- Buy Crypto
- Markets
Futures- Spot
- Copy Trade
Earn- More
Federal Reserve Chair Powell recently commented on cryptocurrency, what bullish signals did he give to the industry?
On April 17, 2025, Federal Reserve Chair Powell delivered a highly anticipated speech at the Chicago Economic Club. Although the crypto market did not receive explicit good news such as a rate cut, Powell clearly stated that there is "room for relaxation" in cryptocurrency regulation for banking institutions. He acknowledged the mainstream trend of cryptocurrencies in recent years, specifically emphasizing the need to establish a clear regulatory framework for stablecoins, sending a positive signal supporting innovation and development in the crypto industry.
Shift in Banking Regulation Direction
Powell pointed out that there is "room for relaxation" in the current cryptocurrency regulatory policies for banking institutions. While affirming the mainstream trend of the cryptocurrency market in recent years, he particularly emphasized the need to establish a clear regulatory framework for stablecoins. This statement, while emphasizing the maintenance of financial security and stability, sends a policy signal supporting industry innovation and development. He acknowledged that regulatory agencies had been cautious due to the "successive scams and frauds" in the cryptocurrency field but noted that the current market environment has fundamentally changed.
On March 7 of this year, during the first-ever White House cryptocurrency summit, the Office of the Comptroller of the Currency (OCC) issued a series of interpretive letters, marking a substantive shift in the U.S.'s regulatory stance on digital assets.
For years, the U.S. banking system has been resistant to cryptocurrencies, often outright refusing to serve blockchain companies, earning itself the nickname of "Operation Chokepoint 2.0." The latest guidance issued by the OCC eliminates key obstacles, allowing national banks to engage more freely in digital asset activities while maintaining a strict risk management framework.
OCC Relaxes Crypto Regulation to Embrace Financial Innovation
As an independent bureau within the U.S. Department of the Treasury, the OCC is primarily responsible for regulating national banks to ensure their safe and sound operation. Historically, the OCC has maintained a cautious stance on bank involvement in cryptocurrency-related activities, requiring additional approvals and strict scrutiny. However, under Acting Comptroller Hood, who took office in early 2025, the OCC has adopted a more supportive attitude toward innovation, aligning with broader efforts to mainstream digital assets.
On March 7, 2025, the OCC officially announced that banks can now offer services such as cryptocurrency custody, stablecoin reserves, and participation in blockchain nodes without the need for special approvals. This overturns the restrictive guidance from the Biden administration era, which required banks to consult with regulators before engaging in crypto-related activities.
The OCC's new stance essentially considers cryptocurrency services as part of traditional banking activities, eliminating additional regulatory barriers that previously hindered financial institutions from entering this field. "Digital assets should and must also become part of the U.S. economy," Acting Comptroller Hsu stated. "I am committed to developing a regulatory framework for digital assets that promotes innovation while maintaining the safety, soundness, and fairness of the federal banking system."
The new interpretive letter rescinds Interpretive Letter 1179 from 2021, which previously imposed strict regulatory requirements on banks engaging in cryptocurrency activities. Under the revised policy, national banks can now provide cryptocurrency custody services to customers, ensuring the secure storage and management of private keys. Additionally, banks are allowed to hold reserves backing stablecoins pegged 1:1 to the U.S. dollar. Furthermore, banks can also participate as nodes in blockchain networks, validating transactions, thereby enhancing their support for decentralized financial activities. These changes signify a significant adjustment to the regulatory framework, providing banks with more flexible operational space to deeply integrate into the digital asset space.
U.S. Accelerates Bank and Blockchain Integration
This move by the OCC demonstrates increased confidence in banks' ability to manage crypto-related risks and aligns with the overall trend of integrating blockchain technology into the financial system. Given the industry's growing maturity and improved risk management practices, the agency believes that previous stringent scrutiny is no longer necessary.
This regulatory shift coincides with President Trump's reiteration of his commitment to repeal the "Exclusion of Cryptocurrency Companies from the Banking System" policy. He stated at a White House cryptocurrency summit, "Last year, I promised to make America the world's Bitcoin superpower and the global capital of crypto, and today we are taking historic action to fulfill that promise."
While the OCC's move is a significant boon to the digital asset industry, challenges still remain. The Federal Reserve and the FDIC have not clearly stated their positions on crypto banking activities, and federal agencies may still impose restrictions through other regulatory channels. However, the OCC's latest guidance undoubtedly marks a turning point—the U.S. financial system has finally opened its doors to digital assets. By streamlining the approval process and recognizing the legitimate financial status of digital assets, the OCC has laid the foundation for broader cryptocurrency adoption. The banking industry now has clear regulatory guidance to leverage blockchain technology to meet the new demands of economic development.
The banking sector may be concerned that stablecoins could drain bank deposits and weaken lending capacity. However, regulatory clarity will also attract new participants. Bank of America CEO Brian Moynihan has clearly stated that they will issue their own stablecoin once the legislation is in place.
Stablecoin Legislation Progresses Rapidly
Regarding the highly anticipated stablecoins, Powell commented, "Cryptocurrency is gradually becoming mainstream, and establishing a legal framework for stablecoins is a good idea. Stablecoins may have broad appeal and should establish consumer protection measures." He expressed positive views on the stablecoin legislation efforts pushed by Congress, and Trump has also stated his hope to expedite the passage of this bill.
The Regulatory Framework for Stablecoins is Becoming Increasingly Clear
Under the push of the Trump administration, the specific process of stablecoin regulatory legislation in the United States is accelerating. On April 3, the U.S. House Financial Services Committee passed the "Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act" with 32 votes in favor and 17 against, and the bill will now move to the full House for consideration. The bill was co-sponsored by Republican representatives French Hill and Bryan Steil. During the committee hearing held on the 9th, Chairman Hill mentioned the approval of the bill, stating, "We have a responsibility to build on this momentum and continue to establish a comprehensive regulatory framework to clarify the rules of the digital asset market."
The approved bill aims to introduce a new compliance system, clarifying the issuance and use of U.S. dollar-backed digital assets. The bill particularly emphasizes the positioning of stablecoins as a "payment tool" while prohibiting offering interest to users.
On the Senate side, the Senate Committee on Banking, Housing, and Urban Affairs passed the "Growing and Enhancing Cyber-Resources Understanding Securities (GENIUS) Act" on March 13 by an overwhelming vote of 18:6. Committee Chairman Tim Scott commented, "This is a bipartisan and significant step forward to protect consumers and national security, while ensuring that the industry can achieve innovative development on U.S. soil."
The bill requires stablecoin issuers to maintain a 1:1 reserve, comply with anti-money laundering regulations, and ultimately aims to establish "common-sense rules" that can protect U.S. consumers and enhance the global status of the U.S. dollar. It is worth noting that stablecoin issuers providing yield are not within the scope of this legislation. The GENIUS Act has now been submitted to the full Senate for consideration, but it will require 60 votes to pass, with the Democratic Party's stance being key. Chairman Scott expressed his goal to complete the legislation before the first 100 days of President Trump's term (April 30, 2025).
On April 5, the SEC released new rules clarifying that certain stablecoins are not considered securities and may be exempt from trading reporting obligations. Some analysts believe that the stablecoins covered by the new SEC rules may not include those issued by industry giant Tether because the SEC stated that the acceptable reserves for stablecoins do not include precious metals or other crypto assets, both of which are included in Tether's reserves. In addition, the SEC also requires that any token must be redeemable for U.S. dollars at any time, while Tether's terms of service suggest that there may be minimum or delayed redemption amounts.
Related Reading: "Full Text of US SEC Stablecoin Regulation: What Kind of Stablecoin Is Not a Security?"
Division Exists Between House and Senate, Trump's WLFI Stablecoin May Impact Legislative Progress
While the House and Senate stablecoin bills remain generally aligned in their basic framework, there are still disagreements in areas such as algorithmic stablecoin regulation and the division of state and federal regulatory authority. Industry experts predict that if the GENIUS Act and the STABLE Act are merged after coordination, the legislation is expected to be completed before the August congressional recess. Ron Hammond, Government Affairs Director of the American Blockchain Association, predicts, "There will be a vote on the merged 'STABLE GENIUS Act' in the next 2-3 months."
In a March White House cryptocurrency summit, Trump explicitly stated his strong support for the legislative work on stablecoins and indicated his intention to sign the bill by August. Treasury Secretary Scott Bescent hinted at the same time that he would "consolidate the global reserve currency status of the US dollar through the stablecoin system." At the American Bankers Association (ABA) conference on April 9, Bescent reiterated that the Treasury Department is "carefully evaluating regulatory barriers for blockchain, stablecoins, and new payment systems" and stated that they are "considering reforms to unleash the enormous potential of the US capital markets."
With the strong push from the Trump administration, industry insiders predict that "2025 will be the watershed year for the widespread adoption of stablecoins." However, some Democratic lawmakers question potential conflicts of interest in the bill related to the Trump family's virtual currency DeFi project, "World Liberty Financial (WLFI)." Five Democratic senators wrote to the Federal Reserve and OCC, questioning the "unprecedented risks" posed by the USD1 stablecoin introduced by the Trump family-backed World Liberty Financial (WLFI) project. The letter pointed out that Trump, through a February executive order, weakened regulatory independence and holds a 60% stake in WLFI, creating a significant conflict of interest. Since its establishment in September 2024, WLFI has raised $550 million through two token sales and launched USD1 on the BNB chain and Ethereum on March 24. This move coincided with the Congressional consideration of the GENIUS Act, which may grant regulatory authority to the OCC and the Federal Reserve, raising concerns about the stability of the financial system.
The Complex and Far-reaching Impact of Tariffs
Regarding the recent tariff policies that have frequently caused significant market fluctuations, Powell stated, "The impact of tariffs on the economy may be greater than expected," "The tariff level has exceeded the optimistic expectations of the Federal Reserve," and "Currently, higher-than-expected tariffs may mean higher inflation and slower growth."
Although the original purpose of cryptocurrency was to be a financial instrument independent of government control, the price and market performance are still significantly affected by macroeconomic policies. Following the United States' announcement of a new global tariff policy on April 2, despite the general decline in global asset prices, Bitcoin's decline was relatively small, only 10%, while the S&P 500 index fell far more than this level (if calculated with a 1:1 correlation, Bitcoin should have fallen by 36%). This to some extent indicates that even during a market deep retracement, holding Bitcoin as part of an investment portfolio can still bring significant diversification benefits, highlighting its relative stability.
Tariffs raise the cost of cross-border transactions, potentially reducing global economic liquidity and capital inflows, decreasing the demand for speculative assets such as cryptocurrencies. In addition, tariffs on tech products, especially semiconductor chips and mining hardware, will significantly increase the mining costs of proof-of-work (PoW) cryptocurrencies such as Bitcoin, particularly in regions relying on Chinese-manufactured ASIC miners and GPUs, which may force miners to move to lower-cost regions or reduce operating scales, thereby impacting network security and market confidence.
Read More:《Mining Equipment Prices Rise by 24%, Trump's Tariff Policy Is Impacting the U.S. Bitcoin Mining Industry》
Tariffs may also indirectly affect the crypto market through exchange rate fluctuations. Historically, Bitcoin has had an inverse relationship with the US dollar, so when tariffs temporarily push up the dollar exchange rate, cryptocurrency prices are often under pressure. However, if tariffs trigger a trade war and lead to currency devaluation in certain countries, residents may turn to Bitcoin or stablecoins as a store of value, as seen in phenomena where crypto adoption surges in times of economic turmoil in countries like Argentina and Turkey.
Furthermore, the price increase of imported goods due to tariffs may trigger inflation, prompting central banks to raise interest rates, reducing the flow of funds into the crypto market. However, if inflation spirals out of control or trust in fiat currency collapses, Bitcoin may be seen as a safe-haven asset similar to gold, attracting investors seeking to hedge against inflation and currency devaluation.
The trade tension may further exacerbate regulatory scrutiny, with investors concerned that governments may take advantage of the situation to strengthen control over crypto assets, leading to increased market volatility. Different cryptocurrencies are affected by tariffs in different ways: Bitcoin may experience a short-term decline due to market risk-off sentiment but may benefit in the long term due to its "digital gold" properties; stablecoins, due to their stability, may become the preferred safe haven for traders in trade disputes; utility tokens dependent on specific blockchain use cases are more directly affected by their related industries. Tariffs on countries with concentrated mining activities (such as Canada, which accounted for 6.5% of Bitcoin mining electricity consumption in 2022) may directly disrupt the geographic distribution of mining activities, impacting market structure.
Related Reading: "History Repeating Itself: Grayscale Report Reveals New Safe-Haven Logic Amid Tariff Storm"
"Risk Warning" from Gary Gensler
Former U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler appeared on the CNBC program "Squawk Box" on the 16th, stating that he believes that certain cryptocurrencies like Bitcoin may have long-term survival potential, and that crypto assets as an investment target will undergo a screening process.
Gary Gensler stated that a few currencies like Bitcoin have garnered widespread attention globally, "Bitcoin may continue to exist for a long time because 7 billion people worldwide have shown strong interest in it."
During the interview, Gary Gensler discussed cryptocurrency as an aside to topics such as Trump's tariffs and the U.S.-China trade war, prompted by the host's question, "After you stepped down, the SEC under the Trump administration seemed to be withdrawing lawsuits against cryptocurrency companies. What are your thoughts on this?" To this, he simply responded by saying he was "stepping away from specific litigation." He further stated, "Cryptocurrency is only a small part of the financial markets, but since everyone is interested, I will talk about it." He then elaborated on the above points.
Gary Gensler also pointed out, "The trading of financial assets is based on fundamental value and market sentiment, but about 99% of cryptocurrency trading is purely driven by emotion." He also stated, "1,000 to 1,500 tokens, such as meme coins, which are driven by emotion, will lose their appeal in the long run for most people."
In the future, as regulatory frameworks continue to improve and market conditions gradually mature, cryptocurrencies and stablecoins may play a more important role in the global financial system.
Institutions and investors need to closely monitor policy dynamics and market trends to
seize a historic opportunity.
You may also like
Token Cannot Compound, Where Is the Real Investment Opportunity?
February 6th Market Key Intelligence, How Much Did You Miss?
China's Central Bank and Eight Other Departments' Latest Regulatory Focus: Key Attention to RWA Tokenized Asset Risk
Foreword: Today, the People's Bank of China's website published the "Notice of the People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:
To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:
Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:
(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.
The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.
A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.
（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.
Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.
(III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.
The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.
(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.
(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.
(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.
(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.
(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.
（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.
（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.
（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.
（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.
（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.
（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.
(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.
(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.
(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.
(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.
(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.
This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.
Former Partner's Perspective on Multicoin: Kyle's Exit, But the Game He Left Behind Just Getting Started
Why Bitcoin Is Falling Now: The Real Reasons Behind BTC's Crash & WEEX's Smart Profit Playbook
Bitcoin's ongoing crash explained: Discover the 5 hidden triggers behind BTC's plunge & how WEEX's Auto Earn and Trade to Earn strategies help traders profit from crypto market volatility.
Wall Street's Hottest Trades See Exodus
Vitalik Discusses Ethereum Scaling Path, Circle Announces Partnership with Polymarket, What's the Overseas Crypto Community Talking About Today?
Believing in the Capital Markets - The Essence and Core Value of Cryptocurrency
Polymarket's 'Weatherman': Predict Temperature, Win Million-Dollar Payout
$15K+ Profits: The 4 AI Trading Secrets WEEX Hackathon Prelim Winners Used to Dominate Volatile Crypto Markets
How WEEX Hackathon's top AI trading strategies made $15K+ in crypto markets: 4 proven rules for ETH/BTC trading, market structure analysis, and risk management in volatile conditions.
A nearly 20% one-day plunge, how long has it been since you last saw a $60,000 Bitcoin?
Raoul Pal: I've seen every single panic, and they are never the end.
Key Market Information Discrepancy on February 6th - A Must-Read! | Alpha Morning Report
2026 Crypto Industry's First Snowfall
The Harsh Reality Behind the $26 Billion Crypto Liquidation: Liquidity Is Killing the Market
Why Is Gold, US Stocks, Bitcoin All Falling?
Key Market Intelligence for February 5th, how much did you miss out on?
Wintermute: By 2026, crypto had gradually become the settlement layer of the Internet economy
Token Cannot Compound, Where Is the Real Investment Opportunity?
February 6th Market Key Intelligence, How Much Did You Miss?
China's Central Bank and Eight Other Departments' Latest Regulatory Focus: Key Attention to RWA Tokenized Asset Risk
Foreword: Today, the People's Bank of China's website published the "Notice of the People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:
To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:
Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:
(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.
The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.
A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.
（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.
Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.
(III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.
The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.
(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.
(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.
(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.
(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.
(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.
（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.
（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.
（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.
（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.
（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.
（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.
(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.
(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.
(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.
(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.
(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.
This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.
Former Partner's Perspective on Multicoin: Kyle's Exit, But the Game He Left Behind Just Getting Started
Why Bitcoin Is Falling Now: The Real Reasons Behind BTC's Crash & WEEX's Smart Profit Playbook
Bitcoin's ongoing crash explained: Discover the 5 hidden triggers behind BTC's plunge & how WEEX's Auto Earn and Trade to Earn strategies help traders profit from crypto market volatility.
App