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According to a report by Jinse Finance, U.S. banking groups are urging the country's banking regulators to delay decisions on granting banking licenses to cryptocurrency companies until the details of these companies' plans are made more transparent. They claim that allowing these applications would represent a "fundamental departure" from existing policy. The American Bankers Association and other industry organizations representing banks and credit unions sent a letter to the Office of the Comptroller of the Currency (OCC) on Thursday, stating that approving national banking licenses for cryptocurrency companies—including stablecoin issuer Circle Internet Group and Ripple Labs—"would raise significant policy and procedural concerns." These groups argue: "There are major policy and legal questions as to whether the proposed business plans of the applicants involve the types of fiduciary activities performed by national trust banks." Circle, Ripple, and Fidelity Digital Assets are among the recent batch of cryptocurrency companies applying for banking licenses from the OCC. Obtaining these licenses would essentially allow them to become their own banks, enabling faster payment settlements and subjecting them to federal regulation, which would allow them to operate in all states across the U.S.

According to a report by Jinse Finance, the Barclays rates strategy team has warned in its latest report that dismissing Federal Reserve Chair Jerome Powell would not accelerate the FOMC’s rate-cutting process; on the contrary, it could trigger a policy backlash. The report states: “If the market questions the Fed’s independence, leading to heightened inflation expectations and a rise in long-term yields, the FOMC may even extend its pause or resume rate hikes.” The strategists believe that even appointing a new Fed chair would be unlikely to substantially ease monetary policy, as consensus would still need to be reached with the other 11 FOMC voting members. (Jin10)