FameEX Morning Crypto News Recap | March 13, 2023
USDC Rebounds Towards $1 Peg Following Fed Announcement
Circle's announcement of positive developments related to its $3.3 billion worth of reserves held at Silicon Valley Bank and its new banking partners has led to a rebound in the value of the USDC stablecoin, which is now approaching its $1 peg once again.
Regulators Shut Down New York-based Bank in Effort to Contain Crisis
New York regulators have seized control of Signature Bank, a Manhattan-based bank used by the cryptocurrency industry, after the collapse of Silicon Valley Bank last week. The move was made to contain the potential fallout from the bank's failure and protect depositors. The reasons for Signature Bank's closure have not been disclosed, but regulators have demonstrated a proactive approach to managing financial crises and ensuring the safety of the financial system.
US Federal Reserve to Provide $25 Billion in Funding to Support Banks
The US Federal Reserve has announced a funding program worth $25 billion to support banks in the event of liquidity issues. The program will allow eligible banks to borrow from the Fed's Discount Window at a lower interest rate. The move is intended to prevent further liquidity problems in the banking sector and to support the overall stability of the financial system. The Fed also stressed the importance of strong risk management practices to avoid potential risks associated with excessive borrowing.
Indian government's new anti-money laundering law puts crypto exchanges under increased scrutiny
The Indian finance ministry's move to regulate virtual digital assets (VDAs) under the Prevention of Money Laundering Act (PMLA) could pose challenges for crypto exchanges. While the move may improve transparency and reduce the risk of money laundering, it may also increase compliance costs for crypto exchanges, which could ultimately affect their competitiveness. The regulations are part of a larger effort by the Indian government to regulate the cryptocurrency industry and protect investors.
Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.