FDIC green lights crypto activities | #327
Also, USBC in DC
Our weekly newsletter covers news, industry perspectives, and updates from the USBC ecosystem. Check out our last report here.
This week:
FDIC green lights crypto activities
USBC in DC
WATCH: Greg Kidd’s town hall in Nevada
Ecosystem spotlight: Hard Yaka invests in Rain
Stuff happens
1. FDIC green lights crypto activities
In an expected about-face, the FDIC will now allow member banks to engage in crypto activities such as custody, stablecoin issuance, and blockchain payments without first having to ask for permission. From the official announcement:
On April 7, 2022, the FDIC issued a Financial Institution Letter (FIL-16-2022) titled Notification of Engaging in Crypto-Related Activities, which established a prior notification requirement for FDIC-supervised institutions that wish to engage in crypto-related activities. The FDIC is rescinding FIL-16-2022 and providing new guidance to clarify that FDIC-supervised institutions may engage in permissible crypto-related activities without receiving prior FDIC approval.
More specifically:
Crypto-related activities include, but are not limited to, acting as crypto-asset custodians; maintaining stablecoin reserves; issuing crypto and other digital assets; acting as market makers or exchange or redemption agents; participating in blockchain- and distributed ledger-based settlement or payment systems, including performing node functions; as well as related activities such as finder activities and lending.
The FDIC has now joined the OCC in creating a more innovation-friendly environment for the banking system in the U.S.—the Federal Reserve is now the last one standing.
2. USBC in DC
Last Wednesday, the Capital Turnaround in Washington DC became the center of the universe for money and power—a mix of digital asset industry titans and around 40 members of Congress.
The future of digital dollars was on everyone’s mind. Donald Trump Jr., Custodia Bank’s Caitlin Long, and representatives for the state of Wyoming all discussed their plans for issuing a stablecoin.
USBC co-founder Greg Kidd and the team were, of course, in attendance. Greg was on a panel called The Future of Banking, where he shared his vision for a tokenized bank deposit—the convergence of banking, blockchain, and digital identity. Imagine a universally accessible, FDIC insured, and, most of all, compliant digital dollar.
That’s USBC.
We’ll share the video of that panel once it becomes available.
Relevant:
Trump Family Venture Plunges Deeper Into Crypto With New ‘Stablecoin’
Wyoming Governor Expects State to Issue Its Own Stablecoin by July
Via Anya Rekhtman—Custodia Bank and Vantage Bank Issue America’s First Bank-Issued Stablecoin On A Permissionless Blockchain
3. WATCH: Greg Kidd’s town hall in Nevada
Two weeks ago, Greg, who ran for Congress in Nevada’s second district last year, held a Town Hall in Reno, where he spoke on the Trump administration’s approach to tariffs and budget cuts.
Here’s This is Reno:
“We can’t cut our way to greatness,” [Greg Kidd] said.
Kidd’s town hall was held in the wake of hundreds of people demonstrating outside of Amodei’s Reno office two weekends in a row. They are demanding Amodei hold a town hall meeting with Nevada citizens.
Kate Marshall, Nevada’s former lieutenant governor and potential candidate for Reno mayor, spoke at the event and urged people not to panic, calling the current political climate “a marathon, not a sprint.”
A previous USAID worker, who was fired by the Trump administration, spoke about losing her job due to orders by President Donald Trump.
Another woman, Pam, whose child has a disability, spoke about how cuts to Social Security and Medicaid could affect her family. “Taking care of my son is my full-time job,” she said. “There aren’t other services that can do this.”
4. Ecosystem spotlight: Hard Yaka invests in Rain
Digital asset Visa card issuer Rain has raised $24.5 million in its latest funding round led by Northwest Venture Partners. Other investors included Galaxy Digital, Coinbase Ventures, Lightspeed, and Hard Yaka.
Rain’s credit and debit card products allow people to conveniently spend digital dollars anywhere Visa is accepted and withdraw cash from ATMs around the world.
Here’s The Block (via Jun Hiraga):
"As stablecoin adoption continues to grow — powering diverse use cases such as cross-border payments, remittances, and dollar-based savings — so too does the demand for frictionless spending of stablecoins in everyday transactions," the company said in its announcement. "Rain is prepared to meet that demand. After 15x revenue growth in just 12 months and payments now processed in 100+ countries."
While stablecoin supply and transfer volumes continue to grow, that also appears to be a renewed push to make it easier for crypto holders to spend their digital assets easily on everyday goods and services. Last year, stablecoin transfers surpassed the combined transaction volume of Visa and Mastercard.
…
"Powered by our Visa Principal Membership and our unique blockchain infrastructure, we’re accelerating the global rollout of stablecoin-enabled card issuance, unlocking faster, more efficient payments," Rain said on Monday.