Monat: Mai 2025

• A three-year compliance period is proposed for digital asset firms.
• Democrats raise concerns about national security and money laundering.
• Crypto leaders say the US risks falling behind Europe and Asia on regulation.

Coinbase CEO Brian Armstrong has intensified pressure on the US Senate to act on crypto regulation, calling for a debate on the bipartisan GENIUS Act, which aims to establish a national framework for stablecoins.

With more than $1 trillion in stablecoin volume settled monthly and global competitors advancing their regulatory regimes, Armstrong’s urgency comes amid fears that the US may lose its foothold in digital finance.

His call underscores the growing push from crypto leaders for legislation that supports innovation while offering clear rules and consumer protections.

GENIUS Act sets uniform standards for stablecoins

Formally known as the Lummis-Gillibrand Payment Stablecoin Act, the GENIUS Act would mandate all stablecoins be fully backed 1:1 by US dollars, insured bank deposits, or Treasury bills, a move designed to eliminate concerns about solvency and run risk.

Only firms with a national licence would be permitted to issue these tokens, putting an end to the current patchwork of state-by-state regulations.

A three-year compliance window would give firms time to adapt, during which digital asset service providers must adjust their systems to align with new standards.

Supporters argue this would not only protect users, but also encourage institutional adoption by setting a clear regulatory perimeter.

Coinbase and other platforms dealing with dollar-pegged tokens such as USDC are expected to benefit if the act becomes law, potentially unlocking broader financial applications such as instant settlement and tokenised payments.

Democrats cite AML, security gaps as concerns

Despite initial bipartisan support, the bill is facing internal hurdles.

Senate Democrats have raised objections around national security, money laundering, and consumer protection, arguing the bill’s current provisions may not go far enough in curbing illicit finance.

This hesitation could delay progress before the August recess, even as Republicans and many industry leaders urge immediate action.

Without a compromise, the bill could stall in committee, leaving stablecoins in continued regulatory limbo.

Armstrong warned on X that the longer the US waits, the more likely it is to fall behind regions like the European Union, which already passed the MiCA framework, and Hong Kong, which plans to finalise its stablecoin rules this year.

Analysts have said this regulatory lag could push innovation offshore, depriving the US of its lead in blockchain-driven finance.

Industry calls the bill a turning point

If passed, the act would give stablecoin firms a green light to operate with confidence, possibly attracting more traditional finance players to the space.

Coinbase’s advocacy, including Armstrong’s direct appeal to lawmakers and other lobbying efforts in Washington, indicates that exchanges see regulatory certainty as key to unlocking the next phase of crypto adoption.

Still, the bill’s path to passage remains uncertain. It requires 60 votes in the Senate to move forward, which means several holdout Democrats would need to be swayed.

With time running out ahead of the August recess, much depends on whether lawmakers can strike a balance between risk mitigation and industry growth.

The post Coinbase CEO pushes for US stablecoin rules as Senate weighs GENIUS Act appeared first on CoinJournal.

• KuCoin released its latest Proof of Reserves report, offering a detailed snapshot of its current digital asset holdings.
• According to the report, KuCoin’s Bitcoin reserve ratio stands at 106%.
• The data indicates that KuCoin holds more BTC than it owes to its customers.

Crypto exchange KuCoin has refuted claims that it lost over 77% of its Bitcoin (BTC) reserves since mid-2023.

In a public statement, the company described the circulating figures as inaccurate and misleading, emphasizing its ongoing commitment to transparency, user security, and responsible reporting in the digital asset space.

The rebuttal comes in response to a report by blockchain analytics platform Onchain School, which alleged that KuCoin’s BTC holdings plunged from 18,300 BTC in June 2023 to approximately 4,100 BTC by April 2025—a sharp decline of nearly 14,200 BTC.

The report cited data from CryptoQuant, attributing the alleged drop to KuCoin’s implementation of mandatory Know Your Customer (KYC) rules last year.

KYC policy blamed for alleged Bitcoin outflows

The central argument in Onchain School’s analysis links KuCoin’s supposed BTC reserve decline to its KYC policy introduced in August 2023.

The new regulation required all users to complete identity verification—a move intended to enhance security and curb criminal activity, including money laundering and terrorism financing.

The analytics firm speculated that the stricter compliance measures led to mass user withdrawals due to privacy concerns.

It also noted that KuCoin’s alleged reserve drop was steeper than similar trends seen across centralized exchanges, suggesting a more acute user response in this case.

However, KuCoin pushed back on these conclusions, saying the figures do not accurately represent the current state of its reserves and warning that such misinformation could damage trust across the broader crypto industry.

KuCoin publishes proof-of-reserves to counter claims

To counter the narrative, KuCoin released its latest Proof of Reserves report—its 30th to date—offering a detailed snapshot of its current digital asset holdings.

According to the report, KuCoin’s Bitcoin reserve ratio stands at 106%, covering approximately 9,751 BTC in user balances and 10,306 BTC in exchange-controlled wallets.

The data indicates that KuCoin holds more BTC than it owes to its customers, reassuring users of the platform’s solvency.

In addition to Bitcoin, the report revealed overcollateralization for other major assets:

• Ethereum (ETH): 116% reserve ratio

• Tether (USDT): 114% reserve ratio

• USD Coin (USDC): 109% reserve ratio

KuCoin stated, “We’re concerned about the spread of false or misleading information by some platforms. Irresponsible reporting misleads users and undermines trust in the crypto ecosystem.”

The post KuCoin denies claims of 77% Bitcoin reserve drop, calls figures misleading appeared first on CoinJournal.