The Daily: Coinbase expands into stocks and prediction markets, SEC issues crypto custody guidance, SoFi launches a stablecoin, and more
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.Happy Thursday! Bitcoin is trading at around $86,000 in a "fragile" year-end range, with analysts warning that thin liquidity, muted risk appetite, and rising downside hedges leave the cryptocurrency "on a knife's edge," as hopes for easing Fed policy clash with cautious positioning.In today's newsletter, Coinbase details its "everything exchange" push, the Federal Reserve withdraws its 2023 restrictive crypto policy, SoFi enters the stablecoin race, and more.Meanwhile, the SEC charged VBit CEO Danh Vo over an alleged $48.5 million bitcoin mining investment scheme.P.S. Don't forget to check out The Funding, a biweekly rundown of crypto VC trends. It's a great read — and just like The Daily, it's free to subscribe!Coinbase expands into stocks, prediction markets, Solana DEX trading via Jupiter, and more in 'everything exchange' pushCoinbase is expanding beyond its existing crypto services, rolling out stocks, prediction markets, Solana DEX trading, derivatives, custom stablecoins, and payments in a bid to become an "everything exchange."The company's new commission-free stock and ETF trading will launch in the U.S. with extended hours, while laying the groundwork for stock-linked perpetual futures and eventual tokenized equities.Coinbase is integrating with Kalshi to power its prediction markets and Jupiter to offer Solana DEX trading directly in its main app alongside existing Base assets, aiming to keep users on-platform for both centralized and onchain activity.Stablecoins sit at the center of the strategy, with Coinbase introducing custom-branded stablecoins and expanding payments APIs to compete with dedicated infrastructure providers.The exchange is also broadening access to derivatives, offering simplified futures and perpetual futures trading in its core retail app for U.S. users.Coinbase is also pushing into AI tools through Coinbase Advisor, business banking through Coinbase Business, and deeper onchain via the continued rollout of its Base App (formerly Coinbase Wallet).SEC says broker-dealers need to maintain crypto private keys to comply with customer protection rulesThe SEC's Division of Trading and Markets clarified that broker-dealers must maintain exclusive control of private keys to meet customer protection rules for "crypto asset securities."The interim guidance explicitly includes tokenized equities and debt, signaling closer regulatory scrutiny of new onchain versions of traditional securities.Broker-dealers must implement written policies to safeguard private keys from theft, loss, or unauthorized use and cannot claim custody if they face material security or operational risks.The SEC also expects firms to prepare for blockchain disruptions, governance changes, and legal actions such as asset freezes or seizures.Federal Reserve withdraws restrictive 2023 policy severely limiting 'novel' crypto activitiesThe Federal Reserve rescinded a restrictive 2023 policy that effectively constrained state member banks from offering many crypto-related services that weren't already clearly permissible for national banks.The new framework allows uninsured state member banks to seek Fed approval for "novel" crypto activities on a case-by-case basis.The shift reflects the Fed's evolving view of digital asset risks and a broader U.S. regulatory easing under the Trump administration.The change could materially benefit firms like Caitlin Long's Wyoming-chartered Custodia Bank, which was previously denied a Fed master account under the old guidance.India clears Coinbase's minority stake acquisition in CoinDCXCoinbase was again in the news as India's antitrust regulator approved the crypto exchange's acquisition of a minority stake in CoinDCX, expanding its presence in the country.The company did not disclose the size of the investment, though CoinDCX has previously said the deal valued the platform at $2.45 billion.The approval supports Coinbase's broader push to rebuild its presence in India after reopening its app and resuming user onboarding earlier this month, returning to a market it had previously exited due to regulatory hurdles.India continues to see vibrant crypto activity, recently ranking first in global adoption for the third consecutive year, ahead of the U.S., Pakistan, the Philippines, and Brazil, according to TRM Labs.SoFi launches SoFiUSD stablecoin to offer settlement infrastructure for banks and fintechsSoFi has launched SoFiUSD, a fully reserved U.S. dollar stablecoin issued by its nationally chartered bank to provide 24/7, near-instant, and cost-effective settlement infrastructure for enterprise clients.The stablecoin runs on public blockchains starting with Ethereum, with SoFi's infrastructure allowing partners to use SoFiUSD directly in their own systems or to issue their own white-label stablecoins.The launch builds on SoFi's recent crypto push, after becoming the first national bank to let consumers buy, sell, and hold nearly 30 cryptocurrencies directly in its app.In the next 24 hoursU.S. PCE data are scheduled for release at 8:30 a.m. ET on Friday.U.S. FOMC member John Williams will speak at the same time.Never miss a beat with The Block's daily digest of the most influential events happening across the digital asset ecosystem.Disclaimer: This article was produced with the assistance of OpenAI’s ChatGPT and reviewed and edited by our editorial team.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. 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