The Federal Reserve has announced the discontinuation of its "novel activities" supervision program, which was established in 2023 to specifically monitor banks' involvement with cryptocurrency and financial technology . This decision reflects the central bank's improved understanding of the risks associated with these emerging technologies and how financial institutions manage them. The oversight of these activities will now be incorporated into the Fed's standard bank supervisory framework, signifying a shift from a specialized regulatory approach to a more integrated, routine oversight process within the Fed’s existing structures.
In related developments, the cryptocurrency market has experienced significant movements. Bitcoin is currently trading at $117,376, with an intraday high of $118,519 and a low of $117,278. Ethereum is priced at $4,463.04, reaching a high of $4,569.31 and a low of $4,403.42. BNB stands at $856.57, XRP at $3.08, and Cardano at $0.955475.
In the political arena, World Liberty Financial, a crypto firm backed by Donald Trump and his sons, has announced a $1.5 billion deal to buy its proprietary crypto tokens through a partnership with Nasdaq-listed blockchain company ALT5 Sigma Corporation. This venture underscores the Trump family's intensified involvement in the crypto space, bolstered by Trump's return to the presidency in January and his continued support for digital assets.
Additionally, Do Kwon, a South Korean cryptocurrency entrepreneur known as "the cryptocurrency king," pleaded guilty in a Manhattan federal court to two counts of fraud related to the $40 billion collapse of Terraform Labs. The charges involved conspiring to commit commodities, securities, and wire fraud, as well as a separate count of wire fraud. Kwon co-founded Terraform Labs, which launched the stablecoin TerraUSD, claiming it was a safe investment. However, its collapse in May 2022, alongside its companion token Luna, led to massive investor losses worldwide.
These developments highlight the dynamic and evolving nature of the cryptocurrency industry, encompassing regulatory shifts, market fluctuations, and significant legal proceedings.
