Latest news with #HannahLang
Yahoo
5 days ago
- Business
- Yahoo
Exclusive-Paxos joins spate of crypto companies applying for US trust bank licenses
By Hannah Lang (Reuters) -Paxos Trust Company, the cryptocurrency firm behind PayPal's stablecoin, said it is applying to create a national trust bank in the U.S., joining a raft of digital asset companies looking to gain a larger foothold in the traditional financial system. If the charter is granted by the U.S. Office of the Comptroller of the Currency, it would allow Paxos to manage and hold assets on behalf of customers and settle payments faster. Unlike traditional banks, the license would not allow Paxos to take cash deposits or make loans. If approved, Paxos would convert its limited purpose trust charter with the New York Department of Financial Services to a federal charter under the OCC. The charter wouldn't change Paxos' business model, but would offer the "highest level of regulatory oversight... that carries more weight in the U.S. and globally," according to a source familiar with the matter. Paxos previously applied for a national trust bank charter in 2020, and the firm received preliminary conditional approval from the OCC in 2021. But its application stalled and eventually expired in 2023. Crypto platform Anchorage Digital is currently the only digital asset company with a national trust bank charter. Stablecoin firm Circle along with crypto firm Ripple also applied for national trust bank charters last month. Paxos offers businesses blockchain and stablecoin infrastructure and capabilities, and issues several of its own stablecoins. Paxos issues PayPal's stablecoin PYUSD, which has a market capitalization of more than $1 billion. Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say they could be used to send payments instantly. Last month, U.S. President Donald Trump signed a law to create a regulatory regime for stablecoins, a milestone that experts said could pave the way for the digital assets to become an everyday way to make payments and move money. The law's passage was the culmination of a long lobbying effort by the crypto industry, which donated more than $245 million in last year's elections to aid pro-crypto candidates including Trump, according to Federal Election Commission data. Paxos had previously partnered with Binance, the world's largest cryptocurrency exchange, to market and distribute the Binance USD stablecoin. New York ordered Paxos in early 2023 to stop issuing Binance's stablecoin, and Paxos subsequently ended the partnership. Last week, Paxos reached a $48.5 million settlement to resolve New York charges that the company failed to police illegal activity related to Binance, after Binance's former chief executive pleaded guilty to breaking U.S. anti-money laundering laws as part of a $4.3 billion settlement in 2023.
Yahoo
22-07-2025
- Business
- Yahoo
PNC taps Coinbase to create crypto trading offering for bank customers
By Hannah Lang (Reuters) -PNC Bank is working with cryptocurrency exchange Coinbase to offer crypto trading to the bank's customers, the companies said on Tuesday, in a sign that crypto is moving toward becoming increasingly interconnected to mainstream finance. PNC will use Coinbase's institutional "crypto-as-a-service" platform to develop an offering that will allow PNC clients to buy, hold and sell cryptocurrencies. The Pittsburgh-based financial institution will also offer certain banking services to Coinbase. WHY IT'S IMPORTANT The PNC-Coinbase partnership is a stark shift for the banking sector, which crypto companies at one point had accused of being hostile to their industry. Lawmakers earlier this year held a hearing to scrutinize U.S. banks and their regulators in response to claims they deny services to particular industries. Republicans and Democrats agreed that banks may be improperly denying services to some clients, but disagreed on the root cause. The banking industry has fiercely resisted accusations it denies services based on ideological reasons. It has instead argued that onerous, outdated and opaque rules make it difficult for banks to sometimes provide services, or explain why they cannot. CONTEXT The partnership announcement comes as U.S. President Donald Trump and his administration have embraced cryptocurrencies and enacted industry-friendly policies. Trump signed a law on Friday to create a regulatory regime for dollar-pegged cryptocurrencies known as stablecoins, a major milestone for the digital asset sector, which has long lobbied for such a framework. Several banks including Bank of America and Citibank have said that they are exploring issuing their own stablecoins. KEY QUOTE "Partnering with Coinbase accelerates our ability to bring innovative, crypto financial solutions to our clients," William Demchak, PNC CEO, said in a statement. "This collaboration enables us to meet growing demand for secure and streamlined access to digital assets on PNC's trusted platform."
Yahoo
17-07-2025
- Business
- Yahoo
US House passes stablecoin legislation, sending bill to Trump
By Chris Prentice and Hannah Lang (Reuters) -The U.S. House of Representatives on Thursday passed a bill to create a regulatory framework for U.S.-dollar-pegged cryptocurrency tokens known as stablecoins, sending the bill to President Donald Trump, who is expected to sign it into law. The vote marks a watershed moment for the digital asset industry, which has been pushing for federal legislation for years and poured money into last year's elections in order to promote pro-crypto candidates. House lawmakers also passed a bill developing a regulatory framework for crypto. That will move on to the Senate for consideration. The stablecoin bill, dubbed the Genius Act, received bipartisan support, with many Democrats joining Republicans to back the proposed federal rules. The vote on the market structure bill, known as the Clarity Act, was also notably bipartisan. Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say that they could be used to send payments instantly. If signed into law, the stablecoin bill would require tokens to be backed by liquid assets - such as U.S. dollars and short-term Treasury bills - and for issuers to publicly disclose the composition of their reserves on a monthly basis. The crypto sector has long pushed for lawmakers to pass legislation creating rules for digital assets, arguing that a clear framework could enable stablecoins and other crypto tokens to become more widely used. The sector spent more than $119 million backing pro-crypto congressional candidates in last year's elections and has worked to paint the issue as bipartisan. The House of Representatives passed a stablecoin bill last year but the Senate - in which Democrats held the majority at the time - did not take up that bill. Trump has sought to broadly overhaul U.S. cryptocurrency policies after courting cash from the industry during his presidential campaign. Tensions on Capitol Hill over Trump's various crypto ventures at one point threatened to derail the digital asset sector's hope of legislation this year as Democrats have grown increasingly frustrated with Trump and his family members promoting their personal crypto projects. Trump's crypto ventures include a meme coin called $TRUMP, launched in January, and a business called World Liberty Financial, a crypto company owned partly by the president. The White House has said there are no conflicts of interest present for Trump and that his assets are in a trust managed by his children. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-07-2025
- Business
- Yahoo
Crypto bills set to advance this week take industry closer to mainstream
By Hannah Lang (Reuters) -The crypto industry will take a step closer to going mainstream this week as a series of industry-friendly bills progress through Congress, paving the way for digital assets to potentially be further integrated into traditional finance. The House of Representatives is set to pass a series of crypto-related bills in a week which the Republican majority has dubbed "crypto week." The most notable is a bill that would establish a regulatory framework for stablecoins and is likely to advance to President Donald Trump's desk. That bill -- and another the House is considering that would define when a crypto token is a commodity -- is a huge win for the crypto industry, which has been pushing for federal legislation for years and poured money into last year's elections in order to promote pro-crypto candidates. "Historically, when lawmakers advance industry-backed frameworks, institutional sentiment strengthens. We expect capital that was previously sidelined due to regulatory uncertainty to re-enter," said Jag Kooner, head of derivatives at crypto exchange Bitfinex. "Crypto week" also comes as bitcoin has scaled record highs in recent days as investors dive back into risk assets on the back of tariff-related news, as well as expectations that legislation could potentially unlock capital in the crypto space. The big ticket item the House is set to vote on this week is a bill that would create a set of federal requirements for stablecoins. Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say they could be used to send payments instantly. The bill, dubbed the GENIUS Act, received bipartisan support in the Senate, with several Democrats joining most Republicans to back the proposed federal rules. It is expected to pass the House and would then head to Trump, who has said he will sign it into law. The bill would require tokens to be backed by liquid assets - such as U.S. dollars and short-term Treasury bills - and for issuers to disclose publicly the composition of their reserves on a monthly basis. Crypto proponents say those rules could legitimize stablecoins, making banks, retailers and consumers more comfortable with using them to transfer funds. Ahead of the bill's final passage, many companies across sectors are already considering how they might incorporate stablecoins into their business, said Julia Demidova, head of digital currencies product and strategy at FIS, a financial technology solutions provider. "I think everyone is realizing, look, this is moving forward and they need to have a stablecoin strategy," she said. "They need to think how banks themselves will position against some of these novel, new, emerging fintech-issued stablecoins as well." Still, many Democrats have argued that the GENIUS Act would not prevent big tech companies from issuing their own private stablecoins, and have called for stronger anti-money laundering protections and prohibitions on foreign stablecoin issuers. Many Democrats fiercely oppose both the GENIUS Act and the CLARITY Act, arguing that they have too few consumer protections and would be a giveaway to Trump's own personal crypto ventures by enabling softer-touch regulation. Democratic members are expected to offer several amendments to both the GENIUS Act and the CLARITY Act on the House floor next week, according to a source familiar with the matter, but it is unclear whether any of them will be considered. The House will also vote next week on a bill that would prohibit the U.S. from issuing a central bank digital currency, which Republicans say violate Americans' privacy. The bill has not been considered in the Senate and the Federal Reserve has not indicated a desire to develop a central bank digital currency. MARKET STRUCTURE The House this week is also expected to pass a bill that aims to develop a regulatory regime for cryptocurrencies and would expand the Commodity Futures Trading Commission's oversight of the digital asset industry and is backed by the industry. If signed into law, the bill would define when a cryptocurrency is a security or a commodity and clarify the Securities and Exchange Commission's jurisdiction over the sector, something crypto companies heavily disputed during the Biden administration. That could help crypto companies avoid the oversight of the SEC, which under the Biden administration sued a number of crypto exchanges for flouting its rules. Crypto companies have argued that most crypto tokens should be classified as commodities, rather than securities, which would enable platforms to more easily offer those tokens to their customers. That bill, called the CLARITY Act, has yet to be considered in the Senate, where it would need to pass before heading to Trump for final approval. Trump has sought to overhaul U.S. cryptocurrency policies after courting cash from the industry during his presidential campaign. The sector spent more than $119 million backing pro-crypto congressional candidates in last year's elections. Trump's crypto ventures include a meme coin called $TRUMP, launched in January, and a business called World Liberty Financial, a crypto company owned partly by the president. The White House has said there are no conflicts of interest and that Trump's assets are in a trust managed by his children. Sign in to access your portfolio
Yahoo
14-07-2025
- Business
- Yahoo
Crypto bills set to advance this week take industry closer to mainstream
By Hannah Lang (Reuters) -The crypto industry will take a step closer to going mainstream this week as a series of industry-friendly bills progress through Congress, paving the way for digital assets to potentially be further integrated into traditional finance. The House of Representatives is set to pass a series of crypto-related bills in a week which the Republican majority has dubbed "crypto week." The most notable is a bill that would establish a regulatory framework for stablecoins and is likely to advance to President Donald Trump's desk. That bill -- and another the House is considering that would define when a crypto token is a commodity -- is a huge win for the crypto industry, which has been pushing for federal legislation for years and poured money into last year's elections in order to promote pro-crypto candidates. "Historically, when lawmakers advance industry-backed frameworks, institutional sentiment strengthens. We expect capital that was previously sidelined due to regulatory uncertainty to re-enter," said Jag Kooner, head of derivatives at crypto exchange Bitfinex. "Crypto week" also comes as bitcoin has scaled record highs in recent days as investors dive back into risk assets on the back of tariff-related news, as well as expectations that legislation could potentially unlock capital in the crypto space. The big ticket item the House is set to vote on this week is a bill that would create a set of federal requirements for stablecoins. Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say they could be used to send payments instantly. The bill, dubbed the GENIUS Act, received bipartisan support in the Senate, with several Democrats joining most Republicans to back the proposed federal rules. It is expected to pass the House and would then head to Trump, who has said he will sign it into law. The bill would require tokens to be backed by liquid assets - such as U.S. dollars and short-term Treasury bills - and for issuers to disclose publicly the composition of their reserves on a monthly basis. Crypto proponents say those rules could legitimize stablecoins, making banks, retailers and consumers more comfortable with using them to transfer funds. Ahead of the bill's final passage, many companies across sectors are already considering how they might incorporate stablecoins into their business, said Julia Demidova, head of digital currencies product and strategy at FIS, a financial technology solutions provider. "I think everyone is realizing, look, this is moving forward and they need to have a stablecoin strategy," she said. "They need to think how banks themselves will position against some of these novel, new, emerging fintech-issued stablecoins as well." Still, many Democrats have argued that the GENIUS Act would not prevent big tech companies from issuing their own private stablecoins, and have called for stronger anti-money laundering protections and prohibitions on foreign stablecoin issuers. Many Democrats fiercely oppose both the GENIUS Act and the CLARITY Act, arguing that they have too few consumer protections and would be a giveaway to Trump's own personal crypto ventures by enabling softer-touch regulation. Democratic members are expected to offer several amendments to both the GENIUS Act and the CLARITY Act on the House floor next week, according to a source familiar with the matter, but it is unclear whether any of them will be considered. The House will also vote next week on a bill that would prohibit the U.S. from issuing a central bank digital currency, which Republicans say violate Americans' privacy. The bill has not been considered in the Senate and the Federal Reserve has not indicated a desire to develop a central bank digital currency. MARKET STRUCTURE The House this week is also expected to pass a bill that aims to develop a regulatory regime for cryptocurrencies and would expand the Commodity Futures Trading Commission's oversight of the digital asset industry and is backed by the industry. If signed into law, the bill would define when a cryptocurrency is a security or a commodity and clarify the Securities and Exchange Commission's jurisdiction over the sector, something crypto companies heavily disputed during the Biden administration. That could help crypto companies avoid the oversight of the SEC, which under the Biden administration sued a number of crypto exchanges for flouting its rules. Crypto companies have argued that most crypto tokens should be classified as commodities, rather than securities, which would enable platforms to more easily offer those tokens to their customers. That bill, called the CLARITY Act, has yet to be considered in the Senate, where it would need to pass before heading to Trump for final approval. Trump has sought to overhaul U.S. cryptocurrency policies after courting cash from the industry during his presidential campaign. The sector spent more than $119 million backing pro-crypto congressional candidates in last year's elections. Trump's crypto ventures include a meme coin called $TRUMP, launched in January, and a business called World Liberty Financial, a crypto company owned partly by the president. The White House has said there are no conflicts of interest and that Trump's assets are in a trust managed by his children. 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