Bitcoin News Today: Fed Elevates Stablecoins to Global Policy Stage

The U.S. Federal Reserve has announced a significant step toward integrating digital assets into mainstream financial systems by hosting a Payments Innovation Conference on October 21, 2025. The event will focus on emerging technologies, including stablecoins, tokenization, and the convergence of traditional and decentralized finance. The conference aims to foster dialogue among regulators, academics, and industry participants to explore ways to improve the safety and efficiency of the U.S. payment system. This initiative reflects the Fed’s recognition of digital assets as integral components of the evolving payments landscape rather than peripheral experiments.

Federal Reserve Governor Christopher J. Waller emphasized the importance of innovation in adapting to changing consumer and business needs, stating that the conference will explore ideas on how to enhance the payment system’s safety and efficiency. The discussions will cover a range of topics, including the role of artificial intelligence in fraud detection, credit assessment, and risk management. The event will be broadcast live on the Fed’s website, making it accessible to a broader audience. Industry leaders, such as Jakob Kronbichler, co-founder and CEO of on-chain credit marketplace Clearpool, have praised the move, noting that it elevates the conversation around stablecoins and tokenized financial products to a global policy level.

In parallel, U.S. Bank has announced the resumption of its institutional bitcoin custody service after a pause of more than three years. The decision comes as the Trump administration has adopted a more favorable stance toward crypto, prompting traditional financial institutions to explore opportunities in digital assets. U.S. Bank partners with crypto firm NYDIG to provide custody services, with NYDIG acting as the sub-custodian for the underlying assets. The service is targeted at institutional investment managers and now includes support for spot bitcoin ETFs, which have gained significant popularity this year. Stephen Philipson, head of wealth, corporate, commercial, and institutional banking at U.S. Bank, highlighted the comfort clients derive from the bank’s stability and continuity in this evolving market.

Meanwhile, the Federal Reserve’s October conference aligns with broader regulatory efforts to establish clarity for stablecoins and tokenized financial products. The passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act in July 2025 marks one of the first major legislative milestones in the U.S. toward regulating stablecoins. The act mandates the Treasury and Fed to issue regulations before implementation, emphasizing the need for consistent standards in tokenized credit and liquidity markets. Analysts have noted that clear, unified rules are essential for scaling on-chain financing solutions without fragmentation. The act also reflects the U.S. government’s attempt to catch up with more comprehensive regulatory frameworks, such as the European Union’s Markets in Crypto-Assets (MiCA) regulation, which provides a unified set of rules across EU member states.

The broader crypto market has also shown signs of realignment as investors shift capital between Bitcoin and Ethereum ETFs. U.S. spot Bitcoin ETFs have attracted over $54.8 billion in cumulative inflows, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the charge. In contrast, Ethereum ETFs have experienced recent outflows, despite strong inflows in August. The divergence highlights shifting investor sentiment as Bitcoin continues to be viewed as a safer asset amid macroeconomic uncertainty, while Ethereum faces questions about its immediate appeal and volatility. Despite the outflows, institutional investors remain active in the Ethereum market, with whale and corporate treasury activity indicating sustained demand for the asset. This dynamic underscores the need for regulatory clarity and stable policy frameworks to support both innovation and investor confidence in the crypto sector.

Source: [1] US Fed to Host Payments Innovation Conference on Crypto (https://finance.yahoo.com/news/us-fed-host-payments-innovation-022309403.html) [2] US Fed To Hold Conference On Digital Assets Amid (https://cointelegraph.com/news/federal-reserve-conference-stablecoins-tokenization) [3] US Bancorp revives institutional bitcoin custody service (https://www.reuters.com/sustainability/boards-policy-regulation/us-bancorp-revives-institutional-bitcoin-custody-service-2025-09-03/) [4] Crypto Rules in Europe vs. the US: Does Your Stablecoin (https://finance.yahoo.com/news/crypto-rules-europe-vs-us-184431208.html) [5] Crypto Regulation in the USA, UAE and EU: A Full Comparison (https://irinauae.law/en/blog/crypto-regulation-usa-uae-eu)