserve.
Silvergate has yet to decide how to handle the financial issues that began last week. However, according to the report, crypto-friendly banks may seek investments from elsewhere in the crypto industry to restore liquidity.
3AC Founders Are Back With OPNX Exchange Tokenized Bankruptcy Filing
Three Arrows co-founder Kyle Davis has sparked skepticism from the crypto community when he explains the business model of the upcoming OPNX exchange.
Davies and Su Zhu met at Columbia University and founded 3AC in 2012. The company operated as a cryptocurrency hedge fund and borrowed billions of dollars to fund its trading activities.
Following USDT’s de-pegging and subsequent liquidity drain across the market, 3AC failed to meet margin requirements and filed for bankruptcy in July 2022. $3.5 billion.
However, in January, it was revealed that the duo are seeking $25 million in seed money for a new exchange, working with CoinFLEX exchange founders Mark Lamb and Sudhu Arumugam. .
CFTC Chairman Rostin Benham Sees Ethereum, Stablecoins as Commodities
CFTC Chairman Rostin Benham said various digital assets, including Ethereum and stablecoins, are commodities at the hearing. March 8.
At a hearing before the Senate Agriculture Committee, Benham said:
Benham said this would provide a “jurisdictional hook” for the CFTC to regulate the derivatives and underlying markets trading ETH.
Senator Ramis questions government’s role in regulating energy use in cryptocurrency mining
Sen. Cynthia Ramis (R – Wyoming) at her March 7 Senate hearing on cryptocurrencies and the environment emphasized Energy efficiency standards must not be used to target specific energy use cases such as cryptocurrency mining.
The committee presented evidence from both sides about the impact of the cryptocurrency industry on the environment.
Witnesses discussed energy consumption, efficiency, and the potential for over-regulation in the industry. The hearing also touched on the negative impact cryptocurrency mining sites have on air, water and noise pollution.
UK FCA tightens control over unregistered cryptocurrency ATMs
The UK Financial Conduct Authority (FCA) has cracked down on cryptocurrency ATMs in the country and has moved its investigation to the East London area, according to Reuters.
The FCA is working with West Yorkshire Police to address an unregistered ATM in Leeds. The FCA said it had collected evidence from “a number of sites” in the area for further investigation and could take legal action. according to to Reuters.
Financial watchdogs are now working with the Metropolitan Police to focus on illegal crypto-encrypted ATM operations in east London. The operation is conducted under anti-money laundering (AML) regulations, which allows police to enter premises without a warrant, observe procedures, and request information and documents.
Consumer Confidence in Cryptocurrencies Still High Despite FTX Impact
new study by a blockchain infrastructure company Paxos It shows that cryptocurrency owners view cryptocurrencies as an investment and want mainstream financial service providers to offer products and services to support it.
Three of the top five most desirable use cases for cryptocurrencies involve everyday financial transactions such as payments and transfers, according to a study released on March 7.
The top five reasons respondents were interested in cryptocurrencies were money transfers (34%), day trading (36%), credit card and/or loyalty rewards (38%), and payment for goods or services ( 42%), and as a long-term investment (52%).
MakerDAO Faces Criticism for Tokennomics Plan Amid High-Stakes US Treasury Investment Strategy
MakerDAO, the governance token behind the fifth most popular stablecoin DAI, gain Investments in US Treasuries increased from $500 million previously to $1.25 billion.
The move will allow MakerDAO to take advantage of the current yield environment, according to the proposal announced on March 6.
The new plan significantly increases the existing $500 million allocation ($400 million in government bonds and $100 million in corporate bonds) by $750 million.
MakerDAO plans to achieve this by implementing a six-month US Treasury ladder strategy with bi-weekly rollovers.
crypto market
Over the past 24 hours, Bitcoin (BTC) has fallen 0.25% to trade at $22,002.41 while Ethereum (ETH) has risen. 0.3% $1,551.13.
Biggest Gainers (24 hours)
- Voyager Token (VGX): +45.76%
- Bone Shivaswap (BONE): +20.13%
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Biggest Loser (24h)
- WEMIX: -15.34%
- HEX: -14.03%
- RSK Infrastructure Framework (RIF): -13.71%
