While Bowman did not specify limits on holdings, she indicated that "de minimis" investments could enhance staff insight, recruitment, and retention of expert examiners. Her remarks reflect a more supportive regulatory tone under the Trump administration toward cryptocurrency, in contrast to earlier skepticism. She criticized bank regulators’ historically cautious mindset, warning that resistance to innovation could sideline traditional banks.
Bowman acknowledged potential risks but urged regulators to also consider the substantial benefits of emerging technologies. She advocated for proactive engagement and developing a strong framework to integrate crypto into the financial system safely and efficiently.
In related developments, Tether, the largest issuer of stablecoins, has appointed Bo Hines, the former head of President Donald Trump’s crypto advisory council, as its strategic adviser for digital assets and U.S. strategy. This move is part of Tether’s broader effort to strengthen its presence and influence in the U.S. market. Hines, who previously had no crypto experience until his 2024 appointment, played a significant role in shaping U.S. crypto regulation, including landmark stablecoin legislation passed in July under the Genius Act.
The Genius Act requires stablecoins to be fully backed by assets like U.S. Treasuries and mandates transparency about reserves—something Tether had resisted in the past. Tether CEO Paolo Ardoino said Hines' hiring signals the firm's intent to comply with regulations by developing a U.S.-compliant stablecoin. Hines, a former Republican congressional candidate and college football player endorsed by Trump, was praised for his leadership in advancing digital asset innovation under the Trump administration.
Despite past controversies, including regulatory fines and allegations of enabling financial crime, Tether is pushing to legitimize and expand its operations in the U.S. The appointment of Hines is seen as a strategic move to align with the current regulatory environment and to bolster Tether's credibility in the U.S. market.
In other news, a coalition of finance industry bodies is urging the Basel Committee on Banking Supervision to reconsider its upcoming crypto asset standards for banks, set to take effect in January 2026. The finance groups argue that the crypto market has evolved since the introduction of these rules in 2022, becoming more integrated with mainstream finance, and label the standards as overly conservative and economically unviable for banks.
The groups, including the Global Financial Markets Association, the Institute of International Finance, and the International Swaps and Derivatives Association, have called for a temporary halt to the implementation process and suggest reevaluating the standards with updated data. This appeal comes amid a more favorable U.S. regulatory stance under President Donald Trump, which has made it easier for banks to engage with crypto assets.
The Basel Committee lacks enforcement power, but member countries typically apply its standards to international banks operating in their jurisdictions. The push for revised regulation follows the 2022 collapse of key crypto firms, which exposed major shortcomings in the sector.
Additionally, China is reportedly considering the introduction of yuan-backed stablecoins as part of a broader strategy to enhance the global use of its currency, marking a notable policy shift in its stance on digital assets. The State Council is expected to review a roadmap that outlines internationalization goals for the yuan, along with regulatory responsibilities and risk management guidelines.
This move comes amid the dominance of U.S. dollar-backed stablecoins, which currently represent over 99% of the global supply, and reflects China's desire to challenge U.S. financial leadership. The plan, if approved, would represent a departure from China's previous cryptocurrency crackdowns in 2021.
Stablecoins, which are digital currencies pegged to fiat assets, offer low-cost, instant global transactions and are gaining popularity worldwide. China's approach includes implementation by the People’s Bank of China and prioritizes cities like Hong Kong and Shanghai for initial deployment.
The initiative coincides with geopolitical tensions with the U.S. and rising use of dollar-backed stablecoins by Chinese exporters. Further discussions are expected at the upcoming SCO Summit in Tianjin.
These developments highlight the rapidly evolving landscape of cryptocurrency and digital assets, with significant regulatory and strategic shifts occurring globally. Stakeholders across the financial sector are closely monitoring these changes to navigate the complexities and opportunities presented by the digital asset ecosystem.
