SEC Preps Overhaul of Crypto Custody Rules for Investment Firms
Regulation
“The Securities and Exchange Commission has sent a new proposal to the White House concerning rules for investment advisers holding digital assets for their clients. The item was sent to the White House’s Office of Management and Budget on Aug. 25, according to a post on its website. It’s the latest sign of financial regulators moving forward with the Trump administration’s crypto agenda while legislation to delineate crypto market structure regulation lingers in the Senate. The proposed rule would 'clarify the framework for the custody of crypto assets' for investment advisers and investment companies, according to the rule’s description on a federal list of forthcoming SEC rules. The proposal is in response to questions by investment companies and advisers about how to hold digital assets for their clients without running afoul of agency rules, the agency said.”
Source: Bloomberg
Coinbase, Better Make Token-backed Mortgages Generally Available
Tokenization
“Better Mortgage and Coinbase announced on Wednesday that their token-backed conforming mortgage is generally available to Coinbase One members, expanding a product that allows eligible borrowers to pledge crypto as collateral in the homeownership process. The expanded offer became available to Coinbase One members on Aug. 12, the companies said in a statement. The companies first announced the token-backed mortgage in March, with the first lien structured as a standard conforming mortgage under Fannie Mae guidelines, they said. According to the statement, Coinbase One members approved for eligible Better home-financing products are eligible for a lender credit equal to 1% of the mortgage value, capped at $10,000. The credit applies to standard mortgages, home equity lines of credit and refinances.”
Source: The Block
Government Tells BOE to Boost Innovation in Digital Currencies
Policy
“The UK government will give the Bank of England a new responsibility to bolster innovation in digital currencies and payments, amid criticism that the central bank has been too conservative in its approach to the emerging technologies. The Treasury said Wednesday that the goal would be secondary to the BoE’s primary mission of maintaining financial stability. Prime Minister Andy Burnham has put a priority on ensuring that London remains competitive in a rapidly evolving digital asset market. 'Whilst financial stability will always remain the bank’s primary objective, this secondary objective will support the bank to continue to drive innovation in payments and digital finance, ensuring that the UK remains a global leader in financial services,' said City Minister Lucy Rigby in an emailed statement.”
Source: Bloomberg
South Korea's Shinhan to Use Visa's Stablecoin Platform for 'Future Finance' Initiatives
Stablecoins
“South Korea's Shinhan Financial Group announced Wednesday that it has signed a strategic business agreement with Visa to collaborate on stablecoins, AI, and B2B payments for its 'future finance' business. Under the agreement, the two companies will prioritize building a stablecoin-based financial infrastructure. Shinhan plans to utilize Visa's stablecoin platform to verify issuance, remittance, and redemption, and jointly design a Korea-specific business model tailored to the domestic financial environment. The pair also plans to integrate stablecoins into joint pilot projects involving card payment settlements, the development of AI-based future payment models, and the expansion of B2B and B2C payment businesses.”
Source: The Block
BlackRock Cuts Bitcoin ETF Swap Minimum to $1 Million
ETPs
“BlackRock has made it a lot cheaper for bitcoin whales to swap self-custody for shares in its Nasdaq-listed spot BTC ETF, IBIT, a shift that’s accelerating due to crypto crime, according to a report by Bloomberg. The minimum value of bitcoin needed to swap directly into IBIT shares slipped to $1 million in July. It used to be $25 million, the report said, adding that ETF issuer Bitwise has also cut its threshold to $3 million from $100 million. The swapping works through a process called 'in-kind creation,' where investors hand over their BTC to the fund and get ETF shares back. This way they don’t need to sell their BTC and then buy ETF shares, which attracts capital gains tax.”
Source: CoinDesk
