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 announcement comes amid significant developments in the crypto landscape.

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 stablecoins in Europe.

Despite the removal 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 reflects the exchange’s commitment to providing services to its users while navigating the complex regulatory environment.

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 require approval before reaching President Donald Trump.

Eli Cohen, general counsel of the RWA tokenizing platform Centrifuge, expressed his relief, stating that the rule never made “any sense and was unworkable in practice.” This development is a win for the DeFi community, which has been advocating for clearer and more practical regulations.

Market Reactions and Liquidations

On March 4, the crypto market experienced significant volatility, leading to over $1 billion worth of derivatives being liquidated. More than 87% of these liquidations came from long positions, as traders faced double-digit losses that erased gains made just days earlier. The market turmoil was exacerbated by geopolitical tensions, particularly after US President Donald Trump imposed 25% tariffs against Canada and Mexico, the United States’ largest trading partners. This decision sent the S&P 500 stock index down nearly 2% in morning trading.

Bitcoin, which had touched highs of around $93,000 on March 3, saw a sharp decline, reflecting the broader market’s instability. Other cryptocurrencies, such as Ether and Solana, also faced significant drops, with losses of around 12% and 20%, respectively. This downturn has left many traders reeling as they navigate the unpredictable crypto landscape.

Looking Ahead: What’s Next for Crypto?

As the crypto market continues to evolve, stakeholders are closely monitoring regulatory developments and market trends. The ESMA’s clarification on MiCA regulations provides some reassurance, but the uncertainty surrounding stablecoins remains a concern. Meanwhile, the US Senate’s decision to reject the IRS DeFi broker rule signals a potential shift in regulatory attitudes towards decentralized finance.

Traders and investors alike are advised to stay informed about these developments, as they will undoubtedly impact the future of cryptocurrencies and blockchain technology. For more detailed insights, check out the original article.