Paxos Trust Company, the issuer behind PayPal's stablecoin PYUSD, has applied for a national trust bank charter from the U.S. Office of the Comptroller of the Currency . This move aims to enhance Paxos' ability to hold and manage assets and settle payments more efficiently, though it will not permit the company to take deposits or issue loans like traditional banks. Transitioning from a New York state-limited trust charter to a federal charter would provide Paxos with stronger regulatory oversight. This application marks Paxos' second attempt after its initial application stalled in 2023. Competitors such as Circle and Ripple have also recently applied for national trust charters, while Anchorage Digital remains the only crypto platform with such a charter. The trend follows the enactment of the GENIUS Act, signed by President Trump, reflecting the increasing mainstream integration of digital assets. Paxos had previously ceased issuing Binance USD after regulatory orders and settled with New York authorities for $48.5 million over compliance failures related to its former partner, Binance. The shift toward national charters aligns with growing regulatory clarity and the crypto industry’s significant lobbying efforts.
In a significant development, World Liberty Financial, a crypto venture backed by former President Donald Trump and his sons, has announced a $1.5 billion crypto treasury initiative in collaboration with Nasdaq-listed ALT5 Sigma Corporation, a Las Vegas-based blockchain company. The deal involves ALT5 selling $1.5 billion in shares, half of which will be paid in World Liberty’s cryptocurrency, $WLFI, while the rest of the funds will be used to buy more $WLFI, settle litigation, pay debts, and fund other activities. The company aims to bridge traditional finance with digital assets and previously launched both $WLFI and a stablecoin, USD1. This move highlights the Trump administration’s strong support of the crypto industry, with actions that include appointing favorable regulators, dismissing lawsuits, and encouraging financial institutions to embrace digital assets. President Trump, listed as the “co-founder emeritus” of World Liberty Financial, reportedly earned $57 million in fees from the company. His sons, along with Alex and Zach Witkoff, are also co-founders. As part of the deal, Zach Witkoff will chair ALT5, and Eric Trump will join its board. ALT5 shares rose 2.5% after the announcement, having climbed over 30% in the past week.
Following the enactment of the GENIUS Act by U.S. President Donald Trump on July 18, 2025, major financial institutions and companies such as Bank of America, Citigroup, Walmart, and Amazon are considering launching their own dollar-backed stablecoins. The GENIUS Act marks the first federal legislation governing stablecoins—cryptocurrencies pegged to the U.S. dollar—and aims to facilitate everyday digital transactions. While the law opens opportunities for faster payments and settlement, experts caution that significant technical, strategic, and regulatory hurdles remain. Companies must determine use cases for stablecoins—whether for customer transactions or internal cross-border payments—and whether to create new tokens or integrate existing ones like USDC. The law also imposes compliance requirements, particularly on nonbanks, including anti-money laundering and know-your-customer mandates. Banks may have an advantage due to existing compliance mechanisms but must address capital requirements and blockchain governance. Choices between public and private blockchains also pose important decisions. Although the GENIUS Act has been signed, its full implementation could take years, with federal agencies such as the Office of the Comptroller of the Currency and the Treasury Department expected to issue additional rules to address remaining regulatory gaps.
In a significant legal development, Do Kwon, co-founder of Terraform Labs, is expected to plead guilty to U.S. fraud charges linked to the collapse of the TerraUSD and Luna cryptocurrencies, which caused an estimated $40 billion in losses in 2022. Previously pleading not guilty, Kwon now may change his plea, according to a scheduling order issued by U.S. District Judge Paul Engelmayer. A hearing has been scheduled for Tuesday at 10:30 a.m. EDT in Manhattan federal court. Kwon faces a nine-count indictment including securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering. Neither his legal team nor the Manhattan U.S. Attorney's office provided an immediate comment.
The cryptocurrency industry continues to evolve rapidly, with significant developments in regulation, corporate involvement, and legal proceedings. As major financial institutions explore the integration of digital assets into their operations, and as regulatory frameworks like the GENIUS Act take shape, the landscape for cryptocurrencies is becoming increasingly complex. Stakeholders across the industry are closely monitoring these changes to navigate the challenges and opportunities presented by this dynamic environment.
