Bipartisan Support for Pro-Crypto Policies
America’s shift towards a pro-crypto stance has garnered bipartisan support as both Democrats and Republicans aim to maintain the US dollar’s status as a global reserve currency. California Democrat and US Representative Ro Khanna noted that at least 70 members of his party now recognize the necessity of regulating stablecoins. Khanna anticipates that this year will see the introduction of sensible legislation regarding crypto market structures and stablecoins. Typically, such developments would result in a surge in cryptocurrency prices; however, current market conditions, influenced by President Donald Trump’s trade strategies, have raised concerns about a potential recession.
Concerns Over Economic Recession
ARK Invest’s CEO Cathie Wood has joined a chorus of voices in the crypto sector warning about an impending recession. While economic downturns generally spell trouble, Wood suggested that they might offer President Trump and the Federal Reserve the opportunity to implement policies that stimulate growth. “We are worried about a recession,” Wood stated, highlighting her concerns about the economy’s trajectory. Despite US Treasury Secretary Scott Bessent’s lack of concern regarding a recession, Wood expressed that the White House might be underestimating the risks associated with Trump’s aggressive tariff policies. According to Wood, the “velocity of money” is experiencing a significant slowdown, indicating that both consumers and businesses are reducing their spending, a common precursor to economic recessions.
Potential Upside for Crypto Amid Recession
Despite the looming threat of a recession, Wood believes that such conditions could actually benefit risk assets like cryptocurrencies. She noted that a dip in GDP could provide the president and the Federal Reserve with greater flexibility to pursue tax cuts and adjust monetary policies to foster economic growth.
Imminent US Stablecoin Legislation
According to Bo Hines, the newly appointed executive director of Trump’s Presidential Council of Advisers on Digital Assets, the United States could see comprehensive legislation regarding stablecoins within the next two months. At the Digital Asset Summit in New York, Hines praised the bipartisan backing from the Senate Banking Committee for the Guiding and Establishing National Innovation for US Stablecoins Act, colloquially known as the GENIUS Act. This proposed legislation aims to establish clear standards for US stablecoin issuers, including guidelines on collateralization and adherence to Anti-Money Laundering regulations. Hines expressed optimism about the willingness of colleagues across party lines to cooperate on this essential matter.
Launch of DeFi-Focused Blockchain by Ethena Labs and Securitize
Ethena Labs and Securitize are set to unveil a new blockchain called Converge, aimed at enhancing both retail and institutional engagement with decentralized finance (DeFi) products and tokenized assets. This Ethereum Virtual Machine-based blockchain is designed to provide retail investors with access to standard DeFi applications while also catering to institutional-grade services, effectively bridging the gap between traditional finance and decentralized applications. Users will also have the opportunity to stake Ethena’s governance token, ENA, while the platform will utilize Securitize’s Real-World Asset (RWA) infrastructure, which has successfully minted nearly $2 billion in tokenized RWAs across various blockchain platforms.
Canary Capital’s Filing for Sui ETF
Canary Capital has filed a Form S-1 with the US Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) linked to Sui (SUI), the native token of a layer-1 blockchain designed for staking and transactional fees. This filing, submitted on March 17, highlights the increasing competition to broaden institutional access to digital assets, spurred by the success of spot Bitcoin ETFs last year. So far, Canary Capital has submitted six proposals for crypto ETFs to the SEC. Sui currently ranks as the 22nd largest cryptocurrency by market capitalization, valued at approximately $7.5 billion, according to CoinGecko, and has recently collaborated with World Liberty Financial, a DeFi company associated with Trump’s family.
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