Credit card giant Visa has outlined what it calls a “universal payments channel” that would facilitate transactions between stablecoins and central bank digital currencies (CBDCs) in a bid to create a digital currency equivalent to the existing international payments system.

U.S. Federal Reserve Chairman Jerome Powell has said he does not intend to ban cryptocurrencies, but noted that stablecoins need greater regulatory oversight. Powell’s comments came during a two-hour long House Financial Services Committee meeting.

A judge has dismissed about half of the claims in a class-action lawsuit that alleged Bitfinex, Bittrex, Poloniex, Tether and others manipulated cryptocurrency markets. The lawsuit was filed by a group of traders and trading firms in June 2020, alleging the firms used USDT to manipulate crypto markets.

Top stories in the Crypto Roundup today:

• Visa Proposes ‘Universal Payments Channel’ For Stablecoins
• Fed Chair Has ‘No Intention’ of Banning Crypto
• Judge Dismisses Claims Against Bitfinex and Tether
• Crypto Market Movers – DYDX, AXS, OMG

Visa Proposes ‘Universal Payments Channel’ For Stablecoins

Credit card giant Visa has outlined what it calls a “universal payments channel” that would facilitate transactions between stablecoins and central bank digital currencies (CBDCs) in a bid to create a digital currency equivalent to the existing international payments system.

Speaking to Decrypt, Visa’s product lead for CBDCs, Catherine Gu, likened the new payments channel to a “layer 2” solution similar to the one being developed on the Bitcoin blockchain, the Lightning Network.

Gu noted that Visa’s solution focuses on interoperability to make it easy to exchange one currency for another. To do this, it will use a smart contract known as “hashed timelock contract.” This smart contract is already widely used in the cryptocurrency space.

For the plan to work, Visa will have to work with companies and governments to create digital wallets compatible with the payments channel.

Fed Chair Has ‘No Intention’ of Banning Crypto

U.S. Federal Reserve Chairman Jerome Powell has said he does not intend to ban cryptocurrencies, but noted that stablecoins need greater regulatory oversight. Powell’s comments came during a two-hour long House Financial Services Committee meeting.

The meeting was for forum representatives who wanted to ask Treasury Secretary Janet Yellen and Powell about their responses to the pandemic, and featured several cryptocurrency-related questions. Rep. Ted Budd (R-N.C.), a longtime crypto proponent, asked Powell whether he intended to “ban or limit the use of cryptocurrencies.” Powell responded:

"[I have] no intention to ban them."

Powell then compared stablecoins to money market funds or bank deposits, but said they’re “to some extent outside the regulatory perimeter, and it’s appropriate that they be regulated.” When asked to define digital assets for tax-accounting purposes, Treasury Secretary Yellen said the IRS was in the process of issuing “detailed regulations” to answer that question.

Judge Dismisses Claims Against Bitfinex and Tether

A judge has dismissed about half of the claims in a class-action lawsuit that alleged Bitfinex, Bittrex, Poloniex, Tether and others manipulated cryptocurrency markets. The lawsuit was filed by a group of traders and trading firms in June 2020, alleging the firms used USDT to manipulate crypto markets.

The lawsuit sought “reasonable costs of suit, pre- and post-judgment interest, and reasonable attorneys’ fees” and a trial by jury. In a new order, Judge Katherine Polk Failla dismissed claims under the Racketeer Influenced and Corrupt Organizations Act, or RICO Act, which is aimed against organized crime.

 The exchanges are still facing several claims, as Failla decided the traders adequately alleged possible market manipulation, which serves as the catalyst for further monopoly claims.

The defendants must now file answers to the amended complaint by October 28. Both plaintiffs and defendants must file a joint status letter with a case management proposal by November 18.

Crypto Market Movers – DYDX, AXS, OMG

Several tokens are leading the charge in the last 7-day period. Some of these are well-known cryptocurrencies with more liquid trading pairs, so we’ll be focusing on these over low-cap cryptos that may have higher percentage changes.

dYdX (DYDX) – The recently launched token of leading decentralized exchange dYdX has seen its price surge over the last few days, greatly outperforming the rest of the market. Over the same period most tokens dropped to negative territory.

OMG Network (OMG) - OmiseGO is building a decentralized exchange, liquidity provider mechanism, clearinghouse messaging network, and asset-backed blockchain gateway. OmiseGO is not owned by any single one party.

Axie Infinity Shards (AXS) - Axie Infinity Shards are the governance token of the popular blockchain-based game Axie Infinity. The game was created by SkyMavis and allows players to earn income through non-fungible tokens (NFTs), by breeding, battling, and trading digital pets called Axies.

State of the Crypto by Top Tier Exchange Volume

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