The CLARITY Act is inching closer to the finish line: Stablecoins won't earn interest just for holding them.
The model of 'buying stablecoins and just holding them for interest' will no longer be allowed, as it’s too similar to depositing money in a bank without facing the same level of regulation.
Users can still earn rewards if the stablecoins are actively used in real-world activities on the platform, like trading, payments, or participating in the ecosystem.
The main reason behind this is to protect the traditional banking system. If stablecoins could pay interest like deposits, they’d be in direct competition with banks but without the same stringent regulations.
Michael Saylor stated that Strategy is considering selling a portion of their Bitcoin to pay dividends to shareholders
- In the Q1 shareholder meeting, Saylor mentioned that the company might proactively sell $BTC to demonstrate its ability to pay dividends rather than waiting for market skepticism
- Strategy currently holds approximately 818.334 BTC with an average cost basis of around $75.5K/BTC and has an unrealized profit of about $5B
- The company just reported a net loss of approximately -$12.54B in Q1 and currently has a dividend obligation of around $1.5B each year
- CEO Phong Le stated that Strategy is ready to sell $BTC or restructure debt if it helps increase the value of #Bitcoin per share and benefits shareholders
- Saylor described Strategy's operating model as borrowing capital to buy #Bitcoin, waiting for $BTC to appreciate over time, then selling a portion to cover dividends and capital costs
- Strategy's long-term goal remains to end each quarter with a larger Bitcoin holding than the previous quarter
Tether is preparing to conduct a full financial audit for the first time with a Big Four, in order to prove that USD₮ is fully backed and to raise transparency standards in the stablecoin industry.
🔷 Tether has partnered with a Big Four (the four largest auditing firms in the world) to conduct a full independent financial audit for the first time, instead of just "attestation" (confirmation of figures) as before.
🔷 This could become the largest audit ever in the financial market, due to the scale and complexity of Tether (combining digital assets, traditional assets, and tokenization obligations).
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