ECB raises rates by 75 basis points
• The European Central Bank (ECB) raised interest rates by an unprecedented +75 basis points (bps).
• The ECB lifted its deposit rate to 0.75% from 0% and refinancing rate to 1.25% to combat inflation.
Market bracing for 0.75bps hike from Fed
• Probability increase of three-quarter point hike this month according to CME Group.
• The Fed has raised rates by 225 bps this year and has begun reducing the size of its balance sheet.
SEC: "crypto doesn't need more guidance"
•SEC Chairman Gary Gensler said crypto doesn't need guidance. It must abide by securities laws.
• The Chairman added that "Lending companies fall under the SEC's jurisdiction if they offer securities".
Fed calls for stablecoin regulation
• Fed Vice Chair Brainard calls for crypto-specific regulations, notes stablecoin risks.
• While crypto "has all the same risks [...] from traditional finance,” its quirks need tailored solutions.
White House Suggests Banning POW
• Two White House government agencies released a report suggestion banning proof-of-word (POW).
• They suggest taking actions to control high energy consumption by crypto mining POW mechanism.
No ETH loans
• Some DeFi and exchanges stopped loaning ETH ahead of The Merge.
• Protocols and exchanges are worried about liquidity issues.
Ethereum upgrade before The Merge
• Ethereum’s Bellatrix upgrade has been activated this week.
• This upgrade was the final step before Ethereum switches to proof of stake.
Binance stops support for select stablecoins
• Binance to stop supporting USDC, USDP, and TUSD as trade-able assets on its platform.
• User can still deposit and withdraw these assets, but they will be aggregated into BUSD while trading.
We hosted a live town hall on 9 September 2022 on YouTube, in which we discussed:
- Current state of DeFi;
- Our new offering;
- Technical deliverables;
- Revised project road map;
- The path forward.
You can watch the replay and download the slides below. See you next week.