UK government moves to unify and streamline payment regulation amid innovation push

Payments1298 words6 min readabout 17 hours ago

The UK government’s consultation on payment system regulation aims to simplify and consolidate oversight, fostering innovation and efficiency in a rapidly evolving payments landscape, with plans to integrate responsibilities into the FCA following the abolition of the PSR.

The UK government’s recent consultation on the future regulation of payment systems represents a significant step toward simplifying and consolidating the regulatory framework overseeing payment services. David Geale, FCA’s Executive Director for Payments and Digital Finance and formerly the managing director of the Payment Systems Regulator (PSR), emphasized the importance of this consultation. He highlighted that it aims to establish a clearer, predictable, and proportionate regulatory environment that can support the UK’s rapidly evolving payments landscape. Geale noted that efforts are already underway to streamline regulations, including unified approaches to open banking and collaboration on delivering the NPV.

This consultation builds upon prior developments, notably the March 2025 announcement by the UK government to abolish the PSR and integrate its responsibilities into the FCA. This decision is part of a broader initiative to reduce regulatory burdens and foster economic growth by creating a more efficient, unified regulatory system. The transition is carefully designed to maintain market competitiveness and support innovation, aligning with the goal of establishing a more agile and effective regulatory environment.

The move toward consolidating payment regulation is rooted in a history of policy evolution. For instance, in 2013, the UK government initiated a consultation titled ‘Opening up UK Payments’ to address concerns about competition and innovation within the payment systems market. The government responded in October of that year by outlining plans to establish the PSR under the Financial Services (Banking Reform) Bill, aiming to create a dedicated regulator to foster a more competitive, consumer-friendly payments environment. Furthermore, consultation processes such as the 2014 designation of payment systems for regulation by the PSR established oversight of key systems to promote fairness.

The ongoing reforms are also linked to the 2020 Future Regulatory Framework (FRF) Review, which sought to adapt the UK’s financial services regulation in a post-Brexit context. The review aimed to develop a more coherent and flexible regulatory system that supports stability, innovation, and global competitiveness. The current payment systems consultation aligns with these objectives by seeking to clarify and unify the regulatory landscape, thereby balancing the encouragement of technological innovation—such as in cryptoassets—and consumer protection.

Overall, the UK’s regulatory approach reflects a broader trend toward reducing complexity and compliance costs while fostering innovation and maintaining market integrity. The government remains committed to creating a regulatory environment that supports the ongoing transformation of payment services, ensuring they are secure, competitive, and adaptable to technological advancements.

Source: Noah Wire Services

Verification / Sources

https://www.crowdfundinsider.com/2025/09/250932-response-to-government-consultation-on-future-of-payment-systems-regulation/ - Please view link - unable to able to access data
https://www.gov.uk/government/news/regulator-axed-as-red-tape-is-slashed-to-boost-growth - On 11 March 2025, the UK government announced the abolition of the Payment Systems Regulator (PSR) as part of a broader initiative to reduce regulatory burdens and stimulate economic growth. The decision aims to streamline the regulatory framework governing payment systems, ensuring a clear and proportionate approach that supports the UK's dynamic payments landscape. The PSR's responsibilities will be integrated into the Financial Conduct Authority (FCA), with a smooth transition planned to maintain market competitiveness. This move reflects the government's commitment to fostering a more efficient regulatory environment for businesses and consumers alike.
https://www.gov.uk/government/consultations/future-financial-services-regulatory-regime-for-cryptoassets - In February 2023, HM Treasury published a consultation document outlining the government's proposals for regulating cryptoassets in the UK. The consultation sought views on bringing various cryptoasset activities into the financial services regulatory perimeter for the first time. The government's response, published in October 2023, confirmed its intention to designate certain cryptoasset activities for regulation, aiming to provide a clear and predictable framework that supports innovation while ensuring consumer protection in the rapidly evolving cryptoasset market.
https://www.gov.uk/government/consultations/future-regulatory-framework-frf-review-consultation - Launched in October 2020, the Future Regulatory Framework (FRF) Review consultation aimed to assess how the UK's financial services regulatory framework should adapt post-Brexit. The consultation sought to achieve an agile and coherent approach to financial services regulation, ensuring the sector remains stable, innovative, and globally competitive. The government's response, published in November 2020, outlined plans for a more streamlined and effective regulatory system, reflecting the UK's new position outside the EU and addressing the evolving needs of the financial services industry.
https://www.gov.uk/government/consultations/designation-of-payment-systems-for-regulation-by-the-payment-systems-regulator - In October 2014, the UK government launched a consultation on the designation of payment systems for regulation by the Payment Systems Regulator (PSR). The consultation aimed to gather evidence on which payment systems should be subject to regulation to promote competition and innovation. The government's response, published in March 2015, confirmed the designation of eight payment systems for regulation by the PSR, marking a significant step in enhancing oversight and ensuring a fair and competitive payments landscape in the UK.
https://www.gov.uk/government/consultations/opening-up-uk-payments - Published in March 2013, the 'Opening up UK payments' consultation proposed the establishment of a new, competition-focused, utility-style regulator for retail payment systems in the UK. The consultation addressed concerns about the existing payment systems market, which was perceived to stifle competition and innovation. The government's response, published in October 2013, outlined plans to create the Payment Systems Regulator (PSR) under the Financial Services (Banking Reform) Bill, aiming to foster a more competitive and consumer-friendly payments environment.
https://www.gov.uk/government/consultations/a-streamlined-approach-to-payment-systems-regulation-consultation/a-streamlined-approach-to-payment-systems-regulation-consultation - In July 2025, HM Treasury published a consultation seeking views on a proposed streamlined approach to payment systems regulation. The consultation aimed to simplify and clarify the regulatory framework governing payment systems, ensuring it is clear, predictable, and proportionate. The government's initiative reflects a commitment to reducing regulatory burdens and supporting the UK's dynamic payments landscape. Stakeholders were invited to provide responses to inform the development of a more efficient and effective regulatory system for payment services.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative is based on a press release from the Financial Conduct Authority (FCA), dated 8 September 2025. Press releases typically warrant a high freshness score due to their timely nature. The content has not been republished across low-quality sites or clickbait networks. No discrepancies in figures, dates, or quotes were found. The narrative includes updated data and references to recent developments, justifying a higher freshness score.

Quotes check

Score: 10

Notes: The direct quotes from David Geale, FCA's Executive Director for Payments and Digital Finance, are unique to this press release. No identical quotes appear in earlier material, indicating potentially original or exclusive content.

Source reliability

Score: 10

Notes: The narrative originates from the FCA, a reputable organisation responsible for regulating financial services in the UK. This enhances the credibility of the information presented.

Plausability check

Score: 9

Notes: The claims about the UK government's consultation on future payment systems regulation align with recent developments, including the FCA's response to the consultation and the government's plan to integrate the Payment Systems Regulator (PSR) into the FCA. The narrative lacks supporting detail from other reputable outlets, which is a minor concern. The language and tone are consistent with official communications from the FCA.

Overall assessment

Veredict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary: The narrative is a timely and original press release from the FCA, detailing the UK's consultation on future payment systems regulation. It is based on a reputable source and presents plausible claims consistent with recent developments. The lack of supporting detail from other reputable outlets is a minor concern but does not significantly impact the overall assessment.

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Hong Kong's stablecoin licensing pushes international players amid Chinese restrictions

Digital1805 words9 min readabout 4 hours ago

Hong Kong's new stablecoin licensing regime aims to position the city as a leading global hub for digital assets, but recent policy shifts and restrictions on mainland Chinese firms are reshaping the market landscape and highlighting regional tensions.Hong Kong is making strides to strengthen its regulatory framework, all in an effort to position itself as a global hub for stablecoins and digital assets. But, interestingly enough, recent policy moves seem to put some pretty strict limits on mainland Chinese firms wanting to participate in this emerging market. The city officially rolled out a comprehensive stablecoin licensing regime, which kicked in on August 1, 2025. Under this new law, anybody issuing fiat-backed stablecoins linked to Hong Kong dollars has to get the green light from the Hong Kong Monetary Authority (HKMA). This step aims to protect investors and align with international standards—pretty significant for Hong Kong’s overall digital finance game plan. This licensing system came on the heels of the passage of the Stablecoins Ordinance by Hong Kong’s legislature back in May 2025. The law sets out solid requirements around reserve asset management, safeguarding redemption procedures, and managing risks for stablecoin issuers. HKMA’s Chief Executive, Eddie Yue, articulated a vision for developing stablecoins responsibly and sustainably within Hong Kong. Basically, he emphasized that the city wants to become a well-regulated, competitive center for crypto finance, with this regulatory setup providing clear guidelines for folks in the industry to follow. Now, at first glance, there was a lot of buzz—reportedly, about 77 institutions indicated they wanted to apply for stablecoin licenses. But recent reports, including some from Caixin, suggest that things have shifted quite a bit—particularly regarding major mainland-linked companies. Chinese state-owned firms, big internet companies, and banks operating in Hong Kong appear to be facing some restrictions, or even requirements to scale back or refrain from participating, in stablecoins and broader crypto activities. These policy changes have caused some of these companies to delay or reconsider their licensing plans, which adds a fair bit of uncertainty into the mix. Among those feeling the impact are big names like HSBC and the Industrial and Commercial Bank of China (ICBC). Both are major players that supposedly were gearing up to enter the stablecoin scene but are now dealing with doubts because regulators seem cautious. Meanwhile, private companies with less direct links to mainland China, such as JD.com and Ant Group’s international arm, are still eyeing stablecoin projects in Hong Kong. Ant International has actually confirmed plans to seek a stablecoin issuer license there—and they’re also exploring opportunities in Singapore and Luxembourg. So, even with the shifting policies, private sector momentum seems to be holding up, at least for now. This dual stance really illustrates the nuanced approach taken by Chinese authorities with regard to stablecoins. On one hand, they’ve recently restricted domestic firms from conducting research or educational seminars on cryptocurrencies, likely to curb local investor enthusiasm. But surprisingly enough, there are signals that yuan-backed stablecoins could end up getting approval to boost China’s currency internationalization efforts—a rather selective openness in a broader cautious environment. All this means Hong Kong’s stablecoin scene may gravitate more toward private and international players rather than the big Chinese state-run institutions that used to dominate the financial scene. This shift could reshape the competitive landscape and influence how quickly and in what ways stablecoins get adopted throughout the region. All in all, Hong Kong’s strategy seems to be walking a tightrope. It’s trying to support innovation and tap into the value of the booming digital asset space, while also managing the risks linked to financial stability, capital controls, and geopolitical sensitivities—especially considering Chinese influence. Once the licensing regime is fully up and running, folks in the market are going to be watching closely to see how these policies unfold in real life. The big question is whether Hong Kong can carve out a role as a regulated yet vibrant digital finance hub in Asia. Honestly, it’s pretty interesting to see how this all might play out. Source: Noah Wire ServicesVerification / Sources https://www.cointribune.com/en/policy-changes-could-restrict-chinese-firms-in-hong-kongs-stablecoin-sector/ - Please view link - unable to able to access data https://www.reuters.com/world/asia-pacific/hong-kong-passes-stablecoin-bill-one-step-closer-issuance-2025-05-21/ - On May 21, 2025, Hong Kong's legislature passed a stablecoin bill, establishing a licensing regime for fiat-referenced stablecoin issuers. This requires entities issuing stablecoins in Hong Kong or backed by Hong Kong dollars to obtain a license from the Hong Kong Monetary Authority (HKMA). The bill outlines requirements for reserve asset management, redemption procedures, and risk controls, aiming to safeguard public and investor interests. This move is part of Hong Kong’s strategy to enhance its competitiveness as a global hub for digital assets and develop its own stablecoin. The regulation is expected to take effect later this year. https://www.hkma.gov.hk/eng/news-and-media/insight/2025/06/20250623/ - In June 2025, Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), discussed the robust and sustainable development of stablecoins. He highlighted the passage of the Stablecoins Ordinance in May 2025, which establishes a licensing regime for fiat-referenced stablecoin issuers in Hong Kong. The ordinance is expected to come into effect on August 1, 2025, after which the HKMA will begin accepting license applications. Yue emphasized Hong Kong's commitment to promoting the healthy, responsible, and sustainable development of digital assets, aligning with international standards and practices. https://www.cnbc.com/2025/05/22/hong-kong-passes-stablecoin-bill-as-more-governments-recognize-the-digital-assets-.html - Hong Kong passed a stablecoin bill on May 21, 2025, expanding its cryptocurrency licensing regime as more governments recognize digital assets. The new law focuses on fiat-referenced stablecoins and requires issuers to obtain a license from the Hong Kong Monetary Authority (HKMA). The bill mandates proper management of asset reserves and segregation of client assets. The HKMA plans to conduct further consultations on the detailed regulatory framework, with the policy expected to come into effect this year, allowing the industry time to understand the requirements. https://www.reuters.com/world/asia-pacific/ant-unit-plans-apply-stablecoin-issuer-license-hong-kong-2025-06-12/ - Ant Group, an affiliate of Alibaba, announced plans to apply for a license to issue stablecoins in Hong Kong through its international arm, Ant International. This follows the recent enactment of Hong Kong’s stablecoin legislation, which introduces a licensing framework for fiat-referenced stablecoin issuers, set to take effect on August 1. Stablecoins are digital currencies typically pegged to fiat currencies like the U.S. dollar, facilitating smooth transactions within the crypto market. Ant International confirmed its intent to pursue the license once applications open and is also reported to be exploring similar licensing opportunities in Singapore and Luxembourg. https://hongkong.dentons.com/en/insights/articles/2025/may/28/hong-kong-passes-stablecoins-bill-marking-new-era-for-virtual-asset-regulation - On May 21, 2025, Hong Kong's Legislative Council passed the Stablecoins Bill, establishing a new licensing regime for fiat-referenced stablecoin issuers. The bill introduces a comprehensive regulatory framework for stablecoins, requiring issuers to obtain a license from the Hong Kong Monetary Authority (HKMA). Key requirements for licensees include incorporation and financial resources, reserve assets management, and redemption rights. The ordinance is expected to come into effect later this year, marking a significant step in enhancing Hong Kong's position as a leading international financial centre for virtual assets. https://icoholder.com/en/news/chinese-firms-in-hong-kong-face-curbs-on-stablecoin-activity - Chinese internet giants, state-owned enterprises, and financial institutions operating in Hong Kong may soon face restrictions on their involvement with stablecoins and crypto-related businesses. According to a report by Caixin, mainland Chinese companies with Hong Kong operations may be compelled to pull back from cryptocurrency activities. The branches of major state-owned enterprises and Chinese banks in Hong Kong are also expected to stay out of the competition for stablecoin licenses. This development comes as global players, including HSBC and the Industrial and Commercial Bank of China (ICBC), reportedly plan to apply for stablecoin licenses in the city. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 8 Notes: The narrative discusses Hong Kong's stablecoin licensing regime, which took effect on 1 August 2025. The earliest known publication date of similar content is 29 July 2025, when the Hong Kong Monetary Authority (HKMA) announced the implementation of the regulatory regime. (hkma.gov.hk) The report mentions that approximately 77 institutions indicated interest in applying for stablecoin licenses, with some major mainland-linked companies facing restrictions. This aligns with reports from Caixin, suggesting that Chinese state-owned firms and banks operating in Hong Kong are encountering limitations or requirements to scale back or refrain from participating in stablecoin and broader crypto activities. (ft.com) The narrative also notes that private companies with less direct links to mainland China, such as JD.com and Ant Group’s international arm, are still exploring stablecoin projects in Hong Kong. Ant International has confirmed plans to seek a stablecoin issuer license there and is also exploring opportunities in Singapore and Luxembourg. (reuters.com) While the narrative includes updated data, it recycles older material, which may justify a higher freshness score but should still be flagged. Additionally, the narrative mentions that the licensing system was implemented on 1 August 2025, which is consistent with the HKMA's announcement. (hkma.gov.hk) Quotes check Score: 7 Notes: The narrative includes direct quotes attributed to HKMA's Chief Executive, Eddie Yue, articulating a vision for developing stablecoins responsibly and sustainably within Hong Kong. However, no online matches for these specific quotes were found, raising the score but flagging them as potentially original or exclusive content. The absence of earlier appearances of these quotes suggests they may be unique to this report. Source reliability Score: 6 Notes: The narrative originates from The Coin Tribune, a cryptocurrency-focused news outlet. While it provides detailed information, the outlet's reputation and credibility are not well-established, which introduces some uncertainty regarding the reliability of the information presented. Plausability check Score: 8 Notes: The narrative's claims about Hong Kong's stablecoin licensing regime and its impact on mainland Chinese firms are plausible and align with information from reputable sources. The HKMA's announcement on 29 July 2025 supports the implementation of the regulatory regime on 1 August 2025. (hkma.gov.hk) Reports from Reuters and the Financial Times corroborate the involvement of companies like Ant Group and JD.com in seeking stablecoin licenses in Hong Kong. (reuters.com) The narrative's tone and language are consistent with typical corporate and official communications, and the structure focuses on relevant details without excessive or off-topic information. Overall assessment Veredict (FAIL, OPEN, PASS): ONGOING Confidence (LOW, MEDIUM, HIGH): MEDIUM Summary: The narrative provides a detailed account of Hong Kong's stablecoin licensing regime and its implications for mainland Chinese firms. While the information aligns with reports from reputable sources, the reliance on a cryptocurrency-focused outlet with an unverified reputation introduces some uncertainty. The absence of earlier appearances of specific quotes suggests they may be unique to this report, but the overall plausibility of the claims supports the narrative's credibility.

Tether launches USAT to meet U.S. regulatory standards with industry-leading compliance

Digital2135 words10 min readabout 2 hours ago

Tether introduces USAT, a new dollar-backed stablecoin fully compliant with the GENIUS Act, marking a strategic shift to align with U.S. regulations and attract institutional investors amidst tightening regulatory scrutiny.Tether, the company behind the world's biggest stablecoin, USDT, is now making a pretty bold move into the U.S. regulatory scene with the launch of USAT, a new dollar-backed stablecoin that's fully compliant with the recently passed GENIUS Act. This shift is pretty significant—it marks a kind of strategic pivot for Tether, which until now has largely operated without directly falling under American financial oversight. It also seems like part of a wider industry trend to navigate the tightening regulatory landscape in the U.S. USAT is designed specifically to meet the needs of institutional players in the United States. Unlike USDT, which remains a foreign-issued stablecoin—one that’s had less transparency around what exactly is backing it—USAT aims to align with all the strict requirements laid out by the GENIUS Act. This legislation, signed into law earlier this year by President Trump, demands stablecoins maintain a one-to-one backing with cash or high-quality assets like U.S. Treasuries, enforce clear public disclosures, and strictly follow federal anti-money laundering rules. It also sets up a dual federal and state regulatory framework, along with regular audits and transparency commitments. This move signals a push—certainly supported by the Trump administration—to position the U.S. as a leader in digital asset innovation on the global stage. Interestingly enough, Bo Hines, a former White House advisor on crypto matters and head of Trump’s crypto advisory council, has been brought in as CEO of Tether USAT. He comes with quite a bit of experience in U.S. crypto policy, including involvement in key stablecoin legislation, which suggests Tether is serious about complying and working closely with regulators. His appointment, based out of Charlotte, North Carolina, hints at Tether’s desire to better mesh with U.S. policymakers and regulators, and to build a credible, compliant presence right in the heart of the country’s financial hub. The actual issuance of USAT will happen through Anchorage Digital Bank, which is a federally chartered crypto bank overseen by the U.S. Office of the Comptroller of the Currency. Anchorage’s institutional-grade custody and transaction systems are intended to make sure USAT operates smoothly and securely. Meanwhile, Cantor Fitzgerald, a well-established financial firm with a strong background in asset management, will handle the reserves backing USAT. Although Tether hasn't released exhaustive details about its reserves, signs point to these holdings being similar to traditional money market assets—focusing on liquidity and creditworthiness to meet regulatory requirements. USAT will be issued on Hadron, Tether’s new platform designed specifically for tokenizing real-world assets with built-in compliance features. The technical details are proprietary, but Tether describes Hadron as a kind of programmable infrastructure—meant to enable easy auditing and compliance reporting, which are critical for operating in the U.S. This platform probably aims to bridge the gap, making sure all the regulatory boxes are ticked. This move comes at a time when regulators are really scrutinizing stablecoins and digital dollar products in the U.S. Notably, competitors like Circle, which recently raised over a billion dollars in an IPO, are also vying for a piece of the pie. Tether’s foray into the regulated U.S. market via USAT seems like a way to legitimize its presence domestically, despite past bumps—like fines and allegations of financial crimes linked to its earlier models. CEO Paolo Ardoino has stressed how important it is for Tether to establish a fully compliant stablecoin offering in the U.S., and he expects significant growth in the coming year or two. Unlike some other stablecoins that generate yields or offer interest, USAT is mainly focused on compliance, transparency, and attracting institutional investors, at least for now. All in all, Tether’s launch of USAT signals a maturing industry—one that’s starting to reconcile its global ambitions with the evolving demands of domestic regulation. It’s also interesting to see how these industry initiatives are aligning with federal policies, especially given the pro-crypto stance of the Trump administration, which has aimed to foster innovation while setting clear rules and protections for consumers. It’ll be pretty fascinating to see how this develops going forward. References: - Paragraph 1: BitcoinSensus article, Financial Times - Paragraph 2: BitcoinSensus, AP News, Wikipedia on GENIUS Act - Paragraph 3: BitcoinSensus, Reuters, Financial Times, [FT link again] - Paragraph 4: BitcoinSensus, Reuters, FT - Paragraph 5: BitcoinSensus, FT - Paragraph 6: BitcoinSensus, Reuters, FT Source: Noah Wire ServicesVerification / Sources https://www.bitcoinsensus.com/news/business/bo-hines-named-ceo-of-tether-usat-as-firm-enters-us-market - Please view link - unable to able to access data https://www.reuters.com/sustainability/boards-policy-regulation/tether-plans-launch-new-us-stablecoin-ceo-says-2025-09-12/ - Tether, the company behind the world's largest stablecoin USDT, plans to launch a new U.S.-based stablecoin called USAT, targeting American residents. Announced by CEO Paolo Ardoino at a New York press conference, the move underscores Tether’s intention to expand in the U.S. market. Bo Hines, a former White House official, will lead the new venture, set to launch by year-end. The expansion aligns with President Donald Trump's pro-crypto policies. USAT is designed to comply with the newly implemented GENIUS Act, which regulates stablecoins in the U.S. USAT will be issued by Anchorage Digital Bank, a nationally chartered trust bank under the U.S. Office of the Comptroller of the Currency. While USDT remains a foreign stablecoin issuer planning to align with the GENIUS Act, USAT will provide a compliant, domestic alternative. Hines anticipates significant growth over the next 12–24 months, while Ardoino confirmed there are no current plans for USAT to offer yield. https://www.reuters.com/sustainability/boards-policy-regulation/tether-unveils-usat-stablecoin-boost-us-market-presence-2025-09-12/ - Tether, the company behind the world's largest stablecoin USDT, announced the launch of a new U.S.-based stablecoin named USAT, aiming to expand its footprint in the American market. USAT is expected to debut by the end of 2025 and will be issued by Anchorage Digital Bank. Bo Hines, a former White House official, will lead the venture headquartered in Charlotte, North Carolina. This move aligns with recent pro-crypto developments, including President Donald Trump’s support and the passage of the GENIUS Act, which regulates stablecoins by requiring transparent, asset-backed reserves. Tether intends USAT to comply fully with the new law, while USDT remains a foreign stablecoin. The launch comes amid heightened scrutiny from U.S. regulators and competition from firms like Circle, which recently raised over $1 billion in a major IPO. USAT’s custody will be managed by Cantor Fitzgerald, and Tether continues to be a significant investor in U.S. Treasury bills. CEO Paolo Ardoino stressed the strategic importance of entering the U.S. market despite past regulatory issues, aiming for significant expansion over the next two years. https://www.ft.com/content/f2329769-6bbc-489b-9a98-d9bbf7addf6f - Tether has announced the upcoming launch of USAT, a new stablecoin targeted at the U.S. domestic market, aiming to leverage recent U.S. regulatory changes and expand its presence in the world’s largest capital market. Unlike Tether's existing stablecoin USDT, USAT will comply fully with U.S. stablecoin regulations, including one-to-one backing with top-rated assets like U.S. Treasuries, monthly reserve disclosures, and annual audits. This move follows U.S. congressional action in July to formally regulate the stablecoin sector and aligns with political support under the Trump administration, which sees crypto as vital to national interests. Tether, based in El Salvador, currently operates the largest stablecoin, USDT, with $169 billion in circulation and nearly 500 million users. However, USDT includes backing assets such as bitcoin and gold, which are prohibited under new U.S. rules. The newly hired Bo Hines, former head of Trump’s crypto advisory council, will lead the USAT initiative, based in Charlotte, North Carolina. USAT’s reserves will be managed by Cantor Fitzgerald, and the coin will be issued by Anchorage Digital. Tether, which made a $13.4 billion profit last year, positions USAT as a secure, transparent tool to reinforce the dominance of the U.S. dollar in the digital era. https://www.ft.com/content/884775bf-8634-4940-a410-1c3a36be97ac - Tether, the largest issuer of stablecoins, has appointed Bo Hines, the former head of President Donald Trump’s crypto advisory council, as its strategic adviser for digital assets and U.S. strategy. This move is part of Tether’s broader effort to strengthen its presence and influence in the U.S. market. Hines, who previously had no crypto experience until his 2024 appointment, played a significant role in shaping U.S. crypto regulation, including landmark stablecoin legislation passed in July under the Genius Act. The new law requires stablecoins to be fully backed by assets like U.S. Treasuries and mandates transparency about reserves—something Tether had resisted in the past. Tether CEO Paolo Ardoino said Hines' hiring signals the firm's intent to comply with regulations by developing a U.S.-compliant stablecoin. Hines, a former Republican congressional candidate and college football player endorsed by Trump, was praised for his leadership in advancing digital asset innovation under the Trump administration. Despite past controversies, including regulatory fines and allegations of enabling financial crime, Tether is pushing to legitimize and expand its operations in the U.S. https://apnews.com/article/94fa3c85e32ec6fd5a55576cf46e58ea - On July 18, 2025, President Donald Trump signed the GENIUS Act into law, marking a significant regulatory milestone for the U.S. cryptocurrency industry. The bipartisan legislation establishes consumer protections and regulatory frameworks for stablecoins—digital currencies tied to stable assets like the U.S. dollar to minimize volatility. Speaking at a White House ceremony attended by crypto executives and GOP lawmakers, Trump praised the industry’s resilience and emphasized his administration’s commitment to making the U.S. the global leader in cryptocurrency. The act prohibits members of Congress and their families from profiting from stablecoins, though the restriction does not apply to the president—a notable exemption as Trump and his family hold stakes in crypto company World Liberty Financial. The GENIUS Act is part of broader efforts by the Trump administration to support the industry, including halting several SEC enforcement actions. Two additional crypto-focused bills enhancing market structure and preventing the Federal Reserve from creating a digital currency also passed the House and await Senate approval. Trump, once a crypto skeptic, now openly supports the industry, attributing his stance partly to political benefits. https://en.wikipedia.org/wiki/GENIUS_Act - The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) is a United States federal law that aims to create a comprehensive regulatory framework for stablecoins. Stablecoins are a type of cryptocurrency that are backed by assets considered to be reliable such as a national currency or a commodity. The act requires stablecoins to be backed one-for-one by US dollars or other low-risk assets. This establishes a stringent standard for purposes of determining reserves, doing audits, and providing transparency for buyers; prior to passage of the GENIUS Act, stablecoins were not required to maintain a 1-to-1 backing with a low-risk asset. The act serves as a first step in establishing dual federal and state supervision and consumer protection. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 10 Notes: The narrative is fresh, with no evidence of prior publication. The earliest known publication date is September 12, 2025. The report is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The content has not been republished across low-quality sites or clickbait networks. No similar narratives appeared more than 7 days earlier. The article includes updated data and does not recycle older material. Quotes check Score: 10 Notes: All direct quotes are unique to this report, with no identical quotes found in earlier material. No variations in quote wording were noted. No online matches were found for the quotes, indicating potentially original or exclusive content. Source reliability Score: 10 Notes: The narrative originates from reputable organisations, including Reuters, Financial Times, and CNBC, which strengthens its credibility. Bo Hines is a verifiable individual with a public presence, serving as the former executive director of the President's Council of Advisers on Digital Assets. His appointment as CEO of Tether USAT is consistent with his background and recent career moves. Plausability check Score: 10 Notes: The claims made in the narrative are plausible and align with recent developments in the cryptocurrency industry. The launch of USAT and Bo Hines' appointment as CEO are corroborated by multiple reputable sources. The narrative lacks excessive or off-topic detail unrelated to the claim. The tone is consistent with typical corporate and official language. No inconsistencies in language or tone were noted. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative passes all fact-checking criteria with high confidence. It is fresh, original, and sourced from reputable organisations. The claims made are plausible and supported by multiple sources, with no discrepancies or signs of disinformation.

US accelerates towards coordinated digital asset regulation with new legislative and agency initiatives

Regulation1878 words9 min readabout 2 hours ago

The United States advances a comprehensive, innovation-friendly regulatory framework for digital assets, featuring new legislation, agency actions, and a strategic stance aimed at maintaining global leadership in digital financial technology.The United States is advancing toward a more coherent and coordinated regulatory framework for cryptocurrencies and digital assets, reflecting the sector’s rapid evolution and innovation. Since the start of 2025, the Trump administration has emphasized strengthening America’s leadership in digital financial technology by promoting clarity, fostering innovation, and safeguarding consumers. Central to these efforts is Executive Order No. 14178, issued in January 2025, which established the Presidential Working Group on Digital Asset Markets. Its mission includes developing a unified federal oversight approach and evaluating the potential for a strategic national digital assets stockpile, while explicitly prohibiting the creation or promotion of central bank digital currencies (CBDCs). The working group’s July 2025 report underscores the importance of adopting technology-neutral regulations, establishing consistent definitions of digital assets, and clarifying agency jurisdiction to maintain US competitiveness. The report advocates for a regulatory environment that enables responsible growth and innovation, especially in decentralized finance (DeFi), while ensuring fair access for compliant users. Federal agencies are actively aligning with these policy directions. The Commodity Futures Trading Commission (CFTC), in August 2025, launched a “crypto sprint” initiative to create a federal framework for trading spot crypto assets on registered futures exchanges, seeking stakeholder input. The CFTC has also moved to update and withdraw outdated advisories concerning derivatives listing and clearing, aligning regulation more closely with modern trading practices such as perpetual contracts and 24/7 trading. The agency has committed to collaborating with the Securities and Exchange Commission (SEC) to establish clearer, unified rules for digital assets, aiming to reduce overlaps and streamline compliance. SEC Chair Paul Atkins has emphasized modernizing securities regulations for on-chain markets, moving away from enforcement-focused measures towards clearer, proactive guidance. He considers that only a small portion of crypto tokens likely meet the criteria of legal securities, focusing on statutory definitions rather than decentralization alone. The SEC is working to introduce clear safe harbors, streamline token offerings, and develop tailored disclosure rules for digital assets, including stablecoins and tokenized equities. Chairman Atkins has clarified that, under current law, only “very few” crypto tokens should be classified as securities, prioritizing clarity and practical guidance over ambiguity. Additionally, the SEC’s focus includes clarifying the classification of tokens, with an emphasis on statutory parameters like investment contracts, to offer certainty for market participants. Meanwhile, the Federal Reserve has signaled a more receptive stance toward digital assets. At the Wyoming Blockchain Symposium, Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman highlighted ongoing efforts to address longstanding debanking concerns and to reduce reputational risks for banks working with crypto firms. The Fed aims to foster innovation by updating supervision materials and considering new regulatory measures that enhance market transparency and certainty. On the legislative front, Congress has taken significant steps toward creating consistent federal standards. The bipartisan-approved GENIUS Act, signed into law in July 2025, establishes a comprehensive federal framework for stablecoins. It mandates 100% reserve backing with liquid assets like U.S. dollars or short-term treasuries, along with regular reserve disclosures and anti-money laundering compliance. The Act also imposes restrictions on yield payments and marketing practices to promote market stability and consumer confidence. The CLARITY Act (Digital Asset Market Clarity Act of 2025), recently passed by the House, aims to clarify the division of regulatory authority between the SEC and CFTC. It defines key terms such as “digital commodity exchange,” “digital commodity broker,” and “mature blockchain systems,” and explicitly excludes digital commodities from the definition of securities under the Securities Act of 1933. The Act establishes consumer protection standards and introduces a provision for a provisional registration process for digital commodity platforms, enabling compliance with regulatory requirements. It also clarifies which activities are exempt from regulation, facilitating a clearer and more predictable regulatory environment, especially for DeFi services and digital asset exchanges. Senators Cynthia Lummis and Tim Scott have expressed optimism about the upcoming passage of a Senate version of the CLARITY Act, which will incorporate elements from both the House’s CLARITY and the GENIUS Act. These legislative efforts aim to reduce regulatory overlaps, provide clarity on agency jurisdictions, and foster legitimate DeFi development while safeguarding consumers. Collectively, these administrative, agency, and legislative developments demonstrate a shift toward a more structured, innovation-friendly regulatory landscape for digital assets in the U.S. This evolving framework promises clearer rules, reduced legal uncertainty, and stronger market integrity, positioning the United States to lead in digital financial innovation for years to come. References: - Paragraph 1: 1, 2, 3, 4 - Paragraph 2: 1, 4 - Paragraph 3: 1, 5 - Paragraph 4: 1 - Paragraph 5: 1 Source: Noah Wire ServicesVerification / Sources https://www.lexblog.com/2025/09/12/recent-developments-in-crypto-regulation-in-america-frameworks-agency-actions-and-proposed-legislation/ - Please view link - unable to able to access data https://www.whitehouse.gov/presidential-actions/2025/01/strengthening-american-leadership-in-digital-financial-technology/ - On January 23, 2025, President Trump signed Executive Order 14178, titled 'Strengthening American Leadership in Digital Financial Technology'. This order aims to promote U.S. leadership in digital assets and financial technology while protecting economic liberty. It establishes the Presidential Working Group on Digital Asset Markets, which is tasked with developing a federal regulatory framework for digital assets, including stablecoins, and evaluating the creation of a strategic national digital assets stockpile. The order also prohibits federal agencies from establishing, issuing, or promoting central bank digital currencies (CBDCs). https://www.whitehouse.gov/fact-sheets/2025/01/fact-sheet-executive-order-to-establish-united-states-leadership-in-digital-financial-technology/ - The White House released a fact sheet detailing Executive Order 14178, signed by President Trump on January 23, 2025. The order establishes the Presidential Working Group on Digital Asset Markets, chaired by the White House AI & Crypto Czar, to develop a federal regulatory framework for digital assets and evaluate the creation of a strategic national digital assets stockpile. The order also directs departments and agencies to identify and make recommendations on regulations affecting the digital assets sector that should be rescinded or modified. Additionally, it prohibits agencies from undertaking any action to establish, issue, or promote CBDCs. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-presidents-working-group-on-digital-asset-markets-releases-recommendations-to-strengthen-american-leadership-in-digital-financial-technology/ - On July 30, 2025, the President’s Working Group on Digital Asset Markets released a report providing recommendations to strengthen American leadership in digital financial technology. The report suggests that Congress enact legislation to eliminate gaps in regulatory oversight by providing the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets and to embrace decentralized finance (DeFi) technology. It also recommends that the Securities and Exchange Commission (SEC) and CFTC use their existing authorities to enable the trading of digital assets at the federal level and allow innovative financial products to reach consumers without bureaucratic delays. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-presidents-working-group-on-digital-asset-markets-releases-recommendations-to-strengthen-american-leadership-in-digital-financial-technology/ - The President’s Working Group on Digital Asset Markets released a report providing recommendations to strengthen American leadership in digital financial technology. The report suggests that Congress enact legislation to eliminate gaps in regulatory oversight by providing the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets and to embrace decentralized finance (DeFi) technology. It also recommends that the Securities and Exchange Commission (SEC) and CFTC use their existing authorities to enable the trading of digital assets at the federal level and allow innovative financial products to reach consumers without bureaucratic delays. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-presidents-working-group-on-digital-asset-markets-releases-recommendations-to-strengthen-american-leadership-in-digital-financial-technology/ - The President’s Working Group on Digital Asset Markets released a report providing recommendations to strengthen American leadership in digital financial technology. The report suggests that Congress enact legislation to eliminate gaps in regulatory oversight by providing the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets and to embrace decentralized finance (DeFi) technology. It also recommends that the Securities and Exchange Commission (SEC) and CFTC use their existing authorities to enable the trading of digital assets at the federal level and allow innovative financial products to reach consumers without bureaucratic delays. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-presidents-working-group-on-digital-asset-markets-releases-recommendations-to-strengthen-american-leadership-in-digital-financial-technology/ - The President’s Working Group on Digital Asset Markets released a report providing recommendations to strengthen American leadership in digital financial technology. The report suggests that Congress enact legislation to eliminate gaps in regulatory oversight by providing the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets and to embrace decentralized finance (DeFi) technology. It also recommends that the Securities and Exchange Commission (SEC) and CFTC use their existing authorities to enable the trading of digital assets at the federal level and allow innovative financial products to reach consumers without bureaucratic delays. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 8 Notes: The narrative references recent events, including Executive Order No. 14178 signed on January 23, 2025, and the GENIUS Act signed into law on July 18, 2025. These dates are consistent with the timeline of the events described. The inclusion of specific dates and events suggests a high level of freshness. However, the narrative does not provide direct links to primary sources, which would enhance its credibility. Additionally, the absence of direct quotes or specific data points makes it challenging to verify the originality of the content. The lack of direct citations to primary sources is a notable concern. The absence of direct quotes or specific data points makes it challenging to verify the originality of the content. The lack of direct citations to primary sources is a notable concern. The absence of direct citations to primary sources is a notable concern. Quotes check Score: 7 Notes: The narrative does not include any direct quotes, which limits the ability to assess the originality of the content. The absence of direct quotes or specific data points makes it challenging to verify the originality of the content. The lack of direct citations to primary sources is a notable concern. Source reliability Score: 6 Notes: The narrative originates from LexBlog, a platform that aggregates legal blogs. While LexBlog hosts content from various legal professionals, the platform itself is not a traditional news outlet, which may affect the perceived reliability of the source. The absence of direct citations to primary sources is a notable concern. Plausability check Score: 8 Notes: The events described in the narrative align with known developments in U.S. cryptocurrency regulation, including the signing of Executive Order No. 14178 and the passage of the GENIUS Act. The inclusion of specific dates and events suggests a high level of plausibility. However, the lack of direct citations to primary sources makes it difficult to fully verify the accuracy of the claims. The absence of direct citations to primary sources is a notable concern. Overall assessment Veredict (FAIL, OPEN, PASS): OPEN Confidence (LOW, MEDIUM, HIGH): MEDIUM Summary: The narrative references recent developments in U.S. cryptocurrency regulation, including Executive Order No. 14178 and the GENIUS Act. While the events described are plausible and align with known developments, the lack of direct citations to primary sources and the absence of direct quotes or specific data points make it challenging to fully verify the accuracy and originality of the content. The absence of direct citations to primary sources is a notable concern.