Today in crypto, fiat-pegged stablecoins took a hit as DeFi platform Abracadabra took emergency action after its Magic Internet Money depegged 50%, adding to a wave of stablecoins to lose their peg this week, while US President Donald Trump postponed signing a housing bill that includes a ban on central bank digital currencies (CBDCs). Meanwhile, Binance reaffirmed its commitment to Europe after its bid for a crypto license in Greece was rejected.
Abracadabra takes emergency action as MIM stablecoin depeg worsens
Decentralized finance platform Abracadabra said Wednesday that it launched emergency measures after its crypto-collateralized stablecoin, Magic Internet Money (MIM), fell 50% below its $1 peg.
“We’re acutely aware of the MIM depeg and are taking emergency actions to remedy the situation,” the team said on Wednesday.
It said effective immediately, it will begin gradually “increasing interest rates across all Cauldrons, including deprecated markets, to encourage debt repayment and reduce the outstanding MIM supply.”
The MIM depeg is a stark reminder that even overcollateralized DeFi stablecoins can be fragile in thin-liquidity environments and bear markets, underscoring the persistent risks of crypto-backed money.
Trump cancels signing of Housing bill with CBDC ban
US President Donald Trump has postponed the signing of the 21st Century ROAD to Housing Act, a housing affordability bill that also included a ban on the Federal Reserve issuing or creating a central bank digital currency (CBDC) through the end of 2030. The measure carved out an exception for certain dollar-denominated stablecoins, allowing private, open, and permissionless digital currency models.
Trump said he would not sign the legislation until Congress passes the SAVE America Act, a Republican-backed voting bill that would require proof of US citizenship for voter registration. The housing package had broad bipartisan support and passed the Senate 85-5 before clearing the House. Even supporters of the bill, including Senate Banking Committee Chair Tim Scott and Senator Elizabeth Warren, appeared caught off guard by the delay.
The move raises questions about the future of other crypto-related legislation, including the CLARITY Act, which would reshape digital asset regulation in the US.
Binance eyes alternative EU licensing route if Greek bid fails: Report
Crypto exchange Binance reportedly plans to seek a different route to authorization in the European Union after its licensing application in Greece encountered a setback.
Speaking to Reuters, Gillian Lynch, Binance’s head of Europe and the United Kingdom, said the exchange is “not leaving Europe” and would pursue authorization in another EU jurisdiction if its application in Greece does not move forward.
Lynch said Binance contacted other regulators but submitted a formal application only in Greece. The exchange reportedly held talks with Ireland, Latvia and Greece but encountered resistance over its past money-laundering penalties, international structure and what officials viewed as a risk-taking culture.
Binance has days to secure authorization before the Markets in Crypto-Assets Regulation (MiCA) transitional period ends on July 1, a key deadline for crypto firms seeking to operate across the EU. The European Securities and Markets Authority (ESMA) said on Tuesday that crypto service providers that remain unauthorized by the deadline must take “immediate” steps to wind down their EU activities.
On June 16, Binance pushed back against a Reuters report that EU regulators were preparing to reject its MiCA application, saying Greece’s Hellenic Capital Market Commission had reviewed the application and considered it compliant, subject to further review by ESMA. The exchange said at the time that it expected the process to advance toward authorization.
