empty
16.02.2022 09:10 AM
US introduces bill for stablecoins

Bitcoin and Ether are gradually returning to February highs as interest in risky assets grows and geopolitical tensions decrease. The upward correction of the US stock market also has a positive effect on investor sentiment.

But an interesting news emerged yesterday, partly related to the development and regulation of digital assets in the US. Member of the US House of Representatives Josh Gotteimer introduced a stablecoin insurance bill, which will allow it to be exchanged for US dollars in a ratio of one to one.

This image is no longer relevant

Interestingly, the bill will allow banks and non-banking financial institutions to issue stablecoins in the US, but this will have certain requirements. One of them is the need for cash-backed reserves to be held in a designated segregated account insured by the Federal Deposit Insurance Corporation (FDIC). The Fed will also oversee stablecoin issuers and issue regulations related to leverage ratio, audit requirements, anti-money laundering compliance, and so on.

Such measures will help protect investors from various kinds of scammers who can take advantage of crude legislation in the field of digital assets. Insurance will also create a series of obstacles for companies that do not have enough free funds, thereby weeding out small players trying to catch on to the rapidly developing digital asset market.

On a different note, BlockFi is reportedly willing to pay $100 million to settle allegations by the US Securities and Exchange Commission (SEC) that it illegally offered a product in which customers received fairly high interest rates for transferring their digital tokens. According to experts, the fine will be one of the most severe imposed on a crypto company. The SEC also wants to find out if the services offered by BlockFi fall under the definition of securities that must be registered with the relevant regulatory authorities.

This image is no longer relevant

BlockFi operates under the sector's standard DeFi scheme, where crypto lenders who have deposited tens of billions of dollars are promised returns far in excess of those available through traditional savings accounts as a thank you for providing liquidity. But as part of the agreement with regulators, BlockFi will no longer be able to open new accounts for most Americans.

"We have been in productive ongoing dialogue with regulators at the federal and state level. We do not comment on market rumors," said BlockFi spokeswoman Madeleine McHugh. "We can confirm that clients' assets are safeguarded on the BlockFi platform and BlockFi Interest Account clients will continue to earn crypto interest as they always have."

Recently, SEC Chairman Gary Gensler criticized the DeFi sector, arguing that some companies offer financial services without adhering to the benchmark investor protection rules that banks, brokers and other financial institutions in the industry have long followed.

BlockFi will pay a $50 million fine to the SEC and another $50 million to various states.

Technical analysis for Bitcoin

A lot depends on $45,350 because a breakout will lead to a further rise to $48,554 and $51,810. Meanwhile, a dip below the level will result in a fall to $41,750, $39,120 and $36,090.

Some experts believe that $33,000 was the bottom of Bitcoin, and now there is much more asymmetry in favor of growth than a decline. In the medium term, there are other encouraging signs that the downtrend observed since the fall of last year has ended. A pullback above the 50-day moving average is a bullish signal, but in order to finally put all the dots, Bitcoin needs to go beyond the 200-day average, which is still very far away.

Technical analysis for Ethereum

A lot depends on $3,100 because a breakout will lead to a further increase to $3,362, $3,562 and $3,887. Meanwhile, a fall below this level will result in a dip to $2,620.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Traders pause ahead of key event

Bitcoin's price has stabilized around the $83,000 mark as investors brace for a major announcement from US President Donald Trump on tariffs, expected to be made tomorrow. Other leading cryptocurrencies

Jakub Novak 10:44 2025-04-01 UTC+2

Trading tips for crypto market on April 1

Bitcoin and Ethereum have fallen in response to a further decline in the US stock market. Currently, BTC and ETH exhibit an obvious correlation with US stock indices. However, trading

Miroslaw Bawulski 09:31 2025-04-01 UTC+2

Trading Recommendations for the Cryptocurrency Market on March 31

Bitcoin and Ethereum resumed their decline over the past weekend. There was no significant growth last week either, suggesting a continued correction in the crypto market. Ethereum was hit particularly

Miroslaw Bawulski 11:02 2025-03-31 UTC+2

Crypto market baffles traders

Recent news from the cryptocurrency market has discouraged investors. Over the past weekend, Bitcoin and Ether experienced sharp drops and failed to return to their upward trajectory, indicating a high

Jakub Novak 10:58 2025-03-31 UTC+2

Bitcoin – Technical Analysis Overview

Uncertainty currently dominates the market. Participants have taken a wait-and-see approach. The support of the monthly short-term trend at 79,773 and the weekly medium-term trend at 84,443 continue to influence

Evangelos Poulakis 09:07 2025-03-31 UTC+2

Ethereum Crashed. Bitcoin Was Less Affected

Despite the successful rollout of the Pectra test upgrade on the new Hoodi testnet—potentially the final step before rolling out the update to the Ethereum main net aimed at improving

Jakub Novak 08:01 2025-03-28 UTC+2

Trading tips for crypto market on March 28

Bitcoin and Ethereum are struggling to stay afloat. Another failed attempt by Bitcoin to cling to $88,000 led to its sell-off during today's Asian trading session. Ethereum had even worse

Miroslaw Bawulski 07:34 2025-03-28 UTC+2

Trading tips on crypto market on March 27 (North American session)

Bitcoin didn't show anything interesting in the first half of the day. Only Ethereum could be traded a bit within its sideways channel, in which it is still trapped. Meanwhile

Miroslaw Bawulski 15:16 2025-03-27 UTC+2

US crypto regulation bill moves ahead rapidly

US lawmakers are moving swiftly on legislation aimed at regulating digital assets. Votes on a stablecoin bill and a revised version of the broader cryptocurrency market structure bill are expected

Jakub Novak 10:52 2025-03-27 UTC+2

BTC/USD Analysis. March 27th. Bitcoin lacks growth potential

The wave structure on the 4-hour chart of BTC/USD is quite clear. After completing a bullish trend composed of five full waves, a corrective downward phase has begun, currently taking

Chin Zhao 08:31 2025-03-27 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.