The Digest

• Gensler Says SEC Won’t Ban Cryptocurrencies, A16z Proposes Decentralization-Friendly Framework
• U.S. Bank Offers Custody Service to Respond To Demand
• Bitcoin Exceeds $50K Year-to–Date Gains Place BTC Above SPX, Dow Jones
• Crypto Trading Suffers from a WhatsApp Outage

Gensler Says SEC Won’t Ban Cryptocurrencies, A16z Proposes Decentralization-Friendly Framework

Amidst regulatory pressure, the Securities and Exchange Commission (SEC) chairman, Gary Gensler, has clarified that the United States will not follow China’s footsteps in banning cryptocurrencies.

Gensler said that the U.S. would adopt a new regulatory approach. In addition, Gensler noted that he believes that many cryptos pass the “test of being investment contracts or a note or some other form of a security.”

Continuing the trend of regulation, venture capital firm Andreessen Horowitz (a16z) has proposed a decentralization-friendly approach to government oversight.

The major issues outlined by a16z include; “consumer protections, decentralized autonomous organizations (DAOs), assessing regulatory fragmentation and overlap, tax reporting, and clarity regarding certain blockchain ecosystems.”

Flipsider

• Gensler, SEC Chair has said that the SEC would not ban crypto but Congress will have the final word on the matter

Why you should care

A more accommodating attitude towards crypto in America could encourage its adoption and growth in the region.

U.S. Bank Responds to Bitcoin Custody Service Demand

U.S. Bank announced on Tuesday October 5 that it had launched a crypto custody services. This 158-year old bank has $8.6 trillion worth of assets that it holds under administration and custody.

U.S. Bank has partnered with NYDIG to provide cryptocurrency services for Bitcoin and other altcoins. Additionally, support will be provided for altcoins by the bank in the near future.

U.S. Bank says that crypto has a higher demand than ever. The reason is that most institutional clients have begun to see the benefits of using digital assets for their business.

In an interview, the vice chairman of U.S. Banks’s wealth management and investment services division, Gunjan Kedia, stated,

“Our clients are very interested in cryptocurrency as an alternative asset class. It’s not like there aren’t any asset managers who think about cryptocurrency right now.

Flipsider

• With only four remaining crypto exchanges in the country, cryptocurrency service providers are now subject to stricter regulation.

Why you should care

Institutional investors are increasingly interested in cryptocurrency, which could encourage greater adoption across all sectors.

Bitcoin outperforms SPX, Dow Jones by $50K

Peaking at nearly $65k in April, pressure from China’s ban, Evergrande, and environmental concerns forced BTC to trade around $40 for most of Q3. Bitcoin’s price has risen from its downtrends to $50k.

On October 5, Bitcoin, the world’s largest crypto, gained over 5% to reach an intraday high of $51,839. Bitcoin’s price briefly stabilized and traded at $50753.29 as of the writing.

This is the five-day Bitcoin price chart (BTC). Source: Tradingview

Bitcoin’s strong market performance in 2021 has ensured the asset outperformed major traditional stocks, and the S&P and Dow Jones.

Since the beginning of September, the stick value of the S&P 500 has dropped by 5.22%, while Dow Jones dropped by 3.84%. However, Bitcoin’s gains have exceeded 6% despite its significant declines.

Flipsider

• While Bitcoin outperforms traditional stocks, Jamie Dimon, CEO of JP Morgan says that Bitcoin doesn’t have intrinsic value.

Why you should care

Bitcoin’s bounceback continues regardless of negative sentiment from individuals and countries, proving that it can be an asset that will drive finance into the future.

WhatsApp Outage Causes OCT Crypto Trading

Tuesday, October 4th, saw the largest ever social media outage. WhatsApp, Facebook (NASDAQ;), Instagram and Messenger were responsible for bringing approximately 3Billion users offline. A disruption of this magnitude will affect all industries, even crypto.

Many cryptocurrency traders were left in limbo for six hours. The blackout occurred during the most busy trading hours and caused a drop in daily trading volumes of 15%.

OTC trading can be done via social media, with Telegram, Facebook and WhatsApp being the most popular. Telegram has been the preferred option of OTC traders throughout the Middle East.

Telegram claimed it had 70 million users after traders started looking for other platforms. However, the secure social media platform still worked flawlessly. Mark Zuckerberg lost $7 billion due to the worst social media disruption.

Flipsider

• Despite the Blackout, crypto trading continues to recover despite this blackout. The global market capitalization is now $2.163 trillion

Why you should care

To avoid losing funds, crypto trading (especially OTC and peer to peer) is carried out on different platforms.

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