US Treasury Discussing Launching A Formal Review into Stablecoins’ Impact on the Financial System

US officials are currently having closed-door discussions regarding launching a formal review into whether stablecoins threaten financial stability.

After weeks of consideration, the Treasury Department and other deferral agencies are nearing a decision, reported Bloomberg citing people familiar with the matter.

The department is examining “potential benefits and risks of stablecoins for users, markets, or the financial system,” said Treasury spokesman John Rizzo in a statement. “As this work continues, the Treasury Department is meeting with a broad range of stakeholders, including consumer advocates, members of Congress, and market participants,” he added.

The total market cap of stablecoins is now ready to surpass $124 billion, up from just over $29 billion at the beginning of this year.

This, however, doesn’t come as a surprise given that the US Securities and Exchange Commission (SEC) Chair Gary Gensler has said many times that stablecoins are one of the two areas they are focused on. The other being crypto exchanges and lending platforms, where “stablecoins are embedded.”

Over the past couple of months, Gensler has been noting that the majority of trading on all crypto trading platforms is occurring between a stablecoin and some other token.

“The use of stablecoins on these platforms may facilitate those seeking to sidestep a host of public policy goals connected to our traditional banking and financial system: anti-money laundering, tax compliance, sanctions, and the like. This affects our national security, too,” said Gensler adding, these fiat-based coins may also be securities and investment companies.

Just last week, Coinbase disclosed that SEC is threatening to sue if it launches its Coinbase Lend product, allowing customers to earn a 4% yield on their USDC stablecoin.

Duke University finance professor Campbell Harvey, who is also the co-author of a book called “DeFi and the Future of Finance,” told Bloomberg in an interview that the US regulators face a tough balancing act when it comes to addressing “yield farming” — allowing investors to lend their crypto in exchange for interest rates — without pushing the financial innovation offshore.

Additionally, the President’s Working Group on Financial Markets, led by Treasury Secretary Janet Yellen, has also been focused on stablecoins. In a private meeting held in July, US officials likened the situation to an unregulated money-market mutual fund that could be susceptible to chaotic investor runs.

Around the same time, a paper from the Federal reserve proposed to “tax private stablecoins out of existence” as one of the options to “Taming Wildcat Stablecoins.”

At the time, Yellen urged regulators to “act quickly” in drafting stablecoin rules. The group, composed of Yellen, Gensler, and Fed Chair Jerome Powell, expects to issue stablecoin recommendations by December.

The Financial Stability Oversight Council (FSOC) process includes a detailed study, an assessment of which agencies should respond and how, and then directing them to intervene in the market.

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Author: AnTy

SEC Extends Kryptoin’s Bitcoin ETF Application By 45 Days

The US Securities and Exchange Commission (SEC) has extended the review period for Kryptoin’s Bitcoin exchange-traded fund (ETF) application.

The regulator disclosed the update in a notice dated June 9. The SEC said its decision would be delayed for another 45 days, ending July 27, 2021.

SEC Delays Another ETF Application

The delay of the Delaware-based investment advisory firm’s application makes it the latest extension the SEC has announced in the last few weeks.

Last month, the SEC postponed WisdomTree’s Bitcoin ETF application review by 45 days. VanEck’s bid got a similar treatment in April.

According to the agency’s notice, Kryptoin’s application was delayed to allow it to have adequate time to consider the proposed rule change. The notice said,

“The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the comments received.”

Kryptoin first applied for a Bitcoin ETF in 2019, and after a year and a half of inactivity, the firm filed for an amendment in April this year.

In its first filing, Kryptoin chose to list its shares on the New York Stock Exchange but later changed it to Cboe BZX in its amended filing. Both WisdomTree and VanEck also named Cboe as their planned listing exchange.

The Kryptoin ETF provides exposure to Bitcoin using the CF Bitcoin US Settlement Price as its pricing mechanism.

Founded in 2016, Kryptoin Investment Advisors is a financial services company run by Jason Toussaint.

Will The SEC Approve A Crypto ETF This Year?

The US is yet to allow a Bitcoin-based ETF, with the SEC pointing to the Bitcoin market’s vulnerability to manipulation, among other concerns, as its rationale for rejecting all such applications.

At the moment, there are eight active ETF applications before the SEC. Apart from the previously mentioned VanEcK and WisdomTree, other firms that have filed for Bitcoin-based ETFs include NYDIG, Valkyrie, SkyBridge Capital, Simplify, and Fidelity.

WisdomTree and VanEcK are the only two companies that have also filed for Ethereum ETFs in addition to their Bitcoin ETFs.

This signifies that Ethereum ETFs are gaining more popularity as retail and institutional investors look to gain exposure to the digital asset without investing in it directly.

Several factors have driven Ethereum’s popularity and increasing institutional adoption among investors. These include decentralized finance (DeFi), non-fungible tokens (NFTs), and improvement in the crypto asset’s infrastructure. A planned upgrade from proof-of-work (PoW) to proof-of-stake (PoS) has also piqued investors’ interest.

If VanEcK and WisdomTree’s Ether ETF applications are approved, they would be the first set of Ether ETFs in the US, but not the first in North America.

Three Ethereum ETFs have already been approved and are available in Canada on the Toronto Stock Exchange (TSX).

Canada has also approved several Bitcoin ETFs, and these funds have grown exponentially in a few months with massive investor interests. In the US, investors continue to be optimistic that the SEC’s new crypto-conscious chairman, Gary Gensler, will approve an ETF soon.

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Author: Jimmy Aki

Blockfolio to Go Through Security Review After Getting Hacked to Display Offensive & Racist Content

Blockfolio to Go Through Security Review After Getting Hacked to Display Offensive & Racist Content

The team has announced a credit of $10 to every current and new users of the app. ACH withdrawals have also been activated on both FTX and Blockfolio.

FTX acquired crypto tracker app Blockfolio, suffered an incident on Tuesday when offensive messages were displayed to its users.

“We are incredibly sorry about the offensive messages posted on Blockfolio today. We will be addressing this ASAP,” noted the team. They have since then removed the offensive messages.

The team also assured that trading or funds weren’t affected, only the displayed information.


Blockfolio took to Twitter to further share that they have revoked access to the compromised Signal submitters in response to the incident. All the users of the app have been credited with $10, as will anyone else who signs up this week at a maximum of 1 million people, said the firm.

Just at the end of last month, Blockfolio enabled trading on its app and saw more downloads than “in any single day of 2017.” FTX CEO, Sam Bankman-Fried, also took to Twitter to share the story behind the messages on Blockfolio. The investigation revealed that the,

“Offensive content was produced and published by a competitor exchange of ours who maliciously gained access to someone else’s Blockfolio News/Signal capabilities.”

Sam condemned the actions of the competitor at fault here whose name wasn’t revealed and announced a donation to organizations to “help move the world forward, not backward.” He added,

“We have always and will always strive to work with others in the industry–whether customers, builders, or competitors. We will rise and fall together, and this industry has no place for this behavior.”

The chief executive also said that over the course of next month, they would conduct a security review of the app to “bring them in line with the standards set by trading, and by FTX more generally.”

In other news, both FTX and Blockfolio now support ACH withdrawals.

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Author: AnTy

Ethereum Rules Dapp Market in Q1 Despite Black Swan; DeFi Is The Main Growth Driver

Ass per the latest report of Dapp Review, the Coronavirus outbreak, the Black Swan of 2020 that triggered the global market sell-off had a direct impact on the decentralized applications (DAPP) market in Q1. In the first quarter of 2020, a total transaction volume of $7.9 billion across 13 blockchains was recorded, this has been an increment of 82.2% from 1Q19.

The major three protocols Ethereum, EOS, and Tron contributed more than 99% of the total volume. Among these three top blockchains, Ethereum was the only one with year-over-year growth, both Tron and EOS suffered a loss in users and transaction volume.

DappReview Report
Source: DappReview Report

When it comes to dapps, 254 new dapps were launched in Q1, which was 60% lower than 1Q19. Game, exchange, and casino are the top three sectors in terms of active address. The total active addresses that interacted with dapps meanwhile dropped 22.1%. However, Casino dapp was the popular category last year has been down 64.4% in volume this quarter.

DeFi is the “growth gist”

Ethereum remains the king in the Dapp space, with $5.64 billion in total transaction volume reported by Ethereum dapps, an increase of 652% compared to 1Q19’s $743 million.

However, the active dapps on Ethereum at 641 have been fewer than last time’s 173. Out of these 33 are from Finance, 72 Exchange, 180 Game, and 71 are active Casino dapps.

Ethereum-based Decentralized Finance (DeFi) projects are the main volume growth driver. DeFi has been the “growth gist” of Ethereum since 2019 with the largest transaction volume.

Source: DeFi Pulse

However, instead of Ethereum’s native token Ether, most of the volume of DeFi projects are in ERC 20 tokens like DAI, USDC, and WETH. As such, $5.64 billion transaction volume of Ethereum, 84% was generated by ERC-20 tokens.

The sell-off on March 12, actually resulted in the transaction volume of Ethereum dapps reaching a historic peak of 3326 million, mainly contributed by MakerDAO, dYdX and other DeFi projects.

Now, Tron is also slowly making its place in DeFi space with the unveiling of Djed, a MakerDAO-like stablecoin system.

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Author: AnTy

BitLicense Becomes Subject of New York Financial Regulators Scrutiny Over Current Regime

The New York Department of Financial Services (NYDFS) has finally decided to review its most controversial decision in recent days. According to the head of the agency, Linda Lacewell, the agency is set to look into the infamous BitLicense and maybe consider some changes.

BitLicense is the name of the dreaded license that all digital asset operators need if they want to offer their services to residents in the state of New York, a necessity even if the companies are not based locally.

The license is famous for being the toughest one to get in the country, which added to its unpopularity. Several companies such as Bittrex and Kraken were basically driven out of the state because of the license and issues related to it.

According to Lacewell, now is the perfect time to look at the system and to determine how to proceed, and look to see if any adjustments are needed at the moment. She did warn people not to be “too excited”, though, as there is a big chance that nothing will change.

Some of the questions that will determine what will be done include understanding how the industry has grown lately and whether it has matured or not. According to her, the current license is “working well”, but it is important to always hear all sides when making decisions. No information of when the review would be complete was given during her speech.

At the moment, only 22 companies were able to grab the BitLicense. The NYDFS is receiving applications for the license right now, but the majority of the companies that apply still fail the tests.

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Author: Rebecca Asseh

CoinBit Pro: Legit Bitcoin and Crypto Trading Education?

The following CoinBit Pro review is subject to change once more details are made available. From the limited information, here is what is known so far.

According to the official website, CoinBit Pro is designed to teach users how to build ‘massive wealth’ with bitcoin using their online marketing system. Is made up by people from diverse fields in the world of business. Some are in sales; others are online marketers, business people, educators, and cryptocurrency traders. They claim the need for reliable knowledge in cryptocurrency field is a big gap that needs filled and intend on doing so with their bitcoin-based business opportunity.

It’s no secret by now, along the way, con artists have made away with their money due to lack of knowledge as the bitcoin scams continue to stack up. As the cryptocurrency industry gains momentum, so do schemers. The CoinBit Pro educational platform founders decided it was time they exposed to the world the signs to look out for in trading to avoid being conned. They have been in the field for a while now and are aware of all the methods that can be used to rob you of your money and joy.

Not only does the platform claim they endow you with the above knowledge but also provides the necessary tools needed to control the outcomes of all the moves you make in the volatile crypto markets.

Coinbit Pro Packages

CoinBit Pro provides everything you need to know about cryptocurrencies in the array of their product packages. From introductory (basic) level to Professional (Advanced) level, you learn what cryptocurrency is and how you make money from it among many others.

Some of the packages are:

  • Crypto Intro: here you get an introduction to the crypto world, taught how to access your personal back office, the marketing system, sales videos, lead capture pages, a license to resell and free support. This package sells for $350.
  • Crypto Pro: This package is for members who have gone through the introduction and completed successfully. By now, they can proceed to advanced training. The package also allows access to personal back office, marketing system, sales videos, license to resell, lead capture pages, free support and take note of Live trading Webinars. This product goes for $1,000.

It looks as though each package, basic ($350) and advanced ($1,000) are standalone products that each offer their own features and benefits.

Is CoinBit Pro Right for You?

There are good reasons to choose CoinBit Pro for all your cryptocurrency trading needs. They include but are not limited to:


On this platform, you are transformed from being an amateur to an expert on all matters concerning cryptocurrency, which in turn enables you to start trading. All this at you own timing and pace. You learn about bitcoins, altcoins, and how they work.

Trading Strategies

CoinBit Pro teaches you the rules of trading from basic to intense. It also provides you with the best platform to start and grow your cryptocurrency trading experience immensely.

Business Opportunity

Since cryptocurrency trading allows you to work at your own timing and pace, making an extra income on the side and exploring new business opportunities is presented to you. You are able to make 100% commission on every new sale you achieve. You also get to earn $250-$800 immediately your sale is done, directly deposited to your Bitcoin wallet.

The official CoinBitPro website does have a video teaser showcasing their bitcoin-centric story and why they exist as a whole.

Owners of CoinBit Pro

While proper due diligence is required on each of the following individuals, kudos to them for posting names and pictures (need verified) on the homepage.

The four names listed on their website are Astone Davis, Luciaan Godfrey, Aaron Civitarse and Bradley Murray. Each have a small bio that needs cross checked, but as mentioned, this is very different in comparison to what you may consider ‘competing’ offers may have.

Latest News

Apart from all the information received from the platform; current and trending news on the crypto world is also available for you to keep you up to speed on the ins and outs of the crypto space.This brief review of CoinBit Pro will be updated once we hear back regarding member feedback and company updates. They do offer a latest news section, bitcoin price chart and BTC coin converter tool on the website.

If anyone has more details on Coin Bit Pro bitcoin business model, please feel free to leave a comment or send us feedback so we can update the review and give the best details available to date.

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Author: Bitcoin Exchange Guide News Team