In the world of cryptocurrency, the USDC stablecoin’s market capitalization is approaching a record $80 billion, potentially driven by capital flight from the Middle East. Meanwhile, a U.S. federal appeals court has rejected Custodia Bank’s final legal challenge to the Federal Reserve’s authority in granting master accounts. Separately, the Ethereum Foundation has clarified its future role and priorities within the ecosystem.
USDC Market Cap Nears Record $80B Amid ‘Capital Flight’
The market capitalization of the USDC stablecoin is nearing a record high of approximately $80 billion. This surge in demand is occurring against the backdrop of turmoil in the Dubai real estate market, with one analyst suggesting it reflects investors moving funds out of traditional markets.
Data from CoinMarketCap indicates that USDC’s circulating supply has expanded to roughly $79.2 billion, surpassing its previous all-time high set in December. The stablecoin’s market cap has seen significant growth in recent weeks, rising from just over $70 billion in early February to $75 billion earlier this month.
Rami Al-Hashimi, a Dubai-based analyst, claimed on X that over-the-counter (OTC) desks in the region are struggling to meet the demand for USDC. This suggests a heightened interest in stablecoins as a potential haven for capital.
Federal Court Ends Custodia Bank’s Legal Bid for Master Account
A U.S. federal court has rejected Custodia Bank’s final attempt to challenge the Federal Reserve’s authority regarding master accounts. This decision effectively concludes the crypto-focused bank’s five-year legal battle for direct access to the central bank’s payment system.
The U.S. Court of Appeals for the Tenth Circuit stated in a filing that it would not hear Custodia’s final appeal on the matter, with a 7-3 vote against rehearing. Custodia had initially applied for a master account in October 2020, which would allow it to hold reserves directly at the Federal Reserve and access its payment rails for settling transactions without intermediaries.
Following the Fed’s rejection, Custodia argued that the Monetary Control Act mandates state-chartered banks’ access to Fed services. However, multiple courts have consistently ruled that the Fed retains discretion over granting master accounts. This setback for Custodia comes as Kraken recently became the first crypto platform to receive a master account from the Federal Reserve Bank of Kansas City.
Ethereum Foundation Outlines New Mandate for Its Role
The Ethereum Foundation has published a new document detailing its role and long-term priorities within the Ethereum ecosystem. This comes as the network faces ongoing discussions about decentralization and scaling.
The foundation intends to focus on safeguarding Ethereum’s core values, such as censorship resistance, privacy, and open-source development. It aims to avoid operating like a traditional tech company focused solely on growth metrics.
A key objective is to become less essential over time, implementing a “walkaway test” to ensure the Ethereum network can operate independently even if the foundation were to cease operations. This announcement follows recent discussions by Ethereum co-founder Vitalik Buterin regarding the network’s future, including concerns about over-reliance on layer-2 networks and the importance of maintaining decentralization.
Fonte: Cointelegraph
