The Federal Reserve’s top regulatory official says staff from the US central bank should be allowed to invest a small amount in crypto to help them understand the technology.

Fed vice chair for supervision Michelle Bowman said at a blockchain event in Wyoming on Tuesday that the regulator should consider allowing its staff “to hold de minimus amounts of crypto or other types of digital assets so they can achieve a working understanding of the underlying functionality.”

“We will soon be establishing a framework for supervising issuers of these assets,” she added.

“There’s no replacement for experimenting and understanding how that ownership and transfer process flows.”

Currently, most Fed staffers and their spouses are barred from owning crypto or products that concentrate on crypto, such as exchange-traded funds or shares in crypto companies.

The Fed tightened its rules on all investments in early 2022 after it was revealed that three top officials had unusual trading activity in 2020, as the regulator took action to support the US economy in the early days of the COVID-19 pandemic.

Allowing crypto could help recruitment, rulemaking 

Bowman said the Fed staff investment restrictions “may be a barrier to recruiting and retaining examiners with the necessary expertise,” and easing the rules would help existing staff better understand the technology.

“I certainly wouldn’t trust someone to teach me to ski if they’d never put on skis, regardless of how many books and articles they have read, or even wrote, about it.”

Bowman urges Fed not to “stand still”

In her speech, Bowman said bank regulators had an “overly cautious mindset” and urged them to be less skeptical of new financial products and “recognize the utility and necessity of embracing technology in the traditional financial sector.”

She said some bankers are concerned that blockchain technology threatens traditional business models, but that technology could “change the banking system regardless of how banks and regulators choose to respond.”

“We must choose whether to embrace the change and help shape a framework that will be reliable and durable — ensuring safety and soundness and incorporating the benefits of both efficiency and speed — or to stand still and allow new technology to bypass the traditional banking system altogether,” she added. 

“From a regulator’s perspective, the choice is clear.”

Related: New crypto advocacy group debuts at Wyoming summit

Bowman said she recognized the risks in adopting new technology, but those could be offset or “at least determined to be manageable when we recognize and consider the potentially extensive benefits of new technology.”

Trump’s crypto-friendly push

Bowman didn’t specify the types of crypto products or what amounts she would suggest the Fed allow, but her comments are the latest crypto-friendly remarks regulators have taken under the Trump administration.

On Friday, the Fed said it would end a supervision program for crypto and blockchain-related activities undertaken by banks, which the Biden administration set up in 2023.

Trump also signed an executive order earlier this month directing banking regulators to investigate claims of debanking made by the crypto sector and conservatives.

Trade Secrets: Ether could ‘rip like 2021’ as SOL traders brace for 10% drop 

]]> https://earlybirdsinvest.com/top-fed-official-staff-should-be-allowed-to-hold-a-little-crypto/feed/ 0 54108 https://earlybirdsinvest.com/brian-armstrong-taps-ex-doge-staff-to-help-build-coinbases-future/ https://earlybirdsinvest.com/brian-armstrong-taps-ex-doge-staff-to-help-build-coinbases-future/#respond Thu, 15 May 2025 01:27:28 +0000 https://earlybirdsinvest.com/brian-armstrong-taps-ex-doge-staff-to-help-build-coinbases-future/

Brian Armstrong, CEO of the cryptocurrency exchange Coinbase

$2.22B

, has invited former Department of Government Efficiency (DOGE) staff to consider joining the company.

On May 13, Armstrong shared a video clip in a post on X featuring Ethan Shaotran, a 22-year-old former DOGE staffer who left Harvard to join the agency.

In the video, Shaotran said it led to strained friendships and criticism on campus. “Most of the campus hates me”, he said. He also mentioned that DOGE’s work was important and needed, despite the backlash.

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According to Shaotran, the team often worked late into the night, seven days a week, with no weekends off. He felt that the experience he gained at DOGE was more valuable than what he would have learned by staying in school to study computer science.

Rather than just resharing the video, Armstrong encouraged anyone who had worked at DOGE to consider taking part in Coinbase’s mission to improve financial systems.

He included a link to a short application form. The message on the form read, “If your last mission is complete, let’s talk about what you can build next”. Additionally, Armstrong noted:

If you are looking for your next mission after serving your country, consider helping create a more efficient financial system for the world.

On May 6, Coinbase introduced a new payment tool called x402. What is it used for? Read the full story.

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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Crypto exchange giant Coinbase is set to expand its footprint by hiring over 130 employees in Charlotte, North Carolina, as part of a broader push to tap into emerging fintech talent pools across the US, a company spokesperson confirmed to Cointelegraph.

“Coinbase is making a new investment in Charlotte with a new physical office and an immediate commitment to hire for 130+ local roles across both Compliance and Customer Support over the next six months,” the spokesperson said.

They added that Coinbase’s focus on Charlotte is in response to the city’s emergence as a key financial and tech center, making it a prime choice for expansion to address increasing customer and compliance demands.

With a fast-growing population and a highly skilled talent pool, Charlotte offers an ideal setting to support Coinbase’s long-term growth, the spokesperson said.

Related: Coinbase Derivatives lists XRP futures

Coinbase remains a remote-first company

Coinbase has operated as a remote-first company since 2020, with existing offices in San Francisco and New York.

“We are still a remote-first company; however, we have some roles globally that are in office due to the nature of the role and our focus on how we can best deliver for our customers,” the spokesperson said.

They added that around 95% of Coinbase’s employees have the option to work from home, an office, or a mix. The bigger picture here is we’re making an intentional push to meet top talent where they are.

Related: Paul Atkins’ loosely linked RSR token rises 13% after Coinbase listing

The move comes as Coinbase CEO Brian Armstrong outlined plans to add about 1,000 new US employees this year, driven by favorable regulatory signals from President Donald Trump’s pro-crypto administration.

“Coinbase is planning to hire about 1,000 people in the United States this year as a direct result of his actions already in the first 60 days or so,” Armstrong said in a video posted to X on March 7.

Adding 1,000 more employees would increase Coinbase’s total workforce by about 27%, according to Stockanalysis’ most recent data, which shows that the crypto exchange currently has 3,772 employees.

The new expansion plans also come as Coinbase has confirmed that it is considering applying for a US federal bank charter.

Magazine: Former Love Island star’s tips on how to go viral in crypto: Van00sa, X Hall of Flame

]]> https://earlybirdsinvest.com/coinbase-to-hire-130-staff-as-it-expands-into-charlottes-fintech-hub/feed/ 0 32381 https://earlybirdsinvest.com/sec-staff-gives-guidance-on-how-securities-laws-could-apply-to-crypto/ https://earlybirdsinvest.com/sec-staff-gives-guidance-on-how-securities-laws-could-apply-to-crypto/#respond Fri, 11 Apr 2025 02:36:43 +0000 https://earlybirdsinvest.com/sec-staff-gives-guidance-on-how-securities-laws-could-apply-to-crypto/

The Securities and Exchange Commission does not have business with any particular stubcoin or its issuer. Regulatory staff declared in their latest statement outlining corners of the crypto sector with no legal interests.

As the agency took over to the leadership appointed by President Donald Trump, establishing the Cryptody Task Force to ease pressure on the digital assets sector, its staff have so far issued a series of statements to clarify crypto areas outside their jurisdiction, including meme coins and proof of work crypto mining. Certain stubcoins have been added to that list. The SEC Corporation Finance division has not made any statement on Friday, or even formal guidance, to declare such a ridiculous statement “without the offer and sale of securities.”

“The redemption of those involved (or created) in the process of “mint” and the subject stubcoins does not require these transactions to be registered with the Commission under the Securities Act.

Such stub coins – the arena controlled by USDT of Tether and USDC of Circle arenas “sold only for commercial use, not as an investment but as a means of payment, remittance and/or storing value.”

However, the stubcoins covered in this statement may not include tethered ones. One footnote says that acceptable reserves “do not include precious metals or other crypto assets,” so both are included in the spare tether. And while the statement states that tokens must be redeemed in dollars at any time, Tether’s terms of service suggest that there may be minimum or delays.

Circle President Heath Tarbert posted social media comments to his competitors, including jabs.

“The SEC only drew a clear line. Stubcoins supported a high-quality liquid asset, one-to-one. “This certainty doesn’t extend to other digital assets just because they call themselves ‘stablecoins’. ”

Congress is moving forward to establishing a new US standard set for issuing such tokens. This week, the House Financial Services Committee moved forward with the Stubcoin bill towards a House-wide vote. The Senate is building towards consideration of similar bills that have also been approved by the committee. In both cases, by a broad, bipartisan vote.

They are the most subdued crypto assets, but Stabrecoin has been a colorful political topic in recent weeks as Trump-backed world freedom finance pitches its own stubcoin and some Congressional Democrats are worried that Elon Musk will take advantage of his position as a tech giant.

Hester Peirce, SEC commissioner who leads the agency’s task force, said he feels that the early uncoupled movement to reverse cryptographic resistance in the SEC is important and should be done quickly, even if it is not yet an official policy. She said that inappropriate tokens (NFTS) may also be considered for such statements.

Read more: sec ‘earnest’ about finding viable cryptographic policies, committee members say in Roundtable

The SEC is set to be second in next week’s series of crypto summits. This is set to focus on trading.

The agency may soon take over to select Trump’s permanent chairman if Paul Atkins is confirmed by the Senate. The Senate Banking Committee approved the nomination in a partisan vote this week.

Even before his arrival, interim chairman Mark Ueda made a dramatic move to overhaul the regulator’s crypto position. That includes abandoning most of the notable enforcement cases that agents have pursued against their digital asset businesses, although some remain.

Updated (April 4, 2025, 20:52 UTC): Potentially filter out information about Tether tokens.
Updated (April 4, 2025, 21:22 UTC): Add a comment from the circle president.

The U.S. Securities and Exchange Commission (SEC) is ready to reset its relationship with the crypto industry, according to Commissioner Hester Peirce.

The SEC’s new “Crypto Task Force” held its inaugural roundtable event on Friday, which brought together regulators, private-sector lawyers and digital asset firm executives.

At the event, Peirce, a longtime crypto advocate, spoke of “a restart of the Commission’s approach to crypto regulation.”

“The formation of the Crypto Task Force gave permission to staff in the building to work earnestly towards a workable framework for crypto regulation, and staff have responded with palpable enthusiasm. The enthusiasm in this room is also palpable, so let us seize the moment and have a meaningful conversation today. 

This room is full of people—on the panel, on the Crypto Task Force, on the Commission staff, and in the audience—who are ready for [the] sprint ahead. People have been talking, thinking, and writing about the issues with which we are now wrestling. The roundtable series will allow us to explore the issues collaboratively.”

Peirce leads the Crypto Task Force, which launched in January. The commissioner said last month that the team is currently working on questions related to the security status, public offerings, custody and secondary market trading of crypto assets.

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The US Securities and Exchange Commission’s (SEC) Division of Corporation Finance clarified that memecoins do not constitute securities under federal law, marking a notable stance on a sector of the crypto market often fueled by speculation and internet culture.

In a Feb. 27 staff statement, the SEC emphasized that memecoins, which are typically inspired by online trends and lack substantial utility, do not meet the definition of an “investment contract” under the Howey test — a legal standard used to determine whether a transaction qualifies as a security.

The statement highlighted that memecoin transactions do not involve pooled investor funds or managerial efforts from a centralized entity, key factors in determining security status.

According to the statement:

“Memecoins are primarily purchased for entertainment, social interaction, and cultural engagement, with their value driven by market sentiment rather than the managerial or entrepreneurial efforts of others.”

The SEC also likened meme coins to collectibles, emphasizing their speculative nature and price volatility.

While the SEC’s position relieves memecoin promoters and traders of registration requirements under the Securities Act of 1933, the agency cautioned that fraudulent activity involving memecoins could still trigger enforcement actions under other federal and state laws.

The statement emphasized that labeling a financial product as a “memecoin” does not exempt it from securities regulations if its economic realities indicate otherwise.

The clarification comes after years of regulatory scrutiny over digital assets, with the SEC aggressively pursuing enforcement actions against crypto projects deemed to have violated securities laws.

However, memecoins, often created as jokes or social experiments, have remained in a legal gray area despite their growing presence in online trading communities.

Legal experts view the SEC’s stance as a potential shift in the regulatory landscape, setting a precedent for how speculative digital assets may be treated under federal law. While the statement does not carry legal weight, it signals a departure from previous enforcement patterns that targeted token issuances perceived as securities.

The SEC’s announcement could have broad implications for the crypto market, where memecoins have evolved from internet novelties into multi-billion-dollar assets.

Despite the statement, uncertainties remain regarding future regulatory developments, particularly as lawmakers and agencies continue to debate comprehensive frameworks for digital assets.

The SEC reaffirmed its commitment to evaluating crypto products on a case-by-case basis, warning that new variations of meme coins designed to circumvent securities laws would still be subject to regulatory scrutiny.

Investors and crypto enthusiasts welcomed the clarification, viewing it as a step toward regulatory consistency. However, the agency’s warning against fraudulent schemes reinforced the need for market participants to remain cautious amid meme coin speculation.