House Democrats are pressing Treasury Secretary Scott Bessent over World Liberty Financial’s push for a national trust bank charter, citing systemic risk. Democrats in the US House of Representatives are pressing Treasury Secretary Scott Bessent over how regulators are handling World Liberty Financial’s bid for a national trust bank charter to issue a dollar-backed token. In a letter on Thursday, 41 House Financial Services Committee Democrats led by Representative Gregory Meeks cited systemic risk, foreign ownership and potential political pressure on the bank chartering process. They asked Bessent to explain what safeguards exist to prevent foreign government officials or politically connected investors from using the charter process to gain leverage over the US financial system. Read more
Tether’s USDT is nearing its largest monthly supply drop since the collapse of FTX, with whales and smart money traders continuing to reduce their USDT holdings. Tether’s USDT, the world’s largest US dollar-pegged stablecoin, is heading for its steepest monthly supply decline in years as big holders step up redemptions, according to blockchain data. The circulating supply of USDt (USDT) has fallen by about $1.5 billion so far in February, following a $1.2 billion decrease in January, according to Artemis Analytics data reported by Bloomberg. This puts USDT on track for its biggest monthly drop in three years, since the weeks following the collapse of cryptocurrency exchange FTX in November 2022. The USDT supply logged a $2 billion decrease in December 2022 after the collapse of FTX and its 150 subsidiaries sent shockwaves through the crypto industry. Read more
Spot Bitcoin ETFs are approaching a five-week outflow streak, with $2.7 billion in net redemptions year-to-date, as BTC posts one of its weakest starts to a year. Selling pressure in US-listed spot Bitcoin ETFs continued Thursday, with analysts noting the cryptocurrency is on track for one of its worst yearly starts. Spot Bitcoin (BTC) ETFs saw $165.8 million in outflows Thursday, bringing weekly losses to $403.9 million, according to SoSoValue data. The redemptions moved the funds closer to a possible five-week outflow streak, with year-to-date (YTD) losses totaling $2.7 billion. Read more
Metaplanet’s Simon Gerovich addressed critics who accused the company of hiding losses and key details of its Bitcoin bets, as investor anger over leveraged Bitcoin treasuries spreads. Metaplanet CEO Simon Gerovich pushed back against accusations from what he called “anonymous accounts” that the company misled investors about its Bitcoin strategy and disclosures. Critics on X have argued that Metaplanet delayed or withheld price‑sensitive information about large Bitcoin (BTC) purchases and options trades funded with shareholder capital, obscured losses from its derivatives strategy and failed to fully disclose key terms of its BTC‑backed borrowings. In a detailed X post on Friday, Gerovich argued that Metaplanet promptly reported all Bitcoin purchases, option strategies and borrowings, and that critics were misreading its financial statements rather than uncovering misconduct. Read more
Lawmakers criticize South Korea’s Financial Services Commission after Bithumb mistakenly credited 620,000 BTC and the probe faces delays. South Korean lawmakers are stepping up pressure on financial regulators after crypto exchange Bithumb mistakenly credited customers with Bitcoin it did not hold, an error that briefly sparked a rush to sell and renewed questions about oversight of the country’s fast-growing digital-asset market. Lawmakers said the Financial Services Commission (FSC) failed to detect critical flaws in Bithumb’s internal systems despite at least three inspections since 2022, The Korea Times reported Thursday. Representative Kang Min-guk of the main opposition People Power Party said the incident was more than a technical mishap, claiming structural weaknesses in the crypto market, including gaps in regulation and oversight. Read more