Federal Reserve cleans banks to offer crypto
Federal Reserve Board announced that it had officially withdrawn its guidance letter for banks related to crypto assets and Stablecoins. 2022 issued the Federal Reserve Board “Commitment to crypto-access related activities by Federal Reserve Supervised Banking Organizations”Tell the banks that they needed to get the Fed approval before participating in digital currency or stablecoin-related activities.
Now that this guidance has been removed, it will be much easier for banks to offer products and services involving digital currencies and Stablecoins. Like Paul Atkins, chairman of Securities and Exchange Commission (SEC), this move removes a stock of friction that previously discouraged financial institutions from engaging in the digital asset industry.
Since the inauguration, it has been an emphasis on creating an environment where digital asset companies and large US financial institutions can function in digital currency space without worrying about regulatory cases. But we have heard much less about the actual demand for these products and services.
To be fair, US President Donald Trump’s executive order that requires the creation of a Bitcoin strategic reserve and one Crypto Strategic Reserve Urged other countries, governments and large companies all over the world to start storing BTC. However, most of the headings are about progressive technologists and not necessarily the everyday institutional investors who quietly work Bitcoin in their portfolio allocation.
It is also important to realize that institutional investors and retail investors often have different goals. Institutions entering the digital asset space is usually focused on maximizing profits, not necessarily creating, supporting or even being a significant member of decentralized economy. So even though it is fantastic to see regulatory barriers to sink, I think we do not yet see what the markets will look like when many traditional financial institutions actively act with crypto markets.
Atkins as Sec-Chairman paves the way for pro-crypto regulation
Last week, Atkins was answered I as the 34th chairman for Sec. In line with what becomes a clear trend during the current administration in the White House, Atkins is believed to be “crypt -friendly.” Many expect the blockchain and digital asset industry to continue to experience growth with Clearer regulations And an easy touch of supervision, with him leading the organization.
What makes Atkin’s crypt-friendly not that he has a long, vocal history in applying blockchain technology-because he does not have this. Instead, it is his historical attitude to capital markets during a long career as a lawyer, a former Sec Commissioner and the founder of the consulting company Patomak Global Partners, a company that helped to block and digital asset companies to navigate in legislative environments.
Throughout his career, Atkins consistently emphasized that the government’s overreaction would not stifle innovation. His philosophy requires minimal regulation, limited government involvement in emerging markets and clear, narrowly tailor -made rules that enable innovation. Although his broader philosophy was not originally about crypto, it is easy to see how it is today’s blockchain and digital asset industry.
It is also easy to imagine how Atkins Sec will be the polar opposite Former SEC Chairman Gary Gensler’s AdministrationWho emphasized to defeat the Cryptocurrency industry and aggressively prosecute many of its leading companies.
Like what we have reviewed the crypto gym since the administration changes in January, with Atkins in the office, I expect crypto companies to ride with increased state aid. Companies are likely to feel encouraged to renew themselves without fear of prosecution. On the other hand, daily consumers will probably not feel any direct effects of having a crypt-friendly SEC chair. If they do, it will probably be because the benefits that the crypto companies enjoy to users through the products and services offered by the companies.
Circle debuts new payment networks to competing show and mastercard
At the same time, Circle, the company behind USDC, announced the launch of Circle Payments Network (CPN). CPN is a new global payments network designed to compete directly with VISA (Nasdaq: v), Mastercard (Nasdaq: MA) and other electronic payment systems. But instead of relying on traditional Fiat currencies, it will use USDC, Eurc and other regulated Stablecoins to solve transactions.
“Circle Payments Network is a constitution for the always economic — which allows trusted institutions to move value across borders directly,” mentioned Nikhil Chandhok, Chief Product and Technology Officer at Circle.
So far, Stablecoin has mostly been very profitable products for their issuers, which allows them to issue coins and then rake in passive income through treasury. They are also a tool used by investors in their trading stacks, giving users a short or long-term protection from Market volatility While offering a centerpiece that enables simple redistribution to crypto or fiat.
StableCoin -Adoption has recently explodedEspecially with the new government administration that creates a more favorable environment for cryptoinnovation. Now Stablecoins goes in addition to trading tools; They position themselves as the most important infrastructure for Global payments.
It is no secret that even if it is effective, traditional payment networks such as VISA and Mastercard can be expensive on a scale. Beyond that, the traditional financial system is not “always on.” Banks and payment processors have designated operating hours and trying to move money outside these hours usually results in delays.
Stablecoins can solve both of these problems. Networks built on blockchain infrastructure can be online around the clock, which means that transactions can take place directly regardless of time or day. Depending on the blockchain they are based on and associated transaction fees, they also have the potential to be significantly cheaper than traditional payment settlement systems.
In line with almost all major crypto and blockchain developments in 2025, it is still unlikely that the average consumer will notice much of a difference at any time. The bigger winners from Circle’s new payment network will probably be banks, large companies and financial institutions that move hundreds of millions – if not billions – of dollars across borders daily.
Watch: Improve logistics, finance with AI & Blockchain
https://www.youtube.com/watch?v=wxbn2idcge8 Title = “Youtube video player” Ramblegder = “0” Allow = “Accelerometer; Autoplay; Clipboard Writing; Encrypted Media; Gyroscopes; Image-in-Bild; Web Dividend” Reference Policy = “Strict-Origin-When-Cross-Origin” Allowing Lorscreen = “>
