Connect with us
DAPA Banner

Crypto World

Crypto world faces growing pressure to relent on stablecoin rewards to win bigger prize

Published

on

Crypto world faces growing pressure to relent on stablecoin rewards to win bigger prize

If you break down what’s standing in the way of advancing the crypto sector’s top goal in Washington — Clarity Act legislation — the part of the debate that the industry can control is narrow: stablecoin rewards.

That’s not the only issue that could potentially derail the bill to finally establish a tailored legal footing for crypto markets in the U.S., but it’s the one in which industry insiders have a strong say. Companies such as Coinbase have been vigorously defending that business turf, wanting to keep giving customers incentives for engaging with stablecoins on their platforms.

But Wall Street banking lobbyists rolled in and made an argument that getting yield on stablecoin accounts is a lot like getting interest on savings accounts, and if the former kills the latter, the death of the deposit business means the strangulation of bank lending. That argument stuck with enough lawmakers on both sides of the aisle that it stopped the Senate’s Digital Asset Market Clarity Act in its tracks.

Heels have been digging in, and the resulting impasse will get harder to break as the weeks fly by, until the Senate’s own calendar quirks could effectively shove the whole mess toward 2027.

Advertisement

Upper hand?

Until now, the crypto side has argued that it has the upper hand, because the crypto bill that already passed into law — the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act — seemed to allow third-party platforms such as Coinbase to offer rewards tied to other issuers’ tokens, such as Circle’s. However, a newly proposed rule from the Office of the Comptroller of the Currency that’s implementing GENIUS concluded that such relationships may violate the intent of the law, leaving the crypto world’s confidence a little shaken.

The last time the crypto and banking negotiators sat down with White House officials, President Donald Trump’s crypto advisers seemed to favor a compromise that would allow some rewards — not for merely holding stablecoins, but for actually using them for transactions and to support crypto infrastructure. Crypto insiders felt confident in their leverage, with GENIUS behind them and the White House favoring certain rewards.

But bank representatives haven’t necessarily seen the White House in the driver’s seat, because the White House doesn’t get a vote in advancing the Senate’s bill. The bankers haven’t yet raised their hands to move beyond their earlier position that virtually all categories of rewards need to be banned, despite the White House having set the end of February as an informal (unmet) deadline for compromise.

So where does that leave things?

Advertisement

The banks can hold out, and if they continue to cast stablecoin rewards as an existential threat to the traditional financial system and Main Street lending, it could keep their allied lawmakers on their side at the fatal expense of the Clarity Act. What they risk is that the GENIUS Act remains the law of the land on this point. The OCC’s latest work may help bolster their confidence that strict rewards limits will be put in place, but that final agency rule would have to land on a very restrictive interpretation.

The crypto industry can also hold out, and if it can successfully lobby against the OCC’s proposed rule, it may still manage to preserve stablecoin reward programs it believes should be allowed under the wording of the GENIUS Act. But that may come at the cost of the Clarity Act, which is the single most important policy aim since the birth of crypto.

Regulations either way

Would an absence of Clarity mean that the industry continues without U.S. regulations? Probably not, because the U.S. markets regulators — the Securities and Exchange Commission and the Commodity Futures Trading Commission — are working on rules that will define their crypto jurisdictions. The drawback, though, is that it would be done without the foundation of new law, so the rules would be reasonably easy to peel back or revise under future leadership changes at those agencies.

As if that wasn’t enough for the crypto negotiators to consider, there’s this: If they were to capitulate somehow on stablecoin yield, and the bill advanced along party lines through the Senate Banking Committee (as it already was through the Senate Agriculture Committee), the crypto-industry sacrifice brings no guarantee the effort gets passed by the rest of the Senate.

Advertisement

The problem is that Democratic senators have asked for some other significant points in this bill, and so far, those requests have gone unanswered. They want more vigorous defenses against illicit finance in crypto, especially focused on the decentralized finance (DeFi) space, and some of the Democrats’ past ideas were bashed by the industry as DeFi death threats. They also want politically dicey limits on the personal crypto business ties of senior government officials — most significantly, President Trump. And they demand that vacant Democratic seats get filled in the CFTC and SEC.

None of the points represent impassable roadblocks, but in the months of talks, they haven’t been cleared, yet. Some of the requests — such as commission nominations — would depend on willingness from the White House.

In the meantime, the clock is ticking away on 2026 Senate floor time for a major legislative accomplishment. Because this is a midterm election year, the lawmakers will scarcely be working in the Senate after the end of July. And apart from the scheduling practicalities, the nearness of hot-blooded campaigning erodes the chances of the parties getting together on a bill.

At this stage, insiders on the crypto side of the talks have expressed frustration over the unwavering position of the bankers, even as the digital assets businesses have seemed prepared to abandon stablecoin rewards on accounts in which the tokens are simply held (like a bank account). Still, people like Coinbase CEO Brian Armstrong (“We’re going to reach a win-win-win outcome“) and Ripple CEO Brian Garlinghouse (predicting 80% odds of passage) have sought to maintain industry confidence.

Advertisement

That optimism seems to have kept Polymarket bettors favoring Clarity Act passage this year above a coin flip, currently at 70%.

In the coming weeks, the crypto industry may be forced to decide whether some kind of further sacrifice on stablecoin rewards is worth eliminating one of the major impediments to advancing a bill. And the banks may have to decide whether they can contend with the GENIUS Act’s treatment of stablecoins as it stands. So far, neither are moving, and tension is building.

Source link

Advertisement
Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Crypto World

AST falls after Bezos’ Blue Origin places satellite in wrong orbit

Published

on

hide content

A Blue Origin New Glenn rocket carrying an AST SpaceMobile Bluebird 7 satellite launches from pad 36 at Cape Canaveral Space Force Station on April 19, 2026 in Cape Canaveral, Florida.

Paul Hennesy | Anadolu | Getty Images

A failed satellite launch sent of AST SpaceMobile down sharply on Monday.

Advertisement

The stock fell nearly 12% in premarket trading after a rocket designed by Jeff Bezos’ space technology company Blue Origin placed the satellite in a lower-than-planned orbit on Sunday. 

AST SpaceMobile’s BlueBird 7 satellite would have been the company’s eighth launched into low-earth orbit, the company said in a Sunday press release. It was launched on Blue Origin’s third New Glenn rocket.

Blue Origin acknowledged in a post on X that the satellite was placed into the wrong orbit, but only added it was assessing the situation and would provide further updates. The company hasn’t made a statement since the satellite was officially deemed lost. 

The cost of the satellite loss is expected to be covered by an insurance policy, AST said in the release. It also still expects to launch a satellite on average once every one to two months in 2026, and said BlueBird satellites 8, 9 and 10 should be ready to ship in 30 days. 

Advertisement
Stock Chart IconStock chart icon
hide content

ASTS year-to-date chart.

William Blair analyst Louie DiPalma thinks that AST’s goal of 45 satellites in orbit by year-end will likely be hard to hit now. However, he didn’t see Sunday’s events as a total loss for the company.

“AST gained experience integrating its satellite with New Glenn and working with the Blue Origin team,” DiPalma wrote in a Monday note. “This experience will be integral for future missions. The silver lining is that there was only one satellite on board, whereas future New Glenn launches may have as many as eight of AST’s BlueBirds.”

Advertisement

While Clear Street analyst Greg Pendy was still bullish on the stock, reiterating a buy rating after the news, he cut his price target to $115 from $137. That’s still a 34% gain from Friday’s close, but much less than his previously forecasted 60% jump in shares. 

UBS analyst Christopher Schoell said in a note the financial impact on AST will be limited, but added that AST and its share price performance are now linked with Bezos’ Blue Origin. 

“We believe the success of Blue Origin’s New Glenn vehicle … is key to meeting year-end deployment targets/ management’s 2027 revenue goal, and expect the uncertainty to weigh on investor sentiment initially pending greater clarity,” Schoell wrote.

Markets shift and headlines fade, but the core principles of building long-term wealth remain constant. Join us for our third CNBC Pro LIVE, where investors of all backgrounds – from financial professionals to everyday individuals – come together to cut through the noise and gain actionable strategies for smarter, more disciplined investing. No matter where you’re starting from, you’ll leave with clearer thinking, stronger strategies. Enter your email here to get a discount code

Advertisement
Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Source link

Continue Reading

Crypto World

Fermi (FRMI) Stock Plunges 20% as Top Executives Depart Amid Major Restructuring

Published

on

FRMI Stock Card

Key Takeaways

  • Fermi (FRMI) shares plummeted 20% to $5.27 during premarket hours Monday following executive departures
  • CEO Toby Neugebauer resigned; CFO Miles Everson simultaneously exited his role
  • Board members had been evaluating potential CEO replacement for a minimum of three months
  • Company unveiled “Fermi 2.0” initiative, representing a comprehensive overhaul of governance and strategy
  • Evercore analysts reaffirmed Outperform rating with $20 price target for FRMI

Shares of Fermi (FRMI) tumbled 20% on Monday following the data-center company’s announcement that both its chief executive and chief financial officer would be exiting, prompting a comprehensive leadership transformation the firm has branded “Fermi 2.0.”


FRMI Stock Card
Fermi Inc. Common Stock, FRMI

Co-founder and CEO Toby Neugebauer, who established the company with former Texas Governor and U.S. Energy Secretary Rick Perry, resigned with immediate effect. Neugebauer will continue serving as a board member.

According to reports, the board had been deliberating a potential CEO replacement for no less than three months. Several sell-side analysts verified this timeline after participating in a management conference call that followed the public disclosure.

CFO Miles Everson similarly departed from his executive position. Following his resignation, Everson was appointed to the board after a trust controlled by the Neugebauer family executed its board nomination privileges.

The board has initiated an active search for Neugebauer’s successor. Leadership recruitment firm Heidrick & Struggles has been retained, with a committee composed of independent board members overseeing the selection process.

Advertisement

Fermi has additionally established an Office of the CEO to maintain business continuity throughout the transition period. Jacobo Ortiz Blanes, the former COO, and Anna Bofa, previously serving as a Board Advisor, have been promoted to Co-Presidents and will answer to newly designated Chairman Marius Haas.

Haas, who formerly held the position of Lead Independent Board Director, assumed the role of Executive Chairman immediately.

Jeffrey S. Stein, co-founder of Breakpoint Advisory Partners, joined the board as a new member, increasing the board size from five to seven seats.

Executive Transition Linked to Tenant Acquisition Struggles

The management upheaval arrives as Fermi has encountered difficulties securing a major anchor tenant for its Project Matador development in Amarillo, Texas. The massive 7,570-acre property is designed to become the world’s largest data center facility.

Advertisement

Company officials emphasized that the transition would not impair its capacity to deliver electrical infrastructure or execute tenant agreements. Management noted that prospective lease negotiations had actually intensified, with potential clients resuming engagement within 48 hours following the announcement.

Evercore analyst Nicholas Amicucci characterized the transformation as a shift in leadership philosophy while maintaining operational momentum. Evercore maintained its Outperform rating and $20 price target on the stock.

FRMI shares had already declined 18% year-to-date before Monday’s trading session, with the premarket selloff driving the price down to $5.27.

Corporate Headquarters Relocation and Expansion Strategy

As a component of the Fermi 2.0 initiative, company leadership revealed plans to relocate corporate headquarters to Dallas. Additionally, Fermi intends to develop a dedicated corporate office facility at the Project Matador location in Amarillo.

Advertisement

Management stated these strategic moves represent the company’s evolution from startup phase to large-scale enterprise operations.

Texas Tech University System Chancellor Brandon Creighton reaffirmed the university’s ongoing commitment to its collaboration with Fermi America. Negotiations continue regarding potential extensions to certain milestone deadlines contained in the lease agreement as Project Matador progresses.

The company indicated it would name an Interim CFO within the current week.

Advertisement

Source link

Continue Reading

Crypto World

Crypto Funds Post $1.4B Inflows as BTC Almost Touches $78K

Published

on

Crypto Funds Post $1.4B Inflows as BTC Almost Touches $78K

Cryptocurrency investment products logged another week of strong inflows on ceasefire optimism and a Bitcoin price breakout driving investor sentiment.

Crypto exchange-traded products (ETPs) posted $1.4 billion in inflows last week, beating the prior week’s $1.1 billion and marking the second-largest weekly inflows since January, CoinShares reported on Monday.

Following the three-week inflow streak totaling $2.7 billion, crypto ETPs now have net year-to-date inflows of around $3.8 billion, with assets under management (AUM) at $154.8 billion — the highest level since early February after dipping to as low as $128 billion in March.

The uptick in crypto funds has likely been driven by a recovery in risk appetite on US-Iran ceasefire extension talks, CoinShares head of research James Butterfill said.

Advertisement

The sentiment was further reinforced by Bitcoin (BTC) nearly touching $78,000 on Friday, according to CoinGecko.

Ether funds turn positive year to date

Bitcoin led last week’s ETP gains by a significant margin, with inflows totaling $1.12 billion. The gains brought year-to-date inflows to $3 billion, with AUM at $123 billion.

The majority of gains were contributed by US spot Bitcoin exchange-traded funds (ETFs), which posted $1 billion in inflows last week.

Ether (ETH) investment products also picked up with $328 million inflows in its strongest week since January, finally lifting the ETPs into green year-to-date with $197 million inflows.

Advertisement
Crypto ETP flows by asset (in millions of US dollars). Source: CoinShares

Still, altcoin ETPs, including XRP (XRP) and Solana (SOL), recorded negative flows, with XRP leading the outflows at $56 million. Solana recorded minor outflows of $2.3 million.

Short-Bitcoin products saw a modest $1.4 million of inflows, suggesting residual but limited hedging demand.

Regionally, the US dominated the surge with $1.5 billion of inflows, while Germany ranked second with just $28 million of inflows. Switzerland saw the largest redemptions last week, with outflows totaling $138 million.

Addressing the implications of recent economic data, CoinShares’ Butterfill suggested that March’s Consumer Price Index (CPI) increase of 3.3% appears to have been largely looked through by markets, with core CPI at 2.6% seen as relatively contained, pointing to inflation pressures that remain more supply-driven than broad-based.

Related: Bitcoin erases weekend gains as US-Iran ceasefire faces pressure

Advertisement

Nomura’s Laser Digital echoed that view, telling Cointelegraph that backward-looking macro indicators currently offer only limited insight while conflicts continue to affect supply chains and spending patterns.

“Delayed indicators like CPI and PMIs mostly reflect past conditions rather than the current situation,” Laser Digital said, adding that the outlook remains “cautiously optimistic.”

Bitcoin Price, Iran, CoinShares, Ethereum ETF, Bitcoin ETF, ETF
The Crypto Fear & Greed Index. Source: Alternative.me

Sentiment improvement was also reflected in the Crypto Fear & Greed Index, which moved from “extreme fear” to “fear,” with the score rising above 29 on Monday for the first time since Jan. 29.

Magazine: Bitcoin ‘on track’ for $90K, ETFs pull in nearly $1B: Hodler’s Digest, April 12 – 18