While Tether published an update with improving liquidity that should soothe nervous markets, Ethereum is continuing preparations for its Merge — which is now penciled in for August.
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Tether reported a 17% decrease in commercial paper in the first quarter of 2022. Another 20% decrease is to follow in Q2, as the company rushes to prove its solvency amidst market concerns that it may not have the reserves to back circulating USDT. According to the report, 52% of its reserves are now in cash or cash equivalents, with only 37% in commercial paper — a significant decrease from last year.
Ethereum’s core developer Preston van Loon said at the Permissionless conference that Ethereum’s Merge will happen in August (if everything goes according to plan). He was echoed by fellow Ethereum researcher Justin Drake, which marks yet another bullish sign for Ethereum’s switch to Proof-of-Stake to finally happen. Prediction markets now consider The Merge to be practically guaranteed to happen in 2022.
Following a meeting in Koenigswinter, Germany, the leading industrial nations G7 published a statement that called for swift and comprehensive regulation of cryptocurrencies. The statement follows the collapse of LUNA and UST, which wiped out over $300 billion in market value. Calls for more regulation were echoed by Janet Yellen and the governor of the Bank of France.
The Commonwealth Bank, Australia’s largest one, announced the temporary suspension of its crypto trading pilot. The bank cited a lack of regulatory clarity and concerns over market volatility, following the fallout of the LUNA/UST crash. Australia’s largest bank had already had problems with regulatory approval before the crash but may be looking to limit possible reputational damage with this move.
The US branch of crypto exchange FTX announced the launch of FTX Stocks, an equity trading service that will offer US stocks and ETFs. The full launch will come mid-summer, according to FTX officials. The announcement follows the recent acquisition of 7.6% of Robinhood shares by FTX CEO Sam Bankman-Fried. The company said a merger is currently not planned.
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