Washington is enthusiastically watching the crypto sector as crypto lenders Celsius Network faced liquidity issues last week.
The largest lender in the crypto industry announced on Sunday the withdrawal of all customers and the suspension of transfers. On Monday, the wider crypto market suffered from the bloody sunk key digital assets into the price levels last seen in 2020.
The price of CEL tokens fell to $ 0.15 this week and then recovered to a high above $ 0.56.
According to CoinGecko’s trading data, the CEL / USD pair has recovered about 70% of its losses in the last 24 hours.
Regulations for Stablecoin
Development around Celsius heats up shortly after another meltdown caused by the collapse of the Terra USD, and the Biden administration is on the lookout, according to a Yahoo Finance report released Tuesday.
According to the report, Washington lawmakers are considering the possibility of expanding the proposal for stablecoin regulation to the wider crypto market.
In particular, I feel that the President Working Group’s report on Stablecoin can be seen in line with its application to the entire crypto industry.
Focus on exchange
An unnamed White House official reportedly said the collapse of LUNA and the predicament of Celsius were focused on this sector.
According to people familiar with the matter, the idea is about how to ensure that regulators mitigate the risks associated with recent events.
Regulatory attention can increase when US legislators are trying to impose regulations on cryptocurrency exchanges under the Commodity Futures Trading Commission (CFTC).
Among the many regulatory requirements are exchange restrictions on the lending of a client’s assets. Exchanges are also expected to adhere to liquidity and capital guidelines and hold their clients’ funds separately from the company.