Treasury Secretary Janet Yellen is meeting with the highest financial and banking regulators in the United States on Monday, June 19, to discuss rules for so-called stablecoins - a major part of the cryptocurrency market where government officials have no access and where their supervision is minimal.
"The meeting of the presidential working group on financial markets will discuss interagency work with stablecoins," the Treasury Department said in a statement. In addition to the Treasury Secretary, the working group will include the heads of the Federal Reserve System, the leadership of the Securities and Exchange Commission, and the Commodity Futures Trading Commission. The meeting will also be attended by two banking regulators: the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.
Yellen believes this meeting will help assess the potential benefits of stablecoins and reduce the risks they pose to consumers. First of all, of course, we are talking about the cryptocurrency market, in which stablecoins are used in the bulk, replacing ordinary fiat money. "In light of the rapid growth of digital assets, it is important for agencies to work together to regulate this sector and develop joint recommendations," Yellen said in a statement.
It is far from clear what the outcome of the meeting will be, but the fact that US regulatory and supervisory authorities are paying serious attention to stablecoins is not surprising. Quite a lot has already been said about the fact that the United States is planning to release its digital currency, and stablecoins are direct competitors that have no place in the American economy. Well, at least that's what the US Federal Reserve and the Treasury believe. Thus, given that China has already dealt a significant blow to this market by reducing the turnover of USDT (tether) in its country and banning the mining of cryptocurrencies, it will be quite difficult for stablecoins to exist in this world, but, of course, it is still very far from their extermination.
Bank of America
The good news came today from Bank of America, which is the second largest bank in the United States. It is reported that it has approved bitcoin futures trading for some large clients. At least, such rumors have already spread throughout the market, but bitcoin (in its classic style) did not react to this in any way. Let me remind you that until the spring of this year, the bank was conservative in its approach to the crypto industry due to the high volatility and instability of the market, as well as due to rather large margin requirements for futures trading. Now, apparently under pressure from large clients, the bank has provided access to the cryptocurrency market.
Quite a few investment banks are rumored to allow their clients to invest in cryptocurrency products. In March, Goldman Sachs confirmed plans to reopen its cryptocurrency trading department after a three-year hiatus, and in May, the investment bank began buying and selling bitcoin futures through the Chicago Mercantile Exchange (CME).
Bank of America also plans to use CME futures for this. But the bank declined to comment officially.
As for the technical picture of bitcoin, the situation deteriorated significantly after the bears pushed through the $32,400 level and took it completely under their control. Now the main focus of sellers will be on the support of $30,000, a breakthrough of which will simply trample speculative traders into dust, who are counting on a quick summer rebound and a new rise in bitcoin this fall. A $30,000 breakout will bring the trading instrument to the lows of $25,800 and $21,700 per bitcoin. It is possible to say that the bulls are "on top" again only after consolidating above the resistance of $36,000. A breakout of this level will open a direct road to the highs of $41,100 and $46,700. But before counting on such a movement, the bulls need to at least regain control above the middle of the channel at $32,400.
The material has been provided by InstaForex Company - www.instaforex.com