Major Developments in Crypto Markets 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. This revelation comes amid a backdrop of significant regulatory scrutiny and market volatility.

ESMA Clarifies MiCA Regulations

The ESMA has clarified that providing custody and transfer services for non-compliant stablecoins does not violate the new European cryptocurrency laws. A spokesperson for the ESMA stated, “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.” This statement is crucial as it adds to the ongoing uncertainty surrounding the classification and use of these tokens.

Despite the delisting of affected tokens for trading, Binance has announced it will continue to support deposits and withdrawals of non-MiCA-compliant stablecoins after the delisting on March 31. This decision highlights the complexities and challenges faced by crypto exchanges in navigating regulatory landscapes.

US Senate Votes Against IRS DeFi Broker Rule

In a significant move, the US Senate voted on March 4 to kill the IRS’ DeFi broker rule with a decisive 70 to 27 vote. This Biden-era rule aimed to expand existing IRS reporting requirements to include decentralized exchanges and mandate brokers to disclose gross proceeds from crypto sales, including taxpayer information involved in the transactions. The resolution now heads to the House, where it will need to be passed before reaching President Donald Trump.

Eli Cohen, general counsel of the RWA tokenizing platform Centrifuge, commented on the rule, stating that it never made “any sense and was unworkable in practice.” This sentiment reflects the broader concerns within the crypto community regarding the feasibility and implications of such regulations.

Market Volatility and Liquidations

On March 4, the crypto market experienced significant volatility, leading to more than $1 billion worth of derivatives being liquidated. Over 87% of these liquidations came from long positions, following a tumultuous start to March that saw double-digit losses on March 4, erasing substantial gains from only days earlier. Bitcoin, after reaching highs of around $93,000 on March 3, faced a sharp decline, reflecting the market’s sensitivity to external economic factors.

In addition to the crypto-specific developments, US President Donald Trump imposed 25% tariffs against Canada and Mexico, the United States’ largest trading partners, which contributed to a nearly 2% drop in the S&P 500 stock index during morning trading. This geopolitical tension has further exacerbated the already volatile crypto market.

Impact on Major Cryptocurrencies

As a result of these developments, major cryptocurrencies have seen significant price fluctuations. Bitcoin’s price has been particularly affected, with recent data indicating a downward trend. Other cryptocurrencies, such as Ether and Solana, have also experienced declines, dropping by approximately 12% and 20%, respectively. This market behavior illustrates the interconnectedness of traditional financial markets and the crypto ecosystem.

Traders who had turned optimistic after President Trump hinted at plans to create a US crypto reserve holding tokens ranging from BTC to ETH have found themselves facing a bait-and-switch scenario. The market’s reaction to these announcements underscores the volatility and unpredictability inherent in the crypto space.

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