Bitcoin, Ether surge over 10% in trade, experts say correlation between digital assets and broader financial markets increasing

The US Government's decision to provide a safety net for SVB depositors has led to a surge in the value of major cryptocurrencies like Bitcoin, Ether and Dogecoin and the market capitalisation breaking the $1 trillion ceiling.

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EU lawmaker urges regulators to prevent financial apocalypse following SVB collapse

Markus Ferber, a representative of the leading centre-right party in the European Parliament and an influential lawmaker in the European Union has urged regulators to prevent panic from spreading following the collapse of SVB. Ferber called on EU bank supervisors to assess the vulnerability of European lenders to interest rate shocks similar to those that caused the Californian bank to fall on Friday, March 10. He emphasised the importance of containing panic, which he described as “infectious” and “not to be allowed to spread”. He also raised concerns about how sovereign bonds are treated under bank-capital rules, a recurring theme among German politicians who argue that the current regulations underestimate the risk posed by indebted governments such as Italy and Greece. Read more here

Digital asset investment products see record outflows amidst growing volatility concerns

Digital asset investment products have seen outflows for the fifth consecutive week, with the total amount reaching a record high of $255 million, representing 1.0 percent of total assets under management (AUM). According to a report by Coinshares, while the outflows are the largest on record in dollar terms, the percentage of outflows relative to total AUM was greater in May 2019, when outflows represented 1.9 percent of AUM. The negative sentiment was broad and was seen in both North America and Europe. However, the US stood out with inflows of $11 million, primarily into long-Bitcoin. Despite the increase in total AUM since May 2019 (816 percent), the outflows wiped out all the inflows seen this year, with outflows now standing at $82 million year-to-date. Read more here

Meta's to ditch NFTs and focus on other money-making opportunities

Meta, formerly known as Facebook, has announced that it will stop working on digital collectibles, also known as non-fungible tokens (NFTs), in order to focus on other ways to support creators, businesses, and people. This decision was made to prioritize areas where the company can make a greater impact at scale. Stephane Kasriel, head of commerce and financial technologies at Meta, thanked their partners who have been working with them on this journey and who are doing great work in this dynamic space. He added that the company learned a lot from this experience and will be able to apply this knowledge to products they are continuing to build to support creators, people, and businesses on their apps, both today and in the metaverse. Read more here

US Justice Department investigates TerraUSD stablecoin collapse, putting creator under pressure

According to sources familiar with the matter, the US Justice Department is conducting an investigation into the collapse of the TerraUSD stablecoin last year. This development increases the pressure on Do Kwon, the South Korean crypto entrepreneur who created the stablecoin, as he may now face criminal charges in the US. The FBI and the Southern District of New York have reportedly questioned former employees of Kwon's company, Terraform Labs Pte. Ltd., and have expressed interest in speaking with others. As both agencies are part of the Justice Department, the SDNY is typically responsible for prosecuting high-profile financial crimes. Take a look

New CFTC Chair and Vice Chair of Technology Advisory Committee announced, aim to address cybersecurity and digital asset development

The US Commodity Futures Trading Commission (CFTC) has announced new leadership for its Technology Advisory Committee. Carole House, a former White House official, has been named as the new chair, while Ari Redboard, from blockchain analysis company TRM Labs, will serve as vice chair. The CFTC published a list of committee members, which was newly constituted and sponsored by Commissioner Christy Goldsmith Romero. In a statement, Goldsmith Romero emphasised the importance of seeking advice from technology experts to protect financial markets from cyber-attacks, ensure responsible development of digital assets that protect customers, and understand the implications of emerging technologies like artificial intelligence. Read more here