Ghana’s central bank is moving to regulate virtual assets, adopting a policy designed to foster responsible crypto innovation while guaranteeing a level playing field for all financial institutions. Balancing Innovation and Competition The Bank of Ghana (BOG) has acknowledged that the country currently lacks a dedicated legal framework for regulating virtual asset service providers (VASPs).
Bitcoin.com 2025-11-10 06:05
South Korea said it is close to finalizing its long-awaited stablecoin legislation, as the central bank and financial regulator jostle over who should police digital tokens pegged to the won. The Financial Services Commission (FSC) plans to submit a government sponsored bill by the end of 2025. It will join five other competing stablecoin bills under review in the National Assembly which have been submitted by individual lawmakers. Meanwhile, the Bank of Korea (BOK), which released a stablecoin whitepaper on October 27, stressed that “currency functions on trust rather than technology,” and is also seeking a role in licensing and monitoring. Legislative chaos Competing proposals have muddled the stablecoin policy landscape. “Most of the bills in the National Assembly envision a licensing regime for private stablecoin issuers,” said Sejin Kim, a fintech policy analyst at the Information Technology and Innovation Foundation. “The central bank, on the other hand, wants to keep issuance in the hands of banks over concerns about financial stability.” The FSC views stablecoins as part of the virtual asset market and maintains that licensing, exchange oversight, and custody supervision should remain within its jurisdiction. While all the bills share the same overarching objective none of them fully align with either the FSC’s or the BOK’s preferred model, explained J eonghwan JK Kim, an attorney specializing in digital assets at Architect Legal Advisory. The kimchi premium spreads to stablecoins The newly elected President Jae-Myung Lee expressed concerns that South Koreans are too reliant on USD backed assets. USD pegged stablecoins USDC and USDT dominate Korea’s crypto market. According to the BOK, the total trading volume of USD pegged stablecoins reached 56.95 trillion won ($41.6 billion) in the first quarter of 2025, marking a threefold increase from 17.06 trillion won in the third quarter of 2024. But Korean investors are paying more for USDT and USDC than investors abroad. The price gap, referred to as the “kimchi premium,” stems from high user demand and capital restrictions that make it harder for traders to move money in and out of the country. The price hike was initially observed in the 2017 Bitcoin bull run where prices soared as high as 30% and has now spread to stablecoins. Pro-crypto president President Lee pledged to transform the country into a digital asset hub. His election campaign included proposals to establish a Korean won pegged stablecoin market, and allow domestic companies to issue stablecoins. Sejin Kim believes the stablecoin debate has the wrong priorities. She said the FSC and BOK are too focused on licensing authority and the idea that stablecoins are the key to unlocking new growth industries. She stressed that stablecoins work as a high volume settlement system with razor thin profit margins. The success of Korea’s stablecoin ecosystem depends on how distribution costs are managed and whether surrounding industries grow around it. “Licensing follows after the design principles are formed,” she said. “For a won pegged stablecoin to function in Korea’s real economy, it must be designed alongside actual use cases such as spot ETFs, tokenized securities (STO), international remittances, and cross-border B2B settlement. ETFs act as the investment pipe. Stablecoins act as the settlement pipe. Korea can only capture global capital flows if both pipes move together.” Central bank caution The BOK insists that the issuance of won stablecoins should be bank-led. In its stablecoin whitepaper , the BOK outlined several risk factors, such as depegging where the coin loses its one-on-one value with fiat currency, mass redemptions, as well as foreign exchange violations and capital flight. BOK Governor Chang-yong Rhee said that the issuance of won pegged stablecoin could act as a bypass for foreign exchange regulations, potentially increasing capital outflow and exchange rate volatility. Jaewon Choi, professor of finance at Seoul National University, agrees with the BOK’s measured approach. While USD stablecoins are traded at high volumes in Korea, he is uncertain whether a won-denominated stablecoin will gain traction. “I think the Bank of Korea’s concerns are legitimate. Of course, we can’t predict whether a stablecoin will collapse until it happens. But given that the most liquid USD stablecoins have a risk of depegging, it is not surprising that the BOK suspects that won denominated stablecoins carry the same risk.” Sejin Kim, fintech policy analyst at the Information Technology and Innovation Foundation stressed that the Korean won cannot be compared to the dominant USD stablecoins. “The won does not have the same global liquidity profile, so Korea needs to carefully evaluate the economic effects of introducing won pegged stablecoins at scale.” Jeonghwan JK Kim of Architect Legal Advisory said Korea’s regulatory philosophy remains rooted in a “positive-list” model, where only activities explicitly approved by authorities are allowed. “Initial coin offerings are a prime example of this because they are not formally banned, but they have never launched in practice because of regulatory pressure,” he said. It’s a legacy that makes it difficult for Korea to adopt a market-driven, innovation-first framework like the U.S. Genius Act. Two issuers, one coin Korean won pegged stablecoin issuers are waiting in the wings for legislation to be finalized. Blockchain developer IQ AI and Frax Finance announced the launch of the KRWX stablecoin on October 30. The coin was built for multi-blockchain and cross-border use. It is still at the proof-of-concept stage and not yet available to South Korean residents KRW1 , launched by Busan Digital Asset Custody Services in September, is officially South Korea’s first stablecoin. It was designed around Korea’s regulations and with institutional transactions in mind. In particular, cross-border remittances, emergency aid distribution, and institutional finance applications. The token remains in pilot mode until national stablecoins rules are finalized. Control versus innovation South Korea is leaning towards splitting duties, with the central bank managing reserves and settlement, and the FSC oversees licensing and exchanges, said Jeonghwan JK Kim. “It’s not yet a formal agreement, but the bills assume some form of shared responsibility.” He said it’s likely that the first stablecoins will come from bank-led consortia rather than tech startups. “Both regulators share a common recognition that stablecoins should be introduced gradually and should function as a safe, institutionally anchored asset.” This kind of a model would make Korea’s version of stablecoins less experimental but more durable. Claim your free seat in an exclusive crypto trading community - limited to 1,000 members.
Cryptopolitan 2025-11-10 04:51
BitcoinWorld Revolutionary Shift: Bank of Korea Champions Bank-Led Stablecoins Using Biden-Era Framework Imagine a world where your local bank issues digital currencies that combine traditional financial security with crypto innovation. That’s exactly what the Bank of Korea is proposing in their groundbreaking new approach to bank-led stablecoins . This strategic move could reshape how we think about digital money and financial stability. Why Is the Bank of Korea Pushing for Bank-Led Stablecoins? The Bank of Korea recently released a white paper that makes a compelling case for bank-led stablecoins as the future of digital currency. Their recommendation centers on having banks take the lead in stablecoin issuance rather than allowing non-bank entities to dominate this emerging market. This approach directly contrasts with current U.S. policy under the Trump administration. What makes this development particularly interesting is the Bank of Korea’s reliance on Biden-era financial policy. They specifically cited the U.S. President’s Working Group on Financial Markets report from the previous administration to support their position. This creates an intriguing international dialogue about how different countries approach cryptocurrency regulation. How Do Bank-Led Stablecoins Differ from Current Models? Traditional stablecoins typically come from cryptocurrency companies or fintech startups. However, bank-led stablecoins would operate differently in several key ways: Enhanced regulatory oversight through existing banking frameworks Built-in consumer protections that banks already provide Seamless integration with traditional financial systems Proven risk management practices from established institutions Greater financial stability through centralized oversight This model addresses many concerns that regulators have about privately-issued stablecoins, including reserve transparency and systemic risk. What Challenges Might Bank-Led Stablecoins Face? While the bank-led stablecoins approach offers significant benefits, it also faces several hurdles. Traditional banks may struggle with the technological innovation required for digital currency systems. Additionally, there are concerns about whether banks can move quickly enough to compete with agile crypto startups. Another challenge involves international coordination. Since cryptocurrencies operate across borders, different regulatory approaches could create friction in global markets. The Bank of Korea’s proposal highlights how countries are taking varied paths toward regulating digital assets. What Does This Mean for Crypto Investors and Users? The push for bank-led stablecoins represents a significant shift in how governments view digital currencies. For users, this could mean: More stable and reliable digital payment options Better consumer protection mechanisms Easier integration between crypto and traditional banking Increased regulatory clarity for digital assets This development suggests that major financial institutions are taking cryptocurrencies seriously and want to play a central role in their evolution. How Might This Impact Global Crypto Regulation? The Bank of Korea’s position on bank-led stablecoins could influence other countries considering their own digital currency frameworks. As one of Asia’s leading economies, South Korea’s regulatory approach often sets precedents for neighboring nations. Moreover, the reference to U.S. policy shows how international regulatory discussions are shaping local decisions. This creates an interesting dynamic where countries learn from each other’s experiences with cryptocurrency regulation. Conclusion: The Future of Stablecoins Is Evolving The Bank of Korea’s advocacy for bank-led stablecoins marks a pivotal moment in cryptocurrency history. By leveraging Biden-era financial policy while adapting it to local needs, they’re creating a hybrid approach that balances innovation with stability. This could become a model for other nations seeking to regulate digital assets without stifling their potential. As the debate continues between bank-centric and open models, one thing is clear: stablecoins are becoming too important to leave unregulated. The question isn’t whether they’ll be regulated, but how—and the Bank of Korea has just made a powerful case for their preferred approach. Frequently Asked Questions What are bank-led stablecoins? Bank-led stablecoins are digital currencies issued and managed by traditional banking institutions rather than cryptocurrency companies or fintech startups. Why does the Bank of Korea prefer bank-led stablecoins? The Bank of Korea believes banks offer better consumer protection, regulatory oversight, and financial stability compared to non-bank issuers. How does this differ from U.S. policy? Current U.S. policy under the Trump administration allows non-bank entities to issue stablecoins, while the Bank of Korea wants to restrict issuance to banks. What policy did the Bank of Korea reference? They cited the U.S. President’s Working Group on Financial Markets report from the Biden administration that recommended bank-centric approaches. When might we see bank-led stablecoins in South Korea? There’s no specific timeline yet, but the white paper suggests the Bank of Korea is seriously considering this regulatory framework. Will this affect existing stablecoins? Existing stablecoins might need to adapt to new regulations or partner with banks if the Bank of Korea’s proposal becomes law. Found this analysis insightful? Share this article with others interested in cryptocurrency regulation and help spread knowledge about the evolving world of digital assets! To learn more about the latest cryptocurrency regulation trends, explore our article on key developments shaping stablecoins institutional adoption. This post Revolutionary Shift: Bank of Korea Champions Bank-Led Stablecoins Using Biden-Era Framework first appeared on BitcoinWorld .
Bitcoin World 2025-11-10 04:00
BitcoinWorld Revolutionary CFTC Push: Spot Crypto Services Coming to Major Exchanges Next Month Get ready for a game-changing development in cryptocurrency regulation! The CFTC’s acting chair has revealed exciting discussions about launching spot crypto services with major exchanges. This breakthrough could transform how Americans access cryptocurrency markets through regulated platforms. What Are CFTC Spot Crypto Services and Why Do They Matter? The Commodity Futures Trading Commission is actively working to bring regulated spot crypto services to the market. Acting Chair Caroline Pham confirmed that these discussions involve not just traditional financial giants but also innovative crypto-native platforms. This represents a significant step toward mainstream cryptocurrency adoption. These spot crypto services would allow direct trading of cryptocurrencies rather than just derivatives. The CFTC’s involvement brings crucial regulatory oversight that could boost investor confidence. Moreover, the inclusion of leveraged instruments suggests comprehensive market coverage. Which Exchanges Are Involved in These Groundbreaking Talks? The CFTC’s conversations span across diverse market participants. Traditional powerhouses like Chicago Mercantile Exchange and Cboe Futures Exchange are at the table. However, the real excitement comes from including companies like: Coinbase Derivatives Kalshi Polymarket US This diverse participation ensures that the resulting spot crypto services will serve various market segments. The blend of established institutions and innovative newcomers creates a balanced regulatory approach. How Will These New Spot Crypto Services Benefit Traders? Regulated spot crypto services offer multiple advantages for market participants. First, they provide enhanced consumer protection through established regulatory frameworks. Second, institutional investors gain comfortable entry points into cryptocurrency markets. The inclusion of leveraged products within these spot crypto services addresses sophisticated trader needs. This comprehensive approach could attract significant capital from traditional finance sectors. Furthermore, standardized procedures may reduce operational risks associated with cryptocurrency trading. What Challenges Might These Regulatory Efforts Face? Implementing spot crypto services through CFTC-regulated exchanges presents several hurdles. Regulatory clarity remains an ongoing concern across different jurisdictions. Additionally, technological integration between traditional and crypto systems requires careful planning. Market participants must adapt to new compliance requirements. However, the potential benefits of regulated spot crypto services outweigh these challenges. The CFTC’s proactive approach demonstrates commitment to fostering innovation while maintaining market integrity. When Can We Expect These Services to Launch? According to recent reports, the timeline appears remarkably aggressive. The CFTC aims to have initial spot crypto services operational as early as next month. This accelerated schedule reflects both market demand and regulatory readiness. The rapid progression suggests that groundwork has been underway for some time. Market participants should prepare for potentially swift implementation of these new spot crypto services. Early adoption could provide competitive advantages in the evolving regulatory landscape. Conclusion: A New Era for Cryptocurrency Regulation The CFTC’s push for spot crypto services marks a pivotal moment in digital asset regulation. This initiative bridges traditional finance with innovative cryptocurrency markets. Investors, traders, and the broader financial ecosystem stand to benefit from these regulated access points. As these developments unfold, market participants should stay informed about evolving requirements. The successful implementation of spot crypto services could set new standards for global cryptocurrency regulation. Frequently Asked Questions What exactly are spot crypto services? Spot crypto services enable direct trading of cryptocurrencies at current market prices, unlike derivatives which are based on future price expectations. Why is the CFTC involved in spot cryptocurrency markets? The CFTC regulates commodity futures and options markets in the US, and since cryptocurrencies are classified as commodities, they fall under its jurisdiction. How will these services differ from existing crypto exchanges? CFTC-regulated spot crypto services will operate under established financial regulations, offering enhanced consumer protections and institutional-grade infrastructure. Can retail investors access these new services? Yes, these services are designed to be accessible to both institutional and retail investors through regulated exchange platforms. What cryptocurrencies will be available initially? While specific assets haven’t been confirmed, major cryptocurrencies like Bitcoin and Ethereum are likely candidates for initial offerings. How will leverage work in these spot crypto services? Leveraged instruments will allow traders to amplify their positions, similar to margin trading in traditional markets, but with regulatory oversight. Ready to stay ahead in the evolving crypto landscape? Share this groundbreaking news with your network and join the conversation about regulated cryptocurrency access. Your insights could help shape the future of digital asset trading! To learn more about the latest cryptocurrency regulatory trends, explore our article on key developments shaping Bitcoin institutional adoption and market evolution. This post Revolutionary CFTC Push: Spot Crypto Services Coming to Major Exchanges Next Month first appeared on BitcoinWorld .
Bitcoin World 2025-11-10 00:40
The industry's staunch ally (and sometimes business partner) in the White House has brought a flood of drama, both good and bad.
CoinDesk 2025-11-08 19:00
This week’s top crypto headlines in LATAM highlight a region juggling innovation and regulation, ranging from El Salvador’s blockchain-backed public records to Brazil’s cautious approach to Bitcoin treasuries and the growing momentum of DeFi adoption. El Salvador uses Bitcoin to secure official documents El Salvador has begun to utilise Bitcoin technology to maintain official digital records , marking a new era in government transparency. The initiative, sponsored by the National Bitcoin Office (ONBTC) in partnership with the United States-based startup Simple Proof, uses the OpenTimestamps protocol to assure authenticity and permanence on the Bitcoin network. This enables any registered document to be verified on the blockchain using its timestamp, resulting in an immutable public record that cannot be changed or falsified. According to Simple Proof CEO Carlos Toriello, the technology does not save personal information or complete files on the blockchain. Instead, it creates a cryptographic hash, a unique digital fingerprint, for each page. This allows you to certify millions of data points with a single transaction while maintaining privacy and network efficiency. The first formal implementation occurred with the CUBO+ program’s graduation certificates, which are all verifiable via Bitcoin’s blockchain. Brazil’s Bitcoin Treasuries face regulatory uncertainty Brazil’s largest Bitcoin treasuries, such as OranjeBTC and Méliuz, face an uncertain regulatory picture as Asia tightens regulations. While Hong Kong and India have prohibited Bitcoin treasury listings, Brazil takes a more open approach centred on investor education and transparency. Analysts believe that the country’s regulatory structure will not impose drastic limits, but regulators will continue to monitor listed corporations that serve as indirect Bitcoin investment vehicles. Experts point out that Brazil’s crypto landscape is more adaptable because of existing instruments such as Bitcoin ETFs and COEs, which already provide exposure to digital assets. This lessens the requirement for treasury-style organisations to have Bitcoin as their primary asset. Nonetheless, the concept piques regulatory interest, as these firms lack typical operations and blur the border between innovation and monitoring. The future of Bitcoin treasuries in Brazil will be determined by their ability to preserve transparency and investor safety in the face of shifting global trends. Bitget Wallet’s Stablecoin boom reflects DeFi’s push for stability Bitget Wallet’s total value locked (TVL) in stablecoin yield products increased 523% in the third quarter of 2025, topping $80 million, as investors sought transparent and safe on-chain income. The growth reflects a dramatic shift in DeFi, with consumers preferring self-custodial choices over centralised services. The growing acceptance of stablecoins in Europe and Asia demonstrates how they are becoming crucial tools for savings and cross-border transactions, bridging traditional and decentralised finance. This increasing momentum follows the success of Bitget’s Stablecoin Earn Plus, a USDC-based product on Aave that provides a fixed 10% yearly return with real-time accruals. Bitget Wallet wants to make DeFi earnings as easy to understand as traditional savings by streamlining yield generation. The company’s emphasis on autonomy, openness, and accessibility reflects the global trend toward self-custody and provable, long-term crypto revenue. The post LATAM crypto news: El Salvador secures records with Bitcoin as Brazil weighs treasury rules appeared first on Invezz
Invezz 2025-11-08 16:15
American bankers are urging the US Treasury Department to enforce the prohibition on interest for payment stablecoins in the GENIUS Act. In response, cryptocurrency exchange Coinbase, has called on the Treasury to ensure that the forthcoming regulations align with Congress’s original intentions regarding the act. Coinbase Pushes Back On GENIUS Act’s Interest Restrictions According to the bill, signed by President Trump back in July, “No permitted payment stablecoin issuer or foreign payment stablecoin issuer shall pay the holder of any payment stablecoin any form of interest or yield (whether in cash, tokens, or other consideration) solely in connection with the holding, use, or retention of such payment stablecoin.” However, companies like Coinbase are exploring a potential loophole that they believe allows them to continue offering yields on stablecoin deposits. They argue that since these platforms are not the issuers of the stablecoins, the prohibition does not apply to them. Coinbase’s letter to the Treasury was a direct response to an advanced notice regarding the GENIUS Act’s implementation. In this letter, dated November 4, Coinbase argued that interpreting third-party rewards or loyalty programs as prohibited “interest” would fundamentally alter the intent of Congress and contradict the statute’s text and purpose. The letter warned that any misinterpretation of the GENIUS Act could harm consumers by eliminating market-based incentives that reduce payment costs, encourage merchant acceptance, and assist new users in adopting regulated US stablecoins. Banking Sector Unites Against Stablecoin Interest The response from the banking sector was robust, with the Consumer Bankers Association, the American Bankers Association, the Bank Policy Institute, the Financial Services Forum, and The Clearing House Association collectively representing the interests of American banks. They asserted that Congress intended the prohibition on stablecoin interest to be broadly interpreted. Their letter indicated that any interest or yield payments that the GENIUS Act prohibits should encompass any economic benefits provided by issuers, directly or indirectly, including those through affiliates or partners. They cautioned that allowing stablecoin interest would effectively transform these digital assets into investment products, which could lead consumers to perceive stablecoins as akin to bank accounts, potentially resulting in a “deposit flight” that threatens banks’ ability to generate credit. Beyond concerns related to interest payments, Coinbase also raised issues regarding the taxation of stablecoins . The firm argued that stablecoins should be classified as pure payment instruments for tax purposes, rather than as forms of debt or investment. They posited that treating payment stablecoins as debt would introduce unnecessary complexity into the financial system. Instead, Coinbase advocated for these stablecoins to be considered cash equivalents, which would simplify their tax treatment and support their intended use as payment mechanisms. Featured image from DALL-E, chart from TradingView.com
Bitcoinist 2025-11-08 15:00
Banks are using their proxies, organizations like the Bank Policy Institute and Better Markets, to promote the approval or modification of current regulation to affect the level of involvement of crypto and stablecoins in U.S. retail and institutional markets. Banks Are Taking Action Against Existing and Upcoming Crypto Regulation The Facts Banks are now taking
Bitcoin.com 2025-11-08 13:30
The budget introduces a massive deficit and still requires a vote of confidence from Parliament; otherwise, another federal election will be triggered. Canada’s New Budget Channels Resources into Developing Stablecoin Governance It’s hard to believe, but for much of 2025, Canada operated without a budget after its new Prime Minister, Mark Carney, narrowly won a
Bitcoin.com 2025-11-08 07:45
Kazakhstan is set to establish a national cryptocurrency reserve fund valued between $500 million and $1 billion, primarily utilizing assets that have been seized and repatriated from abroad. Central Bank Governor Timur Suleimenov announced the initiative during an interview with Bloomberg in London, stating that the fund would focus on investments in exchange-traded funds (ETFs) and shares of companies involved in the sector, rather than holding digital assets directly. State-Run Crypto Asset Fund During the interview , Suleimenov expressed confidence that the fund would be operational by the end of the year or early January. He emphasized that the investment strategy would be cautious, steering clear of direct crypto exposure. Kazakhstan’s Deputy Chairman of the National Bank, Berik Sholpankulov, further clarified the government’s strategy, revealing that they are considering using some of the National Fund’s assets, as well as gold and foreign exchange reserves, for investments linked to crypto assets. Sholpankulov noted that any such investment activities would be managed exclusively through a state-run digital asset fund, which is currently under discussion. The National Bank’s Deputy Chairman detailed that confiscated cryptocurrency assets would be allocated to this state digital asset fund , where they will serve as a strategic reserve for the government. Additionally, he mentioned a proposal from the Ministry of Digital Development to allow state-owned mining companies to provide energy to private mining operations in exchange for payment in virtual currencies. According to the National Bank, the assets of the National Fund increased by $990 million in September compared to August, reaching a total of $62.7 billion. Concurrently, gold and foreign exchange reserves also saw a rise, with gold reserves growing to $39.7 billion, despite a decline in foreign exchange assets. Kazakhstan Eyes Regulated Digital Asset Landscape This initiative comes on the heels of the National Bank’s approval of a concept to create a national reserve of crypto assets, which will be managed through a new subsidiary focused on alternative investments. The government is also exploring the establishment of licensed crypto banks and a national cryptocurrency exchange to foster a regulated environment for digital asset trading in Kazakhstan. Over the past few months, authorities have cracked down on illicit cryptocurrency exchanges, shutting down 130 operations suspected of laundering criminal proceeds. This crackdown has led to the seizure of crypto assets worth approximately $16.7 million. However, Sholpankulov noted that around $15 billion in cryptocurrency has reportedly exited the country due to regulatory gaps surrounding digital assets. At the time of writing, Bitcoin (BTC) was trading at $100,820, marking a notable 9% decline over the past week. This puts the leading cryptocurrency 20% below its all-time high of $126,000, which was reached in early October of this year. Featured image from DALL-E, chart from TradingView.com
Bitcoinist 2025-11-08 07:00
Trump-appointed Federal Reserve Governor Stephen Miran, known publicly in policy circles as Steve, told an audience of economists in New York on Friday that the fast-growing demand for stablecoins tied to the U.S. dollar may be pushing the U.S. neutral interest rate lower. According to reporting from Bloomberg , Steve said that a situation like that would likey require the Federal Reserve to adjust its own policy stance to avoid slowing the economy by mistake. Steve said the surge of stablecoins is drawing heavy demand toward U.S. Treasury bills and other highly liquid dollar instruments, especially from buyers outside the United States, which then adds to the supply of loanable money in the economy. When the supply of lendable funds increases, the neutral rate (the level of interest that supports steady growth without overheating or dragging activity) can drift downward. Steve said that if the neutral rate is plunging, then the Federal Reserve must respond by lowering its policy rate, otherwise it risks tightening conditions unintentionally. He described the situation plainly, saying “Stablecoins may become a multitrillion-dollar elephant in the room for central bankers.” He added that the buildup of stablecoins is already influencing markets and will keep doing so as adoption grows. Stablecoin growth pressures interest benchmarks Steve referred to existing research to say that expanding stablecoin usage could lower the Federal Reserve’s benchmark rate by around 0.4 percentage point. That figure aligns with the pattern of his policy views during his tenure. Since joining the Fed, Steve has repeatedly argued for deeper and faster rate cuts, saying the commonly assumed neutral rate is too high. He has said that holding rates above the true neutral level risks slowing down the economy more than intended. Until now, Steve had based most of his arguments on inflation trends and conditions in the broader economy. But the rise of stablecoins introduces a new long-term factor. By increasing the supply of money available for lending, he said, it naturally exerts downward pressure on the neutral rate for years ahead. “Even relatively conservative estimates of stablecoin growth imply an increase in the net supply of loanable funds in the economy that pushes down the neutral rate,” Steve said. He continued, “If neutral is lower, policy rates should also be lower than they would otherwise be to support a healthy economy.” Steve warned that refusing to respond to this shift would be “contractionary.” He is set to leave the Federal Reserve in January, when the term he is currently filling is scheduled to end. Crypto market erases yearly gains as volatility hits Bitcoin Steve’s policy remarks come as the total market value of all cryptocurrencies (which reached nearly $4.4 trillion on October 6) saw a 20% decline that has wiped out nearly all the gains recorded earlier this year. The crash began after the sudden liquidation of roughly $19 billion in leveraged positions, which shook confidence among traders and left the market struggling for direction. Few market participants are currently betting on a strong rebound, per data from CryptoQuant. This downturn stands out because this year had been marked by stronger recognition of crypto from regulators, major banks and institutional investors. President Donald Trump’s push to position the United States as the central hub of global crypto activity earlier contributed to rising enthusiasm. Bitcoin at one point surged by 35% this year. But now the total crypto market value sits below where it was when Trump entered office. Bitcoin has fallen 9% so far this week alone, putting it on track for its worst weekly result since March. It also fell below its 200-day moving average, a level widely monitored by traders since the 2022 bear market. As of press time, Bitcoin was trading just under $100,000. Losses have been even heavier among altcoins, which are smaller and more volatile. They have underperformed across the board this year. Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.
Cryptopolitan 2025-11-08 06:58
The United States government shutdown has entered its 38th day, marking the longest in history, as the Senate prepares for a critical vote on a new funding bill that could determine when Washington reopens. The political deadlock has halted progress on key legislative priorities, including the long-anticipated crypto market structure bill known as the CLARITY Act . Prolonged Shutdown Risks 2% GDP Hit as Senate Prepares Crucial Vote The Senate is expected to vote this week on a Republican-backed proposal that would end the shutdown and fund several federal agencies through the rest of the fiscal year. The measure requires 60 votes to advance, and while Republican leaders have expressed cautious optimism, uncertainty remains over whether enough Democrats will support it. “My hopes and expectations are always that we’re going to have enough Democrats to actually proceed, but I don’t know, we’ll see,” Senate Majority Leader John Thune told reporters. The standoff, which began on October 1 after lawmakers failed to agree on a budget, stems from disagreements over healthcare subsidies tied to the Affordable Care Act. Democrats have demanded an extension of expiring tax credits that help about 24 million Americans afford insurance, while Republicans argue that those issues should be negotiated separately once the government reopens. US Government Shutdown So Far: 1. 42 million people face interruption of SNAP 2. 3.5 million people have seen airfare disruptions 3. 750,000 employees furloughed 4. 5,000 flights set to be cancelled per day 5. $15 billion in US GDP lost per week 6. $10 billion of SNAP… — Zarar Khan (@DrZarar01) November 7, 2025 With roughly 1.4 million federal workers affected, including 700,000 furloughed since early October, the shutdown’s economic and social toll is deepening. Federal workers have now missed multiple paychecks, and agencies from the Federal Aviation Administration (FAA) to the USDA are cutting services. Trump – No Snap Benefits Until Government Re-Opens. pic.twitter.com/yu1DwYAFOE — Ryan (Emperador Maximiliano) (@EmpMaximiliano) November 4, 2025 A Rhode Island court on Thursday ordered the Trump administration to restore full funding for the SNAP program after it had been reduced to partial payments. The administration has appealed the decision, arguing that funding decisions should await congressional action. Nearly 42 million Americans depend on the program, which costs more than $8 billion per month. Economists warn the prolonged shutdown could inflict lasting damage on the U.S. economy. Turns out this shutdown is incredibly costly, averaging ~15B per week. Unlike past shutdowns, 650K furloughed workers may not get back pay, food aid is cut, small businesses without their loans, and some economic damage could be permanent if it extends through the holidays. pic.twitter.com/OImZwWDXTV — Tahra Hoops (@TahraHoops) November 5, 2025 The Congressional Budget Office estimates the standoff could shave up to two percentage points off fourth-quarter GDP growth, draining between $10 billion and $30 billion weekly. Small businesses that rely on federal contracts and loans are running short on capital, and consumer spending is declining as millions of workers remain unpaid. How Long Can Crypto Wait While Washington Sleeps? The shutdown has also paralyzed Washington’s regulatory machinery. Agencies overseeing financial markets, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), are operating with skeleton crews. Reviews of pending applications, including multiple proposals for crypto exchange-traded funds (ETFs), have been suspended. Interesting: Because most SEC staff are currently furloughed due to the government shutdown, they will NOT be available to review or respond to Fails-to-Deliver (FTD) related queries or compliance ISSUES unless they are designated as EMERGENCY functions. pic.twitter.com/5cDqudANAs — Reese Politics (@ReesePolitics) November 3, 2025 The impasse has effectively frozen legislative momentum on digital assets. The bipartisan CLARITY Act, designed to define how cryptocurrencies and stablecoins are regulated across federal agencies, had seen renewed activity in late October. Senators John Boozman and Cory Booker said their committees were working “daily ” to finalize their section of the bill and expected a vote before Thanksgiving. However, with the government shutdown entering its sixth week, that timeline is now in jeopardy. Coinbase CEO Brian Armstrong told CNBC that roughly 90% of the bill’s issues had already been resolved and that Thanksgiving had been floated as a possible target for completion . The market fallout has extended beyond Capitol Hill. The liquidity squeeze triggered by the shutdown, exacerbated by the U.S. Treasury General Account hoarding funds while agencies remain closed, has weighed heavily on risk assets. Bitcoin has retreated from recent highs , testing long-term support levels as investors navigate reduced market liquidity and uncertainty around fiscal policy. Meanwhile, prediction markets indicate growing skepticism about a quick resolution to the shutdown. Source: Polymarket Data from the decentralized platform Polymarket shows traders assigning a 59% probability that the shutdown will extend beyond November 16, with only a 13% chance of reopening before mid-month. The post Crypto Bill Held Hostage by 38-Day Government Shutdown as Senate Prepares Critical Vote appeared first on Cryptonews .
cryptonews 2025-11-08 00:52
Banks Are Pushing Back Against Crypto Regulation: Here’s How
