Fed’s Barr warns stablecoins could trigger chaos despite new law
A top U.S. central banker sounded a stark warning about the risks posed by stablecoins on Tuesday, saying that even after the passage of landmark stablecoin legislation, gaps in oversight could leave the financial system vulnerable to stress and instability.
Federal Reserve Governor Michael S. Barr cautioned that although the Guiding and Establishing National Innovation for United States Stablecoins Act (GENIUS Act) established a first‑of‑its‑kind regulatory framework for dollar‑linked stablecoins, much work remains to fully mitigate systemic risks.
Although it is a step forward, the new rules have yet to eliminate a lot of the risks. When stablecoins fail to take root, they can become unstable without proper discipline and oversight, he said.
Congress introduced the GENIUS Act to put order and predictability in the rapidly growing stablecoin industry. It sets the parameters for how such digital assets must be issued and backed, thereby providing the industry with far greater protection.
Barr conceded that the law could facilitate innovation and make stablecoins more common. But he said that history has shown what can happen when private cash is created without adequate safeguards.
“Stablecoins will be stable only if they can be reliably and promptly redeemed at par in a wide range of conditions, including during stress in the market that can put pressure on the value of otherwise liquid government debt and during episodes of strain on the individual issuer or its related entities,” Barr said.
Why stablecoins could still be risky
Stablecoins are guaranteed to maintain a stable value, usually pegged to the U.S. dollar. But for that to work, the companies behind them need enough good assets—cash and government bonds, etc.—to back every coin they are issuing.
Barr stressed that stability depends on one thing: customers can redeem their stablecoins for real dollars at any time during a financial crisis. And if that trust erodes, everyone can withdraw all their money at once in what is known as a “run.” And it gets even worse, because those issuing the coin try to boost financial profits by taking on the riskiest assets.
That may result in higher stock losses and a worse system if they are unstable and are hard to sell. Barr said reserve assets should be secure and liquid. Well, stablecoins can still go bad, and their value quickly disappears in the process, harming not only our wallets but the rest of society if you lose them.
At the same time, he also admitted, in a very different way, that the value of stablecoins could be misused, be harmful to businesses and legal businesses, and that there is a need to ensure people have a clear understanding and to protect U.S. currency.
Why regulation doesn’t always match reality
Barr’s warning highlights a bigger point: passing laws is only part of the solution. For stablecoins to be truly secure, regulators, banks, and state agencies must collaborate to implement and enforce them efficiently.
The CLARITY Act is based on the existing stablecoin laws. In July 2025, the GENIUS Act, signed into law by President Trump, included a regulation for dollar-backed payment stablecoins.
The GENIUS Act requires issuers to maintain fully backed liquid pools. The required reserve assets are physical currency and short-term government bills. To maintain investors’ trust in issuers, they are required to disclose all balances with their reserves every month.
Barr said, though, that there are still gaps that need to be filled. For instance, as stablecoin issuers are evaluated, there will need to be coordination among the various financial bodies to monitor and maintain compliance with government regulations; for that matter, all of these actors must coordinate with each other, and such coordination is critical. So without that, risks could slip through the cracks and get lost.
The same concerns also apply to those trying to regulate digital assets. Lawmakers are still struggling to come together to craft new proposals, such as the Clarity Act, which more broadly guides industry regulation of cryptocurrencies. Stablecoin risks could be one of the main reasons things are cooling down.
Previously, Barr had predicted that the GENIUS Act could reduce the risk of sudden market panic to the point of strict regulation. Still, he believes strong oversight is needed to achieve that.
There’s a middle ground between leaving money in the bank and rolling the dice in crypto. Start with this free video on decentralized finance.
Magic Eden will deprecate its native wallet, entering export-only mode on April 1
Magic Eden wallet will be deprecated, announced the former NFT marketplace. The wallet will only allow exports from April 1 to allow users to move their private keys or seed phrases.
The Magic Eden wallet will be removed from all app stores and will enter export-only mode, not allowing new transactions or other activities.
Users must export the keys as soon as possible. The only version is the downloaded wallet, and new Magic Eden wallets cannot be downloaded or recovered. Magic Eden also discontinued its EVM and Bitcoin wallets on the site, as users had to withdraw all funds for bidding, or claim them through the site’s support if they missed the March 27 cut-off date. All
Any assets can be sent out before April 1, or the keys can be imported into another wallet. Users are urged not to delete wallets, since the app cannot be recovered. Assets are still safe if users store their seed phrase and pick a new wallet.
The wallet will fully shut down on May 1, removing any chance to salvage private keys.
Magic Eden pivoted at the end of February
The wallet’s deprecation was widely expected, as Magic Eden pivoted from its former role as an NFT marketplace. The platform focused on other trends, including the crypto casino and sportsbook platform Dicey.
Earlier in March, Magic Eden shut down its Ethereum and BTC marketplaces, removing liquidity from Bitcoin ordinals and other NFT collections. The Bitcoin API was shut down on March 27.
Magic Eden has focused on mixing finance and entertainment, using existing on-chain and Web3 infrastructure.
NFTs are not entirely gone, with Crypto Punks still achieving sales of as much as 31 ETH lately. Magic Eden still supports Solana collectibles and Pokémon packs. Magic Eden will still support a Solana NFT marketplace, Solana Packs, and Solana Lucky Buy.
ME token remains central to Magic Eden
ME tokens will remain central to the Magic Eden reward system. Stakers will still receive USDC rewards for locking up ME. As Cryptopolitan reported, Magic Eden has also set up a ME buyback program.
ME tokens trade at $0.09, near an all-time low, but are still used in an attempt to give incentives to the community. The token will also be used in the Dicey app, and will remain the main path for users to engage with the platform. In the past months, Magic Eden worked to integrate ME with the Dicey gaming economy. Token use cases may evolve with the project’s roadmap.
The platform’s native tokens still await the unlocking of 28.4% of its supply, with ongoing linear unlocks. The ME airdrop and launch were considered one of the worst in the crypto space, as the price immediately crashed, while users only received minimal rewards for their NFT trading. The token launched just as NFT winter was in full swing, with an extremely high fully diluted value of $10B.
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WhiteBIT Coin (WBT), the token of the WhiteBIT exchange, has reached a market capitalization of $15 billion, a 50% increase from its previous $10 billion valuation, placing WBT among the top 15 largest tokens by market cap. The increase follows recent developments in the token’s structure and the exchange’s growth.
Tokenomics as the Foundation of Growth
At the core of WBT’s growth is its structured tokenomics, designed to balance supply expansion with long-term value support. The token operates under a deflationary model, with regular buyback-and-burn mechanisms funded by a share of trading fees, alongside scheduled unlocks that support ecosystem development.
On March 13, WhiteBIT unlocked more than 39 million WBT tokens—worth approximately $1.19 billion. The newly unlocked tokens are allocated to WhiteBIT Funds rather than being immediately released into open-market circulation. This approach aims to mitigate short-term sell pressure while maintaining flexibility for strategic initiatives and long-term growth.
Expanding Global Access
WBT’s growth has also been supported by increased global accessibility. The token was recently listed on Kraken, one of the industry’s most established trading platforms. The listing introduced WBT/EUR and WBT/USD trading pairs, expanding access to new markets and institutional participants, while strengthening liquidity and price discovery.
In December 2025, WBT was included in the S&P 5 crypto indices by S&P Dow Jones Indices. Inclusion in these indices signals growing recognition of WBT within broader financial markets and increases its visibility among institutional investors tracking benchmark crypto assets.
Ecosystem Expansion and Global Strategy
Beyond token mechanics and listings, WhiteBIT’s broader ecosystem growth continues to reinforce WBT’s value proposition. The company has been actively expanding its international footprint, including its recent entry into Ghana through a regulatory sandbox initiative launched in collaboration with local authorities. This move positions WhiteBIT among a select group of companies contributing to the development of regulated digital asset markets in one of Africa’s fastest-growing crypto adoption regions.
WBT’s utility within the WhiteBIT ecosystem also remains central to its valuation. The token is integrated across core platform services, including trading fee discounts, access to launchpad opportunities, and participation in a range of ecosystem products.
“Reaching a $15 billion market capitalization reflects the consistent development of our ecosystem and the trust of our global community,” said Volodymyr Nosov, Founder and President of W Group, of which WhiteBIT is a part of. “We are focused on building long-term value through compliance, innovation, and global expansion, ensuring that WBT remains a key pillar of the digital financial infrastructure we are developing.”
As WhiteBIT continues to expand across trading, payments, blockchain infrastructure, and institutional services, WBT plays an increasingly central role in connecting these components into a unified financial ecosystem.
China's factory PMI hit 50.4 in March, the strongest in a year
China posted its strongest factory activity in a year during March. At the same time, international investment banks are viewing the country as a safer bet than regional competitors amid the Middle East mess.
The National Bureau of Statistics said Tuesday that China’s Manufacturing Purchasing Managers’ Index hit 50.4 last month. That beat analysts’ expectations; they had forecast 50.1 in a Reuters survey. The reading is a turnaround from two straight months of decline. The index was at 49.3 in January and 49.0 in February. Anything above 50 means growth. Below that means shrinkage.
Huo Lihui works as chief statistician at the statistics bureau. He said factories sped up operations after a long national holiday in mid-February. That’s what drove March’s gains. Production and new orders both grew during the month. But measures tracking raw materials stockpiles, jobs, and delivery times stayed negative.
The services sector did better too. The non-manufacturing index covers industries like tourism. It went up to 50.1 from February’s 49.5.
Exports jump despite rising costs
Export numbers from the first two months of 2026 came in strong, up 21.8 percent from the same period last year. The increase went way past predictions. Healthy demand from Southeast Asia and Europe made up for weaker shipments to the United States.
But the conflict in the Middle East has started hitting costs. Price measures for raw materials and factory outputs rose 63.9 percent and 55.4 percent. Huo said higher shipping costs and pricier imported goods, such as crude oil and chemicals, have squeezed companies surveyed by the bureau.
Another survey from RatingDog and S&P Global comes out Wednesday. It’s expected to show a drop to 51.6 in March from February’s five-year high of 52.1, according to a Reuters poll.
Stocks outperform regional peers
Manufacturing showed strength, but there’s more to the story. Chinese stocks have held up better than others in the region as the month-long war in Iran has rattled global markets. The conflict shut down the Strait of Hormuz. That passage accounts for about one-fifth of global oil and gas flows. Crude prices jumped. Equities across the globe got dragged down.
China’s benchmark Shanghai Composite Index fell 6 percent through March. Compare that to South Korean stocks, which dropped 18 percent, and Japan’s Nikkei, down about 13 percent.
Big investment banks noticed. J.P. Morgan picked China as its top choice in the region this month. The bank pointed to the country’s limited reliance on Gulf energy and strong ability to provide government support. HSBC kept its “overweight” stance on China. The bank talked about defensive qualities backed by a mostly domestic investor base and a steady currency.
BNP strategists said China’s better performance compared to the rest of Asia will likely become more pronounced the longer the U.S.-Israel war with Iran drags on. William Bratton, head of Asia-Pacific cash equities research at BNP Paribas, said: “From this perspective, we believe China’s equity markets will become increasingly attractive.”
Goldman Sachs analysts said the Chinese economy looks better prepared than several global competitors to handle the oil supply shock. They pointed to years of energy diversification, growing strategic oil reserves, and access to supplies from outside the Middle East.
Beijing secures oil supply through direct Iran deals
China has been working directly with Tehran to keep Chinese-flagged ships moving. More than 11 million barrels of Iranian crude flowed east in the first weeks of the conflict. Payment came in renminbi through China’s Cross-Border International Payment System.
Iran provides 13 percent of China’s oil imports at discounted rates. The two countries have been locked into a 25-year cooperation deal since 2021. It’s worth 400 billion dollars. Iran sells oil below market prices. China provides investment and security cooperation in return.
China had prepared for potential supply problems. It boosted oil imports in January and February by 16 percent. Russia shipped around 300,000 extra barrels daily to China. Strategic and commercial reserves now sit between 1.3 billion and 1.4 billion barrels. That’s enough to cover about four months of imports.
Australia moves toward legal action against major social platforms over failure to block underage...
Australia’s top internet safety official said Tuesday she might take five major social media companies to court, claiming they have failed to stop children under 16 from using their services.
Julie Inman Grant, who runs Australia’s eSafety office, released her first review since new rules kicked in, requiring 10 platforms to shut down all accounts belonging to Australians under 16. The platforms now under scrutiny are Facebook, Instagram, Snapchat, TikTok, and YouTube.
The review found that although five million Australian accounts were shut down, many young people are still able to keep their accounts, set up new ones, and bypass the age-checking systems these companies use.
Inman Grant said her office has serious worries about whether half of the ten platforms are actually following the rules. Her team is now building a case that these five companies have not done enough to stop young children from having accounts.
If the matter goes to court and the platforms lose, judges could impose penalties of up to 49.5 million Australian dollars, about 33 million U.S. dollars, for widespread failures to meet the requirements. The eSafety office will make its final decision on whether to proceed with court cases by the middle of this year.
The platforms not currently under investigation are Reddit, X, Kick, Threads, and Twitch.
Anika Wells, Australia’s Communications Minister, said the five companies being looked at are deliberately choosing not to follow Australian law.
Indonesia takes enforcement action against Meta and Google
Indonesia is taking similar steps. The country put new rules into place last week that require social media companies operating what it considers risky platforms to close the accounts of anyone under 16.
Meutya Hafid, Indonesia’s Communications and Digital Minister, pointed to Meta and Google as companies breaking the law. Both were called in on Monday for official checks. The ministry has warned that companies that refuse to put these limits in place could face penalties or even the complete blocking of their platforms.
Hafid said Meta and Google fought against these restrictions from day one. The ministry also labeled Roblox and TikTok, which is owned by China’s ByteDance, as high-risk platforms. Warning letters were sent to both companies, telling them to comply fully or face a summons. Neither TikTok nor Roblox responded when asked for comment.
Internet use in Indonesia reached 80.66 percent in 2025, according to the Indonesian Internet Service Providers’ Association. Among people aged 13 to 28, often called Gen Z, the rate jumped to 87.8 percent. Indonesia has roughly 70 million children under 16, according to Hafid.
Meta is trying hard to boost engagement even more
Even as regulators in Australia and Indonesia move against Meta for failing to keep young users off its platforms, the company confirmed to TechCrunch on Monday that it is testing a paid subscription service on Instagram that offers features designed to keep users engaged longer on the app.
The service, called Instagram Plus, gives paying members the ability to view Stories without the person who posted them knowing they watched. Subscribers can also see how many times others have rewatched their Stories and create as many custom lists as they want to share Stories with specific groups.
Other benefits include stretching a Story to last an extra 24 hours and highlighting one Story each week, so it appears first for followers. Subscribers can send animated Superlikes on other people’s Stories and search through their viewer lists instead of scrolling through everyone who watched.
These features encourage exactly the kind of extended time spent on social media that regulators worldwide are trying to reduce for young users. Social media posts show the service is being tested in Mexico, Japan, and the Philippines. Monthly costs are around 39 Mexican pesos (about $2.20), 319 Japanese yen (roughly $2), and 65 Philippine pesos (approximately $1.07).
This new subscription differs from Meta Verified, which targets content creators and businesses. Instagram Plus aims at regular everyday users instead.
The timing of the Instagram Plus testing comes as evidence mounts about social media’s effects on young people. Last week, a California jury decided Meta and YouTube were responsible for causing a teenager’s social media addiction. The jury sided with the family 10-2, finding that Meta purposely built an addictive product that harmed the teen and led to body image problems and self-harm.
Meta must pay $4.2 million in damages, while YouTube owes $1.8 million. However, as Cryptopolitan reported earlier, these fines can be too easy for Big Tech giants to pay.
Stocks rise despite regulatory pressure
Shares of companies facing regulatory pressure rose in morning trading on Tuesday. Meta Platforms’ stock rose $21.67 to $558.05, up 4.04 percent. Alphabet, Google’s parent company, climbed $6.20 to $279.34, a gain of 2.27 percent.
Roblox Corporation shares increased $2.24 to $54.13, up 4.33 percent, while Snap Inc. stock added $0.0750 to reach $4.1150, rising 1.86 percent. The increases came despite mounting regulatory challenges and the potential for legal action from Australia’s eSafety Office.
The regulatory measures also miss a point. Despite new rules, young people keep finding ways around age checks, often using virtual private networks. This means the teenagers most at risk might also be the best at dodging restrictions.