US Fed begins quantitative tightening, Japan restricts stablecoin issuance and other news

Over the last two years or so, the United States Federal Reserve has flooded the financial system with excess liquidity — benefiting stocks, crypto.. 

View this email in your browser A week in review: May 29–June 4 We've selected the hottest materials of the past week for you to stay up to date with the latest crypto news: #1. Fed money printer goes into reverse: What does it mean for crypto? Over the last two years or so, the United States Federal Reserve has flooded the financial system with excess liquidity — benefiting stocks, crypto and other markets as well. Now, the Fed is going in the opposite direction in order to combat inflation. In addition to raising interest rates, the central bank has begun the process of quantitative tightening (QT). It's not entirely clear how the crypto markets will respond to the Fed's QT efforts, but the short-term outlook probably isn't good for risk assets. Continue reading #2. Japan passes bill to limit stablecoin issuance to banks and trust companies A new bill from Japan, reportedly going into play in 2023, will only allow licensed banks and registered money transfer agents to issue stablecoins. The regulation aims to provide more protection around stablecoins, given their growing popularity. Japan's intent to regulate stablecoins comes amid a crypto bear market that has seen declining asset prices and the downfall of a major stablecoin, TerraUSD Classic (USTC). Continue reading #3. CFTC sues Gemini claiming crypto exchange lied in futures contract evaluation United States crypto exchange Gemini faces action from the U.S. Commodity Futures Trading Commission (CFTC) for certain alleged activity dating back to 2017. The CFTC essentially asserts that Gemini acted dishonestly in 2017 during its push to add Bitcoin futures trading contracts to its offerings. The commission claims Gemini was not honest during its evaluation process. "Gemini has been a pioneer and proponent of thoughtful regulation since day one," Gemini told Cointelegraph in response to the lawsuit. "We have an eight year track record of asking for permission, not forgiveness, and always doing the right thing. We look forward to definitively proving this in court." Continue reading #4. Prediction of the week. Bitcoin may hit $14K in 2022 but buying BTC now 'as good as it gets:' Analyst Although Bitcoin charts saw some positive moves during the first part of this week to close out May, June brought back sub-$30,000 price action, based on Cointelegraph's BTC price index. Using former BTC price data as a backdrop in line with Bitcoin's halving cycle (roughly four years), pseudonymous Twitter user and CryptoQuant contributor Venturefounder suggested the asset could see a macro price bottom in the next half-year. As part of a tweet thread, the analyst said Bitcoin could reach a depth between $14,000 and $21,000. The analysis included parallels to 2018, the focal year of the last crypto bear market. Price action currently lines up with historical Bitcoin cycles. Continue reading #5. FUD of the week. Investors dumping on Terra as LUNA 2 tanks 70% in two days In the aftermath of the Terra ecosystem collapse, Terra 2.0 and its related LUNA 2.0 asset launched on May 28, with the price of token falling sharply after the unveiling. Terraform Labs CEO Do Kwon's revival plan included distributing LUNA 2.0 to certain participants of the old Terra ecosystem. Roughly a day later, Binance announced that it had completed its first airdrop of the new LUNA tokens to certain users. Between the time of Cointelegraph's Monday article (linked above), and the writing of the Binance airdrop article on Tuesday, LUNA 2.0 rose in price from $5.71 to $9.25. Continue reading #6. FUD of the week. New York State Senate passes Bitcoin mining moratorium Additional proof-of-work (PoW) mining operations in New York could be put on hold for a two-year period, pending approval from the state's governor. A bill temporarily banning new PoW mining outfits, as well as license renewal of current players, was passed by the New York State Senate. One exception to the bill, however, is the allowance of fresh PoW mining players that only use renewable energy for their work. Continue reading 3.5 million people follow us on social media Download our official app:

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