Many have speculated that the FTX collapse contagion isn’t over yet because many exchanges and funds were tied to FTX. It was made clear that prudent regulation in this space is needed. White House press secretary Karine Jean-Pierre also commented that without proper oversight, cryptocurrency could risk harming Americans. These risks, if not well controlled, can harm retail investors and cut against the goals of a safe and fair financial system.” Some financial innovations offer opportunities, but as we have recently seen, many innovations also carry risks-which can include liquidity runs, the rapid collapse of asset values, misuse of customer funds, fraud, theft, manipulation, and money laundering. “Over the last several years, we have seen crypto-asset activity grow rapidly and experience periods of significant stress. The Fed’s news release also made this point about possible regulations: Michael Barr, a top regulatory official from the Fed, warned that oversights could be coming to cryptocurrency shortly. It’s no secret the SEC and even the Fed would like to see stricter controls on cryptocurrency after witnessing how billions of dollars have been wiped out from this space in 2022. There are indications that further sell-offs and liquidity issues could arise. Meanwhile, some investors say they've taken to bitcoin during the coronavirus pandemic in response to massive government stimulus and the potential debasement of sovereign currencies.With Genesis and BlockFi pausing withdrawals in the wake of the FTX news, the short-term future doesn’t look promising for other crypto projects. ![]() interest rates have been pushed down significantly by historic monetary easing. Last year saw the emergence of decentralized finance, a buzzy new trend in crypto that tries to replicate traditional financial products with blockchain technology. The move toward services like lending and savings in crypto highlights a shift in an industry mostly known for investing. ![]() ![]() "It provides lots of safeguards, and we think that we can get the best of both worlds and offer that to our customers." "But, at the same time, there is a reason why Wall Street and traditional banking has been around as long as it has," he added. "We still think that crypto empowers individuals in a way that traditional banks don't." "We have security protocols on par with those offered by top financial institutions," Gemini's Perlman said. last year, after obtaining an electronic money license from the Financial Conduct Authority.īut BlockFi's interest account isn't available in New York, which the firm says is down to state regulations on crypto. Gemini rolled out its services in the U.K. clients, not those in international markets like Canada and Britain. The savings program will only be available to U.S. Deposits aren't protected by the Federal Deposit Insurance Corporation, and rates are adjustable based on supply and demand. The company says it's able to offer such high rates by lending out crypto to institutional borrowers through its lending partner, Genesis Global Capital, in exchange for interest payment. Gemini is a New York trust company regulated by the New York State Department of Financial Services. "And it's the only cryptocurrency exchange that offers the opportunity for users to earn crypto in every state in the U.S., including New York." "This product is available for all 26 cryptos that Gemini supports," Noah Perlman, Gemini's COO told CNBC in an interview. ![]() For comparison, that's more than 100 times the national average of 0.05% on savings accounts in the U.S. Gemini says it will offer rates of up to 7.4% APY (annual percentage yield). Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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