Here are the latest events from the world of cryptocurrencies and foreign policy that impact the markets:
---
🇺🇸 The Federal Reserve ends special cryptocurrency oversight program
The Federal Reserve announced the conclusion of the "Novel Activities Supervision Program," which was launched in 2023 to monitor the activities of banks related to cryptocurrencies and financial technologies. This decision signifies a return to standard banking oversight, which may lead to greater integration of cryptocurrencies with the traditional financial system.
---
💰 U.S. Treasury Secretary explains plans for Bitcoin reserve
U.S. Treasury Secretary Scott Bessent announced that the government does not plan to purchase additional Bitcoin for its strategic reserve. Instead, it plans to accumulate this cryptocurrency through confiscations, treating it as a "digital Fort Knox." However, he later clarified that the Treasury Department is still exploring "budget-neutral" ways to purchase Bitcoin, suggesting the possibility of further purchases in the future.
---
🏦 Ripple and Paxos apply for national banking license
Ripple and Paxos have submitted applications for a national banking license in the U.S., which would allow them to operate under federal supervision. If approved, these companies would be able to offer services such as asset custody and payment processing, but would not be allowed to accept deposits or make loans like traditional banks. This move indicates the growing integration of cryptocurrencies with the traditional financial system.
---
These events indicate the increasing integration of cryptocurrencies with the traditional financial system and the changing approach of governments towards regulating this sector.
