What Happened in Crypto Market Today: Ethereum Drops & Regulations

The crypto market has experienced a decline of 1.82% over the past 24 hours, following a 6.23% drop for the week. This downturn comes as a result of profit-taking after recent gains, compounded by ongoing uncertainty surrounding Federal Reserve policies and Ethereum-driven liquidations.

The jittery mood of the market was enhanced by the failure of the Fed's decision on a rate cut to calm the market. Investors are now keenly monitoring critical economic information, such as the most recent PMI and jobless numbers, to get more indicators on the way the market is moving.

Ethereum (ETH) has played a significant role in the new markets shifts. The ETH was also having a huge fall and dropped under the level of $4,000 leading to a row of margin calls and liquidation of 1.5 billion. This occasion made more people worry about a more extensive market correction.

Perpetual futures volumes reduced by 31% and the funding rates became negative. Such indications show that traders have been cautious, as most of them are liquidating their positions as they expect more volatility.

Bitcoin (BTC) is currently hovering around the $111,000 mark, showing a slight decline. Ethereum has also experienced a decrease, trading near $4,000 after a 4% drop. Other major cryptocurrencies , such as Solana (SOL), XRP, and Binance Coin (BNB), are in a consolidation phase, as the markets grapples with broader macroeconomic uncertainties.

Australia Tightens Crypto Market Regulations, New Draft Legislation Released

Australia is intensifying its oversight of crypto service providers with new draft legislation that expands financial service laws to include digital asset businesses. Published on Thursday, the draft is intended to stricterly regulate the crypto exchanges and adds two new types of financial products: the so-called digital asset platforms and the so-called tokenized custody platforms. These organizations would now be required to operate on an Australian Financial Services License (AFSL).

This is one of the bigger plans to introduce more clarity and stability in the crypto market nowadays and the legislation is part of it. The assistant treasurer, Daniel Mulino emphasized the draft as a major aspect of the crypto roadmap of the government first announced earlier this year. Government is also seeking the inputs of industry stakeholders until October 24 to perfect the proposal and then issue its final form.

The industry has responded with majority acceptance to the move to regulate the crypto markets using the available financial services laws. Jonathon Miller, the managing director of Kraken Australia, stated that these steps will give more assurance to investors and institutions. He, however, advised that such regulation must not be a one-size-fits-all regulation; otherwise, smaller, innovative players in the market will be suffocated.

Uncertainty over CFTC Leadership Amid Trump's Vetting Process

In the meantime, there is confusion regarding the prospects of former CFTC commissioner Brian Quintenz to become the next chair of the Commodity Futures Trading Commission. Although Quintenz was the first candidate to be considered, other reports indicate that President Trump is currently looking at other possible candidates to fill the post.

Some of the individuals under vetting include. This phenomenon makes the future of the agency in the new management questionable.

Vitalik Buterin Supports Open-Source Health and Finance.

Recently, in a blog post , Ethereum co-founder Vitalik Buterin proposed an open-source infrastructure in areas of vital infrastructure, such as healthcare, finance, and governance. He cautioned that dependence on closed and proprietary systems would heighten the chances of monopolies, spying, and loss of trust.

Buterin used the example of the COVID-19 vaccine rollout because the closed systems had caused mistrust among the people. He demanded transparent and testable technologies that would offer more neurotic and authentic solutions on these crucial fronts.