Bitcoin continues to wade around $30K for its ninth straight week as the market tries to find a stable bottom and regulators and institutions alike try to make sense of the ever-changing crypto market. While their understanding of the crypto ecosystem remains nascent at best, regulators spent this week brainstorming new frameworks to protect stablecoin investors after the recent market shakeup.
The Basel Committee on Banking Supervision, which is based in Switzerland and comprises central banks and regulators from 28 countries, announced it will release guidelines for banks with crypto exposure by the end of this year. The committee met last Friday to discuss the future of crypto in the banking sector, later stating in a press release: “Recent developments have further highlighted the importance of having a global minimum prudential framework to mitigate risks from crypto assets.” (Cointelegraph)
The committee published controversial plans for regulation in 2021 that would require banks to hold one dollar for every crypto asset held. Large names in the banking space, such as Deutsche Bank and JP Morgan Chase, balked at this standard. What this new plan will entail is yet to be seen, but it promises to reflect their overall aim to prevent a lack of liquidity and add safeguards to a new system. (Coindesk)
The Treasury of the United Kingdom is rolling out a new proposal for stablecoin regulations that was originally shelved prior to recent events. The new regulations outlined in the proposal would protect investors by requiring stablecoin issuers to return funds in the event of a major network failure. South Korea is also taking measures to launch a crypto oversight committee, with Special Committee on Virtual Assets member Hwang Seok-jin commenting, “a ministry should be established to protect digital asset investors at the same level of stock investor protection.” (Cointelegraph)
The collapse that occurred on UST, a single stablecoin experiment gone awry, shouldn't represent stablecoins and crypto as a whole. Algorithmic backing can come with significant risk and design flaws, and while this example is mutually exclusive from other projects, it serves as a lesson learned. In the same way that regulation stands to benefit crypto as a whole for investors, it can benefit the stablecoin industry by giving it a more solid foundation to stand on and guardrails to experiment within. Just like how Rashomon led to Star Wars and most of the Western films you’ve seen, a good foundation can build a structure for lasting growth and creativity.
Speaking of film, various Hollywood minds, most notably Bryan Unkeless, co-Producer of the Hunger Games features, are coming together with Metaversal to create a new multimedia Web3 project called Runner. What’s interesting about this project is the range of utility it promises to have on the blockchain, with iterations spanning from NFTs, PFPs, video games, and a future TV show. “While our central story is focusing on a few characters,” said Unkeless, “it was a natural extension to look at PFPs as a way to really start creating specific identities within our world.” (Decrypt)
Fashion also continues to find its space on the blockchain using NFTs to enhance the unique, expressive nature of haute couture. Prada stepped into Web3 this week, announcing a Thursday launch of 100 NFTs on the Ethereum network. This comes as a part of Prada’s latest Timecapsule release, a collaboration with cult-famous sneaker artist, Cassius Hirst. The brand’s collaborated on NFT projects before with names like Adidas and Polygon, as has Hirst. This project will function through the non-profit Aura Blockchain Consortium, otherwise known as Aura, which was started by Prada, Cartier, and LVMH. (Decrypt)
The crypto industry is growing despite any temporary hindrances to the market, and why wouldn’t it? With a never-ending list of use cases and the promise of regulation, crypto is building its foundation for creativity more fervently than ever before. From bear market to bull market, every experience is a lesson that creates a stronger future.
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Top market movers as of June 3, 2022
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