The Federal Reserve has become the third and final major US banking regulator to withdraw its previous cryptocurrency guidance to banks, removing requirements that financial institutions obtain regulatory pre-approval before engaging in crypto-related activities.

CME Group has announced plans to launch cash-settled XRP futures on May 19, pending regulatory approval, in what would be the latest expansion of the exchange’s crypto derivatives offering.

Deloitte Center for Financial Services has released a report forecasting that the tokenized real estate market could grow to $4 trillion by 2035, up from less than $300 billion currently. This represents a compound annual growth rate of 27%, signaling a potential transformation in how property is financed, owned, and traded.

Top Stories in the Crypto Roundup today:

• Fed Joins OCC, FDIC in Rescinding Crypto Warnings for US Banks
• CME to Launch XRP Futures on May 19 as Institutional Interest Grows
• Global Tokenized Real Estate Market Could Reach $4T by 2035, Deloitte Reports

Fed Joins OCC, FDIC in Rescinding Crypto Warnings for US Banks

The Federal Reserve has become the third and final major US banking regulator to withdraw its previous cryptocurrency guidance to banks, removing requirements that financial institutions obtain regulatory pre-approval before engaging in crypto-related activities.
This move, announced on Thursday, follows similar actions already taken by the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC). The Fed stated that this change was made in part to "support innovation" within the banking system.

The withdrawal specifically rescinds four pieces of crypto guidance that the Federal Reserve had issued in 2022 and 2023, which had outlined potential risks to banks involved in the cryptocurrency sector. Instead of following these special directives, the Fed will now monitor banks' crypto-asset activities "through the normal supervisory process."

With all three major US banking regulators now having reversed their previous cautionary policies, cryptocurrency oversight at financial institutions effectively shifts to bank managers and compliance departments. The banking industry now awaits new legislative guidance from Congress to establish clearer parameters for how digital assets should operate within the US financial system.

The Federal Reserve, while perhaps best known for its monetary policy role, also serves as a banking supervisor for state member banks, making this regulatory shift significant for institutions under its oversight.

CME to Launch XRP Futures on May 19 as Institutional Interest Grows

CME Group has announced plans to launch cash-settled XRP futures on May 19, pending regulatory approval, in what would be the latest expansion of the exchange’s crypto derivatives offering.

The new contracts will be available in two sizes: a smaller 2,500 XRP contract and a larger 50,000 XRP contract. Both will be cash-settled based on the CME CF XRP-Dollar Reference Rate, which tracks XRP's price daily at 4:00 p.m. London time.

Giovanni Vicioso, global head of cryptocurrency products at CME Group, noted that "as innovation in the digital asset landscape continues to evolve, market participants continue to look to regulated derivatives products to manage risks across a wider range of tokens." He also highlighted increasing interest and adoption in XRP and its underlying XRPL (XRP Ledger) network among both institutional and retail investors.

This launch follows CME's introduction of Solana (SOL) futures in March, adding to its existing suite of cryptocurrency derivatives that includes Bitcoin (BTC) and Ethereum (ETH) futures and options contracts.

The new XRP futures will provide investors with exposure to XRP price movements and offer additional tools for risk management and trading strategies in the crypto market.

Global Tokenized Real Estate Market Could Reach $4T by 2035, Deloitte Reports

Deloitte Center for Financial Services has released a report forecasting that the tokenized real estate market could grow to $4 trillion by 2035, up from less than $300 billion currently. This represents a compound annual growth rate of 27%, signaling a potential transformation in how property is financed, owned, and traded.

Real estate tokenization, which involves creating digital representations of property assets on blockchain technology, is positioned to move from experimental status to become a fundamental component of the real estate industry. The process offers several advantages including operational efficiencies, faster and cheaper settlements, and increased accessibility for a broader range of investors.

The technology's appeal for the real estate sector stems from its ability to automate and simplify complex financial arrangements. For example, real estate funds can be launched on-chain with coded rules that automatically handle ownership transfers and capital flows. The report cites Kin Capital's $100 million real estate debt fund tokenization platform Chintai as an example of this implementation.

Despite the promising outlook, the sector still faces challenges including questions around asset custody, regulatory clarity, and protocols for handling default scenarios.

State of the Crypto by Top Tier Exchange Volume

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