The European Central Bank (ECB) is keen to accelerate the creation of the digital euro, particularly following US President Donald Trump’s endorsement of stablecoins linked to the US dollar. ECB board member Piero Cipollone highlighted that Trump’s backing could push European lawmakers to fast-track the legislation for the digital euro. The ECB envisions the digital euro as a central bank-backed online wallet, offering an alternative to major US payment providers like Visa and PayPal.
Despite the European Commission’s proposal for digital euro legislation in June 2023, progress has been slow due to some scepticism in the political and banking sectors. Cipollone remains optimistic that recent developments, including the rise of US stablecoins, will prompt greater urgency from EU lawmakers. He expressed hope that the digital euro legislation could be finalised by summer, allowing for negotiations with the Commission to be wrapped up before November.
Cipollone also raised concerns over the growing use of US stablecoins in Europe, warning that it could lead to a shift of deposits from European banks to the US. He acknowledged bankers’ fears that a digital euro could have a similar effect. Still, he reassured that the ECB would likely limit the amount of digital euros users can hold to prevent destabilisation. Several countries, including Nigeria and China, have already launched central bank digital currencies, while many others, such as Russia and Brazil, are in the testing phase.
Coinbase has secured approval from the UK’s Financial Conduct Authority (FCA) to operate as a Virtual Asset Service Provider. The milestone allows the exchange to offer both crypto and fiat services in one of its largest international markets, reinforcing its presence beyond the US.
The FCA has strict regulations for digital asset firms, approving only a limited number of applicants. Coinbase’s successful registration highlights its compliance with UK laws and cements its position as the largest registered digital asset provider in the region. This development follows an inquiry into Coinbase Payments over past regulatory breaches, which have now been resolved.
With this approval, Coinbase can legally facilitate cryptocurrency transactions for retail and institutional clients in the UK. The exchange continues to expand globally, having recently launched services in Argentina and reinstated Bitcoin-backed loans in the US. Coinbase aims to accelerate crypto adoption worldwide, positioning itself as a key player in the digital asset revolution.
Kaspersky Labs has uncovered a dangerous malware hidden in software development kits used to create Android and iOS apps. The malware, known as SparkCat, scans images on infected devices to find crypto wallet recovery phrases, allowing hackers to steal funds without needing passwords. It also targets other sensitive data stored in screenshots, such as passwords and private messages.
The malware uses Google’s ML Kit OCR to extract text from images and has been downloaded around 242,000 times, primarily affecting users in Europe and Asia. It is embedded in dozens of real and fake apps on Google’s Play Store and Apple’s App Store, disguised as analytics modules. Kaspersky’s researchers suspect a supply chain attack or intentional embedding by developers.
While the origin of the malware remains unclear, analysis of its code suggests the developer is fluent in Chinese. Security experts advise users to avoid storing sensitive information in images and to remove any suspicious apps. Google and Apple have yet to respond to the findings.
Senator Bill Hagerty is set to introduce the GENIUS Act, a bill aimed at creating a clear regulatory framework for stablecoins in the US. The legislation is co-sponsored by Senators Kirsten Gillibrand, Tim Scott, and Cynthia Lummis, with a focus on ensuring all stablecoins are backed by US Treasury bills, dollars, and Federal Reserve notes.
The bill follows previous efforts in Parliament to regulate stablecoins, aligning with similar proposals from both the House and Senate. Supporters argue that regulatory clarity is crucial for the rapidly expanding market, with Tether’s USDT and Circle’s USDC currently dominating the sector. Lawmakers believe the move will help position the US as a global leader in cryptocurrency innovation.
A key requirement of the bill is for issuers to conduct and publish monthly audits to ensure transparency and financial stability. Senator Hagerty has pledged to work closely with House Financial Services Committee chair Rep. French Hill to advance the bill, aiming to bring it to President Trump’s desk for approval.
Coinbase is calling on US regulators to remove barriers preventing banks from offering crypto services, urging them to confirm that state-chartered banks can provide and outsource crypto custody and execution. The exchange sent letters to key regulatory bodies, including the Federal Reserve and the FDIC, requesting clear guidance on banks’ ability to work with crypto firms. Coinbase argues that current laws already permit such partnerships, but regulatory uncertainty is stopping banks from fully engaging in the sector.
The request comes amid an ongoing legal battle between Coinbase and US agencies, with the exchange accusing regulators of deliberately blocking banks from serving crypto businesses. Last year, Coinbase sued the SEC and the FDIC over alleged efforts to cut off essential banking services to the industry. Some reports even suggest the FDIC pressured banks to pause their crypto activities, despite institutions such as BNY Mellon moving forward with digital asset custody services.
With Donald Trump now in office, the crypto community is watching closely for potential regulatory shifts. Coinbase, which has been strengthening ties with the new administration, sees this as an opportunity to push for a more open banking environment for crypto firms. The exchange remains a major player in the market, serving as the primary custodian for US-based Bitcoin ETFs.
A bipartisan working group is being established in Congress to develop policies supporting digital assets. Representative French Hill announced the initiative, emphasising the need for clear regulatory guidelines. The group will work alongside White House officials, including crypto and AI adviser David Sacks.
President Donald Trump has ordered a separate cryptocurrency task force to explore regulations and the possibility of a national crypto reserve. Trump has positioned himself as a pro-crypto leader, pledging to promote adoption. In contrast, former President Joe Biden’s administration took a stricter stance, cracking down on exchanges such as Coinbase and Binance over alleged regulatory violations.
Lawmakers and officials are now seeking a balance between fostering innovation and ensuring consumer protection. The growing role of cryptocurrencies in the economy has intensified calls for clearer legislation, with both Congress and the executive branch pushing for new frameworks.
Trump’s crypto czar, David Sacks, has argued that stablecoins could help maintain US dollar dominance, just as lawmakers push for clearer regulations in the sector. His statement came after Senator Bill Hagerty introduced the GENIUS Act, a bill aimed at setting legal standards for stablecoins and ensuring their reserves are backed mainly by US Treasury Bills.
At a press conference alongside key Republican lawmakers, Sacks outlined Trump’s digital asset strategy, suggesting that stablecoin regulation could be a priority under the administration. He also addressed questions about Trump’s plan for a Bitcoin reserve, stating that assessing its feasibility is a key goal for the crypto council, though he declined to confirm whether the US government would actively accumulate BTC.
Meanwhile, Congress appears to be accelerating efforts to formalise crypto policy, with key committees forming dedicated groups to oversee digital asset regulations. Lawmakers, including Senate Banking Committee Chair Tim Scott and House Financial Services Committee Chair French Hill, have signalled a coordinated push to establish a comprehensive framework for stablecoins and broader crypto adoption.
President Donald Trump has temporarily halted a 25% tariff on Mexican imports following an agreement with President Claudia Sheinbaum. The deal, which grants a one-month pause, comes after Mexico pledged to deploy 10,000 National Guard troops to curb drug trafficking and illegal migration at the US border.
The agreement follows Trump’s decision to impose tariffs on Mexico, Canada, and China as part of a broader strategy to pressure foreign governments on trade and security. While the pause provides temporary relief, negotiations will continue, led by senior US officials including Secretary of State Marco Rubio. Trump remains optimistic that a long-term solution can be reached.
Financial markets responded positively to the news, with US stocks recovering from early losses and the Mexican peso stabilising. Bitcoin, which had slumped to $91,178, rebounded to nearly $98,000 as investors adjusted to the easing tensions. However, concerns remain over impending tariffs on Canada and China, which could still trigger economic uncertainty.
The Trump administration is preparing to accelerate digital asset regulation, with White House crypto czar David Sacks set to lead a press conference alongside key Conservative lawmakers. The event, scheduled for Tuesday, will outline plans to establish the US as a leader in the digital asset space while ensuring regulatory clarity.
The administration’s working group on digital assets has tasked agencies, including the US Treasury and the SEC, with identifying all relevant cryptocurrency laws by the end of February. Between March and July, policy recommendations will be drafted to amend or remove outdated regulations, paving the way for a federal crypto framework.
Comprehensive proposals covering market structure, stablecoins, and consumer protection must be submitted within 180 days of July, with multiple parliamentary hearings expected. While the process will take time, the involvement of top Conservative policymakers signals a major shift in Washington’s approach to cryptocurrency regulation.
The US Treasury is facing a lawsuit over claims it unlawfully granted Elon Musk’s Department of Government Efficiency (DOGE) access to millions of Americans’ financial and personal data. The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) filed the lawsuit in Washington, DC, accusing the Treasury and Secretary Scott Bessent of illegally sharing sensitive information.
The lawsuit follows concerns raised by US Senator Ron Wyden, who alleged that DOGE had full access to the Treasury’s payments system, which includes names, Social Security numbers, bank account details, and other private data. Prominent Democrats, including Senate leader Chuck Schumer and Senator Elizabeth Warren, have condemned the move, arguing that DOGE lacks any legal authority over federal spending or data access.
Schumer has pledged to introduce legislation to prevent further interference, stating that DOGE is not a legitimate government agency. Warren warned that the system is now “at the mercy of Elon Musk,” raising fears over potential misuse of financial records. The Treasury and DOGE have yet to respond to the allegations.
