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Seeds of Wisdom
STABLECOIN LEGISLATION SHOULDN’T FORCE ISSUERS TO COMPLY WITH BANK SECRECY ACT: REP. TOM EMMER
House Majority Whip Tom Emmer thinks stablecoin bills under discussion on Capitol Hill should remove language forcing issuers to comply with stringent anti-money laundering laws.
In a potential sign of brewing tensions regarding key language in multiple stablecoin bills circulating in Congress, House Majority Whip Tom Emmer (R-MN) said this week he doesn’t believe stablecoin issuers like Tether should have to comply with the anti-money laundering Bank Secrecy Act—a major sticking point of both the Senate’s stablecoin-focused GENIUS Act, and the House’s parallel STABLE Act.
Including such a provision in the legislation could box out foreign issuers while favoring U.S. companies, since U.S.-based entities are currently better equipped to meet stricter demands. The lawmaker believes stablecoin issuers, regardless of jurisdiction, should not be subject to the stringent anti-money laundering rules under the Bank Secrecy Act.
“The protections the so-called Bank Secrecy Act is supposed to provide were drafted for cash, and this is blockchain-driven,” Emmer told Decrypt Wednesday evening. “And guess what, everything on the blockchain is open and transparent to people who understand how to follow code.”
“It’s pretty interesting to say that the Bank Secrecy Act—which doesn’t even contemplate this type of technology, a digital asset—should be what we’re using,” the congressman added.
Stablecoins are digital assets typically pegged to the U.S. dollar and designed to keep a steady price. They’re used by cryptocurrency traders to enter and exit positions without the need for dollars, and used as dollar equivalents in markets where dollars are restricted or inaccessible.
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The latest drafts of the GENIUS Act and STABLE Act treat all stablecoin issuers as financial institutions under the Bank Secrecy Act. The law, enacted in 1970, established a stringent set of proactive anti-money laundering rules that American banks must comply with in order to operate.
The Bank Secrecy Act, for example, obligates regulated institutions to engage in suspicious activity monitoring, undergo routine audits, hire compliance officers, and adopt a customer identification program mandated by the Patriot Act—the controversial law that expanded government surveillance powers shortly after the September 11, 2001, t-------t attacks.
Such requirements would pose quite a hurdle for existing foreign stablecoin issuers like Tether, the company behind USDT and the market’s undisputed leader. Tether, whose USDT stablecoin boasts a market capitalization in excess of $144 billion, is based in the U.S. V----n Islands, and plans to move to El Salvador—but nonetheless is one of the world’s biggest purchasers of U.S. Treasuries, which it uses as collateral to back its U.S. dollar-pegged stablecoin.
In its current setup, Tether enjoys much less strict regulation than the Bank Secrecy Act would mandate, and the company’s leadership has implied that moves to force all stablecoin issuers to comply with such rules would hurt the firm and aid its competitors.
By contrast, Circle, the issuer behind the market’s second-largest stablecoin USDC, is already based in the United States. The company is regulated as a money transmitter by the New York Department of Financial Services and as such must already comply with the Bank Secrecy Act.
Circle is also already in compliance with the European Union’s elaborate MiCA regulatory framework, a move Tether has resisted.
As stablecoin legislation in the U.S. nears a crescendo, questions have emerged regarding whether Tether would come to the United States if it had to comply with the Bank Secrecy Act—or, alternatively, what would happen if the stablecoin market’s top player was boxed out of American financial markets.
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Emmer does not want to risk locking Tether, or any other foreign issuer, out of the burgeoning U.S. stablecoin sector.
“We’ve got to let everybody compete in this space,” he said.
That doesn’t mean Tether wouldn’t have to comply with certain rules in order to operate in the United States. To Emmer, the sticking point is proof of reserves—showing the government that your token is backed up with sufficient collateral to keep its value pegged to the dollar even in periods of market volatility.
To that end, Emmer believes Tether is, broadly speaking, doing well. In 2021, the company partnered with Wall Street firm Cantor Fitzgerald to help custody some of the $92 billion worth of U.S. Treasuries it claims to currently hold in reserve.
“Tether has done a great job straightening itself out in the last four years,” Emmer said.
The House Financial Services Committee is set to mark up the STABLE Act during a session next week. Meanwhile, the GENIUS Act already passed out of the Senate Banking Committee earlier this month with strong bipartisan support—Bank Secrecy language intact. It is likely to face a full vote on the Senate floor in the coming months.
@ Newshounds News™
Source: Decrypt
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US BANKS GAIN CRYPTO ACCESS AS FDIC REVOKES APPROVAL RULE
▪️ The FDIC has reversed its 2022 policy requiring banks to get pre-approval for crypto activities.
▪️ This policy shift, driven by new leadership and industry advocacy, signals a move towards clearer regulatory guidelines.
▪️ The FDIC’s action, along with similar moves by the OCC, reflects a broader regulatory adjustment in response to the maturing crypto industry.
The Federal Deposit Insurance Corporation (FDIC) has officially scrapped its 2022 rule that required banks to get approval before engaging in crypto activities. For years, banks interested in digital assets were stuck in limbo, waiting for approvals that never came. Now, that roadblock is gone.
With fewer regulatory hurdles, will banks finally embrace digital assets, or will caution still hold them back? Here’s what the new guidance means and why it matters.
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FDIC Gives Banks the Go-Ahead for Crypto
In its updated guidance, the FDIC stated that banks under its supervision can engage in crypto-related activities as long as they properly manage the risks involved.
“FDIC-supervised institutions may engage in permissible activities, including activities involving new and emerging technologies such as crypto-assets and digital assets, provided that they adequately manage the associated risks.”
Like any financial activity, banks must assess potential risks, follow consumer protection and anti-money laundering rules, and consult with regulators when needed.
FDIC’s Role in the Crypto Banking Crackdown
The FDIC oversees many smaller banks and plays a key role in protecting the financial system. However, it was also involved in what many call a crypto banking crackdown. A lawsuit involving Coinbase revealed that the FDIC had quietly warned banks to avoid working with crypto companies while drafting new rules—but never actually put those rules in place.
A Shift Under Trump’s Administration
This policy change comes after President Trump appointed leaders who support the crypto industry and encouraged regulators to take a more open approach. FDIC Acting Chairman Travis Hill said this move corrects the agency’s flawed approach over the past three years.
“I expect this to be one of several steps the FDIC will take to lay out a new approach for how banks can engage in crypto- and blockchain-related activities in accordance with safety and soundness standards,” he noted.
Regulators Easing Restrictions on Crypto
Bo Hines, head of the White House’s Digital Assets Advisory Council, called the decision a “huge step forward” in a social media post. Previously, the FDIC, Federal Reserve, and Office of the Comptroller of the Currency (OCC) all required banks to get pre-approval before working with crypto.
The OCC recently reversed its 2022 guidance, which was introduced during a time of instability in the digital asset industry. That period saw major company failures and high-profile fraud cases, including the collapse of crypto exchange FTX. These recent regulatory changes signal a shift in how US regulators view the crypto industry, possibly paving the way for more mainstream adoption.
@ Newshounds News™
Source: Coinpedia
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Source: Dinar Recaps
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XRP NEWS: SEC COULD DELAY ITS ANNOUNCEMENT UNTIL AUGUST 7? HINT XRP MEMBER!
▪️ Ripple vs. SEC lawsuit nears conclusion, but delays raise uncertainty for XRP.
▪️ XRP supporter claims SEC will stay silent on the case until August 7.
▪️ Ripple’s legal chief suggests settlement paperwork is done, awaiting SEC’s final decision.
The long-running legal fight between Ripple and the U.S. Securities and Exchange Commission (SEC) is nearing its final chapter. With both sides dropping their respective appeals, attention has now turned to what comes next. ‘
However, a new claim from an XRP community member suggests that the SEC won’t make any official announcement on the case until August 7, raising questions about a potential delay.
Is a Settlement Really Happening?
Ripple’s legal chief, Stuart Alderoty, has hinted that all necessary paperwork for a settlement has already been prepared. The next step, however, lies in the hands of the SEC Commission, which is expected to vote on the matter within the next 30 days.
Once that vote is complete, the SEC will move to lift the injunction imposed on Ripple. If Ripple complies with the process, Judge Analisa Torres will then sign off on the motion, officially closing the case.
Will the SEC Remains Silent Until August 7?
Adding more fuel to the speculation, an XRP supporter named Brett recently made a bold claim on social media. He stated that the SEC would not make any official announcement on the lawsuit until August 7, citing a court document as his source.
His post quickly gained traction, with some in the community seeing it as a significant development. However, not everyone agreed. Many pointed out that the document he referenced was from last year, casting doubt on its relevance to the current situation.
Former SEC lawyer Marc Fagel even dismissed the claim outright, calling it “s----d and wrong.” This conflicting information has left the XRP community divided on what to believe.
No Official Announcement From the SEC
Although both the SEC and Ripple have withdrawn their appeals, the agency has yet to make an official announcement, leading to speculation that the case may already be settled. However, legal complexities could be causing a delay.
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Fox Business journalist Eleanor Terrett suggested that the SEC might be waiting to ask Judge Torres to remove the injunction—a step that is different from how other cases have been handled.
For now, XRP holders are eagerly waiting for clarity, with hopes that the lawsuit’s resolution will bring long-awaited regulatory certainty to Ripple and its token.
@ Newshounds News™
Source: Coinpedia
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BRICS: RUSSIA TO FOLLOW US, SEEK MAJOR UAE INVESTMENT DEAL?
The last several months have seen geopolitical tension hit a new high. Indeed, the United States has targeted the Global South with tariffs in an effort to secure the status of the dollar. Now, that has taken an interesting turn for BRICS, as Russia may be looking to follow the US and seek a major investment deal from the United Arab Emirates (UAE).
Both Moscow and the UAE are set to meet to discuss their strategic cooperation. Moreover, that meeting took place after the latter unveiled a monumental investment framework plan with the United States. With tensions still high, the development is one that may have massive implications.
BRICS See Russia UAE Talk Collaboration After Landmark US Deal
Since the start of the year, the BRICS bloc and the US have faced off. With his e------n win in late 2024, Donald Trump targeted the alliance with 150% tariffs. Specifically, he was seeking to deter their de-dollarization efforts and secure the global reserve status of the greenback.
However, the ongoing tension between both sides took a rather interesting turn this month. Now, they may be set to get even more complicated for BRICS, as Russia is set to meet with the UAE and may be seeking a deal similar to the one it struck with the US.
In a rather surprising development, the UAE announced a mammoth 10-year, $1.4 trillion investment framework in the United States. The move was going to inject increased capital into the US and fortify what is a rather fragile economic standing. Interestingly, the UAE is a BRICS nation, the same one that has been clearly in the crosshairs of the alliance.
Now, a new report highlights that Russian President V------------n and UAE President Mohamed bin Zayed Al Nahyan are set to hold a telephone meeting this week.
According to the report, both sides discussed the partnership between both nations and gave “a positive assessment” of the dealings so far. Time may tell if they come to an agreement similar to that of the US.
@ Newshounds News™
Source: Watcher Guru
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TRUMP PARDONS BITMEX CO-FOUNDERS C-------D OF FINANCIAL C----S: REPORT
Former President Donald Trump has pardoned BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed.
The three had previously pleaded guilty to federal charges related to money laundering and regulatory violations, according to CNBC reporting.
The three executives were c-------d for failing to implement anti-money laundering measures at BitMEX, which prosecutors labeled a “money laundering platform.”
Reed admitted to violating the Bank Secrecy Act in 2022 and agreed to pay a $10 million fine. Despite BitMEX’s claims of withdrawing from the U.S. market, authorities alleged that the move was a “sham.”
@ Newshounds News™
Source: Crypto News
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Source: Dinar Recaps
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