CFTC Eyes Stablecoins as Collateral – A Big Win for Best Wallet & $BEST Token
The U.S. Commodity Futures Trading Commission (CFTC) is considering a plan that would allow tokenized assets, including stablecoins, to serve as collateral in derivatives markets. If approved, stablecoins like $USDC and $USDT would be treated as traditional collateral, like cash or US Treasurys in regulated derivatives markets. This is excellent news for Best Wallet and […]
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As long as stablecoin “liquidity is growing proportionally with each other," there won’t ever be true competition between stablecoins, says Frax Finance's Sam Kazemian. Stablecoin projects need to take a more collaborative approach to grow each other’s liquidity and the ecosystem as a whole, says Sam Kazemian, the founder of Frax Finance.Speaking to Cointelegraph, Kazemian explained that as long as stablecoin “liquidity is growing proportionally with each other” through shared liquidity pools and collateral schemes, there won’t ever be true competition between stablecoins. Kazemian’s FRAX....
Only recently has the world of finance open its eyes to the potential of Bitcoin. As the asset’s price climbs, the various use cases it could serve also comes to light. According to new data, as much as 5% of the total BTC supply is projected to be used as collateral by the year 2023. Here’s why Bitcoin is quickly becoming the collateral asset of choice, and how the cryptocurrency can achieve such penetration within […]
The settlement triggered concerns that the CFTC's role in stablecoin regulation could be misunderstood by the public. On Oct. 15, the Commodity Futures Trading Commission, or CFTC, handed sister crypto companies Tether and Bitfinex fines totaling $41 million and $1.5 million, respectively, citing violations of the Commodity Exchange Act, or CEA, and of a prior CFTC order.The regulator has found that Tether, the firm behind an eponymous stablecoin, has only held sufficient fiat reserves to back the dollar-pegged asset for 27.6% of time during the 26-month period under review between 2016....
What defines collateral and value? Recent insights from Caitlin Long, a Wall Street veteran and the Founder and CEO of Avanti Financial Group, took a look at the investment reserve disclosure from Tether Operations Limited, the company behind the USD-pegged stablecoin, USDT. It showed that of the assets used to back and stabilize USDT, only […]
The US Commodity Futures Trading Commission (CFTC) has settled charges it filed today against New Jersey-based bitcoin swap execution facility (SEF) TeraExchange. The charges stem from a non-deliverable forward contract executed on 8th October on TeraExchange, which is provisionally registered as a SEF. The transaction took place under the active guidance of TeraExchange, without any associated trading fees or collateral requirements, the agency said. According to the CFTC, these actions constitute wash trading and prearranged trading in violation of the Commodity Exchange Act. The agency....