The Bank of England governor publicly warns that new-generation AI models pose systemic threats to global financial stability. This marks the first time a major central bank has elevated AI risks to the financial stability level.
Prediction market platform Kalshi announced a permanent ban of former Republican Congressman George Santos over alleged rule violations in trading on the platform, highlighting regulatory gray areas.
The Financial Accounting Standards Board (FASB) has proposed treating qualifying stablecoins as ‘cash equivalents,’ a move that could fundamentally change how companies account for crypto holdings and accelerate stablecoin adoption in mainstream finance.
Tether, the world’s largest stablecoin issuer, announced it has completed its first comprehensive financial audit by KPMG, receiving an unqualified opinion. The milestone marks a key step in compliance for the long-questioned USDT issuer, but also sparks new debate about audit transparency and industry regulation standards.
Core Summary Major U.S. banking industry groups have written to the Senate urging stronger regulatory provisions in the “Clarity for Payment Stablecoins Act.” These groups warn that the current bill version could allow stablecoins to functionally substitute for bank deposits, increasing the risk of deposit flight from community banks and posing potential threats to the traditional banking system. Event Details According to The Block, multiple banking organizations including the American Bankers Association sent warning letters to the Senate. They pointed out that if stablecoin issuers can obtain bank-like status without being subject to equivalent regulatory constraints, it will create an unfair competitive environment. ...
The IMF warns that tokenization technology, while improving efficiency, also increases financial system vulnerability to sudden shocks. The report calls for enhanced regulatory coordination.
Summary Taiwan has passed a comprehensive cryptocurrency regulation law requiring all digital asset platforms to obtain licenses from the Financial Supervisory Commission (FSC) before operating. The legislation introduces reserve requirements and strict penalties for non-compliance, positioning Taiwan as one of the most rigorously regulated crypto jurisdictions in Asia. Details The bill, passed on July 1 and sent for presidential approval, rests on three pillars: mandatory licensing for all exchanges, custodians, and wallet providers; reserve mandates requiring platforms to hold a percentage of client assets; and severe penalties including fines and criminal liability for unlicensed operators. ...
Summary The Bank for International Settlements argued in its annual report that stablecoins still fall short of money on singleness, elasticity, and integrity, warning of currency substitution risks in emerging markets. Details According to The Block, the report — regarded as a bellwether for global central banks — notes that while stablecoins have achieved significant growth in payments and transfers, their underlying mechanisms are insufficient to guarantee absolute value stability. The report specifically flagged the rapid penetration of stablecoins in emerging market economies, warning this could undermine local central banks’ monetary policy transmission. ...
Major Japanese financial services group SBI Holdings announced the acquisition of crypto exchange Bitbank for $289 million, with the deal expected to close in October 2026, marking traditional finance’s accelerating entry into digital assets.
Core Summary According to Politico and Bloomberg, President Trump has selected James McDonald to serve as the US Attorney for the Southern District of New York. McDonald previously served as the enforcement chief at the Commodity Futures Trading Commission (CFTC) and was recently a member of Trump’s legal defense team. The SDNY is considered the most influential federal prosecutorial office in the United States, overseeing Wall Street financial crimes. Details McDonald’s nomination signals Trump’s approach to Wall Street regulation. As former CFTC enforcement chief, he brings extensive experience in financial regulation, having led major enforcement actions against financial institutions. ...