EddieJayonCrypto
31 May 23
Cryptos popped up yesterday then proceeded to give back all gains and there are a couple of reasons why. Here is what is on my mind today.1. Following the exit by Binance, Bybit now exits Canada. There are still many centralized exchanges in the country with even Coinbase laying praise on how Canada...
Cryptos popped up yesterday then proceeded to give back all gains and there are a couple of reasons why. Here is what is on my mind today.1. Following the exit by Binance, Bybit now exits Canada. There are still many centralized exchanges in the country with even Coinbase laying praise on how Canada is handling regulation. I think that view could simply be by comparison to how the United States currently handling the nascent industry. 2. The CFTC has issued a warning about derivatives clearing organizations (DCOs). A DCO) is a financial institution that provides clearing services for derivatives contracts and is a major facet to crypto clearing activities. With the issuance of a relevant notice the CFTC states they are focused on potentially heightened risks related to such activities specifically around conflicts of interest and physical delivery of digital assets. One member of the CFTC Division of Clearing and Risk is calling for greater steps in rulemaking. Again, our government needs to wake up and it done. 3. Bitcoin has taken a serious dive. In my humble opinion, it is mostly due to the fact that the debt ceiling crisis is not quite over yet. There was a big hurdle last night that was weighing heavy on everyone's minds. The vote happened and the deal now moves forward. I firmly believe that once the deal is signed by the President, we will see a rise once more. One more reason why the markets took a hit is because Loretta Mester, CEO of Cleveland Federal Reserve says there is still a compelling reason to continue with rate hikes. With the banking industry still in an uneasy state from a regional perspective I think she should take many seats. 4. Remember when I told you the IRS forced Coinbase and others to give them client data based on certain parameters? Well, someone took the IRS to court over it. A judge has now ruled against James Harper's claims that the IRS should not have been allowed to do so citing privacy infringement. This is definitely going to become precedent. 5. Keeping an eye on the strength of the US Dollar on the world stage, BRICS New Development Bank is in talks with Saudi Arabia to enter into a partnership as the list of countries looking for alternatives grows. 6. The team at Cardano has just announced that Marlowe, a smart contract platform, is now on the mainnet for testing. Cardano tends to move slowly, but when it does, it makes sounds moves. This one addresses a shortcoming to the project which is the lack of smart contracts. 7. So, it sounds like Binance is not going to buy a bank, but may be in talks to partner with a couple of them. The idea behind rumored talks with Bank Frick and FlowBank is to reduce counterparty risk for institutional investors. This would send a clear message to such clients that they are not going to wind up with another FTX situation.