Tag Archives: deal

Stablecoin Yield Ban Deal Clears Path for Landmark Crypto Law in April

Stablecoin Yield Ban Deal Clears Path for Landmark Crypto Law in April

The recent bipartisan agreement on stablecoin yields marks a pivotal moment for United States crypto regulation, and it demands careful scrutiny from those who understand both the technical realities of decentralized finance and the political pressures shaping this legislation. Senators Thom Tillis and Angela Alsobrooks have reached an agreement in principle with the White House to restrict yield on passive stablecoin balances, a compromise that resolves a major standoff between traditional banks and crypto innovators. This development removes a critical roadblock to the CLARITY Act, potentially enabling a committee markup in the second half of April, with a target window of April 14 to 20 for Senate Banking action.

The core of this compromise centers on how stablecoin rewards can be paid, specifically targeting yield paid on idle balances. Reports indicate the deal would bar rewards on passive stablecoin balances, addressing banks’ fears that high on-chain yields could drain deposits, while possibly still allowing activity-based rewards on certain products. Senator Alsobrooks framed the agreement as protecting innovation while preventing widespread deposit flight, while Senator Tillis stressed that industry still needs to vet the language before it becomes locked in. This distinction between passive and active yields matters tremendously for how users interact with digital assets. A person who holds stablecoins simply to preserve value faces different constraints than someone actively participating in liquidity provision or governance. The technical challenge lies in defining these categories without creating arbitrary boundaries that stifle legitimate innovation or push activity offshore. Having examined similar regulatory frameworks globally, I recognize that the devil truly resides in these implementation details.

This yield dispute represented one of the primary reasons the Digital Asset Market Clarity Act remained stalled in the Senate Banking Committee, despite versions advancing through other legislative channels. With this compromise in place, Senate Banking leaders now prepare for an April markup and potential mid April vote, giving the CLARITY Act its first real path forward in months. If the bill progresses, it can move to the Senate floor and be reconciled with earlier work, potentially delivering the first broad United States market structure law for crypto on top of the 2025 GENIUS Act stablecoin framework. This timeline creates both opportunity and pressure. Legislative windows can close quickly, and the details finalized in committee often determine a bill’s ultimate impact more than its broad intentions. For those watching institutional adoption trends, this sequence matters because regulatory clarity often precedes significant capital allocation decisions.

The CLARITY Act aims to spell out federal jurisdiction, giving the SEC and CFTC defined roles and establishing rules for trading platforms, custody, tokens and stablecoins. Limiting yield on passive stablecoin balances would likely constrain United States based park and earn stablecoin products, while still giving room for more regulated, bank compatible designs if they tie rewards to activity. This tradeoff reflects a fundamental tension in crypto regulation. Users seeking yield on idle assets represent a significant portion of retail participation, and restricting these options could reduce domestic engagement with digital assets. At the same time, traditional financial institutions require certain guardrails before committing substantial resources to this emerging sector. The challenge involves creating a framework that protects consumers without eliminating the very features that make decentralized finance attractive. Having analyzed market liquidity patterns and derivatives volume as indicators of sentiment, I observe that regulatory uncertainty often suppresses participation more than any specific rule might.

Other open issues, including DeFi treatment and ethics rules on officials holding crypto, could significantly affect how permissive or restrictive the final regime becomes for on chain finance and institutional participation. The definition of passive balances remains particularly crucial because it determines which activities fall under restriction. Does providing liquidity in a decentralized pool count as passive or active? What about staking tokens to secure a network? These questions cannot be answered through political compromise alone. They require technical expertise and a genuine understanding of how blockchain systems function. Having served in government advisory roles related to blockchain technology, I recognize the difficulty of translating technical concepts into legislative language. Getting this translation wrong risks creating rules that either fail to address real risks or inadvertently harm legitimate innovation.

This compromise represents progress but not a finished solution. This is mentioned in my previous article too. The United States stands at a crossroads where it can either lead in shaping a thoughtful regulatory environment for digital assets or cede that leadership to jurisdictions with more flexible approaches. The CLARITY Act’s potential to define federal rules for exchanges, custody and stablecoins offers a foundation for broader institutional comfort with digital assets. The tradeoff of tighter limits on easy stablecoin yield in exchange for regulatory certainty requires careful evaluation. For users who value financial sovereignty, the distinction between passive and active yields may feel arbitrary when the underlying technology treats all transactions with equal transparency. The risk involves creating a system that favors incumbent financial structures over emerging decentralized alternatives, potentially slowing the very innovation that could enhance financial inclusion and resilience.

Watch for the published committee draft, the exact wording on passive balances, and DeFi language, because those details will decide whether this framework becomes mainly a compliance burden or a foundation for larger, safer crypto adoption in the United States. The April markup window provides a critical opportunity for industry stakeholders to engage with lawmakers on these technical nuances. Having followed the evolution of crypto regulation across multiple jurisdictions, I observe that the most effective frameworks emerge from ongoing dialogue between policymakers and technologists. The stablecoin yield compromise removes a significant obstacle, but the journey toward comprehensive crypto market law requires continued attention to how rules affect real world usage patterns. For those building the next generation of financial infrastructure, the stakes extend beyond immediate compliance to the long term viability of decentralized systems within a regulated environment.

The political dynamics surrounding this legislation reflect broader tensions about the future of money and financial power. A bipartisan deal that addresses bank concerns while preserving some room for crypto innovation demonstrates the possibility of constructive compromise. The ultimate test will be whether the resulting framework enables the United States to harness the benefits of blockchain technology while managing its risks. The flow from compromise to committee markup to potential floor vote creates a sequence where each step offers opportunities for refinement or regression.

No matter what happens, I will still believe in the decentralized future, the next evolution of the internet.

 
 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Crypto crashes 3.7 per cent despite US shutdown deal: US$260M liquidations and whale exodus trigger sell-off

Crypto crashes 3.7 per cent despite US shutdown deal: US$260M liquidations and whale exodus trigger sell-off

The past 24 hours have exposed the fragility beneath recent crypto market gains, delivering a sobering reminder that sentiment can shift abruptly even amid macroeconomic progress. At first glance, the backdrop appears favourable. The US Senate passed a government funding bill on Monday evening, November 10, that would extend operations through January, marking a decisive step toward ending what has become the longest government shutdown in American history.

With a 60 to 40 vote, the chamber cleared the path for the measure to advance to the Republican-controlled House, where Speaker Mike Johnson signalled readiness to pass it swiftly and forward it to President Donald Trump for signature. This legislative breakthrough should, in theory, stabilise risk sentiment and restore confidence in the continuity of US fiscal governance.

The market’s reaction has been conspicuously muted, even negative. While US equities closed mixed on Tuesday, with the Dow surging 1.18 per cent, the S&P 500 edging up just 0.21 per cent, and the Nasdaq slipping 0.25 per cent, the crypto market tumbled by 3.67 per cent over the same 24-hour window. This divergence underscores a growing decoupling between legacy risk assets and digital ones, at least in the short term.

The Nasdaq 100, a traditional proxy for tech-driven risk appetite, now shows a sharply negative 24-hour correlation with crypto at negative 0.77. This marks the most pronounced short-term divergence in months, suggesting that crypto traders are acting on distinct catalysts absent in broader equity markets.

Three interlocking forces drove this sell-off: a cascade of leveraged liquidations, coordinated whale exits in Ethereum, and macro-level caution despite apparent political resolution. The first, and perhaps most mechanically significant, was the unwinding of excessive leverage in futures markets. Over US$260 million in crypto positions were liquidated in just one day, with longs accounting for 84 per cent of Bitcoin and 90 per cent of Ethereum losses.

This follows a 10 per cent weekly increase in open interest, indicating that speculators had aggressively positioned for further upside. When prices dipped, even modestly, margin calls triggered a feedback loop of forced selling, amplifying the initial decline into a full-blown washout.

Compounding this technical pressure was a strategic retreat by institutional and whale participants in the Ethereum ecosystem. Data confirms that two large holders offloaded 178,080 ETH, valued at approximately US$528 million, in what appears to be a coordinated profit-taking manoeuvre. This move coincided with the worst weekly outflow period for Ethereum spot ETFs since their launch. US$796 million fled the nine US-listed funds over the prior week, with every single ETF posting net redemptions.

Such synchronised outflows suggest more than just retail sentiment fatigue. They reflect a loss of institutional conviction at current valuations. With Ethereum’s RSI hovering near 38, a level often deemed oversold, the asset lacks organic buying pressure to absorb such large-scale exits, leaving technical support at US$3,360 as the next critical threshold.

Meanwhile, the macroeconomic data released this week offers a mixed signal. On one hand, the ADP National Employment Report published on November 5 showed that private employers added 42,000 jobs in October, the first monthly gain since July. Annual pay growth held steady at 4.5 per cent, signalling persistent wage pressures. However, a separate weekly ADP metric covering the four weeks ending October 25 paints a bleaker picture.

Private-sector employers shed an average of 11,250 jobs per week during that window. This internal contradiction, monthly gains versus deteriorating weekly trends, fuels uncertainty about labour market resilience heading into year-end. With the Federal Reserve still data-dependent, such ambiguity keeps rate-cut expectations tentative, despite gold rising to US$4,118.58 per ounce on hopes of easing monetary policy.

The US Dollar Index edged down 0.13 per cent to 99.46, while Brent crude rose 1.72 per cent to US$65.16 per barrel, reflecting cautious optimism about global demand. Crypto failed to participate in this risk-on drift. Instead, it exhibited classic risk-off behaviour, not because of direct Fed commentary or CPI surprises, but due to internal market structure vulnerabilities, namely, too much leverage and too little institutional anchoring.

From a strategic standpoint, this correction may be healthy. The 2.99 per cent weekly gain preceding the drop had stretched technical indicators and elevated funding rates into unsustainable territory. The liquidation event serves as a necessary recalibration, clearing weak hands and resetting leverage ratios.

The simultaneous ETF outflows and whale selling in Ethereum suggest deeper concerns about the token’s near-term utility or valuation relative to Bitcoin. While Bitcoin continues to benefit from its digital gold narrative and ETF inflows, Ethereum faces scrutiny over scaling progress, staking yields, and its role in a potential Web4 stack that increasingly integrates AI and decentralised finance in novel ways.

Looking ahead, all eyes turn to two pivotal levels. Bitcoin’s psychological and technical floor sits at US$60,000, and Ethereum’s support rests at US$3,360. A break below either could trigger further algorithmic selling and sentiment deterioration.

Conversely, suppose the government funding bill passes the House and is signed into law, currently estimated at a 96 per cent probability by November 15. In that case, it may restore enough macro calm to reignite risk appetite. Crypto’s fate will ultimately depend less on political theatre and more on whether organic demand can replace speculative leverage and institutional outflows. Until then, volatility remains the only certainty.

 

Source: https://e27.co/crypto-crashes-3-7-per-cent-despite-us-shutdown-deal-us260m-liquidations-and-whale-exodus-trigger-sell-off-20251112/

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

US-Japan deal, EU talks, and Japan’s Bitcoin bet: A new chapter for global finance

US-Japan deal, EU talks, and Japan’s Bitcoin bet: A new chapter for global finance

The global economy is buzzing with some pretty exciting developments. I will explore what’s happening with the US-Japan trade agreement, the whispers of a US-EU deal, the possibility of a Bank of Japan rate hike, and even a Japanese company’s bold leap into Bitcoin.

I’ll break it all down for you in a way that’s easy to follow, and throw in some of my thoughts.

The US-Japan trade deal: Easing tensions, boosting confidence

First up, let’s talk about the US-Japan trade deal that’s been making headlines. This agreement is a big deal, literally and figuratively. The US has agreed to slash its planned tariffs on Japanese goods from a steep 25 per cent down to a more reasonable 15 per cent, and that includes autos, which are a massive part of Japan’s export economy.

Imagine you’re a Japanese automaker – Toyota, Honda, Nissan, take your pick. This news is like a breath of fresh air. Lower tariffs mean your cars can roll into the US market more competitively, potentially boosting sales and giving your bottom line a nice lift.

For the US, this deal isn’t just about letting more Japanese cars in. It’s likely tied to some reciprocal benefits, like Japan agreeing to buy more American goods or invest in US projects. Think of it as a two-way street: Japan gets better market access, and the US might see more jobs or economic activity as a result. What I love about this is how it shows that diplomacy can still work in a world that’s often felt like a trade-war standoff. After years of tariff threats and uncertainty, this feels like a step toward stability.

Now, here’s where it gets really interesting. The easing of these trade tensions has markets buzzing about what the Bank of Japan might do next. For ages, Japan’s central bank has kept interest rates at rock bottom – we’re talking zero or near-zero levels – to jumpstart its economy.

But with trade pressures easing, there’s talk of a possible rate hike in 2025. That’s a huge shift! A rate hike would signal that Japan’s economy is finally finding its footing, which could strengthen the yen. On the flip side, it might make life trickier for Japanese exporters if their goods get pricier abroad. It’s a bold move if it happens, and I’m rooting for Japan to pull it off without rocking the boat too much.

US-EU tariff talks: Could this be round two?

While the US-Japan deal is grabbing the spotlight, there’s another story brewing across the Atlantic. Reports are swirling that the US might be closing in on a similar 15 per cent tariff agreement with the European Union. Picture this as a sequel to the Japan deal – same vibe, different players.

If it goes through, it’d mean lower tariffs on European goods coming into the US, possibly paired with European investment flowing back the other way. The Euro Stoxx 50, a key European stock index, jumped 1.0 per cent on the news, indicating that investors are already getting excited about the possibilities.

If the US can strike deals with both Japan and the EU, it’s like hitting the trifecta of trade diplomacy. Less tension with major partners could mean smoother sailing for global trade, which has been choppy lately. I think this could be a game-changer, not just for the economies involved but for the whole world.

Fewer trade barriers often lead to more growth, and who doesn’t want that? The catch is, we’re still waiting to see if this deal sticks – the August 1 deadline for reciprocal tariffs is looming, so the clock’s ticking.

Markets are loving it: A global rally unfolds

Okay, let’s check in on how the markets are reacting, because they’re not sitting still. In the US, stocks surged after the trade news broke. The S&P 500 climbed 0.78 per cent to a record 6,309.62, the Dow Jones surged 1.14 per cent, and even the tech-heavy NASDAQ edged up 0.61 per cent to 20,892.69, despite a slight dip later. That’s a solid rally, showing investors are feeling good about where things are headed.

It’s not just a US party, though. Over in Asia, the MSCI Asia ex Japan index shot up 1.4 per cent, and the HSCEI, which tracks Chinese stocks in Hong Kong, hit its highest close since October 2021. That’s a big deal – it’s like the optimism is contagious, spreading across borders and lifting spirits everywhere. I see this as a sign that when big economies play nice, everyone benefits. Today’s early trading in Asia was a bit mixed, and US futures hint at a choppy open, but the overall vibe is… Pretty upbeat.

Then there’s the bond market. US Treasury yields ticked up, with the 10-year yield rising five basis points to 4.38 per cent and the two-year yield hitting 3.88 per cent. Higher yields typically indicate that investors expect stronger growth or perhaps a bit more inflation in the future.

To me, this ties back to the trade deals – less uncertainty could mean a healthier economy, and that’s pushing yields up as people ditch safe bets for riskier plays. The US Dollar Index dipped 0.18 per cent, and gold slid 1.3 per cent, which backs that up. When safe-haven demand softens, it’s a clue that folks are feeling bolder.

Crypto’s wild ride: Greed, gains, and a breather

Now, let’s switch gears to the crypto market, because it’s been a wild ride over there too. Bitcoin and altcoins, such as Ethereum and XRP, have been on a tear lately, racking up massive gains over the past few weeks. It’s the kind of run that gets crypto fans hyped – and honestly, I get it.

Something is thrilling about watching digital assets soar. But today, the charts are showing a sea of red candles for most of the top 100 coins by market cap. After testing some significant resistance levels, it appears that the bulls are taking a breather.

Don’t let that fool you into thinking the party’s over, though. The Fear & Greed Index, which measures crypto sentiment, is sitting at 70 – firmly in greed territory and the highest since July 12. That suggests to me that this pullback might simply be profit-taking after an explosive stretch, rather than a full-on reversal.

I’ve seen this before in crypto: big runs often hit a pause before the next leg up. So, while the traditional markets are riding trade-deal optimism, crypto’s doing its own thing – cooling off but still brimming with bullish energy.

Kitabo’s Bitcoin bet: A Japanese twist

Speaking of crypto, here’s a curveball from Japan that caught my eye. Kitabo Co., Ltd, a company that makes synthetic fiber spun yarns and trades on the Tokyo Stock Exchange, just announced it’s jumping into Bitcoin.

They’re planning to buy ¥800 million – that’s about US$5.4 million – worth of BTC using dollar-cost averaging, where you spread out purchases over time to smooth out price swings. This isn’t just a random punt; Kitabo’s been bleeding cash, losing ¥115.6 million (US$785,000) in fiscal 2024, and they’re hoping Bitcoin can help turn things around.

I find this fascinating. Kitabo’s joining a growing club of Asian companies using Bitcoin as a treasury asset – think of it as a hedge against a weakening yen or a way to diversify when traditional options aren’t cutting it. They’re even calling this their full-scale entry into crypto and real-world asset businesses, which sounds ambitious for a yarn maker!

My take is that it’s a smart, if gutsy, move. Dollar-cost averaging reduces the risk of buying at a peak, and if Bitcoin continues to climb, it could be a lifeline for a struggling firm. Additionally, it’s another indication that crypto’s going mainstream, even in unexpected areas.

What do you think? Excited for what’s next? I know I am!

 

Source: https://e27.co/us-japan-deal-eu-talks-and-japans-bitcoin-bet-a-new-chapter-for-global-finance-20250724/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j