Bitcoin falls to $87,000 level as U.S. GDP grew much faster than expected in Q3: CNBC Crypto World

Market Overview - Bitcoin has fallen to the $87,000 level, with Ether dropping nearly 3% below $3,000 and XRP losing around 2.5% to $189, despite a positive economic report [2][3] - The US economy expanded at a 4.3% pace in Q3, surpassing the 3.2% estimate, initially causing stock investors to reconsider the likelihood of a Federal Reserve rate cut [3] Company Developments - Coinbase has agreed to acquire a clearing company to enhance its capabilities in prediction markets, although the terms of the acquisition were not disclosed [4] - Coinbase recently launched several new products aimed at becoming a comprehensive financial services provider, including prediction markets [5] Legislative Updates - A bipartisan draft bill, the PAR Act, has been introduced to simplify the tax process for digital assets, proposing a capital gains tax exemption for regulated US dollar stable coin transactions under $200 [6] - The bill also allows taxpayers to defer recognition of staking and mining rewards until after they are received, addressing the need for modernized tax regulations in the digital asset space [6][7] Industry Advocacy - Senator Cynthia Lumis, a key advocate for the crypto industry, announced her retirement, prompting expressions of gratitude from industry members for her support in advancing crypto legislation [7][8] - Lumis has played a significant role in pushing for the passage of the Genius Back Stable Coin Act and is working on a crypto market structure bill [9] Institutional Adoption Insights - Caroline Fam, former CFTC acting chair, has joined Moonpay as chief legal officer and chief administrative officer, focusing on institutional adoption of crypto and regulatory clarity [10][11] - Fam emphasizes the importance of legislative guardrails for the crypto industry, particularly ahead of the midterm elections, and highlights the momentum in regulatory efforts [11][15] - The collaboration between the SEC and CFTC is expected to deepen, creating a comprehensive regulatory framework for both crypto and traditional markets [20][22] Future Outlook - The year 2026 is anticipated to be pivotal for institutional adoption of digital assets, driven by regulatory clarity and the integration of crypto into existing financial frameworks [30][33] - The establishment of rules for tokenized financial instruments and the use of digital assets as collateral in derivatives trading are seen as key developments to attract institutional investors [31][32]