Fed Governor Notes Fading Crypto Euphoria; Chinese Exchanges Tighten Rules; Senators Query UAE Stake in WLFI

U.S. SEC Officially Reprices Stablecoin Risk, Boosting TradFi Integration

The U.S. SEC's recent policy change allows broker-dealers to treat certain dollar-pegged stablecoins as near-cash instruments. This change reduces capital requirements and encourages the integration of stablecoins into traditional finance, promoting efficiency and wider adoption in financial markets.

Federal Reserve officials criticize: Stablecoin advantages haven't surpassed existing systems; crypto applications are basically nonsense

The President of the Federal Reserve Bank of Minneapolis, Kashkari, strongly criticizes cryptocurrencies for lacking real value, questions the advantages of stablecoins, and defends the independence of central banks. He pointed out that compared to artificial intelligence, cryptocurrencies have failed to demonstrate their economic utility, and emphasized the need to maintain the independence of monetary policy, which is in opposition to the crypto policies of the Trump administration.

The U.S. SEC clarifies that broker-dealers holding stablecoins can count them as net capital at a 2% discount

ChainCatcher Message: Brokers generally apply a 100% discount to stablecoins, meaning that related holdings cannot be counted towards net capital, severely limiting institutional participation in stablecoin activities.

The probability that the Federal Reserve will keep interest rates unchanged in March is 95.9%

ChainCatcher message, according to Jin10 report, before the data release, based on CME "FedWatch," the probability of the Federal Reserve cutting interest rates by 25 basis points by March is 4.1%, and the probability of holding rates steady is 95.9%. By April, the probability of a total 25 basis point cut is 16.4%, and the probability of holding rates steady is 83%. The probability of a total 50 basis point cut is 0.5%. By June, the probability of a total 25 basis point cut is 44%.

Ray Dalio Warns CBDCs Could Erase Financial Privacy

Ray Dalio warns that central bank digital currencies (CBDCs) may compromise financial privacy, enable instant taxation, and impose capital controls, raising concerns about government oversight and civil liberties as numerous central banks pilot these systems.

FED Kashkari blasts: Cryptocurrencies are "useless," stablecoins are a "hodgepodge of buzzwords"

Federal Reserve Chair Neel Kashkari strongly questions the practicality of cryptocurrencies, believing they have yet to prove any value, and compares their potential to that of artificial intelligence. He criticizes stablecoins for not bringing substantial upgrades to the financial system and argues that their advantages mainly do not target American consumers, highlighting his skepticism towards cryptocurrencies and contrasting with the government's supportive stance.