regulation

According to Reuters, Polish President Karol Nawrocki vetoed a cryptocurrency regulation bill for the third time, which aims to implement the EU's Markets in Crypto-Assets Regulation (MiCA). Poland needs to complete the approval by July.Previously, the Polish parliament passed the bill in May, against the backdrop of a scandal involving the collapse of the country's largest cryptocurrency exchange and a dispute over regulatory responsibilities. Nawrocki expressed support for regulation and consumer protection but stated that the government did not adopt most of the presidential office's previous amendment suggestions in the latest version, emphasizing that he would only sign it into effect if the parliament revised it according to his opinions.

The states of Delaware and New Jersey are advancing legislation to comprehensively ban the installation and operation of Crypto ATM devices, citing that these devices are widely used for fraudulent activities. The Delaware House Economic Committee has passed a related bill that aims to prohibit the possession, installation, or operation of Crypto ATMs, requiring existing devices to be removed within 90 days after the bill takes effect; violations could result in fines of up to $10,000 and possible recovery of costs or inclusion in a consumer protection fund.Meanwhile, the New Jersey Senate Commerce Committee has also unanimously passed a similar bill, prohibiting business activities related to Crypto ATMs, with penalties for violations reaching up to $20,000. According to data from the FBI in May, complaints involving Crypto ATMs approached 13,500 in 2025, resulting in losses exceeding $388 million, a significant increase from the previous year, with more than half of the victims aged 50 and above. Currently, several states, including Indiana, Tennessee, and Minnesota, have fully banned Crypto ATMs, and some states and local governments have also imposed limits on transaction amounts.Under regulatory pressure, Crypto ATM operators are facing ongoing impacts, with industry leader Bitcoin Depot having previously filed for bankruptcy due to a deteriorating operating environment. Meanwhile, operators emphasize that they have set up risk warnings and transaction limits and deny direct responsibility for third-party fraud.

According to informed sources, the CFTC is proposing a comprehensive set of new rules to regulate prediction markets. The parameters of these rules will continue to allow most sports-related betting while striving to avoid obvious manipulation.According to a draft of the proposed rules seen by The Wall Street Journal, the U.S. CFTC will introduce new regulations on Wednesday, seeking to prevent predictive bets that it believes are not in the public interest or are easily manipulable, such as in cases where one person may have an undue influence on the outcome.The agency's proposal does not directly prohibit trading any specific type of so-called event contracts but outlines the factors under which regulators will review certain types of contracts on a case-by-case basis.The U.S. CFTC has previously provided some preliminary guidance on which types of bets should be avoided, and Kalshi and other prediction platforms have taken action in advance.Additionally, informed sources revealed that the CFTC is considering other rules, including those aimed at protecting retail traders.

On June 9, the New York State Department of Financial Services (DFS) announced a proposed regulation aimed at adjusting its dollar stablecoin issuance framework in accordance with the federal GENIUS Act. The new rules retain the original requirements of the DFS for dollar stablecoins, including reserves and redeemability, qualified reserve assets, independent audits, etc., and add new federal provisions, including: setting a maximum limit on reserve assets held by a single custodian; requiring entities to establish a risk management plan covering internal controls and information security; establishing an internal audit system; managing asset growth and income; regulating transactions with insiders and related parties; and regulating service provider arrangements.The proposed rules enter a 10-day pre-proposal comment period starting today, followed by a 60-day comment period after publication in the state register. The final rules will take effect simultaneously with the GENIUS Act, and existing licensed issuers in New York will enjoy a one-year transition period. Until then, the DFS's stablecoin regulatory guidance remains in effect.

Gate released the Private Wealth Management Report for May 2026. The crypto market continued its adjustment trend in May, influenced by rising geopolitical uncertainties and declining risk appetite. BTC fell approximately 2.9% during the month, while ETH dropped over 11%, with overall performance weaker than traditional risk assets during the same period. Against the backdrop of increased market volatility, Gate's private wealth quantitative strategies demonstrated strong resilience. Data shows that the net value of quantitative funds overall rebounded in May, with 90% of strategies recording positive returns. Among them, the "Interstellar Hedge (USDT)" cumulative return rate increased to 18.6%, with all 23 cycles within the statistical range achieving profitability, maintaining a win rate of 100%. Meanwhile, the drawdown levels of the USDT and BTC strategies continued to remain low, with overall risk control performance better than the market benchmark.At the same time, AI-related investments continued to be an important driver of growth. On the macro level, inflation remains a key variable affecting market expectations, with the market generally expecting the June FOMC meeting to maintain the current interest rate level. On the other hand, as the supporting details of the GENIUS Act gradually take effect, the regulatory framework for stablecoins is transitioning from policy framework to actual implementation, bringing more certainty to the digital asset industry.

According to Bloomberg, the Commodity Futures Trading Commission (CFTC) has canceled its planned headquarters relocation and will renew its lease at the current location for five years to accommodate up to 100 new employees in response to industry growth and regulatory demands. The CFTC is striving to become the primary regulatory body for prediction markets, and if the Clarity Act is passed, establishing its status as the main regulator of the cryptocurrency industry, the workload is expected to increase further.Meanwhile, the CFTC recently offered a deferred resignation plan to about 50 employees and has provided buyouts to some long-term employees. Data from the Federal Personnel Management Agency shows that the agency's workforce has decreased by nearly 25% since 2024, leaving only 553 employees as of April. The CFTC is seeking to increase its total number of employees to 650 in its budget request for fiscal year 2027. Additionally, under a White House executive order, 25 positions (including policy advisors and senior legal advisors) have been reclassified, removing civil service protections, allowing these employees to be dismissed at any time.

According to Crypto Briefing, the Central Bank of Russia has rejected the proposal to immediately expand access to cryptocurrencies, not allowing non-qualified investors to trade cryptocurrencies other than Bitcoin, Ethereum, and USDT. Vice President Vladimir Chistyukhin stated that after the new regulations come into effect, only these three mainstream digital currencies will be allowed for trading.Chistyukhin pointed out that the high volatility of cryptocurrencies, market risks, and the possibility that stablecoins may be restricted or frozen are reasons for maintaining strict limits. These rules are part of Russia's digital currency legislation, which is expected to come into effect next month after being overwhelmingly passed in the first reading by the State Duma in April. Regulators also intend to maintain the proposed investment cap of 300,000 rubles.As part of the proposed rules, both qualified and non-qualified investors must pass a mandatory knowledge test before purchasing any digital assets. From 2027, unauthorized cryptocurrency lending will be prohibited. The bill still needs to go through a second reading, a third reading, approval from the Federation Council, and presidential signing to become law.

The General Office of the State Council has released guiding opinions on strengthening regulation, preventing risks, and promoting the high-quality development of private equity investment funds. The opinions mention adhering to goal-oriented and problem-oriented approaches, addressing issues such as the need to improve the access mechanism for the private equity fund industry, inadequate regulation, incomplete systems, insufficient coordination and cooperation among ministries, central and local governments, the failure to implement the responsibilities of some government investment funds and state-owned enterprise investment fund contributors, and the use of some private equity funds as tools for illegal activities, new forms of corruption, and hidden corruption. A system and long-term mechanism for strengthening regulation and preventing risks will be established to promote the development of the industry in a standardized manner and enhance it during development.Uphold functional positioning, coordinate the overall layout, optimize increments, revitalize existing resources, support the excellent and limit the inferior, improve quality and efficiency, and strictly prohibit private equity funds from engaging in illegal activities such as lending and disguised debt. Adhere to classified regulation, implementing "one policy for one category" regulation based on different dimensions such as contributor entities and product types. Insist on regulating both legal and illegal entities, with strict regulation for legal institutions, resolute prohibition of illegal institutions, and severe crackdowns on illegal activities.Promote the revision of the Securities Investment Fund Law. Push for the issuance of judicial documents related to criminal cases involving private equity funds. Formulate regulations for the supervision of private equity fund managers, information disclosure, fundraising, and mandatory custody rules. Introduce standardized arrangements for private equity fund betting agreements. Fully establish a regulatory system for private equity funds that is primarily based on administrative regulation and supplemented by self-regulation.

According to the official announcement, the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority have published a joint consultation summary regarding the amendments to the over-the-counter derivatives trading regulations under the Clearing Rules. In light of the broad market support, the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority will proceed with the legislative process to introduce the proposed amendments to the Clearing Rules, with plans to implement the relevant amendments starting from March 1, 2027 (the proposed start date for the new calculation period).

According to CoinDesk, the U.S. House Financial Services Committee held a hearing on stablecoin regulation and the bank charter application of World Liberty Financial (WLFI). Acting Comptroller of the Currency Jonathan Gould denied any "endorsement" from Trump, pointing out that the only political pressure his agency faces comes from Democratic lawmakers, not Trump. Democrats questioned the compliance of WLFI's bank charter application, citing its connections to foreign investors and alleged regulatory violations involving entities such as Binance.Additionally, Federal Deposit Insurance Corporation (FDIC) Chairman Travis Hill stated that new rules requiring stablecoin issuers to establish customer identification programs will be proposed soon. Federal Reserve Vice Chair for Supervision Michelle Bowman provided clarification regarding the approval of a master account for the cryptocurrency exchange Kraken, emphasizing that the account has limited authority and an initial term of 12 months, during which close monitoring will occur to gather experience for formal rulemaking.

The U.S. cryptocurrency market structure bill, the "Clarity Act," is a "support for regulation, support for enforcement" bill that rebuts criticisms from some law enforcement agencies regarding its inadequacy in preventing financial crimes. As the midterm elections approach, the time window for Congress to pass this bill is narrowing. Senator Cynthia Lummis warned that if progress is not made this year, the bill may not be seriously reconsidered until after 2030. Currently, the Clarity Act still faces multiple controversies, including stablecoin yield arrangements, conflicts of interest arising from Trump-related cryptocurrency businesses, and whether anti-money laundering standards are stringent enough.The latest version also incorporates the "Blockchain Regulatory Certainty Act" (BRCA) pushed by DeFi supporters, aimed at clarifying that non-custodial developers should not be regarded as money transmitters. However, some law enforcement groups and lawmakers are concerned that the BRCA and certain provisions of the bill may weaken the ability to track illegal funds and recover victims' assets. Witt stated that lawmakers have responded to these concerns before the Senate Banking Committee vote and added provisions to strengthen regulatory and enforcement foundations.

According to a report titled "Stablecoins: Waiting for Regulation" released by the UK House of Lords Financial Services Regulatory Committee, the global market capitalization of stablecoins has exceeded $310 billion, but the UK pound stablecoin market is still in its infancy, and the construction of the regulatory framework is clearly lagging behind the United States (GENIUS Act) and the European Union (MiCAR).The report criticizes several aspects of the current regulatory proposals from the UK Financial Conduct Authority (FCA) and the Bank of England, focusing on:• The Bank of England's requirement for systemic stablecoin issuers to deposit at least 40% of reserve assets in non-interest-bearing central bank deposits, which the industry believes will severely harm issuers' profitability and the international competitiveness of the UK market;• The proposed holding limits (individual £20,000, corporate £10 million) are considered extremely difficult to implement and may stifle the development of the pound stablecoin market;• The T+1 redemption requirement will impose a significant operational burden on issuers;• The Prudential Regulation Authority (PRA) restrictions on deposit-taking institutions issuing stablecoins under independent brands are deemed overly stringent.The report also acknowledges the liquidity support loan mechanism proposed by the Bank of England, considering it an innovative regulatory measure that surpasses other major jurisdictions. The committee calls on regulatory agencies to strictly adhere to the established timeline, ensuring that the complete regulatory framework comes into effect as scheduled on October 25, 2027, and recommends adopting a principle-based, technology-neutral regulatory approach to achieve a reasonable balance between financial stability and market innovation.

The State Council of China has issued the "Regulations on Foreign Investment," which will take effect on July 1, 2026. China supports investors in conducting foreign investment activities based on market principles and actively participating in international cooperation and competition.Investors have the autonomy for foreign investment according to the law, making independent decisions, bearing risks, and assuming profits and losses. Investors engaging in foreign investment and related activities must comply with laws and regulations as well as international practices, respect local customs and cultural traditions, adhere to business ethics, act honestly and with integrity, compete fairly, fulfill social responsibilities, maintain the national image, and must not disrupt market competition order, damage the ecological environment, or infringe upon the legitimate rights and interests of workers. They must not endanger China's national security, harm national interests, or the public interest of society.

The Financial Intelligence Unit (FIU) of South Korea plans to no longer advance the mandatory suspicious transaction reporting (STR) requirements for large cross-border virtual asset transfers and personal wallet transfers, but will continue to expand the regulatory coverage of the Travel Rule and further strengthen the tracking of digital asset transactions.

Hyperliquid's lobbying organization, Hyperliquid Policy Center, issued a statement welcoming the U.S. Commodity Futures Trading Commission (CFTC)'s latest regulatory initiatives, including the approval of the first listed perpetual contract in the U.S., the release of a policy statement on the listing of perpetual derivatives, related interpretive guidance, and a no-action relief letter, as well as staff consultation documents regarding 24/7 trading, clearing, and settlement.The Hyperliquid Policy Center stated that these initiatives represent the first time in a long while that regulators have explicitly acknowledged the legitimacy and importance of perpetual contracts in price discovery and risk management. It pointed out that past regulatory uncertainty has led to related markets and liquidity flowing overseas, weakening the U.S.'s competitiveness in the global derivatives market.The Hyperliquid Policy Center also expressed its eagerness to work closely with the CFTC to promote the establishment of a regulatory framework that applies not only to centralized intermediaries but also to on-chain protocols. Currently, most perpetual contract trading activities actually occur in on-chain markets.