The Senate’s new crypto-market bill has cracked open a rift between two pillars of American finance. Traditional banks warn that 3.5 % “rewards” on dollar-pegged stablecoins could siphon as much as $6.6 trn in deposits, eclipsing their sub-0.1 % average checking yield and starving local lenders of loanable funds. Crypto firms counter that the bill finally clarifies token status and puts the CFTC, not the SEC, in charge—an existential fix after years of enforcement-by-lawsuit. (reuters.com)

History rhymes: in the 1970s, money-market funds lured savers from regulated accounts until Regulation Q caps were scrapped. Banks adapted then; many prefer lobbying now, pushing to ban interest on stablecoins rather than improve their own rates. Yet Beijing just authorised yield on digital-yuan wallets, underscoring that monetary innovation will not wait for U.S. incumbents. (ft.com)

If Congress caves to protectionism, it risks freezing fintech at the water’s edge and exporting the next payments rail. As economist Eswar Prasad reminds us, “digital money amplifies network effects—once scale is lost, it is hard to regain.” The smarter course is regulation that disciplines both sectors while letting depositors choose.

— The Gist AI Editor

US Innovation Headwinds

A chilling indicator for America’s science and technology pipeline has emerged: new international student enrollment in the US has plummeted. Data shows a staggering 17% drop in new foreign student enrollments for the current academic year, the most significant decline in over a decade, excluding the pandemic (The Guardian). This isn’t a trivial shift; foreign students are vital to advanced research, representing 43% of full-time doctoral students in STEM fields (Science). The trend, driven by visa restrictions and a perception of a less welcoming environment, directly threatens the flow of talent that fuels US innovation and economic competitiveness.

Geopolitical Pivots & Market Stability

Global markets are navigating a landscape shaped by assertive geopolitics. Oil prices eased after President Trump signaled a pause in confronting Iran, offering temporary relief from energy cost pressures (Bloomberg). In parallel, European anxieties are mounting over US intentions toward Greenland, with Danish and Greenlandic ministers meeting Vice President Vance in Washington to rebuff any notion of a sale (Politico.eu, RNZ News). This transactional approach to diplomacy creates an unpredictable environment, chilling the cross-border investment and cooperation essential for both market stability and long-term scientific collaboration.

Regulatory Hurdles & Strategic Engagement

The contrast in strategic approaches to global challenges is stark. While UK Foreign Secretary Yvette Cooper plans further diplomatic engagement with China to boost economic ties, a pragmatic recognition of complex realities (Politico.eu), US financial innovation is stalled. A much-anticipated bill to create clear rules for the crypto market has been delayed by the Senate Banking Committee amid clashes between traditional banks and crypto firms (WSJ, investingLive). This failure to establish a predictable regulatory framework—a core function of limited government—risks ceding leadership in financial technologies to more agile jurisdictions.

Stay tuned for the next Gist—your edge in a shifting world.

The Supreme Court and Minnesota’s Welfare Fraud
— Wall Street Journal

Banks and Crypto Clash Over Tokens That Pay More Than Deposits
— Wall Street Journal

Won Weakness Unlikely to Be Reversed by Verbal Intervention Alone
— Wall Street Journal

Foreign Enrollment on US Campuses Drops For First Time in Years
— Bloomberg

Manhattan Rents Hover Near Highs in Sign of Affordability Crunch
— Bloomberg

Oil Falls After Trump Signals US Response to Iran Is On Hold
— Bloomberg

UK Doubles Down on Wind

In a pointed divergence from Trump’s energy rhetoric, UK Prime Minister Keir Starmer’s government is accelerating its clean power ambitions. The objective is to have the British power grid run on 95% clean electricity by 2030, a significant undertaking that requires quadrupling offshore wind capacity within the decade (Politico, Sky News). This isn’t just about emissions; it’s a strategic wager on energy independence, aiming to insulate the UK economy from the volatility of global fossil fuel markets controlled by autocratic regimes. While Trump has famously derided wind turbines, London is signalling that its path to energy security is paved with renewables, viewing the massive infrastructure overhaul as a long-term deflationary measure and a source of industrial jobs (The Labour Party). The policy creates a clear philosophical divide on energy strategy across the Atlantic.

Engineering the Subconscious

The frontier of innovation is pushing into our very minds. New research, highlighted by Dr. Michelle Carr at Montreal’s Dream Engineering Laboratory, is exploring how to influence and even direct our dreams. This field of “dream engineering” uses sensory stimulation—from sounds to smells—during sleep to interact with the subconscious. The immediate applications are therapeutic; imagine targeted interventions during REM sleep to mitigate the debilitating effects of chronic nightmares, particularly for those suffering from trauma. Beyond therapy, the research opens a profound debate on enhancing creativity and learning. While still in early stages, the ability to consciously shape our dream worlds represents a fascinating intersection of neuroscience and individual empowerment, though it will inevitably raise complex ethical questions about mental privacy.

Davos’s Transactional World Warning

The World Economic Forum’s latest report signals alarm over rising “geoeconomic confrontation,” now ranked as the top global risk for 2026 (WEF, Reuters). The concern from Davos is that major powers are increasingly weaponizing economic policy, fracturing a decades-old system of multilateral cooperation. No episode better illustrates this shift towards a transactional worldview than Trump’s renewed—and bluntly rebuffed—interest in purchasing Greenland. The suggestion was met with indignation in Nuuk, with former officials calling the notion “arrogant” and a clear statement that sovereignty is not a commodity (ZDF, The Japan Times). This clash highlights the tension between a view of international relations based on shared rules and one based on sheer transactional power, a dynamic set to define the geopolitical landscape.

Catch the next Gist for the continent’s moving pieces.

Abelsen: “Möchten nicht Teil der USA werden”
— ZDF

Dazi e guerre, Davos vede un mondo ‘sul precipizio’
— Ansa

Unlocking the secrets of dreams and nightmares – podcast
— The Guardian

Gislasons Hoffnung auf die fantastischen Vier
— ZDF

Bayern rackern und zaubern: Sieg in Köln
— ZDF

Keir Starmer goes big on wind power — even as Trump trashes it
— Politico Europe