Federal Reserve Chair Jerome Powell recently spoke before Congress and the House Financial Services Committee, discussing the importance of stablecoins and the role of the Fed in their regulation. He also mentioned the upcoming launch of FedNow, a digital communication platform for interbank asset trades, and the need for a robust federal role in stablecoin regulation. Powell expressed support for the continued role of private sector banks in government debt purchasing and also discussed the possibility of implementing international capital requirement Basel III, which would require banks holding bitcoin or other digital assets to also hold an equal part dollar.
In addition to Powell’s remarks, the US Securities and Exchange Commission has filed lawsuits against Coinbase and Binance, in addition to the ongoing case with Ripple. Coinbase’s Chief Legal Officer stated that the Third Circuit will retain jurisdiction over their challenge to the SEC’s inaction on their petition for basic rules for crypto, while Ripple’s CTO described the situation as a “rollercoaster”. Lawyer John Deaton, representing XRP holders, has also criticized the SEC’s position. Despite the challenges, Coinbase was successful in getting relief, which may indicate some shared frustration with the SEC among Federal judges.
Cryptocurrency investors are keeping a close eye on developments in the market, particularly with regard to the performance of altcoins like Avalanche’s AVAX cryptocurrency. The value of AVAX has seen a surge of 6.3% within a 24-hour period and a 16% increase over the past seven days, breaking through a key resistance level at $13. However, the Relative Strength Index (RSI) has remained below the 50-mark since April, suggesting potential resistance as bullish trends encounter selling pressure. The On Balance Volume (OBV) indicator has recovered, indicating an improvement in demand for AVAX. The value of altcoins like AVAX can be impacted by the performance of Bitcoin, which tends to set the overall market sentiment.
Overall, developments in the cryptocurrency market continue to evolve rapidly, with investors and regulators alike keeping a close eye on the latest news and trends. While challenges and uncertainties persist, the potential benefits of cryptocurrencies and blockchain technology continue to attract attention and investment from both institutional and individual investors.