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In the unpredictable wilderness of the crypto market, a new dollar-pegged stablecoin, GHO, issued by Aave, the biggest DeFi lender in the space, has emerged as a beacon of success. Within just 48 hours of its launch, GHO has achieved a market cap of $25 million, proving that even in the face of regulatory uncertainty, innovation in the crypto space is far from dead.
This success story comes at a time when the crypto market is under intense scrutiny. While still smarting from its court loss against Ripple, SEC chair Gary Gensler is asking for an additional $109 million to help rein in the "Wild West" of crypto. Gensler's request, if granted, would bring the SEC's enforcement budget up to a whopping $1.4 billion. The SEC chair is also asking for $393 million for technological costs, including data analysis and cybersecurity.
While the SEC is gearing up for a regulatory showdown, Aave's GHO is showing that there's still room for innovation and growth in the crypto market. The success of GHO is a testament to the resilience of the crypto industry and the continued demand for stablecoins.
Stablecoins like GHO offer a degree of stability in the often volatile crypto market, making them an attractive option for investors. The rapid rise of GHO's market cap shows that there's a strong appetite for such stablecoins, despite the regulatory challenges facing the crypto industry.
However, the success of GHO also raises important questions. How will regulators respond to the proliferation of stablecoins? Will the success of GHO encourage other crypto companies to launch their own stablecoins? And how will these developments shape the future of the crypto market?
Only time will tell. But for now, Aave's GHO remains a ghostly light in the crypto wilderness.
Elsewhere,
- Shake-up at Sequoia: One of the world’s most prominent venture capital firms, is undergoing significant changes. Longtime partner Michael Moritz is leaving the venture firm to focus on Sequoia Heritage, a wealth management business he helped start. Four other partners are also leaving the firm. Sequoia's reputation has taken a hit from its failed investment in FTX, has also seen the departure of several other partners, including those involved in its bets on cryptocurrency.
- South Korea Charts Future of CBDC: The South Korean central bank has published its 2022 Payment and Settlement Systems Report, outlining ambitious plans for financial technology in the country. The bank is continuing its preparations for the potential introduction of a CBDC, which includes investigating the use of smart contracts, offline payments with near-field communications, and cross-border payments.
- Societe Generale Wins French Crypto License: Societe Generale's cryptocurrency division, SG Forge, has become the first company to receive a license to offer crypto services in France from the country's financial regulator. SG Forge is licensed to provide buying and selling, exchange, and custody of digital assets.
- Nasdaq Pauses Crypto Custody Plans: Nasdaq is pausing its plans to release a crypto custody business, citing the shifting business and regulatory environment in the U.S. The exchange operator first revealed plans to develop the custody solution in September along with the formation of its crypto business, Nasdaq Digital Assets.
