CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Crypto news: Stablecoins in regulatory spotlight

By Daniela Ešnerová


Updated

Bitcoin (BTC) coin around chart depicting market moves
Indian government proposes outlawing launches of new private cryptos – Photo: Shutterstock

As the majority of the biggest cryptocurrencies continue to trade sideways and some altcoins keep soaring, crypto enthusiasts on social media are seeking the next token that will blow up.

The news in the crypto space has been dominated by opinions of different regulators and lawmakers on cryptocurrencies, especially on stablecoins – or digital tokens that are meant to be pegged one-to-one against currencies such as the US dollar or euro.

Yesterday, the US Senate Banking Committee wrote to several stablecoin's issuers, including Centre, Coinbase, Paxos, and TrustToken, seeking immediate information about how they are protecting consumers and investors from risk.

These issuers – including the one behind the biggest stable coin, tether (USDT), which is consistently in the top five digital currencies by market capitalisation, have until 3 December to respond.

BCH/USD

348.05 Price
-0.430% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

DOGE/USD

0.11 Price
-1.490% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

XRP/USD

0.48 Price
+5.160% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

ETH/USD

3,069.37 Price
-1.510% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

Last month, tether issuers were fined $41m (£30.5m) by the US Commodity Future Trading Commission for allegedly making untrue or misleading statements about USDT Tether reserves relating to years 2016–2019. Tether paid the fine but admitted no wrongdoing.

What is your sentiment on DOGE/USD?

0.1061486
Bullish
or
Bearish
Vote to see Traders sentiment!

Other crypto news:

  • Bank of America wrote a note yesterday urging regulation of stablecoins, given “their potential to become a viable payments method.”
  • The governor of the UK's central bank said he does not believe that stablecoins could evolve into safe and regulated payments. Speaking at a House of Lords’ Economic Affairs Committee on Tuesday, Governor of Bank of England, Andrew Bailey, said central banks digital currencies (CBDC) would be a better alternative than evolving towards “some world of (asset-) backed stablecoins which has money-like features which could be regulated”.
  • The government of India proposed a bill which would outlaw launch of new private cryptos but approve a CBDC of its own: an official digital currency to be issued by the Reserve Bank of India.

Quote of the day: Rule number 7 out of Unwritten Rules of Crypto

By Reddit poster by a nickname of Impossible-Ad7389

    "Rule 7: Never reply to DM's: Reddit, Telegram, Discord, I guarantee you 99% of them are all scams wanting to take your money. Don't fall for it."

    Round-up of coins by market capitalisation

    As of 10:30 UTC:

    • Bitcoin (BTC) added 1.11% and was trading at $56,949.22
    • Ethereum (ETH) was up 4.68% $4,318.62
    • Binance coin (BNB) grew 3.79% to $589.69

    Winners and losers:

    • Dogecoin (DOGE) lost 3.88% and 9.55% over the last 24 hours and seven days of trading respectively and are 
    • Avalanche (AVAX) with 15.18% increase over the last 24 hours is on its way to replace dogecoin as the 10th biggest cryptocurrency by market capiralisation

    Read more: BoE advisor: Britcoin et al competition would be ‘positive’

    Rate this article

    The difference between trading assets and CFDs
    The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
    You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
    CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
    CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
    Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

    Still looking for a broker you can trust?

    Join the 630,000+ traders worldwide that chose to trade with Capital.com

    1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading