A first version of the documents highlights that Nexo and Celsius Network are two of the companies targeted by the NY Attorney’s Office. Two firms received a ceasefire order while three other requests for information.

New York Attorney General Letitia James has ordered digital currency lending platforms that are not properly registered in the state to stop every single activity

In a statement that arrived in October 18, the New York Attorney General (NYAG) ordered the immediate cease and desist of two firms offering crypto loans. The announcement also needs three other companies to bring information about their activities and products, including corporate ownership and handling of user deposits.

James said in the statement that Cryptocurrency platforms must comply with the law, just like everyone else, so the two cryptocurrency companies close and force three others to immediately respond to questions.

New York Joins Crypto-Lending Crackdown

The Office of the Attorney General (OAG) has catalogued cryptocurrency lending platforms as essentially interest accounts that offer investors a rate of return on their digital currencies, and these services fall into the category of values, according to the Martin Law of New York.

Passed in 1921, the Martin Act is a US anti-fraud law that gives the Attorney General the authority to investigate any company deemed to be trading securities in the state.

NYAG said that the virtual currency loan products in question in today’s stocks promise a fixed rate of return to investors and claim to offer those returns, among other things, by trading more of those virtual assets.

According to the statement, the firms would offer an unregistered securities service, incurring a federal violation.

Although the names of the companies were censored in the letters issued by the OAG, the news outlet The Block reported that an early version of the cease and desist letter retained the name Nexo Letter, while the request for information got labeled in the name of Celsius Letter. The names might add two of the largest crypto lending platforms in the United States of America.

The cease and desist letter issued to Nexo gives that firm, and the other unidentified entity, a period of ten days to stop each and every one of these activities and let the Attorney General know that the activity has already stopped.

Cryptocurrency Loans Under Scrutiny in the US

For its part, the letter to Celsius was more modest, giving the company until November 1 to bring information on its ownership structure, its investment strategy and its means of custody for crypto deposits. The other three firms that received letters from NYAG remain without identification.

Nexo also assured that it does not offer its loan product in New York and that it takes the task of blocking users from that location rooted on their Internet address.

The New York authority’s actions arrived at a time when several US regulators face a crackdown on crypto-lending companies. During this year, the cryptocurrency trading and lending platform BlockFi experienced a ceasefire order from the New Jersey Office of Securities.

By: Jenson Nuñez

The regulation of stablecoins would affect the way the stock market develops. Those cryptocurrencies can gain great prominence in the US commercial paper market.

Fitch Ratings recently warned of stablecoins, the growth of which may negatively impact the traditional securities market. The credit rating agency highlights that those tokens can reach a scale of systemic importance, involving new risks to the commercial paper market.

Public limited companies are in charge of issuing commercial paper, which they use for public offering. Those securities are a short-term capital raising instrument, which can fill the gap in the capital market.

It all depends on how the regulations that directly affect stablecoins evolve, according to Fitch Ratings. However, they highlight that the reserves that currency traders use to back their stablecoin can affect the markets in the short term.

Holdings of commercial paper with maturities of 91 days to 13 months fell from 10% in June to 2% in August. Actual holdings are unclear, even in the most transparent cases, and there is no detailed breakdown of assets.

According to Circle, the company that issues USD Coin (USDC), the US dollar does not fully support that stablecoin. Certificates of deposit, securities, debt obligations of companies and financial institutions, and bonds of companies and state agencies accompany the fiat currency.

Stablecoin Regulations Will Affect the Traditional Market

The regulatory approach towards stablecoins will directly affect how the stock market develops, according to Fitch Ratings. However, that will not happen in the short term, as the details and timeline for the regulation of the emerging market are not yet well-defined.

In the case of the European Union, they mentioned that there are new negotiations over stablecoins in Brussels. They said they should have cash reserves and low-risk, predominantly governmental, securities.

In the United States, the administration task force of President Joe Biden urges regulating the use of stablecoins. The Federal Reserve and Congress collaborated to publish a document for that purpose.

Fitch Ratings detailed regulations that force stablecoin issuers to hold more reserves in safe and highly liquid assets. They explained that these could reduce the allocations to commercial paper in that region. Likewise, they said that this would increase the demand for those crypto assets in the government market in the short term.

Stablecoins Could Become a Key Investor Group

In addition to the risks that stablecoins pose, Fitch Ratings discussed growth rates and reserve allocations of stablecoins. The benefits suggest that the tokens could become a key investor group in the US commercial paper market.

Tether (USDT) is a crucial example of a stablecoin since it had 49% of its reserves in certificates of deposit and commercial paper in late June. The credit rating agency highlighted that the market capitalization of that cryptocurrency has increased by 230% this year to reach USD 70,009 million.

Fitch Ratings mentioned the global stablecoin Diem, backed by Facebook, whose launch has not happened yet. The firm believes that this token could further stimulate the growth of the market value of the sector.

By Alexander Salazar

The price of Shiba Inu rose by 340% in a matter of days due to a tweet from Elon Musk. However, the restart of the bullish rally of Bitcoin could also cause the value of the cryptocurrency meme to skyrocket.

Shiba Inu (SHIB) has been one of the most prominent altcoins in October, as its value has risen by more than 300% in a matter of days. The renewal of the bullish rally of Bitcoin and its inclusion on cryptocurrency exchange WhiteBIT may have contributed to it.

Another positive factor that has notably influenced the price of the meme cryptocurrency is Elon Musk. The billionaire businessman caused the value to move higher by posting a photo of a Shiba Inu puppy on Twitter.

A few hours later, the price of SHIB started going up, reaching a 340% increase in a matter of days. The enthusiasm rekindled by the post from Musk has allowed that to happen.

A Short-Term Analysis Reveals that a Drop Is Coming

Shiba Inu is in the consolidation phase, and its level of volatility is not as high as in early October. That is positive for SHIB, as buyers can sell their earnings and take new positions after a 340% rally to the upside.

SHIB bulls have successfully defended the price support of Shiba Inu at USD 0.00002495. That allowed the value to break to the upside and conclude with the bearish channel under development. In other words, traders have already taken profits, and this is the time to buy again.

The green candlestick that breaks the bearish channel clearly shows the continuation of the bullish movement, exceeding EMAs of 20 and 50 periods. However, the closest resistance level is precisely at USD 0.00002987, for which investors need to be vigilant.

Another element that needs consideration is the oscillator that shows bullish strength when crossing above zero. In addition, the crossing of the candlesticks above the EMAs also confirms the abovementioned.

It is also possible to notice the rejection of the RSI that is about to enter oversold territories again. It is going above 50 points, which suggests that traders and investors are buying again.

The Evolution of the Price of SHIB in the Next Days

Investors should be vigilant as the price of Shiba Inu could reject resistance at USD 0.00002987 in the coming days. However, if the value of the meme cryptocurrency exceeds that level, the closest resistance will be at USD 0.00003218.

Furthermore, there is likely to be another general correction in the cryptocurrency market. The price of Bitcoin has been on the rise for several days, so profit-taking is essential for that trend to continue. For that reason, it is possible to say that there will also be a correction in the value of Shiba Inu in the short term.

SHIB is trading at around USD 0.000028 and has a market capitalization of approximately USD 13,937,615,819. On its part, Bitcoin reached a new all-time high of nearly USD 67,000 and its market capitalization rose above 1.2 trillion, according to CoinGecko.

By Alexander Salazar