Crypto’s integration with traditional finance continued to accelerate this week, with developments spanning payments, banking, asset custody, and tokenized securities. Stablecoins are gaining a stronger foothold in business payments, while U.S. banks are challenging the regulatory treatment of crypto-focused trust charters. At the same time, the Securities and Exchange Commission is advancing rules for crypto custody and tokenized securities, underscoring how regulators and financial institutions are increasingly building frameworks for digital assets within established financial markets.
ESMA calls for tougher oversight and clearer MiCA rules
The European Securities and Markets Authority (ESMA) has urged the European Commission to strengthen and simplify the Markets in Crypto-Assets Regulation (MiCA) as part of its review of the EU’s crypto framework.
ESMA’s recommendations focus on investor protection, supervision, and emerging crypto services. The regulator wants tighter rules for crypto-asset marketing, including promotions involving influencers, alongside clearer disclosure of fees, risks, and potential losses.
The proposals also target staking, lending, and borrowing, as well as unauthorised firms targeting European investors. ESMA is seeking stronger powers to tackle fraudulent websites and non-compliant stablecoins, while proposing explicit restrictions on regulated crypto companies offering services connected to stablecoins that fail to meet MiCA requirements.
DeFi is another major focus. ESMA wants clearer criteria for determining when an activity is genuinely decentralised and proposes a regulated service for firms providing access to DeFi protocols. It also wants greater consistency in crypto-asset classification, including for hybrid tokens, and the ability to issue binding opinions on classification.
Beyond MiCA, ESMA is calling for an EU framework supporting tokenised securities and on-chain settlement.
Circle challenges MiCA stablecoin reserve requirements
Stablecoin issuer Circle has called for changes to MiCA’s reserve rules, arguing that mandatory bank-deposit requirements can expose issuers to unnecessary banking-sector risks.
The company supports replacing fixed deposit minimums with a broader liquidity requirement and removing certain concentration limits. Circle also wants the EU to preserve multi-issuance arrangements involving European and foreign-regulated entities, warning that tighter restrictions could drive users toward offshore providers.
The debate highlights a growing tension between stablecoin oversight, financial stability, and the need to maintain competitive crypto markets in Europe.
El Salvador receives $138 million IMF disbursement
El Salvador has secured approximately $138 million from the International Monetary Fund after the lender granted waivers for missed programme targets, including those related to Bitcoin accumulation.
The IMF said the country had made progress on financial-sector reforms, fiscal transparency, and anti-money laundering measures. It also highlighted the transfer of majority ownership and operational control of the government’s Chivo Bitcoin wallet to a private operator.
Under the programme, El Salvador is expected to reduce the state’s involvement in Bitcoin-related activities. The IMF said no further Bitcoin accumulation is planned beyond documented private donations, while transparency around public-sector crypto holdings remains a priority.
Disclaimer: The content of this article is for informational purposes only and does not constitute financial, investment, or trading advice. Readers should conduct their own research and consult a qualified cryptocurrency advisor before making any investment decisions.
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Rodcas Consulting Group