Cryptocurrencies Archives | Page 85 of 176

The US House Committee passes a bill to strengthen stablecoin oversight

The US House Financial Services Committee has passed a bill aimed at regulating stablecoins, moving it to a full House vote. On 2 April, the Committee approved the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act in a 32-17 vote.

The bill outlines a regulatory framework for payment stablecoins such as USDT and USDC. It mandates transparency in token reserves, ensuring issuers hold sufficient dollar-equivalent assets to back their circulating supply.

Key provisions focus on consumer protection and reducing risk for stablecoin users. The bill also aims to strengthen the role of the dollar in digital finance.

Supporters argue the bill will modernise the US payment infrastructure, making transactions faster and more cost-effective. They also emphasise the importance of maintaining space for innovation.

Congressman Dan Meuser highlighted that the legislation reinforces the dollar’s position as the world’s reserve currency. Meanwhile, Congressman Troy Downing emphasised his role in balancing innovation with strong consumer protections.

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Swiss shift to digital payments opens door for stablecoins

Switzerland is witnessing a significant shift towards digitalisation. A new survey shows debit card payments have surpassed cash for the first time.

In 2024, 35% of in-store purchases were made with debit cards, compared to 30% using cash. It marks a major change from 2017 when cash accounted for 70% of payments.

While Switzerland has traditionally favoured cash, especially for privacy reasons, the trend towards digital payments is undeniable.

The shift is partly attributed to the pandemic, which accelerated the move away from cash. According to economist Alexander Koch, countries like Switzerland, traditionally attached to cash, are now following international trends.

The cultural change indicates a broader willingness to embrace digital forms of payment. In Switzerland, 18% of payments are made via mobile apps, while credit cards make up 14%.

With digital payments on the rise, experts are seeing increased potential for stablecoins and tokenised assets.

Dominic Weibel from Bitcoin Suisse AG believes that the growing use of mobile payment apps sets the stage for Swiss stablecoins to thrive. He suggests tokenised Swiss francs could soon be integrated into mobile apps.

Despite the growing digital shift, the Swiss National Bank (SNB) remains cautious about introducing a central bank digital currency (CBDC). However, institutional engagement with blockchain and digital bonds continues to grow. It suggests that Switzerland’s digital future is on track.

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North Korean hacker group cashes in on crypto trade

A wallet linked to North Korea’s notorious Lazarus Group has reportedly sold 40.78 Wrapped Bitcoin (WBTC) for $3.51 million, exchanging it for 1,847 Ethereum (ETH), according to data from SpotOnChain.

Instead of holding onto the ETH, the wallet redistributed 2,507 ETH across three separate addresses, with the largest portion of 1,865 ETH sent to another wallet allegedly tied to the hacker group.

The wallet originally purchased the 40.78 WBTC in February 2023 for around $999,900, when the price of WBTC averaged $24,521. Instead of selling earlier, the group waited until WBTC surged to $83,459, securing a realised profit of $2.51 million, representing a 251% gain over two years.

Lazarus Group, instead of operating openly, has been using complex laundering techniques to move stolen funds, particularly after its attack on crypto exchange Bybit.

In March, the group allegedly laundered nearly 500,000 ETH—worth $1.39 billion—through various transactions in just ten days, instead of keeping the stolen assets in a single location. At least $605 million was processed via the THORChain platform in a single day.

According to Arkham Intelligence, a wallet linked to the group still holds approximately $1.1 billion in crypto, with substantial reserves in Bitcoin, Ethereum, and Tether.

Meanwhile, Google’s Threat Intelligence Group has reported increased efforts by North Korean IT workers to infiltrate European tech and crypto firms, acting as insider operatives for state-sponsored cybercrime networks like Lazarus Group instead of working as legitimate employees.

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Bybit shuts down NFT and IDO platforms

Bybit, one of the largest cryptocurrency exchanges, has announced the discontinuation of its NFT marketplace. The platform will also shut down its Initial DEX Offering (IDO) product pages.

The decision comes shortly after the platform suffered a devastating security breach in February 2025. During the breach, it lost approximately $1.5 billion to North Korean hackers.

Although Bybit has cited ‘efforts to streamline our offerings’ as the reason for the shutdown, many believe it is a direct consequence of the hack and subsequent security concerns.

The discontinuation will take effect on 8 April 2025, at 16:00 UTC. Users have been urged to manage their assets before the deadline.

The exchange provided alternative NFT trading platforms, including OpenSea, Blur, and Magic Eden, for Ethereum-based assets. IDO participants have also been advised to transfer their airdropped tokens to private Web3 wallets.

The platform’s decision to shut down its NFT and IDO services is seen as a move to mitigate further risks and potential compliance issues. Bybit’s shutdown follows a broader trend in the NFT market, where many platforms have closed.

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UK trade bodies urge government action on crypto and blockchain policies

A group of six UK trade bodies has called on Prime Minister Keir Starmer’s government to take action on blockchain and crypto policy.

In a letter to Varun Chandra, Starmer’s business and investment adviser, the group made a call for government action. They urged the appointment of a special envoy and the creation of a national strategy to boost digital asset innovation.

The coalition includes leading industry groups like the UK Cryptoasset Business Council and Global Digital Finance. They believe that such measures could unlock job growth and establish the UK as a global leader in the sector.

The letter also pointed to the recent momentum in the US, where President Donald Trump appointed a crypto czar to lead policy on blockchain. The coalition believes that Britain can mirror this success, especially with its growing tech partnership with the US.

The trade bodies estimate that blockchain and digital assets could contribute £57 billion to the UK economy over the next decade. Globally, the sector is expected to add £1.39 trillion to GDP by 2030.

With digital assets becoming central to global finance, the UK’s actions now may determine its future as a competitive crypto hub.

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The Financial Freedom Act could allow Americans to invest retirement funds in crypto

US Senator Tommy Tuberville is set to reintroduce the Financial Freedom Act. The bill would enable Americans to invest their retirement funds in cryptocurrencies.

Tuberville emphasised that the US is a ‘country of freedom.’ He criticised the previous administration for imposing strict regulations on investments.

He also praised President Trump, calling him the ‘Crypto President.’ Tuberville noted that the Biden administration had been reluctant to support crypto.

The Financial Freedom Act, initially introduced in 2022, seeks to reverse Department of Labor (DOL) guidance. The guidance limits investment options for self-directed 401(k) account holders.

Tuberville has argued that excessive regulation hampers financial growth and restricts personal liberty. The bill would allow more freedom for individuals to select the types of investments they want in their retirement funds, including cryptocurrencies.

Senator Cynthia Lummis has championed the idea of adding cryptocurrencies to retirement portfolios. Ivory Johnson, a financial planner, supports this, recommending that crypto make up 2% to 8% of a portfolio.

However, financial experts like Amy Arnott warn that adding crypto could increase risks. It might show especially if the market suffers a downturn during retirement.

For more information on these topics, visit diplomacy.edu.

Sony Singapore now accepts USDC for online purchases

Sony Singapore has enabled cryptocurrency payments, allowing shoppers to use USDC for purchases on the Sony Store Online. It is Sony’s first direct engagement with crypto transactions in the region.

USDC provides secure transactions without price volatility concerns. While Sony currently supports only USDC, industry experts anticipate the company will expand its cryptocurrency payment options.

Sony Block Solutions Labs, a subsidiary of the tech giant, recently introduced Soneium. The Ethereum layer-2 network is designed for digital collectibles and gaming economies. Soneium previously integrated bridged USDC, further strengthening its role in Sony’s blockchain ambitions.

The expansion of crypto-friendly services reflects a growing trend. Crypto.com, the payment provider for Sony’s USDC transactions, has been actively expanding. It includes a recent deal with Trump Media and plans for cryptocurrency-backed ETFs.

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UK regulator approves BlackRock’s crypto registration

BlackRock has received approval from the UK’s Financial Conduct Authority (FCA) to operate as a crypto asset firm. With this registration, BlackRock can now offer its new European Bitcoin exchange-traded product (ETP) in the UK.

The iShares Bitcoin ETP (IB1T) recently began trading on Euronext Paris and Amsterdam. Initially launched with a fee waiver reducing costs to 0.15% until the end of 2024, its expense ratio will increase to 0.25% next year.

Each IB1T share is backed by actual Bitcoin held by Coinbase. The product provides investors with regulated exposure to cryptocurrency.

The FCA’s approval process remains stringent, with only 14% of applications granted. BlackRock’s move follows the success of its US-listed iShares Bitcoin Trust (IBIT). The fund has accumulated over $48 billion in assets.

The company’s European expansion reflects growing demand for Bitcoin investment products beyond North America.

BlackRock CEO Larry Fink has suggested that mounting US debt could weaken the dollar’s dominance. It could reinforce Bitcoin’s appeal as a store of value. He highlighted a potential shift among investors seeking alternatives amid rising government expenditure.

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CFTC removes crypto derivatives advisories to align with traditional finance

The Commodity Futures Trading Commission (CFTC) has withdrawn two key staff advisories. These advisories set distinct regulatory expectations for cryptocurrency derivatives.

The move aligns the oversight of crypto-based financial instruments with traditional financial products. It marks a significant step towards regulatory parity.

The CFTC decided to rescind Staff Advisory No. 18-14, which outlined guidance on virtual currency derivative product listings. Advisory No. 23-07, which addressed risks in expanded digital asset clearing, was also withdrawn as the digital asset market matures.

These withdrawals signal the agency’s growing confidence in the crypto market’s development. It also shows its readiness to treat crypto derivatives like traditional financial products.

By eliminating these advisory distinctions, the CFTC is aiming to foster greater institutional engagement with crypto derivatives markets. The agency’s shift toward harmonising regulatory practices is expected to reduce uncertainty. It is also likely to encourage broader market participation.

The decision aligns with broader regulatory trends in the US. Other agencies have also taken steps to reduce the regulatory gap between traditional finance and digital assets.

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Elon Musk denies the US government’s plans for Dogecoin use

Elon Musk has clarified that there are no plans for the US government to adopt Dogecoin. He addressed these concerns during a recent town hall in Green Bay, Wisconsin.

Speaking at the 30 March event, Musk denied any government involvement with the cryptocurrency. He stated ‘There are no plans for the government to use Dogecoin or anything as far as I know.’

Dogecoin was initially created in 2013 as a parody. It gained unexpected popularity, peaking at a market cap of $84 billion in 2021.

Despite the Shiba Inu-themed coin’s rise, Musk emphasised that Dogecoin’s mission is unrelated to any government agency. It includes Trump’s newly created agency, DOGE, aimed at reducing regulatory red tape.

Musk’s growing visibility in government initiatives has attracted scrutiny, particularly over the potential downsizing of federal workers. Musk’s involvement with the America PAC has also raised concerns among Tesla shareholders. The CEO acknowledged a significant drop in Tesla stock value.

Meanwhile, questions remain about how Musk’s political alignment could impact the future of Dogecoin and government efficiency efforts.

For more information on these topics, visit diplomacy.edu.