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In this episode of web3 with FTC by FinTech ConfidentialTedd Huff welcomes Confidential Informant, Robert Musiala, the co-leader of the Web3 and Digital Assets team at Baker Hostetler, to cover what changed in the crypto and FinTech space during April 2025. Robert brings years of experience in blockchain law and compliance, helping companies understand risks and opportunities tied to stablecoins, regulation, payments, and the shifting financial market.

Stablecoins moved closer to mainstream use. These assets, backed by U.S. dollars in domestic banks, are solving problems like slow payment processing, expensive wire transfers, and complex settlement workflows. They also offer audit transparency and real-time visibility. Robert said, “Each unit is backed by a real dollar in a real bank account.” This setup gives users and institutions more confidence to use them at scale.

The Payment Stablecoin Act is creating urgency. It is expected to become law, and many companies are preparing early. Existing players are adjusting their policies. New issuers are getting ready to compete. This law could bring clarity and legal protections for issuers and users alike. Robert noted that 2025 may be the year the act finally passes.

Kraken made big moves. The firm added support for crypto payments across 150 million merchants in Europe and the UK. It now accepts over 300 different currencies and opened access to more than 11,000 U.S. stocks and ETFs. This marks a key shift in how firms are bundling crypto with traditional investment tools. The strategy is about reach, access, and keeping users inside one platform.

The use of programmable money is expanding. Tedd said, “Most of the financial world has been batch processed on a daily basis. A lot of that starts to go away.” This change means companies can automate tasks like issuing payouts or triggering compliance checks based on a set of rules. This is no longer theoretical. Companies are applying it in real settings.

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April also brought a regulatory shift. The SEC offered new guidance on “covered stablecoins.” These are stablecoins that follow specific design rules and are not treated as securities. This move gave firms more confidence to build, knowing they can stay within boundaries and avoid unnecessary scrutiny. The OCC and FDIC also updated their guidance. Banks no longer need advance permission to work with crypto, as long as they follow standard supervisory rules. “Banks can now engage in crypto related activities at their own discretion,” Robert explained.

States are moving fast. Wyoming issued the YST stablecoin. It also supported Custodia Bank as it tested its own digital currency. Arizona is exploring the idea of holding Bitcoin as a strategic reserve. Texas is backing mining projects. These actions show that states are acting on their own terms. Some are strict. Others are more open. Each one is shaping policy based on its goals.

Federal changes are also reducing enforcement risk. April saw the closure or settlement of several high-profile actions involving Ripple, Coinbase, Kraken, and others. This marked a shift from defense to offense. Tedd said, “We’ve seen a real shift from the theory of what could be to starting to move towards the execution of what can be.”

Security threats remain high. Hackers stole $1.3 billion in Q1 2025. The attacks included DeFi breaches and malware inserted into trusted software packages. These threats are getting more advanced. Attackers are going after infrastructure and tools used by developers and institutional teams. “These attacks are becoming more sophisticated,” Robert warned.

Bitcoin is behaving more like a mainstream asset. Its price now tracks with equity markets more than before. Major institutions are adding Bitcoin exposure through ETFs. Capital markets and crypto are merging in practical ways. Kraken’s stock and ETF launch proves this trend is gaining real traction.

Retail merchants are paying attention. Stablecoins make it easier to process payments quickly, with less cost. They also allow users to pay in crypto without converting to fiat first. This flexibility is helping businesses meet consumer demand while keeping payment systems efficient.

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The state-by-state approach to crypto rules is producing mixed results. Wyoming and New York are at opposite ends. One is encouraging innovation, the other is strict and highly structured. This range creates competition. It also helps regulators test different strategies in a low-risk way.

Compliance is improving. Federal guidance is more aligned than it has ever been. The SEC, OCC, and FDIC are no longer sending mixed signals. That helps companies build with more confidence. Risk teams can focus on execution rather than legal uncertainty.

Security is now the main concern for many in the market. Users expect protection against scams and fraud. Compliance teams want confidence that their platforms are protected from data leaks, theft, or abuse. The threat of large-scale theft is no longer limited to obscure firms. It affects all players, from consumer apps to institutional wallets.

The actions in April show that crypto, payments, and financial regulation are now deeply connected. New frameworks, tools, and use cases are not just being tested. They are being used in real environments. The mix of state action, federal guidance, and corporate rollout is accelerating. The firms that succeed will be the ones that treat compliance, speed, and user trust as core features, not optional steps.

TLDR:

Tedd and Rob uncover how the Crypto rules just changed and the markets fast reactions. From stablecoins being used in real payments to the rise of staking and Bitcoin-backed ETFs, the structure of crypto finance is shifting. States are rolling out their own digital assets while federal regulators move to align on enforcement. Businesses are now using stablecoins to speed up payments, cut fees, and reach more customers. Smart contract risks, SEC pressure on meme coins, and over $1.3 billion in crypto theft this quarter are forcing teams to upgrade security and rethink compliance. Whether you’re building in Web3 or investing in crypto, knowing where the guardrails are now gives you an edge.

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Key Highlights:

Stablecoins Are Solving Payments

Stablecoins moved closer to mainstream use. These assets, backed by U.S. dollars in domestic banks, are solving problems like slow payment processing, expensive wire transfers, and complex settlement workflows. They also offer audit transparency and real-time visibility. Robert said, “Each unit is backed by a real dollar in a real bank account.” This setup gives users and institutions more confidence to use them at scale.

New Law Is Changing Everything

The Payment Stablecoin Act is creating urgency. It is expected to become law, and many companies are preparing early. Existing players are adjusting their policies. New issuers are getting ready to compete. This law could bring clarity and legal protections for issuers and users alike. Robert noted that 2025 may be the year the act finally passes.

Kraken’s Next Big Power Move

Kraken made big moves. The firm added support for crypto payments across 150 million merchants in Europe and the UK. It now accepts over 300 different currencies and opened access to more than 11,000 U.S. stocks and ETFs. This marks a key shift in how firms are bundling crypto with traditional investment tools. The strategy is about reach, access, and keeping users inside one platform.

Programmable Money is Here

The use of programmable money is expanding. Tedd said, “Most of the financial world has been batch processed on a daily basis. A lot of that starts to go away.” This change means companies can automate tasks like issuing payouts or triggering compliance checks based on a set of rules. This is no longer theoretical. Companies are applying it in real settings.

SEC Quietly Redefines Crypto Rules

April also brought a regulatory shift. The SEC offered new guidance on “covered stablecoins.” These are stablecoins that follow specific design rules and are not treated as securities. This move gave firms more confidence to build, knowing they can stay within boundaries and avoid unnecessary scrutiny. The OCC and FDIC also updated their guidance. Banks no longer need advance permission to work with crypto, as long as they follow standard supervisory rules. “Banks can now engage in crypto related activities at their own discretion,” Robert explained.

States Compete With Their Own Coins

States are moving fast. Wyoming issued the YST stablecoin. It also supported Custodia Bank as it tested its own digital currency. Arizona is exploring the idea of holding Bitcoin as a strategic reserve. Texas is backing mining projects. These actions show that states are acting on their own terms. Some are strict. Others are more open. Each one is shaping policy based on its goals.

Lawsuits Dropped, Crypto Surges

Federal changes are also reducing enforcement risk. April saw the closure or settlement of several high-profile actions involving Ripple, Coinbase, Kraken, and others. This marked a shift from defense to offense. Tedd said, “We’ve seen a real shift from the theory of what could be to starting to move towards the execution of what can be.”

Hackers Are Now Targeting Developers

Security threats remain high. Hackers stole $1.3 billion in Q1 2025. The attacks included DeFi breaches and malware inserted into trusted software packages. These threats are getting more advanced. Attackers are going after infrastructure and tools used by developers and institutional teams. “These attacks are becoming more sophisticated,” Robert warned.

Bitcoin Now Follows The Stock Market

Bitcoin is behaving more like a mainstream asset. Its price now tracks with equity markets more than before. Major institutions are adding Bitcoin exposure through ETFs. Capital markets and crypto are merging in practical ways. Kraken’s stock and ETF launch proves this trend is gaining real traction.

ETFs Are Fueling Crypto Demand

Bitcoin’s price trends are becoming more aligned with traditional stock markets. Institutions are adding crypto exposure through ETFs and other channels. Capital markets are blending with crypto markets more than ever. Kraken’s expansion into stock and ETF trading adds another layer to this mix.

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Takeaways:

1️⃣ Watch for Meme Coin Regulation

The SEC has signaled attention toward meme coins. If you’re issuing or investing in tokens tied to trends or communities, monitor statements closely and prepare for new compliance steps.

2️⃣ Cap Exposure to State-Level Shifts

States are acting independently on crypto rules. If your business operates nationally, limit exposure in states showing fast policy swings or legal uncertainty around digital assets.

3️⃣ Use Staking to Offset Volatility

With staking gaining ground, consider it a strategy to earn consistent returns while holding volatile assets. Make sure you’re clear on terms and regulatory coverage before committing funds.

4️⃣ Follow Public Comment Windows Closely

Federal agencies are opening more public input sessions. If you’re in the crypto space, take part or track outcomes so you’re not caught off guard by final rules.

5️⃣ Add Security Reviews After Fund Losses

With over $1.3 billion lost in Q1 2025, make security reviews a scheduled task. Audit wallet access, upgrade defenses, and verify counterparty protocols before moving assets.

Links:

Robert A. Musiala Jr.

BakerHostetler Profile: https://www.bakerlaw.com/professionals/robert-a-musiala-jr/

LinkedIn: https://www.linkedin.com/in/robert-a-musiala-jr-esq-cfcs-b6534bb/ 

BakerHostetler

Website: https://www.bakerlaw.com/ 

The Blockchain Monitor: https://www.theblockchainmonitor.com/ 

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Time Stamps:

About The Guest:

Robert Musiala - Partner - BakerHostetler

Robert Musiala has been working in the blockchain and digital assets market since 2012 and has led multiple digital asset investigations, including as the court appointed receiver over cryptocurrency investment funds used in a major fraud. Robert also advises on a variety of regulatory compliance issues involving digital assets and has drafted/negotiated agreements for a wide range of transactions in the fintech, digital assets, Web3 and NFT markets. The inventor of two blockchain patents, he works directly with tech teams to build solutions that are compliant by design. Robert is co-leader of the Web3 and Digital Assets team at BakerHostetler.

About the Host:

Tedd Huff: 

Tedd Huff is the Founder of Voalyre, and Diamond D3, professional services consulting firms focused on global payments and marketing. He is also a video podcast host and executive producer on the Fintech Confidential network.

Over the past 24 years, he has contributed to FinTech startups as an Advisory Board Member, Co-Founder, and Chief Experience Officer, providing strategic and tactical direction for Global Payments OpenEdge, Heartland Payments, Nuvei, and TSYS, among others, focusing on growth while delivering innovation, process improvements and user experience-driven value to simplify the complexity of payments.

DD3, Media: 

DD3 Media is a media creation, management, and production company delivering engaging content globally

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