Your bank is using your money. You’re getting the scraps.WATCH FREE

Wall Street

#Tech
2 mins read
5 days ago

Teenage hackers vs gaming’s biggest bet ‘GTA VI’ and Wall Street is watching

Palantir hits 15% weekly gain as Iran conflict intensifies despite Putin’s call for ceasefire
#Business
3 mins read
1 week ago

Trump and Wall Street gang up on Mike Burry over latest bearish prediction on Palantir

#News
3 mins read
1 week ago

Circle shares sink nearly 10% as Wall Street turns bearish amid crypto fallout

#News
3 mins read
2 months ago

Wall Street on edge: 5 jobs data scenarios could make or break stock rally

White House
#News
3 mins read
3 months ago

White House meets crypto and banking leaders to tackle stablecoin yield

#News
3 mins read
3 months ago

Wall Street picked Trump’s new Fed chairman Kevin Warsh

43% of Wall Street experts see prediction markets adding value, yet caution on trading depth
#Tech
2 mins read
3 months ago

Wall Street gives up on Adobe as it becomes poster child of AI distruption fears

FOLLOW OUR TWITTER

Crypto firms and Wall Street banks are now fighting for control over how money works in the digital age. At the center of it is the stablecoin. Behind every coffee tap or online purchase, there’s a payment system most people never think about. JPMorgan alone handles 6,000 transactions per second around the world. Crypto companies want in. They’re pushing for stablecoins to replace the old system. They say it’s faster, cheaper, and built for the internet. Banks say it’s reckless and could wreck the financial system. Banks want to block stablecoin rewards before it's too late Right now, stablecoin issuers can’t offer interest. But platforms like Coinbase, Kraken, and Gemini still can. That’s the gap banks want closed. They’re lobbying Congress to ban interest on stablecoins across the board. They argue crypto companies are acting like banks without following banking rules. JPMorgan’s CFO, Jeremy Barnum, warned it could lead to a “parallel banking system.” A Treasury study said $6.6 trillion could leave banks for stablecoins. Fed economist Jessie Wang said it might be closer to $65 billion, but banks aren’t taking chances. Coinbase pulled support from the crypto bill in January. Brian Armstrong, the CEO, said, “We’d rather have no bill than a bad bill.” Lobbyists are now meeting in Washington, trying to find a middle ground. But the banks don’t want crypto firms paying interest at all. They think it’s unfair competition. Trump-backed crypto firms step into politics and banking Crypto firms aren’t sitting back. They’ve raised $193 million ahead of the midterms to back pro-crypto lawmakers. Donald Trump, now in his second term, supports stablecoins. His family business even launched one and applied for a U.S. bank license. The Federal Reserve is deciding whether to give crypto companies “skinny” accounts to access Fed payment systems directly. Banks hate the idea. Meanwhile, Europe already set its crypto rules in 2024. Benchmark’s Mark Palmer said this is a big moment for banks and fintechs that have ignored stablecoins until now. Ripple’s Jack McDonald said banks are scared of losing the deposit business, where they barely pay interest. Circle’s Jeremy Allaire told people in Davos this is no different from when money market funds started and banks freaked out back then too. Regulators fear de-pegs, criminal use, and bank runs There’s real concern about what happens if stablecoins break. In 2023, when Silicon Valley Bank collapsed, Circle’s USDC dropped below $1. It had 8% of reserves locked in the failed bank. Circle pushed for a rescue, and the peg held, but it showed how shaky things could get. The European Central Bank warned that a run on stablecoins could force them to sell billions in U.S. Treasuries fast, causing damage. Hilary Allen from American University said a stablecoin panic could spark a run on the entire Treasury market. In the UK, the Bank of England wants to cap stablecoin holdings at £20,000 for people and £10 million for companies to slow deposit outflows. Crypto firms hate the idea. They say it would stop the industry from growing. Banks worry that as stablecoins grow, they’ll have less money to lend for things like mortgages or business loans. Philipp Paech from the London School of Economics said less liquidity means higher loan costs, weaker banks, and a less stable system. Governments are now worried crypto firms will try to become banks. Circle, Ripple, and others got conditional trust charters to offer custody and brokerage services. Their customers still don’t get insured deposits. Bybit is working on launching actual bank accounts. The Bank Policy Institute fought back last year. They said crypto firms want the perks of being banks without the rules. Allaire responded at Davos that lending is now moving away from banks. He wants stablecoins to be “very, very safe money” backed by regulated reserves. Right now, most stablecoin use comes from traders moving in and out of crypto. But the future could look very different. Banks and asset managers are already experimenting. Société Générale created euro and dollar stablecoins. BNP Paribas, UniCredit, and Standard Chartered are building theirs too. Citi and Bank of America are exploring the same path. Even PayPal and Western Union are joining in. The New York Stock Exchange is working on a tokenized stock platform. Goldman Sachs CEO David Solomon said they’re already playing with the tech. But stablecoins also carry a darker side. Chainalysis said they made up 84% of illicit crypto transactions last year. Tether often shows up in global criminal cases. The company says it works with law enforcement in 48 countries. Some experts think stablecoins aren’t that special. Paech said they’re just like e-money systems used by PayPal. He said they only stand out “in the dodgy corners of the economy,” like money laundering.
#Business
3 mins read
3 months ago

Wall Street biggest banks see their biggest annual profits in history at $157B thanks to Trump

#News
3 mins read
4 months ago

Markets start new year on high note, but what comes next

#Business
2 mins read
4 months ago

Wall Street tells Berkshire Hathaway’s new CEO Greg Abel, ‘Don’t try to be Warren’

#Tech
3 mins read
4 months ago

Wall Street is going bullish on Baidu, Nvidia’s top chip competitor in China

#Economy
2 mins read
4 months ago

Wall Street thinks China’s yuan is 25% undervalued by a quarter on real‑trade basis

#Business
3 mins read
5 months ago

Bubble‑watch intensifies as Alphabet ranks among top overbought stocks

#Tech
3 mins read
5 months ago

Wall Street sounds alarm on Big Tech’s AI push

#News
3 mins read
6 months ago

Why is Palantir’s stock crashing today?

#Business
3 mins read
6 months ago

Wall Street downgrades Warren Buffett’s Berkshire Hathaway with a rare “sell” signal

#News
2 mins read
6 months ago

Wall Street’s Saudi bet accelerates as Citi plants its flag in Riyadh

#Economy
2 mins read
6 months ago

Wall Street cheers 3% CPI print as Main Street remains stuck in survival mode

#News
2 mins read
6 months ago

Meme stocks now make up 40% of Wall Street’s options market

#Business
3 mins read
6 months ago

Shrinking profits, $1T pay package leave investors wanting more from Tesla after Q3 report

Commercial real estate eyes blockchain burst with $4 trillion tokenization
#Business
2 mins read
6 months ago

Commercial real estate eyes blockchain burst with $4 trillion tokenization

Wall Street blasts Trump’s 10% cap as “devastating” for lenders and borrowers
#News
3 mins read
6 months ago

Wall Street trading floor braces for margin hits and delivery clues in Tesla’s Q3 report

#News
3 mins read
6 months ago

Wall Street enters second Q3 earnings week with first inflation data amid US shutdown

#Tech
3 mins read
6 months ago

Wall Street rattled as Zions Bank admits to ‘sweeping betrayal of trust’ in $50M fraud‑linked loss

#Business
3 mins read
6 months ago

Altcoin crash puts 100+ ETF applications on ice as Wall Street scrambles

#News
3 mins read
6 months ago

Wall Street set to gain $2.6 trillion in lending capacity from bank deregulation

#News
3 mins read
7 months ago

S&P nears dot-com era valuations, but Wall Street believes this time is different

#News
3 mins read
7 months ago

Wall Street’s VIX funds surge past $1 billion as traders continue betting on a market crash

Getty Images stock surges by 50% after Perplexity AI licensing tie‑up
#Tech
3 mins read
7 months ago

Wall Street’s AI trade is outgrowing Big Tech – What does this mean for the Mag 7?

#News
2 mins read
7 months ago

Bitcoin treasuries crash 76% as Wall Street pulls back

#Economy
3 mins read
7 months ago

Main Street still feels like a recession even as Wall Street breaks records

#News
2 mins read
7 months ago

Nearly $1 trillion floods ETFs as markets front-run the Fed

#News
3 mins read
7 months ago

Wall Street execs are no longer bullish on US economy, even with a Fed rate cut coming

Wall Street's $16 trillion rally powers on while geopolitics burn in the background
#News
3 mins read
7 months ago

Wall Street’s bull run standing strong in the face of Trump shenanigans, BLS blunder, and Nvidia slump

September doom sets in as Wall Street turns to banks and gold miners for safety
#News
3 mins read
8 months ago

Wall Street giants now expect 3 rate cuts from the Fed between September and November

Wall Street trade groups bring new scrutiny to Basel crypto standards
#News
3 mins read
8 months ago

Wall Street eyes strong August finish with Powell speech behind and Nvidia earnings ahead

#News
3 mins read
9 months ago

Wall Street cools off on Coinbase with multiple sell ratings across the board

#News
3 mins read
9 months ago

Wall Street braces for data-packed week as Fed events, PMI and 120 earnings reports collide

#Tech
3 mins read
9 months ago

Wall Street’s patience is thinning – Apple’s AI silence is becoming a problem

SEARCH
Top Sections
Follow us
Twitter Instagram Linkedin Telegram Facebook Youtube Reddit
Subscribe to CryptoPolitan