Today in crypto, Donald Trump could reportedly soon sign an order to probe crypto debanking claims, Coinbase adviser George Osborne claims the UK is falling behind on crypto and crypto funds saw an outflow after 15 weeks of gains.

Trump order would probe crypto debanking claims: WSJ

US President Donald Trump could sign an executive order as soon as this week to direct banking regulators to investigate claims of debanking made by the crypto sector and conservatives, The Wall Street Journal reported on Monday.

A draft of the executive order seen by the Journal directed bank regulators to probe if any financial institutions violated antitrust, consumer financial protection or fair lending practice laws and to cut any agency policies that could have contributed to banks dropping customers such as crypto firms.

It also asked regulators to refer some of the potential violations for the Justice Department to follow up, with violators facing fines or legal action. Trump could reportedly sign the order this week, but that could be delayed or changed.

Crypto industry executives have long alleged that the Biden administration used regulators to cut their industry off from banks after crypto exchange FTX was found to be a fraud scheme and collapsed in 2022.

A redacted letter the FDIC sent in 2022 to a company asking it to pause its crypto activities. Source: FDIC

Court documents revealed in December that the Federal Deposit Insurance Corporation asked some banks to pause crypto-related activities in 2022, which Coinbase chief legal officer Paul Grewal said at the time showed the industry’s claims weren’t “some crypto conspiracy theory.”

Coinbase turns lobbying efforts to UK in scathing op-ed

The United Kingdom is falling behind in the digital asset market, particularly in the area of stablecoins, despite the technology’s potential to help the country preserve its leading role in global financial services.

That was a central message in a recent Financial Times op-ed by George Osborne, the former UK chancellor turned crypto lobbyist, who joined Coinbase as an adviser last year.

“What I see makes me anxious. Far from being an early adopter, we have allowed ourselves to be left behind,” Osborne wrote, referring to his native UK.

A key concern for Osborne is the sluggish progress on stablecoins — onchain representations of fiat currencies that are helping to reduce friction in transactions and cross-border remittances.

Osborne’s op-ed followed the release of a provocative musical ad by Coinbase, the company he advises, which criticized the UK for its economic mismanagement and ongoing cost-of-living crisis.

Crypto funds see $223 million outflow, ending 15-week streak as Fed dampens sentiment

Cryptocurrency investment products ended last week in the red, interrupting 15 weeks of consecutive inflows after investor sentiment took a hit from hawkish remarks during last week’s Federal Open Market Committee (FOMC) meeting.

Global crypto exchange-traded products (ETPs) saw $223 million worth of outflows last week, according to the latest report from crypto asset management firm CoinShares, published Monday.

Despite a strong start to the week with $883 million worth of inflows, the “trend reversed” in the second half of the week, “likely triggered by the hawkish FOMC meeting and a series of better-than-expected economic data from the US,” the report said, adding:

“Given we have seen US$12.2bn net inflows over the last 30 days, representing 50% of inflows for the year so far, it is perhaps understandable to see what we believe to be minor profit taking.”

US Federal Reserve Chair Jerome Powell’s remarks also dampened investor expectations of an interest rate cut for September to 40% from 63% before the FOMC meeting, Cointelegraph reported last Thursday.

Weekly crypto asset flows. Source: CoinShares