Breaking News: Major Developments in Crypto Market Today! | 2025
Breaking News: Major Developments in Crypto Market Today!
Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3, and crypto regulation. Today in crypto, the European Securities and Markets Authority (ESMA) has confirmed to Cointelegraph that the European Union’s Markets in Crypto-Assets Regulation (MiCA) does not explicitly ban non-compliant stablecoin custody and transfers. Additionally, the US Senate voted to kill the IRS’ DeFi broker rule, and more than $1 billion worth of derivatives were liquidated on March 4 due to fears of a trade war.
ESMA Clarifies MiCA Regulations
The European Securities and Markets Authority (ESMA) has stated that providing custody and transfer services for non-compliant stablecoins does not violate the new European cryptocurrency laws. This adds to the ongoing uncertainty around their classification and use. Despite removing the affected tokens for trading, Binance has announced it will support deposits and withdrawals of non-MiCA-compliant stablecoins after the delisting on March 31.
According to ESMA, a key regulatory body overseeing MiCA compliance in Europe, “Under MiCA, custody and transfer services do not in themselves constitute an ‘offering to the public’ or ‘seeking admission to trading’ of non-compliant asset-reference tokens or e-money tokens,” a spokesperson for the ESMA told Cointelegraph on March 4. Although the ESMA acknowledged that deposits and withdrawals of non-MiCA-compliant stablecoins are not prohibited, it stressed that European crypto asset services providers (CASPs) should “prioritize restricting services that facilitate the acquisition” of such assets, effective January 17, 2025.
US Senate Votes Against IRS DeFi Broker Rule
In a significant move, the US Senate on March 4 voted 70 to 27 to reject a rule that would require decentralized finance (DeFi) protocols to report to the Internal Revenue Service (IRS). This Biden-era rule aimed to expand existing IRS reporting requirements to include decentralized exchanges and require brokers to disclose gross proceeds from crypto sales, including information regarding taxpayers involved in the transactions. The resolution now moves to the House, where it will need to be passed before being sent to President Donald Trump.
The White House’s AI and crypto czar, David Sacks, has expressed that Trump is likely to support this decision. Eli Cohen, general counsel of the RWA tokenizing platform Centrifuge, stated that the rule never made “any sense and was unworkable in practice.”
Market Reactions and Liquidations
More than 87% of liquidations came from long positions after a volatile start to March that saw double-digit losses on March 4, erasing similarly large gains from only days earlier. On March 4, US President Donald Trump imposed 25% tariffs against Canada and Mexico, the United States’ largest trading partners, sending the S&P 500 stock index down nearly 2% in morning trading.
Bitcoin, after touching highs of around $93,000 on March 3, experienced a significant downturn. Cryptocurrencies such as Ether and Solana fell even further, dropping by around 12% and 20%, respectively. The drawdown was a bait-and-switch for traders who had turned optimistic after Trump hinted at plans on March 2 to create a US crypto reserve holding tokens ranging from BTC and ETH.
As the crypto market continues to evolve, staying informed about regulatory changes and market dynamics is crucial for investors and enthusiasts alike. For more detailed insights, visit the original article.