With the exception of the SEC’s FinHub announcement, it has been a quiet week for regulatory news — something we’ve been getting a lot of recently as U.S. officials clamp down on unscrupulous coin offerings and crypto companies.
Instead, stablecoins crowded headlines this week, as tether — among others — had difficulties retaining its peg, and top exchanges rolled out support for some of the asset class’ regulatory-compliant newcomers.
All the while, developers remind us that, even in bear markets, the tools of innovation continue to work against the buzz of speculation.
Stablecoin News Takes Center Stage
Tether took a dip this week. The market’s leading stablecoin dropped to as low as $0.92 cents for its exchange-averaged price as a market-wide selloff left the coin wanting in demand. By consequence, bitcoin on tether-supported exchanges began trading at somewhat of a premium, an inflated price that reflected bitcoin’s worth against tether’s discounted price rather than its worth against the actual dollar. At the time of writing, tether has shaved off roughly $800 million from its market cap over the week — that’s nearly a third of its entire value.
As tether was unravelling, two of the industry’s highest volume exchanges listed four of the top stablecoins’ staunches competitors. Huobi and OKEx both announced support for TrueUSD, Gemini USD, USD Coin and the Paxos Standard earlier this week, moves that may have aggravated the sell off that crippled tether’s peg. The four stablecoins, which are fiat-collateralized like tether, are considered transparent, regulator-friendly alternatives to what was the market’s only viable stablecoin until this year.
Developers Keep On Developing
An Auckland developer sent bitcoin to his girlfriend earlier this week without access to internet — seriously. Leveraging technology developed by goTenna and Samourai Wallet, the Kiwi dev was able to transfer bitcoin across New Zealand using only a $27 smartphone and some impressive mesh network architecturing.
SEC Opens a Pipeline for FinTech Companies to Seek Guidance
On October 18, 2018, the U.S. Securities and Exchange Commission (SEC) announced that it has created a new offices dedicated to fintech startups, including cryptocurrency and blockchain companies. The office will be a resource for these fledging organizations as the try to navigate unspecified regulations and comply with government mandates.