10/8 FAL Weekly Digest
Welcome to the FAL weekly digest, a source for this week’s biggest news articles and crypto market updates.
Here is what you need to know:
Institutional Adoption Continues Amid Pending U.S. Crypto Regulation
Cryptocurrency regulation continues to be a topic of considerable importance to federal regulators in the U.S. In a hearing with the House Committee on Financial Services on Tuesday, Chairman of the United States Securities and Exchange Commission Gary Gensler proclaimed that the SEC does not have the authority or intention to ban cryptocurrencies.
The chairman shifted the conversation, stating that banning cryptocurrency in the U.S. does not fall within the SEC’s jurisdiction and that “the decision would be up to Congress.” Focusing more on the issue of regulation and compliance, Gensler asserted that “it’s a matter of how we get this field within the investor consumer protections that we have and also working with bank regulators and others, including how we ensure that the Treasury Department has it within Anti-Money Laundering and tax compliance.” For more information, see our full article here.
U.S. Bank is the latest institution to jump into the crypto space.
U.S. Bank Offers Crypto Custody
The legitimization of the developing asset class in eyes of regulators has sparked confidence in further institutional adoption by entities such as American banks. U.S. Bank, the fifth largest retail bank in the United States, has announced the release of its cryptocurrency custody services This service will assist investment managers store private keys for Bitcoin, Bitcoin Cash, and Litecoin with the help of their partner NYDIG.
Gunjan Kedia, vice chair of the bank’s wealth management and investment services division, stated that their clients are “getting very serious about the potential of cryptocurrency as a diversified asset class,” and that “I don’t believe there’s a single asset manager that isn’t thinking about it right now.” For more information, see our full article here.
Bitcoin and Inflation
A note shared by JPMorgan with clients indicated that the recent increases in BTC valuation was due to institutional investors looking for a new hedge to inflation. Global fears of inflation resulting from a number of macroeconomic factors has renewed interest in the usage of Bitcoin as a hedge. The note suggested that “institutional investors appear to be returning to Bitcoin perhaps seeing it as a better inflation hedge than gold.”
Citing the recent statements from U.S. government officials that there are no plans to ban cryptocurrency, the note highlights the fundamental reasoning behind Bitcoin’s technical patterns. For more information on the reasons why Bitcoin is decoupling from global falling markets, see our full article here.
Market Update - Bitcoin
Bitcoin has had an explosive move this week, increasing nearly 30% in 7 days from $43,287 to $56,056 highs. It currently seems to have been rejected from the $56k resistance area, but the bulls have begun to retrace their steps from testing the $54k support area. Volume appears to have slowed as price fell, indicating that selling pressure is slowing for the time being.
Brazil Positions to Make Bitcoin Legal Tender
The Brazillian government has approved the draft of Bill 2.303/15, which regulates digital currencies. While the original intent of the bill was to regulate the crypto industry, an updated draft has been submitted by Deputy Aureo Ribeiro to allow the use of bitcoin as legal tender.
Brazil is already one of the most crypto-friendly nations in regards to the availability of crypto-centric investment products such four cryptocurrency ETFs. This news comes as the President of Brazil Jair Bolsonaro announces his plans to implement the use of a central bank digital currency (CBDC) next year. For more information, see our full article found here.
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