The US banking system is facing continued turbulence, as First Republic Bank (FRC) becomes the latest casualty.
The San Francisco-based bank has seen its shares plummet by over 50% this week, following the release of its first-quarter results, which showed a staggering drop of over $100 billion in deposits.
Just as the market was beginning to feel reassured by the Federal Reserve and FDIC's recent affirmations of the banking system's stability, FRC's predicament has sparked fresh uncertainty.
It is also worth noting that this news comes on the heels of a warning from the IMF, which flagged an increased risk of recession due to high inflation and uncertainty in the US and Europe’s banking systems.
Ethereum’s Shapella upgrade a success
The much-awaited Shapella upgrade was a success, marking the completion of another major phase in Ethereum's transition to a fully proof-of-stake (PoS) network.
As expected, this milestone triggered a price change in ETH, pushing it to a nine-month high of slightly above $2,100. However, the hype has since cooled down as the larger crypto market retraced over the past week.
Image source: TokenUnlocks
US Stablecoin Regulation debate heats up
Following SEC Chair Gary Gensler's testimony before the House Financial Services Committee last week, a new discussion draft on stablecoin legislation, being advanced by Republicans, emerged earlier this week.
Notably, the draft does not categorize stablecoins as securities - a contentious issue that sparked intense debate when Gensler was asked to definitively state whether Ether was a security.
While partisan politics are clearly shaping the regulatory debate around cryptocurrencies in the US, the fundamental fact remains that there is a strong push for comprehensive regulatory frameworks at both the Federal and State levels.
Noteworthy Mentions
Crypto VC Space Turned Risk Averse in the Bear Market
We've recently published an article that delves into the shift in crypto venture capital trends during last year's market turmoil. To provide a more complete picture, we spoke directly with prominent VCs for some insights. If you're curious about where crypto capital might be headed this year, check out our full article for some valuable insights. Read it here.
Industry Shakers
Apple has launched a savings account with a highly competitive interest rate of 4.15%, more than ten times the average US savings rate. This move represents Apple's expansion into the financial services industry, building on the success of Apple Pay.
Bittrex recently revealed its decision to withdraw from the United States: however, the Securities and Exchange Commission (SEC) has now accused Bittrex and its former CEO, William Shihara, of several offenses. The SEC alleges that six tokens listed on the platform, including Algorand’s native token ALGO and Dash, are securities.
Despite a ban on crypto-related activities in mainland China, several Chinese banks have expressed interest in building partnerships and collaborating with regulated crypto firms in Hong Kong.One such bank is the Hong Kong branch of the major state-owned Bank of Communications, which is currently in discussions with a number of registered crypto businesses in the city. According to a report by The Wall Street Journal, the bank is exploring the possibility of opening accounts for these regulated companies.
Nike, the renowned shoe and apparel company, has recently disclosed its plan to launch its "first digital-creation collection" on Swoosh - a blockchain-powered platform that was announced by Nike in late 2020.
Also published here.