Latest news with #cryptoassets
Yahoo
5 days ago
- Business
- Yahoo
SEC Says Liquid Staking Doesn't Run Afoul of Securities Laws
Participants in liquid staking, including depositors and providers, do not need to worry about securities law disclosures, the U.S. Securities and Exchange Commission said in a staff statement on Tuesday. The statement, published by the Division of Corporation Finance, is specific to liquid staking, where participants deposit "covered crypto assets" into a third-party staking protocol provider, which in turn provides receipt tokens to the depositors. Liquid staking allows users to lock up tokens in proof-of-stake blockchains while still maintaining access to their funds through derivative tokens. These tokens can then be used for various DeFi activities. Currently, liquid staking across all blockchains has nearly $67 billion in total-value-locked (TVL), with $31.7 billion in Lido, according to DefiLlama data. Tokens tied to a number of liquid staking protocols, including Lido, Jito and Rocket Pool, went up marginally after the SEC statement was published, but are still down on the day's trading, CoinGecko showed. To be sure, the SEC had previously published another staff statement addressing other forms of staking. Similar to the previous statement, Tuesday's note on liquid staking is not the same as binding guidance from the Commissioners or regulations that have gone through the SEC's formal rulemaking process. However, the new statement does signal how the agency is thinking about the issue and suggests that any crypto industry participant who follows the guidance will not be sued by the regulator. Tuesday's statement is specific to what liquid staking providers do, "including their roles in connection with the earning and distribution of rewards, slashing, and the minting, issuing and redeeming of Staking Receipt Tokens," as well as other ancillary services. The main caveat is that the deposited crypto assets cannot be "part of or subject to an investment contract." "In a Liquid Staking arrangement, the Liquid Staking Provider (whether a Node Operator or not) does not provide entrepreneurial or managerial efforts to Depositors for whom it provides this service," the statement said. "These arrangements are similar to those discussed in the Protocol Staking Statement with respect to 'Custodial Arrangements.' The Liquid Staking Provider does not decide whether, when, or how much of a Depositor's Covered Crypto Assets to stake and is simply acting as an agent in connection with staking the Covered Crypto Assets on behalf of the Depositor," the statement said. 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
Finextra
7 days ago
- Business
- Finextra
Is the UK 'overestimating the risk and underestimating the opportunity' of stablecoins?
0 This content is contributed or sourced from third parties but has been subject to Finextra editorial review. I remember writing about the introduction of the Financial Services and Markets Bill in July 2022 and reflecting how the (then) Chancellor's Mansion House speech had claimed 'it reinforces the UK's position as a leading centre for technology as we safely adopt crypto assets' stressing a 'vision to make the UK one of the most dynamic financial centres in the world.' Fast forward three years, the Financial Services and Markets Act has been in force for two years and Rachel Reeves has just made another Mansion House Speech in which she emphasised growth, international competitiveness and asserted she 'will drive forward developments in blockchain technology… including tokenised securities and stablecoins…' Is this another example of the enthusiastic language that is as much a part of the UK Chancellor's annual speech as the ornate setting, or does it accurately signal the UK's global leadership in digital finance? What's been happening in the rest of the world while we talk about our vision? Stablecoin legislation was introduced in Japan in 2022, in Singapore and the EU in 2023, and Abu Dhabi in 2024. Most recently, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act is set to pave the way for US banks to issue stablecoins and has led to real excitement about what it will mean for US growth, the FS industry and consumers. The Act includes a formal definition of a (fiat-pegged) 'payment stablecoin' and addresses much of the ambiguity and confusion that has characterised the years in which regulation in the US has been led by SEC enforcement. Albeit with varying degrees of success, these examples demonstrate that regulatory reform connected to digital finance can offer clarity and certainty that protects consumers and encourages innovation. In many ways, it is extraordinary to hear a Labour government adopting the myth of regulation as a barrier to innovation and growth, something I have long argued against. The government and regulators are faced with the challenge of balancing innovation and stability while safeguarding consumers and the wider financial system, but that is an argument for effective regulation, not for less regulation. Further clarity is required on stablecoin assets One issue banks are asking the FCA for clarity on currently, is at what point a stablecoin becomes 'systemic' as that is when oversight shifts to the Bank of England. UK Finance's response to the FCA's crypto prudential rules consultation emphasises the need for more detail on how the two regulatory regimes interact and sufficient time to implement the BoE's yet-to-be-published framework. There are also calls for guidance on anti-money laundering (AML) responsibilities, especially for custodians of stablecoin backing assets. Criticism that UK regulation 'overestimates the risk and underestimates the opportunity' of stablecoins may have something to do with the Chancellor's push for regulators to consider growth and competitiveness rather than 'excessive caution'. In her speech the Chancellor referenced the 'remit letters' she had written to the FCA and the PRA last year and extended the call: 'Regulators in other sectors must take up the call I make this evening… …not to bend to the temptation of excessive caution… …but to boldly regulate for growth… …in the service of prosperity for our whole country'. Regulation that balances risk and encourages innovation is possible but it must be agile and principles-based. We have excellent examples here of good, pro-innovation regulation, not least regulatory sandboxes and the CMA9 order, now replicated in jurisdictions around the world. The Electronic Trade Documents Act is another sensible initiative I was closely involved with, legislation that does not mention blockchain technology but made key changes to the definition and capabilities of trade documents (such as bills of lading) that were possessive in nature. The legal change is based on a UN template and allows the digitalisation of trade documents using what is described in the Statute as a 'reliable system'. Blockchain is one of the technologies that makes it possible to meet the criteria required to be a reliable system in that it can be distinguished from any copies, protected against unauthorised alteration, allowing no more than one person to exercise control of the document at any one time. Getting this into statute at the pace we did was a significant UK achievement. That was just the start. Much more action is required to encourage adoption and the attendant economic, environmental and social benefits to be realised. What does the Mansion House speech mean for the future of stablecoin in the UK? Back to the action set out in the Chancellor's speech and her specific references to fintech and blockchain initiatives: 'And for fintech – where almost half of Europe's Fintech's are already based here in the UK…the PRA and FCA are launching a scale-up unit to support innovative firms to grow in the UK, including in our world-leading payments system. The scale-up unit is a new initiative to help high-growth fintech firms transition from early-stage (often supported by regulatory sandboxes) to full-scale operations. This is especially important for payments firms, which face complex regulatory hurdles as they grow. The goal is clearly to retain and grow fintechs in the UK. I find myself echoing the questions I asked 'in these pages' last year in response to the government's National Payments Vision, regarding the implications for growth and whether the measures set out will create competition that drives both innovation and security and benefits for us all? The Chancellor also, of course, mentioned blockchain, tokenised securities and stablecoins, '…and an ambitious design for a new digital gilt instrument…so that UK financial services can be at the forefront of digital asset innovation.' Can we assume the Chancellor is backing blockchain as a foundational technology for the future of finance? Will we get the regulatory clarity around tokenised securities (traditional financial assets such as bonds or shares represented digitally on a blockchain) and stablecoins (digital currencies pegged to stable assets like the pound or dollar) that will boost confidence in the same way GENIUS has in the US? The reference to digital gilts also signals a move to innovate and modernise government debt issuance and settlement but again we are, so far, lacking in the detail. I welcome the rhetoric and appreciate the importance of messaging but wonder how far it has really shifted perception, are we still a place that 'overestimates risk and underestimates opportunity'? Is there the understanding that right sized regulation plots the path we must take, to end forever the false and tediously recurring dichotomy that you can have innovation or regulation, never both.
Globe and Mail
29-07-2025
- Business
- Globe and Mail
Marti to Execute Crypto Asset Treasury Strategy
Marti Technologies, Inc. ('Marti' or the 'Company') (NYSE American: MRT), Türkiye's leading mobility super app, announced today that it will initiate a corporate treasury strategy that incorporates the acquisition of certain crypto assets as part of a diversified approach to managing cash reserves. As part of this strategy, the Company will initially hold approximately 20% of its cash reserves in Bitcoin. The Company has the ability to increase its crypto asset holdings to 50% of its cash reserves, and to purchase other crypto assets such as Ethereum and Solana. In taking this step, Marti joins a growing number of publicly listed companies integrating digital assets into their treasury strategy alongside traditional holdings such as cash, cash equivalents, and marketable securities. These digital assets are recognized by the Company as potential long-term stores of value and as a hedge against systemic financial risk. All digital assets will be custodied through a regulated, institutional-grade custodian, and will be held in compliance with applicable laws and industry best practices related to security, custody, and reporting. 'Our decision to allocate capital to crypto assets acknowledges our belief that Bitcoin and other digital assets have proven their ability to store value alongside hard currencies and gold over the last several years,' commented Oguz Alper Oktem, Founder and Chief Executive Officer of Marti. 'We believe this strategy represents a prudent approach to treasury management, particularly in the current economic environment which carries both inflationary and hard currency risks. We intend to be long term holders of the crypto assets we purchase, and to add to our position over time.' This strategic initiative is not expected to impact the Company's current activities or the execution of its business plans. The Company will disclose any material acquisitions of digital assets in future news releases if and as required under applicable laws. About Marti Founded in 2018, Marti is Türkiye's leading mobility app, offering multiple transportation services to its riders. Marti operates a ride-hailing service that matches riders with car, motorcycle, and taxi drivers, and operates a large fleet of rental e-mopeds, e-bikes, and e-scooters. All of Marti's offerings are serviced by proprietary software systems and IoT infrastructure. For more information, visit Cautionary Note Regarding Forward-Looking Statements Certain statements made in this press release constitute forward-looking statements within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. Any express or implied statements contained in this press release that are not statements of historical fact and generally relate to future events, hopes, intentions, strategies, or performance may be deemed to be forward-looking statements, including, without limitation, statements regarding the Company's crypto asset strategy and its expected benefits and value, the amounts and types of the Company's crypto investments, and the Company's expectation with respect to its future performance and the timing of occurrence related to any of the foregoing. These forward-looking statements are based on management's current expectations and beliefs as of the date they are made. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including the risks discussed in the Company's filings with the SEC, including the Company's Annual Report on Form 20-F. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise, except as required by law.
News24
21-07-2025
- Business
- News24
Digital payments are booming and regulation is struggling to keep up
As the adoption of digital payments grows, the need for regulatory frameworks that promote innovation, protect consumers, and enhance integrity and security of the financial system has become increasingly critical, says the FSCA's Keith Sabilika. Africa's financial landscape is experiencing significant transformation, as digital payments increasingly displace cash, and emerging crypto assets challenge traditional notions of money. Previously constrained by low banking penetration, the continent is now redefining financial inclusion, through the growth of mobile money and fintech innovation. This shift is further propelled by the increased internet and mobile phone penetration, the rise of e-commerce platforms and youthful tech-savvy population. However, as the adoption of digital payments grows, the need for regulatory frameworks that promote innovation, protect consumers, and enhance integrity and security of the financial system has become increasingly critical. The digital payments revolution Mobile money has changed the way people handle payments in Africa, with more than 1.1 billion registered mobile money accounts in 2024, reflecting a 19 percent increase from the previous year. Active accounts in 2024 rose by 13 percent to 286 million, demonstrating both broad adoption and growing usage. Transaction value climbed 12 percent to USD 1.1 trillion, while the number of transactions jumped 28 percent to 81 billion, indicating that users are making more, smaller payments, even as larger transfers persist. This shift reflects deeper financial engagement enabled by expanding smartphone and internet access, as well as innovative mobile money services. Africa has also emerged as one of the fastest-growing regions for crypto assets adoption, recording over $125 billion in on-chain crypto transactions in recent years, a trend that underscores the continent's shift toward cheaper, faster, and more accessible remittance alternatives. Crypto-based remittances, including those facilitated via stablecoins and blockchain networks, are being explored to bypass the high costs and delays associated with traditional banking infrastructure. Simultaneously, fintech APIs are revolutionising cross border transactions by enabling direct wallet-to-wallet interoperability across mobile money platforms, banks, and digital wallets. This significantly reduces friction and cost by eliminating the need for multiple intermediaries, particularly correspondent banks. The regulatory landscape Regulators in Africa are taking actions aimed at levelling the playing field and creating an enabling environment. For instance, the South African Reserve Bank's National Systems Payments Department (NPSD) is spearheading reforms aimed at broadening fintechs and non-bank participation in the national payment system (NPS). Meanwhile, South Africa's Financial Sector Conduct Authority (FSCA) has also emerged as a proactive regulatory force, prioritising consumer, and market development over bureaucratic compliance. A key regulatory milestone in this regard is the anticipated Conduct of Financial Institutions (COFI) Bill, which is expected to be tabled in parliament this year. This legislation is designed to level the playing field across financial institutions and fintech providers through a more adaptable, activity-based regulatory framework. These efforts reflect a shift toward a dynamic regulatory ecosystem, better suited to Africa's fast-moving digital payments sector. Recently in a landmark development, Ghana and Rwanda introduced a licensing passport system, allowing fintech's licensed in one country to expand into the other with minimal regulatory hurdles. By integrating this passport with the Pan-African Payment and Settlement System (PAPSS) and leveraging support from global partners such as the Monetary Authority of Singapore, the initiative is set to streamline cross border payments, lower transaction costs and processing times, and unlock new opportunities for intra-African trade and financial inclusion. Cross border collaboration is critical to overcome to address the enduring challenges involved in intra-Africa payments. In this regard, regional payment systems such as the Pan-African Payment and Settlement System (PAPSS) are addressing the high cost of cross border payments and promoting intra-Africa trade. Challenges and possible solutions The digital payment transition in Africa has made significant progress but faces challenges. While the regulatory landscape for digital payments is evolving, in line with the continent's rapidly expanding fintech sector and increasing focus on financial inclusion, regulatory fragmentation remains a major barrier to seamless cross border fintech innovation. With 54 countries each operating their own licensing requirements, prudential rules and compliance frameworks, fintechs face a patchwork of jurisdictional hurdles whenever they expand regionally. This lack of harmonisation drives up legal and operational costs, prolongs time-to-market and undermines economies of scale forcing many startups to limit their services to domestic markets. Addressing this challenge will require coordinated efforts to align licensing requirements, adopt common data-privacy and anti-money-laundering standards, and build interoperable platforms that enable fintechs to onboard customers, clear transactions and report to regulators under a unified set of rules. Cyber fraud and data breaches are escalating across Africa's digital payments landscape, highlighting the urgent need for comprehensive consumer protection and cybersecurity regimes. In South Africa alone, incidents of digital-banking fraud rose by 45 percent year-on-year, with related financial losses up 47 percent, according to South Africa Banking Risk Information Centre's (SABRIC) Annual Crime Statistics 2023. At the regional level, adopting Pan-African cybersecurity guidelines can ensure consistent incident-reporting, threat-sharing and resilience testing across borders. Trust, access, financial and digital literacy even though they are on the rise, remain uneven and insufficient. These factors act as significant barriers to the adoption of digital payments, especially in underserved and rural communities where low financial literacy and digital unfamiliarity persist. For instance, approximately 400 million in sub-Saharan Africa remain outside the formal financial system. In these areas, several users continue to rely on informal payment methods due to distrust of digital platforms, fear of fraud, and limited understanding of how digital financial services work. Building trust, therefore, requires more than just deploying secure platforms, it necessitates targeted consumer education initiatives that equip users with the knowledge and confidence to engage safely in digital transactions. These programmes should emphasise basic digital financial skills, data protection awareness, and fraud prevention strategies. Looking ahead Africa's digital payments revolution represents one of the most transformative developments in the continent's economic history, a narrative driven by mobile money, fintech innovation, and growing demand for low-cost, real-time financial services. With over 1 billion mobile money accounts and an expanding array of digital wallets, crypto-enabled remittance platforms, and API-powered fintech infrastructure, Africa is redefining how value moves across borders and communities.
Yahoo
18-07-2025
- Business
- Yahoo
Metafide CEO: Stablecoin Law "Great Thing for Market"
The total market value of cryptoassets surged past $4 trillion for the first time, driven by a rally in altcoins and momentum from a sweeping US legislative push to regulate the sector. The options market shows traders are increasing bets for even higher prices in the weeks ahead. Metafide Co-Founder and CEO Francis Speiser tells Bloomberg Businessweek Daily he believes the Stablecoin legislation signed into law today by Presidential Donald Trump will help the industry grow by adding additional transparency to the industry. 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
