KEYTAKEAWAYS
- Regulatory shifts gain momentum with FDIC allowing banks to engage in crypto activities without prior approval and Coinbase securing a New York virtual currency license, signaling a more favorable landscape.
- Legal consequences of past crypto cycles continue as Galaxy Digital settles with New York for $200 million over its LUNA involvement, while infrastructure expands with Nasdaq filing for Avalanche ETF.
- Stablecoin adoption accelerates toward potential $1 trillion market by year-end, even as current transaction volumes decline to 25% of December levels, indicating a market in transition.
CONTENT
Welcome to the CoinRank Crypto News Roundup. CoinRank will provide daily important crypto news in this column series, allowing readers to quickly obtain the latest crucial updates from the cryptocurrency market.
MORNING NEWS
1. Coinbase Obtains Virtual Currency License in New York
According to the official announcement, Coinbase, Inc. has obtained a license from the New York State Department of Financial Services to engage in virtual currency business activities.
2. Galaxy Digital Settles with New York AG for $200 Million in LUNA Case
The New York Attorney General’s office has commenced an investigation on Galaxy Digital with a settlement of $200 million over its involvement in the LUNA cryptocurrency. The Terra crash alongside its blockchain erased over $40 billion in investor funds.
The settlement stipulates that Galaxy Digital will pay $200 million over three years, with the first payment of $40 million due in approximately two weeks. The company must also commit to policies preventing future conflicts of interest and promotional statement issues, as well as conduct legal analyses of all future token deals.
According to the AG’s findings, while CEO Michael Novogratz was publicly promoting LUNA (even getting a wolf howling at the moon tattoo when the price hit $100), Galaxy Digital was selling millions of tokens at higher prices without disclosure. The company also reportedly shared unverified false information from Do Kwon that CHAI was powered by Terraform’s blockchain.
Do Kwon, Terraform Labs’ founder, is currently awaiting extradition to the US to face fraud and securities violation charges.
3. FDIC Eases Crypto Regulations for Banks Under New Leadership
The Federal Deposit Insurance Corporation (FDIC) issued new guidance on March 28 clarifying that FDIC-supervised banks may engage in crypto-related activities without first obtaining the agency’s approval, provided they manage associated risks by safety and soundness standards.
Acting Chairman Travis Hill stated: “With today’s action, the FDIC is turning the page on the flawed approach of the past three years. I expect this to be one of several steps the FDIC will take to lay out a new approach for how banks can engage in crypto- and blockchain-related activities.”
The announcement rescinds previous guidance (FIL-16-2022) and marks a significant policy shift. In recent years, banks reportedly received informal “pause” letters instructing them to halt engagement with crypto services, which critics labeled as “Operation Chokepoint 2.0.”
Hill has previously criticized these non-transparent practices, noting that over 20 banks had received letters asking them to stop or delay crypto activities without formal rulemaking or open comment periods.
4. Nasdaq Files for Spot Avalanche ETF with SEC
Nasdaq submitted a 19b-4 filing with the U.S. Securities and Exchange Commission to approve the listing of a spot Avalanche exchange-traded fund (ETF) managed by Grayscale.
Grayscale already manages an Avalanche Trust that carries a 2.5% management fee. The filing could lead to a cheaper, more flexible investment vehicle with exposure to the AVAX token, following the industry trend toward developing regulated vehicles for altcoin trading.
If approved, the ETF would hold AVAX directly with Coinbase Custody serving as custodian. AVAX is currently trading at $20.5 after losing 6.6% of its value in the last 24 hours amid a broader market drawdown.
Other companies are also exploring Avalanche opportunities, with VanEck filing an S-1 form for an Avalanche ETF earlier this month. Last month, Grayscale also filed for a Cardano ETF.
5. CZ Pledges 1,000 BNB to Myanmar and Thailand Earthquake Victims
Binance co-founder Changpeng Zhao (CZ) has promised to donate 500 BNB each to Myanmar and Thailand after a devastating 7.7 magnitude earthquake struck both countries on March 28.
The earthquake hit near Mandalay, Myanmar’s second-largest city, killing at least 144 people, injuring about 700, and causing significant property damage. Myanmar’s junta chief has urged nations to provide aid for relief efforts.
CZ posted on X: “I will donate 500 BNB each to Myanmar and Thailand. Is there a transparent on-chain donation system with DID? If not, I will rely on @Binance and @Binance_TH_ to distribute.”
This donation highlights the role of cryptocurrencies in disaster relief, offering cross-border efficiency, near-instant transactions, and lower costs compared to traditional methods.
NOON NEWS
1. Trump Pushes for More Aggressive Tariff Approach
U.S. President Donald Trump is urging senior advisers to take a more aggressive stance on tariffs as the administration prepares for a major escalation in its global trade war, the Washington Post reported on Saturday.
Despite calls from allies on Wall Street and Capitol Hill to adopt a more measured approach, Trump has been pushing for sweeping trade actions aimed at reshaping the U.S. economy.
Trump has continued to tell his advisers that he wants to keep increasing trade measures, and in recent days has revived the idea of a universal tariff that would apply to most imports regardless of their country of origin.
The president has expressed regret over not implementing broader tariffs during his first term and has told advisers that tariffs are a win for the United States, bringing back manufacturing jobs and adding trillions in government revenue.
2. Ethereum ETFs See $4.7 Million Net Inflow After Days of Outflows
U.S. spot Ethereum ETFs experienced a combined net inflow of $4.7 million on March 28, marking a return to net inflows after four trading days of net outflows, according to Farside Investor.
Specifically, Grayscale’s ETHE saw a net inflow of $4.7 million, while the remaining ETFs reported no change in their holdings on that day.
3. Ethereum Futures Premium Reaches One-Year Low Ahead of Pectra Upgrade
The Ethereum futures premium has reached a nearly one-year low, signaling a shift in market sentiment towards the cryptocurrency. This development comes as the Ethereum network prepares for the highly anticipated Pectra upgrade, expected to be a key inflection point for the platform.
Analysts have noted that decreased Ethereum network activity directly undermines ETH’s attractiveness. While Layer 2 scaling solutions have improved transaction efficiency, they have led to a contraction in mainnet transaction fee revenue.
The competition facing Ethereum has extended from the public chain level to vertical domains, with projects like Ethena (with $5.3 billion TVL) announcing migration from Ethereum to its self-developed Layer 1 after securing $100 million in financing.
With the Ethereum Pectra upgrade approaching, investors should focus on two key innovations: base layer fee optimization and enhanced end-user experience. If the upgrade can substantially enhance the network’s competitiveness, ETH may regain its leadership in the altcoin market.
4. Top 10 Stablecoin Volume Down to 25% of December Levels
Top 10 stablecoin volume has decreased to approximately one-fourth of what it was in December.
5. Michael Saylor: Token Issuers “Pretending” to be Decentralized
Michael Saylor, the founder of Strategy (formerly MicroStrategy), stated that many token issuers are “pretending” to be decentralized, but in reality, they do not want decentralization and are eager to enter the capital market.
Saylor noted that digital tokens provide a convenient way to create capital and innovation, whether it’s TRUMP coin, celebrity-issued coins, smart contract tokens, utility tokens, or complex tokens/NFTs. However, registering these as securities requires substantial investment in legal and accounting resources to ensure compliance.
EVENING NEWS
1. Solana Network Addresses Reach All-Time High of 11.12 Million
Blockchain analyst Ali reported on X that the number of addresses on the Solana network has surged to approximately 11.12 million, marking a new all-time high.
2. Weekly ETF Flows: Ethereum ETFs See $8.7M Outflow, Bitcoin ETFs Gain $196.4M
This week, US Ethereum spot ETFs experienced an $8.7 million net outflow, while Bitcoin spot ETFs saw a $196.4 million net inflow.
3. Stablecoin Supply Could Reach $1 Trillion by End of 2025
The global stablecoin supply could surge to $1 trillion by the end of 2025, potentially becoming a key catalyst for broader cryptocurrency market growth, according to David Pakman, managing partner at crypto-native investment firm CoinFund.
“We’re in a stablecoin adoption upswell that’s likely to increase dramatically this year,” Pakman said during Cointelegraph’s Chainreaction live show. “We could go from $225 billion stablecoins to $1 trillion just this calendar year.”
Pakman noted that such growth, while modest compared to global financial markets, would represent a “meaningfully significant” shift for blockchain-based finance. He also suggested that increased capital flowing onchain, combined with growing interest in ETFs, could further support DeFi activity.
The aggregate stablecoin supply stood at an all-time high of above $208 billion across the five largest stablecoins on March 28, according to Glassnode data. Stablecoins are increasingly being used for daily payments, with transaction volumes up over 22x since 2021 and a significant decrease in average transaction size.
4. Fed Rate Cut Probability: 18.5% Chance for May Reduction
According to CME “Fed Watch” data, the probability of the Federal Reserve cutting interest rates by 25 basis points in May is 18.5%, while the probability of maintaining the current rate is 81.5%.
5. Floki DAO Votes Unanimously to Remove TokenFi Transaction Tax
After a unanimous vote from Floki DAO, TokenFi announced the cancellation of a 0.3% buy/sell tax on the native token TOKEN. The relevant changes have now taken effect on both the Ethereum and BNB Chain networks, with a reported support rate of 100% for this vote.
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