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Regulation

Regulation encourages the separation of income and liquidity
NFT Gaming

Regulation encourages the separation of income and liquidity

by admin August 24, 2025



Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.

Digital assets have long grappled with regulatory ambiguity, but two recently enacted United States legislative pieces are ending an era of chaos by delivering structural clarity. The Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) and the Digital Asset Market Clarity Act of 2025 (Clarity Act) are potent signals of a major shift in how digital assets are built, traded, and understood.

Summary

  • The GENIUS Act ring-fences stablecoin liquidity — requiring 1:1 backing in highly liquid assets, banning yield for simply holding, and segregating reserves to prevent rehypothecation.
  • Income and liquidity are now legally separated — yield-generating activity must happen on distinct layers or products, freeing the base liquidity layer from speculative pressure.
  • The Clarity Act defines digital commodities vs. investment contracts — giving builders a modular framework to separate utility tokens from profit-driven schemes, reducing SEC/CFTC turf wars.
  • Regulatory certainty fuels innovation — clearer rules, consumer protections, and risk disclosures are drawing praise from industry leaders and setting the stage for U.S. leadership in crypto.

Most importantly, there is now a logical basis of separation between income-generating mechanisms and underlying liquidity. Let’s unpack what that means.

How the GENIUS Act ring-fences liquidity

The GENIUS Act targets payment stablecoins with unprecedented precision, mandating that they must be 1:1 backed by highly liquid assets, like U.S. dollars or short-term treasuries. Reserves must be held in segregated accounts without re-hypothecation (the holding institute cannot use the funds). The act also explicitly prohibits interest or yield payments solely for holding, using, or retaining stablecoins.

With a separation of income and liquidity, we can unequivocally define stablecoins as a pure form of base-layer liquidity, perfect for payments, settlements, and stable value transfers. In the U.S., they are no longer a passive income vehicle, and by stripping them of their yield mechanisms, the GENIUS Act forces builders to innovate. 

For U.S.-based crypto investors, any yield-generating activity involving stablecoins must now take place on a separate layer or financial product, distinct from the stablecoin itself. Some may not be thrilled by this news, but this regulatory clarity ensures that speculative yield expectations unburden the liquidity layer. This will force disruption in one of the most widely adopted use cases for cryptocurrency. 

The Clarity Act is an architect for modular systems

Complementing the GENIUS Act is the Digital Asset Market Clarity Act of 2025 (H.R. 3633). This passed the House and is heading to the Senate, aiming to resolve the longstanding jurisdictional ambiguities between the SEC and CFTC. It introduced statutory definitions for various digital assets, notably distinguishing “digital commodities” from “investment contracts.”

From now on, digital commodities will be those that derive their value from utility within a network. Investment contracts, however, will be vehicles through which a profit expectation from the efforts of others is conveyed. The core utility token (now a digital commodity) will be separated from any associated investment schemes or yield-generating activities (now investment contracts). This clarity will empower projects to build modular systems and go to market without worrying that the SEC may challenge their activities. 

Yield-bearing layers vs. Base-layer liquidity

There’s now a framework in place to separate the different functions of a blockchain system and regulate them accordingly. This is thanks to the Clarity Act’s provisions regarding tailored registration for digital commodity offerings and its recognition of “Decentralized Systems” and “Decentralized Finance Trading Protocols”. Consider this a kind of regulatory sandbox and definitive demarcation line between “yield-bearing layers” and “base-layer liquidity”. These are terms we will be seeing used more frequently. 

The eventual outcome of this decoupling is that transparency and proper disclosure are achieved, ensuring users (and builders) understand the risks associated with yield. Builders gain clearer pathways to design compliant products, while investors know exactly what they’re getting into. 

Predictability provides the confidence and trust to attract substantial capital, while the U.S. taking this unique stance could inspire a great deal of domestic innovation and leadership. Sure, there will be implementation challenges and friction ahead, but this is a real moment of maturation for crypto in the U.S. 

A new dawn of certainty

Experts generally echo positive sentiment about this change. Forbes, for example, has lauded the acts for providing much-needed clarity, reducing “jurisdictional turf wars,” and setting the stage for institutional engagement. Paul Grewal, Chief Legal Officer at Coinbase, noted:

“GENIUS is now the law of the land. Coinbase and crypto policy across the industry are committed to sensible rules for stablecoins and got it done. It’s been a good day.” 

Ji Hun Kim, President and Acting Chief Executive Officer, Crypto Council for Innovation, stated that the GENIUS Act “includes important consumer protections, such as segregating customer funds, bankruptcy procedures, addressing conflicts of interest, and requiring risk disclosures of operation, ownership, and structure. We strongly support these requirements that would protect consumers and their funds.”

These powerful regulatory design signals are confidently reshaping digital assets, compelling necessary separations and modularity. Ultimately, they encourage much-needed innovation of the liquidity and yield-bearing layers by legally protecting them and their architectures. The Gensler era is over, as the GENIUS era begins.

Andrei Grachev

Andrei Grachev is the managing partner of DWF Labs, a new-generation web3 investor and one of the world’s largest high-frequency trading entities in the digital asset space. Under his leadership, DWF Labs operates across more than 60 top exchanges, executing sophisticated trading strategies in both spot and derivatives markets, while actively investing in and supporting web3 projects globally. Andrei is also the managing partner of Falcon Finance, a next-generation synthetic dollar protocol. Falcon’s flagship asset, USDf, is an overcollateralized synthetic dollar backed by diversified crypto and real-world assets. Built for sustainable yield and capital preservation, Falcon combines transparency, institutional-grade risk management, and composability, setting a new standard for synthetic finance in a regulated future. Known for his deep understanding of market dynamics, infrastructure development, and digital asset economics, Andrei sits at the intersection of crypto finance and long-term ecosystem building. His work continues to shape the global conversation around stablecoins, synthetic assets, and the evolution of on-chain capital markets.



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August 24, 2025 0 comments
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Pay rises, AI regulation, and layoff protection: what Activision Blizzard's newly unionised employees want from Microsoft
Game Updates

Pay rises, AI regulation, and layoff protection: what Activision Blizzard’s newly unionised employees want from Microsoft

by admin August 22, 2025


Last week, Activision Blizzard’s Story and Franchise Development team (SFD) announced to the world it had unionised alongside the Communications Workers of America (CWA). As of writing, a neutrality agreement is in place while negotiations for a union contract are in the works.

It is not the first time the push for unionisation has surged at Activision Blizzard. Three months ago the Overwatch team unionised, 500 staff from the World of Warcraft team unionised last year, and Raven Software recently ratified its first union contract.

But as yet another wave of layoffs have been made at the company as part of Microsoft’s massive cuts across its gaming studios, this push for employee representation appears more necessary than ever.

To find out more about this next stage in Blizzard’s unionisation efforts, as well as what those at the SFD department want, I talked to two recently unionised Blizzard employees about what’s next for the team going forward.

Check out the new World of Warcraft cinematic here!Watch on YouTube

“The industry has had a lot of instability over the last few years, studios have been hit with layoffs, closures, game cancellations. I feel like it’s the most profitable entertainment sector in the world, and the people who work in it should have a piece of that and some stability to their working conditions.”

That was Alison Venato, video editor on the SFD team and one of many people responsible for Activision Blizzard’s incredibly popular cinematics across Overwatch and Diablo. The team and her have found themselves at the centre of a seemingly ever-shifting company in recent years, where it has proven hard to find stability.

“There’s been a lot of leadership changes over the past few years,” states Veneto, “and we feel like getting a union contract will give us some stability no matter what shake-ups happen at the company. We’ve had others that have unionised on the Warcraft and Overwatch teams, and we’ve had a wave of layoffs hit us since the Microsoft acquisition.

“We understand companies need to make money, but we were bought in the largest tech acquisition of all time, so obviously we have value. Our union can work with the leadership to create a situation that’s beneficial to everyone.”

Microsoft spent $75.4b on Activision Blizzard, for Call of Duty, World of Warcraft, and more. | Image credit: Activision

Sammi Kay, associate producer at Blizzard SFD, shares Venato’s desire to protect the developer’s ability to create the excellent work, without fear of reprisal from an industry disconnected from the realities of modern day video game development

“The industry has been expanding quite rapidly, especially since the pandemic when everyone was playing video games – myself included,” she said. “There’s a disconnect between what the companies and leadership are expecting from the industry and the workers who are developing that content.”

Kay elaborates on the feeling of the developers on the ground at Blizzard: “Everyone at Blizzard who has had a long tenure here enjoys the team, and there’s this sentiment that Blizzard is a special place. Things have changed due to many factors, including the pandemic, and the age of Blizzard as a company and it evolving, including with the acquisition by Microsoft. We’re unionising because we’re attached to how special Blizzard is […] We want to protect what we have and make it better.”

There’s a lot of love for Blizzard games, even after all this time. | Image credit: Blizzard.

So what do the folks at the SFD department want? Many concerns shared by those recently unionised at Blizzard are similar to those expressed elsewhere in the industry. Namely the issues of pay, AI regulation, and layoff protections.

“Everyone is talking about the same issues,” expressed Veneto. “Pay is always an issue – we live in Irvine which is always expensive. Layoff protections are important given the waves of layoffs [we’ve seen]. Work from home policies are very important to people, and AI obviously is having a huge impact. Plus, we’ve had things that were outsourced that we’d rather have in-house.

Then there’s the “big issue” of transparency, a key demand for those who feel ambushed by years of sudden changes. “A lot of decisions are made about pay and promotions that we have no insight into. So just having some more information there is key. For me and other people in SFD we’re all doing creative work, and a lot of these problems make it hard to be creative. A more stable environment where we have a contract that allows us to do this would be great […] I want to work with the best people on the best work.”

World of Warcraft’s story is in the midset of a major overhaul, deep into the trilogy of expansions that started with The War Within. | Image credit: Blizzard

As for Kay, while they are hesitant to speak on behalf of the whole department, AI regulation and pay are at the top of their list: “For me I would hope for better pay rises that keep pace or ahead of inflation,” they said. “More considerations with the use of AI, what that means as a tool for us at SFD and its implications moving forward. I think there’s very specific discussions on that for those in SFD in particular that should happen. I think it would be prudent to negotiate what layoff protections look like as well as severance packages.”

However, given Kay’s background in film and TV prior to Blizzard, they’re keen to avoid the temp-worker-focused dynamic found in other entertainment industries. “Having gone from contract work to full time was wonderful, and I want that opportunity to be available for more people,” they said. “From discussions I’ve had, there’s movement towards more contract roles being the norm, and that’s not in the best interest of Blizzard and its employees.”

Ultimately it’s a big win for the SFD team, and another blow landed in the ongoing fight for unionisation in the video game industry. With layoffs and closures happening at an alarming rate, one can only hope negotiations go well for all involved.

So how good a shot does the SFD department have at getting what they want, and what’s the deal with what certainly feels like a growing push for unionisation in the video game industry? To find more, I spoke to Scott Alsworth from the UK’s IWGB Union.

He credits the increase in unionisation efforts to several factors: technological displacement (especially poignant with the push for AI), a greater number of working class people joining the video game industry who bring a greater awareness of unionisation, and a response to the state of the industry as a whole.

The UVWCWA is one such union that has seen a surge of members, including the Blizzard SFD team. | Image credit: Communications Workers of America

“People are angry,” said Alsworth “The feeling in the industry is one of frustration. The biggest factor to the growth in unionisation is a widespread response to mass layoffs across the industry. Everybody knows someone who has been impacted, and people see unions as insurance and a way to help them keep their job, or at least a way to get extra help if they’re made redundant.

“It’s a bit of a self-fulfilling prophecy,” he continued “Once unions are there people start joining and you gain momentum. When I’m talking to people about joining a union there are two reasons: the first a basic self preservation, what a union can do for me. The second is a desire to see the industry change, not just for themselves, but for workers everywhere.”

So what sort of protections can be gained? It depends on whether or not the union is recognised by the company in question. But even before any new contract is signed, the SFD department forming a union provides valuable resources.

“In the case of a large-scale layoff, what we can do is make sure the studio is doing things by the book,” said Alsworth “You’d be surprised how many studios cut corners and don’t do things like they’re supposed to do. At IWGB we have a great legal team, and that’s a great resource for us. I can safely say that in a number of cases, things like labour laws haven’t been adhered to. Once we raise that with our legal team, the studio gets spooked and you start to see concessions.”

Then of course as a collective the union has have options like strike action which becomes feasible to organise while unionised, better access to information and council in regard to contracts and an individual’s rights as a worker, and so on. Even as negotiations are in their early stages, the Blizzard SFD department has gained a few tools for its tool belt.

So the decision to unionise is a great first step for those at Activision Blizzard seeking better working conditions. Getting a proper contract in place, getting recognition from the company and solidifying a place within the legendary developer will surely be a hard and arduous process. But it’s a process many are eager to engage in, especially at a time when instability is becoming the norm in an industry gaining a reputation for its troubled nature.



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August 22, 2025 0 comments
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The U.S. is blocking state AI regulation. Here’s what that means for every business

by admin August 18, 2025



Congress didn’t just reshape tax codes with the “One Big Beautiful” bill; it also quietly reshaped the future of artificial intelligence. A lesser-known provision of the sweeping legislation is now on its way to becoming law: a 10-year freeze on state-level AI regulation.

In other words, no individual state can pass rules that govern how businesses develop or use AI systems. The message is clear for companies rushing to embed AI in daily operations: govern yourselves or risk learning the hard way why guardrails matter.

Nichole Windholz

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AI isn’t a side project anymore. It’s already embedded in cybersecurity platforms, CRMs, internal chat tools, reporting dashboards and customer-facing products. Even mid-size organizations are training AI models on proprietary data to speed up everything from supplier selection to contract analysis.


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However, the adoption curve has outpaced internal checks. Many teams are greenlighting tools without understanding how they were trained, what data they retain or how outputs are validated. IT leaders often discover AI use well after it’s already operational. This kind of shadow Ai creates a major risk surface.

And now, with state-level oversight blocked for a decade, there’s no outside pressure forcing organizations to establish policies or baseline rules. This shift pushes businesses to take even more responsibility for what happens inside their walls.

Without guardrails, AI can drift; fast

AI models aren’t static. Once deployed, they learn from new data, interact with systems and influence decision-making. That’s powerful but also unpredictable.

Left unchecked, an AI-driven forecasting tool might rely too heavily on outdated patterns, causing overproduction or supply chain bottlenecks. A chatbot designed to streamline customer service could unintentionally generate biased or off-brand responses.

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Meanwhile, generative models trained on sensitive business documents can inadvertently expose proprietary information in future prompts. For example, a study released in January 2025 found that nearly 1 in 10 prompts used by business users when interacting with generative AI (GenAI) tools could inadvertently disclose sensitive data.

These aren’t abstract dangers; they’ve already appeared in public incidents. But it’s not just PR damage that’s at stake. AI errors can affect revenue, data security and even legal exposure. The absence of regulatory pressure doesn’t make these issues go away – it makes them easier to miss until they’re too big to ignore.

The smart play is internal governance: before you need it

Organizations are eager to integrate GenAI, with many teams already using these powerful tools in daily operations. This rapid adoption means that just passively monitoring things isn’t enough; a strong governance structure is crucial, one that can adapt as AI becomes more central to the business.

Setting up an internal AI governance council, ideally with leaders from IT, security, compliance and operations, offers that vital framework. This council isn’t there to stop innovation. Its job is to bring clarity. It typically reviews AI tools before they’re rolled out, sets clear usage policies and works with teams so they fully understand the benefits and limits of the AI they’re using.

This approach reduces unauthorized tool usage, makes auditing more efficient and helps leadership steer AI strategy with confidence. However, for governance to be effective, it must be integrated into broader enterprise systems, not siloed in spreadsheets or informal chats.

GRC platforms can anchor AI governance

Governance, risk and compliance (GRC) platforms already help businesses manage third-party risk, policy enforcement, incident response and internal audits. They’re now emerging as critical infrastructure for AI governance as well.

By centralizing policies, approvals and audit trails, GRC platforms help organizations track where AI is being used, which data sources are feeding it, and how outputs are monitored over time. They also create a transparent, repeatable process for teams to propose, evaluate and deploy AI tools with oversight so innovation doesn’t become improvisation.

Don’t count on vendors to handle it for you

Many tools advertise AI features with a sense of built-in safety, which includes privacy settings, explainable models and compliance-ready dashboards. But too often, the details are left up to the user.

If a vendor-trained model fails, your team will likely bear the operational and reputational costs. Businesses can’t afford to treat third-party AI as “set and forget.” Even licensed tools must be governed internally, especially if they’re learning from company data or making process-critical decisions.

The bottom line

With the U.S. blocking states from setting their own rules, many assumed federal regulation would follow quickly. However, the reality is more complicated. Draft legislation exists, but timelines are fuzzy, and political support is mixed.

In the meantime, every organization using AI is effectively writing its own rulebook. That’s a challenge and an opportunity, especially for companies that want to build trust, avoid missteps and confidently lead.

The organizations that define their governance now will have fewer fire drills later. They’ll also be better prepared for whatever federal rules eventually arrive because their internal structure won’t need a last-minute overhaul.

Because whether or not rules are enforced externally, your business still depends on getting AI right.

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This article was produced as part of TechRadarPro’s Expert Insights channel where we feature the best and brightest minds in the technology industry today. The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc. If you are interested in contributing find out more here: https://www.techradar.com/news/submit-your-story-to-techradar-pro



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August 18, 2025 0 comments
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Crypto Trends

‘Global Response’ to Crypto Regulation Needed as US Advances GENIUS Act: FCA

by admin June 18, 2025



In brief

  • U.K. Financial Conduct Authority official Jane Moore warned that a “global response” to crypto regulation is essential.
  • Lord Chris Holmes argued that “right-size regulation” benefits innovation and investment, stating that only “grifters and chancers” want a regulatory-free environment.
  • European officials expressed concern about U.S. dollar-based stablecoins potentially dominating retail payments in Europe, highlighting the geopolitical implications of crypto regulation.

A senior official at the U.K. Financial Conduct Authority, or FCA, warned a “global response” to crypto is crucial to prevent regulatory arbitrage.

Speaking at DigiAssets 2025, Jane Moore said the British agency is keeping a close eye on developments in the U.S. Just a day earlier, the Senate passed its first major piece of crypto legislation in the form of the GENIUS Act—a framework for issuing and trading stablecoins.

Moore went on to argue that a “culture of compliance” within digital asset firms would ultimately result in safer products for consumers.

Lord Chris Holmes, who sits in Britain’s upper legislative chamber, added that he believes “we’re about to enter a very positive period for regulation in the U.K.”

But he stressed that stakeholders in the digital assets space—from investors to entrepreneurs—shouldn’t have the right to “moan” about regulations unless they get involved in the consultations led by the FCA. During the panel, he argued right-size regulation “is good for innovation, good for investment, good for consumers, for creatives, for citizens and for countries.”

“The only people who want a regulatory-free environment are the grifters and the chancers,” Lord Holmes said. “If you’re seeking to set up, scale and develop a bona fide business, you should always want right-size regulation.”

The Conservative peer added that, whether measured in trillions of dollars or as a percentage of GDP, the influence of digital assets will only grow over time.

“We are into this space, we are interested in this space, we understand that whichever stat, whichever figure you take, digital assets are material and only going in one direction,” he told the audience.

Cryptio’s chief revenue officer Hemant Pandit argued that the regulatory moves made in the U.K. and EU still matter, even if the U.S. is “moving full steam ahead” and regarding stablecoins as a way of achieving dollar dominance.

That point was underlined by Christian Moor, a senior policy expert at the European Central Bank.

“It’s going to be interesting to see if stablecoins become a payment method in the retail space in Europe,” he said, “and if it’s based on the dollar, that’s obviously a serious issue.”

Edited by Stacy Elliott.

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June 18, 2025 0 comments
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South Korea Moves Forward With Crypto Regulation, Eyes Stablecoin Oversight
Crypto Trends

South Korea Moves Forward With Crypto Regulation, Eyes Stablecoin Oversight

by admin June 11, 2025


Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

A South Korean lawmaker has introduced a comprehensive bill aimed at establishing a more structured regulatory environment for crypto assets in the country. The proposed legislation, known as the Digital Asset Basic Act, was announced Tuesday by Min Byeong-deok, a member of the ruling Democratic Party.

The bill is designed to complement the Virtual Asset Investor Protection Act, which took effect in July 2024, by going beyond investor safeguards to define a broader legal foundation for digital asset activity.

Aligning with Global Stablecoin Trends

At a press conference, Min described the bill as a step toward positioning South Korea as a global leader in the digital economy. A key feature of the legislation is the implementation of a licensing system for stablecoin issuers.

Under the proposed rules, stablecoin operators would be required to hold a minimum of 500 million Korean won (approximately $367,890) in owner’s capital to qualify for a license. This requirement is intended to ensure financial accountability and support the government’s broader goal of promoting Korean won-denominated stablecoins.

The stablecoin licensing provision appears to support the administration’s broader policy agenda under President Lee Jae-myung, who previously committed to enabling a domestic stablecoin market.

Min, who led the digital asset committee during President Lee’s election campaign, indicated that the measure aims to curb capital flight through foreign-currency-based stablecoins and support a robust local digital financial system.

The legislative push follows similar developments in other jurisdictions. In the United States, the Genius Act, which addresses stablecoin regulation, is gaining traction with support from President Donald Trump. Meanwhile, Hong Kong recently enacted its own licensing framework for stablecoin issuers.

These international examples appear to inform South Korea’s approach, as Min highlighted parallels with regulatory practices in the US, European Union, and Japan,particularly regarding the issuance, distribution, and trading of digital assets.

Establishing Broader Oversight of Digital Assets

Beyond stablecoins, the Digital Asset Basic Act seeks to provide legal clarity on digital asset classifications and the responsibilities of service providers operating within the ecosystem.

The bill includes provisions for the creation of a Digital Asset Committee to be directly overseen by the Office of the President, emphasizing a centralized oversight mechanism.

In addition to structural reforms, the proposed legislation outlines legal frameworks to address market misconduct. These include penalties for unfair trading practices such as price manipulation or the dissemination of false information, areas not directly addressed by prior laws.

The bill also includes measures to standardize compliance procedures for exchanges and custodians operating in the country. If enacted, the Digital Asset Basic Act would mark a significant step in the evolution of South Korea’s crypto regulatory space.

As jurisdictions around the world continue to develop their approaches to digital finance, South Korea’s proposed framework positions it among the countries seeking to balance innovation with oversight. The bill is expected to undergo further review and discussion in the National Assembly in the coming months.

The global digital currency market cap valuation. | Source: TradingView.com

Featured image created with DALL-E, Chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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June 11, 2025 0 comments
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Ripple’s Brad Garlinghouse Says CRCL IPO Signals U.S. Stablecoin Regulation Ahead

by admin June 11, 2025



SINGAPORE – Brad Garlinghouse, CEO of crypto company Ripple Labs, stated at the XRP Ledger Apex, the Ripple (XRP) community conference in Singapore, that he remains bullish on stablecoins – a sentiment he said is reinforced by the recent blockbuster Circle initial public offering (IPO).

“Circle IPO’s clearly went very well. That’s a reflection of investor interest in crypto, both institutions and retail. The financial future will be blockchain-based,” Garlinghouse said at Apex.

Garlinghouse said that one factor in the success of Circle’s IPO is the market’s fundamental belief that the GENIUS Act – the U.S. stablecoin legislation – will pass.

As CoinDesk previously reported, the GENIUS Act, a stablecoin regulatory bill, is poised for imminent Senate passage with bipartisan support, potentially moving to the House and becoming law by August recess.

“Regulatory headwinds have now become tailwinds in the U.S., and that’s good for the global landscape,” Garlinghouse continued. “It’s not deregulation that we want, and we are asking for clear regulation, and progress is evident.”

Other jurisdictions have also recently passed stablecoin legislation, such as Hong Kong. Korea’s new administration is also said to be working on a stablecoin bill.

Garlinghouse declined to comment on a potential Ripple-Circle merger or acquisition.

Apex continues in Singapore through Wednesday.



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June 11, 2025 0 comments
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Bitcoin market of 2025 driven by stablecoin regulation: Finance Redefined
Crypto Trends

Bitcoin market of 2025 driven by stablecoin regulation: Finance Redefined

by admin June 6, 2025



Despite a week of price consolidation for Bitcoin (BTC), emerging digital asset legislation may provide the next significant catalyst for the world’s first cryptocurrency.

Upcoming stablecoin rules, such as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, may lay the foundation for a Bitcoin cycle top of over $150,000, according to Alice Li, investment partner and head of US at crypto venture capital firm Foresight Ventures.

Meanwhile, venture capitalist (VC) interest has slumped. The number of VC deals closed recorded its lowest month of the year in May, with just 62 investment rounds resulting in $909 million raised.

Crypto fundraising trends, monthly chart. Source: Rootdata

A challenging “macro backdrop” paired with “higher-for-longer policy rates, jittery bond markets and fresh tariff headlines have made it harder for risk assets to get new M&A deals over the finish line,” Patrick Heusser, head of lending at Sentora and a former investment banker, told Cointelegraph.

Bitcoin reserve, stablecoin regulations big 2025 market catalysts, says VC

Improving regulatory clarity in the United States may push Bitcoin past $150,000 during the current market cycle, according to Alice Li, investment partner and head of US at crypto venture capital firm Foresight Ventures.

During Cointelegraph’s Chain Reaction X Spaces show on June 3, Li said the crypto market’s 2025 rally had been driven mainly by shifting US policy.

“One of the strongest drivers is definitely the policy change,” she said, referencing US President Donald Trump’s Bitcoin reserve approval and stablecoin policy developments as the main catalysts for Bitcoin price upside in 2025.

“Stablecoin will be one of the strongest places that I would invest long term,” she added, citing regulatory progress in the US.

Source: Cointelegraph

Li’s comments came as the industry was awaiting a full Senate vote on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which aims to set clear rules for stablecoin collateralization and mandate compliance with Anti-Money Laundering laws.

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Ethereum reclaims DeFi market as bots drive $480 billion stablecoin volume

The Ethereum network is staging a comeback in 2025 as bot-driven activity and stablecoin growth push the mainnet back into the center of decentralized finance (DeFi). 

On June 4, crypto trading platform Cex.io reported that automated bots facilitated 4.84 million stablecoin transfers on Ethereum’s layer-1 blockchain in May. The volume reached $480 billion, its highest to date. 

Illia Otychenko, the lead analyst at crypto exchange Cex.io, linked the activity surge to lower transaction fees in the first quarter of 2025, which helped reverse a multi-year trend of liquidity and user migration to rival blockchains and Ethereum layer-2 networks. 

Because of this, the mainnet’s stablecoin market capitalization grew by 11% in 2025, taking market share away from its layer-2s. While the mainnet recouped stablecoin market share, the combined stablecoin market on L2s only shrank by 1%.  

Ethereum stablecoin market cap year-to-date change within the Ethereum ecosystem. Source: Cex.io

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Binance co-founder CZ proposes dark pool DEXs to tackle manipulation

Binance co-founder Changpeng “CZ” Zhao proposed creating a dark pool perpetual swap decentralized exchange (DEX) to prevent market manipulation.

In a June 1 X post, Zhao said he has “always been puzzled with the fact that everyone can see your orders in real-time on a DEX.”

“The problem is worse on a perp DEX where there are liquidations,” he said.

Zhao added, “If you’re looking to purchase $1 billion worth of a coin, you generally wouldn’t want others to notice your order until it’s completed.” This is to prevent front-running and maximum extractable value (MEV) bot attacks, which can result in increased slippage, worse prices and higher costs.

His comments followed the liquidation of nearly $100 million in Bitcoin long positions on Hyperliquid reportedly held by a trader known as James Wynn. The event, which occurred after Bitcoin fell below $105,000, sparked claims on X that some users had coordinated to “hunt” Wynn’s liquidation.

Source: CBB

One X user claimed that Tron co-founder Justin Sun showed interest in participating, but the claim remained unconfirmed. He also went so far as to invite Eric Trump, the son of US President Donald Trump, to the group.

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RWA token market grows 260% in 2025 as firms embrace regulating crypto

The tokenization of real-world assets (RWAs) surged in the first half of 2025 as increased regulatory clarity fueled broader adoption of blockchain-based financial products.

Real-world asset tokenization refers to financial and other tangible assets minted on the immutable blockchain ledger, increasing investor accessibility and trading opportunities for these assets.

The RWA market surged more than 260% during the first half of 2025, surpassing $23 billion in total valuation. It was $8.6 billion at the beginning of the year, according to a Binance Research report shared with Cointelegraph.

Tokenized private credit led the RWA market boom, accounting for about 58% of the market share, followed by tokenized US Treasury debt, which accounted for 34%.

“As regulatory frameworks become clearer, the sector is poised for continued growth and increased participation from major industry players,” the report said.

RWA market total value, all-time chart. Source: Binance Research

RWAs have no dedicated regulatory framework and are considered securities by the US Securities and Exchange Commission (SEC). However, the sector still benefits from regulatory developments in the broader crypto space.

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BitoPro confirms $11.5 million exploit, says withdrawals unaffected

Taiwan-based cryptocurrency exchange BitoPro confirmed a security breach that led to the loss of more than $11.5 million in digital assets from its hot wallets on May 8.

The suspicious transactions, which occurred across hot wallets on Ethereum, Tron, Solana and Polygon, saw asset outflows to decentralized exchanges (DEXs) where they were later marked as sold, according to onchain investigator ZachXBT.

Despite the incident, BitoPro did not disclose the exploit on X or Telegram for several weeks, ZachXBT said in a June 2 post on X.

BitoPro suspicious transactions, notice. Source: ZachXBT

Blockchain data showed assets were deposited into cryptocurrency mixer Tornado Cash or bridged to Bitcoin via THORChain, patterns often employed by hackers to make funds anonymous and untraceable.

On May 9, BitoPro announced a maintenance period for the exchange, which was resolved on the same day. However, many users have since reported being unable to withdraw USDt (USDT).

Three weeks after the incident, BitoPro confirmed it had suffered a wallet exploit. In a June 2 Telegram post, the exchange said the breach occurred during a wallet system upgrade, when an attacker exploited an “old hot wallet” during internal fund reallocation.

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DeFi market overview

According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the red.

The DeXe (DEXE) token fell over 30%, staging the biggest decline in the top 100, followed by the Virtuals Protocol (VIRTUAL) token, down 24% on the weekly chart.

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.



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June 6, 2025 0 comments
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Chair Paul Atkins Says It’s a ‘New Day’ for the SEC, Calls for ‘Rational’ Crypto Regulation

by admin June 4, 2025



In brief

  • SEC Chair Paul Atkins said Tuesday the agency will prioritize “clear rules of the road” for crypto.
  • He testified that investor protection and innovation require regulatory clarity.
  • But some lawmakers are pushing for the CLARITY Act to shift oversight away from the SEC.

U.S. Securities and Exchange Commission Chair Paul Atkins is continuing on his crusade to bring a “new day” to the SEC and shift the agency’s stance toward digital assets. 

Testifying before the Senate Appropriations Subcommittee on Financial Services and General Government on Tuesday, Atkins vowed to pursue a “rational regulatory framework” for crypto assets, prioritizing rulemaking and transparency over enforcement actions.

“Clear rules of the road are necessary for investor protection against fraud—not the least to help them identify scams that do not comport with the law,” he said.

“Policymaking will be done through notice and comment rulemaking, not through regulation-by-enforcement,” Atkins added.



Atkins, a veteran of the SEC, was confirmed in April after a lengthy and partisan nomination process.

His return marks a stark departure from the approach taken by his predecessor, Gary Gensler, whose tenure was marked by enforcement actions against crypto firms and a broad interpretation of securities laws that made him unpopular with the crypto industry.

Since Gensler’s exit, the SEC has dropped several high-profile lawsuits, first under interim chair Mark Uyeda and then under Atkins, and has issued guidance for multiple categories of crypto, including exempting certain staking activities from securities regulation.

The agency’s evolving posture comes amid growing momentum in Congress to strip the SEC of its authority over crypto altogether.

Last week, lawmakers introduced the CLARITY Act, which would amend securities laws to exempt most crypto assets from SEC jurisdiction and establish a new legal framework.

“Our bill secures American dominance, democratizes digital assets, unleashes innovation, and protects consumers from fraud,”Rep. Bryan Steil (R-WI), chair of the House’s Financial Services Subcommittee, said at the time.

Democratic staffers on the House Financial Services Committee have criticized the SEC for withholding an impact analysis of the bill, raising concerns that the proposal could create loopholes for traditional finance under the guise of blockchain adoption.

Atkins acknowledged the shifting legislative landscape but emphasized the role of the SEC’s new Crypto Task Force and upcoming DeFi roundtable in supporting innovation. 

“I anticipate benefits from this market innovation for efficiency, cost reduction, transparency, and risk mitigation,” he said.

Edited by Sebastian Sinclair

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June 4, 2025 0 comments
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