The U.S. Senate has made a significant breakthrough in the long-debated stablecoin regulation. In a vote held earlier this week, senators surpassed the 60-vote threshold required to advance the bill to a final vote. This development is seen as a critical turning point for the digital asset and cryptocurrency market. 

In previous votes, the bill had failed to garner sufficient support. During the May 8 session, both Democratic and Republican senators criticized the bill, stalling the process. At the time, many senators voiced concerns about inadequate consumer protections and national security measures. 

However, recent negotiations and amendments have shifted the landscape. Notably, Democratic Senators Ruben Gallego and Mark Warner announced their support for the revised bill. Gallego stated, “The previous version carried some risks, but the changes have largely addressed my concerns.” Warner expressed satisfaction with the increased focus on consumer rights. 

Senator Ruben Gallego reiterated that the amendments significantly alleviated his concerns. 

“With this vote, I look forward to continuing work on a final law that protects consumers and maintains America’s leadership in digital asset innovation,” he said. 

A New Legal Framework for Stablecoins 

The new regulation establishes clear rules for stablecoin issuers. Companies wishing to operate in the U.S. will be required to obtain a license, transparently declare their reserves, and be subject to audits. Additionally, the bill restricts large technology companies from issuing their own stablecoins, aiming to prevent private sector control over monetary policy. 

Senator Kirsten Gillibrand highlighted the role of stablecoins in the global economy, stating: 

“It is essential for the U.S. to pass legislation that protects consumers and promotes responsible innovation.” 

The bill also aims to regulate foreign companies offering stablecoins to U.S. citizens, ensuring both domestic market stability and reducing risks such as money laundering. The Senate is expected to discuss the bill in greater detail in the coming days before sending it to the House of Representatives. If both chambers approve, the law will take effect. 

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Senate Makes Progress on Stablecoin Bill with 60 Votes appeared first on Coin Engineer.

“We are concerned that consumers purchasing crypto assets through credit could fall into unsustainable debt, especially if the value of crypto assets drops and they rely on that value for repayment.”</>

FCA Ban Strategy and Reasons

The FCA states that crypto purchases with credit could lead consumers into unsustainable debt. Sudden fluctuations in the value of crypto assets can expose investors to significant losses. Authorities continuously warn consumers that crypto investments are high-risk and carry the potential for total loss.

“We are considering several restrictions, including limiting the use of credit cards to directly purchase crypto assets and using credit limits provided by an e-money firm,” it says.

This supports the goal of curbing risky investments.

The FCA noted that 14% of crypto investors used credit to purchase crypto last year, up from 6% in 2022. However, the FCA indicated it is considering exempting certain stablecoins from the proposed restrictions. This imposes transparency, consumer protection, and operational resilience standards on crypto firms, similar to those in traditional financial sectors. The Financial Conduct Authority aims to regulate the market with these rules. Reuters reports that the UK aims to collaborate with the U.S. on crypto regulations.
Hannah Meakin from the law firm Norton Rose Fulbright stated that the FCA is trying to balance innovation with appropriate oversight, saying.

“However, this is no easy task, and it remains to be seen whether they can strike the right balance.”

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post FCA Plans to Ban Crypto Investments with Credit Cards appeared first on Coin Engineer.

Risks Between the Crypto Sector and Banking Systems

The cryptocurrency industry faced the threat of being excluded from traditional banking systems under Operation Chokepoint 2.0. Jason Lau, Chief Innovation Officer at the crypto exchange and self-custody wallet provider OKX, emphasized that building strong relationships with banks and financial stakeholders serves as a strategic safeguard against debanking threats.

Lau highlighted that the traditional financial world is heavily based on trust and that building relationships with banking institutions, financial regulators, and other stakeholders is essential to maintaining strong partnerships. In an interview with Cointelegraph, Lau stated:
“You need to take the time to build relationships with all your stakeholders, including regulators and your banking partners. We’ve spent years and years working with our partners and stakeholders to make sure they understand our business.”

The Global Problem of Debanking

Many Operation Chokepoint 2.0 debanking cases originated in the United States and involved US-based entities. However, debanking continues to be a global issue with implications for business, technological innovation, and freedom of speech.

For instance, Ben Rose, the former regional manager of Binance Australia, claimed that the exchange was given only 12 hours’ notice before being debanked. The debanking, which occurred in the middle of the night, reportedly came without a clear explanation.

Debanking Cases in the United Kingdom

In July 2023, leaked documents revealed that UK politician Nigel Farage was debanked due to his political views. This led the UK government to propose revoking banks’ licenses if they violate freedom of speech.

The UK government laid out the following consumer protection provisions for banks:

• A three-month notice to customers before account closures,
• An explicit reason for account closure,
• An opportunity to appeal the closure.

In 2023, crypto companies in the UK also reported being turned away by banks. Common issues included excessive paperwork, frozen accounts, and rejected applications without sufficient explanation.

As of 2024, crypto firms and projects continue to face similar challenges.

Debanking gained widespread recognition in online platforms and digital culture, earning a spot on the 2023 Collins Dictionary’s Word of the Year shortlist.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Relationship Building as a Hedge Against Debanking: OKX Exec Speaks Out appeared first on Coin Engineer.