Barring any last-minute change, United States President, Joe Biden will name Federal Reserve Vice Chairwoman Lael Brainard as his top economic adviser, sources familiar with matter disclosed.
Lael Brainard has been described as a crypto advocate although, with a missed feelings towards digital assets, Investors King learnt.
If the appointment is made, Lael Brainard would replace White House National Economic Council (NEC) Director Brian Deese, who has announced his resignation.
In July 2022, while calling for crypto adoption, Lael Brainard however argued that aggressive regulation is needed for the sector before things get out of hand.
Recent volatility has exposed serious vulnerabilities in the crypto financial system,” Brainard said in a speech in London in July last year.
Brainard has been leading the Fed’s work on a potential digital dollar. Her experience and advocacy for a digital dollar is seen as a good omen for cryptocurrency.
While acknowledging the vulnerability and challenges associated with cryptocurrency, Lael Brainard contends that the shortcomings of crypto are basically the same as traditional finance, and the sector needs to meet the same safety standards before it gets large enough to become a threat to the rest of the financial system.
Meanwhile, multinational financial institution, Morgan Stanley has noted that falling stablecoins could do damage to the cryptocurrency market. The bank said in one of its reports.
The bank notes that U.S. regulators have begun limiting stablecoin products, adding that stablecoin issuance is important for crypto traders. Falling stablecoin market capitalization is an indication of falling cryptocurrency liquidity and leverage, the equivalent of quantitative tightening for the crypto market, the report said.
Investors King earlier reported that US Securities and Exchange Commission has accused Paxos of illegally issuing BUSD, classifying it as an unregistered security.
Stablecoin is a type of cryptocurrency whose value is pegged to another asset, such as the U.S. dollar or gold. Stablecoins are important to the activities of cryptocurrencies as traders.
Binance CEO Changpeng Zhao Steps Down Amid Anti-money Laundering Violations
Changpeng Zhao, commonly known as CZ, has announced his resignation as the CEO of Binance, the world’s largest cryptocurrency exchange.
In a heartfelt message shared on social media, CZ acknowledged the emotional challenge of stepping down but emphasized that it was the right decision.
“Binance is no longer a baby. It is time for me to let it walk and run. I know Binance will continue to grow and excel with the deep bench it has,” CZ stated.
The newly appointed CEO is Richard Teng, the former Global Head of Regional Markets at Binance.
Teng brings over three decades of financial services and regulatory experience to the role, having served as CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market and Chief Regulatory Officer of the Singapore Exchange.
CZ expressed confidence in Teng’s leadership, highlighting his qualifications and commitment to guiding Binance through its next phase of growth. The focus will be on enhancing security, transparency, compliance, and overall expansion.
Binance CEO Changpeng Zhao was forced to step down as part of a major $4 billion settlement between United States agencies and the cryptocurrency exchange he founded.
The CEO pleaded guilty to anti-money laundering violations, including allowing transactions with Hamas.
Binance has now settled charges with the DOJ and Commodities Futures Trading Commission; the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC), which will give the Treasury Department access to Binance’s books and records under the terms of a five-year monitorship.
“Because of the crimes committed, Binance became the largest cryptocurrency exchange in the world,” Merrick Garland, the US Attorney General, said during a press conference on Tuesday. “Now, Binance has paid one of the largest corporate penalties in US history.”
The Treasury Department said in a statement that it had taken “unprecedented action” to hold Binance accountable for violations of U.S. anti-money laundering laws. It alleged that Binance had failed to prevent and report “suspicious transactions with terrorists,” citing both Al Qaeda and ISIS. The settlement comes with a $3.4 billion penalty to FinCEN and $968 million to OFAC, as well as compliance requirements and monitoring for a period of five years.
Reflecting on his future plans, CZ mentioned taking a break and exploring passive investments, particularly in blockchain, Web3, DeFi, AI, and biotech startups.
While ruling out a return to the role of CEO, he expressed openness to coaching and mentoring a select group of emerging entrepreneurs.
In his message, CZ took pride in the resolutions with U.S. agencies, clarifying that they do not allege misappropriation of user funds or engagement in market manipulation, reassuring users that funds are “SAFU” (Secure Asset Fund for Users).
The unexpected leadership transition marks a new chapter for Binance, with the crypto community eagerly anticipating how the exchange will evolve under Richard Teng’s guidance.
U.S. Justice Department Seeks Over $4 Billion from Binance Amidst Investigation
The U.S. Justice Department is in negotiations with Binance Holdings Ltd., seeking a resolution to a lengthy investigation into the cryptocurrency exchange.
The proposed settlement includes the possibility of Binance founder Changpeng Zhao, known as “CZ,” facing criminal charges in the U.S.
The Justice Department’s demands exceed $4 billion, making it one of the largest penalties in a criminal cryptocurrency case.
While the exact charges and structure of the resolution remain unclear, sources suggest that Binance may be expected to pay over $4 billion.
The investigation covers alleged money laundering, bank fraud, and sanctions violations. BNB cryptocurrency, native to Binance, experienced an 8.5% surge to $266.42 following reports of the ongoing negotiations.
Matt Walsh, founding partner at crypto venture firm Castle Island Ventures, highlighted the potential for a settlement with monitoring provisions, allowing Binance to pursue a more compliant future.
The agreement aims to strike a balance, ensuring Binance’s continued operation to prevent negative consequences for markets and crypto holders.
Binance, facing legal and regulatory actions, has sought to minimize its exposure in any settlement, including pushing for a deferred prosecution agreement.
Such an agreement would involve filing a criminal complaint against the company, with the U.S. withholding prosecution under specified conditions.
The investigation covers allegations of aiding in sanctions evasion against Iran and Russia and scrutiny regarding transactions possibly financing Hamas.
While the Justice Department has pushed for a broad leadership change at Binance, it remains unclear if charges would extend beyond CZ. The potential resolution follows increased legal scrutiny and regulatory actions against Binance, including a lawsuit from the Securities and Exchange Commission in June.
The crypto community watches closely as one of the largest investigations into a cryptocurrency company unfolds, awaiting further developments in this high-stakes negotiation.
Worldcoin’s Rollercoaster Ride Amidst Altman’s Ouster Drama
The Worldcoin digital token, associated with Sam Altman’s World ID project, has experienced significant volatility following the recent upheaval in Altman‘s professional journey.
The token which rose to $2.48 a coin began a descent on Thursday amid broader digital-asset market fluctuations, intensifying after Altman’s dismissal from OpenAI.
Altman’s firing on Friday added to Worldcoin’s downward spiral, reaching a low of $1.84.
However, in the wake of efforts by a group of OpenAI executives and investors to reinstate Altman, the token staged a remarkable recovery, rallying 18% within 24 hours to reclaim the $2.40 level.
The current market value of Worldcoin stands at approximately $280 million, placing it 157th in the crypto market.
The token’s fluctuations are intricately tied to the unfolding drama surrounding Altman’s potential reinstatement as the CEO of OpenAI.
Richard Galvin, co-founder at Digital Asset Capital Management, noted that the token’s movements are closely linked to “Altman news flow and concerns over his ouster at OpenAI.”
Worldcoin, part of Tools for Humanity, a company co-founded by Altman, is unique for its blockchain-based system that uses an orb to scan individuals’ eyeballs, generating a distinct digital identity.
The associated World IDs, designed for an AI-enabled future, aim to establish personhood in a scenario where distinguishing between humans and machines becomes challenging.
Despite its recent price gyrations, Worldcoin’s underlying project raises privacy and ethics concerns.
As Altman’s fate at OpenAI hangs in the balance, the crypto community continues to closely monitor the developments, with Worldcoin at the center of attention.
Finance3 weeks ago
Black Market Exchange Rate Today 6th November 2023
Business2 weeks ago
Nigeria’s Logistics Sector Holds Untapped N3tn Potential, Says Courier and Logistics Management Institute
News4 weeks ago
N-Power Beneficiaries to Receive Eight Months of Owed Payments After Funds Recovery
Black Market Rate2 weeks ago
Black Market Exchange Rate Today 14th November 2023
News2 weeks ago
Millionaire Powerplay Limited Unveils Unprecedented Odds in American Lotto’s Instant Cashless Payout
Naira4 weeks ago
Nigerian Naira Hits Record Low of N993.83 Against the Dollar at I&E Forex Window
Black Market Rate3 weeks ago
Black Market Exchange Rate Today 9th November 2023
News3 weeks ago
N-Power Batch C1 Programme Successfully Concluded, Investigation Ensures Eligible Beneficiaries Receive Payments