📌 TOPINDIATOURS Breaking crypto: Blockchain Adoption Pushes Ahead Despite U.S. Reg

Blockchain adoption continues to expand across institutional finance even as U.S. regulatory clarity remains elusive, according to a new analyst note from Clear Street.

The firm argues that while delays to the proposed Clarity Act may slow parts of the domestic crypto market, they have not derailed broader institutional engagement with tokenization, stablecoins and on-chain financial infrastructure.

The Senate Banking Committee postponed a scheduled markup of the Clarity Act following opposition from Coinbase. Although the Senate Agriculture Committee is still expected to review the bill on January 27, Clear Street analyst Owen Lau warns that the overall legislative timeline could slip to March or later.

Concerns Over Stablecoin Competition

In comments cited by Clear Street, Coinbase CEO Brian Armstrong outlined several concerns with the draft legislation, most notably the risk that bank lobbying could limit the ability of crypto exchanges to pass stablecoin rewards through to users.

Clear Street views this outcome as increasingly likely outside of narrowly defined activity-based rewards such as payments, loyalty programs, wallets or staking.

Such restrictions, the firm argues, would tilt the competitive landscape in favor of traditional banks by allowing them to retain interest spreads while reducing consumer benefits associated with stablecoins.

“In our view the bill risks shifting from its original goal of promoting crypto innovation toward protecting bank margins and constraining competition,” writes Lau.

Clear Street sees two possible paths forward: the crypto industry either accepts legislation with unfavorable terms or disengages from the process entirely. Either scenario could slow U.S. blockchain adoption and weaken the global competitiveness of U.S.-issued stablecoins.

Institutional Momentum Continues Without a Market Structure Bill

Despite these regulatory headwinds, Clear Street stressed that blockchain adoption has continued to advance even in the absence of a comprehensive U.S. market structure framework.

Major financial institutions including Vanguard, Charles Schwab, Bank of America, Morgan Stanley, JP Morgan Chase, the New York Stock Exchange and Bermuda-based entities have all expanded their engagement with blockchain-based products and infrastructure.

Growth areas highlighted by the firm include tokenized money market funds, tokenized equities and prediction markets. Clear Street added that while a supportive policy backdrop would likely accelerate adoption, institutional participation has proven resilient without favorable legislation.

Revised Outlooks for Crypto-Exposed Firms

Reflecting both regulatory uncertainty and evolving market conditions, Clear Street updates its forecasts and price targets for several crypto-linked companies.

For Bakkt (BLSH), the firm raised its fourth-quarter 2025 adjusted EBITDA estimate to $37.8 million from $35.5 million, driven by stronger-than-expected transaction revenue.

Full-year 2026 and 2027 adjusted EBITDA estimates were also modestly increased on continued strength in subscription and services revenue. However, Clear Street lowered its price target to $50 from $57 while maintaining a Buy rating.

For Coinbase, Clear Street reduced its fourth-quarter 2025 adjusted EBITDA estimate to $630 million from $748 million citing weaker-than-expected December trading volumes. While consensus estimates of $731 million appear optimistic, the firm notes that the long-term blockchain adoption thesis remains intact.

Coinbase’s price target was cut to $344 from $415 to reflect lower earnings expectations and a compressed industry valuation multiple with the Buy rating unchanged.

Stablecoin Growth Still Intact

Clear Street also updated its outlook for Circle (CRCL), lowering its fourth-quarter 2025 adjusted EBITDA estimate to $112 million from $116 million due to a lower-than-expected average USDC market capitalization. The firm estimates that USDC’s ending market cap rose 72% year-on-year and 2% quarter-on-quarter during the period.

While near-term estimates were trimmed, Clear Street said longer-term adoption drivers remain intact, including prediction markets, tokenization, artificial intelligence applications and cross-border payments. Growth in non-core income streams could also provide upside, the firm added. Circle’s price target was reduced to $85 from $110 with a Hold rating maintained.

Outlook

Clear Street concludes that while regulatory delays and political compromise may weigh on sentiment in the near term, blockchain adoption is increasingly being driven by institutional demand rather than legislative momentum alone.

“Institutional use cases continue to expand even without a favorable Clarity Act,” the firm said, adding that clearer policy would accelerate adoption — but its absence has not stopped it.

The post Blockchain Adoption Pushes Ahead Despite U.S. Regulatory Uncertainty: Analyst appeared first on Cryptonews.

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📌 TOPINDIATOURS Eksklusif crypto: UK Regulators “Exposing Consumers to Serious Har

The regulators in the U.K. are being cautioned that their existing approach to artificial intelligence in financial services may expose consumers to severe harm, as loopholes in regulation increase when AI is taking off more rapidly in the industry.

The Treasury Select Committee has issued this warning, saying the Bank of England, the Financial Conduct Authority, and HM Treasury have been over-reliant on a wait-and-see strategy when AI is already in the heart of financial decision-making.

In a report published on January 20, the committee said the pace of AI adoption has outstripped the regulators’ ability to manage its risks.

Approximately 75% of financial services companies in the UK are currently employing AI, with the most intense adoption amongst insurers and major global banks.

Although MPs admitted that AI is able to enhance efficiency, accelerate customer services, and enhance cyber defenses, they concluded that all that is being compromised by unaddressed risks to both consumers and financial stability.

Lawmakers Say UK’s AI Approach in Finance Is Too Reactive

Currently, there is no specific AI legislation for financial services in the UK. Rather, regulators use pre-existing rules and claim they are flexible enough to include new technologies.

The FCA has pointed to the Consumer Duty and the Senior Managers and Certification Regime as providing sufficient protection, while the Bank of England has said its role is to respond when problems arise rather than regulate AI in advance.

The committee rejected this position, saying it places too much responsibility on firms to interpret complex rules on their own.

AI-driven decisions in credit and insurance are often opaque, making it difficult for customers to understand or challenge outcomes.

Automated product tailoring could deepen financial exclusion, particularly for vulnerable groups. Unregulated financial advice generated by AI tools risks misleading users, while the use of AI by criminals could increase fraud.

The committee said these issues are not hypothetical and require more than monitoring after the fact.

Regulators have taken some steps, including the creation of an AI Consortium and voluntary testing schemes such as the FCA’s AI Live Testing and Supercharged Sandbox.

However, MPs said these initiatives reach only a small number of firms and do not provide the clarity the wider market needs.

Industry participants told the committee that the current approach is reactive, leaving firms uncertain about accountability, especially when AI systems behave in unpredictable ways.

AI Risks Rise as UK Regulators Lag on Testing and Oversight

The report also raised concerns about financial stability, as AI could amplify cyber risks, concentrate operational dependence on a small number of US-based cloud providers, and intensify herding behavior in markets.

Despite this, neither the FCA nor the Bank of England currently runs AI-specific stress tests. Members of the Bank’s Financial Policy Committee said such testing could be valuable, but no timetable has been set.

Reliance on third-party technology providers was another focus.

Although Parliament created the Critical Third Parties Regime in 2023 to give regulators oversight of firms providing essential services, no major AI or cloud provider has yet been designated.

This delay persists despite high-profile outages, including an Amazon Web Services disruption in October 2025 that affected major UK banks.

The committee said the slow rollout of the regime leaves the financial system exposed.

The findings land as the UK continues to promote a pro-innovation, principles-based AI strategy aimed at supporting growth while avoiding heavy-handed regulation.

The government has backed this stance through initiatives such as the AI Opportunities Action Plan and the AI Safety Institute.

However, MPs said ambition must be matched with action.

The post UK Regulators “Exposing Consumers to Serious Harm” as AI Oversight Gaps Widen — Committee Warns appeared first on Cryptonews.

🔗 Sumber: cryptonews.com