Some crypto industry participants criticized new rules proposed by the CFPB on Friday, saying it was unclear whether they would impact noncustodial service providers. Billionaire co-lead of the Department of Government Efficiency Elon Musk previously said he would “delete” the Consumer Financial Protection Bureau founded by Elizabeth Warren.
1. The non farm payroll in the United States increased by 256000 people in December, exceeding expectations by 160000 people, with an unemployment rate of 4.1%. The Federal Reserve may postpone interest rate cuts. 2. Federal Reserve's Gulsby stated that if current economic expectations are met, interest rates will significantly decrease in 12 to 18 months. 3. JPMorgan expects the Federal Reserve to make its next interest rate cut in June, delaying its previous expectation of March. 4. Non farm payroll data supports the Federal Reserve to slow down the pace of interest rate cuts, indicating a strong job market. 5. The Vice Chairman of the FTC called for a more open attitude towards cryptocurrencies and criticized the current 'bottleneck strategy'. 6. Bhutan's cryptocurrency reserve strategy may pave the way for economic growth in other countries. 7. The US dollar rose before the release of non farm payroll data, and the market is concerned about the timing of the Federal Reserve's interest rate cut. 8. The departure of the enforcement officer in charge of CFTC cryptocurrency cases may affect the future direction of cryptocurrency regulation. 9. The US Consumer Financial Protection Agency has proposed to include digital wallets in the same protection standards as bank accounts. 10. Rap singer preparing to go to jail for Bitfinex hacking incident, releases new music video. 11. Bybit announced that it will temporarily cease providing services to Indian users due to regulatory restrictions in India. 12. Kenya is preparing to legislate to legalize cryptocurrency, demonstrating the government's shift in attitude towards cryptocurrency. The above is a selection of hot topics from the past 24 hours. Click to see the full article: https://www.aicoin.com/article/438506
Usual Protocol, an up-and-coming decentralized finance (DeFi) protocol that has seen a remarkable rise over the past months, faced community backlash on Friday after a tweak in the protocol's yield-generating token triggered a sell-off on secondary markets.Amid the turmoil, the protocol's USD0++ token, which represents a locked-up – or staked – version of its $1-anchored stablecoin USD0, fell briefly below 90 cents from $1 on decentralized marketplace Curve. The protocol's governance token, USUAL, plummeted as much as 17% through the day before recovering some of the losses.The selloff was caused by a change in the redemption mechanism of USD0++ token introduced by the team on Thursday that caught investors and liquidity providers off-guard.By design, USD0 is backed by short-term government securities to keep its price at $1. Stakers on Usual receive USD0++ that comes with a four-year lock-up period, meaning that investors are locking up their funds without being able to redeem in exchange for rewards earned in the form of the protocol's USD0 and USUAL tokens. Yield farmers rushed in, catapulting the protocols total value locked (TVL), a key DeFi metric, to $1.87 billion earlier this week from less than $300 million in October.However, the new feature called "dual-path exit" will allow investors to redeem the locked-up tokens early at a 0.87 USD0 floor price, or at par, by giving up a part of the rewards earned, calling the 1:1 exchange rate into question.The abrupt implementation drew criticism across DeFi users for changing the design without warning. In certain liquidity pools, the token's price was hardcoded to worth $1, causing havoc among borrowers and liquidity providers."Did they just allow degens to jump in at 1:1 and then rug the USD0++?," prominent DeFi analyst Ignas said in an X post. "They pushed for the largest USD0/USD0++ pool on Curve knowing all well that USD0++ shouldn't trade at 1:1.""DeFi continues learning the most important truth about pegs: a peg is a story about why two things that are not the same are interchangeable for each other," noted Patrick McKenzie, advisor to payments firm Stripe.The Usual team said in a statement that the design change with the early unstaking mechanism was communicated in advance from October. The protocol will also activate the revenue switch starting on Monday and start distributing the protocol's earnings to governance token holders who stake their coin for longer-term (USUALx)."The current situation regarding USD0++ stems from a misunderstanding of the protocol’s mechanisms along with a communication that should have been better articulated," the statement reads. "We apologize and we’ll continue to do our best to communicate transparent information to users."The episode is another lesson for crypto investors about the potential risks of DeFi products that entice users with high-yields via token incentives and rewards flywheels. "Users who are taking risk need to know what the exact rules are and be able to trust that they won't change, otherwise it can result in market panic," Rob Hadick, general partner at venture capital firm Dragonfly, told CoinDesk. "We should be thankful this happened now, before the protocol became a risk to the broader DeFi ecosystem."Still, USD0++ traded recently at 0.91 USD0 in the Curve pool, while the protocol's total value locked, a key DeFi metric, dropped below $1.6 billion.
Enforcement Director Ian McGinley is leaving the Commodity Futures Trading Commission in a week, ending a relatively short tenure that saw some high-profile crypto cases.He arrived at the agency in February 2023, a month before the CFTC sued Binance and then-CEO Changpeng Zhao for violating U.S. commodities laws. During his tenure, he also oversaw the conclusion of the enforcement work against collapsed global platform FTX, which he characterized as the largest recovery of dollars for victims in CFTC history. The agency has since pursued actions against KuCoin and Falcon Labs, among other projects. In a 2023 speech, McGinley addressed the agency's special focus on digital assets, saying, "The CFTC has risen to the challenge in a remarkable fashion."In the statement announcing his January 17 departure, "establishing the CFTC as a premier law enforcement agency for digital asset enforcement" was listed first among the priorities of his tenure. The CFTC's cousin agency, the Securities and Exchange Commission, usually gets more attention (and industry criticism) for its crypto enforcement work, though both have pursued dozens of major cases.McGinley's departure opens a path for Republicans to redirect the agency's enforcement work when a Trump appointee takes over the chairmanship. Trump's transition crew has reportedly eyed a long list of potential CFTC chiefs but hasn't pulled the trigger as quickly as it did on the marquee opening atop of the Securities and Exchange Commission. However, if crypto legislation makes headway in 2025, the CFTC could overtake the SEC' as the dominant agency overseeing U.S. digital assets markets.Sitting Republican commissioners, Caroline Pham and Summer Mersinger, have been touted as potential candidates for the almost-open chairmanship, alongside former Commissioner Brian Quintenz, currently Head of Policy at a16z crypto.
The current price of Binance BTC is $94803.38, with a 3.00% increase in the past 24 hours. Among them, the total liquidation amount of contracts across the entire network in the past 24 hours was 281 million US dollars, with the main liquidation being short orders and BTC liquidation being 74.85 million US dollars (26.54%). The data is for reference only.
Some crypto industry participants criticized new rules proposed by the CFPB on Friday, saying it was unclear whether they would impact noncustodial service providers. Billionaire co-lead of the Department of Government Efficiency Elon Musk previously said he would “delete” the Consumer Financial Protection Bureau founded by Elizabeth Warren.