🚨 New SEC Rules to Impact Stablecoin Liquidity
The SEC is implementing new rules requiring US Treasury transactions to pass through central clearinghouses. This shift directly impacts stablecoin issuers like Tether and Circle, who hold billions in Treasury securities to back their tokens.
The rules aim to reduce market risk by making a clearinghouse the middleman for every trade. If a trading partner fails, the clearinghouse ensures the transaction is completed. This adds a layer of safety but changes the cost and mechanics of borrowing cash against these assets.
Stablecoin companies rely on "repos" (repurchase agreements) to quickly turn their Treasury holdings into USD when customers want to redeem tokens. The SEC deadlines are Dec. 31 for outright sales and June 30, 2027, for repos.
#Stablecoins #SEC #CryptoRegulation #Treasury
The SEC is implementing new rules requiring US Treasury transactions to pass through central clearinghouses. This shift directly impacts stablecoin issuers like Tether and Circle, who hold billions in Treasury securities to back their tokens.
The rules aim to reduce market risk by making a clearinghouse the middleman for every trade. If a trading partner fails, the clearinghouse ensures the transaction is completed. This adds a layer of safety but changes the cost and mechanics of borrowing cash against these assets.
Stablecoin companies rely on "repos" (repurchase agreements) to quickly turn their Treasury holdings into USD when customers want to redeem tokens. The SEC deadlines are Dec. 31 for outright sales and June 30, 2027, for repos.
#Stablecoins #SEC #CryptoRegulation #Treasury
🚨 Trump Administration Withdraws Controversial Unhosted Wallet Rule
The US Treasury has formally withdrawn a 2020 proposal that would have required crypto exchanges to collect extensive personal data on users interacting with private, self-custody wallets.
Originally introduced in the final weeks of the first Trump administration, the rule sought to mandate reporting for transactions exceeding $10,000 and strict recordkeeping, including names and physical addresses, for transfers over $3,000.
The proposal faced massive industry backlash. Critics argued it undermined the core privacy of blockchain technology and created impossible compliance hurdles by requiring exchanges to verify identities of people who were not their customers.
#CryptoNews #Privacy #Treasury #Regulation
The US Treasury has formally withdrawn a 2020 proposal that would have required crypto exchanges to collect extensive personal data on users interacting with private, self-custody wallets.
Originally introduced in the final weeks of the first Trump administration, the rule sought to mandate reporting for transactions exceeding $10,000 and strict recordkeeping, including names and physical addresses, for transfers over $3,000.
The proposal faced massive industry backlash. Critics argued it undermined the core privacy of blockchain technology and created impossible compliance hurdles by requiring exchanges to verify identities of people who were not their customers.
#CryptoNews #Privacy #Treasury #Regulation