1. Fed Vice Chair Brainard Calls For Immediate Crypto Regulations
At a Bank of England seminar in London on Friday, Lael Brainard, the vice chair of the Board of the Federal Reserve Governors, discussed cryptocurrency regulation and decentralized finance (DeFi).
The current volatility in the cryptocurrency market, she said, “has exposed serious vulnerabilities in the crypto financial system,” as her opening statement. She continued by saying that risks associated with leverage, settlement, opacity, maturity, and liquidity transformation exist in both traditional and crypto financial systems.
Brainard stressed: “It is important that the foundations for sound regulation of the crypto financial system be established now before the crypto ecosystem becomes so large or interconnected that it might pose risks to the stability of the broader financial system.”
2. Iranian Power Company Tavanir Pressures Unlicensed Crypto Miners
To stop cryptocurrency mining outside the law, the Iran Power Generation, Transmission and Distribution Company (Tavanir) has implemented new, stricter procedures. According to the utility’s spokesman Mostafa Rajabi Mashhadi, fines for illicit activity in the industry have climbed by 400%.
He explained, as reported by the Financial Tribune in English, in Iran: “Unlicensed crypto miners must pay their electricity bills at rates four times higher than export rates that are already higher than the subsidized tariffs for households.”
Mashhadi added that after they are discovered, first-time offenders will be prohibited from using subsidized energy for three months, including electricity, natural gas, and liquid fuels. And those who are found again would have their access to supplies shut off for an entire year, the official stated in a statement posted on the Iranian Ministry of Energy’s website.
3. US Treasury Delivered Crypto Frameworks To President Biden
A information sheet titled “Framework for International Engagement on Digital Assets” was released by the U.S. Department of the Treasury on Thursday.
The President’s executive order on ensuring responsible development of digital assets directs the Secretary of the Treasury to present to Vice President Joe Biden “a framework for interagency engagement with foreign counterparts and in international fora.” On March 9, Biden issued an executive order regulating cryptocurrency.
According to the framework, the United States and its partners abroad must work together to develop global standards for the regulation of cryptoassets. According to the Treasury: “Uneven regulation, supervision, and compliance across jurisdictions creates opportunities for arbitrage and raises risks to financial stability and the protection of consumers, investors, businesses, and markets.”
4. Bitcoin’s Hashrate Dropped Below 200 Exahash
Bitcoin miners are suffering as a result of lower bitcoin (BTC) prices since they are no longer making as much money as they were a month ago. A block subsidy value is about $136,625 each block at the current BTC exchange rate, and during the past 90 days, the average hashrate has been around 213.8 exahashes per second (EH/s).
The hashrate peaked on June 8, 2022, at a block height of about 739,928 and is currently substantially lower at 178.44 EH/s. After the first week of June, according to statistics collected over the past month, BTC’s hashrate fell 26.56% below the norm.
BTC miners have gotten a reprieve during the previous two DAA changes when they witnessed two downward adjustments, despite the fact that BTC’s price is lower and hovering just above the $21K zone. The last two DAA changes made it 3.76% simpler to locate BTC blocks, and the upcoming DAA adjustment is anticipated to be 0.13% lower.
5. Russian Ministry Of Finance Supports Domestic Stablecoin Usage
According to Ivan Chebeskov, director of the ministry’s Financial Policy Department, the Russian Federation’s Ministry of Finance (Minfin) is generally in favor of allowing stablecoins to be used in the nation. The senior official made the declaration at the Russian Creative Week panel discussion, “The Influence of Web3 – New Era of the Internet of Trust?”
Chebeskov said that Minfin approaches the problem from the standpoint of Russian businesspeople. “If there is a need for businesses, companies or investors to settle, invest in a new way, if they need such a tool, because it reduces costs, works better than previous tools, and if we can limit the risks associated with it, we will always support such initiatives,” he elaborated.