Crypto Three Things (7/13)

1) U.S. Treasury to collect public comments on Biden’s crypto order: The department sent an open invitation for anyone to discuss President Biden’s Executive Order, Ensuring Responsible Development of Digital Assets. Signed by the President in March, the proposed legislation seeks to draw together government agencies to establish a regulatory framework over crypto assets and introduce investor protections. Those looking to comment on the order will have until August 8th to respond.

Titan’s Takeaway:Tapping into the collective wisdom of the politic is an insightful way to envision the future of crypto regulations. We’re optimistic that lawmakers will uphold the potential for innovation through blockchain and digital assets when they set out to create a rulebook.

2) Multicoin Capital launches $430M fund for crypto startups: The crypto-native VC firm unveiled its third venture fund that will support the growth of Web3 and DeFi. Early-stage crypto projects could get funding between $500K to $25M. The investment firm expressed excitement about the many buying opportunities in a bear market and said valuations are more reasonable now that the froth has dissipated.

Titan’s Takeaway: The sizable funding confirms that the appetite for crypto among large-scale VCs has not waned. Instead, despite the depressed market, investment firms are using the opportunity to scoop up discounted crypto projects with promising returns.

3) ECB calls for urgent stablecoin regulations: The European Central Bank said stablecoin rules must be implemented as soon as possible to prevent any financial stability risks. While still limited in scope, the central bank said these risks might grow in the future to the point where a potential stablecoin collapse could spill into the traditional financial system.

Titan’s Takeaway:It’s understandable to see policymakers increase their scrutiny over this sector after the meltdown of the TerraUSD. Given that stablecoins are designed to maintain a steady value, we believe they should be held to high regulatory and transparency standards to eliminate any concerns.