Revolut and three other firms will join the Financial Conduct Authority’s stablecoin sandbox, the regulator said. The sandbox, an ongoing project for the regulator since last year, will focus on key uses under real-world conditions, including crypto trading and payments. Alongside Revolut, Monee Financial Technologies, ReStabilise, and VVTX will participate. Monee is a digital lending platform also involved in the Bank of England’s digital securities sandbox. ReStabilise is a white-label stablecoin ser ...

Core Viewpoint - The SEC has made a significant regulatory shift regarding stablecoins, allowing broker-dealers to apply a 2% haircut on proprietary positions in payment stablecoins, which is a major change from the previous 100% haircut policy [2][3][6]. Regulatory Changes - The SEC's new guidance indicates that it will "not object" to a 2% haircut on stablecoins, which is a substantial reduction from the previous treatment of stablecoins as speculative assets with a 100% haircut [3][6]. - The SEC emphasized that a 100% haircut was "unnecessarily punitive" given the underlying reserve assets backing payment stablecoins, such as U.S. dollars and short-term Treasuries [4][5]. Impact on Broker-Dealers - The change from a 100% to a 2% haircut allows stablecoins like USDC to be treated as a gold standard for regulation, significantly improving their capital treatment for broker-dealers [7]. - For example, if a broker-dealer holds $10 million in stablecoins, only $200,000 would be deducted, allowing $9.8 million to count as valid capital, akin to cash treatment [7]. Future Implications - This regulatory shift signals that the CLARITY Act, aimed at establishing a regulatory framework for digital assets like stablecoins, is likely to be voted on soon [8].

Stablecoin regulation has reached a global inflection point.In 2025, frameworks like the GENIUS Act in the US brought regulated stablecoins inside the financial system, with clear rules designed to spur growth.USDC is available globally, giving institutions the confidence to move from pilots to real-world deployment across payments, treasury, and capital markets.This is what it looks like when regulation enables innovation.Read the Beyond Stablecoins: The Rise of the Internet Financial System Report: https: ...

Group 1 - The US banking industry is advocating for a prohibition on companies paying interest on stablecoin balances, which is causing delays in the legislative process for the Clarity Act in Congress [1][2][4] - A meeting hosted by the White House's crypto council included representatives from major banks and crypto trade associations, highlighting the industry's unified stance against interest payments on stablecoins [3] - The document shared among banks emphasizes limited exemptions to the prohibition and warns that allowing interest payments could lead to deposit flight, negatively impacting local lending [6][7] Group 2 - The American Bankers Association and other banking organizations issued a joint statement advocating for policies that support financial innovation while ensuring the safety of bank deposits [8]

🚨POST-MEETING UPDATE:Digital Chamber CEO @CodyCarboneDC said the meeting was "exactly the kind of progress needed to find a resolution to one of the biggest issues blocking next steps in market structure legislative progress."A Reporter for the White House also echoed the feeling of forward progressThe main issues discussed were in regards to moving market structure legislation forward and stablecoin yieldBSCN (@BSCNews):🚨HUGE: WHITE HOUSE MEETS WITH CRYPTO FIRMS TODAYAt 1pm ET today (Feb 2), Trump's White ...

I’ve been watching Tether and Circle celebrate Washington’s new stablecoin rulebook, and then I saw New York’s top prosecutors try to rip the shine off it. In a warning that’s now circulating through policy circles, they argue the law that was supposed to “de-risk” dollar tokens may also make it easier for issuers to sit on disputed funds, and even earn on them, while victims fight to get paid back. Related: Largest crypto exchange announces surprising plan after Bitcoin crashes GENIUS Act stablecoin fr ...

The Hong Kong Money Authority (HKMA) plans to issue its first Stablecoin Issuer Licenses in March. According to a report from Reuters, HKMA chief executive Eddie Yue told members at a meeting of the legislative council on Feb. 2 that the central bank expected to issue a “very small number” of licenses in March, though no specific date or further information regarding the potential licensees was given. The HKMA had previously revealed that it received 36 completed applications for Stablecoin Issuer Licen ...

Core Insights - The U.S. is evaluating whether stablecoins should remain as payment tools or evolve into deposit-like products, posing a threat to traditional banking [1][6][24] - Banks are advocating for strict regulations on stablecoins to prevent them from offering features that make them more appealing than traditional bank accounts, particularly regarding rewards [2][6] - The White House is facilitating discussions between banks and crypto firms to address the legislative deadlock surrounding stablecoin regulations [3][4] Industry Dynamics - Stablecoins are increasingly being integrated into mainstream payment systems, with major firms like Visa and Stripe developing stablecoin settlement capabilities [4][17] - Standard Chartered estimates that stablecoins could siphon up to $500 billion from U.S. bank deposits by 2028, significantly impacting regional banks [6][7] - The rapid movement of funds into stablecoins raises concerns about liquidity and the potential for a "bank run" scenario, where users can quickly convert deposits into stablecoins [10][11] Regulatory Landscape - The U.S. is lagging behind other jurisdictions in establishing clear regulations for stablecoins, which could lead to a shift of activities to regions with more favorable frameworks [19][20] - Global regulatory bodies are advocating for consistent oversight of stablecoin arrangements due to their potential financial stability risks [23] - The debate centers around who controls the economic benefits of digital dollars, with banks seeking to maintain their traditional roles in the financial system [21][22] Market Trends - Stablecoins are processing significant volumes in on-chain settlements, with a reported $33 trillion processed recently, indicating their growing role in financial transactions [13] - USDC is gaining traction over USDT in transaction volume, suggesting a shift towards institutional and B2B uses rather than just retail trading [14] - The integration of stablecoins into payment systems is transforming them from a niche crypto product into essential financial infrastructure [18][24]

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Bitcoin‘s (CRYPTO: BTC) underperformance against gold continues to spur debate among crypto commentators. Why Bitcoin Looks Cheap Against Gold Satsuma’s Chief Bitcoin Strategist Mark Moss says Bitcoin looks "cheap" in gold terms, noting BTC tends to revisit its 200-week moving average against gold roughly every four years, historically a strong long-term accumulation zone. While downside risk remains in th ...

Japan’s Financial Services Agency has unveiled strict collateral requirements for stablecoin reserve assets, setting a remarkably high threshold that could limit which bonds qualify as backing for digital yen instruments. The proposed rules mandate that foreign-issued bonds must carry top-tier credit ratings and come from issuers with at least 100 trillion yen ($650 billion) in outstanding debt, a bar few global entities can meet. The draft standards emerged Monday as part of regulatory notices implemen ...