The cryptocurrency landscape continues to evolve rapidly, shaped by regulatory changes, institutional adoption, and market dynamics. Here’s a roundup of the latest developments influencing the digital asset space.
Major Regulatory and Institutional Moves
U.S. Housing Agencies Explore Crypto in Mortgage Risk Assessment
The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to develop frameworks for including cryptocurrencies in mortgage risk assessment. Borrowers may soon be allowed to count crypto holdings—stored on U.S.-regulated centralized exchanges—as assets without liquidating them first. This initiative, still in early stages, could redefine traditional lending criteria, though assets on non-compliant exchanges remain excluded.
EU Advances Stablecoin Rules Despite ECB Warnings
The European Commission is set to introduce new regulations for stablecoins, disregarding warnings from the European Central Bank (ECB) about potential risks to banking stability. The rules will permit interchangeability between EU-approved stablecoins and those issued abroad, filling a regulatory gap. ECB President Christine Lagarde had cautioned about stablecoins’ impact on monetary policy, but the Commission emphasizes manageable risks and recommends national regulators implement safeguards.
Stablecoin Trading Volume Surpasses Bitcoin and Ethereum
USD-denominated stablecoins have seen average daily trading volumes exceeding $1000 billion in June, outpacing Bitcoin and Ethereum. With Tether and Circle holding U.S. Treasuries as ~80% of reserves, stablecoins now represent an additional $200 billion in demand for U.S. debt. Standard Chartered predicts the stablecoin market could reach $2 trillion by 2028, potentially making issuers the second-largest buyers of U.S. Treasuries after the Federal Reserve.
Industry Adoption and Strategic Shifts
Coinbase Supports 200+ Financial Institutions with Crypto Integration
Coinbase CEO Brian Armstrong announced that the platform is providing cryptocurrency integration services to nearly 200 banks, brokers, fintech firms, and payment providers. This initiative aims to help traditional financial entities incorporate digital assets into their offerings.
GameStop Raises $450 Million, Potentially for Bitcoin Acquisitions
GameStop has raised an additional $450 million through convertible notes, bringing its total June fundraising to $2.7 billion. SEC filings indicate proceeds may fund operational needs and investments, including further Bitcoin purchases. The company has already acquired 4,710 BTC worth approximately $500 million since March as part of its treasury strategy.
Binance’s Bitcoin Inflows Hit Multi-Year Low
Binance’s monthly Bitcoin inflows have dropped to 5,700 BTC, less than half the average since 2020 and just 25% of the influx during the FTX crisis. Analysts suggest this decline indicates a "holding phase," where investors prefer keeping assets off exchanges, reducing immediate sell pressure.
SEC Commissioner Hints at Physical Redemption for Crypto ETFs
SEC Commissioner Hester Peirce noted that physical redemption mechanisms for cryptocurrency ETFs are under review. Several firms, including BlackRock, have applied to allow in-kind creations and redemptions, which could enhance ETF efficiency and appeal.
Republic to Tokenize Shares of SpaceX and OpenAI
Investment platform Republic plans to tokenize shares of private companies like SpaceX and OpenAI, enabling broader retail access. Using blockchain-based tokens, investors can participate with as little as $50, significantly lowering entry barriers. Token holders may eventually trade these assets on licensed platforms like INX.
BitGo Custody Assets Surpass $100 Billion
Crypto custodian BitGo has seen its assets under custody jump from $60 billion to $100 billion in the first half of the year, driven by rising adoption and regulatory clarity. Half of these assets are related to staking services, and the firm is considering an IPO later this year.
BlackRock Executive Highlights Bitcoin’s Global Nature
A BlackRock executive described Bitcoin as a "global, scarce, non-sovereign, decentralized asset," underscoring its unique value proposition independent of any single nation.
Kraken Secures MiCA License in Ireland
Kraken has obtained a MiCA license from the Central Bank of Ireland, allowing it to offer compliant crypto services across 30 EU countries. This milestone follows earlier approvals and supports the exchange’s European expansion plans.
HashKey Exchange Dominates Hong Kong Market
HashKey Exchange, Hong Kong’s largest licensed virtual asset platform, now serves over 30 licensed brokers—covering 90% of the market—via its Omnibus account service. Trading volume has surged nearly 5x in six months, reaching HKD 30 billion. The platform is also partnering with banks and payment firms to drive further innovation.
Bit Digital Shifts to Pure Ethereum Staking
Listed company Bit Digital (BTBT) is transitioning from Bitcoin mining to Ethereum staking and treasury management. It plans to convert its 417.6 BTC holdings into ETH and raise capital to expand its ETH portfolio. The firm already operates one of the largest institutional Ethereum staking infrastructures.
Barclaycard Bans Crypto Purchases via Credit Cards
Starting June 27, Barclaycard will prohibit cryptocurrency transactions using its credit cards, citing volatility risks and lack of consumer protection under financial compensation schemes.
Frequently Asked Questions
What does FHFA’s directive mean for crypto holders?
If implemented, borrowers could use crypto held on regulated exchanges as assets for mortgage applications without selling them, potentially expanding credit access.
Why is the EU proceeding with stablecoin rules despite ECB concerns?
The Commission believes risks are manageable and aims to create legal clarity, allowing interoperable stablecoin use while empowering national regulators to enforce safeguards.
How do stablecoins impact traditional finance?
Stablecoins drive demand for U.S. Treasuries and facilitate high-volume trading, bridging crypto and traditional markets. 👉 Explore real-time market tools
What are physical redemptions in crypto ETFs?
Physical redemptions allow authorized participants to exchange ETF shares for actual Bitcoin (or vice versa), improving tax efficiency and tracking accuracy compared to cash-only models.
Why are Bitcoin inflows to exchanges declining?
Lower inflows suggest long-term holding sentiment, reducing immediate sell pressure and potentially supporting price stability.
How does tokenization of private stocks work?
Platforms like Republic purchase shares and issue blockchain tokens representing ownership, enabling fractional investment and secondary market trading.
These developments highlight the ongoing integration of cryptocurrencies into mainstream finance, driven by regulatory progress, institutional interest, and technological innovation. 👉 Get advanced investment strategies