September 15, 2025 | 17:18Senior US and Chinese officials engaged in nearly six hours of high-stakes diplomatic talks in Madrid, addressing critical economic and security issues including TikTok’s impending US operations deadline, ongoing trade tensions, and broader bilateral relations. The meeting, led by Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, also aimed to lay groundwork for a potential summit between Presidents Donald Trump and Xi Jinping, reflecting intensifying diplomacy between the world’s two largest economies amid persistent technology and trade disputes.
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US House Bill Pushes Treasury to Study Strategic Bitcoin Reserve
The U.S. House Appropriations Committee has advanced a bill requiring the Treasury Department to conduct a comprehensive study on establishing a Strategic Bitcoin Reserve and digital asset stockpile. Sponsored by Representative David Joyce (R-OH), the legislation gives Treasury 90 days to report on practical feasibility, legal authority, custody architecture, cybersecurity protocols, and interagency coordination for government-held digital assets. Legal experts note that this initiative would force Treasury to address the same operational challenges faced by institutional custodians, potentially setting federal benchmarks for custody standards, key management practices, and accounting treatment of Bitcoin. The provisions build upon former President Trump’s executive order that conceptually created the reserve, now seeking to formalize it into law with detailed implementation guidelines. The bill’s progress depends on broader federal spending negotiations.
read moreTreasury’s Stablecoin Push Could Redirect $34T to DeFi
Treasury Secretary Scott Bessent’s support for dollar-pegged stablecoins could channel up to $34 trillion from the Eurodollar system and Global South deposits into DeFi protocols. The strategy addresses two key issues: the Treasury’s inability to track Eurodollar flows and the need for price-insensitive buyers of government debt. Stablecoin issuers must invest deposits in Treasury bills to maintain dollar parity, creating guaranteed demand for short-term government securities. Protocols like Ethena, Ether.fi, and Hyperliquid are positioned to benefit significantly, with projections suggesting stablecoin circulation could reach $10 trillion by 2028. The plan also involves leveraging social media platforms like WhatsApp for distribution and using dollar dominance to force compliance through mechanisms like threatening exclusion from Fed swap lines.
read moreU.S. Sanctions North Korean IT Crypto Theft Ring
The U.S. Treasury Department announced sanctions against a transnational network involving North Korean, Russian, and Chinese entities for orchestrating cryptocurrency theft schemes through IT worker infiltration. North Korean operatives posed as remote workers to gain access to foreign companies, stealing crypto that was subsequently converted to U.S. dollars and funneled to support the regime’s nuclear and ballistic missile programs. The operation highlights Pyongyang’s sophisticated global IT fraud capabilities, which have raised hundreds of millions over several years. The sanctions target individuals including a Russian national who aided currency conversion and a China-based front company. This action continues efforts against North Korean crypto theft, though the current administration has shown a different approach to targeting coin mixing services compared to its predecessor.
read moreBanks Warn of $6.6T Deposit Flight Risk from Stablecoin Loopholes
Banking associations, including the American Bankers Association and the Bank Policy Institute, are demanding Congress address loopholes in the GENIUS Act that permit stablecoin interest payments through third parties. They warn this could trigger a $6.6 trillion deposit exodus from traditional banks, disrupting lending and raising borrowing costs. Despite concerns, crypto firms like Paxos and Circle are leveraging the Act to pursue national banking charters. Experts argue the immediate risk to banks is low, but clearer regulatory guidance is needed to prevent market instability. The banking coalition also seeks to block non-financial firms from issuing stablecoins and repeal provisions allowing state-chartered issuers to operate nationwide without oversight.
read moreUSDe Hits $10B TVL in 500 Days, Fastest Stablecoin Growth
USDe, a stablecoin by Ethena Labs, has set a record by hitting $10 billion in TVL within 500 days, outpacing all competitors. This surge aligns with the GENIUS Act, a U.S. regulatory framework prohibiting yield payments on stablecoins, pushing capital toward DeFi-native solutions. USDe’s success stems from its ability to offer yield through decentralized mechanisms, attracting both institutional and retail investors. The ENA governance token has also surged over 100% in a month, reflecting the market’s shift. The GENIUS Act, while imposing strict rules, has inadvertently fueled DeFi innovation, with USDe emerging as a major beneficiary.
read moreFinCEN Alerts on Rising Crypto ATM Fraud Targeting Elderly
The Financial Crimes Enforcement Network (FinCEN) has flagged a sharp rise in crypto ATM fraud, with losses hitting $247 million in 2024—a 31% increase. Elderly victims, particularly those over 60, account for over two-thirds of losses, often tricked by tech support scammers into converting cash into irreversible crypto transactions. FinCEN reveals widespread non-compliance among kiosk operators, many of whom avoid registration as money service businesses (MSBs) and fail to implement anti-money laundering (AML) controls. Criminals exploit these machines for anonymity, charging fees up to 25% and using ‘chain-hopping’ to obscure transactions. Global regulators are cracking down, with New Zealand banning crypto ATMs and Australia capping transactions at $5,000. The DEA notes cartels like CJNG are using kiosks for cross-border money laundering, with Chicago emerging as a hotspot. FinCEN advises financial institutions to watch for suspicious activity, such as elderly clients making large, unexplained crypto transactions.
read moreWhite House Crypto Report Omits Bitcoin Reserve Plans
The White House’s forthcoming crypto report, mandated by a January executive order, will not address the creation of a federal Bitcoin reserve or digital asset stockpile, despite President Trump’s earlier directives. A senior administration official confirmed the report focuses on establishing a regulatory framework for the crypto industry, leaving the Bitcoin reserve discussion for future updates. The Treasury Department is reportedly working on the infrastructure for such a reserve, but no timeline for further details was provided. The report, involving multiple federal agencies, follows two executive orders that initially tasked the administration with evaluating and potentially establishing a national crypto stockpile.
read moreWhite House Proposes Crypto Tax Reporting for Foreign Accounts
The White House has proposed that Congress enact legislation mandating U.S. taxpayers to report foreign digital asset accounts, a move aimed at preventing tax evasion and ensuring a level playing field for domestic crypto exchanges. The recommendation is part of a comprehensive 168-page report from the President’s Working Group on Digital Asset Markets, which also covers crypto banking, stablecoins, and illicit finance. The report suggests implementing a Crypto-Asset Reporting Framework (CARF) to keep crypto activity within the U.S. and clarifies that DeFi transactions should not face new reporting requirements. Additionally, the report calls for clearer pathways for crypto banks to access traditional banking services and evaluates potential updates to the Bank Secrecy Act for the crypto industry. The Trump administration hailed the report as a significant step forward for U.S. crypto policy.
read moreBitcoin Dips as White House Releases Crypto Policy Report
Bitcoin’s price dropped after the White House unveiled a 166-page crypto policy report titled ‘Strengthening American Leadership in Digital Financial Technology.’ The report did not disclose the US government’s Bitcoin holdings or indicate future BTC purchases. Meanwhile, the Federal Reserve kept interest rates unchanged, with Chair Jerome Powell monitoring potential inflation impacts from tariffs. The report proposes congressional action to protect crypto self-custody, ban CBDCs, and clarify CFTC oversight of digital assets. It also urges tax reforms for staking, wrapping transactions, and stablecoin development. Bitcoin fell from $118,742 to $115,521 post-release, trading at $116,558 at publication time.
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