In rising global inflation, crypto (esp. Bitcoin) serves as a hedge due to fixed supply, attracting inflows like gold. However, it amplifies risk attributes via volatility and ties to equities. Falling inflation boosts it as a speculative risk asset via loose policy/liquidity. Overall, it's more risk than haven amid uncertainty.
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CBDC progress is a mixed bag for crypto: bearish short-term due to regulatory competition and negative stock impacts from positive CBDC sentiment , but bullish long-term via legitimizing digital assets, blockchain adoption, and interoperability (e.g., pilots in China/India boost crypto utility) . Overall, net positive as CBDCs normalize the space without replacing decentralized innovation.
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US banks access crypto custody and trading via OCC approvals: National banks/federal savings associations can provide custody services, execute buys/sells on customer-held assets, and outsource to third-party sub-custodians with robust risk management. No prior regulatory nod needed, per Interpretive Letter 1184 (May 2025). FDIC/Fed also eased restrictions for safe, compliant engagement.
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