Today in crypto: Bhutan is putting 10,000 Bitcoin to use to develop its special administrative region known as the Gelephu Mindfulness City. The US Federal Deposit Insurance Corp. proposed a framework under the GENIUS Act for banks seeking to issue payment stablecoins, and in the UK, regulators launched consultations on new crypto rules.
Bhutan pledges 10K Bitcoin to develop its ‘mindfulness city’
The Kingdom of Bhutan says it will tap into 10,000 Bitcoin from its stash to help build its special administrative region, the Gelephu Mindfulness City (GMC).
Located in the town of Gelephu in Southern Bhutan, GMC was launched in 2024 as Bhutan’s new economic hub to stop the exodus of young Bhutanese from the country by creating high-value local jobs.
The city offers regulatory flexibility for crypto and fintech firms and serves as a space to further Bhutan’s Bitcoin mining. It covers roughly 10% of Bhutan, or around 1,544 square miles, according to its website.
The plan to use Bitcoin for the Gelephu Mindfulness City is part of the wider national Bitcoin Development Pledge, which aims to support Bhutan’s long-term economic development through its Bitcoin stash and mining operations.
US banks could soon issue stablecoins under FDIC plan to implement GENIUS Act
The Federal Deposit Insurance Corp. (FDIC) is moving forward with rule-making under the US GENIUS Act by proposing a framework for how regulated banks could apply to issue payment stablecoins, a key early step in implementing the law’s stablecoin provisions.
In a 38-page document posted to the FDIC’s website, the agency detailed proposed approval requirements for the issuance of payment stablecoins by subsidiaries of FDIC-supervised institutions.
As Bloomberg reported, the proposal is subject to a public consultation period before advancing to the next stage of the rulemaking process.
Under the proposal, banks would apply to issue payment stablecoins through a subsidiary, with the FDIC assessing both the subsidiary and its parent institution against criteria set out in the GENIUS Act. These include the ability to meet stablecoin issuance standards, the institution’s financial condition, management quality, redemption policies and other safety and soundness considerations.
Once approved, the FDIC would serve as the primary federal regulator overseeing the subsidiary’s payment stablecoin activities.
The FDIC is the US agency responsible for insuring bank deposits and supervising member institutions. In recent years, it has taken a more active role in shaping how banks engage with digital assets, including reconsidering the use of reputational risk in bank supervision. As Cointelegraph reported in October, this shift could impact how financial institutions interact with crypto-related businesses.
UK regulator consults on crypto rules for exchanges, lending and DeFi
The United Kingdom’s Financial Conduct Authority (FCA) launched a series of consultations on proposed rules for digital asset markets, marking the next phase in the government’s effort to establish a comprehensive regulatory framework for crypto assets.
The proposals, published across three consultation papers, cover crypto trading platforms, intermediaries, staking, lending and borrowing, market abuse, disclosures and decentralized finance (DeFi). The FCA said consultation responses will be open until Feb. 12, 2026.
The regulator said the proposals aim to support innovation while ensuring that consumers understand the risks associated with crypto investment. It added that regulations should not eliminate risks entirely, but should ensure that participants operate responsibly and transparently.
“Our goal is to have a regime that protects consumers, supports innovation and promotes trust,” said David Geale, the FCA’s executive director for payments and digital finance, adding that industry feedback will help shape the final rules.
The consultations mark the next step in the UK’s push toward full “market structure” rules for crypto, moving beyond earlier requirements focused on financial promotions and Anti-Money Laundering compliance.