REAL CLEAR CRYPTO: The Decentralized Diaries For The Week of 10/12/22


EDITOR’S NOTE:  This week we’re launching a new series that will become part of our regular editorial lineup around the most important happenings in institutional crypto for the week.  Our thanks to Sarson Funds, who will be sponsoring the first few posts of this new series.

By Christopher Hamman

Last week was topsy-turvy with several silver linings. The digital asset markets are still moving sideways, but there are a few indications that things are looking up. 

Here’s a recap of the events that occurred. 

Bitcoin Hovered Over $20k as Exchange Outflows Increased

Bitcoin continued to hold steady at $20,000 with the altcoins following suit. The number of Bitcoin tokens held on exchanges fell over 9% last week following a bearish quarter. 

It shows an increase in the number of HODLers, long-term speculators who see growth prospects on the horizon, and is a sign of a return of the token and the industry to bullish growth. 

Gemini Partnered with the Envestnet | Tamarac Platform 

The Winklevoss-backed cryptocurrency exchange Gemini through its wealth management arm Gemini BITRIA announced its partnership with top-rated Envestnet | Tamarac via a news release indicating the completion of the onboarding process between both platforms. 

Registered investment advisers (RIAs) can now access crypto feeds and portfolios from within Tamarac. They also can create digital asset wealth management accounts and fulfil tasks without switching platforms. 

Over 3,000 RIAs manage $1.3 Trillion plus in assets. The digital asset space will have new institutional entrants and create a boost in prices.

US Treasury Pushed Congress for Increased Crypto Legislation

The US Financial Stability Oversight Council (FSOC) called on Congress to pass legislation to reign in the risks associated with digital assets following a meeting on Monday, October 3rd, 2022.

The FSOC comprises the nation’s top regulators. The council also released a report that covered crypto-asset risks to the US financial system, enforcement of existing laws, and current regulatory gaps. 

The Canadian Central Bank Released a Study on CBDC Models

An analytical note released by a researcher with Canada’s top bank defined central bank digital currencies (CBDCs) from a model-based point of view. 

In the paper, Sriram Darbha defined five “archetypes”-centralized, leaderless, macro-partitioned, micro-partitioned, and direct. The direct model received the highest rating based on several criteria. It shows the central banks’ thinking of the best ways to deploy digital currencies on a retail scale. 

The European Union Completed its First-Ever Crypto Legal Framework 

The Council of the European Union disclosed a consensus among member countries regarding the “Markets in Crypto Assets Regulation” (MiCA) framework in a statement released on Wednesday, October 5th, 2022.

The legal proposal, among other things, called for increased transparency and the identification of digital wallet owners and transactions. Cryptocurrency exchanges and other institutional service providers will have to implement strong “Know-your-Customer (KYC) provisions.

The draft legislation also gives the monetary authorities of member states powers to regulate several types of digital asset institutions. It further provides an increased number of rules that govern their management.

Japanese Prime Minister Encourages Increased Web3 Investments and Adoption

The Japanese Prime Minister showed his government’s favorable position on the increased use and deployment of Web3 technologies. In his policy speech, Fumio Kishida said his government will “promote efforts to expand the use of Web 3.0 services that utilize Metaverse and NFTs”.

This follows several efforts in integrating Web3 technologies (especially NFTs) into daily activities. 

The European Union Increases Russia Sanctions with Crypto Ban

Following Russia’s annexation of four Ukrainian regions, the European Union has moved to adopt another round of sanctions. This time, cross-border crypto payments are blocked alongside €7 billion in trade restrictions. 

Before now, crypto transfers of €10,000 and below were allowed. However, all crypto transactions from Russia to member countries are prohibited. 

That’s a wrap for now. As the industry continues to evolve, we will keep up with the current trends and events for everything decentralized and keep you “in the know”!