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cointelegraph.com Mar 13, 2025 19:20

Senate Banking Committee advances GENIUS stablecoin bill - The United States Senate Banking Committee elected to advance the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in an 18-6 vote.None of the amendments proposed by Senator Elizabeth Warren made it into the bill, including her proposal to limit stablecoin issuance to banking institutions.“Without changes, this bill will supercharge the financing of terrorism. It will make sanctions evasion by Iran, North Korea, and Russia easier,” Warren argued.Senator Warren argues for amendments to be included in the bill. Source: US Senate Banking Committee GOPSenator Tim Scott, chairman of the Senate Banking Committee, characterized the bill as a victory for innovation. The Senator said:The GENIUS Act establishes Common Sense rules that require stablecoin issuers to maintain reserves backed one-to-one, comply with anti-money laundering laws, and ultimately protect American consumers while promoting the US dollars strength in the global economy.The bill must still pass a vote in both chambers of Congress before it is turned over to President Trump and ultimately signed into law. However, the Senate Banking Committee advancing the bill represents the first step in clear, comprehensive legislation requested by the crypto industry.Senator Tim Scott, chairman of the Senate Banking Committee, leads the hearing. Source: US Senate Banking Committee GOPRelated: The GENIUS stablecoin bill is a CBDC trojan horse — DeFi execGENIUS Act gets overhaul to feature stricter provisionsSenator Bill Hagerty, who introduced the bill in February 2025, defended the legislation against the proposed amendments from Senator Warren, arguing that the bill already includes provisions for consumer protection, Anti-Money Laundering, and crime prevention.On March 10, Hagerty announced that the bill was updated to include stricter reserve requirements for stablecoin issuers, AML provisions, safeguards against terrorist financing, transparent risk management procedures, and stipulations for sanctions compliance.According to Dom Kwok, founder of the Web3 learning platform Easy A, the newly added provisions will make it harder for foreign stablecoin issuers to comply, giving US-based firms a competitive edge.Senator Bill Hagerty defends his bill from proposed amendments. Source: Senate Banking Committee GOPAttorney Jeremy Hogan said the GENIUS Act signals an impending merger of the traditional financial system with stablecoins.“The legislation is explicitly making plans for stablecoins to interact with the traditional digital banking system. The ‘merge’ is being planned,” the attorney wrote in a March 10 X post.During the March 7 White House Crypto Summit, US Treasury Secretary Scott Bessent explicitly said that the Trump administration would leverage stablecoins to protect the US dollars global reserve status.Magazine: Bitcoin payments are being undermined by centralized stablecoins

FOMO: 90%
cointelegraph.com Mar 13, 2025 18:30

Crypto regulation shifts as Bitcoin eyes $105K amid liquidity boost - Bitcoin (BTC) price has risen 8% from its March 11 low of $76,703, driven in part by large investors aggressively buying the dip with leverage. Margin longs on Bitfinex surged to their highest level since November 2024, adding 13,787 BTC over 17 days. Currently standing at $5.7 billion, this bullish leveraged positioning signals confidence in Bitcoin’s upside potential despite recent price weakness.Bitcoin/USD (orange, left) vs. Bitfinex BTC margin longs (right). Source: TradingView / CointelegraphSome analysts argue that Bitcoin’s price is closely linked to the global monetary base, meaning it tends to rise as central banks inject liquidity. With recession risks mounting, the likelihood of expansionary monetary policies increasing the money supply grows. If this correlation holds, Bitfinex whales could be well-positioned to capitalize on a rally above $105,000 in the next two months.Source: pakpakchickenFor instance, X user Pakpakchicken claims to have identified an 82% correlation between the global money supply (M2) and Bitcoin’s price. When central banks drain liquidity by raising interest rates or reducing bond holdings, traders become more risk-averse, leading to weaker demand for Bitcoin. Conversely, periods of monetary easing tend to fuel greater investor interest in the asset, increasing its price potential.Bitfinex whales go long BTC as M2 bottomsIn early September 2024, Bitfinex margin traders added 7,840 BTC in long positions, coinciding with a period of bearish momentum as Bitcoin struggled to reclaim the $50,000 level for over three months. Despite the downturn, Bitfinex whales held their positions, and Bitcoin’s price surged past $75,000 less than two months later. Notably, the global M2 money supply bottomed out around the same time these traders increased their Bitcoin exposure, further reinforcing the correlation.It may be impossible to establish a direct cause-and-effect relationship between money supply and investors’ willingness to accumulate Bitcoin, especially given the influence of major events during these periods. For example, Donald Trump’s election as US president in November 2024 significantly fueled Bitcoin’s rally due to the new administration’s pro-crypto stance, regardless of global M2 trends and liquidity conditions.Spot Bitcoin ETF net flows, USD. Source: CoinGlassSimilarly, Michael Saylor’s latest plan to raise up to $21 billion in fresh capital for Strategy to acquire more Bitcoin could shift market dynamics, even accounting for the $4.1 billion in net outflows from Bitcoin spot exchange-traded funds (ETFs) since Feb. 24. Strategy remains the largest corporate Bitcoin holder, with 499,096 BTC acquired at a total cost of $33.1 billion, reinforcing its long-term bullish strategy.Clearer crypto regulation, Strategy capital increaseIn essence, the expansion of the global money supply may have influenced the increase in Bitfinex margin longs, but Bitcoin’s push toward $105,000 could be primarily driven by industry-specific news and events. A Wall Street Journal report on March 13 revealed that representatives of Donald Trump have held discussions about potentially acquiring a stake in Binance.Related: US Bitcoin ETFs break outflow streak with $13.3M inflowSo far, the market impact of a more crypto-friendly US government has yet to yield concrete benefits. For example, the Office of the Comptroller of the Currency (OCC) has not yet clarified whether banks can custody digital assets and manage stablecoins without prior approval. Similarly, Acting SEC Chairman Mark Uyeda announced plans to remove crypto-specific provisions from a proposed rule that would expand exchange definitions.The US Securities and Exchange Commission is currently reviewing requests from spot Bitcoin ETF issuers to permit in-kind creations and redemptions, allowing shares to be exchanged directly for Bitcoin instead of using the traditional cash-based method.Meanwhile, global macroeconomic conditions have deteriorated, putting pressure on Bitcoin’s price. However, these same factors gradually push governments toward economic stimulus measures and expand the M2 money supply.If this trend continues, it should ultimately create conditions for Bitcoins price to meet Pakpakchicken’s $105,000 prediction by May 2025 and possibly go even higher.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

FOMO: 90%
cointelegraph.com Mar 13, 2025 17:50

Circle plans to bring $900M money market fund under DABA license - Circle, the creator of stablecoin USDC (USDC), announced on March 13 plans to bring its Hashnote Tokenized Money Market Fund (TMMF) under Bermuda regulatory oversight through the company’s existing Digital Assets Business Act (DABA) license.Hashnote, which Circle acquired in January 2025, is the issuer of USDY, the largest tokenized treasury and money market fund with a total value locked (TVL) of $900 million, according to DefiLlama. The fund’s TVL has fallen from $1.9 billion as of Jan. 7.Hashnote USYC TVL over time. Source: DefiLlamaRelated: Wall Street is betting on $30T RWA tokenization market prospectsAccording to the announcement, Circle intends to fully integrate USDY with USDC, which would allow for access between the TMMF and the stablecoin. The company believes that this will make USDY “the preferred form” of yield-bearing collateral on crypto exchanges, including for custodians and brokers.According to Freeman Law, Bermuda enacted one of the first legal and regulatory frameworks for governing digital assets. Circle was the first firm in crypto to receive a license under the Bermuda Monetary Authority in September 2021. Bermuda’s Digital Assets Business Act currently permits three types of licenses for companies conducting business under the Act.Tokenized RWAs a “$30-trillion opportunity”In August 2024, Colin Butler, Polygon’s head of institutional capital, said that tokenized real-world assets (RWAs) are a $30-trillion market opportunity globally. He believed that the push would likely come from high-net-worth individuals who will allocate money to alternative assets as tokenization creates liquidity in previously illiquid markets.Also, in August 2024, it was predicted that tokenized US Treasurys would surpass a $3 billion market capitalization by the end of 2024. According to RWA.xyz, the tokenized US Treasurys market cap sits at $4.2 billion at the time of this writing. Hashnote is the No. 2 protocol for tokenized US Treasurys, according to the platform, although its market cap has fallen 21% in the past 30 days.Related: Infrastructure for legally viable RWA tokenization: AMA recap with MantraThe overall market cap for RWAs surpassed $15.2 billion at the end of 2024, driven largely by institutional players who piloted tokenization projects related to a host of real-world goods, including real estate, gold, diamonds and carbon credits. The market cap initially reclaimed an all-time high of $17.1 billion on Feb. 3 but has since gone even further, rising to $18.1 billion at the time of this writing.Tokenization is changing different areas of finance, including creating liquidity for illiquid assets and leveraging the blockchain to facilitate transparent and efficient transactions. It isn’t limited to a single type of asset, which gives the technology broader use cases.Magazine: Tokenizing music royalties as NFTs could help the next Taylor Swift

FOMO: 90%