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March 3 (Reuters) - Silvergate Capital Corp (SI.N) said on Friday it made a "risk-based decision" to discontinue the Silvergate Exchange Network, its crypto payments network, two days after the digital asset-focused bank raised doubts about its viability. "Effective immediately Silvergate Bank has made a risk-based decision to discontinue the Silvergate Exchange Network (SEN). The Silvergate Exchange Network, one of the bank's most popular offerings, enabled round-the-clock transfers between investors and crypto exchanges, unlike traditional bank wires, which can often take days to settle. Silvergate shares on Friday slumped more than 2% in after-hours trading, after closing up 0.9% at $5.77 in regular trade. Stablecoin issuers Paxos and Circle, Cboe’s digital asset exchange, and crypto exchanges Bitstamp and Gemini also suspended their partnerships with Silvergate.

☆ Crypto Firms Ditch Silvergate, a Favorite Bank Partner
▼ + stars: | 2023-03-03 | by ( Caitlin Ostroff | Charley Grant | ) www.wsj.com time to read: 1 min

A raft of crypto companies cut ties on Thursday with Silvergate Capital Corp., whose focus on the crypto industry was once its selling point but quickly became a liability. Crypto firms Coinbase Global Inc., Circle Internet Financial Ltd., Paxos Trust Co. and Galaxy Digital Holdings Ltd. all announced plans Thursday to stop banking with Silvergate. Late Wednesday, Silvergate said that it was at risk of being “less than well-capitalized” and was evaluating its ability to continue doing business. Its stock dropped 55% Thursday.

☆ Premarket stocks: What you need to know about this earnings season
▼ + stars: | 2023-03-03 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —About 99% of all S&P 500 companies have reported fourth quarter earnings and the results aren’t great. Companies listed in the S&P 500 index beat analysts’ earnings estimates by an average of just 1.3% last quarter. The market is “rewarding positive earnings surprises more than average and punishing negative earnings surprises much less than average for the fourth quarter,” reports FactSet. Inflation is (still) a big dealMore than 325 S&P 500 companies have cited the term “inflation” during their earnings calls for the fourth quarter. This marks the lowest number of S&P 500 companies using the “I”-word on their calls since the third quarter of 2021.

☆ Bitcoin, ether slide on Friday as investors weigh potential fallout from Silvergate woes
▼ + stars: | 2023-03-03 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +2 min

A pedestrian walks past signage for Ethereum, top, and Bitcoin outside the Hong Kong Digital Asset Exchange Ltd. digital currency trading store in Hong Kong, China, on Thursday, June 24, 2021. Bitcoin was last lower by more than 4% at $22,364.21, according to Coin Metrics. Cryptocurrency prices fell on Friday as investors weighed the latest financial woes at Silvergate Capital and assessed what a potential bankruptcy at the crypto bank could mean for the broader crypto industry. Bitcoin and ether prices remained flat throughout Thursday, while shares of Silvergate dropped 57%. "To start 2023, crypto markets enjoyed a solid rally to six-month highs following a slowdown in FTX-related contagion, but the Silvergate news has renewed concerns around liquidity and risk," Medalie added.

☆ Coinbase, Gemini and other big crypto names have rushed to ditch Silvergate after the bank warned of building troubles
▼ + stars: | 2023-03-03 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +4 min

Crypto companies are cutting ties with Silvergate, once the go-to bank for digital currenciesThis comes after the crypto bank flagged doubts about its survival. Coinbase, Paxos Trust, Circle Internet Financial and Galaxy Digital Holdings all said Thursday they plan to suspend banking with Silvergate, as did the Winklevoss twins' Gemini. The exodus of crypto exchanges, stablecoin issuers and trading desks came after Silvergate flagged doubts about its future in business. Shares have fallen almost 95% in the past 12 months, as more than a dozen of its crypto firm customers shut down, were fined or came under investigation. Silvergate used to be the go-to bank for the biggest names in crypto, operating a key payments network used for real-time transfers between the firms.

☆ Bitcoin falls to its lowest price in weeks as crypto markets tumble amid Silvergate troubles
▼ + stars: | 2023-03-03 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

The price of bitcoin hit a two-week low as the industry's crucial banking partner faces financial troubles. Silvergate has experienced a steep downtrend in deposits, along with a 95% plunge in share price over the past year. The price of bitcoin hit a two-week low early Friday and experienced its largest one-hour price drop since the blowup of bankrupt exchange FTX in November. Many large digital asset exchanges work with Silvergate for transactions between entities, and a dent in those relationships could impact industry liquidity. Silvergate was entangled in a number of ailing firms such as FTX, resulting in a massive decline in deposits at the bank amid broader crypto market contagion.

☆ FTX might not have been the only crypto exchange using customer money for other things
▼ + stars: | 2023-03-02 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

As if the universe knew that I hadn't written a crypto newsletter in some time, here we go: Binance, the world's largest crypto exchange, has been under some scrutiny this week. The world's largest crypto exchange reportedly transferred nearly $1.8 billion in stablecoin collateral to hedge funds, the report said. Any move by Binance to shuffle customer money around isn't exactly illegal, but the risks are apparent in the wake of the FTX disaster, part of which involved the exchange using customer money for making big bets via its affiliated trading arm. That account, Reuters reported, was used to send $400 million to a trading firm managed by Zhao. In other news:Traders work on the main trading floor of the New York Stock Exchange March 21, 2007.

☆ Silvergate Capital shares drop more than 50% after the crypto bank delays its annual report
▼ + stars: | 2023-03-02 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +2 min

Shares of Silvergate Capital plummeted Thursday after the bank delayed the filing of its annual 10-K report as it evaluates events that have happened since the end of 2022. The company, which provides banking services to crypto businesses, was last lower by 52%. JPMorgan downgraded Silvergate shares Thursday along with other Wall Street analysts. Silvergate is has been facing several challenges since the end of last year, following the blowup of crypto exchange FTX. The crypto services company said in a statement that has de minimis corporate exposure to Silvergate and that it has stopped accepting or initiating payments to or from Silvergate.

LONDON, March 1 (Reuters) - Binance's stablecoin, Binance USD, has seen around $6 billion of outflows following a U.S. regulatory crackdown on the company that issues the token, according to market tracker CoinGecko. Binance CEO Changpeng Zhao said that the regulator's decision meant the market cap of the token would decrease over time. On Wednesday, the value of all Binance USD was around $10.5 billion, down from $16.1 billion on Feb. 13, according to market tracker CoinGecko. The Financial Times reported on Wednesday that investors have pulled more than $6 billion out of the Binance-branded token in the past month, citing data from blockchain analytics firm Nansen. Analysts said the NYDFS move represented a setback in Binance's efforts to gain market share from larger stablecoins.

☆ Bitcoin, ether on track for a positive February despite mid-month drop and fading 2023 risk rally
▼ + stars: | 2023-02-28 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +2 min

Bitcoin and ether are on pace for a modest February win, even after suffering a big drop earlier in the month. Bitcoin had eked out a 0.2% gain for the month by 4:15 p.m. That led to a brief sell-off in crypto assets that took bitcoin and ether down about 6% and 8.5%, respectively, in the three-day period ended Feb. 10. In the U.S., however, investors are on Fed watch, said James Lavish, managing partner at the Bitcoin Opportunity Fund. "Bitcoin has been the tip of the spear for risk assets for a long time," he said.

The proposed deal may violate laws on the unregistered offer and sale of securities, the SEC said in a filing on Wednesday. It also cited news reports of U.S. investigations into the global Binance crypto exchange, of which Binance.US is a purportedly independent partner, that mean the deal could become "impossible to consummate." New York's top financial regulator and New York Attorney General Letitia James also objected to the deal in filings on Wednesday. The New York Department of Financial Services said that Voyager "illegally operated a virtual currency business within the state without a license." The U.S. Justice Department is investigating the global Binance exchange for possible money laundering and sanctions violations, Reuters reported in December.

☆ Stablecoins Attract Scrutiny in SEC’s Drive to Control Crypto
▼ + stars: | 2023-02-22 | by ( Dave Michaels | ) www.wsj.com time to read: 1 min

A stablecoins lawsuit might be difficult for the Securities and Exchange Commission to win because stablecoin users don’t expect profits from owning the tokens. Washington’s battle to rein in crypto has a new front: stablecoins. The Securities and Exchange Commission is investigating whether stablecoins, cryptocurrencies that maintain a price of $1, are among the products that were issued in violation of investor-protection laws. SEC enforcement lawyers have told Paxos Trust Co. that regulators plan to take enforcement action over its stablecoin, BUSD, although that decision isn’t final.

☆ Analysis: Stablecoin regulatory crackdown sends warning to industry
▼ + stars: | 2023-02-22 | by ( Hannah Lang | ) www.reuters.com time to read: +5 min

But usage is raising questions from regulators who have expressed concern about the disclosures stablecoin issuers provide, as well as the tokens' potential instability during periods of stress. While the crypto industry has criticized the SEC's broad industry crackdown, the move against Binance USD, the third-biggest stablecoin with about $16 billion in circulation, could lend some guidelines for which stablecoin activities may get scrutinized. SEC Chairman Gary Gensler has previously said he believes some stablecoins are in fact securities, which require registration and additional regulatory oversight. The New York Department of Financial Services also ordered Paxos last week to stop minting Binance USD. But the specific features of tokens like Binance USD have some stablecoin issuers keen to highlight their differences.

REUTERS/Benoit Tessier/File PhotoFeb 21 (Reuters) - The world of stablecoins is suddenly looking shaky. "There's way too much demand for dollar-based stablecoins for them to go away," said Alex Miller, CEO at bitcoin developer network Hiro. Market leader tether (USDT) has been a big beneficiary, adding $1.9 billion to its market capitalization to hit $70.3 billion since the news. It now commands 52.6% of the stablecoin market, up from just over 51%. Traders also use these tokens to hedge their positions, and hence dwindling market value is associated with falling liquidity and leverage in the broader crypto market.

☆ Paxos engaged in 'constructive discussions' with U.S. SEC over Binance stablecoin- internal email
▼ + stars: | 2023-02-21 | by ( ) www.reuters.com time to read: 1 min

Feb 21 (Reuters) - The firm behind Binance's stablecoin, Paxos Trust Company, is having constructive discussions with the U.S. Securities and Exchange Commission after the firm disclosed that the regulator told the company it should have registered the token as a security, according to an internal email from Paxos' chief executive officer. "We are engaged in constructive discussions with the SEC, and we look forward to continuing that dialogue in private," said Paxos CEO Charles Cascarilla in an email sent Saturday to Paxos employees. He added that if necessary, Paxos would defend its position that Binance USD is not a security through litigation. Reporting by Hannah Lang in WashingtonOur Standards: The Thomson Reuters Trust Principles.

☆ The SEC has a stablecoin firm in its sights — and it could shake up the whole $137 billion market
▼ + stars: | 2023-02-20 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +4 min

Paxos has been ordered by New York regulators to stop issuing the Binance USD (BUSD) stablecoin. The move will have major implications for the $137 billion market, experts told CNBC. Are stablecoins securities? Renato Mariotti partner, BCLPIf BUSD is deemed a security by the SEC then the regulator would have oversight over the stablecoin. "Absent a successful fight, it is most likely BUSD will no longer be sold into the U.S. or be available on U.S.-based digital asset exchanges," Lansing said.

☆ Bitcoin surges 11% despite U.S. crackdown, as crypto market gains $84 billion in value
▼ + stars: | 2023-02-16 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +1 min

Jakub Porzycki | Nurphoto | Getty ImagesCrypto markets rallied on Thursday, shrugging off a tougher regulatory stance from the U.S. government. The value of the entire cryptocurrency market rose more than $84.8 billion in the 24 hours before 3:39 a.m. Crypto markets were on edge earlier this week following increased regulatory scrutiny from U.S. authorities on digital currencies. On Monday, the New York State Department of Financial Services told Paxos to stop minting new Binance USD, or BUSD, stablecoins. A stablecoin is a type of cryptocurrency pegged to a real-world asset and some are backed by assets such as bonds or cash.

☆ Bitcoin hits six-month high as investors warm to risk
▼ + stars: | 2023-02-16 | by ( ) www.reuters.com time to read: +2 min

LONDON, Feb 16 (Reuters) - Bitcoin touched a six-month high on Thursday, swept higher with equities and other relatively risky assets as investors gained confidence in the economic outlook and dismissed concern about regulatory scrutiny of the sector. The world's largest cryptocurrency reached $24,895 on Thursday, its highest since August 2022, after jumping 9.5% on Wednesday. Global stocks rose on Thursday as economic data from around the world drove hopes the economy might face a softer landing than feared a few months ago, even as interest rates threaten to remain higher for longer than expected. "Bitcoin bolted past $24,000 for the first time in two weeks after surging more than 8% over the past 24 hours. Reporting by Alun John; editing by Barbara LewisOur Standards: The Thomson Reuters Trust Principles.

☆ Here are Thursday's biggest analyst calls: Apple, Tesla, Generac, Coinbase, Meta, Roku, Roblox & more
▼ + stars: | 2023-02-16 | by ( Michael Bloom | ) www.cnbc.com time to read: +7 min

Here are Thursday's biggest calls on Wall Street: Bernstein reiterates Tesla as underperform Bernstein said Tesla sharers remain overvalued. Loop reiterates Apple as buy Loop said it sees attractive iPhone revenue upside for Apple. Canaccord upgrades Generac to buy from hold Canaccord said it sees "storm clouds breaking" for shares of Generac. JPMorgan reiterates Roku as overweight JPMorgan said it's standing by shares of Roku after the company's earnings results on Wednesday. " Bernstein reiterates Meta as outperform Bernstein kept its outperform rating on the social media giant and says it likes the company's "clear cost takeout plan."

☆ The crypto comeback: Here's what's driving it, according to Bernstein
▼ + stars: | 2023-02-16 | by ( Hakyung Kim | ) www.cnbc.com time to read: +3 min

A flurry of factors have come together recently to spark a big comeback for crypto . Those gains come after a difficult 2022 for the crypto market. Bernstein analyst Gautam Chhugani said that recent regulatory actions may not be as bad as people think, helping push crypto prices upwards. Short covering occurs when a short seller buys back shares in order to close out an open short position — returning borrowed shares — in an attempt to limit losses. But there's more than just short covering — there's fresh buying going on which is forcing prices to squeeze up, the firm said.

☆ Binance Hires Gemini Executive as Chief Compliance Officer
▼ + stars: | 2023-02-14 | by ( Mengqi Sun | ) www.wsj.com time to read: +2 min

Binance said Noah Perlman has joined as its chief compliance officer from rival Gemini Trust Co., as the cryptocurrency exchange continues to beef up its legal and compliance team amid regulatory scrutiny. Mr. Perlman joined Binance last month after serving as Gemini’s chief operating officer for more than two years. He joined Gemini as its chief compliance officer in 2019. Mr. Perlman’s appointment ends a monthslong search for a compliance chief at Binance, which over the past year or so has been bolstering its compliance team head count. Binance Chief Executive Changpeng Zhao, known as CZ, said on Twitter in September that the exchange planned to hire a few hundred more compliance people.

☆ Ark Invest's Cathie Wood buys Coinbase shares for a second straight day
▼ + stars: | 2023-02-14 | by ( Yun Li | ) www.cnbc.com time to read: +1 min

Ark Invest's Cathie Wood continued to add to her Coinbase holding despite the increased regulatory crackdown on the crypto industry. Wood snapped up 102,281 shares of the crypto exchange for her flagship ARK Innovation ETF on Monday, and another 16,414 shares for ARK Next Generation Internet ETF . Wood also bought 139,105 shares of Coinbase for the Innovation ETF on Friday. COIN YTD mountain Coinbase Shares of Coinbase rebounded sharply in January with a 65% return, becoming one of ARKK's biggest winners for the month. Wood has been standing by her bold call on bitcoin even amid the fallout in the crypto industry.

☆ BUSD: US regulator orders Paxos to halt new issues of Binance-branded stablecoin
▼ + stars: | 2023-02-14 | by ( Michelle Toh | ) edition.cnn.com time to read: +4 min

Hong Kong CNN —New York’s top financial regulator has ordered a crypto company to stop minting a major stablecoin, widening a clampdown on the embattled digital assets sector. Paxos also said it would “end its relationship” with Binance, the world’s largest crypto exchange. It did not say why the regulator had ordered it to stop issuing BUSD. Last week, the US Securities and Exchange Commission said overseeing crypto assets was a key priority for 2023. According to crypto advocates, the growing global clampdown could undermine the ecosystem for digital assets.

☆ Crypto markets on edge as U.S. regulatory crackdown on industry intensifies
▼ + stars: | 2023-02-14 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +3 min

Paxos has been ordered by New York regulators to stop issuing the Binance USD (BUSD) stablecoin. On Monday, the New York State Department of Financial Services told Paxos to stop minting new Binance USD, or BUSD, stablecoins . Investors are digesting a number of major regulatory actions in the U.S., as authorities look to rein in the once free-wheeling cryptocurrency industry. Digital currency markets are on edge after a flurry of aggressive regulatory actions from U.S. authorities over the past few days. There is no official SEC action against Paxos currently.

☆ Crypto: Regulators are cracking down as FTX fallout casts a shadow over digital assets
▼ + stars: | 2023-02-14 | by ( Allison Morrow | ) edition.cnn.com time to read: +5 min

New York CNN —When FTX collapsed in November, it was a seismic event for the crypto industry. On Monday, New York regulators ordered blockchain firm Paxos to stop issuing BUSD, aka Binance USD, citing “several unresolved issues” related to Paxos’ oversight of its relationship with crypto exchange Binance. Investors typically buy them to store money and facilitate deals within the cryptocurrency infrastructure, making them a bedrock of the crypto ecosystem. “Regulation by enforcement is puzzling for crypto enthusiasts,” said Marcus Sotiriou, market analyst at digital asset broker GlobalBlock, in a note. In January, regulators warned US banks and other market participants about the risks of fraud, volatility, and shoddy risk management in the crypto world.

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