Banking regulators have proposed new rules that would restrict third parties from passing stablecoin yield rewards to users. The regulatory change could significantly impact major crypto exchanges like Coinbase, though experts disagree on the exact implications for the industry.
The article discusses regulatory pressures on stablecoin issuers regarding interest distribution and the competitive dynamics between digital dollars and traditional bank deposits. It explores the ongoing debate over who should receive the risk-free rate earned on stablecoin reserves.
Morgan Stanley has filed for a federal trust charter to provide direct cryptocurrency custody, trading, and staking services to institutional clients. This move represents a significant step by the major investment bank to expand its crypto offerings beyond current indirect exposure products.
Morgan Stanley has applied for a national trust bank charter to establish a dedicated digital asset custody and staking entity in the United States. This move represents a significant step by a major Wall Street firm into institutional cryptocurrency services.
Citibank has announced plans to introduce infrastructure to integrate Bitcoin into traditional banking systems by 2026, marking a significant institutional push to make cryptocurrency 'bankable'. This represents a major traditional financial institution's commitment to cryptocurrency adoption and infrastructure development.
The CLARITY Act stablecoin negotiations stalled over the weekend despite White House efforts to broker a breakthrough. Banking representatives and crypto lobbyists remain divided on key issues around stablecoin yield generation, leaving the crypto market structure bill far from a final deal.