SEC acknowledges Grayscale’s XRP and DOGE ETF filings

Published

3 months ago

February 14, 2025

The Securities and Exchange Commission will likely face a mid-October deadline to decide whether Grayscale’s XRP and Dogecoin ETFs get off the ground.

Coinbase fires compromised agents in India— Report

Published

2 hours ago

May 15, 2025

Coinbase has reportedly fired a group of customer support agents following their alleged involvement in social engineering attacks on users. The contracted agents were based in India.

According to a May 15 Fortune interview, Coinbase’s chief security officer, Philip Martin, said the company flagged customer support contractors who allowed scammers access to user data, suggesting they could be Indian nationals. The CSO’s comments came after some crypto users reeled from attempted phishing attacks using their Coinbase data, which the exchange estimated could cost them between $180 million and $400 million in remediation and reimbursement.

Qiao Wang, a core contributor to Alliance DAO, said in a May 15 X post that he may have been a victim of one of these attacks. He said a scammer notified him his Coinbase account had been compromised, asked him to verify his personal information, to which the criminals likely had access through the compromised agents, and requested he withdraw all his funds to a “Coinbase self-custodial wallet.”

“I called them out at the end of the call telling them they need to step up their game […],” said Wang on X. “They told me that had made $7m that day.”

Cointelegraph reached out to Martin and Coinbase for comments, but had not received responses at the time of publication.

This is a developing story, and further information will be added as it becomes available.

Coin Market

Canada lags with stablecoin approach, but there’s room to catch up

Published

2 hours ago

May 15, 2025

The slow adoption of stablecoins in Canada has some local crypto industry observers concerned that the country is falling behind.

The Canadian Securities Administrators (CSA) classified stablecoins as “securities and/or derivatives” in December 2022 after the FTX debacle that shook markets and turned many lawmakers against the crypto industry.

Regulating stablecoins as a security has seen few local stablecoin issuers arise, but in the United States and the European Union, softening regulations have seen significant growth in the stablecoin market. This makes Canada, observers say, less competitive with other jurisdictions.

Of particular concern is the perceived gap in peer-to-peer (P2P) payments in Canada, which stablecoins are uniquely qualified to fill.

Stablecoins globally have grown significantly over the last five years. Source: DefiLlama

Local law constrains stablecoin growth and threatens dollar

In 2022, as the crypto market reeled from the collapse of FTX and the implosion of the Terra stablecoin system, regulators worldwide began to look more critically at the crypto space.

In Canada, the CSA updated regulations for crypto exchanges and brought stablecoins under its purview, classifying them as securities/derivatives. This hasn’t been a popular decision with Canada’s crypto industry.

Morva Rohani, founding managing director of the Canadian Web3 Council, told Cointelegraph that the CSA’s case-by-case basis for considering stablecoin issuers and the lack of a federal framework make for a “patchwork” regulatory regime.

“Canada’s reliance on securities law to regulate payment stablecoins introduces significant legal and operational uncertainty,” she said.

Tanim Rasul, chief operating officer of Canadian crypto exchange NDAX, said that the CSA “got it wrong,” stating that other regulatory frameworks, like the EU’s Markets in Crypto-Assets (MiCA) law, were more appropriate.

“I would just say, look at MiCA, look at the way they’re approaching stablecoins. It’s a payment instrument. It should be regulated as such,” he told a crowd at the Blockchain Futurist Conference in Toronto on May 13.

It’s not just the EU. Singapore and the UAE have also introduced regulatory frameworks for stablecoins, and US senators are optimistic they will pass a stablecoin law by May 26.

Rohani said Canada is “out of step with leading global jurisdictions […] which have adopted tailored, prudential frameworks that recognize stablecoins as payment instruments.”

This lack of alignment with other, more pro-stablecoin jurisdictions could have negative effects for the Canadian dollar (CAD), some worry.

Som Seif, founder of Canadian investment firm Purpose Financial, said that the proliferation of other major stablecoins, mostly denominated in the US dollar, could threaten the use of the loonie (a nickname for the Canadian dollar) at home.

“If Canada does not create the regulatory framework and environment that encourages the development of CAD stablecoins, consumers and businesses will default to using USD-pegged alternatives, eroding the relevance of CAD in global markets,” he said.

Stablecoins provide cheaper P2P payments but reputation is also a roadblock

Members of the Canadian crypto industry have stated that stablecoins have a role to play in the country as well, given the purported lack of P2P payment networks available in the country.

Speaking to Cointelegraph on May 13, Coinbase Canada CEO Lucas Matheson said, “It’s really important that we have a stablecoin for Canadians.” He said that the only options currently open were wire transfers, which “cost $45 and take 45 minutes of paperwork.”

Rohani said that Interac e-Transfer, a Canadian funds transfer service, “remains the primary domestic P2P rail, operating through banks and credit unions.”

Canada does have apps like PayPal and Wise, which support international P2P transfers, but those often come with high commissions and slow settlement times compared to stablecoins.

Rohani said that while some crypto platforms allow for P2P transfers, they’re not widely used due to a lack of integration into mainstream financial services.

Demand for more and different digital payment methods is growing in Canada, according to the 2024 digital payments report from Payments Canada, the owner and operator of Canada’s payment clearing and settlement infrastructure.

But that demand may not translate directly into stablecoins. Crypto’s “journey towards financial integration among Canadians remains a distant prospect,” the report reads. Some 91% of Canadians have never used crypto as a payment.

Ease of use and security were top priorities for international payment users. Source: Payments Canada

Payments Canada attributes the lack of interest to the assets being perceived as the “least secure payment method among Canadians compared to alternatives such as cash, credit cards, cheques, wire transfers and PayPal.”

Even in the context of a central bank digital currency, which the crypto industry generally regards as a less favorable option to private, fiat-denominated stablecoins, interest just isn’t there. The survey found that 85% of respondents “did not envision themselves using a digital Canadian dollar and preferred their existing payment methods.”

Is PM Carney pro-crypto?

If more tailor-made regulations could integrate stablecoins with the mainstream payment options Canadians are comfortable with, it would still take a concerted effort from policymakers in Ottawa, where the Liberals have just won the federal elections.

The crypto industry had cause for doubt. Liberal Prime Minister Mark Carney has previously expressed skepticism about cryptocurrency. In a speech as Governor of the Bank of England, he said they had failed as money.

Still, he acknowledged stablecoins have a role to play in retail and wholesale payments. He said in 2021 that stablecoins should have access to central bank balance sheets — but only if strong protections were in place.

“There’s been two systemic crises in money funds in little more than a decade […] In baseball, it’s three strikes and you’re out. In cricket, it’s only the equivalent of one. For systemic payment systems, one is too many,” Carney stated.

Kohani said, “With Mark Carney at the helm of the Liberal Party, we anticipate a pragmatic but regulation-first approach to crypto and stablecoins.”

While his previous openness toward stablecoins suggests he’s open to the technology, he also “emphasizes the need for regulation, oversight and safeguards.”

Another Liberal term, per Kohani, will likely mean the CSA continues to lead enforcement but could result in broader policy work, including a framework on stablecoins, “particularly if positioned as a tool for payments modernization and maintaining the relevance of the Canadian dollar.”

Magazine: Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee

Coin Market

What the 10-year Treasury yield means for crypto yields and stablecoins

Published

3 hours ago

May 15, 2025

Understanding the 10-year Treasury yield: Definition and importance

The 10-year Treasury yield is the interest rate that the US government pays to borrow money for 10 years.

When the government needs cash, it issues bonds called Treasury notes, and the 10-year note is one of the most watched. The “yield” is the annual return you’d get if you bought that bond and held it until it matures. It’s expressed as a percentage, like 4% or 5%.

Think of it as the government saying, “Hey, lend me $1,000, and I’ll pay you back in 10 years with some interest.” That interest rate and the yield move up or down based on demand for the bonds, inflation expectations and the overall economy. Because US Treasurys are considered safe (the government isn’t likely to default), the 10-year yield is a benchmark for “risk-free” returns in finance.

Why does this matter for crypto? Well, crypto yields and stablecoins are part of the broader financial world, and the 10-year yield influences investor behavior, which ripples into the crypto market. Let’s dive into how

Did you know? The crypto market has a Fear & Greed Index that gauges investor sentiment. When the 10-year Treasury yield spikes, it often triggers “fear” as investors worry about tighter money and less crypto speculation.

Impact of the 10-year Treasury yield on global financial markets

The 10-year Treasury yield isn’t just a US thing — it’s a heavyweight in global financial markets, influencing everything from stocks to currencies to emerging economies.

Since the US dollar is the world’s reserve currency and Treasurys are a global safe haven, changes in the 10-year yield send shockwaves worldwide. Here’s how:

Stock markets: Higher Treasury yields can pull money out of stocks, especially growth stocks like tech companies, because investors can get better returns from bonds. In 2021, when yields spiked, tech-heavy indexes like the Nasdaq took a hit as investors shifted to safer assets. This shift can set the stage for how investors approach riskier assets like crypto.Borrowing costs globally: The 10-year yield influences interest rates worldwide. When it rises, borrowing costs for companies and governments increase, which can slow economic growth. For example, in 2022, rising yields contributed to tighter financial conditions, impacting everything from corporate loans in Europe to mortgage rates in Asia.Currency markets: A higher 10-year yield strengthens the US dollar, as investors flock to dollar-denominated assets. A stronger dollar can make cryptocurrencies, which are often priced in dollars, more expensive for international investors, potentially dampening demand. It also puts pressure on emerging market currencies, as their debt (often dollar-denominated) becomes costlier to repay.Emerging markets: Countries with weaker economies rely on cheap borrowing. When Treasury yields rise, capital flows out of riskier emerging markets into US bonds, causing volatility in their stock and bond markets. This can spill over into crypto, as investors in these regions may sell crypto assets to cover losses elsewhere.Inflation and monetary policy: The 10-year yield is a barometer for inflation expectations. If yields rise because investors expect higher inflation, central banks like the Federal Reserve may raise interest rates, tightening global liquidity. This can reduce speculative investment in assets like crypto, as seen in 2022 when aggressive rate hikes cooled markets.

For crypto investors, this global impact sets the context. A rising 10-year yield might signal a tougher environment for crypto prices and yields, especially if global markets get shaky. Conversely, low yields often fuel risk-taking, boosting speculative assets like cryptocurrencies.

Rising Treasury yields: Are safer returns stealing crypto’s yield appeal in 2025?

The 10-year Treasury yield, a critical indicator of global financial health, has shown notable volatility in 2025. As of May 9, 2025, the yield stands at approximately 4.37%-4.39%.

The yield’s movement is driven by factors such as trade tensions, inflation expectations and Fed policy, with recent rate cuts not lowering yields as expected, diverging from historical trends.

In the crypto space, yields are earned through activities like staking, lending and liquidity provision, often offering returns of 5%-10% or higher. However, the rising 10-year Treasury yield poses challenges.

Research suggests that higher yields on safe assets can reduce demand for riskier crypto yields, as investors may prefer the stability of Treasurys. This competition for capital can lead to lower participation in crypto lending platforms, potentially pushing yields up to attract users, but overall market activity may decline.

It is because many crypto platforms borrow money to operate, and their borrowing costs are tied to broader interest rates, which the 10-year yield influences. If rates rise, these platforms might pass on higher costs to users, affecting the yields you earn.

How Treasury yields impact stablecoins

Stablecoins like Tether’s USDt (USDT) and USDC (USDC) are closely tied to traditional finance because their value is often backed by assets like cash, bonds or — you guessed it — Treasury notes.

Here’s how the 10-year yield impacts stablecoins:

Backing assets: Many stablecoins, like USDC, hold US Treasurys in their reserves to maintain their $1 peg. Higher Treasury yields, now at 4.39%, mean that stablecoin reserves earn more income, which could theoretically be passed on to users as yields. Regulatory complexity: Regulatory frameworks in some countries complicate this. In the European Union, the Markets in Crypto-Assets (MiCA) regulation prohibits stablecoin issuers and crypto-asset service providers (CASPs) from offering interest to discourage their use as stores of value, though users can still generate yields through decentralized finance (DeFi) platforms.

Opportunity cost: If the 10-year yield is high, holding stablecoins (which often earn lower yields than riskier crypto) might seem less appealing compared to buying Treasurys directly. Investors might move money out of stablecoins, reducing the capital available for lending and potentially lowering stablecoin yields.Market sentiment: Rising Treasury yields often signal tighter monetary policy (like higher interest rates from the Fed), which can spook crypto markets. In 2023, for instance, when yields hit multi-year highs, crypto prices, including stablecoin-related tokens, felt the pressure as investors grew cautious. This can indirectly affect the yields you earn on stablecoins, as platforms adjust to market conditions.DeFi dynamics: In decentralized finance (DeFi), stablecoins are the backbone of lending and trading. If Treasury yields rise and traditional finance looks more attractive, DeFi platforms might see less activity, which could lower the yields on stablecoin pools. On the flip side, some DeFi protocols might boost yields to keep users engaged.

Notably, there is a growing push for regulations that allow stablecoins to share yields with users, particularly in jurisdictions like the UK and US, where legislative efforts are ongoing. This debate is crucial, as allowing yield sharing could enhance stablecoin adoption, leveraging higher Treasury income, but regulatory clarity is needed to avoid legal risks.

Did you know? Liechtenstein was one of the first countries to pass a full-fledged blockchain law — the “Blockchain Act” — in 2020.

USDC vs. US Treasurys: Where should you park your money?

USDC staking offers higher but variable yields with moderate risk, while US Treasurys provide stable, low-risk returns backed by the government.

When users stake USDC — by lending it on platforms like Aave or Coinbase — they earn variable returns, typically between 4% and 7% APY, depending on demand and platform risk.

US Treasurys, especially 10-year notes, offer a fixed return; the yield stands at approximately 4.37%-4.39%. These securities are backed by the US government, making them one of the safest investments.

While USDC can offer higher yields, it comes with added risks like smart contract bugs, platform failures and regulatory changes. Treasurys, though safer, offer limited upside.

Implications of rising Treasury yields for crypto investors

For crypto investors, higher Treasury yields may reduce risk appetite, but tokenized Treasurys provide a secure alternative.

If you’re thinking about staking your Ether (ETH) or lending USDC, knowing what’s happening with Treasury yields can give you a heads-up on whether yields might rise, fall or come with extra risks.

For example:

If yields are rising, it might be a sign that crypto yields could get more competitive, but it could also mean global markets are getting jittery. You might want to stick to stablecoins or safer platforms.If yields are low, investors might pour money into crypto, boosting yields but also increasing volatility. This could be a chance to earn more, but you’ll need to watch for risks.

Plus, if you’re using stablecoins to park your cash or earn a little extra, the 10-year yield can hint at whether those yields will stay attractive or if you might find better returns elsewhere. And with its global reach, the yield can signal broader economic shifts that might affect your crypto strategy.

Also, stablecoin holders may benefit from higher reserve income if regulations evolve to allow yield sharing, particularly in the US, though EU restrictions push yield generation to DeFi. Alternatively, traditional investors can explore tokenized Treasurys for blockchain-based Treasury exposure, potentially integrating them into broader portfolios as regulatory clarity emerges.

A notable development in 2025 is the rise of tokenized Treasurys, digital representations of US Treasury bonds on blockchains. As of May 4, 2025, the total value of tokenized Treasurys has reached $6.5 billion, with an average yield to maturity of 4.13%, according to analytics from RWA.xyz. This trend offers crypto investors a way to earn yields comparable to traditional bonds, potentially mitigating the impact of rising Treasury yields on crypto markets.

Moreover, the emergence of tokenized Treasurys signals a blurring of lines between traditional finance and decentralized ecosystems. These blockchain-native representations of government debt instruments not only offer yield stability but also reflect a broader trend: the integration of real-world assets (RWAs) into crypto markets. This development has the potential to reshape risk management practices, attract more conservative capital, and accelerate regulatory engagement with digital assets.