Last week, the Biden administration published a report Monday urging increased regulation of stablecoins. The President's Working Group for Financial Markets called on Congress to subject stablecoin issuers to the same strict federal oversight as banks.
Treasury Under Secretary for Domestic Finance Nellie Liang said: "We believe legislation is important. This is a new technology, a new innovation. It shouldn't be surprising that the current regulatory framework isn't set up to address some of the new kinds of risks that this could pose."
The regulators proposed rules to require custodial wallet providers to be regulated by a federal agency and limit stablecoin issuers' interactions with non-financial companies such as tech or telecom firms like Meta
The new report is part of an ongoing effort by U.S. policymakers to rein in this $138 billion stablecoin segment of the broader crypto industry and mitigate the risks they believe are posed to consumers, markets, and the financial system. But if Congress refuses to pass such laws, the regulatory agencies have the authority to draft their own measures.
Here is the rest of the week in review:
Coinbase
Mythical Games said Thursday it has raised a $150 million Series C funding round that brings its total raised to $270 million and boosts its new valuation to $1.25 billion, reaching coveted unicorn status. Andreessen Horowitz led the latest round, with participation from Binance, FTX, D1 Capital, RedBird Capital, The Raine Group, and Galaxy Interactive. The investment vehicles of the National Football League, the band The Chainsmokers, and OneRepublic frontman Ryan Tedder also invested. The game development firm opened early access earlier this year for its Blankos Block Party game, an open-world multiplayer game focused on custom art and design, building and exploration, and curating a collection of digital toys called Blankos. Mythical Games aims to use the new funds to increase its workforce, scale operations, and add new game developers to its non-fungible tokens platform.
Crypto prices rose to $2.775 trillion this week. For the majors, all except stablecoins and Dogecoin (DOGE) ended in the green. In the top 100, the biggest decliners were SHIBA INU (SHIB), down 11%, Decentraland (MANA), down 10%, and ICON (ICX), down 9.5%. The biggest gainers were Kadena (KDA), up a whopping 266%, Loopring (LRC), up 143%, and Crypto.com Coin (CRO), up 73%.
The author does not hold any positions in any of the securities above.
- 1. https://www.coindesk.com/policy/2021/11/01/biden-administration-to-congress-put-stablecoins-under-federal-supervision-or-we-will/
- 2. https://www.bloomberg.com/news/articles/2021-11-03/coinbase-tests-commission-free-trading-subscription-service
- 3. https://www.coindesk.com/business/2021/11/04/a16z-leads-150m-round-for-nft-game-platform-mythical-games-at-125b-valuation/