Fed relaxes banking rules for crypto engagement

Fed lifts crypto notice requirement for banks

The Federal Reserve has eliminated the requirement for U.S. banks to provide advance notice before engaging in crypto or stablecoin-related activities, completing what critics had dubbed the rollback of “Operation Chokepoint 2.0.”

The central bank announced Thursday that going forward, crypto exposure will be monitored like any other banking activity, ending the heightened scrutiny that followed the collapse of FTX in 2022. The Fed’s new stance aligns with earlier changes from the FDIC and OCC, which had already clarified that banks could legally serve crypto firms without explicit permission.

While this shift represents a major policy win for the crypto industry and a key pillar of President Trump’s deregulatory agenda, it stops short of addressing access to Fed master accounts – a critical bottleneck for crypto-focused banks like Custodia and Kraken Financial.

Still, many in the industry see this as a turning point. One crypto banking advocate told The Crypto Radio the decision showed the Fed is “moving in the right direction,” despite earlier concerns about potential resistance from the board’s Democrat majority.

Real estate tokenization could reach $4T by 2035

Real estate on the blockchain may soon move from pilot projects to prime time. A new report from Deloitte projects the tokenized property market could grow from less than $300 billion today to $4 trillion by 2035, driven by private funds, securitized debt, and development projects.

Tokenization enables fractional ownership, faster settlements, and broader access, allowing property shares to trade more like stocks. Deloitte cites Kin Capital’s $100 million Chintai platform as one of several case studies leading the shift.

Tokenized real estate debt is expected to dominate the sector, possibly reaching $2.39 trillion, followed by $1 trillion in private real estate funds and $500 billion in land developments. But challenges remain, including regulatory clarity, asset custody standards, and cybersecurity risks.

The report lands amid growing interest in tokenizing real-world assets, with blockchain firms and traditional financial institutions increasingly exploring digital infrastructure to reimagine how property is owned and exchanged.

Bitcoin holds near $93K as rate cut odds rise

Bitcoin steadied near $93,300 on Thursday after briefly dipping to $91,800, as markets reacted to growing signals of Federal Reserve rate cuts. The cryptocurrency ended the day flat, even as U.S. equities surged on expectations of monetary easing.

Federal Reserve Bank of Cleveland President Beth Hammack told CNBC that the central bank would act “preemptively” on interest rates depending on how Trump’s aggressive trade policies affect the economy. Her comments lifted both the S&P 500 and Nasdaq by over 2%.

Meanwhile, Bitcoin ETFs recorded their largest two-day inflows since January, attracting $1.8 billion despite stagnant prices. According to analysts, strong institutional demand is being offset by profit-taking and subdued retail activity.

Altcoins showed mixed results: Ethereum fell 1.8% to $1,760, while Solana gained 1% to hit $151. Market watchers say Bitcoin’s divergence from tech stocks could reflect a shift in its role as a hedge against inflation and global monetary turbulence.

El Salvador proposes U.S. real estate sandbox

In a landmark regulatory proposal, El Salvador has invited U.S. companies to test tokenized real estate projects under a joint sandbox framework co-developed with the SEC’s Crypto Task Force.

The proposal, confirmed in an SEC filing, follows recent dialogue between U.S. Commissioner Hester Peirce and El Salvador’s National Commission on Digital Assets (CNAD). It outlines a pilot where investors could purchase tokenized shares in Salvadoran land or crowdfund small businesses under U.S.-compliant rules.

The initiative reflects growing collaboration between the two countries after President Trump and President Bukele’s recent meeting. El Salvador – which made Bitcoin legal tender in 2021 – currently holds $573 million in BTC, according to Arkham Intelligence.

The sandbox comes as real estate tokenization gains momentum globally. If implemented, it could offer a real-world testbed for blockchain innovation with SEC participation, possibly setting a precedent for other cross-border fintech collaborations.

Cantor-backed Twenty One to debut with 42K BTC

Shares of Cantor Equity Partners surged 50% Thursday, capping a 134% weekly gain ahead of its merger with new Bitcoin venture Twenty One. The company plans to launch with a treasury of 42,000 BTC – worth approximately $3.9 billion – making it one of the largest Bitcoin holders on the public markets.

Backed by Tether, Bitfinex, SoftBank, and Cantor Fitzgerald, Twenty One aims to become a comprehensive Bitcoin vehicle, offering treasury exposure, financial services, and crypto media under CEO Jack Mallers of Strike.

The firm plans to raise nearly $600 million through convertible notes and private equity to buy more Bitcoin and expand its operations. Once merged, it will trade under the Nasdaq ticker symbol XXI, offering investors a regulated way to access Bitcoin without managing private keys.

The model mirrors Strategy’s (formerly MicroStrategy) pivot to a Bitcoin-first strategy, cementing Twenty One as part of the next wave of corporate crypto giants.

Crypto’s transformation continues at breakneck speed. The Fed’s policy reversal marks a definitive break from the restrictive posture of recent years, aligning the central bank with other federal regulators in supporting responsible crypto engagement by banks.

This shift comes as Bitcoin shows resilience amid macro uncertainty and institutional products like ETFs continue to attract capital. Meanwhile, governments and corporations alike are accelerating real-world blockchain adoption – from tokenized real estate to billion-dollar BTC treasuries.

With U.S.–El Salvador collaboration unfolding and massive new players like Twenty One entering the scene, the traditional barriers between crypto and global finance are quickly dissolving.