Luna Crash: Biden Official Reveals Huge Crypto Legislation Coming This Year

Luna Crash: Biden Official Reveals Huge Crypto Legislation Coming This Year

  • The cryptocurrency industry is about to receive some bit of news as the Biden administration is allegedly considering a new legislation
  • The proposed legislation will consider stablecoins which are usually pegged to the dollar and could be used on some exchanges
  • This comes as the crypto industry is yet to recover from the crash that hit it earlier this with many of them losing about 70 per cent of their value

Amid the crash that hit the crypto industry in recent months, reports have emerged that the Joe Biden government could pass a crypto law guiding stablecoins like the recently collapsed TerraUSD and Luna this year.

Forbes report that last week, Biden’s Working Group on Financial Markets, which includes many financial regulators, met to examine stablecoin legislation with Coindesk quoting an anonymous source as saying the legislation could become law by the end of this year.

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Bitcoin, stablecoin, Joe Biden, US dollar, US government
Biden govt to issue big announcement crypto Credit: PATRICK LANDMANN/SCIENCE PHOTO LIBRARY
Source: Getty Images

A law to define stablecoins

According to the source, the law will define stablecoins for the purpose of US regulation and examine how they are used.

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The stablecoin industry has swollen in recent years with tether, the largest stablecoin having about $70 billion in market capitalisation.

Stablecoins are cryptocurrencies that are pegged to conventional currencies such as the US dollar and are used to facilitate payments and improve people’s entry to some crypto exchanges which do not support direct deposits.

No respite for cryptocurrencies

The collapse of the terraUSD which used to maintain its US dollar peg sent tremors through the crypto market and roused regulators to monitor the technology and protect users.

Bitcoin and other cryptos have suffered a massive decline in value this year due to a severe crash that sent the price of most cryptos into a tailspin.

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Bitcoin is yet to recover and has hovered between $23,000-$30,000, a far cry from its all-time November highs.

Over 158,000 crypto investors have all their funds wiped out as Bitcoin buckles reported that about 158,832 traders have their investment liquidated, which totaled about $387.96 million. It is the biggest single liquidation on Okx, a BTC-USD-220930 transaction at $2.93.

The premier crypto, bitcoin and Ethereum have their prices have broken their key $4ok and 3k support levels individually as investors' sentiments are at a bearish level.

The important driver of the round of liquidations, promoters say, was a very sharp selloff in the week before which was driven by a strong dollar that has gotten to the new highs in two decades.


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