Geopolitics

Malaysia's central bank plans to introduce local currency stablecoins and tokenised deposits by 2026, with projects led by Standard Chartered, Capital A, Maybank, and CIMB to enhance wholesale payments and evaluate financial stability implications.

SEC Commissioner Mark Uyeda emphasizes that tokenization of assets like U.S. Treasuries is moving from concept to reality. He advocates for updated regulations that support blockchain innovation while protecting investors, reflecting cautious optimism in the evolving financial landscape.

Key Insights Ripple and Zand link RLUSD and AEDZ to support regulated stablecoin payments and custody in the UAE. The partnership focuses on XRPL-based issuance, liquidity, and compliance-led banking integration. The move supports the UAE digital economy strategy and institutional blockchain

On February 11, news reports indicated that the White House's second round of consultations on stablecoin regulation failed to reach an agreement between banks and crypto companies. The core disagreement centered on whether "stablecoins can offer yields or rewards to users." Several crypto organizations engaged in discussions with major U.S. banks, but deadlock over key provisions has once again hindered the development of the U.S. stablecoin regulatory framework. The meeting was directly related to the proposed CLARITY Act. This legislation is based on the digital asset regulatory framework proposed by the GENIUS Act and has been passed by the House of Representatives, but the Senate has yet to advance it. The yield provisions are seen as the biggest obstacle. Banks are concerned that if stablecoins offer interest or rewards, it will divert traditional deposits, weaken banks' ability to lend to households and small to medium-sized enterprises, and thus impact financial system stability.

The 2021 Texas blackout stands in stark contrast to Melbourne residents using blockchain technology to trade solar energy, showcasing the potential of distributed energy networks in climate action. This type of network transforms individual climate efforts into economic value and enhances system resilience. Despite challenges related to technical interoperability, business models, and regulation, diverse distributed energy practices are emerging worldwide, reshaping the relationship between people and energy and advancing the social contract for addressing climate change.

On February 11, Hong Kong Financial Secretary Paul Chan announced that Hong Kong is ready to issue the first batch of stablecoin licenses in March, marking the official move into the practical phase of local stablecoin regulation. The statement was made at a digital asset industry conference, sparking significant market attention on topics such as the "Hong Kong stablecoin regulatory framework" and "stablecoin compliance issuance prospects." Paul Chan pointed out that only a small number of licenses will be issued in the initial phase, and regulators will focus on whether applicants have clear use cases, sustainable business models, and comprehensive compliance and risk management systems. He emphasized that stablecoins are not merely payment tools but are important infrastructure connecting traditional finance with on-chain economy, thus requiring a balance between innovation and risk control.

Macro Pressure: China’s Treasury reductions and de-dollarization add stress to the U.S. dollar and Bitcoin. Technical Signals: BTC/XAU ratio breaks key support, suggesting Bitcoin may be far from a bottom. Market Sentiment: Minimal dip-buying and cautious positioning indicate potential

Taiwan stocks closed for the Lunar New Year on February 11, entering the Year of the Horse, while global capital markets continue to operate. Key events during the Lunar New Year include US GDP and global PMI, with NVIDIA's earnings report on February 26 being the biggest focus. The five major market trends include emerging markets outperforming US stocks, small and mid-cap stocks leading blue chips, AI hardware outperforming software, and more. Risk tracking includes four assets: IGV, MOVE, silver, and Bitcoin.

American "Today Show" host Savannah Gessley's mother was kidnapped, and the kidnappers demanded $6 million in Bitcoin. The case has raised concerns about cryptocurrency crimes and has drawn mainstream society's attention to the risks of blockchain. Law enforcement faces difficulties, with no concrete clues found, and family members released a video for help. This incident serves as a warning about the spread of cryptocurrency crimes in society.

Hong Kong Securities and Futures Commission Chief Executive Carrie Lam announced three new initiatives to establish a comprehensive virtual asset regulatory ecosystem. In terms of guaranteed financing, brokers will be allowed to provide financing to creditworthy clients, with collateral including securities and virtual assets. Regarding perpetual contracts, a high-level regulatory framework will be announced to permit licensed platforms to offer perpetual contract products. Concerning associated market makers, regulations are expected to be relaxed to allow licensed platforms to provide liquidity through subsidiary market-making units.

Hong Kong Financial Services and the Treasury Bureau Deputy Secretary Chen Hao-lian stated at Consensus 2026 that they welcome Layer 1 protocols establishing a presence in Hong Kong to strengthen the city's position as a Web3 hub. He mentioned that pandemic restrictions have been lifted, and hundreds of Web3 companies are now operating in Hong Kong. The Hong Kong government will continue to strengthen its engagement with blockchain protocols and is considering research into regulatory frameworks for DAOs.

The eight departments of the country issued the "Notice on Further Preventing and Managing Risks Related to Virtual Currencies and Other Assets," and the CSRC introduced relevant regulatory guidelines. The article analyzes China's changing regulatory attitude towards virtual currencies and real-world assets (RWA), pointing out that virtual currencies are still under strict crackdown, while RWA offers a compliant pathway, but the compliance threshold is high, and practical implementation faces multiple challenges.

February 11 News, according to Bloomberg, the cryptocurrency Super PAC Fairshake's affiliate organization, Defend American Jobs, plans to spend approximately $5 million to support pro-cryptocurrency candidate Barri Moore's campaign for U.S. Senate. The five-week campaign will run political ads on television and cable media, with Trump also publicly endorsing her, quickly making this election a key indicator of U.S. cryptocurrency policy battles. Super PACs can raise funds from corporations and associations but cannot donate directly to candidates. Instead, they influence voters through independent advertising and media campaigns. Fairshake stated that Moore is committed to economic growth and supports making the U.S. a "global crypto innovation hub," and therefore, industry forces should rally behind her.

February 11 News, the White House led a new round of consultations with representatives from the cryptocurrency and banking industries regarding the stablecoin provisions in the Crypto Market Structure Act. Participants generally described the meeting as "productive," but no consensus has been reached on the core disagreements. Ripple Chief Legal Officer Stuart Alderoty posted on X platform stating that both sides are trying to find room for compromise, and both parties remain optimistic about the legislation on the crypto market structure. He emphasized that this is a critical window of opportunity to advance the implementation of the US crypto regulatory framework.

The Hong Kong Securities and Futures Commission has officially announced the "Accelerator" program tender, aimed at optimizing regulatory and market communication. Meanwhile, Ye Zhiheng added measures for financial funding and perpetual contracts to ensure two-way interaction and participation of professional investors, promoting global liquidity connectivity.

The White House held its second meeting on Tuesday, attempting to mediate the disagreement between the banking industry and the crypto industry over stablecoin yield issues. However, TradFi bank representatives brought a "principles document" insisting on a complete ban. The document calls for prohibiting any financial or non-financial incentives to stablecoin holders, emphasizing that stablecoin activities must never trigger deposit outflows.

The EU is considering a ban on all crypto transactions with Russia to prevent Moscow from circumventing sanctions imposed due to the Ukraine conflict. The proposal aims to target Russian crypto entities that support military operations and to restrict exports to Kyrgyzstan due to concerns over arms trade.

On February 11, U.S. cryptocurrency and banking industry executives held a meeting at the White House to discuss the stablecoin yield and related market structure legislation. Both parties described the talks as "productive," but no agreement was reached on key issues. Participants included Ripple, the Cryptocurrency Innovation Committee, the Blockchain Association, as well as major banks such as Goldman Sachs, Citigroup, JPMorgan Chase, and representatives from the American Bankers Association. During the meeting, banks took a hard stance on stablecoin yields. According to leaked documents, the banks proposed a set of "prohibition principles," advocating for a complete ban on any financial or non-financial benefits related to holding or using payment stablecoins, and strict enforcement of anti-avoidance measures to prevent any form of yield or interest promotion beyond the limits. This position goes beyond the latest draft of the Market Structure Bill, which only prohibits passive holding of stablecoin-generated yields but allows limited active reward activities. The banks emphasized that any yield exemptions should be strictly restricted.

Russia is restricting access to Telegram to enhance digital control, citing legal issues. This move favors state-backed app Max and threatens the crypto sector that relies on Telegram, potentially shifting users and reshaping the digital economy.

The European Union proposes a comprehensive ban on cryptocurrency transactions with Russia, covering all Russian service providers and digital rubles. Kyrgyzstan's imports from the EU have increased by 800%, and exports to Russia have surged by 1,200%. The proposal is part of the 20th round of sanctions, expected to be agreed upon before the four-week mark of the Russia-Ukraine war on February 24, requiring unanimous approval from 27 member countries.