What happened in crypto today? Here’s a summary of significant events impacting Bitcoin price, blockchain technology, DeFi, NFTs, Web3, and crypto regulations.
In today’s crypto news, David Pakman, managing partner at CoinFund, indicated that a $1 trillion stablecoin supply combined with yield-bearing crypto exchange-traded funds (ETFs) could serve as the next major catalyst for the crypto market by 2025. Additionally, Elon Musk has sold his social media platform X to his AI startup, and two U.S. federal agencies have relaxed restrictions on companies involved in crypto-related activities, including derivatives.
$1 Trillion Stablecoin Supply Could Drive Next Crypto Rally
According to David Pakman from CoinFund, the global supply of stablecoins could reach $1 trillion by the end of 2025, potentially acting as a significant driver for the broader cryptocurrency market.
“We’re witnessing a surge in stablecoin adoption that is likely to escalate dramatically this year,” Pakman stated during Cointelegraph’s Chainreaction live show on X on March 27. “We could see the stablecoin market grow from $225 billion to $1 trillion within this calendar year.”
While this growth may seem modest compared to traditional financial markets, Pakman emphasized that it would represent a “meaningfully significant” shift for blockchain-based finance.
He also pointed out that the influx of capital into on-chain activities, coupled with increasing interest in ETFs, could further bolster decentralized finance (DeFi) initiatives:
“If ETFs are allowed to offer staking rewards or yield to holders this year, it could unlock substantial growth in DeFi activities.”
As of March 28, the total stablecoin supply reached an all-time high of over $208 billion across the five largest stablecoins, according to data from Glassnode.
“This is the major catalyst that’s been missing for over a decade: a significant movement of wealth on-chain that brings everyone else on,” Pakman added.
The stablecoin supply has recently surpassed $219 billion and continues to grow, indicating that the market is “likely still mid-cycle” rather than at the peak of a bull run, according to analysts at IntoTheBlock.
Elon Musk’s Sale of X to xAI Complicates Fraud Lawsuit
In a controversial move, billionaire entrepreneur Elon Musk has sold his social media platform X to his AI startup, xAI. This sale coincides with a U.S. judge rejecting Musk’s attempt to dismiss a lawsuit related to the platform.
The ownership transfer of X to xAI on March 28 has intensified the class-action lawsuit against Musk, which accuses him of defrauding former Twitter shareholders by delaying the disclosure of his initial investment in the platform. Adam Cochran, a partner at Cinneamhain Ventures, remarked that this development has made the lawsuit “a whole lot spicier.”
On the same day Musk announced that “xAI has acquired X in an all-stock transaction,” a U.S. judge reportedly dismissed Musk’s bid to dismiss the lawsuit. Cochran noted that this opens up Musk’s AI venture to greater exposure, making the stakes significantly higher.
Musk stated that the deal values xAI at $80 billion and X at $33 billion, factoring in $12 billion in debt from the original $45 billion valuation. He initially purchased X, formerly known as Twitter, for approximately $44 billion in April 2022.
U.S. Regulators Ease Crypto Restrictions for Banks and Derivatives
In a significant regulatory shift, the Federal Deposit Insurance Corporation (FDIC) announced on March 28 that institutions under its supervision, including banks, can now engage in crypto-related activities without prior approval. This announcement follows the Commodity Futures Trading Commission (CFTC) stating that digital asset derivatives will not be treated differently from other derivatives.
The FDIC’s letter rescinds a previous directive from the Biden administration that required institutions to notify the agency before engaging in crypto-related activities. According to the FDIC, crypto-related activities encompass a range of functions, including:
- Acting as crypto-asset custodians
- Maintaining stablecoin reserves
- Issuing crypto and other digital assets
- Serving as market makers or exchange agents
- Participating in blockchain and distributed ledger-based payment systems
While the FDIC encourages institutions to explore these opportunities, it also advises them to consider the associated risks, including market and liquidity risks, operational and cybersecurity risks, consumer protection requirements, and Anti-Money Laundering obligations.
