Favoring – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Tue, 29 Apr 2025 05:05:36 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.7 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 Favoring – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Caitlin Long Blasts Fed for Favoring Big Banks in Crypto Rules https://earlybirdsinvest.com/caitlin-long-blasts-fed-for-favoring-big-banks-in-crypto-rules/ https://earlybirdsinvest.com/caitlin-long-blasts-fed-for-favoring-big-banks-in-crypto-rules/#respond Tue, 29 Apr 2025 05:05:36 +0000 https://earlybirdsinvest.com/caitlin-long-blasts-fed-for-favoring-big-banks-in-crypto-rules/

Caitlin Long, CEO and founder of Custodia Bank, has raised concerns about the US Federal Reserve’s handling of crypto regulations.

Long explained in an April 27 post on X that even though the Fed had recently canceled four previous crypto guidelines, it had left one key rule in place—a statement made with the Biden administration in January 2023.

This remaining rule stops banks from working directly with cryptocurrencies and from creating stablecoins on open, permissionless blockchains. Instead, it favors stablecoins made by large banks within private systems.

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According to Long, this policy gives traditional financial institutions a head start in launching their own stablecoins, while other players in the market have to wait for Congress to pass a stablecoin law. She pointed out that if new federal legislation is passed, it could overrule the Fed’s current approach. She added, “Congress should hurry up”.

Long also said the Fed’s policy does not just affect stablecoins. It also limits banks from taking part directly in crypto markets. For example, banks cannot act as market-makers for cryptocurrencies like Bitcoin
BTC


$94,269.53

, Ethereum
ETH


$1,790.87

, or Solana
SOL


$146.23

.

Another issue she raised is about crypto custody services. Long explained that banks offering custody usually need to handle “gas fees” for blockchain transactions. However, under current Fed rules, banks are not allowed to pay these fees, which creates extra hurdles for them to provide proper services to crypto clients.

Recently, Paul Grewal, Coinbase’s chief legal officer, sent two letters to Acting Director Jamieson Greer of the Office of Government Ethics (OGE) and to new SEC Chair Gary Gensler. What did the letters address? Read the full story.

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]]> https://earlybirdsinvest.com/caitlin-long-blasts-fed-for-favoring-big-banks-in-crypto-rules/feed/ 0 33389 Australian Federal Court Dismisses ASIC Appeal, Favoring Crypto Lender Block Earner https://earlybirdsinvest.com/australian-federal-court-dismisses-asic-appeal-favoring-crypto-lender-block-earner/ https://earlybirdsinvest.com/australian-federal-court-dismisses-asic-appeal-favoring-crypto-lender-block-earner/#respond Wed, 23 Apr 2025 08:01:57 +0000 https://earlybirdsinvest.com/australian-federal-court-dismisses-asic-appeal-favoring-crypto-lender-block-earner/ The Federal Court of Australia has ruled in favor of crypto lender Block Earner, overturning a decision that it needed an Australian financial services license (AFSL) to offer its crypto-linked ‘Earner’ product.

The court has dismissed the financial regulator ASIC’s suit to impose penalties on the digital asset platform.

Per a Tuesday judgment, the court found that the discontinued ‘Earner’ product was a loan, not a managed investment scheme.

The Earner product was offered from March to November 2022, allowing customers to ‘loan’ specified crypto in return for interest paid at a fixed rate.

ASIC Loses Block Earner Suit

The Australian Securities and Investments Commission (ASIC) initiated the case, alleging violations of corporation laws by both Block Earner’s ‘Access’ and ‘Earner’ products.

Per the announcement, the “ASIC is seeking declarations, injunctions, and pecuniary penalties from the Court.”

The Australian Federal Court issued a ruling in February 2024, imposing penalties over the ‘Earner’ product. According to Judge Ian Jackson’s order at the time, the products were deemed to require an AFSL license.

However, another ruling in June 2024 relieved Block Earner from paying a penalty in the local financial regulator’s legal action, as the crypto firm has “acted honestly and not carelessly when it offered the Earner product.”

The regulator believed that Block Earner should pay a penalty of as much as $350,000, the Tuesday judgement read.

Justices David O’Callaghan, Wendy Abraham and Catherine Button have dismissed the ASIC’s appeal made last year. Further, the trio had ordered ASIC to cover all legal costs from both the original trial and the appeal.

Per the regulator’s recent press release, ASIC noted that it is “considering this decision” of the Federal Court.

No Plans to Re-Introduce ‘Earner’ Products

Despite the legal victory, Block Earner noted that it has no plans to re-launch its ‘Earner’ products for Australian customers.

Speaking to local media, Block Earner co-founder James Coombes said the Earner product was voluntarily closed in November 2022. Further, he stressed that there is no intention to reintroduce it.

“This case highlights the importance of ensuring regulations evolve alongside technology,” he said. “Without modernised guidance, Australia risks losing fintech innovation to offshore markets more supportive of responsible crypto entrepreneurship.”

Additionally, Block Earner co-founder Charlie Karaboga said that the ruling “brings closure to a long and difficult process.”

The post Australian Federal Court Dismisses ASIC Appeal, Favoring Crypto Lender Block Earner appeared first on Cryptonews.

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