The crypto market roared back to life this week as a key development in stablecoin regulation triggered a bullish wave across digital asset stocks. Leading the charge was Coinbase Global Inc. (NASDAQ:COIN), whose stock spiked as much as 17% to $297.44 on Wednesday following the U.S. Senate’s passage of the GENIUS Act — a landmark bill focused on the oversight of stablecoins.

While the rally slightly cooled by the session’s close, Coinbase still locked in a 16% gain, pushing its year-to-date performance into the green with a 20% overall increase. The momentum didn’t stop there: Circle, the issuer of the USDC stablecoin and a recent IPO on the New York Stock Exchange, jumped 34% during the same session.

Why Stablecoin Regulation Matters

The GENIUS Act, passed Tuesday, aims to create a clear legal framework for stablecoin regulation, addressing long-standing concerns over transparency, consumer protection, and systemic risk. Stablecoins are designed to maintain a 1:1 peg with fiat currencies like the U.S. dollar, typically backed by cash or short-term U.S. Treasurys.

The clarity provided by the new legislation is expected to encourage broader adoption, reduce regulatory uncertainty, and allow more firms to issue compliant stablecoins.

For Coinbase, this bill is particularly significant. While crypto trading remains its largest revenue stream, stablecoins rank second. Coinbase co-founded the USDC stablecoin with Circle and receives 50% of Circle’s residual revenue generated from the assets backing USDC’s circulation. That exposure makes Coinbase a major stakeholder in the evolution of stablecoin infrastructure.

Circle’s IPO Signals Wall Street’s Growing Confidence

Circle’s recent IPO made headlines as one of 2025’s largest tech market debuts. On its first trading day, Circle stock soared by a massive 238%, reflecting strong investor confidence in the future of regulated digital dollars. Although the hype has since cooled, shares are still up 120% over the past month — including a fresh 20% spike tied directly to the Senate’s decision.

Now publicly listed, Circle joins Coinbase as a major Wall Street-facing player with high exposure to stablecoins, creating a new level of legitimacy for the sector.

Meanwhile, President Biden’s administration has shown cautious optimism toward stablecoins. His family has ties to World Liberty Financial, which launched a USD-backed stablecoin (USD1) earlier this year. This adds political tailwinds to the sector’s rising profile.

JPMorgan’s Entry Confirms Stablecoin Legitimacy

Even long-time skeptics of crypto are now entering the space. JPMorgan Chase & Co. (NYSE:JPM), whose CEO Jamie Dimon has previously called cryptocurrencies “worthless,” is now testing JPMD, a blockchain-based token designed to settle institutional transactions. While not a retail stablecoin, JPMD mirrors the functionality of stablecoins and marks a shift in institutional thinking.

With top banks like JPMorgan and key players like Coinbase and Circle deepening their involvement, stablecoin regulation may soon be a cornerstone of the broader financial system.

What’s Next for Investors?

Investors eyeing the crypto space should take note: stablecoin regulation is no longer speculative — it’s policy. That changes the risk-reward profile for major crypto-linked stocks like Coinbase and Circle.

As the GENIUS Act moves to implementation, more traditional financial players are likely to follow JPMorgan’s lead, either by launching their own digital tokens or partnering with existing stablecoin providers.

The long-awaited regulatory clarity, combined with booming IPO momentum and bipartisan support, suggests that stablecoins may serve as the gateway for broader crypto adoption — both on Wall Street and Main Street.

With Coinbase (NASDAQ:COIN), Circle, and JPMorgan (NYSE:JPM) all showing significant moves tied to stablecoin news, it’s clear that this niche is evolving into a foundational part of the digital economy. For investors, keeping an eye on the stablecoin space could offer a strong edge in understanding the next wave of crypto growth.

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New York State officials have cracked down on a major crypto scam, freezing $300,000 and recovering another $140,000 in stolen cryptocurrency. The fraudulent scheme, which targeted Russian-speaking individuals through fake social media ads, has resulted in over $1 million in losses—mostly in Brooklyn.

According to a joint statement released Wednesday by the Brooklyn District Attorney’s office, the New York State Attorney General’s office, and the Department of Financial Services (DFS), the investigation has so far identified more than 300 victims.

“This crypto investment scam preyed on vulnerable people looking to invest wisely,” said New York Attorney General Letitia James. “Our offices acted swiftly to freeze assets and protect New Yorkers. I urge everyone to be cautious when seeing crypto ads online.”

Social Media Platforms Fuel Crypto Fraud

The scammers behind this crypto investment scam used “Black Hat” advertisements on platforms like Facebook, primarily in Russian. These ads led users to fake investment websites that claimed to be licensed with New York’s BitLicense—a requirement for legitimate cryptocurrency services in the state.

Meta Platforms Inc. (NASDAQ:META), the parent company of Facebook, responded by removing over 700 misleading ads after being notified by authorities. However, the impact had already been severe, with widespread financial losses.

This incident is yet another example of how fraudsters exploit social media to distribute fake offers. The promise of high returns in crypto—paired with convincing visual designs and false endorsements—makes scams like this particularly effective.

Fake Licenses and AI-Powered Deception

One notable aspect of this crypto investment scam was the scammers’ use of a counterfeit claim: that their platform held a BitLicense, New York’s regulatory framework for crypto businesses. This added a false layer of credibility, convincing many users the investment was legitimate.

Furthermore, experts warn that artificial intelligence is playing a growing role in such scams. AI can now create deepfake videos, clone voices, and generate fake testimonials—making it harder than ever to distinguish legitimate investments from fraudulent ones.

According to a 2024 report from blockchain analytics firm Chainalysis, roughly $51 billion in illicit digital asset transactions were recorded this year alone. While ransomware-related payments dropped by 35%, crypto scams—especially those powered by AI—remain a growing threat.

Ripple and the Ripple Effect: A Broader Trend

This isn’t the first time crypto scammers have used social media to impersonate major players. Ripple CEO Brad Garlinghouse has been a frequent target, with scammers creating fake XRP airdrops using his likeness and name. Ripple’s own legal battles with the U.S. Securities and Exchange Commission (SEC) have kept it in the spotlight, making it a magnet for fraudulent impersonation.

Ripple Labs Inc. (XRP), while not publicly traded like traditional stocks, remains one of the most followed cryptocurrencies. Its visibility makes it an easy target for social engineering tactics.

How to Avoid a Crypto Investment Scam

To avoid becoming a victim of a crypto investment scam, here are a few key tips:

• Verify licenses: Any platform claiming to be registered should be verifiable via government or regulatory websites. 
• Avoid social media ads: Scammers often buy ad space to look legitimate—don’t click investment links from unknown sources. 
• Use trusted exchanges: Stick to well-known platforms like Coinbase (NASDAQ:COIN) or Kraken, and avoid unfamiliar sites. 
• Be skeptical of guarantees: No legitimate investment offers guaranteed returns in crypto. 

As crypto adoption continues to rise, so does the risk of falling prey to scams. Vigilance and education remain the best forms of defense.

If you believe you’ve been targeted by a crypto scam, report the incident to your local financial authority or the FTC immediately. Staying informed, asking questions, and verifying credentials can go a long way. As crypto markets evolve, so should our caution—and our commitment to protecting personal and financial security.

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These first-of-kind money market rates transform Aave pool activity into conventional overnight rates to support interest rate derivatives and floating rate loans.

NEW YORK, June 17, 2025 /CNW/ — CoinDesk Indices, a leading provider of digital-asset benchmarks, in collaboration with Sentora, a pioneer in institutional DeFi solutions, today announced the launch of CoinDesk Overnight Rates (CDOR), the first benchmark interest rates that draw upon Aave’s lending pools to provide standardized overnight rates for major stablecoins.

CDOR to Support Industry Growth

CDOR rates are designed to support markets for hedging funding costs, securing yields, and developing cross-currency rate strategies. Calculated and published daily, these rates are accessible to exchanges, market makers, protocol treasuries, and structured-product desks.

Stani Kulechov, Founder of Aave Labs says, “CDOR is a new benchmark interest rate built on Aave’s deep onchain liquidity. It provides a transparent, risk-free lending rate that unlocks new use cases for stablecoins, such as derivatives and fixed-income products, enabling more efficient, scalable, and automated financial markets.”

The first CDOR rates utilize activity on Aave v3’s Core variable borrow pools for USDC and USDT. CoinDesk Indices has released a methodology that converts this on-chain activity into a historical daily (or “overnight”) rate that can be aggregated over longer periods. These pools, whose rates react instantly to changes to supply and demand, are important facilities in decentralized finance that reflect activity of a large population of borrowers and lenders.

Andy Baehr, CFA, Head of Product and Research, CoinDesk Indices says “Stablecoins are expected to grow into the trillions, but there is no institutional-grade money market for trading and hedging term rates. CDOR rates provide a cornerstone element for the stablecoin rates markets, using the same conventions as TradFi benchmarks, which support the largest derivatives markets in the world.”

Anthony DeMartino, CEO, Sentora says, “Sentora’s mission is to make on-chain finance as efficient as traditional finance. With CDOR rates you can switch from floating to fixed funding, or speculate on the curve, in a single, capital-efficient trade; a crucial building block that’s been missing for years. These rates will enable new DeFi use cases and Sentora is happy to support the evolution of capital markets on-chain.”

Liquidity Providers Signal Support for CDOR

Exchange-traded futures contracts, currently under development, will settle against CDOR rates and will provide market participants with new and powerful tools for risk management and strategy implementation. Galaxy, FalconX, Flowdesk and Tyr Capital will act as founding market makers.

Ed Hindi, CIO, Tyr Capital says, “CDOR rates enable the creation of a broad range of financial derivatives that are currently missing in the crypto financial ecosystem. This addition alongside a clearer regulatory environment should exponentially increase the interaction of institutional players with DeFi. The ability to efficiently manage interest rate risk is a game changer for the CeDeFi markets. Tyr Capital is thrilled to be more widely involved in making the TradFi and crypto relationship more symbiotic.”

Jason Urban, Global Head of Trading at Galaxy says, “With CDOR rates, the market gains a powerful rate signal that reflects real-time borrower demand and enables smart, scalable trading strategies. It’s a meaningful step in bridging DeFi and traditional finance, making stablecoin markets more accessible and actionable for sophisticated investors.”

Joshua Lim, Global Co-Head of Markets, FalconX says, “We are pleased to partner with CoinDesk Indices and Sentora on their CDOR product suite. The next phase of growth in crypto will be driven by convergence of CeFi and DeFi capital markets.”

Reed Werbitt, US CEO, Flowdesk says, “The introduction of CDOR will enable broader institutional adoption and participation in crypto credit markets, enhancing capital efficiency and risk management across our trading strategies. The ability to mitigate interest rate risk is a critical foundation of a functioning capital market, and we’re excited to be working with Sentora to bring this product to fruition.”

By turning on-chain market activity into standardized interest rates, CDOR lays the groundwork for exchange-traded money-market futures and other rate-based derivatives.

For additional information on CDOR please visit https://sentora.com/cdor-stablecoin-rate.

View the CoinDesk Overnight Rates (CDOR) – Aave | USDC and Aave | USDT.

About CoinDesk Indices

Since 2014, CoinDesk Indices has been at the forefront of the digital asset revolution, empowering investors globally. A portfolio company of the Bullish Group, its indices form the foundation of the world’s largest digital asset products. CoinDesk Indices is regulated in the UK by the Financial Conduct Authority and offers products across multi-asset indices, reference rates, and strategies. Flagships such as the CoinDesk Bitcoin Price Index and the CoinDesk 20 Index set the industry standard for measuring, trading, and investing in digital assets. With tens of billions of dollars in benchmarked assets, CoinDesk Indices is a trusted partner.

About Sentora

Sentora, born from the recent merger between DeFi technology specialist IntoTheBlock and financial solutions provider Trident Digital, is a leader in developing institutional-grade DeFi solutions, yield strategies and risk-management infrastructure. Sentora’s solutions connect leading digital asset firms and large capital allocators to the advantages of decentralized finance.

About Aave Protocol

Aave is the leading decentralized, non-custodial liquidity protocol, with over $40 billion in total value locked (TVL). It allows users to earn yield on deposits and borrow a wide range of digital assets without intermediaries. Core features include risk management tools such as supply and borrow caps, flash loans, and GHO — a decentralized, overcollateralized stablecoin native to the protocol. Aave is fully governed by the Aave Decentralized Autonomous Organization (DAO). Learn more or participate in governance at https://governance.aave.com.

Disclaimer

CoinDesk is a portfolio company of the Bullish Group. CoinDesk Indices, Inc., including CC Data Limited, its affiliate which performs certain outsourced administration and calculation services on its behalf (collectively, “CoinDesk Indices”), does not sponsor, endorse, sell, promote, or manage any investment offered by any third party that seeks to provide an investment return based on the performance of any index. CoinDesk Indices is neither an investment adviser nor a commodity trading advisor and makes no representation regarding the advisability of making an investment linked to any CoinDesk Indices index. CoinDesk Indices does not act as a fiduciary. A decision to invest in any asset linked to a CoinDesk Indices index should not be made in reliance on any of the statements set forth in this document or elsewhere by CoinDesk Indices. All content displayed here or otherwise used in connection with any CoinDesk Indices index (the “Content”) is owned by CoinDesk Indices and/or its third-party data providers and licensors, unless stated otherwise by CoinDesk Indices. CoinDesk Indices does not guarantee the accuracy, completeness, timeliness, adequacy, validity, or availability of any of the Content. CoinDesk Indices is not responsible for any errors or omissions, regardless of the cause, in the results obtained from the use of any of the Content. CoinDesk Indices does not assume any obligation to update the Content following publication in any form or format. © 2025 CoinDesk Indices, Inc. All rights reserved.

Forward-Looking Statements: This press release may include “forward-looking statements” relating to future events or the Bullish Group’s future financial or operating performance, business strategy, and potential market opportunity. Such forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Bullish Group, are inherently uncertain and are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. You should not place undue reliance on any such forward-looking statements, which speak only as of the date they are made, and the Bullish Group undertakes no duty to update these forward-looking statements.

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Coinbase (NASDAQ:COIN) is making a bold move that could reshape the future of stock trading in the United States. The crypto exchange is seeking approval from the U.S. Securities and Exchange Commission (SEC) to offer tokenized equities—digital representations of stocks issued and traded on the blockchain.

If the SEC greenlights the request, Coinbase would be able to launch a platform where users can trade these tokenized versions of traditional equities. This would put Coinbase in direct competition with major brokerages like Robinhood (NASDAQ:HOOD) and Charles Schwab (NYSE:SCHW) while marking a major leap in the integration of traditional finance with blockchain innovation.

What Are Tokenized Equities?

Tokenized equities are essentially digital tokens that represent ownership in a company’s stock. Rather than holding shares in the conventional way through a brokerage, investors would hold blockchain-based tokens that track the value and performance of the underlying equity.

This format offers a range of potential benefits:

• Lower trading costs 
• Near-instant settlement 
• 24/7 access to markets 

According to Coinbase Chief Legal Officer Paul Grewal, this technology represents a “huge priority” for the company’s future strategy.

Regulatory Roadblocks and the SEC’s Role

Despite the potential, tokenized equities currently face regulatory hurdles in the U.S. Under current law, companies offering securities must be registered broker-dealers. Coinbase’s bid to offer these new products hinges on receiving either a no-action letter or exemptive relief from the SEC.

A no-action letter would indicate that the SEC staff does not intend to pursue enforcement if Coinbase launches its tokenized equity offering. However, Grewal did not confirm whether Coinbase has officially submitted such a request.

Coinbase’s move comes after a rocky regulatory past. The SEC, under the Biden administration, sued the company in 2023 for allegedly operating as an unregistered securities exchange. That lawsuit was dropped this year under the Trump administration, which has since adopted a more crypto-friendly stance. The administration has also formed a crypto task force focused on developing clearer rules for digital assets.

Competition and the Global Race

Coinbase is not alone in this space. Rival exchange Kraken recently announced it would offer tokenized U.S. equities—branded as xStocks—in select markets outside the U.S. Other firms globally are experimenting with similar models, particularly in jurisdictions with more defined digital asset frameworks.

Still, the U.S. market remains the holy grail. If Coinbase successfully navigates regulatory challenges, it would be the first to bring tokenized equities to American investors at scale—potentially unlocking a huge new business segment.

Key Challenges for Tokenized Equity Adoption

While the technology is promising, critics argue that several key barriers remain:

• Lack of liquidity in secondary markets 
• Unclear global standards for tokenized assets 
• Investor protection and transparency concerns 

A recent report by the World Economic Forum highlighted these challenges, warning that despite the hype, tokenized stocks may face a slow path to mainstream adoption without unified regulatory standards and robust trading infrastructure.

The Bigger Picture: Politics, Crypto, and Wall Street

The timing of Coinbase’s push is not accidental. Former President Donald Trump has made crypto a central talking point of his 2024 campaign, attracting donations from industry leaders and promising regulatory reform. Bitcoin (BTC-USD) and other digital assets have surged in response to this friendlier political climate.

By aligning itself with this momentum, Coinbase is seizing a strategic opportunity to expand beyond crypto trading and into tokenized financial services. If successful, the tokenized equities move could transform Coinbase from a crypto exchange into a full-service financial platform built on blockchain rails.

Final Thoughts: A Tipping Point for Tokenized Finance?

The introduction of tokenized equities in the U.S. would be a game-changer, offering investors new ways to engage with traditional markets through blockchain technology. Whether the SEC grants Coinbase the necessary approvals remains to be seen, but the implications are massive.

If approved, Coinbase could become the first major U.S. platform to offer blockchain-based stock trading—blurring the lines between Wall Street and Web3.

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