Bitcoin News Today: Regulators Reshape Finance by Embracing Crypto Integration as Stablecoins Surge

Global regulators are intensifying their scrutiny of cryptocurrency banking frameworks as stablecoins gain traction, with key developments in Japan, France, and Europe reshaping the landscape. The surge in digital assets, particularly stablecoins, has prompted policymakers to balance innovation with oversight, reflecting a broader shift in how traditional finance interacts with decentralized systems.

Japan's Financial Services Agency (FSA) is at the forefront of this regulatory evolution. Bybit, one of the world's largest cryptocurrency exchanges, announced it would freeze new user registrations in Japan starting October 31, 2025, to align with local regulations. The move underscores Japan's growing influence in Asia-Pacific crypto adoption, where onchain activity has surged by 120%. Meanwhile, the FSA is exploring a groundbreaking policy shift that would permit banks to buy and hold cryptocurrencies for investment purposes and obtain licenses as crypto exchange operators. This could enable banks to offer trading and custody services directly, signaling a potential integration of crypto into mainstream financial infrastructure.

In Europe, France has emerged as a vocal critic of central bank digital currencies (CBDCs), opting instead to champion crypto-backed alternatives. The French National Assembly recently proposed blocking the digital euro and prioritizing euro-denominated stablecoins. The motion, led by Éric Ciotti and his Union of the Right for the Republic, calls for France to hold 2% of Bitcoin's total supply-approximately 420,000 BTC-and advocates for relaxed Basel III prudential rules that currently restrict crypto-collateralized lending. The proposal also highlights concerns over a digital euro's potential to destabilize banks by allowing direct ECB-controlled deposits. France's stance aligns with U.S. efforts like the GENIUS Act, which promotes stablecoins while opposing CBDCs, as noted in a BitDegree article.

Stablecoins themselves are expanding rapidly, both in market size and institutional adoption. Standard Chartered predicts tokenized real-world assets (RWAs) could reach $2 trillion by 2028, matching the stablecoin market's scale. The bank attributes this growth to decentralized finance (DeFi) liquidity cycles and regulatory clarity, such as the U.S. GENIUS Act, which established a stablecoin framework in July 2025. Meanwhile, Deutsche Bank-backed EURAU, a euro-pegged stablecoin, has expanded across multiple blockchains-including Ethereum, Solana, and Polygon-via Chainlink's Cross-Chain Interoperability Protocol (CCIP). This move aims to create a unified, institutional-grade euro liquidity network, with EURAU now compliant under the EU's Markets in Crypto-Assets Regulation (MiCA).

The regulatory landscape remains fragmented but increasingly adaptive. France's push for lighter crypto banking rules mirrors global trends, as seen in Venezuela's nascent efforts to integrate Bitcoin into national banking systems to combat hyperinflation. These developments highlight a broader theme: regulators are no longer solely focused on restricting crypto but are instead seeking frameworks to harness its potential while mitigating risks.

As stablecoins and tokenized assets grow in prominence, the interplay between innovation and regulation will define the next phase of crypto's integration into global finance.