Bitcoin News Today: Crypto's Surge Sparks Global Regulatory Tug-of-War

Global regulators are intensifying their scrutiny of banking frameworks as stablecoins and cryptocurrencies gain traction, prompting adjustments to long-standing financial regulations. From Japan's compliance-driven approach to France's legislative overhaul and U.S. market dynamics, the interplay between crypto innovation and traditional finance is reshaping capital requirements, cross-border payments, and institutional participation.

In Japan, the Financial Services Agency (FSA) is exploring a policy shift that would allow banks to hold cryptocurrencies for investment purposes and operate as licensed crypto exchanges. This follows Bybit's pause in Japan to align with FSA rules, a move underscoring the growing need for crypto platforms to navigate evolving regulatory landscapes. The FSA's proposed changes aim to position Japan as a crypto-friendly hub, with the country already leading Asia-Pacific in onchain activity, according to Chainalysis.

France has taken a more confrontational stance, with its National Assembly rejecting the European Central Bank's (ECB) digital euro initiative in favor of promoting Bitcoin and euro-backed stablecoins. The resolution, filed by Éric Ciotti and UDR members, calls for a 2% national Bitcoin reserve and adjustments to Basel III prudential rules that currently impose up to 1,250% capital buffers on crypto-collateralized loans. Lawmakers argue that stringent capital requirements stifle innovation and discourage banks from engaging with crypto-backed lending. Meanwhile, the ECB's digital euro project, expected to enter circulation by 2029, faces skepticism over concerns about central bank surveillance and financial intermediation risks; the National Assembly's vote, reported by Bitcoinist, reflects that debate.

The U.S. market is also witnessing a shift, with JPMorgan analysts noting Circle's USDC stablecoin outpacing Tether's USDT in onchain growth. This trend aligns with broader regulatory clarity, such as the July 2025 GENIUS Act, which established a framework for stablecoins and accelerated their adoption. Visa's expansion, a key development in the payments sector, supports four stablecoins on four blockchains and converting them to 25 fiat currencies. CEO Ryan McInerney highlighted Visa's network of 12 billion endpoints and its role in processing $14 trillion in payments in 2025, signaling the growing integration of crypto into mainstream finance.

Standard Chartered predicts that tokenized real-world assets—largely built on Ethereum—could reach $2 trillion by 2028. This projection underscores the potential for stablecoins to facilitate real-time, cross-border transactions, as demonstrated by Ripple's RLUSD stablecoin, which enables instant, low-cost payments for corporations and charities. Meanwhile, French lawmakers are pushing for stronger euro-denominated stablecoins to reduce reliance on dollar-based tokens, which currently account for 91% of the $230 billion stablecoin market.

The regulatory recalibration extends to capital adequacy requirements. KBC Group's Q2 2025 results show a CET1 ratio of 14.6% as of Q2 2025, well above the ECB's revised 10.85% threshold, reflecting the sector's resilience amid tighter capital buffers. However, institutions like OFS Capital face liquidity constraints due to credit facility terms, highlighting the need for flexible frameworks as crypto adoption grows.