Japan’s derivatives market hits new heights amid rising interest rate expectations

As stablecoins become vital in digital markets, Europe, Japan, and Hong Kong are actively developing their own sovereign-backed tokens to diversify the global financial system and curb US dollar reliance, posing a potential shift in the world's monetary landscape.By 2025, stablecoins have become key players in transforming global finance, increasingly challenging the longstanding dominance of the US dollar. Initially used as utility tokens to facilitate quick transfers among crypto users, these stablecoins now serve as the foundation of onchain finance, influencing price setting, liquidity management, and risk control within digital markets. Despite their widespread presence, most remain pegged to the US dollar, with reserves heavily invested in U.S. Treasury bonds, thus tightly linking crypto liquidity to American monetary policy. This connection means that shifts in US interest rates can significantly impact DeFi systems, reinforcing the dollar's influence over crypto infrastructure. Recognizing the risks of overreliance on the dollar, Europe and Japan are actively developing their own sovereign-backed stablecoins denominated in euros and yen, respectively. Under the MiCA regulatory framework, Europe has introduced euro-pegged tokens like EURAU, EURC, and EURCV, which are backed by proper licensing. The European Central Bank (ECB) has explicitly warned that dependence on dollar-linked stablecoins—often referred to as the "dollar rails"—undermines Europe's monetary independence. Consequently, Europe is advocating for policies that foster the creation and adoption of euro-native stablecoins, supported by clear regulatory and infrastructural development. Achieving broad adoption, however, depends on integrating these tokens into daily transactions, remittances, and trading, requiring open, transparent, and accessible infrastructure. Japan is pursuing similar initiatives. Monex is leading the development of a yen-denominated stablecoin, and JPYC has recently gained regulatory approval. The focus remains on proving that such tokens can facilitate everyday transactions, remittances, and vendor payments easily. This effort aligns with global regulatory strategies aimed at fostering innovation while safeguarding monetary sovereignty and financial stability. Hong Kong is emerging as a potential testing ground for diversifying away from the dollar. The city has implemented strict rules requiring sound reserves, clear redemption procedures, and robust reporting standards. The approach begins with the Hong Kong dollar and could be applied to an offshore yuan (CNH) stablecoin, creating a pathway for China to participate more fully in multicurrency crypto finance. This strategic move aims to weaken the dollar\u2019s hegemony by encouraging exchanges to list non-dollar pairs, even if early trading is slower or more costly, ultimately fostering a more balanced digital financial ecosystem. Meanwhile, US dollar-backed stablecoins have witnessed rapid growth, with their total market capitalization approaching $280 billion. Experts project that this figure could reach $2 trillion within three years. The growth is driven by regulatory developments like the U.S. GENIUS Act, which mandates backing stablecoins with liquid assets. Despite their benefits—such as easier access to dollars and streamlined cross-border payments—this expansion raises concerns. Many regulators and economists worry that the privatization of monetary functions through these stablecoins could threaten financial stability, erode fiscal sovereignty, and increase systemic risks. Helene Rey has warned that stablecoins might reinforce the "exorbitant privilege" of the dollar, enabling the US to borrow more cheaply and exert greater geopolitical influence. European authorities are also voicing concerns. The ECB has highlighted that the widespread use of US dollar-linked stablecoins could severely weaken Europe’s control over its monetary policy, especially if such tokens become common for payments, savings, or settlements. A recent ECB blog emphasizes that euro-denominated stablecoins possess only a small global share—less than €350 million in market capitalization—and underscores the importance of expediting the digital euro project, overcoming legislative delays, and promoting euro-based stablecoins and distributed ledger technologies to ensure faster, cheaper cross-border transactions. Jürgen Schaaf, a senior ECB official, has compared the risks posed by dollar-stablecoins to the challenges faced by dollarized emerging markets, where reliance on the US dollar limits local monetary flexibility. European asset manager Amundi has also expressed caution. While the U.S. GENIUS Act might promote broader stablecoin adoption, it risks destabilizing the global payments system. Vincent Mortier, Amundi's CIO, warns that stablecoins could function as quasi-banks, undermining monetary sovereignty outside the US and jeopardizing financial stability. They point out that approximately 98% of stablecoins are dollar-pegged but are primarily used outside the United States, highlighting potential vulnerabilities. The ECB is actively working on its digital euro, aiming to finalize the design by the end of this year and establish a regulatory framework shortly after. However, there is tension: traditional banks worry about losing deposits and credit if digital euros become widespread. To address these concerns, the ECB is considering measures such as non-interest-bearing wallets and limits on digital euro holdings, although critics fear such restrictions could slow adoption or push users towards dollar-stablecoins. Although euro-, yen-, and yuan-denominated stablecoins are not expected to replace the dollar overnight, these concerted efforts by Europe, Japan, and Hong Kong form part of a broad strategy to diversify and strengthen the digital financial landscape. Success hinges on more than just advanced coding; it requires strong public support, liquid markets, and infrastructure that promotes large-scale adoption. If these initiatives succeed, they could establish a more balanced, resilient crypto economy—one that lessens the US dollar\u2019s dominant role in global digital finance. Source: Noah Wire ServicesVerification / Sources https://insidetelecom.com/stablecoins-challenge-the-dollar-in-global-markets/ - Please view link - unable to able to access data https://www.reuters.com/commentary/breakingviews/time-put-digital-euro-ahead-bank-interests-2025-09-10/ - The European Central Bank (ECB) is advancing plans for a digital euro to counter the rise of U.S. dollar-based stablecoins like USDT and USDC. These developments pose risks to the ECB's control over eurozone monetary policy and sovereignty. A digital euro, managed by the ECB, could mitigate these risks and modernise Europe's payment infrastructure. However, traditional banks express concerns over potential deposit flight, leading the ECB to consider measures such as non-interest-bearing wallets and low holding limits. Critics argue that these concessions could hinder the digital euro's success and push users toward dollar stablecoins. A well-designed digital euro could enhance financial stability and provide Europe with a competitive alternative to stablecoins. The ECB is expected to finalise the digital euro's design by year-end, with lawmakers to follow with a regulatory framework. (reuters.com) https://www.reuters.com/markets/stablecoins-might-reboot-us-exorbitant-privilege-2025-09-10/ - The article discusses the growing influence of U.S. dollar-backed stablecoins and their potential to reinforce global dollar dominance, countering the trend of de-dollarisation. Stablecoins, primarily issued by private entities like Tether and Circle, have rapidly grown in market capitalisation, now nearing $280 billion, with projections suggesting they could reach $2 trillion in three years. This growth is fuelled by regulatory frameworks like the U.S. 'Genius Act,' which mandates backing stablecoins with liquid assets. Despite being a small part of global transactions, their increasing use for cross-border settlements raises concerns among regulators due to the privatisation of monetary functions. Economist Helene Rey warns of risks including financial instability, erosion of the fiscal base, and reduced demand for non-U.S. bonds. With most stablecoins dollar-backed and heavily reliant on U.S. Treasuries, they could bolster what Rey calls the 'exorbitant privilege' of the dollar. Global regulators, including in Europe and China, remain cautious, with discussions about digital currencies gaining urgency. The irony is noted that technology originally designed to challenge traditional finance could end up entrenching U.S. financial hegemony. (reuters.com) https://www.reuters.com/business/finance/amundi-warns-us-stablecoin-policy-could-destabilise-global-payments-system-2025-07-03/ - Amundi, Europe's largest asset manager, has expressed concern that the U.S. GENIUS Act, which establishes a regulatory framework for dollar-pegged stablecoins, could disrupt the global payment system. The legislation, recently passed by the U.S. Senate and awaiting House and presidential approval, may spur widespread adoption of stablecoins, prompting fears of global 'dollarisation' and potential threats to national monetary sovereignty. Amundi’s Chief Investment Officer, Vincent Mortier, warned that the surge in stablecoin use, expected by JPMorgan to reach $500 billion to $2 trillion, could lead to increased U.S. Treasury bond purchases, which may ironically weaken the dollar. Although stablecoins promise benefits such as easier access to dollars and streamlined payments, critics including Italy’s finance minister and the Bank for International Settlements argue they could bypass traditional banking systems, jeopardise monetary sovereignty, and lead to capital flight. Mortier emphasised the risk that stablecoins could act as 'quasi-banks,' undermining global financial stability, especially as 98% of stablecoins are dollar-pegged but mostly used outside the U.S. Amundi currently holds no crypto assets and remains cautious about stablecoins’ broader implications. (reuters.com) https://www.reuters.com/business/dollar-stablecoins-threaten-europes-monetary-autonomy-ecb-blog-argues-2025-07-28/ - A European Central Bank (ECB) blog post by adviser Jürgen Schaaf warns that the growing dominance of U.S. dollar-pegged stablecoins could threaten Europe's monetary autonomy. As stablecoins like those issued by Tether and Circle gain global traction—especially after U.S. President Donald Trump signed a law cementing the dollar’s reserve currency status—the U.S. could enjoy economic advantages such as cheaper debt financing and increased geopolitical influence. In contrast, Europe might face higher borrowing costs, diminished control over monetary policy, and deeper geopolitical dependency on the U.S. The post highlights that euro-denominated stablecoins account for less than €350 million in market capitalisation, a marginal share globally. Schaaf urges Europe to accelerate development of its digital euro project, overcome legislative delays, and promote euro-based stablecoins and distributed ledger technology to ensure faster and cheaper cross-border transactions. Additionally, the blog stresses the need for stronger international coordination on stablecoin regulation to avoid market instability and unchecked U.S. dominance. (reuters.com) https://www.ft.com/content/f276c632-5480-46c3-b266-38c11e6932d3 - A senior official from the European Central Bank (ECB), Jürgen Schaaf, has warned that the increasing use of US dollar-linked stablecoins could severely weaken the ECB's control over monetary policy in the euro area. With stablecoins—digital tokens backed by fiat currencies—growing in circulation to around $250 billion, Schaaf compares the risk to the economic conditions in 'dollarised' emerging markets, where use of the dollar limits local monetary policymaking. Most stablecoins are tied to the US dollar and are becoming more mainstream, partly due to recent US regulatory developments and former President Donald Trump’s support. Schaaf highlights that these stablecoins, if used widely in Europe for payments, savings, or settlements, could diminish the ECB’s power and pose systemic risks. Moreover, a sudden collapse of stablecoins could impact the broader financial system, with concerns about their use in illicit activities like drug trafficking. The ECB is advocating for a digital euro to protect European monetary sovereignty. Schaaf also noted that interest-bearing stablecoins could divert funds from traditional banks, affecting credit availability. He warns that the US's leadership in stablecoins could increase Europe’s financial vulnerability and reduce its economic autonomy. (ft.com) 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: 7 Notes: 🕰️ The narrative presents recent developments in stablecoins and their impact on the US dollar. The earliest known publication date of similar content is June 9, 2025, in a research article titled 'The Impact of Stablecoins on U.S. Dollar Dominance: Evidence from Emerging Market Economies'. (ewadirect.com) The report includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. Quotes check Score: 8 Notes: 🗣️ The report includes direct quotes from various sources. The earliest known usage of these quotes is from the same June 9, 2025, research article. (ewadirect.com) No identical quotes appear in earlier material, suggesting originality. Source reliability Score: 6 Notes: ⚠️ The report originates from a single outlet, Inside Telecom, which is not widely recognized. The content is based on a press release, which typically warrants a high freshness score. However, the lack of coverage from other reputable outlets raises concerns about the reliability of the information. Plausability check Score: 7 Notes: ✅ The claims made in the report align with recent developments in the stablecoin market, such as the European Central Bank's concerns about dollar-pegged stablecoins and China's consideration of yuan-backed stablecoins. (reuters.com) However, the report lacks supporting detail from other reputable outlets, which raises concerns about its credibility. Overall assessment Veredict (FAIL, OPEN, PASS): OPEN Confidence (LOW, MEDIUM, HIGH): MEDIUM Summary: ⚠️ The report presents recent developments in stablecoins and their impact on the US dollar, with some original content. However, the lack of coverage from other reputable outlets and the reliance on a single, less-known source raise concerns about its reliability. The presence of recycled material and the absence of supporting details from other reputable sources further diminish confidence in the report's credibility.

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.

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.