Congress is advancing developer protections as BRCA and other crypto bills reshape U.S policy.

Morgan Stanley applied to the OCC for a national trust bank for digital asset custody. BTC testing support at 65.924$; institutional expansion is accelerating. Details and technical analysis here. ...

The CLARITY Act’s stablecoin yield debate stalls US digital asset regulation in the Senate. Banks want strict limits, while crypto advocates warn against stifling innovation. Continue Reading: Senate Deadlock Stalls US Crypto Regulation Over Stablecoin Yields The post Senate Deadlock Stalls US Crypto Regulation Over Stablecoin Yields appeared first on COINTURK NEWS .

BlockBeats News, February 28th, White House Crypto and AI czar David Sacks stated, "White House Crypto Council Executive Director Patrick Witt has done an outstanding job mediating between the banking and crypto industries. No one has worked harder than him to drive the passage of crypto market structure legislation. By the way, the crypto industry has already made significant concessions on stablecoin yields, and now it's time for banks to respond in kind."

Building software has never been against the law. But in recent years, some crypto and blockchain developers have found themselves facing federal criminal charges simply for creating tools that others used to move cryptocurrency — even when those developers never held a single dollar of anyone’s money. A new bill introduced in the US House of Representatives is aimed squarely at closing that gap. A Bipartisan Push To Protect Developers Representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren announced Thursday that they are sponsoring the Promoting Innovation in Blockchain Development Act. The legislation targets a specific section of federal law — Section 1960 — which currently prohibits the operation of unlicensed money transmitting businesses. The bill would tighten the definition so that the law applies only to those who actually hold or control other people’s digital assets. Developers who write code, maintain networks, or build platforms without ever touching user funds would be explicitly excluded from that category. New bipartisan bill protects US software developers from unfair criminal prosecution @RepFitzgerald , @RepBenCline , @RepZoeLofgren introduced ‘Promoting Innovation in Blockchain Development Act of 2026’ to protect engineers—who write code but do not control other people’s… pic.twitter.com/NCO3UTgVjC — DeFi Education Fund (@fund_defi) February 26, 2026 The bill drew quick support from two prominent crypto advocacy groups. The Blockchain Association called it a critical step toward encouraging more US-based developers to build at home rather than abroad. The DeFi Education Fund (DEF) went further, saying the legislation would allow software builders to “construct neutral technology here at home without worrying about being criminally prosecuted as if they are a financial intermediary.” We applaud the bipartisan Promoting Innovation in Blockchain Development Act of 2026 introduced today by @RepFitzgerald , @RepBenCline , and @RepZoeLofgren . The targeted fixes in this bill will help to strengthen US leadership in the infrastructure of the future by creating a… — Jump Crypto (@jump_) February 26, 2026 Both organizations have long argued that existing law has been applied too broadly against developers who had no direct role in how their tools were used. Real Prosecutions Behind The Push For Change The urgency behind this bill is not theoretical. Reports say the cases of Tornado Cash developer Roman Storm and the founders of Samourai Wallet have become rallying points for the crypto developer community. Storm was convicted in August 2025 on charges of running an unlicensed money transmitting business — a verdict that sent shockwaves through the industry. Samourai Wallet co-founders Keonne Rodriguez and Will Lonergan Hill pleaded guilty to similar charges and were later handed prison sentences of five and four years respectively. In both cases, the developers built tools used by others to transfer funds, but did not themselves hold or manage those assets. Storm had yet to be sentenced as of Thursday and still faces unresolved charges tied to two separate counts. Whether the new legislation, if it becomes law, would have any bearing on cases already filed remains an open question. The bill appears to be written with future prosecutions in mind rather than those already underway. The Senate Is Already Working On Its Own Version The House bill does not exist in isolation. Reports say US Senators Cynthia Lummis and Ron Wyden introduced their own developer protection measure in January — the Blockchain Regulatory Certainty Act — which takes a similar position: that writing code or keeping a network running does not make someone a money transmitter under federal law. Featured image from Unsplash, chart from TradingView

When US crypto regulators cracked down on Tornado Cash in 2022, the assumption was simple: shut down the tool, shut down the problem. It didn’t work out that way. Related Reading: Is Bitcoin The Poor Man’s Hedge Against Inflation? Coinbase CEO Thinks So New research from the Cambridge Centre for Alternative Finance (CCAF) shows that coin mixer usage has climbed back toward pre-ban levels — and that the people most effectively pushed out by the sanctions were not the criminals, but ordinary users seeking financial privacy. Railgun Now Dominates A Recovering Market According to CCAF researchers Wenbin Wu and Keith Bear, total crypto mixer transactions reached approximately 32,000 in 2025 — a significant jump from roughly 21,000 in 2024 and 16,000 in 2023. Usage has been climbing steadily since the US Treasury lifted its sanctions against Tornado Cash on March 21, 2025. Railgun, a protocol that screens deposits against lists of flagged addresses, now handles 71% of all mixer transaction volume. Tornado Cash accounts for around 25% of 2025 transactions, while Privacy Pools holds the remaining 5%. Both Railgun and Privacy Pools attempt to filter out known bad actors before crypto funds enter the system. But reports from CCAF note a meaningful gap — blacklists are updated only as new exploits are discovered, leaving a window where funds from freshly flagged addresses can still pass through. Sanctions Scared Off Legitimate Users More Than Criminals The 2022 crackdown caused immediate disruption. Tornado Cash’s daily transactions collapsed by 97% within days. Across the broader mixer market, volume fell 45%. But the disruption was uneven. Wu told researchers that sanctions “primarily deterred compliant users while illicit actors adapted” — first by migrating to alternative platforms, then to cross-chain bridges and decentralized exchanges altogether. Deposit patterns tell the same story. Before 2022, centralized exchanges — which require identity verification — contributed meaningfully to mixer funding. After the ban, those deposits essentially vanished. By 2025, 95% of all crypto mixer funding came from unlabeled wallet addresses with no recorded entity ties, up from 76% in 2020. Related Reading: Bitcoin Sell-Off Slows Down, But The Road To Recovery Is Long — Analyst Most Transactions Now Happen Within 24 Hours Before the ban, most mixer activity occurred more than 24 hours after wallet creation. That pattern has flipped. Researchers say this faster behavior is “consistent with users seeking to avoid identification.” Still, a 2023 Federal Reserve Bank of St. Louis paper found that only around 30% of Tornado Cash traffic could be linked to illegitimate sources — a reminder that privacy tools serve lawful purposes too. The demand, from both camps, never went away. Featured image from Unsplash, chart from TradingView

A group of Senators have written a letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent requesting that Binance’s compliance to its 2023 settlement be reviewed. The lawmakers are requesting for proof that an impartial investigation will be carried out given Binance’s ties to the Trump family and the Trump administration’s pro-crypto attitude. Will Binance be investigated? A group of 11 Democratic senators, led by Senator Elizabeth Warren sent a formal letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent, demanding a “thorough and impartial” investigation into Binance. The senators’ major concern is whether or not Binance is sticking to the rules of its massive 2023 settlement. Back then, the exchange paid over $4 billion and admitted to failing to stop money laundering. As part of that deal, Binance agreed to let U.S. officials watch over its operations. However, the senators now say that new reports suggest the exchange has resumed its old ways. They also claim that as much as $1.7 billion in digital assets moved through Binance to Iranian entities , including groups linked to terrorism like the Houthis and the Islamic Revolutionary Guard Corps. CEO Richard Teng and the company’s legal representatives at Withers Bergman denied a recent Wall Street Journal (WSJ) article that alleged that the exchange fired staff for flagging $1 billion in Iranian-linked transactions, calling it “defamatory” and “categorically false.” The company’s lawyers also argued in a letter to the WSJ editorial board that the newspaper ignored detailed corrections provided by the company before the story was published. Binance stated that between January 2024 and January 2026, it reduced its direct exposure to major Iranian cryptocurrency exchanges by more than 97.3%. The company noted that while anyone can try to send money to an address on public blockchains, their job is to monitor and stop those funds. They claim they are doing this better than any of their global peers. Binance also stated that it has invested hundreds of millions of dollars into its compliance systems. Its compliance team now includes over 1,500 people, which is roughly 25% of its entire global workforce. Senator Richard Blumenthal also opened an inquiry into Binance through the Senate’s Permanent Subcommittee on Investigations. He is specifically looking for records regarding two Hong Kong-based entities that were reportedly used to funnel money toward Iran. Why are lawmakers worried about Trump’s ties to Binance? Democratic lawmakers are worried that the Trump administration might not be tough enough on Binance for several reasons. First, is the pardon of Changpeng Zhao, the founder of Binance. In October 2025, President Trump granted a “full and unconditional pardon” to Zhao, who had served four months in prison for failing to stop money laundering. Trump described the prosecution of Zhao as a “war on cryptocurrency” by the previous administration. His decision was criticized by Senator Warren, who argued that the pardon sends a message that crypto executives can break the law if they have the right political connections. Second, reports indicate that Binance has been a key supporter of “World Liberty Financial,” a crypto venture backed by President Trump and his sons. The exchange has also reportedly encouraged its 275 million users to use the USD1 stablecoin. There are even reports that an Emirati fund used USD1 to make a $2 billion investment in Binance itself, an arrangement that could earn the Trump family millions in interest every year. Because of these close ties, the senators are asking Attorney General Bondi and Secretary Bessent to prove that any investigation will be fair. They have given the DOJ and Treasury until March 13, 2026, to explain what steps they are taking to review Binance’s conduct. If you're reading this, you’re already ahead. Stay there with our newsletter .

Morgan Stanley seeks OCC crypto trust charter to custody digital assets. The $8T giant is the first TradFi player yet in the wave of eight conditional approvals.

South Korea’s National Tax Service (NTS) has reportedly lost nearly $4.8 million worth of seized cryptocurrency after it accidentally published an unredacted wallet recovery phrase in a press release, the third major crypto custody failure by Korean authorities in as many months and the most embarrassing yet. On February 26, the NTS issued a press release announcing that it had seized a total of 8.1 billion won (approximately $5.6 million) from an enforcement that impacted 124 high-value and habitual tax delinquents. Among the accompanying photographs was an image of hardware confiscated from a delinquent taxpayer identified as “Mr. C,” a Ledger cold wallet device, and, displayed next to it in plain view, a handwritten mnemonic phrase. However, no redaction was applied to the phrase. Experts put the NTS on blast over the phrase leak A mnemonic, usually a sequence of 12 to 24 words, is the master key to a cryptocurrency wallet. It functions as a public certificate, password, and security card. Therefore, whoever knows it can restore the wallet on any device and withdraw its contents from anywhere in the world, with no further authentication required. By the early hours of February 27, a person or persons unknown had acted on the intelligence the NTS had freely provided. According to Professor Cho Jae-woo of Hansung University’s Blockchain Research Institute, on-chain data from Etherscan shows that 4 million Pre-Retogeum (PRTG) tokens were transferred out of the exposed wallet in three batches, following a preliminary deposit of Ethereum to cover transaction fees. The estimated value of the tokens at the time of the theft was approximately 6.4 billion won, which is around $4.8 million. “If they seized virtual assets, they would disclose the most important mnemonic in a press release that the entire nation can see,” said Professor Cho. “This is like advertising to open your wallet and take your money.” The NTS had not issued a public statement on the matter at the time of writing. South Korea adds another blunder to a worrying pattern The NTS incident is, in fact, the third significant crypto custody failure by South Korean public institutions since January. The Gwangju District Prosecutors’ Office discovered that it had lost 320.8 Bitcoin, worth over $21 million, according to current market rates, after a staff member accessed a phishing site while attempting to verify wallet storage during an asset handover. The Bitcoin, confiscated from a family found to have laundered proceeds of an illegal gambling operation into cryptocurrency, had been bound for the national treasury following the conclusion of criminal proceedings. It was eventually recovered on February 17 after investigators froze domestic and international exchange accounts, which authorities say may have prompted the hacker to return the Bitcoin voluntarily when they were unable to convert it to cash. This same February, Seoul’s Gangnam Police Station disclosed the disappearance of 22 Bitcoins worth over $1.4 million, discovered during a nationwide audit of law enforcement cryptocurrency holdings that had itself been triggered by the Gwangju incident. Officers at the station had failed to transfer the confiscated Bitcoin to a government-controlled cold wallet, instead leaving funds managed by a third party without retaining the seed phrase needed to access them. So far, two suspects have been arrested in connection to the stolen Bitcoin. South Korea’s Supreme Court ruled in January 2026 that Bitcoin qualifies as an object of seizure under criminal law, a landmark decision that formally expands the state’s authority to confiscate digital assets. The country is also working on regulating the crypto space with stablecoins in focus, and it plans to do so this year. However, these three incidents expose a consistent gap between South Korea’s ambitions as a digital asset regulatory power and the operational readiness of its agencies. If you're reading this, you’re already ahead. Stay there with our newsletter .

The bill, introduced by Federal Deputy Tabata Amaral, amends the current regulation and establishes the crime of cryptocurrency tax evasion, aiming to curb the rising volume of remittances and settlement alternatives using dollar proxies, including stablecoins. Brazil Aims To Criminalize Undeclared Stablecoin Transactions In New Bill Brazil is taking measures to tighten its grip on

Nine lawmakers asked the federal agencies to investigate the global crypto exchange after reports of potential funding channeled to terrorist groups.

Institutional capital has transformed the cryptocurrency market dynamics, changing who participates and how digital assets are traded. The arrival of spot exchange-traded funds, corporate treasury allocations, and access through major brokerage platforms has pulled Bitcoin and Ethereum deeper into traditional finance. Vanguard, for instance, reversed its long-held anti-crypto stance just a few months ago, allowing trading in funds that hold Bitcoin, Ethereum, XRP, and Solana. However, talking about bad timing, these cryptocurrencies have struggled in the months following that policy change. Challenging Months For Institutional Investors The entrance of major asset managers such as BlackRock and Fidelity Investments was a structural turning point for Bitcoin. The January 2024 launch of Spot Bitcoin ETFs in the United States opened the door for pension funds, registered investment advisors, and other conservative capital pools to gain exposure without directly holding Bitcoin. These ETFs have accumulated billions of dollars in inflows, with custodians now holding a meaningful share of Bitcoin’s circulating supply. Related Reading: Here’s All You Need To Know About The Bitcoin Price This Week However, the past few months have been really challenging for investors. Notably, the last month of inflows into Spot Bitcoin ETFs was in October 2025, when it was pushing to new all-time highs above $126,000. Since then, it has been months of net outflows, and this has weighed down on Bitcoin’s price action. Same goes for Spot Ethereum ETFs, which recorded consecutive months of outflows since November 2025. Vanguard clients are likely among those feeling the impact most directly. In December 2025, US-based investment management company Vanguard reversed its anti-crypto stance and started allowing trading of ETFs and mutual funds that hold Bitcoin, Ethereum, XRP, and Solana. The availability of these crypto products on a major mainstream brokerage like Vanguard was a milestone for crypto investing. Vanguard manages over $12 trillion in assets and serves tens of millions of investors. Unsurprisingly, the price action of Bitcoin and other top cryptocurrencies initially reacted positively to the Vanguard news. However, the timing coincided with a downturn across the entire crypto market, which has been having a red 2026 so far. Since Vanguard’s rollout, Bitcoin’s price has fallen by about 30%, while Ethereum, Solana, and XRP have fallen by about 40% in the same period. Is Institutional Involvement A Threat Or A Sign Of Maturity? It is clear that institutional entry has not erased the volatile nature of crypto markets. Bitcoin and Ethereum are still subject to swings in investor risk appetite, although this is now at a larger scale. Therefore, the question of whether institutions are killing Bitcoin and Ethereum is based on perspective. Related Reading: Why Investors Are Not Buying Bitcoin And Ethereum Despite ‘Low’ Prices The presence of regulated ETFs means that downturns are now absorbed by a wider set of market participants. Companies like BitMine and Strategy are still in the business of huge purchases. New investor bases like this can help sustain prices over time. However, one thing is clear: cryptocurrencies like Bitcoin, Ethereum, XRP, and Solana are no longer fringe assets operating outside the traditional investment system; they now sit within it. This integration will even become more clear once the CLARITY Act is passed in the US. Featured image from iStock, chart from Tradingview.com

Ryan VanGrack says states are misrepresenting federal law as they move to block prediction markets.

Cryptocurrency exchange Binance is once again facing mounting scrutiny in Washington, as lawmakers question whether the company is living up to the terms of its 2023 settlement with US authorities — an agreement that ultimately led to the resignation of its founder and former CEO, Changpeng Zhao (CZ). Democrats Urge DOJ And Treasury Investigation On Friday, journalist Eleanor Terrett of Crypto In America reported that eleven Democrats on the Senate Banking Committee, led by crypto-skeptic Elizabeth Warren, sent a letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent urging their departments to examine Binance’s operations. Related Reading: Jane Street Faces New Lawsuit: Trump Media Calls For Federal Investigation The lawmakers pointed to recent media reports alleging illicit finance activity on the platform, including transactions reportedly linked to Iran, and warned that such conduct could place Binance in violation of its 2023 settlement. In their letter, the senators also referenced Binance’s expanding business relationships with President Donald Trump’s crypto ventures, as well as Trump’s pardon of Zhao. They called for what they described as a “thorough, impartial” investigation into whether the exchange is adhering to its legal obligations. The latest pressure follows a separate inquiry launched earlier in the week. As previously reported by Bitcoinist, Democratic Senator Richard Blumenthal initiated a formal probe through the Senate’s Permanent Subcommittee on Investigations. Binance Denies Sanctions Violations In a letter dated February 24 and addressed to Binance co-CEO Richard Teng, Blumenthal cited reporting that suggested the exchange may have facilitated “large-scale violations” of US and international sanctions on Iran. Related Reading: Circle Tops Q4 Revenue Forecasts, Shares Surge 30% — Key Numbers Inside Blumenthal noted that Binance appeared to ignore warnings and recommendations aimed at reducing Iranian money laundering operations. He also referred to the same reports cited by the Senate banking committee Democrats, indicating that $1.7 billion in transactions to Iran may have passed through the platform. Binance has strongly denied the allegations. The company said it conducted an internal review and found “no evidence of violations of applicable sanctions laws.” The exchange also rejected claims that it had dismissed investigators for raising concerns related to sanctions compliance. Featured image from OpenArt, chart from TradingView.com

Bitcoin suffered a sharp drop following U.S. policy moves and geopolitical turmoil. Continue Reading: Geopolitical Tensions Drive Bitcoin to Notable Losses The post Geopolitical Tensions Drive Bitcoin to Notable Losses appeared first on COINTURK NEWS .

US senators urged the Justice and Treasury Departments to investigate Binance’s compliance with sanctions. The letter cited concerns about Iran-related transactions and links to the Trump family's crypto interests. Continue Reading: US Senators Press Justice Department to Probe Binance’s Sanctions Compliance and Trump Family Ties The post US Senators Press Justice Department to Probe Binance’s Sanctions Compliance and Trump Family Ties appeared first on COINTURK NEWS .

BitcoinWorld Gary Gensler Apology: Stunning Claim of Former SEC Chair’s Regret to Ripple CEO Emerges WASHINGTON, D.C. – A potentially seismic development has surfaced in the long-running legal war between Ripple Labs and the U.S. Securities and Exchange Commission. According to a report from cryptocurrency news outlet U.Today, former SEC Chairman Gary Gensler allegedly offered a personal apology to Ripple CEO Brad Garlinghouse. This stunning claim originates from a recent high-level White House briefing on digital asset policy, signaling a dramatic shift in tone for one of crypto’s most contentious battles. Gary Gensler Apology Claim: The White House Meeting Incident The alleged Gary Gensler apology reportedly occurred in late 2024. Consequently, key figures from the cryptocurrency industry and federal regulators convened at the White House. The meeting aimed to discuss cohesive frameworks for digital asset oversight. According to sources familiar with the event, former Chairman Gensler approached Brad Garlinghouse directly as the briefing concluded. Gensler then simply stated, “Sorry,” before departing. Neither the SEC nor Ripple has officially confirmed or denied this account publicly. However, the report has ignited intense speculation across financial and legal communities. This incident, if verified, represents a profound moment. For years, the SEC under Gensler maintained that Ripple’s XRP token constituted an unregistered security. The agency initiated its lawsuit against Ripple, Garlinghouse, and co-founder Chris Larsen in December 2020. Therefore, a personal apology from the former architect of that enforcement strategy would be unprecedented. It suggests a recognition of the case’s complexity and its widespread impact on the industry. Context of the Ripple SEC Lawsuit Timeline To understand the gravity of the alleged apology, one must examine the lawsuit’s history. The SEC’s case against Ripple has been a defining legal conflict for cryptocurrency regulation in the United States. The core allegation centered on Ripple’s sale of XRP as an unregistered securities offering worth over $1.3 billion. Ripple fiercely contested this, arguing XRP is a currency and a medium of exchange, not a security. The litigation produced several landmark rulings. Most notably, in July 2023, Federal Judge Analisa Torres delivered a partial summary judgment. She ruled that Ripple’s programmatic sales of XRP on digital asset exchanges did not constitute investment contracts. However, she also found that Ripple’s institutional sales of XRP violated securities laws. This mixed decision created regulatory ambiguity but was widely seen as a significant setback for the SEC’s broad enforcement approach. December 2020: SEC files lawsuit against Ripple Labs, Brad Garlinghouse, and Chris Larsen. July 2023: Judge Torres issues pivotal summary judgment, distinguishing between institutional and programmatic sales. October 2023: SEC drops charges against Garlinghouse and Larsen personally. 2024: Case proceeds to remedies phase regarding institutional sales violations. This legal backdrop makes the alleged apology particularly noteworthy. The SEC secured a partial victory but failed to establish the sweeping precedent it sought. The case’s outcome has already influenced other enforcement actions and legislative debates. Expert Analysis on Regulatory Implications Legal and policy experts are weighing the potential implications of this claim. Professor Sarah Johnson, a securities law scholar at Georgetown University, provided context. “A personal apology in this context is highly unusual,” Johnson stated. “It does not change legal precedent, but it could reflect an internal acknowledgment of the case’s strategic costs. The SEC expended enormous resources for a mixed result that arguably muddied the regulatory waters.” Furthermore, the alleged incident occurred at a White House policy briefing. This setting underscores the evolving political stance on cryptocurrency. The current administration has shown increased engagement with the digital asset sector, pushing for clearer legislative guardrails. An apology from a former top regulator aligns with a broader shift toward more nuanced dialogue after years of aggressive enforcement. Impact on the Cryptocurrency Industry and Market The report of the Gary Gensler apology has immediate and symbolic repercussions. For market participants, it reinforces a perception of weakening regulatory hostility. XRP’s price often reacts to news in the Ripple SEC lawsuit. While this claim is unconfirmed, it contributes to a narrative of de-escalation. More importantly, it may embolden other crypto firms engaged in legal disputes with regulators. The industry’s response has been cautiously optimistic. Many executives have long criticized the SEC’s “regulation by enforcement” strategy. They argue it stifles innovation and creates uncertainty for U.S. companies. An apology from a former chairman could validate those criticisms at the highest level. It may also encourage Congress to accelerate bipartisan efforts to pass comprehensive crypto legislation, reducing reliance on agency enforcement to set policy. Key Phases of the Ripple vs. SEC Legal Battle Phase Key Event Outcome/Status Initial Filing SEC alleges XRP is a security (Dec 2020) Lawsuit begins; XRP delisted from major U.S. exchanges. Summary Judgment Judge Torres’s ruling (July 2023) Split decision: Programmatic sales not securities, institutional sales were. Remedies Phase Determining penalties for violations (2024) Ongoing; focused on institutional sales conduct. Alleged Incident Reported Gensler apology (Late 2024) Unconfirmed; occurs outside formal litigation. Ultimately, the claim highlights the human and reputational dimensions of high-stakes regulation. Legal battles are not merely about statutes and rulings. They also involve the careers and legacies of the individuals leading them. An apology suggests a personal reflection on the path chosen and its consequences. Conclusion The alleged Gary Gensler apology to Ripple CEO Brad Garlinghouse remains an unverified but profoundly significant claim. It emerges at the intersection of a landmark legal case and a shifting political landscape for cryptocurrency regulation. While it does not alter the legal findings in the Ripple SEC lawsuit, it symbolizes a potential thaw in regulatory relations. This incident underscores the complex, often personal, nature of defining rules for emerging technology. As the industry seeks clarity, such moments remind all stakeholders that regulation evolves through both court judgments and human dialogue. The full truth of the White House exchange may never be public, but its reporting alone marks a new chapter in the ongoing story of crypto’s integration into the global financial system. FAQs Q1: Has Gary Gensler or the SEC confirmed the apology? No. As of this reporting, neither former Chairman Gary Gensler, the SEC, nor Ripple Labs has officially confirmed or denied the alleged incident. The claim originates from a report by U.Today citing unnamed sources. Q2: Does this apology affect the ongoing Ripple vs. SEC lawsuit? Legally, no. The lawsuit is governed by court rulings and filings. A personal apology, even if confirmed, is not a legal document and does not change the judgments or pending remedies in the case. It is a symbolic political event. Q3: What was the key legal outcome in the Ripple case? In July 2023, Judge Analisa Torres ruled that Ripple’s programmatic sales of XRP on exchanges were not securities offerings. However, she ruled that Ripple’s direct institutional sales of XRP did violate securities law by being unregistered investment contracts. Q4: Why would this apology be considered significant? It is significant because Gary Gensler was the SEC chairman who initiated and pursued the lawsuit. A personal apology from him would be seen as a rare acknowledgment of the contentious and costly nature of the legal battle, potentially reflecting a change in regulatory posture. Q5: What is the current status of the lawsuit? The case is in the “remedies” phase. The court is determining what penalties and injunctions apply to Ripple for the institutional sales that were found to violate securities law. This phase will decide the financial and operational consequences for the company. This post Gary Gensler Apology: Stunning Claim of Former SEC Chair’s Regret to Ripple CEO Emerges first appeared on BitcoinWorld .

US DOJ seizes $578 million in crypto from Chinese crime syndicates. Will be returned to victims, outside Trump BTC reserve. US holds 328k BTC. BTC 65.542$, support 64.257$. Chainalysis: Scams incre...

BitcoinWorld Bitcoin Custody Breakthrough: Citi’s Strategic Move to Bridge Crypto and Traditional Finance by Year-End In a landmark announcement that signals a profound shift in financial infrastructure, Citigroup Inc. revealed plans to launch a dedicated Bitcoin custody service for its institutional clientele by the end of this year. Nisha Surendran, the bank’s head of crypto custody product, made the pivotal disclosure at the World Strategic Forum, outlining a clear roadmap to integrate Bitcoin directly into the banking system’s core operations. This strategic initiative, reported first by CoinDesk, represents one of the most significant endorsements of cryptocurrency by a global systemically important bank (G-SIB) to date, potentially unlocking billions in institutional capital currently sidelined due to custody concerns. Citi’s Bitcoin Custody Service: A Bridge for Institutional Capital Nisha Surendran’s announcement provides concrete details about Citi’s phased approach. The plan will commence with the development of institutional-grade key management and wallet infrastructure, a foundational step that addresses the primary security concerns of large-scale investors. However, the ultimate vision extends far beyond basic storage. Surendran emphasized that the larger objective is to create a seamless experience where clients can manage Bitcoin holdings within the same platforms and reporting systems they use for traditional assets like equities and bonds. This integration aims to provide a unified service model across cryptocurrency, securities, and traditional finance. The decision follows extensive client engagement. A customer survey conducted by Citi revealed a strong preference among institutional investors to avoid the operational complexities of managing private keys, wallets, or single-use addresses. Instead, these clients expressed a clear desire to gain Bitcoin exposure through the familiar, regulated, and audited framework of a trusted banking partner. The Evolving Landscape of Institutional Crypto Custody Citi’s entry into the Bitcoin custody arena significantly alters the competitive landscape. For years, specialized firms like Coinbase Custody, BitGo, and Anchorage have dominated this niche. Meanwhile, other traditional finance giants have made cautious moves. For instance, BNY Mellon launched a digital asset custody platform in 2022, and Fidelity Investments has offered Bitcoin custody to institutional clients since 2019. However, Citi’s scale and global reach as a top-tier custodian for traditional assets bring unprecedented weight to the sector. The table below contrasts the emerging approaches to institutional custody: Custodian Type Examples Primary Advantage Consideration Specialized Crypto-Native Coinbase Custody, BitGo Deep technical expertise, agile product development Perceived as newer entities vs. century-old banks Traditional Asset Managers Fidelity Digital Assets Trust from long-standing institutional relationships Initially focused on a narrower client base Global Systemically Important Banks (G-SIBs) Citi, BNY Mellon Integrated traditional finance services, global regulatory navigation Typically slower-moving due to complex compliance This move by Citi validates a growing trend: institutional demand is no longer speculative but operational. Investors seek the same standards of security, insurance, legal recourse, and operational reliability they expect for any other asset class. The bank’s initiative directly responds to this demand by promising to build infrastructure that meets these rigorous requirements. Expert Analysis: Why Custody is the Critical Gateway Financial analysts and regulatory experts point to custody as the single most significant barrier to large-scale institutional adoption of Bitcoin. “For pension funds, endowments, and large asset managers, the question is never just about price appreciation,” explains Michael Carter, a fintech analyst at Bernstein Research. “The first and most critical question is: ‘Where do we hold it safely, and who is liable if something goes wrong?’ A bank like Citi entering the space provides a credible answer to that question, backed by its balance sheet and regulatory standing.” The regulatory environment is also evolving to support such services. In the United States, the Office of the Comptroller of the Currency (OCC) has issued interpretive letters allowing national banks to provide cryptocurrency custody services. Furthermore, the proposed regulatory frameworks in jurisdictions like the European Union (MiCA) and the UK are creating clearer rules for digital asset custodians. Citi’s plan likely incorporates years of proactive dialogue with regulators across its key markets to ensure full compliance from launch. Technical Foundations and Security Implications The development of “institutional-grade key management” is a technical challenge with profound security implications. Industry best practices, which Citi is expected to follow or exceed, involve a combination of: Multi-Party Computation (MPC): This cryptography technique splits a private key into several shares distributed among multiple parties. Transactions require a threshold of shares to sign, eliminating any single point of failure. Hardware Security Modules (HSMs): These certified physical devices securely generate, store, and manage cryptographic keys in a tamper-resistant environment. Geographic Distribution of Key Shares: Storing key fragments in separate, high-security data centers across different legal jurisdictions to mitigate localized risks. Comprehensive Insurance: Partnering with underwriters like Lloyd’s of London to provide crime insurance policies that cover digital asset theft from cold storage. By building this infrastructure internally, Citi aims to offer a custody solution that meets the stringent requirements of its existing institutional clients, who manage trillions in assets. This approach contrasts with some early bank offerings that relied heavily on white-labeling technology from third-party crypto firms. Market Impact and Future Trajectory The announcement has immediate and long-term implications for the cryptocurrency market. In the short term, it serves as a powerful signal of legitimacy, potentially influencing other major banks to accelerate their own digital asset plans. In the long term, a successful launch could catalyze a new wave of institutional investment. Market structure is likely to evolve. With trusted custody in place, the next logical steps for a bank like Citi could include: Prime brokerage services for digital assets (lending, borrowing, trading). Integration with traditional payment and settlement networks. Facilitation of collateralized lending using Bitcoin as collateral. Development of structured products like Bitcoin-linked notes or ETFs for their wealth management clients. This creates a flywheel effect: better custody leads to more institutional holders, which increases liquidity and reduces volatility, making the asset class more attractive to even more conservative institutions. The end goal, as Surendran indicated, is not just holding Bitcoin but enabling its full utility within the global financial system. Conclusion Citi’s plan to launch a Bitcoin custody service by year-end represents a decisive moment in the maturation of cryptocurrency markets. It moves the conversation from niche adoption to mainstream financial infrastructure. By addressing the critical custody needs of institutional investors through a familiar and trusted banking framework, Citi is building a essential bridge between the traditional financial world and the emerging digital asset ecosystem. The success of this Bitcoin custody initiative will be closely watched, as it has the potential to unlock significant institutional capital and set a new standard for how global banks interact with decentralized digital assets. FAQs Q1: What exactly is a Bitcoin custody service? A Bitcoin custody service is a specialized offering where a financial institution, like a bank, securely stores the private keys to a client’s Bitcoin on their behalf. This provides institutional investors with a secure, insured, and professionally managed solution, eliminating the need for them to handle the complex technical and security challenges of self-custody. Q2: Why is Citi’s announcement so significant for the crypto market? Citi is one of the world’s largest and most systemically important banks. Its entry into Bitcoin custody signals a high level of institutional validation and confidence. It provides a trusted, regulated pathway for massive pools of traditional institutional capital (like pension funds and mutual funds) to safely enter the Bitcoin market, which could dramatically increase liquidity and stability. Q3: How will Citi’s custody service differ from using a crypto exchange? Traditional crypto exchanges often combine trading, lending, and custody functions, which can create conflicts of interest and single points of failure. A dedicated institutional custody service from a bank like Citi will likely focus solely on secure storage, with assets held in segregated accounts, backed by robust insurance, and subject to strict regulatory oversight and auditing standards common in traditional finance. Q4: Does this mean Citi is recommending clients invest in Bitcoin? Not necessarily. Offering custody is a service function, distinct from providing investment advice or making a market call. Citi is providing the secure infrastructure to hold the asset, which is a response to client demand. The investment decision to buy or sell Bitcoin remains with the client and their advisors. Q5: What are the potential risks of using a bank for Bitcoin custody? The primary risks are similar to those in traditional finance: operational risk (e.g., internal system failures), counterparty risk (reliance on the bank’s solvency and management), and regulatory risk (changes in law that could affect the service). However, these are risks institutions are already accustomed to managing with their traditional assets, and they are often preferable to the technical risks of self-custody for large organizations. This post Bitcoin Custody Breakthrough: Citi’s Strategic Move to Bridge Crypto and Traditional Finance by Year-End first appeared on BitcoinWorld .

BitcoinWorld Proof of reserves breakthrough: World Liberty Financial unveils revolutionary real-time transparency for stablecoins In a landmark move for digital asset transparency, World Liberty Financial (WLFI) announced on November 26, 2024, that it will now provide real-time, on-chain proof of reserves for its USD1 stablecoin, directly confronting the persistent opacity that has long shadowed the cryptocurrency sector. World Liberty Financial tackles the stablecoin transparency crisis The stablecoin industry, a cornerstone of the crypto economy with a market capitalization exceeding $160 billion, faces a fundamental trust deficit. Most major issuers currently provide reserve attestations on a quarterly basis, a significant lag that leaves users in the dark about the actual backing of their assets for months at a time. World Liberty Financial itself previously offered monthly attestations, a step above industry norms. However, the company acknowledged that even this monthly process resulted in a one-month delay due to traditional accounting and auditing workflows. This gap between reality and reporting represents a critical vulnerability, eroding user confidence and exposing the market to potential systemic risk. Consequently, WLFI’s shift to a continuous verification model marks a pivotal evolution in financial accountability. The Chainlink Proof of Reserve mechanism explained World Liberty Financial has implemented Chainlink’s Proof of Reserve (PoR) mechanism to solve this transparency challenge. This decentralized oracle network acts as a secure bridge between off-chain data and on-chain smart contracts. The system works through a continuous, automated process. First, it fetches cryptographically signed reserve data directly from WLFI’s custodian, BitGo, a regulated trust company. Next, the Chainlink network independently verifies this data against real-world bank statements and custody records. Finally, the verified proof is recorded immutably on a public blockchain, creating a tamper-proof and publicly accessible audit trail. This process eliminates human reporting delays and manual errors, providing a live, verifiable snapshot of collateralization at any given moment. A technical leap with immediate market implications The implementation carries profound implications. For users, it means unprecedented assurance that every USD1 token in circulation is backed 1:1 by real-world assets, verified in real-time. For regulators, it offers a potential blueprint for compliant, automated oversight. Market analysts note that this move could pressure other stablecoin issuers to adopt similar transparency standards, potentially triggering an industry-wide shift. The technology also mitigates counterparty risk, as the on-chain proof is independent of the issuer’s own reporting. Historically, failures in the crypto space, from Mt. Gox to FTX, have stemmed from opaque reserve management. WLFI’s system directly addresses this legacy of mistrust by making solvency a continuously proven state, not a periodically attested claim. Comparing traditional attestations with on-chain proof The difference between old and new methods is stark. The table below illustrates the key distinctions: Feature Traditional Quarterly/Monthly Attestation WLFI’s Real-Time On-Chain PoR Update Frequency Every 90 or 30 days Continuous (near real-time) Data Lag 30+ days due to accounting Minutes or seconds Verification Method Manual audit by a third-party firm Automated by decentralized oracle network Accessibility PDF report published on website Public, on-chain data readable by anyone Transparency Level Point-in-time snapshot Live, ongoing stream This shift represents more than a technical upgrade; it redefines the social contract between stablecoin issuers and their users. Key benefits of the new system include: Instant Verification: Users and protocols can autonomously verify reserves at any time. Reduced Counterparty Risk: Continuous proof minimizes the window for misuse of funds. Regulatory Clarity: Provides a clear, auditable trail for compliance purposes. Market Confidence: Builds stronger trust, which is essential for mainstream adoption. The evolving landscape of financial accountability World Liberty Financial’s announcement arrives during a period of intense regulatory scrutiny for stablecoins globally. Jurisdictions like the European Union with its MiCA framework and the United States with proposed legislation are actively shaping rules that will mandate higher levels of transparency and reserve quality. By proactively adopting a system that exceeds current expectations, WLFI positions its USD1 stablecoin as a leader in regulatory readiness. Furthermore, this move aligns with a broader trend in decentralized finance (DeFi) towards verifiability and self-custody. Protocols that integrate USD1 can now programmatically check its reserve status before executing large transactions, adding a new layer of security to the DeFi ecosystem. This innovation could become a standard requirement for stablecoins used in sophisticated smart contract applications, influencing technological development across the sector. Expert perspective on the transparency imperative Financial technology experts have long argued that real-time auditing is the logical endpoint for digital assets. Dr. Elena Torres, a fintech researcher at the Cambridge Centre for Alternative Finance, stated in a recent paper, “The promise of blockchain is not just digitization, but the enablement of continuous, algorithmic trust. A stablecoin that only proves its reserves quarterly is not leveraging the core innovation of its underlying technology.” WLFI’s implementation directly answers this critique. It transforms reserve backing from a historical footnote into a live operational metric. This development also has implications for traditional finance, where settlement and verification often take days. The real-time proof-of-reserves model demonstrates a pathway for faster, more transparent asset verification in broader capital markets, potentially influencing future standards for securities and other digital instruments. Conclusion World Liberty Financial’s deployment of real-time, on-chain proof of reserves via Chainlink represents a significant advancement for the entire stablecoin industry. By replacing delayed attestations with continuous, automated verification, WLFI addresses a core vulnerability and sets a new benchmark for transparency. This move enhances user protection, provides a model for future regulation, and strengthens the foundational trust required for the sustainable growth of digital finance. The success of this initiative will likely pressure competitors to follow suit, accelerating an industry-wide shift towards greater accountability and verifiable solvency. FAQs Q1: What is proof of reserves, and why is it important for stablecoins? Proof of reserves is an audit process that verifies a financial institution holds sufficient assets to cover its liabilities. For a stablecoin, it proves the issuer holds enough cash or cash-equivalent reserves to back every token in circulation. This is crucial for maintaining trust, ensuring stability, and preventing insolvency events. Q2: How does Chainlink’s Proof of Reserve mechanism work? Chainlink’s PoR uses a decentralized oracle network to fetch cryptographically signed reserve data from custodians like BitGo. The network verifies this data against real-world sources and then posts the proof on a blockchain. This creates a tamper-proof, publicly accessible record that updates in near real-time, eliminating manual delays. Q3: How does real-time verification differ from traditional audits? Traditional audits provide a point-in-time snapshot, often with a lag of 30-90 days due to manual accounting. Real-time verification is continuous and automated, offering a live view of reserves. This drastically reduces the risk window and allows for constant public scrutiny. Q4: Does this mean USD1 is now 100% risk-free? While real-time proof of reserves massively reduces counterparty and solvency risk, it does not eliminate all risks. Factors like the quality and liquidity of the underlying reserve assets (e.g., cash, treasury bills), regulatory changes, and smart contract security remain important considerations for users. Q5: Will other stablecoin issuers like Tether and Circle adopt similar technology? Industry analysts believe WLFI’s move increases competitive pressure for transparency. While major issuers may upgrade their reporting practices, the speed of adoption will depend on cost, technical integration, and evolving regulatory requirements. This development likely signals the beginning of a broader industry trend towards more frequent, automated reserve reporting. This post Proof of reserves breakthrough: World Liberty Financial unveils revolutionary real-time transparency for stablecoins first appeared on BitcoinWorld .