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- > US Banks Given Go-Ahead to Facilitate Crypto Brokerage
- > US Federal Reserve cuts rates by 25 basis points
- > Western Union tackles inflation with stablecoin card
- > Conference frenzy as crypto gears up for the New Year
US Banks Given Go-Ahead to Facilitate Crypto Brokerage
The regulatory push of 2025 has entered its next phase, with national banks given the greenlight to facilitate crypto transactions.
A key philosophy of the Trump administration has been to bridge TradFi and DeFi, starting with the prospect of a Strategic Bitcoin Reserve, and the September GENIUS Act which laid the framework for compliant US stablecoins.
The answer to what’s next in line has been revealed – banking.
According to a decision from US banking regulator, the Office of the Comptroller of the Currency (yeah, bit of a tongue-twister), local banks may engage in ‘riskless crypto-asset transactions.
Simply, this means that banks can act as brokers between customers and a crypto exchange. The interactions are ‘riskless’ as the bank never custodies the digital assets – the bank executes buy and sell orders simultaneously.
The move comes as the banking regulator implied demand for such a product among US residents had been building.
‘Several applicants have discussed how conducting riskless principal crypto-asset transactions would benefit their proposed bank’s customers and business, including by offering additional services in a growing market’ – Office of the Comptroller of the Currency
Banks, at least in the United States, adhere to a strict set of regulatory guidelines, which may give those sitting on the sidelines the confidence to begin their crypto journey.
US Federal Reserve cuts rates by 25 basis points
December has been shaping up as a big month, not just for crypto, but the broader economic framework.
One of the most impactful decisions has come to pass, with the US Federal Reserve proceeding with a widely-anticipated 25 basis point rate cut.
With expectations for this cut sitting above 80% for the best part of a month, most in the market had already factored in this economic decision.
However, during the meeting, the economic committee adopted a hawkish tone, suggesting that the next two years may only see two further rate cuts.
Uncertainty surrounding the economy’s medium-term future has plagued policymakers, with the Fed walking the tightrope of boosting productivity while harnessing inflation.
The crypto market responded with hesitancy to the news. Most majors fell between 1-3% on the news, with BTC (-0.4%) and Ethereum (+0.5%) the least-impacted of the top ten at the time of writing.
Meanwhile, angst in national markets has been building as the Bank of Japan (BoJ) is expected to lift rates to their highest level in over a decade. Because of Japan’s traditionally low (or even negative) rates, many global investors used the Yen as a funding currency – borrowing cheaply to invest in higher-yielding assets.
With rates rising, these leveraged positions (the ‘carry trade’) can become untenable, causing liquidations to ricochet across the market.
Pair this with the Fed’s cautious tone, and it appears the global macroeconomic situation remains quite complicated moving into 2026.
However, on a potentially more positive note, Fed Chair Jerome Powell highlighted the policymakers may be pivoting to an unemployment-first focus. Tight monetary policy can help tackle inflation – but it can also slow growth, and by extension, the job market. So an emphasis on promoting growth and jobs could see a boost in liquidity moving into 2026, even if US interest rates remain elevated.
Western Union tackles inflation with stablecoin card
Stablecoins have dominated institutional involvement in the crypto industry for much of 2025, a trend that’s showing little sign of slowing down.
Western Union, a global payments provider serving 200+ countries, unveiled plans to release a stablecoin card.
Several such products already exist, but Western Union would be one of the first international TradFi institutions to offer a dedicated stablecoin card.
The target audience will be residents in nations suffering from volatile or high-inflation local currencies, such as Argentina (which had an inflation rate of over 300% in 2024).
Western Union’s CFO, Matthew Cagwin, expanded on this point in the press release.
‘Imagine a scenario where your family in the US sends you $500 home, but by the time you spend it the following month, it’s only worth $300…We see significant utility for our stable card there, effectively an increment to our existing prepaid card offering in the US.’
The financial institution intends to create its own stablecoin launched via a purpose-built digital asset network. The expected release date of these products is in the first half of 2026.
Conference frenzy as crypto gears up for the New Year
Two of the year’s biggest crypto events are taking place in Abu Dhabi this week, with thousands of major players from across the globe linnking up to talk all things blockchain.
The first conference, Bitcoin MENA, wrapped up yesterday, featuring keynote speeches from Strategy’s Michael Saylor and ex-Binance CEO Changpeng Zhao (CZ).
Saylor reiterated his company’s status as a Bitcoin vacuum, confirming weekly BTC purchases worth $500 million to $1 billion USD for the foreseeable future.
CZ, who is serving as a digital asset advisor to Pakistan, reflected on the changing world of crypto as institutions and governments continue to enter the scene. He suggested that the four-year cycle may have been broken once and for all, giving way to a super-cycle spurred by global liquidity and increasing adoption.
Just a day following the Bitcoin MENA Conference, Abu Dhabi will turn around to host Solana Breakpoint.
Speculation is circling that Solana officials may reveal several new features, such as a mobile rewards token and improved clarity around Firedancer – Solana’s next technological upgrade.
Ben Knight
