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Wrapped Bitcoin flash crashes to $5K on Binance exchange

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Wrapped Bitcoin (WBTC) experienced a sudden and dramatic flash crash on Binance, plummeting from approximately $43,000 to as low as $5,000 in a matter of seconds. The incident, which occurred on Nov. 21, was reportedly caused by a single large sell order that overwhelmed the market’s liquidity. While WBTC’s price quickly recovered, the flash crash underscored vulnerabilities in trading platforms during periods of low liquidity or extreme market moves.

Binance issued a statement shortly after the event, attributing the crash to “market dynamics” and confirming that no technical issues or system errors were involved. The exchange also reassured users that its systems were functioning normally, but the event has reignited concerns about the risks of thin order books and automated trading systems on centralized exchanges.

The flash crash led to liquidations and confusion among traders, some of whom saw their positions wiped out during the brief price drop. Analysts have pointed to the lack of liquidity in WBTC trading pairs as a potential factor. Wrapped Bitcoin, an Ethereum-based token pegged to Bitcoin’s value, relies on market participants to maintain its price parity, making it susceptible to sudden volatility when large orders disrupt the balance.

This incident highlights the challenges faced by exchanges and token issuers in maintaining stable and efficient markets. It also serves as a reminder for traders to exercise caution, particularly with assets that have lower liquidity or are prone to sudden price swings. As the crypto market matures, ensuring robust liquidity and implementing safeguards against flash crashes will remain critical for protecting investor confidence.

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US lawmakers advance anti-CBDC bill

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U.S. lawmakers have voted to advance a bill aimed at blocking the Federal Reserve from issuing a central bank digital currency (CBDC), marking a major step in the political pushback against the development of a digital dollar.

The bill, which passed through the House Financial Services Committee, would prohibit the Fed from directly offering accounts or issuing a CBDC to individuals, citing concerns over surveillance, privacy, and government overreach.

Supporters of the legislation argue that a digital dollar could pose significant risks to civil liberties, enabling real-time tracking of consumer transactions and expanding federal control over personal finances. They view the bill as a safeguard against what they describe as a “surveillance-style” monetary system.

Opponents of the bill, however, argue that restricting CBDC development could hinder U.S. innovation and global competitiveness in the evolving digital financial landscape.

The legislation now moves closer to a potential floor vote in Congress. Its progress underscores growing ideological divisions over the future of money in the United States, with CBDCs emerging as a new front in the broader debate over digital governance, financial freedom, and the role of government in the digital age.

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Gemini to open Miami office after judge stays SEC case

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Crypto exchange Gemini has opened a new office in Miami, reinforcing its commitment to expanding operations despite pausing its plans for an initial public offering (IPO) amid a continuing legal battle with the U.S. Securities and Exchange Commission (SEC).

The Miami office signals the company’s long-term vision for growth in key U.S. markets, even as regulatory uncertainty clouds the broader crypto landscape. The expansion comes at a time when Gemini is facing heightened scrutiny from the SEC over its Earn program, which the regulator alleges involved unregistered securities.

While the IPO remains on hold, Gemini continues to strengthen its infrastructure and team, focusing on user growth, compliance, and regional outreach. The Miami hub is expected to play a strategic role in those efforts, leveraging the city’s growing status as a U.S. crypto hotspot.

Co-founders Cameron and Tyler Winklevoss remain vocal about the need for clear regulatory frameworks and have emphasized that Gemini will continue to fight for fair treatment while building responsibly in the U.S. and abroad.

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Coinbase Institutional files for XRP futures trading with CFTC

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Coinbase Institutional has officially filed with the U.S. Commodity Futures Trading Commission (CFTC) to offer XRP futures trading, marking a significant move toward expanding institutional access to Ripple’s native token.

The filing, submitted through Coinbase Derivatives, signals the exchange’s intent to list XRP futures contracts in a regulated environment. If approved, it would allow institutional investors to gain exposure to XRP through derivative products, a key step in broadening the token’s presence in traditional financial markets.

This development comes amid a gradually improving regulatory climate for XRP, following a partial legal victory for Ripple in its ongoing case with the U.S. Securities and Exchange Commission (SEC). The outcome gave XRP a degree of legal clarity, opening the door for exchanges and financial institutions to re-engage with the asset.

Coinbase’s push to expand its derivatives offerings also aligns with its strategy to build a more robust institutional platform. Approval from the CFTC would position the exchange to capitalize on growing demand for regulated crypto investment vehicles.

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