When Donald Trump warned Iran on April 7 that “a whole civilisation will die tonight,” a European diplomat in Washington said his government wanted an urgent answer to a chilling question: Was the US president contemplating the use of a nuclear weapon? Across Europe and Asia, the concern went beyond whether Trump’s apocalyptic threat was real or bluster. One fear, the diplomat said, was that Russia could seize the moment to justify similar threats in Ukraine, triggering a nuclear crisis on two continents. European governments immediately sought reassurance through a traditional channel: the US State Department. But according to the diplomat, officials there gave an unsettling response: they didn’t know what Trump meant or what actions his words might portend. The previously unreported episode points to a historic breakdown in American diplomacy. At a moment when a uniquely unpredictable US president is rattling markets and capitals with dramatic pronouncements, governments around the world are scrambling for ...
The US Federal Reserve proposed a limited “skinny” payment account framework for fintech and crypto firms and called for a temporary pause on Tier 3 applications. The US Federal Reserve proposed creating limited payment accounts that could give legally eligible fintech and crypto-linked banks narrower access to its payment rails without the backstops available to traditional banks. The proposal was released on Wednesday through a Federal Reserve Board request for comment and notice of proposed rulemaking, referring to “skinny master accounts” for nonbank financial institutions. The Fed also encouraged regional Reserve Banks to pause decisions on Tier 3 account-access requests while it finishes the rulemaking, a step staff said is expected to end by Dec. 31, 2026. Read more
Financial regulators are also asked to review regulations that could be amended to streamline applications for eligible fintech firms seeking bank and credit union charters. US President Donald Trump signed an executive order on Tuesday to review any barriers that might be stifling fintech innovation or preventing access to banking partnerships and payment rails. The order directs the Federal Reserve Board to evaluate the legal, regulatory and policy framework governing fintech and crypto firms' access to Federal Reserve payment systems and submit a report to Trump within 120 days. The governors have also been asked to assess the Federal Reserve's legal authority to grant direct access to fintech and crypto firms and to explore “options for expanding such access to the extent permitted by law, subject to appropriate risk management requirements.” Read more
“Congress has the power to slam the brakes on this unwise conflict,” said bill sponsor and Democratic Senator Tim Kaine. The United States Senate has voted to advance a resolution that could force US President Donald Trump to seek congressional authorization to continue the country's war with Iran. The vote on a procedural war-powers measure on Tuesday passed by 50 to 47, with four Republicans also voting in favor, according to Reuters. Policymakers have been arguing that Congress, not the president, should have the power to send troops to war, as spelled out in the US Constitution. Read more
Bitcoin analysis says BTC price could revisit the $65,000 demand area after fresh US-Iran war tensions soured the crypto market mood. Bitcoin (BTC) dropped to $76,000 during the early Asian trading hours on Monday as US-Iran tensions resurfaced. Key takeaways Data from TradingView showed BTC price dropped as much as 7% over the last three days to three-week lows of $76,500, erasing all the gains made since May 1. Read more
The US Commodity Futures Trading Commission is currently headed by Chair Michael Selig, with no public statement from Donald Trump about fully staffing the five-member panel of commissioners. The Republican chair and Democratic ranking member of the US House of Representatives Committee on Agriculture have called on President Donald Trump to fully staff the leadership at a key financial regulator, citing the potential impact of a crypto market structure bill. In a Friday letter to Trump, House Agriculture Committee Chair Glenn Thompson and ranking member Angie Craig asked the president to “nominate a full panel” of bipartisan leaders for the US Commodity Futures Trading Commission (CFTC). The representatives cited “urgent regulatory issues” facing the US regulator in addition to a “significant rulemaking process” required if the Digital Asset Market Clarity Act (CLARITY) becomes law. “Ensuring the Commission is well-equipped as the leading derivatives markets regulator in the world is a bipartisan priority fo...