digitalassets

U.S.-based crypto exchange Coinbase is heading toward a direct confrontation with lawmakers. If the new crypto legislation restricts its ability to pay rewards to customers holding stablecoins, the company is threatening to withdraw its support for the bill entirely. That could derail or delay one of the most significant regulatory efforts for digital assets in the country.
The bill — expected to be unveiled Monday and debated Thursday in a Senate committee — aims to set clear rules for digital assets. But Coinbase insists that the regulation of rewards should be limited to transparency requirements, not outright bans or heavy restrictions.

Banks Want Limits — Coinbase Defends Open Market Competition
The draft bill includes proposals that would allow only licensed financial institutions to offer interest or yield on stablecoins, a move strongly supported by traditional banks. They argue that rewards offered by crypto exchanges draw deposits away from bank accounts and undermine their lending capacity.
Coinbase has applied for a federal trust charter, which could eventually give it permission to offer such rewards under stricter oversight. But the company also wants crypto platforms to retain the ability to offer these services without being required to obtain full licensing, warning that tighter rules would hurt fair market competition.

What’s at Stake: $1.3 Billion and USDC’s Market Dominance
For Coinbase, this is more than a matter of principle. Stablecoin rewards are a major source of revenue, especially during bear markets.
In partnership with Circle, the issuer of USDC, Coinbase earns a share of the interest income generated from the underlying reserves. Coinbase promotes USDC actively and currently offers customers a 3.5% yield on holdings through Coinbase One.
If new laws shut down this offering, users may move their stablecoins elsewhere, and according to Bloomberg, Coinbase could lose up to $1.3 billion in annual revenue from this segment.

GENIUS Act Didn’t Solve the Problem — Banks Are Still Pushing Back
The GENIUS Act, passed in July 2025, bans stablecoin issuers from paying interest directly, but still allows external partners like Coinbase to offer rewards based on account balances.
Banking groups say that this loophole diverts deposits away from local banks and weakens access to credit for small businesses, students, and farmers.
“Crypto exchanges aren’t FDIC-insured, don’t offer loans, and don’t take responsibility — but they’re siphoning off our customers,” banks argue.
Coinbase counters that stablecoin rewards help protect the dollar’s global dominance. Chief Policy Officer Faryar Shirzad pointed out that China has already begun testing interest-bearing digital yuan, signaling future global competition.

Trump’s Administration Backed Crypto — but the Bill Is Stalling
Trump’s second term has been crypto-friendly. The GENIUS Act brought the first nationwide rules for stablecoin issuers, prompting even traditional financial firms — and Trump’s own family — to rush into the market. The USD1 stablecoin, launched by World Liberty Financial, debuted just before the law came into force.
Despite this, the broader crypto legislation is now hitting resistance. The battle over rewards has split bipartisan support, and Coinbase’s threat to withdraw adds real pressure to an already fragile process.
Bloomberg Intelligence analyst Nathan Dean now estimates that the likelihood of passing the bill before June 2026 has dropped below 70%.

Seeking Compromise: Regulation Might Become Selective
One compromise under discussion would allow only federally chartered or licensed institutions to offer stablecoin rewards.
Five crypto firms have already secured preliminary approval from the Office of the Comptroller of the Currency (OCC) to become national trust banks — but traditional banking groups strongly oppose this, claiming it undermines the purpose of a charter and poses systemic risks.
Even if restrictions pass, industry insiders believe crypto firms will find new workarounds.
“There’s no world where we can’t reward users for actions inside apps,” said William Gaybrick, president of technology and commerce at Stripe. “If you’re holding stablecoins in an app, that app will find a way to credit you — one way or another.”

Conclusion: Lawmakers Trapped Between Dollar Stability, Banks, and Crypto Innovation
Congress is now caught between pressure from the White House, economic lobbying from crypto companies, and resistance from traditional banks — and the clock is ticking.
Whether lawmakers can deliver a balanced bill that protects consumers, fosters innovation, and preserves the dollar’s strength, remains uncertain.

#coinbase , #Stablecoins , #USDC , #DigitalAssets , #CryptoRegulation

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

The UK is once again at the center of a heated debate over the role of cryptocurrencies in politics. On January 11, 2026, the chairs of seven parliamentary committees submitted a joint letter urging the government to consider a total ban on cryptocurrency donations to political parties. This bold move reignited concerns around transparency and foreign influence in election financing.
Lawmakers warn that crypto donations threaten transparency and traceability. Liam Byrne, chair of the Business and Energy Committee, emphasized that crypto can obscure the real source of funds, enable small fragmented donations to dodge disclosure rules, and expose British politics to foreign interference. The letter also highlights how modern technology makes regulatory enforcement much harder.

Labour and Ministers Acknowledge the Risks – But Legal Action Still Lacking
The idea of banning crypto donations isn’t new. Back in July 2025, Labour’s Patrick McFadden admitted the government was already evaluating the issue. Now, however, pressure is mounting, with cross-party officials raising alarms about threats to election integrity.
Several UK ministers agree the risks are real — particularly around tracking crypto origins — but admit that technical and legal complexities could prevent the ban from being included in the upcoming Electoral Law package.

Reform UK Under Fire After £9M Crypto Donation from Tether Investor
Tensions peaked in December 2025 when the Electoral Commission revealed that Reform UK had accepted a crypto-linked donation worth £9 million (around $12 million) from crypto investor Christopher Harborne, who owns a 12% stake in Tether.
Although the donation itself was reportedly made in fiat currency, its origin raised serious questions. Both the Labour Party and Liberal Democrats launched internal investigations into whether the gift breached any political finance laws.

Crypto Donations Under Scrutiny as UK Develops Broader Regulatory Framework
The controversy comes as the UK works to establish a comprehensive crypto regulatory regime. In December, Parliament passed a law recognizing cryptocurrencies as property, and the government aims to regulate digital assets like traditional financial instruments by 2027.
Lawmakers now warn that crypto donations could be used to bypass transparency rules and erode public trust. The push for a total ban shows just how seriously British officials are taking the intersection of technology, politics, and democracy.

Summary
As the UK shapes its crypto rules, the proposal to ban all political crypto donations underscores the growing unease around digital assets and election integrity. With public pressure rising, the coming months may prove pivotal for how Britain handles this modern political risk.

#Tether , #UK , #CryptoRegulation , #DigitalAssets , #CryptoNews

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Why Finance Needs a Different Blockchain
Blockchain technology has fundamentally reshaped how we
think about trust, ownership, and the movement of digital value. It proved that
systems can operate without central control and that rules can be enforced
through code. Yet as blockchain applications began to move closer to real-world
finance, a critical limitation became clear: most blockchains were not built
for finance.
Traditional blockchains prioritize openness,
transparency, and experimentation, which is great for decentralized
applications, smart contracts, and token experimentation. But real financial
systems require privacy, structure, and accountability. Every transaction
cannot be public when sensitive data is involved. Businesses must protect
confidential information, regulators demand auditability, and financial
institutions need a system that can prove compliance while keeping data
secure.
This is where Dusk Network comes in. Founded in 2018,
Dusk is a layer-1 blockchain built from the ground up for regulated
financial applications. Unlike other chains that adapt for finance as an
afterthought, Dusk integrates privacy, compliance, and security by design.
Privacy and Compliance by Design
At its core, Dusk is designed to handle real financial
assets in a compliant manner. It enables tokenized securities,
structured financial products, and regulated DeFi applications to operate
without exposing sensitive information publicly. Dusk’s architecture ensures
that ownership, transaction details, and conditions are verifiable but
private, which is critical for institutions, auditors, and regulators
Traditional blockchains often force developers into a
trade-off: either simplify data to fit a public ledger or move it off-chain
with weak guarantees. Dusk removes this compromise by embedding privacy and
selective disclosure directly into the blockchain. Regulators or auditors
can verify compliance without seeing every detail, and partners can trust the
system without exposing business secrets. This allows for trustworthy,
transparent, yet confidential financial activity.
The Technology Behind Dusk
Dusk achieves these capabilities through a combination of zero-knowledge
proofs, confidential smart contracts, and a modular architecture.
Zero-knowledge technology allows transactions to be verified without revealing
sensitive information. Smart contracts enforce programmable rules while keeping
critical details hidden, and Dusk’s modular architecture supports flexible
financial instruments that can evolve without compromising privacy or
compliance.
By focusing on privacy-first design, Dusk opens the
door to applications that traditional blockchains simply cannot handle
securely. Identity systems, private lending protocols, tokenized assets, and
other financial services can all operate on-chain while maintaining
confidentiality. This positions Dusk as a practical and forward-thinking
solution for real-world finance.
Practical Applications: Beyond DeFi Hype
While many blockchains chase DeFi hype, Dusk focuses on practical,
regulated financial infrastructure. Examples of its potential applications
include:

Tokenized
Securities: Issue and trade stocks, bonds, or investment funds
on-chain while maintaining compliance with local laws.Structured
Products: Create complex financial instruments that require
programmable rules and confidential data handling.Private
DeFi: Enable lending, borrowing, and collateralization without
exposing sensitive balances or transactions publicly.Identity
Management: Build systems where user identity evolves over time but
remains secure and verifiable.
These applications are not speculative; they address real
pain points in finance and regulatory compliance. Dusk prioritizes
stability, security, and long-term usability over short-term hype, making it a
blockchain institutions can rely on.
Governance, Transparency, and Community
Dusk is not just about technology — it’s also about trust
and governance. Decisions within the network are transparent and open to
community participation, ensuring fairness and accountability. While
financial applications require confidentiality, Dusk balances this with community
governance and oversight, creating a system that is both private and
participatory.
Security is another top priority. Dusk protects users’
funds, transactions, and governance processes, ensuring that institutions and
individuals can operate confidently on-chain.

The Future of Dusk
As finance increasingly embraces digital assets and
blockchain technology, the market will favor platforms that combine privacy,
compliance, and real-world usability. Dusk is uniquely positioned to fill
this role. By providing a secure, auditable, and privacy-focused blockchain,
Dusk supports a wide range of financial applications that other chains struggle
to handle.
The approach may not generate headlines or short-term hype,
but it addresses the foundational challenges of real-world finance.
Tokenization, self-directed finance, and regulated DeFi are no longer
experimental — they require a blockchain that respects privacy, enforces
rules, and supports real financial infrastructure.
Dusk is building that blockchain. It is not a flashy project
chasing quick gains; it is a long-term platform focused on creating a trusted,
practical, and compliant environment for the next generation of financial
systems.
Conclusion
Dusk represents a mature and thoughtful approach to
blockchain finance. By prioritizing privacy, compliance, and practical
usability, it enables digital finance to grow securely and sustainably. Whether
it’s regulated DeFi, tokenized assets, or complex financial products, Dusk
provides the foundation that real-world financial systems need.
For investors, developers, and institutions looking beyond
speculative hype, Dusk offers a secure, practical, and forward-thinking
blockchain platform that could define the future of digital finance.
$DUSK

#Dusk #BlockchainFinance #PrivacyByDesign
#DigitalAssets #DeFiCompliance

 

The Ripple–BNY Mellon partnership is setting XRP's new institutional era by providing unprecedented institutional credibility and a compliant infrastructure for digital assets, which facilitates the mainstream adoption of tokenized deposits and cross-border payments. BNY Mellon's involvement as the primary custodian for Ripple's stablecoin, RLUSD, signals growing trust in Ripple's underlying technology and regulatory-first approach.
Key Insights
Institutional Credibility: Partnering with BNY Mellon, the world's largest custodian bank overseeing over $53 trillion in assets, lends immense legitimacy to Ripple's solutions and the broader crypto market in the eyes of traditional financial institutions.
Regulatory Alignment: The collaboration focuses on creating a regulated and transparent infrastructure. RLUSD is issued under a NYDFS Trust Company Charter, and BNY Mellon's role as a custodian ensures compliance and robust reserve management, which are crucial for attracting institutional capital.
Bridging Traditional and Digital Finance: The partnership directly integrates cryptographic advancements into the conventional monetary system. By using Ripple Prime as an early adopter for its tokenized deposits, BNY Mellon is positioning Ripple at the center of the emerging "digital dollar" era, where institutional funds operate as "digital cash".
Enhanced Utility for XRP: While RLUSD provides stability, XRP remains vital for its On-Demand Liquidity (ODL) service, acting as a neutral, high-speed, low-cost bridge asset for cross-currency settlements. The partnership embeds XRP deeper into the institutional settlement stack, tying its long-term trajectory to real-world utility rather than speculation.
Tokenization of Assets: The collaboration also aims to drive forward the tokenization of real-world assets like real estate, stocks, and commodities, making asset management faster and more secure using the XRP Ledger infrastructure.
This strategic alliance indicates that institutions are investing based on fundamentals and utility, reinforcing Ripple's position as a leader in attracting institutional capital and building the future infrastructure for global finance.
#Ripple
#BNYMellon
#DigitalAssets
#InstitutionalFinance
#RLUSD