Senator Warren urges Trump’s Treasury pick to consider stricter crypto regs  

As digital assets gain mainstream adoption, establishing a legal framework for stablecoins is a “good idea,” said US Federal Reserve Chair Jerome Powell.In an April 16 panel at the Economic Club of Chicago, Powell commented on the evolution of the cryptocurrency industry, which has delivered a consumer use case that “could have wide appeal” following a difficult “wave of failures and frauds,” he said.Powell delivers remarks at the Economic Club of Chicago. Source: Bloomberg TelevisionDuring crypto’s difficult years, which culminated in 2022 and 2023 with several high-profile business failures, the Fed “worked with Congress to try to get a […] legal framework for stablecoins, which would have been a nice place to start,” said Powell. “We were not successful.”“I think that the climate is changing and you’re moving into more mainstreaming of that whole sector, so Congress is again looking […] at a legal framework for stablecoins,” he said. “Depending on what’s in it, that’s a good idea. We need that. There isn’t one now,” said Powell.This isn’t the first time Powell acknowledged the need for stablecoin legislation. In June 2023, the Fed boss told the House Financial Services Committee that stablecoins were “a form of money” that requires “robust” federal oversight.Related: Stablecoins are the best way to ensure US dollar dominance — Web3 CEOSupport for stablecoin legislation is growingThe election of US President Donald Trump has ushered in a new era of pro-crypto appointments and policy shifts that could make America a digital asset superpower. Washington’s formal embrace of cryptocurrency began earlier this year when Trump established the President’s Council of Advisers on Digital Assets, with Bo Hines as the executive director. Hines told a digital asset summit in New York last month that a comprehensive stablecoin bill was a top priority for the current administration. After the Senate Banking Committee passed the GENIUS Act, a final stablecoin bill could arrive at the president’s desk “in the next two months,” said Hines.Bo Hines (right) speaks of “imminent” stablecoin legislation at the Digital Asset Summit on March 18. Source: CointelegraphStablecoins pegged to the US dollar are by far the most popular tokens used for remittances and cryptocurrency trading. The combined value of all stablecoins is currently $227 billion, according to RWA.xyz. The dollar-pegged USDC (USDC) and USDt (USDT) account for more than 88% of the total market. Magazine: Unstablecoins: Depegging, bank runs and other risks loom

An appellate court has granted a joint request from Ripple Labs and the Securities and Exchange Commission (SEC) to pause an appeal in a 2020 SEC case against Ripple amid settlement negotiations.In an April 16 filing in the US Court of Appeals for the Second Circuit, the court approved a joint SEC-Ripple motion to hold the appeal in abeyance — temporarily pausing the case — for 60 days. As part of the order, the SEC is expected to file a status report by June 15.April 16 order approving a motion to hold an appeal in abeyance. Source: PACERThe SEC’s case against Ripple and its executives, filed in December 2020, was expected to begin winding down after Ripple CEO Brad Garlinghouse announced on March 19 that the commission would be dropping its appeal against the blockchain firm. A federal court found Ripple liable for $125 million in an August ruling, resulting in both the SEC and blockchain firm filing an appeal and cross-appeal, respectively.However, once US President Donald Trump took office and leadership of the SEC moved from former chair Gary Gensler to acting chair Mark Uyeda, the commission began dropping multiple enforcement cases against crypto firms in a seeming political shift. Ripple pledged $5 million in XRP to Trump’s inauguration fund, and Garlinghouse and chief legal officer Stuart Alderoty attended events supporting the US president.Related: SEC dropping Ripple case is ‘final exclamation mark’ that XRP is not a security — John DeatonDespite support for the end of the case coming from both Ripple and the SEC, the August 2024 judgment and appellate cases leave some legal entanglements. Alderoty said in March that Ripple would drop its cross-appeal with the SEC and receive a roughly $75 million refund from the lower court judgment. It’s unclear what else may result from negotiations over a settlement in appellate court.New leadership at SEC incomingActing chair Uyeda is expected to step down following the US Senate confirming Paul Atkins as SEC chair on April 9. During his confirmation hearings, lawmakers questioned Atkins about his ties to crypto, which could create conflicts of interest in his role regulating the industry. In financial disclosures, Atkins stated he had millions of dollars in assets through stakes in crypto firms, including Securitize, Pontoro and Patomak. Magazine: SEC’s U-turn on crypto leaves key questions unanswered

Crypto market maker DWF Labs announced a $25 million investment in World Liberty Financial, the decentralized finance (DeFi) project backed by US President Donald Trump and his sons, as the company expands into the United States with an office in New York City. On April 16, Dubai-based DWF Labs said it had purchased World Liberty Financial (WLFI) tokens through a private transaction.The firm said the transaction reflects its intent to participate in WLFI’s governance. As tokenholders, DWF Labs will be able to vote on decisions that impact the ecosystem.WLFI launched on Sept. 16, 2024, to promote DeFi and US dollar-pegged stablecoins. During the launch, Trump said the family was “embracing the future with crypto and leaving the slow and outdated big banks behind.”DWF Labs to provide liquidity for USD1 stablecoinAlongside the WLFI investment, DWF Labs said the collaboration includes providing liquidity for the project’s stablecoin, World Liberty Financial USD (USD1). On March 24, the DeFi project launched USD1 on BNB Chain and Ethereum. However, the project clarified that the stablecoin was not yet tradable. DWF Labs is a market maker that provides liquidity for over 60 exchanges around the globe. A market maker allows traders to execute their trades by providing liquidity. They make or take orders from traders, allowing smooth trading operations. The investment coincides with DWF’s expansion into the US. The market maker said it had established an office in New York City as part of its global expansion plans. The company expects the expansion to improve its institutional partnerships with banks, asset managers and fintech companies. It also aims to strengthen its engagement with US regulators. Related: DWF Labs launches $250M fund for mainstream crypto adoptionWLFI has raised over $600 million since its launchSince its launch in September, World Liberty Financial has already raised over $600 million for its DeFi protocol. The company raised $300 million during its first token sale by selling 20 billion WLFI tokens. The company sold another 5 billion tokens at $0.05 each, meeting its price target of an extra $250 million on March 14. This puts the overall WLFI public token sales earnings at $550 million. On Nov. 25, Tron Founder Justin Sun purchased 2 billion WLFI tokens for $30 million. Investment platform Web3Port also announced a $10 million WLFI investment, while venture capital firm Oddiyana Ventures announced a strategic investment without disclosing the amount. Magazine: What do crypto market makers actually do? Liquidity, or manipulation