Fed Introduces New 'Secret Weapon

GM Readers!📪 It's BitDegree Insider, and here's a sip of that Web3 Aperol spritz.

⭐️Today's selection:

• ☎️The Fed Is Calling
• 🧋Wednesday Bubbles
• 👌Selected Meme of The Day
• 📰Bite-Sized News

THE FED IS CALLING

The US Federal Reserve System (or the 'Fed', as we fondly know them) is turning up the heat. They've just announced a brand-new oversight program for banks dabbling in cryptocurrencies.

So, how did this all come about?

Well, an insider (a person inside the FED, who probably loves a bit of drama) pitched the idea of tightening the leash on some financial giants. The result? A fresh, intense program that's about to shake up the scene.

Now, here's the lowdown:

If you're a financial firm and you've got your eyes on cryptos, the Fed says: "Hold up! ✋". You'll need a nod from them first, whether you're diving into the crypto pool yourself or just dipping your clients' toes in.

But wait, there's an extra twist. They've introduced a secret weapon, a special document titled SR 23-8 / CA 23-5. Sounds like a code from a spy movie, right? It's essentially the golden ticket - the Fed's stamp of approval for those wanting to store, buy, or sell US dollar stablecoins.

But getting this isn't a walk in the park! Banks need to prove they've got robust crisis-handling measures and strong reserves. Oh, and they must promise they're playing by the anti-money laundering rules. No shady business here!

Flashback to February 2023: the Fed dropped some hints about potential crypto pitfalls for banks. And guess what happened next?

Three US financial players - Silicon Valley Bank, Signature, and Silvergate - tumbled like a house of cards. And while the official word is that their fall wasn't due to crypto antics, whispers in the Blockchain Association say otherwise.

Speaking of the Blockchain Association, they've been quite the cheerleaders for the crypto world. Last year alone, they splurged $2 million to support their favorite 'crypto-friendly' politicians.

Well, the crypto soup is definitely brewing.

TL;DR: The US Federal Reserve has introduced a program to regulate banks in the crypto space, requiring their approval for activities involving cryptocurrencies and US dollar stablecoins. This move follows recent challenges faced by prominent financial institutions and reflects the evolving nature of cryptocurrencies in the financial sector.

WEDNESDAY BUBBLES

It's Wednesday. Time for our weekly screenshot of the crypto landscape.

BitcoinNo senior changes, yet its price touched $30,000 last night! At the time of writing, the first cryptocurrency is trading at about $29,880.

SHIBSHIB's recent price surge is attributed to developments on the testnet of their own network – Shibarium. Speculations are rife that the mainnet might launch in mid-August, fueling the buying enthusiasm.

AVAXAs it can be barely seen, it has no changes, despite the fact that something happened, let's review!

Andretti Avalanche Team - Champions! The racers clinched the Formula E championship, showcasing some of the best performances ever seen.

Looks like Avalanche nails it at racing while they're taking a rest from making strides in crypto.

SELECTED MEME OF THE DAY

BITE-SIZED NEWS

• Growing AI Deepfake Capabilities Challenge Crypto Exchanges' KYC Protocols. Changpeng Zhao worries about malicious actors using deep fakes to bypass crypto exchange KYC requirements.
• Former FTX CEO SBF Faces Indictment over Campaign Finance Scheme Allegations. With less than 3 months left until the beginning of Bankman-Fried's trial, US Attorney's Office shares new updates about the case.
• Memecoins Rally Amid Bitcoin's Leap Over $30,000. Following a recent memecoin frenzy, Bitcoin surpasses $30,000.

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