Treasury Frames Crypto for Dollar Dominance as Coinbase Enforces MiCA

The U.S. Treasury plans executive-level crypto rules to defend dollar dominance, while European exchange restrictions reshape the stablecoin market.

1. Treasury Secretary Frames Crypto as Key to US Dollar Dominance: Treasury Secretary Scott Bessent said U.S. digital asset supremacy is crucial for maintaining global dollar dominance. The Treasury will coordinate with the SEC and CFTC to create agency-level rules following the legislative failure of the Clarity Act.

2. Coinbase to Convert Non-Compliant EEA Stablecoin Balances: Coinbase will swap remaining EEA retail balances in 14 non-MiCA stablecoins into $USDC or other supported assets on Oct. 30. Affected tokens include $USDT, $PYUSD, and $DAI, with trading already halted.

3. CFTC Investigates Polymarket Over 2022 Settlement Terms: The CFTC is reviewing whether prediction platform Polymarket violated a 2022 settlement that required it to block U.S. users. The inquiry targets historical geolocation controls and onboarding processes for its licensed domestic unit.

4. Galaxy Digital Reports $323 Million Q3 Profit: Galaxy Digital posted $323 million in third-quarter net income, rebounding from a prior loss. Data center operations yielded $79 million in adjusted gross profit after delivering capacity to CoreWeave.

5. USDC Surpasses Tether in Euro Trading Volume: Circle's $USDC now accounts for 56 percent of euro stablecoin trading volume, up from 10 percent in January 2024. The shift follows regional exchange restrictions that penalized $USDT.

Numbers: $BTC trades at $81,403, up 2.0 percent over 24 hours, while total market capitalization stands at $2.70 trillion.

Watch:

• Joint agency rulemaking proposals from the Treasury, SEC, and CFTC establishing digital asset operating standards.
• Execution of Coinbase's stablecoin conversion batch on Oct. 30.