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Brazil’s self-custodial stablecoin ban to catalyze decentralization

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Brazil’s central bank, Banco Central do Brasil (BCB), has proposed a ban on transferring stablecoins, such as Tether’s USDT, to self-custodial wallets like MetaMask or Trezor. This initiative, announced on November 29, 2024, is currently open for public consultation until February 28, 2025. The proposal aims to prevent stablecoin transactions from occurring outside regulated Brazilian trading platforms, thereby enhancing oversight of the foreign exchange market and regulating Brazilian capital abroad.

Industry experts express skepticism about the enforceability of such a ban. Lucien Bourdon, a Bitcoin analyst at Trezor, noted that while governments can regulate centralized exchanges, controlling peer-to-peer (P2P) transactions and decentralized platforms presents significant challenges. He suggested that if the ban is implemented, users may migrate toward decentralized platforms or P2P solutions to continue their activities.

Carol Souza, co-founder of Area Bitcoin, highlighted that Brazil has been a pioneer in regulation, enforcing strict Know Your Customer (KYC) rules and creating Pix, a system introduced in response to the rising popularity of Bitcoin. She suggested that BCB’s proposal will likely become a reality in 2025, as the central bank appears to be preparing regulations to prevent individuals from engaging in P2P stablecoin transactions.

The proposed restrictions come amid a significant depreciation of the Brazilian real against the U.S. dollar, leading citizens to increasingly hedge against their national currency by purchasing U.S. dollar-pegged stablecoins. Brazil ranks as the second-largest market globally for stablecoin transactions, with such activities accounting for 59.8% of its entire crypto market. Despite the central bank’s intentions, the effectiveness of enforcing a ban on self-custodial stablecoin transactions remains uncertain, with potential implications for the broader adoption and decentralization of cryptocurrency in the country.

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US lawmakers advance anti-CBDC bill

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U.S. lawmakers have voted to advance a bill aimed at blocking the Federal Reserve from issuing a central bank digital currency (CBDC), marking a major step in the political pushback against the development of a digital dollar.

The bill, which passed through the House Financial Services Committee, would prohibit the Fed from directly offering accounts or issuing a CBDC to individuals, citing concerns over surveillance, privacy, and government overreach.

Supporters of the legislation argue that a digital dollar could pose significant risks to civil liberties, enabling real-time tracking of consumer transactions and expanding federal control over personal finances. They view the bill as a safeguard against what they describe as a “surveillance-style” monetary system.

Opponents of the bill, however, argue that restricting CBDC development could hinder U.S. innovation and global competitiveness in the evolving digital financial landscape.

The legislation now moves closer to a potential floor vote in Congress. Its progress underscores growing ideological divisions over the future of money in the United States, with CBDCs emerging as a new front in the broader debate over digital governance, financial freedom, and the role of government in the digital age.

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Gemini to open Miami office after judge stays SEC case

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Crypto exchange Gemini has opened a new office in Miami, reinforcing its commitment to expanding operations despite pausing its plans for an initial public offering (IPO) amid a continuing legal battle with the U.S. Securities and Exchange Commission (SEC).

The Miami office signals the company’s long-term vision for growth in key U.S. markets, even as regulatory uncertainty clouds the broader crypto landscape. The expansion comes at a time when Gemini is facing heightened scrutiny from the SEC over its Earn program, which the regulator alleges involved unregistered securities.

While the IPO remains on hold, Gemini continues to strengthen its infrastructure and team, focusing on user growth, compliance, and regional outreach. The Miami hub is expected to play a strategic role in those efforts, leveraging the city’s growing status as a U.S. crypto hotspot.

Co-founders Cameron and Tyler Winklevoss remain vocal about the need for clear regulatory frameworks and have emphasized that Gemini will continue to fight for fair treatment while building responsibly in the U.S. and abroad.

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Coinbase Institutional files for XRP futures trading with CFTC

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Coinbase Institutional has officially filed with the U.S. Commodity Futures Trading Commission (CFTC) to offer XRP futures trading, marking a significant move toward expanding institutional access to Ripple’s native token.

The filing, submitted through Coinbase Derivatives, signals the exchange’s intent to list XRP futures contracts in a regulated environment. If approved, it would allow institutional investors to gain exposure to XRP through derivative products, a key step in broadening the token’s presence in traditional financial markets.

This development comes amid a gradually improving regulatory climate for XRP, following a partial legal victory for Ripple in its ongoing case with the U.S. Securities and Exchange Commission (SEC). The outcome gave XRP a degree of legal clarity, opening the door for exchanges and financial institutions to re-engage with the asset.

Coinbase’s push to expand its derivatives offerings also aligns with its strategy to build a more robust institutional platform. Approval from the CFTC would position the exchange to capitalize on growing demand for regulated crypto investment vehicles.

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