• Federal Reserve Vice Chair for Supervision, Michael Barr, is set to testify before lawmakers on Tuesday about the collapse of Silicon Valley Bank (SVB).
• SVB failed due to mismanagement and a sudden panic among depositors, with contagion from its collapse highlighting the need for banking system resilience.
• The FDIC approved systemic risk exceptions for the failures of SVB and Signature Bank due to a deposit run.

Contagion from SVB’s Collapse

The collapse of Silicon Valley Bank (SVB) has caused serious repercussions on the wider banking system, with the possibility of uninsured depositors being unable to access their funds causing concern among depositors about the safety and stability of US commercial banks. Federal Reserve Vice Chair for Supervision, Michael Barr, is set to testify before lawmakers on Tuesday in order to evaluate what happened and assess any contagion that may have occurred.

Mismanagement and Deposit Runs

According to Barr’s prepared testimony released on Monday, it was determined that SVB failed due to mismanagement and a sudden panic among depositors. Additionally, there were signs of distress at other financial institutions such as Signature Bank which also experienced a deposit run leading up to their failure. These events highlight the importance of maintaining strong and diverse banks in order to prevent similar situations from occurring again in future.

Fed Intervention Necessary

Due to the interconnectedness of the American financial system, it was ultimately necessary for the Fed to step in order approve systemic risk exceptions for both SVB and Signature Bank when they faced imminent failure. Furthermore, this incident has reiterated how important it is that Basel III endgame reforms are implemented in order enhance banking system resilience going forward.

Full Review Coming May 1st

A full review into what happened at SVB will not be available until May 1st which will include an assessment into any contagion caused by its collapse. This review should provide valuable insight into why these incidents occurred so that similar scenarios can be avoided going forward.

Conclusion: Enhancing Banking System Resilience Crucial

It is clear that FDIC guarantees all deposits but investors can still suffer losses if banks are not managed correctly or experience sudden runs like those seen with both SVB and Signature Banks recently. As such, enhancing banking system resilience through Basel III endgame reforms is crucial going forward if similar crises are going to be avoided in future.

Belgium to Introduce New Crypto Ad Regulations

Overview

• Belgium’s Financial Services and Markets Authority (FSMA) is set to introduce a new set of crypto ad regulations by May 17.
• Companies sponsoring crypto advertisements in Belgium must submit it to FSMA before any mass campaign.
• The current market research by FSMA showed that most investors in the country are in it for the money, and 80% are men.

Regulations on Crypto Advertising

Belgium’s Official Gazette recently published that companies sponsoring crypto advertisements must submit them to its financial regulator FSMA before any campaign — this means that adverts targeting at least 25,000 customers must be submitted to the regulator. Additionally, their ads need to be accurate and contain mandatory risk information.

Jean-Paul Servais‘ Statement

Jean-Paul Servais, the chairman of FSMA reportedly said: “To better protect consumers, the FSMA is stepping up the pace when it comes to supervision and financial education. Thanks to the new regulation, the FSMA will be able to check whether advertisements for virtual currencies are accurate and not misleading and whether the advertisements contain the compulsory warnings of risk.“

Recent Developments in Crypto Regulations

Belgium has become one of many European countries introducing new crypto ads regulations; others include UK who have also imposed restrictions on crypto ads. However, a former minister of Belgium Johan Van Overtveldt recently called for a total ban on cryptocurrencies amid turmoil in banking sector.

Conclusion

In conclusion, Belgium is introducing new crypto ad regulations which will help protect consumers from misleading information or risky investment opportunities that may arise from marketing campaigns related to cryptocurrency investments. It remains uncertain if these regulations will reduce investor interest or lead more people into investing into cryptocurrencies during times of economic uncertainty.

• S&P 500 has gone into negative territory YTD while Bitcoin is up 35% YTD.
• Chaos in bank stocks as some are halted for volatility, with Western Aliance sinking a record 76%.
• Charles Schwab (SCHW) was also halted for volatility, dropping 41% to the lowest on record.

S&P 500 Goes Negative YTD

The S&P 500 index has gone into negative territory Year-To-Date (YTD), currently standing at -0.19%. This compares to Bitcoin which has surged by 35%, continuing its bull run.

Bank Stocks Halted For Volatility

The chaos in bank stocks caused some to be halted due to high levels of volatility. Western Aliance recorded a record drop of 76%, and were subsequently halted due to this volatility. The KBW index fell 4% to its lowest since November 2020 and First Republic Bank saw a record 67% drop at the open. Charles Schwab (SCHW) was also halted, dropping 41% to the lowest on record.

Assets & Share Prices

Assets have been changing over time, with Trading View recording Bitcoin up 35% YTD and both Nasdaq and TLT up over 7%. Bank share prices have also been recorded by Trading View, with significant drops seen at the opening of some banks such as Western Aliance’s 76%, First Republic Bank’s 67%, and Charles Schwab’s 41%.

Analysis from CryptoSlate Research Analyst James Van Straten

James Van Straten, Research Analyst at CryptoSlate commented that Bitcoin is “the greatest invention of the 21st century”, seeing it as a freedom and technology maximalist instrument. He believes that the current surge in price is just the beginning of Bitcoin’s growth potential in 2021 and beyond.

Disclaimer

CryptoSlate takes no responsibility should anyone lose money trading cryptocurrencies or investing in any project mentioned within this article. All readers are advised to do their own due diligence before taking any action related to content within this article

• Bitcoin’s net emissions have decreased for the third month in a row, according to new data.
• This drop can be attributed to Marathon Digital, one of the largest public Bitcoin mining companies that recently announced they will deploy 133,000 miners powered by renewable energy sources.
• Research from Daniel Batten of CH4Capital shows that U.S. Bitcoin mining net emissions dropped from 35.3 megatons of CO2 in December 2022 to 32.04 megatons of CO2 in February 2023.

Bitcoin Mining’s Environmental Impact

The environmental impact of Bitcoin mining has been a major concern lately, especially in the U.S., as a number of large mining operations were established due to low energy prices and loose regulations. Research from Daniel Batten of CH4Capital shows that U.S. Bitcoin mining net emissions dropped from 35.3 megatons of CO2 in December 2022 to 32.04 megatons of CO2 in February 2023.

Marathon Digital Reduces Output

A huge part of this decrease can be attributed to Marathon Digital, one of the largest public Bitcoin mining companies in the U.S.. In December, Marathon announced that around 100,000 newly acquired ASIC miners would be hosted on wind and solar farms with all miners deployed across the US being powered by renewable energy sources; totaling 133,000 miners all together being powered by clean energy sources instead traditional methods such as fossil fuels or coal-based power plants.

Cambridge Index Estimation

Research looked at Bitcoin’s electricity consumption as estimated by the Cambridge Bitcoin Electricity Consumption Index (CBECI) and adjusted it to account for various energy sources miners use; however it should be noted that these calculations rely on Cambridge’s data which tend to overestimate electrical consumption but still show a downward trend remaining in place over time nonetheless

Renewable Energy Push

The push towards renewable energy for US based miners is likely going cause other large scale miners consider using solar and wind power as an alternative method for powering their operations as opposed to traditional methods such as fossil fuels or coal-based power plants; making this an overall positive step forward for reducing carbon footprint associated with bitcoin production worldwide

Conclusion

Overall this research shows us how much progress has been made when it comes to reducing bitcoin’s environmental impact through more sustainable practices such as utilizing green energy sources instead traditional ones; and making sure we are taking steps towards preserving our planet while also advancing technologically at a rapid rate without sacrificing our environment for short term gains