Banks lobby US Treasury for blanket stablecoin yield ban, Coinbase pushes back

Ireland's central bank has imposed a hefty €21.5 million fine on Coinbase Europe due to inadequate monitoring of millions of transactions, some of which were linked to criminal activities. This significant penalty highlights the increasing scrutiny financial institutions face regarding compliance and transaction oversight, especially in the wake of rising concerns about financial crime. It serves as a reminder for companies in the fintech space to prioritize robust monitoring systems to avoid severe repercussions.

Japan's financial regulator, the FSA, has given its support to a collaborative effort among the country's leading banks and corporations to create yen-based stablecoins. This initiative, known as the 'Payment Innovation Project,' is significant as it aims to enhance the digital payment landscape in Japan, potentially making transactions more efficient and secure. By backing this project, the FSA is signaling its commitment to innovation in the financial sector, which could lead to greater adoption of digital currencies and improved financial services for consumers.

Elixir has decided to retire its stablecoin deUSD following a significant $93 million loss incurred by Stream, which had borrowed the token to stabilize its own currency. This move highlights the risks associated with decentralized finance and the volatility that can impact liquidity providers. The decision to pull deUSD reflects Elixir's commitment to maintaining financial integrity, but it also raises concerns about the future stability of similar projects in the crypto space.

OKX has made a significant move in Brazil by launching stablecoin payments and a Mastercard debit card, making it easier for users to transact with cryptocurrencies. This development is important as it enhances the accessibility of digital currencies in everyday transactions, potentially attracting more users to the crypto space and promoting financial inclusion in a rapidly evolving market.

Ripple's chief legal officer, Stuart Alderoty, has voiced support for a 'skinny' Federal Reserve payments account designed for non-banking entities. This innovative approach could alleviate traditional banks' concerns regarding financial stability and competition. By advocating for this tailored account, Ripple aims to enhance the financial ecosystem, making it more inclusive and efficient. This development is significant as it highlights the potential for blockchain technology to reshape banking practices and foster collaboration between traditional and digital finance.

The Irish Central Bank has imposed a hefty fine of $24.8 million on Coinbase Europe due to significant failures in anti-money laundering (AML) practices. This action highlights the increasing scrutiny that cryptocurrency exchanges face regarding compliance with financial regulations. It serves as a reminder for the industry about the importance of adhering to AML standards to maintain trust and legitimacy in the financial ecosystem.

The Central Bank of Ireland has imposed a hefty fine of $24.75 million on Coinbase for failing to meet anti-money laundering and counter-terrorist financing obligations from 2021 to 2025. This significant penalty highlights the increasing scrutiny on cryptocurrency exchanges and their compliance with financial regulations. It serves as a reminder for the industry to prioritize robust monitoring systems to prevent illicit activities, especially as they expand into new markets like Latin America.

Coinbase has made a significant appeal to the US Treasury, advocating for stablecoins to be classified as cash rather than debt. This distinction is crucial as it could influence regulatory frameworks and the future of digital currencies in the US. By pushing for this change, Coinbase aims to promote a more favorable environment for stablecoins, which are essential for the growth of the cryptocurrency market and could enhance financial stability.