Binance co-founder and CEO Changpeng Zhao says that the crypto exchange has abandoned its decentralized headquarters model because regulators don't know how to work with the concept. "Now we have come to realize that for the regulators, we need to be centralized," says Zhao.
Traders are buying up hedging contracts ahead of the quarterly "triple witching" on S&P 500 stocks and index futures options on the back of a swathe of expiries, prompting doubts about whether the market will rebound after the drop given lingering uncertainties over valuations. "We're still cautious on the coming weeks as all the macro risks/overhangs remain unresolved," said Adam Crisafulli, founder of research firm Vital Knowledge.
Some financial market participants are concerned by a statement from the International Organisation of Securities Commissions emphasizing that alternative interest rate benchmarks replacing Libor must be compliant with IOSCO principles. It is viewed by some as an effort to pressure the markets to use the risk-free Secured Overnight Financing Rate, which is backed by the big banks, rather than the credit-sensitive rates which are largely favored by small and medium-sized banks.
Banks holding cryptocurrency assets and derivatives referencing them have the risk management expertise to handle the emerging asset class without added oversight, says the ACI FMA Crypto Working Group in response to a Bank of International Settlements' cryptoassets consultation. The group notes that "crypto assets have a similar risk profile to many currently traded OTC Commodities and Emerging Market currencies, including NDF's (Non-Deliverable Forwards)."
Asset managers and others are calling for the Sustainable Finance Disclosure Regulation to be tweaked in order to strengthen the disclosure requirements for environmental, social, and governance-related products to prevent greenwashing. "SFDR was supposed to be kind of an anti-greenwashing tool but now, unfortunately, Article 8 is becoming a greenwashing label," says World Wildlife Fund senior sustainable finance policy officer Julia Linares.
The high-profile spat between Coinbase and the US Securities and Exchange Commission over Coinbase's proposed token-lending product is a good indication that the SEC plans to establish its crypto regulations in the face of the new technology, experts say. "What we have right now is a number of entrepreneurs in the cryptocurrency space who are running through a wall and trying to get through to the clarity they hope to see on the other side," says BTIG analyst Mark Palmer.
The Avalanche Foundation has raised $230 million in a funding round led by Three Arrows Capital and Polychain Capital which also included investments from CMS Holdings and Dragonfly Capital. Avalanche says the large-scale capital investment will be used to "support and accelerate the rapid growth of DeFi, enterprise applications and other use cases on the Avalanche public blockchain."
The venture capital industry is pushing back on a bill under consideration in Congress that would authorize Medicare to negotiate prices for some drugs. Firms and industry advocates say the measure would result in a serious drop in funding for drug research and development.
Whatnot, a startup shopping platform that caters to collectors, raised $150 million in a Series C funding round that gave it a $1.5 billion valuation. The new capital will help the company broaden the range of the merchandise it handles.
CodeSignal, a startup that helps employers screen applicants for jobs that require coding skills, raised $50 million in its Series C funding round. With the new capital the company will expand to meet the growing demand for remote recruiting tools.