ChainCatcher news, according to a new report from CCData, the stablecoin industry will have to endure significant losses in interest income following the Federal Reserve's latest interest rate cut. The top five centralized stablecoin issuers collectively hold nearly $125 billion in U.S. Treasury securities, accounting for nearly 80.2% of their reserve funds. For every 50 basis points the Federal Reserve cuts rates, it will result in an annual loss of $625 million in interest income for dollar stablecoin issuers.Data shows that Tether holds nearly $93.2 billion in U.S. Treasury securities and repurchase agreements, which contributes significantly to its net profit of $5.2 billion in the first half of 2024. The second-largest stablecoin, USDC, holds $28.7 billion in U.S. Treasury securities through its Circle Reserve Fund, while FDUSD, PYUSD, and TUSD hold $1.83 billion, $634 million, and $502 million in U.S. Treasury securities, respectively.

According to ChainCatcher news, as monitored by ZachXBT, as of today, all four stablecoin issuers (Paxful, Tether, Techteryx, Circle) have blacklisted the following two addresses, which are held by the Lazarus Group with 4.96 million dollars. An additional 1.65 million dollars have been frozen across various exchanges, bringing the total amount frozen in this investigation to 6.98 million dollars.

ChainCatcher news, according to CoinDesk, the Swiss Financial Market Supervisory Authority (FINMA) stated in guidance released on Friday that stablecoin issuers operating in Switzerland pose risks to the banks they partner with.This is because these issuers accept deposits from the public and should be considered banks, but they avoid the requirement for a banking license by entering into agreements with registered lenders to repay customers in the event of default.FINMA stated in the guidance: "This poses risks to stablecoin holders and the banks providing default guarantees. If a stablecoin issuer engages in misconduct, the banks providing default guarantees may suffer reputational damage due to their contractual relationship with the issuer and may face legal risks."

ChainCatcher news, according to Hong Kong Wen Wei Po, the Deputy Secretary for Financial Services and the Treasury, Chen Haolian, stated at the Legislative Council's Web3 and Virtual Assets Development Subcommittee meeting that, in addition to the current regulatory system for virtual asset trading platforms, establishing a licensing system for fiat-backed stablecoin issuers will strengthen Hong Kong's virtual asset regulatory framework to align with international standards. The system will have a transition period, allowing issuers with meaningful and substantial issuance activities to continue operating during the "grace period" of 6 months after the system comes into effect, but they must submit their license applications within the first 3 months; otherwise, they must orderly cease operations by the end of the 4th month.

ChainCatcher news, according to the Hong Kong Economic Journal, the Hong Kong Financial Services and the Treasury Bureau stated that the SAR government needs to establish a regulatory framework for fiat-backed stablecoin issuers, regulating in a risk-based and pragmatic manner. The three main requirements include reserve management and stabilization mechanisms (for example, requiring issuers to ensure that fiat-backed stablecoins are fully backed by high-quality and highly liquid reserve assets), redemption requirements, and governance, knowledge, and experience regulatory requirements.The Hong Kong Financial Services and the Treasury Bureau also suggested that only licensed fiat-backed stablecoin issuers, banks, licensed corporations, and licensed virtual asset trading platforms may sell fiat-backed stablecoins in Hong Kong or actively promote related services to the public in Hong Kong.For existing stablecoin issuers, the proposed regulatory framework will also have corresponding transitional arrangements. Additionally, the Bureau expects that a regulatory framework for fiat-backed stablecoin issuers that is appropriate and in line with international regulatory recommendations can provide sufficient protection for users, addressing potential risks to monetary and financial stability, allowing the virtual asset ecosystem in Hong Kong to develop sustainably and responsibly.

ChainCatcher news, the Hong Kong Financial Services and the Treasury Bureau stated that following the implementation of the licensing system for virtual asset service providers in June last year, the Treasury Bureau and the Monetary Authority consulted the public at the end of last year regarding the proposed regulatory regime for Hong Kong stablecoin issuers, and will soon publish a consultation summary to prepare a bill for the Legislative Council's review.The Treasury Bureau pointed out that it hopes to establish a regulatory system for fiat-backed stablecoin issuers that is appropriate and in line with international regulatory recommendations, which can provide sufficient protection for fiat-backed stablecoin users and address the potential risks that fiat-backed stablecoins pose to monetary and financial stability, allowing Hong Kong's virtual asset ecosystem to develop sustainably and responsibly.Given the important role of fiat-backed stablecoins in the Web3 and virtual asset ecosystem, and the increasingly close connection between the traditional financial system and the virtual asset market, the government needs to establish a regulatory framework for fiat-backed stablecoin issuers. The main requirements include: reserve management and stabilization mechanisms, including requiring issuers to ensure that fiat-backed stablecoins are fully backed by high-quality and highly liquid reserve assets; redemption requirements; as well as governance, knowledge, and experience regulatory requirements.At the same time, to protect fiat-backed stablecoin users, it is recommended that only the following entities can sell fiat-backed stablecoins in Hong Kong or actively promote related services to the public in Hong Kong: licensed fiat-backed stablecoin issuers; recognized institutions (i.e., banks); licensed corporations; and licensed virtual asset trading platforms. For existing stablecoin issuers, the proposed regulatory system will also have corresponding transitional arrangements.

ChainCatcher news, Circle co-founder and CEO Jeremy Allaire posted on the X platform that Circle has announced its US dollar stablecoin USDC and euro stablecoin EURC have complied with the newly enacted EU stablecoin regulation MiCA, and will officially issue to European customers starting July 1. This marks Circle as the first global stablecoin issuer to comply with MiCA regulations.Circle stated that this move will promote the mainstream application of blockchain technology in payments, finance, and commerce, and bring safe and reliable electronic currency to the European market. Circle has chosen France as its European headquarters and is closely collaborating with regulators in France, the EU, and the US to ensure the interoperability and compliance of its stablecoins globally.Previous news, Circle CEO revealed a major announcement is coming soon.

ChainCatcher news, according to reports, Hong Kong virtual bank ZA Bank announced that it will be the first to provide exclusive banking services to stablecoin issuers, ensuring the security of their fiat currency reserves.According to ZA Bank, in 2023, the bank processed transfer transactions exceeding 1 billion USD for Web3 corporate clients, serving 80% of virtual asset trading platforms (VATP) in Hong Kong, and has provided services to over 100 well-known Web3 companies in various fields.

ChainCatcher news, according to reports, Hong Kong virtual bank ZA Bank (ZhongAn Bank) announced that it will be the first to provide exclusive banking services to stablecoin issuers, offering ultimate security for their fiat reserves.

ChainCatcher news, the Hong Kong Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) jointly published a public consultation document to gather opinions on legislative proposals regarding the regulation of fiat-backed stablecoin issuers. The document states that due to the important role of stablecoins in the Web3 and virtual asset ecosystem, as well as the increasingly close ties between the traditional financial system and the virtual asset market, the government believes there is a need to establish a regulatory framework for fiat-backed stablecoin issuers. As virtual assets become more prevalent, regulating fiat-backed stablecoin issuers in a risk-based and flexible manner can appropriately manage potential monetary and financial stability risks while providing transparency and suitable regulations.The legislative proposals have taken into account the market and public opinions collected by the HKMA in last year's "Discussion Paper on Crypto Assets and Stablecoins" (Note 1), ongoing discussions with stakeholders, local market conditions and needs, as well as relevant international standards. The key points are as follows:(1) Implementing a licensing system through the introduction of new legislation, requiring all eligible fiat-backed stablecoin issuers (Note 2) to obtain a license issued by the Financial Commissioner;(2) Stipulating that only designated licensed institutions (Note 3) can provide services for purchasing fiat-backed stablecoins, and only fiat-backed stablecoins issued by licensed issuers can be sold to retail investors;(3) Prohibiting promotion: (i) issuance of fiat-backed stablecoins by unlicensed issuers; or (ii) services for purchasing fiat-backed stablecoins provided by non-designated licensed institutions;(4) Granting authorities the necessary powers to adjust the scope of regulated stablecoins and activities in response to the rapid changes in the virtual asset market; and(5) Providing transitional arrangements to facilitate the smooth implementation of the regulatory framework.The HKMA will also launch a "sandbox" arrangement to communicate regulatory expectations and provide compliance guidance to issuers intending to issue fiat-backed stablecoins in Hong Kong, while collecting their feedback on the proposed regulatory requirements to facilitate the subsequent implementation of the regulatory framework and ensure that it meets regulatory objectives. Details related to the "sandbox" will be announced separately.

ChainCatcher news, stablecoin issuers should take immediate action to comply with the new EU cryptocurrency regulations that will come into effect in one year. The European Banking Authority stated in a statement on Wednesday that it expects stablecoin (tokens pegged to assets like the US dollar) issuers to have sound governance and effective risk management, as well as proper arrangements for handling redemptions and other matters.According to the EU's Markets in Crypto-Assets (MiCA) regulations, stablecoin operators must obtain a license from the national financial regulatory authority of at least one member state by June 2024.The EBA stated that preparing in advance to comply with the rules will help avoid "disruptive and abrupt business model adjustments that may occur later."

According to ChainCatcher, recent data shows that since the beginning of 2022, stablecoin issuers including Tether, Circle, and others have spent over $1 million lobbying lawmakers in Congress.According to public interest media ProPublica, Tether has spent approximately $600,000 since the beginning of 2022, with $120,000 spent each quarter lobbying the U.S. Senate and House of Representatives; Circle began its lobbying efforts in partnership with strategic consulting firm Invariant at the end of 2021 and has since spent at least $560,000, with the company's quarterly lobbying budget currently at $100,000; Paxos has spent about $300,000 on lobbying since the beginning of 2022. (Cointelegraph)

ChainCatcher news, according to Cointelegraph, at the May 18 hearing in the U.S. House of Representatives regarding stablecoins, the main focus was on two competing stablecoin bills, with state versus federal regulation being a key issue. The Republican bill would allow stablecoin issuers to choose the state in which they register without going through the Federal Reserve. The Democratic bill retains the opportunity for appropriate federal regulatory oversight. (source link)

ChainCatcher News, a new bill from the U.S. House Financial Services Committee proposes allowing non-bank stablecoin issuers to access central bank funds. According to the 73-page legislative draft, any bank or non-bank applicant must receive a decision within 90 days, or they will be automatically approved. The penalty for operating unlicensed stablecoins has been set at $100,000 per day.The proposed bill introduces new rules and regulations for payment stablecoin issuers in the United States. The legislation will explicitly grant non-bank stablecoin issuers full access to central bank deposit accounts and central bank borrowing. Even the Treasury Department acknowledges that central bank deposits have the potential to provide the safest asset backing, while other acceptable stablecoin backing assets include physical cash, short-term government bonds, and government bond-based repurchase agreements (repos). (Source link)

ChainCatcher news, Binance founder Zhao Changpeng stated in today's live event that he is discussing potential cooperation with multiple stablecoin issuers.