USD coin regains $1 peg, EU on alert after SVB collapse and more

The US government’s decision to provide a safety net for SVB depositors has led to an increase in the value of major cryptocurrencies such as Bitcoin, Ether and Dogecoin and their market cap breaking the $1 trillion mark.

Market participants and industry experts believe that the rise in cryptocurrency prices reflects the growing correlation between the broader financial market and digital currencies. Experts suggest that this correlation is expected, given the impact of hundreds of billions of dollars, where investors tend to rush to safer havens, such as gold or cryptocurrencies, in such cases. However, this event cannot be seen as a single factor in deriving the correlation between cryptocurrencies and the broader financial market, according to them. Read the whole thing here

Stablecoin USD Coin, issued by Circle, is gradually returning to its $1 peg, after a troubled weekend, after the company’s CEO, Jeremy Allaire, confirmed that Circle’s reserves are safe and the firm has found new banking partners that will be operational 13 March. According to CoinGecko data, USDC’s value has risen by 4.5 percent in the last 24 hours and is currently trading at $0.995. However, the coin’s value fell as low as $0.87 over the weekend due to concerns over $3.3 billion worth of USDC reserves held by Silicon Valley Bank (SVB), which was shut down by the California Department of Financial Protection and Innovation March 10. Read details here

Euler Finance, a lending protocol that facilitates crypto lending and borrowing, has suffered a flash loan attack that resulted in a loss of $197 million, according to security firms BlockSec and PeckShield. Citing the blockchain security firms, The Block reported that the attack took place at 4:50 a.m. ET and involved the siphoning of $136 million worth of staked Ether, $34 million worth of USD Coin, $19 million worth of wrapped Bitcoin and $8.7 million. value of DAI from the protocol. The identity of the perpetrator and the method of attack are still unknown. Euler Finance’s team is working with security experts and law enforcement to gather more information, which they will release later. Take a look

Markus Ferber, a representative of the leading centre-right party in the European Parliament and an influential EU lawmaker has urged regulators to prevent panic from spreading after the SVB collapse. Ferber urged EU banking supervisors to assess the vulnerability of European lenders to interest rate shocks similar to those that caused the Californian bank to fall on Friday 10. March. not to be allowed to spread”. He also raised concerns about how government bonds are treated under bank capital rules, a recurring theme among German politicians who argue that current regulations underestimate the risks posed by indebted governments such as Italy and Greece. read more here

Digital asset investment products have seen outflows for the fifth consecutive week, with the total amount reaching a record $255 million, representing 1.0 percent of total assets under management (AUM). According to a report by Coinshares, while outflows are the largest on record in dollar terms, the share of outflows relative to total AUM was greater in May 2019, when outflows represented 1.9 percent of AUM. The negative sentiment was widespread and was seen in both North America and Europe. However, the US stood out with inflows of $11 million, primarily to long-Bitcoin. Despite the increase in total AUM since May 2019 (816 percent), outflows obliterated all inflows seen this year, with payouts now standing at $82 million year-to-date. read more here

Meta, formerly known as Facebook, has announced that it will stop working with digital collectibles, also known as non-fungible tokens (NFT), to focus on other ways to support creators, businesses and people. This decision was taken to prioritize areas where the company can have a greater impact on a large scale. Stephane Kasriel, head of trading and financial technology at Meta, thanked his partners who have worked with them on this journey and who are doing great work in this dynamic space. He added that the company learned a lot from this experience and will be able to apply this knowledge to products they continue to build to support creators, people and businesses on their apps, both today and in the metaverse. read more here

According to sources familiar with the matter, the US Department of Justice is conducting an investigation into the collapse of the TerraUSD stablecoin last year. This development increases the pressure on Do Kwon, the South Korean crypto entrepreneur who created the stablecoin, as he may now face criminal charges in the United States. The FBI and the Southern District of New York reportedly questioned former employees of Kwon’s company, Terraform Labs Pte. Ltd., and has expressed an interest in speaking with others. Since both agencies are part of the Department of Justice, the SDNY is usually responsible for prosecuting high-profile financial crimes. Take a look

The US Commodity Futures Trading Commission (CFTC) has announced new leadership for its Technology Advisory Committee. Carole House, a former White House official, has been named the new chair, while Ari Redboard, of the blockchain analytics company TRM Labs, will serve as vice chair. The CFTC published a list of committee members, which was recently created and sponsored by Commissioner Christy Goldsmith Romero. In a statement, Goldsmith Romero emphasized the importance of seeking advice from technology experts to protect financial markets from cyber attacks, ensure responsible development of digital assets that protect customers, and understand the implications of new technologies such as artificial intelligence. read more here