Tyler Warner pens Morning Minute, providing daily insights. Views expressed are personal and not reflective of Decrypt’s stance. Discover our concise daily news show available on Apple Podcasts or Spotify.
At 6:32 PM ET Tuesday, shortly before a self-imposed deadline to target Iranian infrastructure, Trump announced on Truth Social a “double sided CEASEFIRE.” He proposed halting attacks for two weeks if Iran reopened the Strait of Hormuz immediately, referencing an Iranian ten-point proposal as negotiation groundwork. Iran’s Supreme National Security Council formally accepted, with Israel concurring, according to two White House officials speaking with Reuters.
Markets reacted instantly: Bitcoin climbed from below $68,000 to $72,700, reversing a morning selloff triggered by Trump’s threatening post. Oil prices plummeted over 20%, while US stock futures surged, the Nasdaq rising 3.5% and Dow increasing more than 1,000 points.
Analysts suggested that reopening the Strait could propel Bitcoin to $90,000+. Though two weeks isn’t peace, an open Strait could lower oil prices, offering markets relief since late February. The countdown begins anew.
The FDIC retracted its proposed regulations under the GENIUS Act on Tuesday, detailing how banks can issue payment stablecoins via subsidiaries. This includes reserve standards, mandatory redemption at par, liquidity controls, audits, and custody requirements, explicitly excluding stablecoins from FDIC deposit insurance.
This detail is crucial for institutional adoption: Banks can issue stablecoins with clear rules, but unlike bank deposits, a stablecoin run won’t be government-backed, as noted by the IMF yesterday.
MSBT debuts today. The SEC approved Morgan Stanley Bitcoin Trust on Tuesday, set to trade on NYSE Arca Wednesday morning at a 0.14% fee—the lowest among spot Bitcoin ETFs. For comparison, BlackRock’s IBIT and Fidelity’s FBTC charge 0.25%. Morgan Stanley’s 16,000 financial advisors can now recommend its crypto product for “opportunistic growth,” as per last year’s Global Investment Committee recommendation. Bloomberg analyst Eric Balchunas described this as a “captive audience.”
SEC Chair Paul Atkins indicated Tuesday that the Commission is nearing a “Reg Crypto” framework to address crypto fundraising, suggesting a tailored regulatory regime instead of fitting digital assets into existing exemptions like Reg A or D.
Completing the US regulatory stack hinges on these developments:
U.S. Attorney Jay Clayton countered Roman Storm’s legal move to dismiss charges before a retrial. Storm’s defense referenced Cox Communications v. Sony Music, asserting non-liability for ISPs aware of user infringement—arguing similarly for software developers. Clayton dismissed this, noting Storm faces criminal charges unrelated to the civil copyright case in question.