Paul Atkins, the newly appointed chair of the US Securities and Exchange Commission (SEC), has boldly declared that “crypto’s time has come,” marking a pivotal moment in the regulator’s approach to digital assets. Atkins Declares End To ‘Weaponization’ Of Regulation Delivering a keynote address at the inaugural OECD roundtable on global financial markets, Atkins expressed his commitment to unlocking the potential of digital assets in the United States, highlighting the impact of new technologies on global finance. Related Reading: WLFI Price Dips 7% As Eric Trump Leaves World Liberty Treasury Company ALT5 Sigma Atkins criticized the previous SEC approach under former chair Gary Gensler, which he described as a “weaponization” of regulatory powers that stifled the crypto industry. The Commissioner pointed out that this “enforcement-centric strategy” not only proved ineffective but also drove innovation overseas, burdening American entrepreneurs with costly legal defenses. He asserted that those days are over and that the SEC is embarking on a new chapter. The SEC under Atkins aims to establish “clear and predictable regulations” that will enable innovation to flourish. He indicated that the agency will no longer rely on ad hoc enforcement actions to set policy. As Congress works on legislation, the SEC is set to modernize its rules through what it has termed “Project Crypto.” This initiative seeks to adapt existing securities regulations to accommodate the digital asset landscape, ensuring that most crypto tokens are clearly classified as non-securities. Future Of Crypto Regulation Atkins also highlighted the need for regulatory efficiency, advocating for a minimum effective dose of regulation to protect investors without overburdening entrepreneurs with complex rules that only large incumbents can navigate. He emphasized the potential for innovation through “super-app” trading platforms that could combine trading, lending, and staking services under a unified regulatory framework. Related Reading: Solana And XRP ETFs Smash New Records In Canada Atkins further unveiled that the Securities and Exchange Commission also plans to collaborate with other regulatory bodies to create a cohesive environment that permits the trading of crypto assets alongside traditional financial services. The regulator praised the European Union (EU) for its stance on digital assets, specifically referencing the Markets in Crypto-Assets (MiCA) regulation, which he sees as a model for regulatory clarity. Atkins expressed a desire for the United States to learn from these efforts, ensuring that America remains a leader in fostering an economic climate conducive to financial innovation. In closing, Atkins articulated a vision for a future where breakthroughs in the financial industry are made on American soil, under American oversight, ultimately benefiting American investors. He welcomed the opportunity to work with international allies to enhance economic collaboration and extend the sphere of freedom and prosperity in the financial markets, including the fast-growing cryptocurrency space. Featured image from DALL-E, chart from TradingView.com
American multinational investment bank Citigroup announced plans to potentially issue its stablecoin, as CEO Jane Fraser revealed during a post-earnings conference call. As first reported by Reuters, Fraser emphasized the bank’s focus on both the stablecoin initiative and the growing tokenized deposit sector, stating, “This is a good opportunity for us.” As the third-largest lender in the United States, Citigroup is also exploring solutions for reserve management related to stablecoins and providing custody services for cryptocurrency assets. Citigroup’s Plan For New Stablecoin Initiative This announcement follows a strong second-quarter performance for Citigroup, which saw its shares reach their highest levels since the 2008 financial crisis. The bank reported earnings that exceeded Wall Street expectations and unveiled plans to buy back at least $4 billion in stock, further bolstering investor confidence. Related Reading: Unraveling The Bitcoin Boom: Experts Decode Record $123,000 Surge The timing of Citigroup’s stablecoin discussions coincides with the Republican Party’s “Crypto Week,” a campaign aimed at advancing crucial legislation to establish a regulatory framework for digital assets. Among the key proposals is the GENIUS Act, designed to facilitate the adoption of stablecoins within the traditional financial ecosystem. However, the path to regulatory approval has faced challenges. Legislative Setback For Crypto President Donald Trump called for swift passage of the GENIUS Act and the CLARITY Act, promoting them as pivotal for the United States to maintain its leadership in digital assets. In a Tuesday post on Truth Social, Trump proclaimed: The House will soon VOTE on a tremendous Bill to Make America the UNDISPUTED, NUMBER ONE LEADER in Digital Assets – Nobody does it better! The GENIUS Act is going to put our Great Nation lightyears ahead of China, Europe, and all others, who are trying endlessly to catch up, but they just can’t do it. Digital Assets are the FUTURE, and we are leading by a lot! Get the first Vote done this afternoon (ALL REPUBLICANS SHOULD VOTE YES!). Despite this push, the House of Representatives voted against the bill, with the final tally standing at 196-223. Notably, 13 Republican representatives joined Democrats in opposing the motion, marking a rare instance of dissent within the party. Related Reading: TD Cowen Projects Bitcoin At $155K By Year-End, Raises Strategy’s Price Target Fox journalist Eleanor Terret reported that some House members expressed concerns that the GENIUS Act could inadvertently pave the way for a Central Bank Digital Currency (CBDC). However, the bill includes provisions explicitly prohibiting the Federal Reserve from directly offering services to the public, ensuring that it cannot authorize initiatives like digital wallets or personal accounts related to CBDCs. The ultimate fate of these crucial crypto bills in the US Congress remains to be seen, as does whether this recent decision will cause financial giants to pause their plans to issue or adopt a major stablecoin for their clients. Featured image from DALL-E, chart from TradingView.com