HK crypto ETFs on fire, Binance warns on Maverick FOMO, Poly hack: Asia Express

US Securities and Exchange Commission (SEC) Commissioner and vocal crypto critic Caroline Crenshaw has accused the US regulator of downplaying risks and misrepresenting the US stablecoin market in its newly published guidelines.However, many in the crypto industry see the SEC’s decision as a step in the right direction.In an April 4 statement, Crenshaw, who is widely known for opposing the spot Bitcoin ETFs, said that the SEC’s statement on stablecoins contained “legal and factual errors that paint a distorted picture of the USD-stablecoin market that drastically understates its risks.”Crenshaw disagrees, crypto industry applaudsUnder the new SEC guidelines, stablecoins that meet certain criteria are now considered “non-securities” and are exempt from transaction reporting requirements. Crenshaw disputed the accuracy of the analysis made by the SEC in arriving at that decision. She pushed back on the SEC for reiterating issuer actions “that supposedly stabilize price, ensure redeemability, and otherwise reduce risk.”Source: David SacksThe SEC said that “albeit briefly, that some USD-stablecoins are available to retail purchasers only through an intermediary and not directly from the issuer.”Crenshaw argued this was misleading. She said:”It is the general rule, not the exception, that these coins are available to the retail public only through intermediaries who sell them on the secondary market, such as crypto trading platforms.””Over 90% of USD-stablecoins in circulation are distributed in this way,” Crenshaw added.Meanwhile, many in the crypto industry expressed optimism over the decision.Token Metrics founder Ian Ballina said it “feels like a clear step in focusing on what really matters in the crypto space.” Crypto industry says positive step, just lateVemanti CEO Tan Tran said he wished the SEC reached this point three years ago, while Midnight Network’s head of partnerships Ian Kane said it “feels like progress for crypto folks trying to play by the rules.”Crenshaw said it is “also grossly inaccurate” for the SEC to reassure users that an issuer can handle unlimited redemptions just because its reserves match or exceed the value of the supply.Related: Stablecoins’ in bull market’; Solana sputters: VanEck”The issuer’s overall financial health and solvency cannot be judged by the value of its reserve, which tells us nothing about its liabilities, risk from proprietary financial activities, and so forth,” Crenshaw said.She explained that stablecoins always carry some risk, particularly during market downturns.It comes only weeks after stablecoin issuer Tether was reportedly engaging with a Big Four accounting firm to audit its assets reserve and verify that its USDT stablecoin is backed at a 1:1 ratio.On March 22, Cointelegraph reported that Tether CEO Paolo Ardoino said the audit process would be more straightforward under pro-crypto US President Donald Trump.Magazine: XRP win leaves Ripple a ‘bad actor’ with no crypto legal precedent set

Under new SEC guidelines, stablecoins that meet certain criteria are considered ”non-securities” and are exempt from transaction reporting requirements, the United States Securities and Exchange Commission said in a notice published April 4. “Covered stablecoins,” as the SEC classifies them, are fully backed by physical fiat reserves or short-term, low-risk, highly liquid instruments and are redeemable at a 1:1 ratio with US dollars.The definition precludes algorithmic stablecoins that maintain their US dollar peg using software or an automated trading strategy, leaving the regulatory status of algorithmic stablecoins, synthetic dollars, and yield-bearing fiat tokens uncertain.Current stablecoin market overview. Source: RWA.XYZIndustry leaders and executives are pushing for regulatory changes that would allow stablecoin issuers to share yield opportunities with stablecoin holders and offer onchain interest.According to the new guidelines, covered stablecoin issuers cannot co-mingle asset reserves with operational capital or offer token holders interest, profit, or yield opportunities. Additionally, the covered stablecoin issuers must never use their reserves for investing or market speculation.Related: Stablecoin supply surges $30B in Q1 as investors hedge against volatilitySEC’s definition of “covered stablecoin” consistent with broader US policy objectivesThe SEC’s criteria for covered stablecoins are consistent with regulations stipulated in the GENIUS stablecoin bill, introduced by Senator Bill Hagerty, and the Stable Act of 2025, introduced by Representative French Hill.The proposed legislation aims to protect the status of the US dollar as the global reserve currency through stablecoins that are backed by US dollars and government securities.The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) of 2025 Act. Source: US SenateCentralized stablecoin issuers back their tokens with US dollar deposits held in regulated financial institutions and short-term US Treasury Bills, driving demand for US dollars and US government debt.Tether, the world’s largest stablecoin issuer, is now the seventh-largest holder of US Treasuries, beating out countries like Canada, Germany, and South Korea.Speaking at the first White House Digital Asset Summit on March 7, US Treasury Secretary Scott Bessent said the US would use stablecoins to extend US dollar dominance.Bessent said that regulating stablecoins was central to the administration’s digital asset strategy and a top regulatory priority during the current legislative session.Magazine: Bitcoin payments are being undermined by centralized stablecoins

Brazilian judges have been authorized to seize cryptocurrency assets from debtors who owe money and are behind on their payments, signaling a growing recognition that digital assets can be both a form of payment and a store of value.According to local media reports, the Third Panel of Brazil’s Superior Court of Justice unanimously authorized judges to send letters to cryptocurrency brokers informing them about their intent to seize an account holder’s assets to repay creditors.The report was confirmed by the Superior Court of Justice, which issued a notice on its website.The decision was reached unanimously by the Third Panel, which reviewed a case brought forward by a creditor.“Although they are not legal tender, crypto assets can be used as a form of payment and as a store of value,” a translated version of the Superior Court of Justice’s memo read.Source: STJnoticiasUnder existing rules, Brazilian judges are allowed to freeze bank accounts and order fund withdrawals, even without a debtor’s knowledge, should they rule that a creditor is owed money.Following the recent decision, crypto assets now fall under the same purview. Minister Ricardo Villas Bôas Cueva, who voted in the five-person panel, said cryptocurrencies still lack formal regulation in Brazil but noted certain bills have recognized the asset class as “a digital representation of value.” Related: Brazil’s data watchdog upholds ban on World crypto paymentsDespite regulatory uncertainty, Brazil is a major hub for cryptoAlthough Brazil still lacks an overarching framework for digital assets, with the country’s central bank divvying up the regulatory processes into phases, crypto adoption is surging across the country.Brazil ranks second among all Latin American countries in terms of “crypto value received,” which is a key benchmark for adoption, according to an October report by Chainalysis. In Latin America, only Argentina has higher crypto penetration in terms of value received as of June 2024. Source: ChainalysisEarlier this year, crypto exchange Binance was granted approval to operate in the country after it acquired a São Paulo-based investment company. A Binance executive told Cointelegraph at the time that Brazil was making “significant strides” in regulating the industry and expects a comprehensive framework to be finalized “by mid-year.”Nevertheless, not all of Brazil’s regulatory proposals have been favorable for the industry.In December, the country’s central bank proposed banning stablecoin transactions on self-custodial wallets at a time when more locals were using dollar-pegged tokens to hedge against the devaluation of the Brazilian real.Industry observers told Cointelegraph at the time that such a ban would be difficult to enforce.“Governments can regulate centralized exchanges, but P2P transactions and decentralized platforms are much harder to control, which means the ban would likely only affect part of the ecosystem,” said Lucien Bourdon, an analyst with Trezor. Related: Brazilian lawmaker introduces bill to regulate Bitcoin salaries