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Senate hearing for U.S. bank regulators thrusts crypto into starring role

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As the U.S. Senate Banking Committee opened its routine hearing on oversight of the bank regulators on Thursday, a flurry of crypto topics had already dominated the conversation, including a significant stablecoin policy proposal from the Office of the Comptroller of the Currency.

On the eve of the U.S. banking watchdogs’ testimony to lawmakers, the OCC issued a proposal to address most of its rulemaking requirements under the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, the stablecoin law signed last year. The package of policies would institute standards for U.S. stablecoin issuers, such as their reserve requirements, how the firms will maintain custody of assets, how customers will redeem their tokens and the process by which businesses will seek registration.

“The OCC has given thoughtful consideration to a proposed regulatory framework in which the stablecoin industry can flourish in a safe and sound manner,” said OCC chief Jonathan Gould in a statement. His agency noted that it still has some other rules on money-laundering and sanctions protections to work out with the wider Treasury Department.

While Gould and other regulators were set to testify before the senators, Federal Reserve Vice Chair for Supervision Michelle Bowman had already posted her testimony, which opened with discussion of the GENIUS Act and digital assets.

She said the Fed is “working with the other banking regulators to develop regulations that include capital and liquidity for stablecoin issuers as required by the GENIUS Act.”

Bowman, who leads banking regulation for the Fed, said it’s trying to “provide clarity regarding the treatment of digital assets to ensure that the banking system is well placed to support digital asset activities.” That includes, she said, “clarity on the permissibility of activities and willingness to provide regulatory feedback on proposed new use cases.”

The crypto-supporting sentiments from the OCC and Fed follow years in which the U.S. banking agencies maintained a more hesitant posture about this emerging corner of the financial sector, seeking to keep banks from leaping in without close approval from their government watchdogs.

But the banking panel’s ranking Democrat, Senator Elizabeth Warren, maintained her sharp criticism of that new friendliness on Thursday, saying she’s demanding answers about the rapid approval of Erebor Bank for chartering by the OCC, according to a letter sent to regulators.

The backers of that bank, which is to be a tech-focused institution that offers digital asset products and services, “have been major donors to President Donald Trump, Vice President Vance, and the GOP,” Warren noted.

“Erebor would serve as the financial hub for an interrelated set of Silicon Valley firms owned by these billionaires and their friends,” she wrote in the letter, noting that the lawyer who submitted the bank’s charter application was soon hired by the OCC as a senior deputy comptroller. “If my inquiry reveals that Erebor’s national bank charter was not granted in accordance with law and regulation, and instead represented a corrupt political favor to the President’s billionaire supporters in Silicon Valley, it would have to be terminated.”

Federal Deposit Insurance Corp. Chairman Travis Hill also testified on Thursday. Under his watch, his agency was the first to begin advancing GENIUS Act proposals.

OpenAI Partners With Consulting Giants in Enterprise AI Push

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OpenAI entered into a series of alliances with some of the world’s leading consulting firms to accelerate the roll-out of its recently released enterprise AI platform, Frontier.

Unveiled in early February, the platform has been created to build, manage and integrate AI agent co-workers across an entire business.

Now OpenAI has introduced Frontier Alliances, a program of partnerships with key players Boston Consulting Group, McKinsey, Accenture and Capgemini, designed to encourage takeup of Frontier.

According to a release from OpenAI, each company has signed a multi-year partnership to help enterprise customers “define strategy, integrate systems, redesign workflows and scale deployment globally”.

OpenAI did not release financial details of the arrangements.

Each of the companies will work with OpenAI’s “forward deployed engineers” who have extensive product expertise and are embedded in businesses that are shifting to AI. They have also committed to investing in teams that will be certified in OpenAI technology, which will be supported by technical resources, roadmap insights and access to the company’s product and research experts.

Related:Anthropic Downgrades its AI Safety Policy Amid Market Pressures

The goal is to boost OpenAI’s annual income from enterprise customers, as CFO Sarah Friar outlined at the start of the year, when she told CNBC she was targeting a rise from 40%of total revenues to 50% this year.

McKinsey and BCG will primarily serve as strategists, advising customers’ leadership teams on how to implement AI at scale, while Accenture and Capgemini will be more focused on end-to-end integration and on securely connecting AI agents to businesses’ existing systems.

“CEOs and business leaders face unprecedented challenges in capturing value with agentic AI,” Bob Sternfels, global managing partner of McKinsey, said in an OpenAI release. “To scale, they must rewire their businesses, reimagining domains and evolving how their people work, build capabilities and lead change.”

Julie Sweet, chair and CEO of Accenture — which is already equipping tens of thousands of its own staff with ChatGPT Enterprise — said in the release: “Business transformation requires more than great models — it requires end-to-end execution across technology, data, security and change management.”

The Frontier platform is currently available to a limited set of customers. So far it has been adopted by HP, Intuit, Oracle, State Farm, Thermo Fisher and Uber, according to OpenAI. The platform will become more widely available in the next few months, the vendor said.

Related:Meta Signs $100B AI Chip Deal With AMD

 

 

 

American Bitcoin (ABTC) Posts $59M Q4 Loss Amid Bitcoin Slump

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American Bitcoin Corp., the Trump family-linked mining company, reported a fourth-quarter net loss of $59 million as bitcoin prices fell, cutting the value of its digital asset holdings.

The Miami-based firm, which trades on the Nasdaq under the ticker ABTC, said revenue for the three months ended Dec. 31 totaled $78.3 million, up from $64.2 million a year earlier but slightly below analyst estimates of $79.6 million. For the full year, the company generated $185.2 million in revenue.

Bitcoin declined about 23% in the fourth quarter, pressuring companies that hold large reserves of the cryptocurrency on their balance sheets. Under updated rules from the Financial Accounting Standards Board, firms must mark digital asset holdings to market each reporting period. As a result, American Bitcoin recorded a $227 million non-cash loss tied to the revaluation of its bitcoin treasury.

The company ended the year with 5,401 bitcoin and has since increased that figure to more than 6,000 BTC, according to a statement from co-founder Eric Trump. American Bitcoin said roughly one-third of its holdings were acquired through mining operations, with the remaining two-thirds accumulated through open-market purchases and strategic transactions.

American Bitcoin is backed by the family of President Donald Trump and is 20% owned by Eric Trump and Donald Trump Jr. 

The firm went public in September, weeks before bitcoin reached a record high above $126,000. Shares have since fallen nearly 90% from a peak near $9 last year. The stock was up 2% in early trading Thursday at $1.06 but remains down about 22% over the past 12 months.

The company raised $150.5 million during the quarter through an at-the-market stock offering, capital it used to increase its bitcoin holdings. Management said the equity issuance boosted per-share bitcoin exposure by nearly 50%.

American Bitcoin posts 53% mining margin

American Bitcoin operates industrial-scale mining facilities and relies on infrastructure support from majority owner Hut 8. During the fourth quarter, the company said it mined bitcoin at a 53% gross margin, indicating production costs remained below prevailing spot prices despite the market downturn.

Chief Executive Mike Ho said 2025 marked the firm’s first year as a standalone public company and cited expansion of its mining platform and bitcoin reserves as key milestones. President Matthew Prusak described the company’s strategy as securing bitcoin through mining and accumulating additional reserves through treasury purchases.

The fourth-quarter loss of $59.45 million compares with a profit of $3.48 million in the same period a year earlier. The company also reported a profit in the previous quarter.

Industry peers have taken varied approaches to the downturn. Some large miners, including MARA Holdings and Riot Platforms, have explored converting portions of their operations to artificial intelligence infrastructure. 

Others have sold parts of their bitcoin reserves to strengthen liquidity.

Hut 8, which holds a majority stake in American Bitcoin, reported its own fourth-quarter results Wednesday. The company said it ended the year with an 8,500-megawatt development pipeline and secured a new $200 million revolving credit facility with Two Prime. 

It also expanded an existing credit facility with Coinbase to $200 million, bringing total available credit capacity to $400 million.

Jane Street 10 AM Bitcoin Dump Claims Split Analysts

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Cryptocurrency investors accused quantitative trading firm Jane Street of pressuring Bitcoin’s price with a daily, programmatic selloff at the US market open, but market analysts and data suggest the pattern is not consistent, and no single firm can force Bitcoin into a prolonged bear market.

The claims surged online a day after Terraform Labs’ court-appointed administrator sued Jane Street, alleging insider trading tied to transactions that worsened the collapse of Terra’s algorithmic stablecoin ecosystem back in May 2022.

Several market watchers, including crypto influencer Justin Bechler, have argued that Jane Street’s holding of BlackRock’s iShares Bitcoin Trust exchange-traded fund (ETF), known as IBIT, could mask a net short Bitcoin position through hedges that do not appear in public filings. Bechler argued that Jane Street conducted coordinated algorithmic selling of Bitcoin at 10:00 am Eastern Time daily, manipulating the Bitcoin (BTC) price to buy the ETF at a discount.

”When Jane Street reports holding $790 million in IBIT shares, the filing tells you nothing about whether those shares are hedged by puts, offset by short futures, or wrapped in a collar that makes the firm’s net Bitcoin exposure zero or even negative,” wrote Bechler, adding that the ”actual position could be a massive short,” which looks like a long position that is ”invisible” under current disclosure rules.

CryptoQuant’s head of research, Julio Moreno, cautioned that the activity Bechler described is not unique to one firm. He said buying spot exposure while selling futures is a common approach for delta-neutral funds seeking to capture spreads rather than directional price moves.

Jane Street’s latest 13-F filing also disclosed holdings in Strategy, as well as sizable positions in Bitcoin mining firms Bitfarms, Cipher Mining and Hut 8.

Source: Julio Moreno

Claims focus on 10 am Bitcoin dump

The online narrative centers on the idea that Bitcoin regularly drops shortly after 10 am ET, a window that overlaps with the start of US trading. Onchain analyst Nonzee posted an hourly Bitcoin chart on Wednesday and claimed Jane Street had been “manipulating” the market at that time for months.

Source: Nonzee

Crypto market watcher account Whale Factor claimed Bitcoin has consistently registered a 2% to 3% daily drop minutes after the US open, alleging a programmatic manipulation ongoing since early November.

Related: Bitcoin treasuries log rare selling streak as BTC trades near $66K

”Many traders point to Jane Street’s massive $2.5B+ position in BlackRock’s IBIT as the likely driver: engineered liquidity sweeps to accumulate spot #ETF’s at a discount,” said Whale Factor in a Dec. 9 X post.

Source: Whale Factor

Macro analyst Alex Krüger disputed the framing, sharing blockchain data pointing to Bitcoin recording cumulative returns of 0.9% in the 10:00 am to 10:30 am ET window since Jan. 1, claiming it was not a ”systemic dump.”

”Everyone says Bitcoin dumps at 10 AM every day. I pulled the data, and it’s not true,” wrote Krüger in a Thursday X post, adding that the ” 10 AM dump” theory is a broad risk-asset repricing that tracks the price performance of the Nasdaq stock index.

Source: Alex Krüger

Analysts say one firm can’t drive a bear market

Even if certain trading strategies amplify volatility around the US open, some market participants said it is unlikely that one entity can dominate a global market as deep and fragmented as Bitcoin. ”Regardless of whether market manipulation has taken place, Bitcoin’s price isn’t driven by just one firm, no matter how influential. It isn’t a memecoin,” said Nick Puckrin, the co-founder and lead market analyst at educational platform Coin Bureau.

”It’s understandable that investors with strong conviction in Bitcoin are looking for a villain during a major downturn. But the reality of Bitcoin market dynamics is much more nuanced.”

Puckrin said Bitcoin’s recent weakness is better explained by a mix of geopolitical uncertainty, global liquidity conditions and competition for investor attention from the fast-growing artificial intelligence sector.

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