Crypto Weekly: Regulation, banks, and mayors seek attention Crypto Weekly: Regulation, banks, and mayors seek attention Crypto Weekly: Regulation, banks, and mayors seek attention

Crypto Weekly: Regulation, banks, and mayors seek attention

Cryptocurrencies 10 minutes to read
Mads Eberhardt

Cryptocurrency Analyst

Summary:  The crypto market has undoubtedly been the subject of growing attention the past year, which has arguably placed the industry in the eyes of regulators, banks, and surprisingly US mayors.

Biden administration urges regulation on stablecoins

For some time, we have discussed potential stablecoin regulation, and the impact it could have on the broader crypto market. Stablecoins are essential for the crypto market as they serve as the cogwheels in decentralized applications and the overall liquidity of the market due to the most liquid pairs being quoted in stablecoins. The market capitalization of stablecoins having grown by around 4.5 times year-to-date reaching $134bn catching the attention of regulators. Last week the highly anticipated report on stablecoins by the Biden administration’s President’s Working Group (PWG) was released. The report itself was fairly positive on the role stablecoins can play in society going forward by supporting faster, more efficient, and more inclusive payment options, as described by the report. Somewhat surprisingly, the report moreover described decentralized finance (DeFi) thoroughly, and how stablecoins act as an essential part of the growing market of decentralized applications.

Not only have stablecoins caught the attention of regulators but also decentralized finance, emphasizing that we will likely see further attention on decentralized finance going forward, which can highly influence the market. On a final note, the report shortly mentioned Dai, a fully decentralized stablecoins, backed upon other cryptocurrencies. The interesting matter concerning Dai is that regulators are substantially more constrained on regulation as Dai is fully backed decentralized, not by holding fiat in a bank account such as the largest stablecoins issuers Tether and USDC do. The recommendations of the report only applies to Tether, USDC, and other fiat-redeemable stablecoins. By what means regulators intend to regulate fully decentralized stablecoins such as Dai remains uncertain.

In regards to fiat-redeemable stablecoins, the report urged the Congress to promptly comprehensively regulate those as “the absence of appropriate oversight presents risks to users and the broader system”, as pointed out by Secretary of the Treasury Janet L. Yellen. Most notably, the report recommends that stablecoins issuance is limited to solely banks. By limiting it to banks, the issuance will to some degree be covered by the traditional regulatory framework, effectively giving respective US government agencies greater jurisdiction over the issuance. Both Tether and USDC were rather positive on the recommendation as it essentially gives regulatory clarity. The latter has recently stated that it intends to become a full-reserve national commercial bank. The first mentioned Tether has multiple times been in a negative spotlight of regulators, recently being fined $41mn by the Commodity Futures Trading Commission (CFTC).

Banks are embracing crypto

During the past year, we have witnessed several large banks such as JPMorgan Chase, Goldman Sachs, BNY Mellon, and Morgan Stanley making their entry into the crypto market with various crypto-related offerings. Last week, Thailand’s oldest and largest bank by market capitalization, Siam Commercial Bank, joined the aforementioned banks by announcing its intention to acquire a 51% stake in Thailand-based crypto exchange Bitkub. The acquisition comes with a price tag of THB 17.85bn, or roughly $536.7mn. Bitkub is one of the largest exchanges in Thailand. It is one of the few exchanges in the country operating with regulatory approval. The bank’s chief executive officer, Arthid Nanthawithaya, said the acquisition will help the bank enter a “new competitive arena that will emerge very quickly in the next three to five years.” The acquisition is subject to approval from the Thai Securities and Exchange Commission and the country’s central bank.

Australia’s largest bank, CommonWealth Bank of Australia, also announced last week its intention to let clients trade cryptocurrencies through its app. It is the first major bank in Australia to enable clients to trade cryptocurrencies, which include Bitcoin, Ethereum, and Litecoin. The bank intends to launch the product broadly to clients during 2022.

A race to get paid in Bitcoin

Regulation and banks aside, some US mayors have said in the public race that they will receive their salary in Bitcoin to virtually promote their cities as crypto advocates. First, the long-time crypto advocate Francis Suarez, serving as Miami’s mayor, stated that he will take his next paycheck in Bitcoin. Following in his footsteps, the newly-elected mayor of New York City Eric Adams announced that he will be paid entirely in Bitcoin for his first three paychecks with the following statement: “NYC is going to be the center of the cryptocurrency…”. Eric Adams later stated that schools should teach students the topic of cryptocurrencies. To top it off, the mayor of Tampa in Florida Jane Castor announced on Friday that she is willing to accept a paycheck in Bitcoin.
Source: Saxo Group
Source: Saxo Group

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (
- Analysis Disclaimer (
- Notification on Non-Independent Investment Research (

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000

Contact Saxo

Select region


The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.