“Community Banks Have ‘No Choice’ but to Be in Stablecoin Business, Lawmaker Says”
Before long, community banks will need to offer stablecoin services as demand grows and regulatory clarity improves, Rep. Mike Flood, R-NE, said at the Money 20/20 conference. He added that partnerships with fintechs will be critical to accessing the technology and compliance tools banks need to compete safely in the market.
“How to Blunt the Threat of Smart Contracts and Stablecoins to Business Payments”
Speaking of stablecoins, they, along with smart contracts, have the potential to transform payments by automating transactions once certain conditions are met. Many new business-to-business systems are closed to traditional banks, raising the risk that banks could be left behind if they don’t adapt quickly.
“New Breeds of Partners Are Key to Community Banks’ Competitive Ambitions”
To deliver products faster and improve the customer experience without overspending, banks should look beyond traditional providers to specialized partners, including non-fintechs, one expert says. Success will ultimately depend on clear ROI goals, defined service standards, and exit options if expectations aren’t met, he adds.
“Banks Make the Case for 'Single, Risk-Based' Capital Standard”
Big banks are pressing regulators to replace multiple overlapping calculations with a single risk-based capital standard, arguing that the current framework adds unnecessary complexity. Regulators haven’t formally proposed such a change but are reviewing industry feedback as part of ongoing capital-reform discussions.
“How Community Banks Can Harness AI for Competitive Advantage”
As consumers grow more comfortable with AI, they increasingly expect their banks to integrate it into everyday products and services. To meet those expectations, one expert recommends that banks focus on four key areas: seamless digital payments; stronger liquidity tools; secure and easy-to-use digital identity systems; and personalized financial platforms that combine money management, education, and planning.
“How Leading Banks Are Budgeting for 2026”
Leading banks are approaching 2026 budgets by treating technology as a strategic investment, not just a cost. They’re integrating tech investments into broader efforts to streamline operations and drive growth, a shift that’s shaping board discussions heading into the new year.
“Fed Cuts Rates Again, but Powell Raises Doubts About Easing at Next Meeting”
The Fed cut rates by 25 bps for the second time this year, citing a softer job market despite limited economic data due to the government shutdown. During his post-FOMC press conference, Chair Jerome Powell said another cut in December was “far from certain,” prompting markets to scale back expectations.
In Other News
JPMorgan is tokenizing a private-equity fund on its blockchain, President Trump ordered the Pentagon to resume testing U.S. nuclear weapons for the first time in 33 years, and potatoes are making inroads into Halloween.