Each month, the Fireblocks policy team takes stock of policy developments around the world that matter to our clients and to our business. Here, I share my views on the March developments I think counted the most—at times intentionally highlighting announcements that didn’t make the headlines.
Starting counter-sun-wise, Washington DC saw the U.S. commitment to becoming digital asset centre of gravity take more and more concrete shape. Much has been written about the Federal Bitcoin Reserve and the rapid progress of the U.S. stablecoin legislations through Congress. What I’d like to highlight are two agency-level developments that are making an immediate impact on the ability of U.S. banks to step up their digital assets investments.
Firstly, the Office of the Comptroller of the Currency (OCC) released Interpretive Letter 1183, clarifying that federally-chartered banks may participate in crypto custody and stablecoin activities, as well as independent node verification (i.e., distributed ledger technology). Secondly, FDIC Chair Travis Hill announced plans for the agency to remove “reputational risk” from its bank supervision guidance in a move that would ease risk mitigation for crypto companies.
South of the border, in Brazil, we have a fascinating proposal for partial cryptocurrency salary payments (capped at 50%). It also provides for financial education for employees opting into crypto pay. In my view, this seeks to legitimize the crypto salary payments industry while simultaneously bringing more revenues on the radar of tax authorities. It’s an interesting approach—trying to do so with a carrot, rather than with a stick.
Across the Atlantic, I see a spike in discussions about tech-enabled growth in both the EU and the UK. Yet I see less of this rhetoric put into convincing legislative action. The most vital case in point, the EU fast-tracked plans for a “Savings and Investment Union” i.e. the European strategy to strengthen its capital markets—including by exiting dormant retail deposits and ushering in tokenization.
My understanding is that putting financial instruments on-chain is an indispensable component of this strategy—but the EU has yet to demonstrate conviction in meaningfully integrating blockchain and tokenized money in the settlement process.
Speaking of the Middle East, I was interested to see the Dubai Financial Services Authority launching a tokenization sandbox. Yet I am concerned that sandboxes have a poor track record in mobilizing institutional capital and driving securities markets innovation. We hope the DFSA’s ambitions won’t get constrained to a sandbox environment alone.
What fascinates me each month is the amount of regulatory activity in East Asia. Like dominos, regional economies are falling in line to adapt their rules for digital asset intermediaries—and some, for stablecoin issuers. It is also worth noting how quickly crypto-permissive developments have accelerated since the shift in tone from Washington.
To illustrate: intermediary rules are under review – with new developments this month – in Indonesia, Korea, Taiwan, Thailand, Vietnam, Japan, and Hong Kong.
In parallel, Japan signaled new permissiveness to bank-issued stablecoins. As a reminder, the rules have been in place since 2023, but we have yet to see any issuances. This now appears poised to change.
Tokyo developments point to a trend I find noteworthy: the rise of non-USD-backed stablecoins. It’s hard not to link this to trade tensions.
Last, but certainly not least, our colleagues in Australia finally saw a plan from their government on regulating crypto assets. This was overdue, but what I find especially interesting is that it came before the elections. This is a strong signal—echoing the more obvious one in the U.S.—that electorates are putting pressure on officials to have national crypto strategies.
In a month marked by geopolitical tension and economic recalibration, it’s the quiet but deliberate regulatory shifts that will shape the digital asset landscape in 2025 and beyond. As frameworks evolve across continents, the global financial system is inching toward a new equilibrium—one where digital assets aren’t fringe, but fundamental.
