FDIC moves to eradicate 'reputational risk' category from bank exams  

Lawmakers in the US Senate Banking Committee questioned prospective Securities and Exchange Commission (SEC) member Paul Atkins on his ties to the crypto industry and how he might regulate digital assets if confirmed.Questioning Atkins at his nomination hearing on March 27, Massachusetts Senator Elizabeth Warren said the former SEC commissioner had had “staggeringly bad judgment” in his role leading up to the 2008 financial crisis — Atkins served at the agency from 2002 to 2008. Sen. Warren also asked Atkins to disclose the buyers of his consulting firm Patomak Global Partners — which advised crypto exchange FTX before its collapse in 2022 — for transparency about potential conflicts of interest with the digital asset industry.“Your clients pay you north of $1,200 an hour for advice on how to influence regulators like the SEC, and if you’re confirmed, you will be in a prime spot to deliver for all those clients who’ve been paying you millions of dollars for years,” said Sen. Warren, suggesting Atkins’ judgment “will be influenced by more than an objective assessment of the data.”Paul Atkins addressing lawmakers at March 27 nomination hearing. Source: US Senate Banking CommitteeThe Massachusetts senator sent a letter to Donald Trump’s SEC pick on March 23, calling on him to be prepared to answer questions related to his potential role at the agency based on his ties to the crypto industry through Patomak. At the March 27 hearing, Sen. Warren asked Atkins to disclose the consulting firm’s potential buyers — he said he planned to sell the company if confirmed — who might be “buying access to the future chair of the SEC.” Atkins said he would “abide by the process” but did not directly answer Sen. Warren’s question. She suggested that the sale of Patomak could be a “pre-bribe” for the former SEC commissioner’s services.This is a developing story, and further information will be added as it becomes available.

Officials with the Federal Bureau of Prisons have moved former FTX CEO Sam “SBF” Bankman-Fried to a transit facility days after right-wing political commentator Tucker Carlson interviewed him.As of March 27, the Federal Bureau of Prisons website showed Bankman-Fried was being housed at the Federal Transfer Center (FTC) in Oklahoma City, suggesting that he may be moved from the facility where he largely spent the majority of his time awaiting trial and moving forward with an appeal of his conviction. Carlson remotely interviewed SBF from the Metropolitan Detention Center (MDC) in Brooklyn on March 5 — a reportedly unsanctioned event that resulted in the former FTX CEO being sent to solitary confinement. Former FTX CEO’s status as of March 27. Source: US Bureau of PrisonsThe reason for the move to the Oklahoma transit facility was unclear. After Bankman-Fried’s 2023 conviction on seven felony charges and 2024 sentencing to 25 years in prison, a federal judge recommended that the former CEO remain in the New York area to assist during his appeals process. He was briefly transferred to FTC Oklahoma City in May 2024 before being returned to MDC Brooklyn.Bankman-Fried has been housed in various facilities since a judge revoked his bail in August 2023 following allegations the former CEO attempted to intimidate witnesses before his criminal trial. According to the Federal Bureau of Prisons, he was set to be released in November 2044 but could serve less time based on his behavior in prison.This is a developing story, and further information will be added as it becomes available.

Paolo Ardoino, CEO of stablecoin issuer Tether, said the industry has just entered a new era, marked by an influx of stablecoin solutions from both private companies and governments.In a March 27 X thread, Ardoino said the crypto industry just entered the “stablecoin multiverse” era, where multiple stablecoins are launching to meet growing global demand.Source: Paolo AdroinoRelated: Rumble wallet rolls out with Tether’s USDT for creator paymentsNot everyone agrees with the assessmentHowever, Slava Demchuk, CEO of crypto compliance firm AMLBot, told Cointelegraph that he disagrees “with the premise that there are hundreds of stablecoins launched by companies and governments.” He said the claims are an exaggeration and highlighted that “launching a stablecoin is a complex and resource-intensive process,” made even more involved by the European Union’s Markets in Crypto-Assets Regulation (MiCA) framework:“MiCA, for instance, imposes stringent requirements — particularly prudential ones such as capital reserves, liquidity buffers, and robust governance structures — that not all companies can easily meet. “On the other hand, Demchuk noted that a growth in the number of stablecoins poses challenges and risks. He pointed out that regulatory differences across jurisdictions are an issue with MiCA providing clarity in the EU while the US market is still in debate, leading to a global “patchwork of rules.”He warned that such inconsistency risks pushing companies to less regulated markets. The consequence of such an exodus would be that consumer protection efforts would be undermined.Related: Tether seeks Big Four firm for its first full financial audit — ReportArdoino expects fast growthIn a subsequent X post, Ardoino claimed Tether currently counts 400 million users worldwide, adding that he expects that number to reach one billion soon. He attributes the quick growth to an approach different from that of players in traditional finance:“We always focused on the adoption from the ground up, working in the streets, among other people, while traditional finance was watching at us from their ivory towers.“Vasily Vidmanov, the chief operating officer of decentralized finance compliance protocol PureFi, told Cointelegraph that Ardoino’s forecast “is interesting but not entirely realistic.” He cited “the recent delisting of USDT in the EU,” noting that it “has shown that resisting regulation is futile — adaptation and new approaches to decentralization are necessary.“The comments reference Tether’s USDt (USDT) being delisted for European Economic Area-based users of Binance, Crypto.com, Kraken and Coinbase. A Tether spokesperson told Cointelegraph that the firm found the actions disappointing.Vidmanov explained that data concerning swaps between USDT and Circle’s competing USDC (USDC) “indicates a noticeable increase following the delisting.” He also raised concerns over the firm’s reputation and “ongoing investigations in the US related to sanctions compliance and Anti-Money Laundering.”USDT/USDC swaps number. Source: DuneUS authorities are reportedly investigating third-party use of Tether’s stablecoins for criminal activities.Ardoino already commented on those claims when they surfaced in late October 2024, calling the story “old noise.” Still, according to Vidmanov, with all those challenges, “achieving the projected figures within the next one to two years seems unlikely unless there are significant shifts in global policy and a substantial influx of new users from underpenetrated crypto markets.”Tether and Paolo Ardoino had not responded to Cointelegraph’s inquiry by publication time.Magazine: Stablecoin for cyber-scammers launches, Sony L2 drama: Asia Express