First Mover Americas: Crypto Money-Laundering Bill on the Table
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U.S. Sens. Elizabeth Warren (D-Mass.) and Roger Marshall (R-Kan.) have introduced a bill to crack down on money laundering and financing of terrorists using cryptocurrencies. If it becomes law, the Digital Asset Anti-Money Laundering Act would bring know-your-customer rules to crypto participants such as wallet providers and miners and prohibit financial institutions from transacting with digital-asset mixers, which are tools designed to obscure the origin of funds.
Cathie Wood’s ARK Invest continues to buy on Coinbase’s dip, adding $3.2 million of the crypto exchange’s shares to its portfolio. The investment firm now holds 5.8 million shares. This comes on top of two recent purchases, as the fund increases its holdings of the stock while the share price hits all-time lows. Year to date, the stock is down nearly 84%, underperforming bitcoin, which is down 61%. ARKK is down 64%.
PayPal is integrating its buy, sell and hold crypto services with the MetaMask wallet. The partnership between the payments firm and MetaMask developer ConsenSys is intended to enable users to select their PayPal accounts as a payment option to buy ether on the MetaMask app. MetaMask hopes the offering will help bring more users into the Web3 ecosystem at a time when the sector is looking for a way forward during the crypto winter.
Chart of the Day
- The chart shows correlations between the year-over-year change in the price of bitcoin and backward-looking inflation measures like the Consumer Price Index, Producer Price Index, forward-looking metrics like University of Michigan inflation expectations, the five-year break-even rate, the M2 money supply and S&P 500 and Case-Shiller housing index.
- The yellow areas show correlations between changes in bitcoin's price and forward and backward-looking inflation indicators and assets like gold and the S&P 500.
- Bitcoin closely tracks inflation expectations and appears to be negatively correlated to core CPI, real estate prices and M2 money-supply changes.
- "Bitcoin changes are leading changes in realized CPI inflation and appear to be more correlated to changes in inflation expectations," analysts at Deutsche Digital Assets wrote in a deep dive published early this month.
– Omkar Godbole