CFPB likely to step back from crypto regulation —attorney  

Kyrgyzstan President Sadyr Zhaparov has signed a constitutional law authorizing the launch of a central bank digital currency pilot project while also giving the “digital som” — the national currency in digital form — legal tender status.The law gives the National Bank of the Kyrgyz Republic the exclusive right to issue the digital som, establish the rules for its issuance and circulation, and oversee the platform on which the national currency will operate, Kyrgyzstan’s presidential office said on April 17.However, a final decision on whether to officially issue the CBDC is not expected until the end of 2026, local outlet Trend News Agency reported in December.If the central bank decides to adopt the digital som, it would also need to outline cryptographic protection measures to ensure the digital som remains secure and isn’t used for fraudulent transactions.Testing of the digital som platform is expected to take place sometime this year.Zhaparov’s sign-off comes nearly a month after Kyrgyzstan’s parliament, the Jogorku Kenesh, approved the amendment to Kyrgyzstan’s constitutional law on March 18.CBDCs continue to be heavily criticized by some members of the crypto community, flagging concerns that they could undermine financial privacy and enable excessive government oversight, among other things.While 115 nations have initiated CBDC projects, only four CBDCs have officially launched — the Bahamas Sand Dollar, Nigeria’s e-Naira, Zimbabwe’s ZiG and Jamaica’s JAM-DEX, data from cbdctracker.org shows.Over 90 CBDC projects are yet to move past the research stage.Kyrgyzstan continues to make moves in cryptoEarlier this month, former Binance CEO Changpeng “CZ” Zhao said he would begin advising Kyrgyzstan on blockchain and crypto-related regulation after signing a memorandum of understanding with the country’s foreign investment agency.Zhaparov said the initiative would assist with the growth of the economy and the security of virtual assets, “generating new opportunities for businesses and society as a whole.”Source: Sadyr ZhaparovRelated: Bitcoin price levels to watch as Fed rate cut hopes fadeThe mountainous, land-locked country is considered well-suited for crypto mining operations due to its abundant renewable energy resources, much of which is underutilized.Over 30% of Kyrgyzstan’s total energy supply comes from hydroelectric power plants, but only 10% of the country’s potential hydropower has been tapped, according to a report by the International Energy Agency.Magazine: Your AI ‘digital twin’ can take meetings and comfort your loved ones

Prime brokerage Hidden Road, which was recently acquired by Ripple for $1.25 billion, has secured a broker-dealer license from the Financial Industry Regulatory Authority (FINRA) — a move that enhances its capacity in the fixed-income markets. As a FINRA broker-dealer, Hidden Road can further develop its fixed-income prime brokerage services and extend its capabilities in traditional markets, the company announced on April 17. This includes offering institutional clients regulatory-compliant clearing and financing services across fixed-income securities. Membership in FINRA is considered a significant commitment to compliance and investor protection. It also boosts registrants’ credibility in the eyes of investment bankers, according to Telos Capital Advisors, a Dallas-based investment bank.  Hidden Road operates a prime brokerage and credit network, clearing more than $10 billion in daily transactions on behalf of more than 300 institutional clients. When it was founded in 2018, Hidden Road focused mainly on foreign exchange markets before expanding into digital assets.These strengths positioned Hidden Road as an attractive acquisition for blockchain payments network Ripple, which ultimately purchased the company on April 8.Ripple’s chief technology officer, David Schwartz, described the acquisition as a “defining moment for the XRP Ledger” by expanding the settlement layer’s use cases across traditional financial markets. Under Ripple, Hidden Road will “exponentially expand its capacity to service its pipeline and become the largest non-bank prime broker globally,” said CEO Brad Garlinghouse. Garlinghouse comments on the Hidden Road acquisition on April 8. Source: Brad GarlinghouseRelated: US to get its first XRP-based ETF, launching on NYSE ArcaPositive regulatory backdrop supports Ripple expansionRipple’s acquisition of Hidden Road comes on the heels of a favorable regulatory backdrop in the United States following the election of President Donald Trump. In January, Ripple secured money transmitter licenses in both Texas and New York, allowing the company to facilitate capital transfers within those states. Two months later, the Securities and Exchange Commission (SEC) dropped its lawsuit against Ripple, ending one of crypto’s longest legal battles and positioning the company to once again focus on expansion. At the time, crypto lawyer John Deaton said the decision is the “final exclamation point that [XRP tokens] are considered digital commodities, not securities.”The SEC is about to get a pro-crypto Chair after Paul Atkins’ nomination was approved by the US Senate on April 9. Once he’s sworn in, Atkins will take the reins from Mark Yueda, who has served as Acting Chair since Jan. 20.Related: Court grants 60-day pause of SEC, Ripple appeals case

US President Donald Trump renewed his criticism of Federal Reserve Chair Jerome Powell, accusing him of being too slow to cut interest rates and escalating a long-running conflict that risks undermining the central bank’s political independence.With the European Central Bank (ECB) cutting interest rates again on April 17, “Too Late” Powell has failed to act appropriately in the United States, even with inflation falling, Trump said on Truth Social on April 17. “Powell’s termination cannot come fast enough!” Trump said.Source: realDonaldTrumpFlorida Senator Rick Scott agreed with the president, saying, “it’s time for new leadership at the Federal Reserve.”Trump’s public criticism of the Fed breaks a decades-long convention in American politics that sought to safeguard the central bank from political scrutiny, which includes any executive decision to replace the chair. In an April 16 address at the Economic Club of Chicago, Powell said Fed independence is “a matter of law.” Powell previously signaled his intent to serve out the remainder of his tenure, which expires in May 2026. Related: S&P 500 briefly sees ‘Bitcoin-level’ volatility amid Trump tariff warCrypto, risk assets look to the Fed for guidanceThe Federal Reserve wields significant influence over financial markets, with its monetary policy decisions affecting US dollar liquidity and shaping investor sentiment.Since the COVID-19 pandemic, crypto markets have increasingly come under the Fed’s sphere of influence due to the rising correlation between dollar liquidity and asset prices. This was further corroborated by a 2024 academic paper written by Kingston University of London professors Jinsha Zhao and J Miao, which concluded that liquidity conditions now account for more than 65% of Bitcoin’s (BTC) price movements.As inflation moderates and market turmoil intensifies amid the trade war, Fed officials are facing mounting pressure to cut interest rates. However, Powell has reiterated the central bank’s wait-and-see approach as officials evaluate the potential impact of tariffs. A measure of real-time inflation known as “truflation” suggests that cost pressures are much weaker than the Fed’s primary indicators, which are several months out of date. Source: TruflationThe Fed is expected to maintain its wait-and-see policy approach at its next meeting in May, with Fed Fund futures prices implying a less than 10% chance of a rate cut. However, rate cut bets have increased to more than 65% for the Fed’s June policy meeting. Related: Weaker yuan is ‘bullish for BTC’ as Chinese capital flocks to crypto — Bybit CEO