15 hours ago
Ethereum's autochthonal token ether (ETH), is gaining crushed against bitcoin (BTC), arsenic the impending GENUIS Act is apt to ban yield-bearing stablecoins that committedness interest-like returns, according to Markus Thielen, laminitis of 10x Research.
The Binance-listed ether-bitcoin ratio, representing ether's BTC-denominated price, roseate implicit 5.96% to 0.02670 connected Tuesday, registering its champion show since May 13, according to information root TradingView.
The upswing marked a bullish solution to the multi-week scope play and suggests continued ether outperformance ahead. Ether's dollar-denominated terms roseate implicit 4%, topping $3,100 for the archetypal clip since February.
According to Markus Thielen, laminitis of 10x Research, the cardinal operator for ether's terms surge is seemingly the increasing anticipation that the GENUIS Act, oregon the U.S. stablecoin bill, volition pass, restricting U.S. stablecoin issuers from paying interest.
"That would perchance reenforce Ethereum's value wrong the integer plus ecosystem," Thielen said successful a lawsuit enactment shared with CoinDesk.
Thielen added that the GENUIS Act has enactment the spotlight connected Ethena's $5 cardinal synthetic dollar USDe, which achieves delta-hedging oregon currency and transportation arbitrage by shorting perpetual futures equivalent to the magnitude of ETH received from users arsenic collateral. That's however it generates output connected USDe.
The long-prevailing mentation is that the shorting cognition adds to bearish pressures successful the futures marketplace and caps basis, the spread betwixt futures and spot prices.
"Ethena presently represents astir 4% of Ethereum’s $26 cardinal unfastened interest, and by consistently selling futures, it has exerted downward unit connected ETH prices," Thielen said.
Ethena has already reached retired to the U.S. Securities and Exchange Commission (SEC) to question clarity connected synthetic dollars, specified arsenic the USDe. The squad reportedly argued that the synthetic dollar functions arsenic a outgo instrumentality alternatively than a information and falls extracurricular the scope of the GENUIS Act and the STABLE Act, which modulate outgo stablecoin issuers.
Ethena is headquartered successful Lisbon, Portugal, with caller dollar inflows chiefly coming from extracurricular the U.S. So, it remains to beryllium seen however it fits the evolving regulatory representation successful the U.S.
"If Ethena were to comply with the U.S. stablecoin bill, it could beryllium forced to halt buying Ethereum altogether. However, the marketplace whitethorn beryllium interpreting this dynamic differently—ENA-USDT continues to rally, supported by rising Ethereum backing rates," Thielen said.
The GENIUS Act, which got the Senate approval successful June with bipartisan support, is expected to caput for a level ballot successful the House by Thursday.
Read more: U.S. Senate Passes GENIUS Act to Regulate Stablecoins, Marking Crypto Industry Win
English (US) 