Today's Crypto Roundup: Fed Eases Bank Restrictions on Crypto, Acting CFTC Chair Joins MoonPay, HashKey IPO Draws Attention in Hong Kong
Today's crypto market saw a wave of significant developments across policy, executive moves, and IPO activity — signaling that crypto is entering a clearer phase of "normalization" within the global financial system. Fed Withdraws Guidance Restricting Banks from Crypto Activities The U.S. Federal Reserve officially rescinded its 2023 guidance that had limited how Fed-supervised banks — including uninsured banks — could participate in crypto-related activities. The Fed noted that the old guidance was no longer appropriate given the significant changes in the financial system and the Fed's own understanding of innovative products and ser
Today's crypto market saw a wave of significant developments across policy, executive moves, and IPO activity — signaling that crypto is entering a clearer phase of "normalization" within the global financial system.
Fed Withdraws Guidance Restricting Banks from Crypto Activities
The U.S. Federal Reserve officially rescinded its 2023 guidance that had limited how Fed-supervised banks — including uninsured banks — could participate in crypto-related activities.
According to the Fed, the old guidance was no longer appropriate given that the financial system and the Fed's own understanding of innovative products and services have changed significantly. Previously, uninsured banks were required to meet the same standards as federally insured banks, effectively shutting many institutions out of crypto services.
Alongside rescinding the old guidance, the Fed issued a new framework establishing a formal pathway for both insured and uninsured banks to engage in "innovative activities" such as crypto, provided they meet full risk management requirements. The move is seen as a positive signal, opening up new space for integrating crypto into the traditional U.S. banking system.
Acting CFTC Chair Steps Down to Join MoonPay
Caroline Pham, Acting Chair of the U.S. Commodity Futures Trading Commission (CFTC), is leaving the regulator to join crypto payments company MoonPay as Chief Legal and Administrative Officer.
During her tenure as Acting Chair, Pham was the sole remaining Republican commissioner at the CFTC and led the agency through a presidential transition. She had previously stated she would leave the CFTC once the Senate confirmed her successor, though the appointment process faced repeated delays due to political factors.
Pham's move to MoonPay is the latest example of the "revolving door" between regulators and the crypto industry. Earlier, fellow CFTC Commissioner Summer Mersinger also departed to become CEO of the Blockchain Association — the crypto industry's primary lobbying organization in the U.S.
During her acting tenure, Pham took a markedly lighter enforcement approach, pursuing only 18 actions and filing no major lawsuits, while championing outreach initiatives such as the Crypto CEO Forum and the CEO Innovation Council.
HashKey Debuts on Hong Kong Exchange Following $206M IPO
In Asia, Hong Kong's largest crypto exchange — HashKey — officially listed on the Hong Kong Stock Exchange (HKEX) following an IPO that raised $206 million USD.
HashKey Holdings shares opened at HKD 6.70 (approximately $0.86 USD). The offering generated extraordinary demand, with the Hong Kong public tranche oversubscribed by nearly 394 times, while the international tranche was oversubscribed by 5.5 times.
HashKey described itself as the first digital asset company in Asia to go public through an IPO in Hong Kong, marking a major milestone in the company's global expansion strategy. The offering attracted major institutional investors including UBS Asset Management Singapore, Fidelity, CDH, and Cithara Global, with UBS and Cithara as the two largest investors.
The Big Picture: Crypto Moves Deeper into the Financial Mainstream
From the Fed's policy shift and a top regulator moving into the crypto industry, to a major exchange pulling off a successful IPO — today's developments make clear that crypto is steadily leaving the periphery and moving deeper into the mainstream financial system.
As the regulatory framework continues to take shape, financial institutions, investors, and crypto companies alike are positioning themselves for a new phase of growth — one where digital assets are no longer an experiment, but a structural component of global markets.