Office of the Comptroller of the Currency’s Jonathan Gould says crypto companies should have a path to supervision in the banking system, which can evolve to embrace blockchain. Crypto companies seeking a US federal bank charter should be treated no differently than other financial institutions, says Jonathan Gould, the head of the Office of the Comptroller of the Currency (OCC). Gould told a blockchain conference on Monday that some new charter applicants in the digital or fintech spaces could be seen as offering novel activities for a national trust bank, but noted “custody and safekeeping services have been happening electronically for decades.” “There is simply no justification for considering digital assets differently,” he added. “Additionally, it is important that we do not confine banks, including current national trust banks, to the technologies or businesses of the past.” Read more
The pilot program allows futures commission merchants to accept Bitcoin, Ether and USDC for margin collateral, provided strict reporting criteria are followed. The US Commodity Futures Trading Commission has issued updated guidance for tokenized collateral in derivatives markets, paving the way for a pilot program to test how cryptocurrencies can be used as collateral in derivatives markets. Collateral in derivatives markets serves as a security deposit, acting as a guarantee to ensure that a trader can cover any potential losses. The digital asset pilot, announced by CFTC acting chairman Caroline Pham on Monday, will allow futures commission merchants (FCM) — a company that facilitates futures trades for clients — to accept Bitcoin (BTC), Ether (ETH) and Circle’s stablecoin USDC (USDC) for margin collateral. Read more
While crypto offers banks an opportunity to generate new sources of revenue, Fitch warns it could bring risks that could lead to rating revisions. International credit rating agency Fitch Ratings has warned that it may reassess US banks with “significant” cryptocurrency exposure negatively. In a report posted on Sunday, Fitch Ratings argued that while crypto integrations can boost fees, yields and efficiency, they also pose “reputational, liquidity, operational and compliance” risks for banks. “Stablecoin issuance, deposit tokenization and blockchain technology use give banks opportunities to improve customer service. They also let banks leverage blockchain speed and efficiency in areas such as payments and smart contracts,” Fitch said, adding: Read more
Bitcoin's rejection at the short-term range highs is caused by macroeconomic uncertainty, liquidations and stagnant spot ETF flows. Will clearer signals from the US economy boost BTC volumes? Key takeaways: Economic uncertainty, a delayed jobs report and weakness in the housing market are causing traders to retreat from Bitcoin. Pro traders are incurring high costs to protect against Bitcoin price drops, while in China, stablecoins are being sold at a discount to exit the crypto market. Read more
Improving retail crypto and TradFi investor sentiment align with the recent uptick in Bitcoin price, but sell orders and short positions in the $93,000 range threaten to cap the rally. Over the past two weeks, Bitcoin price repeatedly revisited the $90,000 range as retail investor sentiment improved, fund managers restated their bullish expectations for a potential end-of-year rally, and Strategy announced a sizable BTC purchase. According to VanEck head of digital asset research, Matthew Sigel, Bernstein wrote that “the Bitcoin cycle has broken the 4-year pattern (cycle peaking every 4 years) and is now in an elongated bull-cycle with more sticky institutional buying offsetting any retail panic selling.” Bernstein’s comments follow BlackRock chair and CEO Larry Fink mentioning that sovereign wealth funds are “incrementally” buying Bitcoin as it “has fallen from its $126,000 peak.” Read more