The SEC is under fire from Better Markets for sidelining public rulemaking in crypto oversight, raising alarms over transparency failures and investor risks. SEC Accused of Undermining Public Accountability With Informal Crypto Policies Policy advocacy group Better Markets, a nonprofit organization focused on financial market reform and public interest protection, submitted a comment letter to
Bitcoin.com 2025-06-13 06:30
BitcoinWorld Coinbase Research: Unlocking a Potential Bitcoin Rally in 2025 Are you wondering what the future holds for Bitcoin? A new report from Coinbase Research offers a compelling glimpse into what could drive the next major move for the world’s leading cryptocurrency. They’re setting their sights on the second half of 2025, predicting a significant Bitcoin rally fueled by a confluence of powerful economic and regulatory forces in the United States. What is Driving Coinbase Research’s Optimism for Bitcoin? The core of the Coinbase Research report points to several key factors converging in late 2025 that could create a highly favorable environment for Bitcoin. It’s not just one thing, but a combination of macro-economic shifts and structural improvements within the crypto landscape. According to their analysis, the primary catalysts include: Improved U.S. Economic Growth: A strengthening economy often correlates with increased investor confidence and willingness to allocate capital to riskier assets like cryptocurrencies. Expected Federal Reserve Rate Cuts: Lower interest rates typically make traditional savings less attractive and can push investors towards assets with higher growth potential. This can increase liquidity in the market, some of which may flow into Bitcoin. Progress on U.S. Crypto Regulation: Clarity from lawmakers removes uncertainty, potentially paving the way for broader institutional and corporate adoption. These elements, particularly the anticipated progress on US crypto regulation , are seen as significant tailwinds that could propel Bitcoin forward. How Will US Economic Growth Fuel the Crypto Market Outlook? A robust U.S. economy generally means higher employment, increased consumer spending, and stronger corporate profits. This environment often leads to a ‘risk-on’ sentiment among investors. When people feel more secure financially and see potential for growth, they are more likely to invest in assets beyond traditional stocks and bonds. Bitcoin, having matured significantly since its early days, is increasingly viewed by some as a digital store of value and a potential hedge against inflation, making it an attractive option in a growing economy. Furthermore, economic growth can boost the balance sheets of corporations and institutions, freeing up capital that could be allocated to new asset classes, including digital assets, further enhancing the positive crypto market outlook . The Impact of Fed Rate Cuts on Bitcoin Price Prediction Interest rates set by the Federal Reserve play a crucial role in the broader financial markets. When the Fed raises rates, it increases the cost of borrowing and can slow down the economy, often making safer assets like bonds more appealing relative to risk assets like stocks or cryptocurrencies. Conversely, when the Fed cuts rates, it lowers borrowing costs, stimulates economic activity, and can decrease the appeal of lower-yielding safe assets. This can lead investors to seek higher returns elsewhere, potentially driving capital into assets like Bitcoin. The expectation of rate cuts in 2025, as highlighted by Coinbase Research , is therefore a significant factor in their optimistic Bitcoin price prediction . Is US Crypto Regulation Finally Bringing Clarity? One of the biggest hurdles for mainstream adoption of cryptocurrencies, especially among large institutions, has been the lack of clear and consistent regulation in the United States. Uncertainty creates risk, making many traditional financial players hesitant to fully engage with the crypto space. Reports mentioning potential progress on legislation, such as the GENIUS and CLARITY Acts (though specifics and timelines can be complex and subject to change), signal a potential shift towards a more defined regulatory framework. Regulatory clarity can: Benefit of Regulatory Clarity Impact on Crypto Increased Investor Confidence Attracts both retail and institutional investors Reduced Legal Uncertainty Encourages businesses to build and operate in the crypto space Easier Integration with Traditional Finance Facilitates the creation of regulated products and services (like ETFs) Improved Market Integrity Helps combat illicit activity and scams, making the market safer This progress on US crypto regulation is a critical piece of the puzzle for the long-term growth and stability of the market, and a key reason behind Coinbase’s positive forecast. Beyond Macro: Corporate Adoption and Structural Tailwinds While macroeconomics and regulation are significant external drivers, the Coinbase Research report also points to structural shifts within the industry itself. There’s a growing trend of corporations exploring and adopting blockchain technology and digital assets for various use cases, from treasury management to supply chain finance. This increasing corporate adoption signals a maturing ecosystem and creates consistent demand. Furthermore, infrastructure for institutional participation (custody solutions, trading platforms, etc.) continues to improve, making it easier and safer for large players to enter the market. These underlying trends contribute to the positive long-term crypto market outlook . Bitcoin vs. Altcoins: Who Benefits Most? The report, as noted by CoinDesk, draws a distinction between Bitcoin and the broader altcoin market in terms of how they might react to these tailwinds. While Bitcoin is expected to benefit significantly from the macro-economic improvements and regulatory clarity due to its status as the largest, most recognized, and increasingly institutionally-accepted digital asset, altcoins may face a different path. Altcoins often require specific catalysts for major price movements, such as: Successful protocol upgrades (like Ethereum’s transitions) Specific ETF approvals for that asset Major developments or adoption within their specific ecosystem Significant technological breakthroughs Without these individual drivers, many altcoins might lag behind Bitcoin, which is seen as more directly benefiting from the broad inflow of capital driven by macro and regulatory shifts. This highlights a potential divergence in performance within the crypto market. What Are the Potential Challenges or Risks? While the outlook presented by Coinbase Research is optimistic, it’s crucial to consider potential headwinds. The path to 2025 is not without risks. These could include: Unexpected economic downturns or recessions Delays or setbacks in passing US crypto regulation Geopolitical events that disrupt global markets Internal crypto market issues, such as major exchange failures or security breaches Changes in the Federal Reserve’s monetary policy plans Investors should always be aware that the crypto market is inherently volatile and subject to rapid changes based on a wide range of factors. Actionable Insights: Navigating the Potential Bitcoin Rally Based on the Coinbase Research perspective, what might this mean for those interested in the market? It suggests that the period leading up to and including the second half of 2025 could be particularly interesting for Bitcoin. While this is not financial advice, understanding the potential drivers – U.S. economic health, Fed policy, and regulatory progress – is key. For those considering their strategy, it might involve: Staying informed about economic indicators and Fed announcements. Monitoring legislative developments regarding US crypto regulation . Considering Bitcoin’s position within a diversified portfolio, given its potential drivers differ somewhat from many altcoins. Recognizing that market timing is difficult and forecasts are subject to change. The Bitcoin price prediction offered by Coinbase Research is a forecast based on current information and trends, providing a framework for understanding potential future market movements. Conclusion: A Bullish Horizon, But Stay Informed The report from Coinbase Research paints a cautiously optimistic picture for Bitcoin, particularly targeting a potential rally in the latter half of 2025. The convergence of anticipated U.S. economic growth, expected Fed rate cuts easing liquidity, and crucial progress on US crypto regulation creates a compelling narrative for increased capital inflow into Bitcoin. While altcoins may require their own specific catalysts, Bitcoin appears well-positioned to benefit from these broader macro and structural tailwinds. As with any forecast in the dynamic world of cryptocurrencies, staying informed about these key drivers and potential risks is essential for navigating the market. To learn more about the latest Bitcoin and crypto market outlook trends, explore our articles on key developments shaping Bitcoin price action and regulation. This post Coinbase Research: Unlocking a Potential Bitcoin Rally in 2025 first appeared on BitcoinWorld and is written by Editorial Team
Bitcoin World 2025-06-13 06:20
BitcoinWorld Trump Crypto Plan: Unleashing America’s Future in Digital Assets The world of digital assets is constantly evolving, and the conversation around its future is heating up, especially concerning how governments plan to handle this burgeoning technology. For those invested in or simply curious about cryptocurrencies, recent statements from prominent political figures carry significant weight. A notable development involves former U.S. President Donald Trump and his remarks regarding the future of Trump crypto policy. What Did Trump Say About Trump Crypto? During the Coinbase State of Crypto Summit, as reported by Bitcoin Magazine on X, Donald Trump made a noteworthy declaration. He indicated that efforts would be directed towards establishing regulatory frameworks for the crypto market. The key takeaway from his statement was the emphasis on creating frameworks that are both clear and simple . This pledge is significant because the current regulatory environment in the United States is often perceived as fragmented and complex. Different agencies hold varying views and jurisdictions over different aspects of the crypto space, leading to uncertainty for businesses and investors alike. Trump’s stated goal is to simplify this landscape. His motivation, as articulated at the summit, is ambitious: to help America secure a dominant position in the future of Bitcoin and the broader cryptocurrency ecosystem. This suggests a strategic view where clear regulation is not seen as a hindrance, but rather as a tool to foster growth and innovation within the U.S., positioning it as a global leader in the digital asset space. Why Does Crypto Regulation Matter Now? The call for crypto regulation is not new, but it has gained increasing urgency. The cryptocurrency market has grown exponentially, attracting millions of participants and trillions of dollars in value. With this growth comes a greater need for structure and oversight to address various concerns: Investor Protection: Clear rules can help safeguard individuals from fraud, scams, and market manipulation. Market Integrity: Regulation can establish standards for exchanges and platforms, promoting fair and transparent trading. Financial Stability: As crypto becomes more interconnected with traditional finance, regulators are keen to understand and mitigate potential systemic risks. Innovation and Adoption: Ironically, clear rules can foster innovation by providing legal certainty for businesses, encouraging investment and development within the sector. Combating Illicit Activity: Regulation is crucial for preventing the use of cryptocurrencies for money laundering and other illegal purposes. The lack of a unified approach in the U.S. has led some companies to consider or move operations overseas, seeking clearer guidelines. This is the context in which Trump’s pledge for ‘clear and simple’ frameworks resonates with many in the industry. How Can US Crypto Policy Foster Dominance? The idea that US crypto policy can be a catalyst for global dominance might seem counterintuitive to those who view regulation purely as restrictive. However, a well-designed regulatory framework can provide several advantages: Attracting Capital: Institutional investors and large corporations often require regulatory clarity before committing significant capital to the crypto space. Clear rules can unlock vast pools of investment. Encouraging Talent and Businesses: Startups and established tech companies are more likely to build and operate in a jurisdiction where the rules of engagement are clear and predictable. Driving Innovation: Certainty allows innovators to focus on building new products and services rather than navigating legal ambiguities. Establishing Global Standards: By developing effective frameworks, the U.S. can influence how other countries approach crypto regulation, setting international benchmarks. Consumer Confidence: Increased trust and confidence among the general public, knowing there are safeguards in place, can accelerate mainstream adoption. Trump’s vision appears to be centered on leveraging these potential benefits. By providing a predictable legal and operational environment, the U.S. could become the preferred hub for crypto innovation, investment, and talent, thereby achieving a dominant position. What are the Challenges in Crafting Bitcoin Regulation? While the goal of clear and simple Bitcoin regulation (and crypto regulation generally) is widely supported by the industry, the path to achieving it is fraught with challenges. Crafting effective rules for a rapidly evolving, decentralized technology is inherently complex. Defining Assets: A fundamental challenge is classifying various digital assets. Are they securities, commodities, currencies, or something else entirely? Different classifications fall under the purview of different regulators (like the SEC or CFTC), leading to jurisdictional battles. Balancing Innovation and Protection: Regulators must find a delicate balance between protecting consumers and investors without stifling the very innovation that makes the technology promising. Overly strict rules could drive activity underground or overseas. Technological Complexity: Understanding the nuances of blockchain technology, decentralized finance (DeFi), NFTs, and other emerging areas requires significant expertise from policymakers and regulators. Political Divisions: There are differing views on crypto regulation within the U.S. government, often along partisan lines, making it difficult to pass comprehensive legislation. Global Coordination: Crypto is a global phenomenon. U.S. regulation needs to consider international implications and ideally coordinate with other major economies to prevent regulatory arbitrage. Overcoming these hurdles requires collaboration between policymakers, regulators, and industry experts. The ‘simple’ aspect of Trump’s pledge is particularly challenging given the technical and legal complexities involved. Navigating the Future: Insights for the Crypto Market Frameworks The announcement from the Coinbase summit signals a potential shift in the political discourse around crypto, at least from one major political figure. For participants in the crypto market frameworks are a critical factor influencing future growth and stability. Key Takeaways and Insights: Political Attention is Growing: The fact that a former President is speaking about crypto regulation at a major industry event highlights the increasing political relevance of the sector. This suggests that crypto policy will likely be a topic in future elections and legislative discussions. Industry Advocacy is Impactful: Events like the Coinbase summit provide platforms for industry leaders to engage directly with policymakers and candidates, influencing their understanding and stance on crypto. Clarity is the Core Demand: Regardless of the specific rules, the industry’s primary request is for clarity and predictability. This enables long-term planning, investment, and growth. Dominance as a Policy Goal: Framing crypto regulation as a means to achieve U.S. dominance could resonate with a broader political audience, potentially building consensus for action. The Devil is in the Details: While the pledge for ‘clear and simple’ frameworks is positive on the surface, the actual impact will depend entirely on the specifics of any proposed or enacted legislation. For investors and businesses, staying informed about legislative proposals, regulatory actions from agencies like the SEC and CFTC, and the ongoing political debate will be crucial. The path to comprehensive, clear, and simple U.S. crypto regulation is likely to be a long and complex one, but Trump’s recent comments indicate that it remains a significant point of discussion at the highest levels. Summary: A Pledge for Clarity in the Digital Frontier Donald Trump’s recent statement at the Coinbase State of Crypto Summit marks a significant moment in the ongoing conversation about how the United States will regulate digital assets. By pledging to work towards clear and simple regulatory frameworks, he has aligned himself with a key demand of the crypto industry. The stated goal is ambitious: to leverage regulation not as a barrier, but as a pathway for America to dominate the future of Bitcoin and the broader crypto market. While the challenges of crafting such frameworks are substantial, involving complex technical, legal, and political hurdles, the explicit mention of simplicity and global dominance as objectives highlights a potential strategic shift. The coming months and years will reveal whether this pledge translates into concrete policy that provides the certainty the industry craves, ultimately shaping America’s role in the global digital economy. To learn more about the latest US crypto policy trends, explore our article on key developments shaping the crypto market’s future. This post Trump Crypto Plan: Unleashing America’s Future in Digital Assets first appeared on BitcoinWorld and is written by Editorial Team
Bitcoin World 2025-06-13 05:40
Global financial stability faces a pivotal moment as crypto’s deepening ties with traditional finance drive urgent calls for regulatory overhaul. FSB Chair Warns of Crypto’s Systemic Risk, Demands Swift Global Action Financial Stability Board (FSB) Chair Klaas Knot sounded a warning on the expanding systemic implications of crypto assets during a keynote address at a
Bitcoin.com 2025-06-13 04:30
The post U.S. SEC Postpones Verdict on Dogecoin, Hedera, Avalanche Spot ETFs appeared first on Coinpedia Fintech News The United States Securities and Exchange Commission (SEC) has continued postponing decision-making on spot crypto ETFs. In the past 24 hours, the SEC delayed the decision to either approve or deny listing and trading of shares of Grayscale Hedera Trust (HBAR). The agency also made a similar decision on VanEck Avalanche ETF and Bitwise Dogecoin ETF. According to the respective filing, the agency will be instituting proceedings to determine whether the proposed rule change should be approved or disapproved. In the next 21 days, the SEC will be accepting written reviews from the public to determine whether the proposed rule changes meet all the regulatory requirements. Additionally, the agency has given any individual seeking to file a rebuttal upto 35 days. When Will the SEC Approve More Crypto Spot ETFs According to market data from Polymarket, the chances that the U.S. SEC gets to approve several crypto ETFs before the end of this year remains high. Moreover, the Donald Trump administration has made deliberate efforts to provide clear crypto regulations and enable the mainstream adoption of digital assets by institutional assets. Earlier this week, Eric Balchunas, a senior analyst at Bloomberg, predicted that a potential altcoin ETF summer is on the horizon. Balchunas highlighted that Solana (SOL) will likely lead in spot ETF approvals. Furthermore, the SEC has been engaging the fund managers seeking to offer spot SOL ETFs in a similar manner to last year’s spot Ether ETF issuers. Market Impact The continued delays by the SEC on spot crypto ETFs have frustrated investors waiting for the much-anticipated altcoin summer in 2025. Furthermore, the wider crypto market cap dropped over 5 percent to hover about $3.44 trillion at the time of this writing. As a result, more than $642 million was liquidated from the crypto leveraged market, with the majority involving long traders.
coinpedia 2025-06-13 01:58
The post Ripple vs SEC Update: Mutual Request to End Injunction and Release $125M Penalty appeared first on Coinpedia Fintech News The United States Securities and Exchange Commission (SEC) and Ripple Labs filed another motion to U.S. District Court Judge Analisa Toress requesting the dissolution of the existing injunction. According to the court filing dated June 12, 2025, both parties requested the court to order a release of the $125 million penalty from the escrow. The joint motion requested the court to distribute $50 million to the U.S. SEC as a settlement. The filing suggested that the remaining funds in the escrow be directed to Ripple. Last month, the court denied a joint motion by Ripple and the SEC due to lack of supporting evidence. The filing argues that 'exceptional circumstances' — including a settlement, the SEC’s shift in crypto policy, and a desire to avoid further litigation — justify modifying Judge Torres’s final judgment. This follows her May decision, where she denied a similar request for… https://t.co/2pPQBmZFAE — Eleanor Terrett (@EleanorTerrett) June 12, 2025 Impact of Ripple vs SEC Joint Motion on XRP The recent joint motion between Ripple and the SEC did not have an immediate positive impact on XRP price . The large-cap altcoin, with a fully diluted valuation of about $218 billion and a 24 hour average traded volume of around $2.3 billion, had dropped 4 percent to trade about $2.18 on Thursday, during the late North American trading session. In the daily timeframe, XRP price has been forming a potential inverse head and shoulder (H&S) pattern after an impressive bullish breakout during the fourth quarter 2024. With XRP price having consolidated for the first half of 2025, several indicators, including the daily MACD , signal an imminent bullish sentiment in the second half of the year. However, a consistent close below the established support level around $2 will signal more pain for the XRP holders in the subsequent months.
coinpedia 2025-06-13 00:49
BitcoinWorld Systemic Risk: FSB Chair Issues Dire Warning on Crypto’s Growing Threat Are the lines between the world of crypto and traditional finance blurring faster than we think? According to a significant warning from a top global financial regulator, the answer is a resounding ‘yes,’ and it could spell trouble for the entire system. The increasing interconnectedness between the crypto market risk and the broader financial system is now approaching a critical threshold, according to the Chair of the Financial Stability Board (FSB). What Did the Financial Stability Board Chair Say? Klaas Knot, who heads the Financial Stability Board (an international body that monitors and makes recommendations about the global financial system), recently delivered a stark message during a speech in Madrid on June 12. His core concern? The growing links between the seemingly separate worlds of digital assets and conventional banking and markets. He highlighted that these connections are becoming so significant that they could soon pose a systemic risk – a risk that could potentially destabilize the entire financial system, not just the crypto sector. Knot pointed to two key areas driving this increased interconnectedness: Retail Access via ETFs: Products like spot Bitcoin Exchange-Traded Funds (ETFs) make it easier for everyday investors to gain exposure to crypto assets through traditional brokerage accounts. While this seems like a benefit for accessibility, it deepens the link between mainstream finance and the volatile crypto market. Stablecoins and Traditional Assets: The reserves held by major stablecoins increasingly include significant amounts of traditional financial assets, particularly U.S. Treasury bills. This creates a direct link where stress in the stablecoin market could potentially transmit shocks into traditional short-term funding markets. This isn’t just theoretical hand-wringing. As Cointelegraph reported, Knot’s warning underscores a shift in the regulatory perspective, moving from viewing crypto as a niche concern to a potential source of broader financial instability. Understanding Systemic Risk in the Context of Crypto The term ‘ systemic risk ‘ might sound technical, but it’s crucial for understanding the FSB’s concern. Systemic risk refers to the risk of collapse of an entire financial system or market, as opposed to the risk of collapse of a single entity, group, or component within the system. Think of it like a domino effect: if one large, interconnected piece falls, it can knock down many others, leading to a widespread crisis. Historically, systemic risk has been associated with traditional finance – the collapse of large banks, the subprime mortgage crisis, etc. Now, regulators like the FSB are worried that crypto is becoming large and connected enough to potentially trigger or amplify such events. Why is this happening? The initial vision of crypto often involved being separate from traditional finance. However, to gain wider adoption, crypto has built bridges: Exchanges connect fiat currency to crypto. Institutions are investing in crypto or offering crypto services. Stablecoins aim to bridge the gap between crypto and fiat value. ETFs and similar products package crypto for traditional investors. Each of these bridges, while facilitating growth and adoption, also creates pathways for risk to travel between the two systems. A severe downturn in the crypto market risk could lead to forced selling of traditional assets held by crypto entities (like stablecoin reserves), potentially impacting traditional market liquidity and prices. Conversely, stress in traditional markets could force institutions to pull back from crypto, causing cascading effects. The Growing Stablecoin Risk Knot’s specific mention of stablecoins holding U.S. Treasuries highlights a particularly sensitive point. Stablecoin risk isn’t just about whether a stablecoin maintains its peg; it’s also about the composition and management of its reserves. Major stablecoins hold tens of billions of dollars in assets, a significant portion of which are often short-term government securities (like T-bills) and commercial paper. Here’s why this creates a link and potential risk: Large Holders: Stablecoin issuers have become significant players in certain short-term funding markets. Potential for Rapid Selling: If a stablecoin faced a large number of redemption requests (people cashing out their stablecoins for fiat), the issuer might be forced to sell off its reserve assets quickly. Market Impact: Large, rapid sales of assets like T-bills could potentially disrupt the functioning of those critical short-term markets, which are vital for the plumbing of the traditional financial system. Contagion: Disruptions in these markets could then affect banks, money market funds, and other traditional financial institutions. While many stablecoin issuers have improved the quality and transparency of their reserves following past incidents (like the Terra/LUNA collapse), the sheer scale of the assets held means this remains a key area of focus for regulators concerned about systemic risk . How Does Increased Retail Access Via ETFs Contribute? The approval and popularity of spot Bitcoin ETFs in various jurisdictions, including the U.S., represent a significant step in mainstreaming crypto. While this is often seen as a positive development for investors seeking easier access, from a regulator’s perspective focused on financial stability , it increases the number of participants directly exposed to crypto volatility through traditional channels. Consider this scenario: Millions of retail investors hold Bitcoin ETFs in their standard brokerage accounts. A sudden, sharp downturn occurs in the crypto market. Investors panic and sell their ETF shares. The ETF issuer must sell underlying Bitcoin to meet redemptions, potentially exacerbating the crypto price drop. Simultaneously, widespread losses on crypto holdings could impact retail investor confidence and spending, potentially having minor macroeconomic effects, or leading to margin calls and issues within brokerage firms themselves if not properly managed. While current ETF volumes might not pose an immediate, massive systemic risk , the concern is about the trend and future scale. As more crypto assets get packaged into traditional products and more people gain easy access, the potential for crypto market shocks to have broader societal and financial impacts increases. The Role of Crypto Regulation This is where crypto regulation comes into play. The FSB’s warning isn’t necessarily a call to ban crypto, but rather a clear signal that regulatory frameworks need to be developed and implemented to manage the risks associated with its integration into traditional finance. The goal of crypto regulation from this perspective is to build safeguards that prevent crypto market volatility from spilling over and causing wider economic damage. Key areas for potential regulation include: Stablecoins: Rules on reserve composition, custody, transparency, and redemption policies. Crypto Platforms & Exchanges: Requirements around consumer protection, market integrity, anti-money laundering (AML), and know-your-customer (KYC) checks. Intermediaries: Regulations for banks, brokers, and other financial institutions that offer crypto-related services or hold crypto assets. Data Reporting: Requiring crypto firms to provide data on their activities and holdings to regulators to monitor interconnectedness and risk build-up. The challenge for regulators is immense. Crypto operates globally, often across different jurisdictions with varying rules. Developing coordinated and effective crypto regulation that fosters innovation while managing systemic risk and protecting consumers is a complex task. What Does This Mean for the Crypto Market? For participants in the crypto market , warnings like the one from the FSB Chair are a reminder that increased mainstream adoption comes with increased scrutiny and the potential for more stringent rules. While some in the crypto community view regulation negatively, others see it as a necessary step for long-term sustainability and broader institutional acceptance. Key takeaways for market participants: Expect More Regulation: The trend towards increased crypto regulation is likely to continue globally as regulators focus on financial stability . Stablecoin Scrutiny: Stablecoins will remain a key focus area, particularly regarding their reserves and operations. Interconnectedness Matters: Understand that the crypto market is no longer operating in a vacuum; it’s increasingly linked to the traditional financial system. Risk Awareness: Be aware of potential contagion risks and how events in traditional finance or specific crypto sub-sectors (like stablecoins) could impact the broader market. While the FSB’s warning highlights potential downsides, it also implicitly acknowledges the growing significance of the crypto sector. The fact that regulators are focusing on its potential to create systemic risk means it’s no longer considered a fringe phenomenon but a component that needs to be integrated safely into the global financial architecture. Conclusion: Navigating the Blurring Lines FSB Chair Klaas Knot’s warning serves as a crucial reminder that as crypto becomes more accessible and integrated into traditional finance through avenues like ETFs and stablecoin reserves, the potential for systemic risk increases. This growing interconnectedness means that problems in the crypto world could potentially impact traditional markets and vice-versa, posing a challenge to overall financial stability . Regulators like the Financial Stability Board are closely monitoring these developments, and the call for effective crypto regulation is becoming louder. While managing crypto market risk and particularly stablecoin risk is complex, developing robust frameworks is seen as essential to harness the potential benefits of digital assets while mitigating the dangers of a financial crisis triggered by or amplified by the crypto sector. The future of finance will likely involve navigating these increasingly blurred lines carefully, with a strong emphasis on risk management and regulatory clarity. To learn more about the latest crypto market trends, explore our article on key developments shaping the regulatory landscape. This post Systemic Risk: FSB Chair Issues Dire Warning on Crypto’s Growing Threat first appeared on BitcoinWorld and is written by Editorial Team
Bitcoin World 2025-06-13 00:40
BitcoinWorld Major Boost: David Plouffe Joins Coinbase Advisory Council to Champion Bipartisan Crypto Support In a significant move underscoring the growing intersection of cryptocurrency and traditional politics, Coinbase Global has announced the addition of David Plouffe to its Global Advisory Council. This appointment is not just a notable name joining a board; it signals a strategic play by one of the world’s largest cryptocurrency exchanges to navigate the complex political landscape in Washington D.C. and build crucial bipartisan crypto support . Who is David Plouffe and Why Does He Matter to Coinbase? For those unfamiliar with the intricacies of U.S. politics, David Plouffe is a name synonymous with successful political strategy. He served as campaign manager for Barack Obama’s historic 2008 presidential campaign and later as a Senior Advisor to President Obama. His career spans decades at the highest levels of American political campaigning and governance. His expertise lies in understanding public sentiment, crafting compelling narratives, and navigating the intricate machinery of Washington. His decision to join the Coinbase Advisory Council brings a wealth of experience in policy, communications, and government relations to the cryptocurrency giant. In a sector often perceived as disruptive and sometimes misunderstood by policymakers, having someone with Plouffe’s pedigree can be invaluable. Understanding the Coinbase Global Advisory Council’s Role The Coinbase Global Advisory Council is comprised of distinguished individuals from various fields – politics, finance, technology, and academia. Their primary function is to provide strategic guidance and insights to Coinbase leadership. They don’t hold executive positions or direct operational control, but their counsel helps shape the company’s direction, particularly in areas like regulatory engagement, public perception, and long-term strategy. Adding someone like David Plouffe suggests a specific focus for the council’s work: influencing US crypto policy . As the regulatory environment for digital assets remains fragmented and uncertain in the United States, companies like Coinbase are actively seeking ways to educate lawmakers, advocate for clear and sensible rules, and ensure the industry can innovate responsibly. Why is Bipartisan Crypto Support Crucial Now? The political landscape surrounding cryptocurrency in the U.S. is dynamic. While there has been notable backing from some corners, including vocal support from figures like former President Donald Trump and various Republican lawmakers, the industry still faces skepticism and calls for stringent regulation from others across the political spectrum. True progress and lasting regulatory clarity require consensus. Relying on support from just one political party is risky and unsustainable. Legislation and policy that have broad agreement are more likely to pass, be durable, and provide the stability necessary for the industry to thrive and for mainstream adoption to grow. This is where building bipartisan crypto support becomes paramount. Coinbase, as a major player seeking to operate within established financial systems, needs to build bridges across the aisle. Plouffe’s deep connections and understanding of the Democratic party’s mechanisms can complement existing relationships Coinbase may have with Republican figures, helping to foster a more balanced and widely accepted view of cryptocurrency and blockchain technology in Congress and regulatory agencies. How Does David Plouffe Coinbase Appointment Fit into Coinbase’s Strategy? Coinbase’s appointment of David Plouffe is a clear signal of its commitment to engaging with Washington. It’s part of a broader strategy that includes: Increased Lobbying Efforts: Coinbase has significantly ramped up its spending on crypto lobbying in recent years, establishing a presence in D.C. and hiring government relations professionals. Political Action Committees (PACs): The company has also utilized PACs to contribute to political campaigns, supporting candidates who are open to or supportive of the crypto industry. Public Education Campaigns: Coinbase actively works to educate the public and policymakers about the potential benefits of cryptocurrency and the importance of clear regulation. Strategic Hires: Bringing in individuals with deep political or regulatory experience, like Plouffe, strengthens their ability to navigate the complexities of the U.S. political system. The goal is to shape the narrative around crypto, moving it from a niche, speculative asset class to a recognized and integrated part of the future financial system. Having someone with Plouffe’s strategic mind and network on the Coinbase Advisory Council is a significant asset in this endeavor. Potential Benefits and Challenges What are the potential upsides and hurdles associated with this high-profile appointment? Potential Benefits: Enhanced Access: Plouffe’s network can open doors and facilitate conversations with key Democratic policymakers and their staff. Improved Messaging: His expertise in communications can help Coinbase and the industry articulate their positions more effectively to a broader political audience. Strategic Insight: He can provide valuable counsel on anticipating political shifts and tailoring advocacy efforts. Increased Legitimacy: His involvement lends credibility to Coinbase’s efforts in the eyes of traditional political players. Potential Challenges: Partisan Perceptions: Despite the goal of bipartisanship, Plouffe is strongly associated with the Democratic party, which could be viewed with suspicion by some Republicans. Industry Divisions: The crypto industry itself is not monolithic, and achieving consensus on policy goals can be difficult. Regulatory Hurdles: Deep-seated concerns about consumer protection, financial stability, and illicit finance remain significant obstacles regardless of lobbying efforts. Slow Pace of Legislation: The U.S. legislative process is often slow and complex, and significant progress on comprehensive US crypto policy may take time. What Does This Mean for the Future of US Crypto Policy? The appointment of David Plouffe to the Coinbase Advisory Council is a clear indicator that the crypto industry is maturing and investing heavily in political engagement. It underscores the industry’s recognition that its future growth and adoption in the United States are inextricably linked to achieving regulatory clarity and political acceptance. While no single appointment guarantees policy outcomes, bringing in seasoned political operators like Plouffe is a necessary step for the industry to be taken seriously in Washington. It highlights the transition from crypto being solely a technological or financial discussion to a significant political and policy debate. The push for bipartisan crypto support is vital. It acknowledges that the regulatory framework for digital assets will need to withstand changes in political power. By engaging with figures like Plouffe, Coinbase is positioning itself to influence the conversation across the political spectrum, advocating for policies that foster innovation while addressing legitimate concerns. The effectiveness of this strategy will unfold over time, but the message is clear: the crypto industry is no longer on the sidelines of the political arena. It is actively seeking to shape its own future through strategic engagement and robust crypto lobbying efforts. Conclusion: A Strategic Play in the Political Game David Plouffe joining the Coinbase Global Advisory Council is more than just a headline; it’s a strategic maneuver in the high-stakes game of shaping US crypto policy . By adding a political heavyweight known for navigating complex environments and building winning coalitions, Coinbase is signaling its intent to seriously engage with Washington D.C. The goal is clear: foster bipartisan crypto support , advocate for sensible regulation, and pave the way for the mainstream adoption of digital assets. While challenges remain, this appointment, coupled with increased crypto lobbying and educational efforts, demonstrates the industry’s commitment to working within the established political system. The future of crypto in the U.S. will likely be determined as much by policy debates in Washington as by technological innovation, making strategic appointments like this absolutely critical. To learn more about the latest US crypto policy trends, explore our articles on key developments shaping the crypto regulatory landscape . This post Major Boost: David Plouffe Joins Coinbase Advisory Council to Champion Bipartisan Crypto Support first appeared on BitcoinWorld and is written by Editorial Team
Bitcoin World 2025-06-13 00:34
BitcoinWorld South Korea Stablecoin: Pioneering Legislation Proposed for Won-Backed Digital Currency Big news from South Korea! The nation is taking a significant step towards embracing the future of digital finance by proposing dedicated legislation for South Korea stablecoin use, specifically focusing on those backed by the Korean won. This move signals a growing recognition of stablecoins’ potential and the urgent need for a clear legal framework to govern them. Why is South Korea Stablecoin Regulation Needed? Stablecoins, designed to maintain a stable value relative to a specific asset (like the Korean won), have become increasingly popular in the cryptocurrency market. They offer a bridge between volatile cryptocurrencies and traditional fiat currencies, facilitating trading, payments, and other financial activities. However, their rapid growth has also highlighted regulatory gaps, raising concerns about consumer protection, financial stability, and illicit activities. The proposed stablecoin legislation in South Korea aims to fill these gaps. Lawmaker Ahn Do-geol of the ruling Democratic Party is spearheading this initiative. According to reports from News1, his plan involves introducing a comprehensive bill designed to address the multifaceted nature of stablecoins. This isn’t just about slapping a few rules on; it’s about building a foundational structure for how won-backed stablecoin will operate legally within the country. Key Elements of the Proposed Stablecoin Legislation The draft legislation is expected to cover several critical areas to ensure the responsible development and use of stablecoins. Think of it as setting the ground rules before the game gets too big. Here are some of the key elements reportedly included: Eligibility Criteria for Issuers: Who gets to issue a won-backed stablecoin? The bill will likely define the requirements entities must meet to be deemed eligible. This could include capital requirements, technological capabilities, and governance structures. Licensing Requirements: Issuing a stablecoin won’t be a free-for-all. The legislation is expected to mandate specific licenses, ensuring that only authorized and regulated entities can operate in this space. This adds a layer of trust and accountability. Collateral Asset Standards: What assets can back a won-backed stablecoin? How should these assets be held and managed? The bill will set standards for the collateral, aiming to ensure that the stablecoin truly maintains its peg to the won and that users can redeem their tokens reliably. Regulatory Measures for Monetary Oversight: Central banks and financial regulators are naturally concerned about the potential impact of stablecoins on monetary policy and financial stability. The legislation will likely include provisions for oversight by relevant authorities to monitor stablecoin activities and mitigate systemic risks. Development of the Stablecoin Ecosystem: Beyond just rules, the bill also aims to foster a healthy ecosystem. This could involve encouraging innovation while ensuring safety, potentially outlining how stablecoins can integrate with existing financial infrastructure. Safeguards for User Protection: Protecting users is paramount. The legislation is expected to include measures to ensure transparency, prevent fraud, handle redemptions smoothly, and provide recourse for users in case of issues. How Will South Korea Crypto Law Evolve? The introduction of this bill is a significant step in the broader evolution of crypto regulation South Korea . Currently, the regulatory landscape for cryptocurrencies in South Korea is complex, with different aspects covered under various laws. A dedicated framework for stablecoins provides much-needed clarity for businesses and consumers alike. It signals a move towards a more structured and perhaps more accepting environment for certain types of digital assets. Lawmaker Ahn Do-geol emphasized that the specifics of the legislation are not set in stone yet. The process will involve collaboration and refinement. A task force comprising representatives from relevant government agencies will work on the details. Furthermore, a public consultation process is planned, allowing industry participants, experts, and the general public to provide feedback. This collaborative approach is crucial for creating legislation that is both effective and supportive of innovation. What Does This Mean for the Future of Won-Backed Stablecoins? Establishing a clear legal and regulatory framework could have several positive impacts on the development and adoption of won-backed stablecoin in South Korea. Firstly, it provides legal certainty, which is essential for attracting legitimate businesses and investment into the space. Companies will know the rules of the road, reducing regulatory risk. Secondly, strong regulation can build trust among users. Knowing that stablecoin issuers are licensed, hold adequate collateral, and are subject to oversight can make individuals and businesses more comfortable using stablecoins for transactions and other purposes. This increased trust is vital for mainstream adoption. Thirdly, by setting clear standards, the legislation can help differentiate legitimate stablecoin projects from risky or fraudulent ones, protecting the market’s integrity. This could pave the way for stablecoins to be used in a wider range of applications beyond just crypto trading, potentially including remittances, e-commerce, and even traditional finance integrations. However, the devil is often in the details. The specifics of the licensing requirements, collateral standards, and oversight mechanisms will be crucial in determining whether the legislation successfully balances innovation with regulation. Overly stringent rules could stifle development, while overly lax rules could fail to address the risks. The task force and public consultation process will be key in getting this balance right. Comparing South Korea’s Approach to Global Stablecoin Legislation South Korea isn’t the only country grappling with how to regulate stablecoins. Jurisdictions like the European Union (with MiCA regulation) and the United States are also actively working on or have introduced their own frameworks. Comparing the approaches can offer insights into South Korea’s potential path. Many frameworks focus on requiring issuers to be licensed financial institutions, holding reserves in safe assets, and being subject to prudential supervision. South Korea’s proposed elements align with many of these global trends, suggesting an intent to create a robust and internationally comparable regulatory environment for South Korea stablecoin . This proposed South Korea crypto law is a critical juncture for the country’s digital asset future. It demonstrates a proactive stance from lawmakers to address the challenges and opportunities presented by stablecoins. While the journey from proposal to enacted law involves many steps, including detailed drafting, consultations, and parliamentary approval, the announcement itself is a strong indicator of South Korea’s commitment to building a regulated and safe environment for digital currencies. In conclusion, the plan to introduce legislation for won-backed stablecoins marks a pivotal moment for crypto regulation South Korea . By establishing clear rules for issuers, collateral, oversight, and user protection, the country aims to foster a secure and thriving stablecoin ecosystem. The collaborative process involving government agencies and public consultation highlights a commitment to developing thoughtful and effective regulation. This move could significantly enhance trust, encourage innovation, and position South Korea as a leader in the regulated digital asset space, ultimately paving the way for wider adoption of won-backed stablecoin . To learn more about the latest crypto market trends, explore our article on key developments shaping stablecoin legislation and institutional adoption. This post South Korea Stablecoin: Pioneering Legislation Proposed for Won-Backed Digital Currency first appeared on BitcoinWorld and is written by Editorial Team
Bitcoin World 2025-06-12 23:10
FSB Sounds ‘Tipping Point’ Alert as Crypto Grows More Embedded with Traditional Finance The Financial Stability Board (FSB) has sounded a stark warning on the increasing danger of crypto markets as they more embedded in traditional finance (TradFi). Speaking in Madrid, FSB Chair Klaas Knot said that the financial system may be moving towards a “tipping point” due to increasing interconnectedness via crypto ETFs and stablecoins. ETFs Lower Barriers to Retail Investor Entry Knot mentioned that crypto exchange-traded funds (ETFs) are making it easier than ever for retail investors to gain exposure to digital assets. By removing wallets, private keys, or exchanges as a necessity, ETFs introduce TradFi-like convenience with amped-up exposure to the highly volatile crypto universe. Although crypto remains not a systemic risk, Knot warned that this situation may shift in the near future as adoption increases. “We could be at a tipping point,” he said, calling for more regulation. Stablecoins Tie Crypto to US Treasurys Knot brought attention to the runaway growth in the stablecoin market as another area of concern. Digital currencies that are dollar-pegged are ubiquitous within financial systems and are collateralized, in most cases, by US Treasury reserves. This raises the potential for shocks to the crypto world to have impact on sovereign debt markets. FSB Leadership Change with Rising Regulator Focus According to DeFiLlama, today the stablecoins have a combined market capitalization of over $251 billion. Recent studies by the Bank for International Settlements (BIS) again illustrate their influence, as they can decrease three-month US Treasury yields by up to 2.5 basis points in 10 days by taking in stablecoin inflows and send them up by as much as 8 basis points when stablecoin outflows increase them. Tether (USDT) and USD Coin (USDC) are the strongest issuers, having a strong influence on short-term Treasury yield trends, the study found. FSB president Klaas Knot, who is also a president of the Dutch central bank, will leave his FSB role on June 30. Bank of England Governor Andrew Bailey will take over. The Dutch has not yet announced a replacement. The timing is urgent as regulators everywhere move towards creating frameworks for digital assets, including stablecoins, that are increasingly being considered financial instruments of systemic importance. GENIUS Act Advances in US Senate Adding to the regulatory momentum, the US Senate this week voted 68–30 to move forward with the GENIUS Act — a bill that would establish a national standard for stablecoin issuance. If passed, it would bring much-needed certainty to the US stablecoin market and add the country’s competitiveness to the digital asset space. The passage of the bill emphasizes growing concern over the systemic implications that come with the expansion of crypto, an attitude echoed by the FSB in its advocacy for tighter global regulation.
BTC Pulse 2025-06-12 20:20
A more upbeat macroeconomic backdrop, growing corporate appetite for digital assets, and increased regulatory clarity will fuel a constructive outlook for crypto markets in the second half of 2025, according to a report by Coinbase Research . After a bumpy first quarter marked by a brief contraction in U.S. GDP and trade disruptions, data now point to stronger growth. The Atlanta Fed’s GDPNow tracker has jumped to 3.8% QoQ as of early June, a sharp upgrade from earlier in the year. This shift, alongside expectations of Federal Reserve rate cuts and a less aggressive trade policy, has eased recession fears and strengthened investor sentiment. Declining dollar dominance and inflation protection use-cases may also boost bitcoin’s BTC appeal, even if long-dated U.S. Treasury yields remain elevated, the report said. Altcoins may lag unless they benefit from specific catalysts, such as ETF approvals or protocol developments. Meanwhile, public companies are increasingly adding crypto to their balance sheets, aided by a 2024 rule change allowing "mark-to-market" accounting for digital assets. While this trend is expanding demand, it’s also introducing new systemic risks. Firms that fund crypto buys with convertible debt may be forced to sell if refinancing options dry up or prices fall sharply. Regulatory clarity Regulatory developments are also expected to reshape the market, the report said. The Senate recently passed the GENIUS Act, a bipartisan stablecoin bill now heading to the House. A broader market structure bill, the CLARITY Act, aims to define the roles of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) in overseeing digital assets. If passed, it could clarify rules for both issuers and investors. Separately, the SEC is considering more than 80 crypto ETF applications, including multi-asset funds and proposals involving staking and altcoins. Some rulings could be made as early as July, and the rest are likely to be finalized by October. Overall, bitcoin appears poised to benefit from both macro and structural tailwinds in the second half of the year, while the outlook for altcoins will depend on navigating a more complex and still-evolving regulatory and liquidity environment, according to the report.
CoinDesk 2025-06-12 20:16
Hong Kong has confirmed that it is developing a cryptocurrency tracking tool to strengthen enforcement against cross-border money laundering. During a media briefing, Assistant Commissioner Mario Wong Ho-yin of Hong Kong Customs said the department is working with the University of Hong Kong to build the tool to counteract increasingly complex financial crimes involving virtual assets. While details of the tool’s operation remain confidential, officials said it is being designed to trace suspicious crypto transactions linked to money laundering schemes . According to Wong, the university has already supported the department with forensic technologies in other cases, including those involving illegal streaming, and that technical assistance is essential for meeting court evidence requirements. “These money laundering threats are characterised by a transnational and borderless nature, and no single agency can tackle this problem alone,” he added. Crypto’s role in money laundering Seven out of nearly 40 major laundering cases probed by Hong Kong Customs since 2021 have involved the use of cryptocurrencies. These seven cases accounted for more than HK$9 billion (US$1.1 billion) in suspected criminal proceeds, often disguised as routine trading activity. In one particular instance, officials uncovered over 1,000 suspicious transactions totalling HK$1.8 billion across five companies and 18 local bank accounts. Three suspects were arrested, with two accused of moving HK$760 million via a cryptocurrency platform. Plans for a digital crypto tracing tool were first revealed earlier this year when Hong Kong’s Cyber Security and Technology Crime Bureau introduced CryptoTrace, a system jointly developed with the University of Hong Kong. It was described as a platform providing “advanced intelligence and investigative support” for officers handling virtual asset cases. Announced during the Blockchain Security Summit in March, CryptoTrace is already in use by frontline police investigators and is designed to support intelligence gathering in virtual asset-related crimes. At the time, the bureau said CryptoTrace employed blockchain analytics, graphing, and visualization technologies to trace laundered funds and identify suspect activity. Reportedly, training sessions had already been held to equip frontline officers with the skills to use the system effectively. While the Customs Department did not confirm the name of the tool currently under development, its partnership with the same university and its stated objectives have raised speculation that the system may be an extension, or internal application, of the earlier CryptoTrace platform. Hong Kong takes a cautious approach Hong Kong’s approach to digital assets remains deliberately measured , as it plans to balance innovation and regulatory oversight. Nevertheless, locals appear undeterred by regulatory caution , with a November 2024 survey revealing that one in four adults plan to invest in cryptocurrencies. However, the findings also indicated a clear preference for regulated exchanges, with respondents expressing greater trust in licensed platforms compared to unregulated ones. This growing appetite among residents appears to be shaping how Hong Kong regulators calibrate policy. In April, the Securities and Futures Commission began allowing licensed virtual asset trading platforms to offer staking services, but only under strict conditions. Platforms must obtain written approval and comply with measures designed to protect users and disclose the risks associated with locking up assets for yield generation. By May, lawmakers had passed the Stablecoins Bill , mandating that all issuers of fiat-referenced stablecoins tied to the Hong Kong dollar obtain a license from the Hong Kong Monetary Authority. Last week, the government confirmed that the Stablecoin Ordinance will take effect on August 1, 2025. The law will also limit stablecoin-related advertisements to licensed issuers and grant certain exemptions for offerings made exclusively to qualified investors. The post Hong Kong developing new crypto tracing tool, here’s what you need to know appeared first on Invezz
Invezz 2025-06-12 19:18
SEC Undermines Legitimacy of Crypto Oversight, Watchdog Warns
