Bitcoin has experienced a significant downturn this week after a prolonged period trading above the $90,000 mark. The cryptocurrency dropped by 12.6% within the first three days of this week, its worst three-day drop since the collapse of FTX.

Bank of America (BoA) CEO Brian Moynihan has signaled the financial giant is ready to enter the stablecoin space once U.S. lawmakers establish a clear regulatory framework for these digital assets.

Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, was recently informed that the U.S. Securities and Exchange Commission (SEC) was closing its investigation into it and would not be filing enforcement charges.

Top stories in the Crypto Roundup today:

• Bitcoin Sees Worst 3-Day Drop Since FTX Collapse
• Bank of America CEO Signals Readiness to Enter Stablecoin Market
• SEC Closes Investigation into Gemini Exchange as Founders Criticize Agency’s Damage 

Bitcoin Sees Worst 3-Day Drop Since FTX Collapse

Bitcoin has experienced a significant downturn this week after a prolonged period trading above the $90,000 mark. The cryptocurrency dropped by 12.6% within the first three days of this week, its worst three-day drop since the collapse of FTX.

The collapse, the worst since November 2022, came amid growing investor disappointment with the lack of the swift creation of a national bitcoin reserve by the Trump administration, and amid tightening fiat liquidity conditions.

Adding to the downward pressure, institutional appetite for both BTC and ETH waned. The lower demand pushes the CME futures market closer to backwardation, where spot prices are higher than futures prices.

Further exacerbating the problem were headwinds in traditional markets. Nasdaq, Wall Street’s tech-heavy index, came under pressure this week, contributing to a risk-averse environment.

Bank of America CEO Signals Readiness to Enter Stablecoin Market

Bank of America (BoA) CEO Brian Moynihan has signaled the financial giant is ready to enter the stablecoin space once U.S. lawmakers establish a clear regulatory framework for these digital assets.

Speaking at the Economic Club of Washington, D.C., Moynihan said that “if they make that legal, we will go into that business,” referring to stablecoins. He drew parallels between these tokens, pegged to the value of fiat currencies, and money market funds or traditional bank accounts.

The stablecoin market has over the years ballooned to an estimated $232 billion market capitalization, with Tether’s USDT and Circle’s USDC dominating the sector.

Regulatory efforts on the sector have been gaining momentum, with Senator Tim Scott, Chairman of the Senate Banking Committee, recently pledging to advance the Genius Act, specifically targeting stablecoin oversight.

SEC Closes Investigation into Gemini Exchange as Founders Criticize Agency’s Damage

Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, was recently informed that the U.S. Securities and Exchange Commission (SEC) was closing its investigation into it and would not be filing enforcement charges.

On social media, Gemini President Cameron Winklevoss said that the SEC dropping the case “does little to make up for the damage this agency has done to us, our industry, and America.”

“The SEC cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation,” Winklevoss wrote, adding that the regulator’s “behavior in aggregate towards other crypto companies and projects” has resulted in losses “orders of magnitude more and caused unquantifiable loss in economic growth for America.”

Winklevoss contended that without repercussions for the SEC and individual staff members involved in the investigation, a precedent would be set for future regulatory overreach.

State of the Crypto by Top Tier Exchange Volume

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