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Circle CEO ‘strongly in favor’ of Trump repealing SAB 121

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Jeremy Allaire, CEO of Circle, has voiced strong support for the Trump administration’s reported plans to repeal Staff Accounting Bulletin 121 (SAB 121), a controversial regulatory guideline introduced during the Biden administration. The guideline mandates stringent accounting rules for firms holding crypto assets on behalf of customers, often inflating their balance sheets and limiting financial flexibility. Allaire argued that repealing SAB 121 could unleash innovation and improve institutional trust in the crypto industry, removing barriers for businesses offering digital asset services.

SAB 121, implemented by the U.S. Securities and Exchange Commission (SEC) in 2022, required companies to list crypto custody assets and associated liabilities on their balance sheets. Critics have long contended that the policy imposes undue financial burdens on firms, discouraging them from entering or expanding within the crypto space. Allaire emphasized that dismantling the regulation would pave the way for broader adoption of blockchain technologies by creating a more business-friendly environment.

The potential repeal has drawn mixed reactions within the financial sector. Proponents, including several major blockchain firms, believe it would encourage banks and fintech companies to participate more actively in crypto markets. On the other hand, detractors caution that the removal of SAB 121 could weaken protections for consumers, leaving them vulnerable in the event of insolvency or mismanagement by custodians.

As the Trump administration moves forward with its proposed reforms, industry experts are closely watching to gauge their impact on the rapidly evolving crypto landscape. For Circle and other digital asset firms, the rollback of SAB 121 could signify a turning point in U.S. regulatory policy, signaling a shift toward fostering innovation and competitiveness in the global crypto market.

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7-Eleven South Korea to accept CBDC payments in national pilot program

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7-Eleven is set to participate in the testing phase of a central bank digital currency (CBDC) initiative, running from April to June. The retail giant’s involvement highlights the growing push for digital currency integration in everyday transactions.

The pilot program will assess the feasibility of CBDC payments at 7-Eleven stores, allowing customers to make purchases using the digital currency. The initiative is part of a broader effort to explore the real-world application of CBDCs in retail environments, potentially shaping future payment systems.

As central banks worldwide accelerate their digital currency research, private sector collaboration is seen as crucial for widespread adoption. If successful, 7-Eleven’s participation could pave the way for broader CBDC usage across retail and commercial sectors.

The outcome of the testing phase will provide valuable insights into consumer adoption, transaction efficiency, and potential regulatory considerations, influencing how CBDCs are integrated into mainstream financial systems.

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SEC and Gemini ask to pause lawsuit to explore ‘potential resolution’

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The U.S. Securities and Exchange Commission (SEC) and crypto exchange Gemini have agreed to pause legal proceedings as both sides explore a potential resolution to their ongoing lawsuit. The move signals a possible settlement in the high-profile case, which centers around Gemini’s now-defunct Earn program.

The SEC initially sued Gemini, alleging that the Earn program—designed to offer users yield on crypto deposits—operated as an unregistered securities offering. Gemini has pushed back against the claims, arguing that its operations complied with regulatory standards.

By pausing litigation, both parties may be looking for a compromise that could set a precedent for crypto lending products in the U.S. A settlement could also provide regulatory clarity for similar platforms navigating SEC scrutiny.

While the outcome remains uncertain, the crypto industry is closely watching the case, as its resolution could impact future enforcement actions and the broader regulatory approach toward digital asset lending services.

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GameStop finishes $1.5B raise to add Bitcoin to its balance sheet

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GameStop has successfully completed a debt offering, raising capital that may be used to acquire Bitcoin, signaling the company’s deeper foray into digital assets. The move aligns with its broader strategy to diversify beyond traditional retail operations and into emerging financial technologies.

While GameStop has not confirmed the exact allocation of the funds, market speculation suggests that a portion could be used to buy Bitcoin, following in the footsteps of companies like MicroStrategy. The potential investment would reinforce GameStop’s ongoing pivot toward blockchain and digital assets, an effort that began with its NFT marketplace and crypto-related initiatives.

Analysts see this development as part of a growing trend of corporations exploring Bitcoin as a reserve asset amid concerns over inflation and monetary policy. If GameStop proceeds with the acquisition, it could further validate Bitcoin’s role as a strategic investment for publicly traded companies.

The company’s board will ultimately decide how the newly raised capital is deployed. Investors and the broader crypto market are watching closely for any official announcements regarding GameStop’s Bitcoin strategy.

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