US banking groups have asked the Office of the Comptroller of the Currency (OCC) to delay decisions on crypto companies applying for national bank licences, according to Cointelegraph. Major associations like the American Bankers Association argue that applications from companies such as Circle, Ripple and Fidelity Digital Assets lack enough clarity. They want the OCC to make the process more transparent before granting any approvals.
These groups believe that crypto firms providing custody services should not get national bank charters that are meant for trust-based fiduciary roles. They say such approvals would be a big change in banking policy and could allow many non-traditional firms to become banks. This, they warn, might create risks for the financial system.
Supporters of crypto charters disagree. Caitlin Long, founder of Custodia Bank, has said to Cointelegraph the matter could end up in court. She pointed out that traditional banks could convert to trust companies to benefit from lighter capital rules. Alexander Grieve of Paradigm stated that banks and credit unions rarely agree, but they are united now because crypto has become real competition.
Cointelegraph reported that these licences would help firms operate across states without needing separate approvals. Cointelegraph reports that this debate shows how crypto is challenging traditional banking rules.
UK May Sell Seized Bitcoin To Raise Money, Says Cointelegraph
The UK government is planning to sell a large amount of Bitcoin taken from criminals, worth about $7 billion, as reported by Cointelegraph. This includes around 61,000 BTC linked to a Chinese fraud case from 2018. The Treasury and Home Office are working with the police to set up a safe way to store and sell these coins.
The sale is being considered to help cover a gap in the national budget as the country faces high borrowing costs and slow growth. Selling this Bitcoin could bring in a big amount of money without raising taxes or cutting public services. But the process is not easy. The High Court must approve the sale, and victims of the fraud, along with Chinese authorities, are still claiming that the Bitcoin belongs to them.
Cointelegraph says experts warn against selling too quickly. If the UK rushes the sale, it might lose value, similar to when the country sold its gold in 1999 before prices rose sharply. Some suggest that the government should wait for the right time to sell instead of focusing only on short-term needs.
The idea is still being discussed, and the final step will depend on legal rulings and market conditions. Cointelegraph highlights that this shows how cryptocurrency is now seen as an important financial asset by governments.
Crypto Funds See $4.4 Billion Inflows as Ether ETPs Surpass 2024 Gains
Crypto investment funds have recorded inflows worth $4.4 billion this year, showing a strong rise in investor interest. This is one of the biggest inflow trends since 2021 and highlights growing trust in digital assets, according to Cointelegraph.
Ethereum-focused exchange-traded products (ETPs) have seen the most notable growth. Their inflows have already surpassed the total amount recorded for all of 2024, reflecting a shift in investor attention toward Ether. Many investors now see Ethereum as a key competitor to Bitcoin due to its technology and applications in decentralised finance.
The increase in crypto inflows is partly linked to recent price rallies. Bitcoin has reached new record highs, while Ethereum has also seen significant price gains. Cointelegraph notes that these price movements have encouraged institutional investors to allocate more funds to the crypto market.
Analysts believe this surge in investment may indicate a shift in how cryptocurrencies are perceived, moving from speculative assets to mainstream investments. However, they also warn of potential volatility in the market.
Cointelegraph reports that the rise in inflows and growing interest in Ether ETPs could signal a new phase of wider acceptance for cryptocurrencies in global finance.
