**SEC Says Broker-Dealers Must Control Crypto Private Keys to Protect Customers**

The SEC has made it clear: if broker-dealers want to handle crypto asset securities, they must have full control over the private keys. This is part of updated rules to ensure customer protection in the crypto space.

– These rules apply to tokenized stocks and bonds, meaning the SEC is watching blockchain-based securities more closely.
– Firms must set up strong written policies to keep private keys safe from hacks, loss, or misuse.
– If a broker-dealer can’t prove their systems are secure, they’re not allowed to say they have custody of those assets.
– The SEC also wants firms to be ready for possible blockchain failures or legal issues like freezes or seizures of assets.

**Bitcoin Hangs Around $86K as Market Remains Unsteady**

Bitcoin is trading near $86,000, but analysts say the market feels fragile. Low trading volume, cautious investors, and rising bets against Bitcoin are making things uncertain.

– Traders are unsure if the Federal Reserve will cut interest rates soon.
– Many are playing it safe, leading to less risk-taking in crypto.

**Coinbase Wants to Be the ‘Everything Exchange’**

Coinbase is expanding big time. It’s adding new features to go beyond just crypto trading.

– Soon, U.S. users will be able to trade stocks and ETFs with no commission.
– Coinbase is working with Kalshi for prediction markets and with Jupiter to add Solana DEX trading inside its main app.
– The company is launching its own stablecoins and building better payment tools for developers and businesses.
– It’s also adding simplified futures trading for U.S. users directly in its retail app.
– Other new services include AI-powered financial advice (Coinbase Advisor), business banking (Coinbase Business), and deeper integration with its Base App.

**Federal Reserve Eases Crypto Rules for State Banks**

The Fed has rolled back a tough 2023 policy that made it hard for state banks to get involved with crypto.

– Now, uninsured state banks can ask for permission to offer new crypto services on a case-by-case basis.
– This shift could help banks like Custodia Bank, which were previously blocked from expanding due to old rules.
– It also shows that regulators might be softening their stance on crypto under current leadership.

**India Approves Coinbase’s Investment in CoinDCX**

Coinbase got the green light from India’s competition watchdog to invest in CoinDCX, one of the country’s top crypto exchanges.

– While the deal’s value wasn’t shared, previous reports put CoinDCX at a $2.45 billion valuation.
– This move helps Coinbase grow again in India after earlier regulatory issues forced it to pause operations.
– India remains a top crypto market, leading global adoption rankings for three years straight.

**SoFi Launches Its Own Stablecoin, SoFiUSD**

SoFi has released a new stablecoin called SoFiUSD. It’s backed 1:1 by U.S. dollars and aims to make payments faster and cheaper for banks and fintech companies.

– SoFiUSD works on public blockchains like Ethereum.
– Other companies can use it as-is or rebrand it under their own names.
– This follows SoFi’s move into crypto services, where users can already buy and hold over 30 cryptocurrencies in the app.

**What’s Coming Up**

– U.S. PCE inflation data is coming out Friday at 8:30 a.m. ET.
– Fed official John Williams is also scheduled to speak at the same time.

Stay updated with the latest trends and developments in crypto, finance, and blockchain technology.