MIM depegs 50%; Trump delays CBDC-ban bill; Binance seeks EU

Abracadabra launched emergency measures on Wednesday after its Magic Internet Money (MIM) stablecoin fell about 50% below the $1 peg. The protocol said it will gradually raise interest rates across all Cauldrons, including deprecated markets, to encourage borrowers to repay and reduce outstanding MIM. The team wrote, “We’re acutely aware of the MIM depeg and are taking emergency actions to remedy the situation,” calling the episode an acute liquidity event that affected even overcollateralized crypto-backed assets.

MIM is minted by locking tokenized collateral in lending pools known as Cauldrons. The depeg occurred amid wider volatility for fiat-pegged tokens, increasing pressure on protocol operators to manage borrower positions and shrink circulating MIM through higher rates and other market interventions.

In Washington, President Donald Trump postponed signing the 21st Century ROAD to Housing Act, a housing affordability bill that included a provision banning the Federal Reserve from creating or issuing a retail central bank digital currency through the end of 2030. The legislation carved out an exception for certain dollar-denominated private stablecoins that meet open and permissionless design criteria. The president said he will wait for Congress to pass the SAVE America Act, a voting measure requiring proof of U.S. citizenship for voter registration, before signing the housing bill. The housing package had cleared the House and passed the Senate 85-5. Lawmakers including Tim Scott and Elizabeth Warren expressed surprise at the delay.

Binance faces regulatory hurdles in the European Union after its licensing application in Greece stalled. Gillian Lynch, the exchange’s head of Europe and the U.K., said the firm is “not leaving Europe” and will seek authorization in another EU jurisdiction if the Greek process does not advance. Binance filed a formal application in Greece and engaged with regulators in Ireland and Latvia. European officials raised concerns related to the company’s past money-laundering penalties, its international corporate structure, and what regulators described as a risk-taking culture. Binance reported that euro-denominated trading pairs make up about 1% of its spot trading volume.

The Markets in Crypto-Assets Regulation transitional period ends on July 1. The European authority warned that crypto service providers without authorization by that date must take immediate steps to wind down EU activities. The housing bill provision would prevent a Federal Reserve retail CBDC through 2030 while allowing certain private stablecoins to operate under specified design principles. Abracadabra’s incident and the EU licensing deadline illustrate separate operational and regulatory challenges affecting crypto firms and decentralized finance protocols.