FameEX Morning Crypto News Recap | March 13, 2023
USDC Bounces Back to $1 Peg After Fed Announcement
During a hearing before the House Financial Services Committee, the Chairman of the Federal Reserve, Jerome Powell, provided an update on the progress of the central bank digital currency (CBDC). He stated that while they are making headway in terms of technological developments, it is crucial to address policy issues related to CBDC.
New York-based Bank Closed by Regulators in Bid to Control Crisis.
Manhattan-based Signature Bank, which is widely used by the cryptocurrency industry, has been taken over by New York regulators after last week's collapse of Silicon Valley Bank. The move was made to prevent the potential fallout from the bank's failure and safeguard depositors. While the reasons for the bank's closure have not been revealed, regulators have demonstrated a proactive approach to managing financial crises and safeguarding the stability of the financial system.
Federal Reserve Announces $25 Billion in Funding to Backstop US Banks
The US Federal Reserve has launched a $25 billion funding program for eligible banks to tackle any future liquidity issues. Under the program, eligible banks can borrow at a lower interest rate from the Fed's Discount Window. The initiative aims to maintain the stability of the financial system and prevent further liquidity problems in the banking sector. The Fed has emphasized the importance of strong risk management practices to avoid potential risks associated with excessive borrowing.
The impact of India's anti-money laundering law on cryptocurrency exchanges
The Indian government's decision to bring virtual digital assets (VDAs) under the Prevention of Money Laundering Act (PMLA) may have mixed results for crypto exchanges. Although the move is aimed at enhancing transparency and reducing the risk of money laundering, it could also raise the compliance costs of crypto exchanges, hampering their competitiveness. These regulations are part of the government's broader campaign to regulate the cryptocurrency sector and safeguard investors.
Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.