regulation

Paul Atkins, the chairman of the U.S. Securities and Exchange Commission (SEC), stated on social media, "The design goal of Project Crypto is that once Congress takes action, the SEC and CTFC will be ready to implement the CLARITY Act. Treasury Secretary Basant is right: it's time for Congress to plan for future regulatory safeguards and advance comprehensive market structure legislation to President Trump's desk."

According to CoinDesk, the Financial Crimes Enforcement Network (FinCEN) under the U.S. Department of the Treasury and the Office of Foreign Assets Control (OFAC) will jointly issue proposed rules requiring stablecoin issuers to establish a comprehensive anti-money laundering and sanctions compliance system. Specific measures include freezing, intercepting, and rejecting suspicious transactions, as well as complying with the relevant provisions of the Bank Secrecy Act.The rules emphasize an outcome-oriented approach, believing that financial institutions understand their own risks best. Issuers that establish a sound compliance system are typically exempt from enforcement actions. This move aims to implement the GENIUS Act passed last year, which is expected to take full effect in 2027.

According to CoinDesk, Paul Atkins, the chairman of the U.S. Securities and Exchange Commission (SEC), announced the termination of "enforcement-style regulation" and stated that the seven cases related to cryptocurrency registration initiated by the previous administration were a "misallocation of resources" that did not provide direct benefits to investors.

The Blockchain Association submitted a letter to the U.S. Securities and Exchange Commission (SEC) in response to Citadel's previous call for increased regulation of DeFi.The Blockchain Association stated that DeFi protocol developers do not fall under the category of brokers or exchange operators and should not be included in the regulatory framework designed for traditional financial intermediaries. The organization also urged the SEC to advance an "innovation exemption" mechanism to provide regulatory pilot space for on-chain assets and tokenized securities, pointing out that the comprehensive rule-making process is lengthy, which may delay the implementation of technology and lead to innovation outflow. Previously, Citadel had suggested that the SEC strengthen regulation of DeFi through formal legislative processes.

Mike Selig, the chairman of the U.S. Commodity Futures Trading Commission, stated on the X platform that U.S. federal law clearly stipulates that the derivatives market is regulated by the U.S. Commodity Futures Trading Commission.Whether it's sports, politics, or oil prices, under the federal regulatory framework, the U.S. Commodity Futures Trading Commission has clear jurisdiction to regulate prediction markets and is obligated to uphold the regulations.

Simon Gerovich, CEO of the Japanese Bitcoin listed company Metaplanet, posted on the X platform in response to the Japan Exchange Group (JPX) announcing the postponement of including companies with major assets in cryptocurrency into the index, stating that he respects the relevant procedures and will actively participate, which will not affect the advancement of Bitcoin strategy and ecological layout.He added that Metaplanet was established to provide Japanese investors with a compliant channel to access Bitcoin through companies listed on the Tokyo Stock Exchange, but the company's strategy goes beyond asset allocation and will promote the development of the Japanese Bitcoin ecosystem through "Project Nova," including the layout of operational businesses and investment in industry partners. So far, more than 216,000 Japanese shareholders have participated in this strategy, and Metaplanet will continue to maintain constructive communication with all parties, including JPX, to enhance the market's understanding of Bitcoin and the company's role in the Japanese financial system.

The Central Bank of Nigeria (CBN) recently launched a regulatory pilot program for Virtual Asset Service Providers (VASP). The first batch of participating institutions includes several regional fintech and digital asset companies, among which KuCoin is the only selected global exchange.The pilot focuses on compliance with anti-money laundering (AML), counter-terrorism financing (CFT), and counter-proliferation financing (CPF), aiming to strengthen risk management and regulatory capabilities in the digital asset industry, and align with international standards such as those set by the Financial Action Task Force (FATF).According to the arrangements, participating institutions are required to conduct structured regulatory communications, submit regulatory data regularly, and advance compliance practices in key areas such as corporate governance, transaction monitoring, sanctions screening, and cross-border transaction "Travel Rule."KuCoin CEO BC Wong stated that constructive regulatory dialogue is an important foundation for the long-term sustainable development of the digital asset industry, and the company will continue to strengthen communication and cooperation with global regulatory agencies to promote transparency and enhance risk management capabilities.The market generally believes that this selection reflects KuCoin's ongoing progress in advancing compliance strategies globally, while also indicating that Nigeria is moving towards a more systematic and forward-looking phase in digital asset regulation.

The U.S. Department of the Treasury has officially launched the implementation of the stablecoin innovation "GENIUS Act," releasing a proposed rulemaking notice, which is the first implementing regulation of the act, totaling 87 pages, with a public comment period of 60 days.According to the "GENIUS Act," issuers of payment stablecoins with a total issuance not exceeding $10 billion may choose to accept state-level regulatory frameworks, provided that the state's regulatory framework is "substantially similar" to the federal regulatory framework. The U.S. Department of the Treasury will establish broad principles for determining "substantial similarity" through this notice.

Michael Barr, a member of the Federal Reserve, stated that the development of stablecoins must be built on strict regulation and warned that without effective constraints, it could replay the "long history of problems caused by private currencies."In his speech, Barr pointed out that although the GENIUS Stablecoin Act has provided an initial regulatory framework for the industry, the key lies in subsequent enforcement, including ongoing monitoring of reserve assets and mechanisms to prevent illegal uses. He emphasized that stablecoins can only be truly considered "stable" if they can maintain par value redemption in various market conditions. The liquidity and safety of reserve assets are particularly critical during market pressures or when the issuer's own risks increase. Additionally, Barr noted that stablecoin issuers have the incentive to increase yields for profit, which may lead them to take on higher risks in reserve asset management, thus posing a potential threat to financial stability.

Michael Barr, a member of the Federal Reserve, stated that the development of stablecoins must be built on strict regulation and warned that without effective constraints, it could repeat the "long history of problems caused by private currencies."In his speech, Barr pointed out that although the GENIUS Stablecoin Act has provided an initial regulatory framework for the industry, the key lies in subsequent enforcement, including ongoing monitoring of reserve assets and mechanisms to prevent illegal uses. He emphasized that stablecoins can only be truly considered "stable" if they can be redeemed at face value under various market conditions. The liquidity and safety of reserve assets are particularly critical during market pressures or when the issuer's own risks increase.Additionally, Barr noted that stablecoin issuers have the incentive to increase yields for profit, which may lead them to take on higher risks in reserve asset management, thus posing a potential threat to financial stability. Currently, the regulatory issues surrounding stablecoins remain one of the significant points of divergence in U.S. cryptocurrency legislation and have, to some extent, affected the progress of related bills.

According to Bits.media, the Russian government has approved a package of cryptocurrency regulation bills, including an annual limit of 300,000 rubles (approximately $3,300) for non-qualified investors to purchase cryptocurrencies through a single broker, and they can only buy high liquidity digital assets listed by the central bank, and must pass a test.Qualified investors still need to take the test, but there are no monetary limits. Trading through regulated intermediaries is allowed, but trading without intermediaries is prohibited. Russian citizens can purchase cryptocurrencies abroad, but must use foreign accounts for payment and report such transactions to the tax authorities. Administrative penalties mainly target non-compliant exchange institutions rather than individual investors. The relevant bills will be submitted to the State Duma for review in the coming days.

According to CoinDesk, the U.S. Department of Labor has proposed a new rule that would allow 401(k) retirement plans to include alternative assets such as cryptocurrencies, private equity, and real estate, in response to an executive order signed by President Trump last year.If the rule is passed, it will change the traditional structure of retirement plans that primarily focus on stocks and bonds, allowing plan providers to include non-publicly traded products like digital assets. The Secretary of Labor stated that the rule aims to better reflect the current investment environment in retirement plans. Supporters believe this move could improve portfolio diversification, but Senator Elizabeth Warren warned that it could expose workers to higher risks, costs, and potential losses. U.S. 401(k) plans hold trillions of dollars in retirement savings, and even a small allocation to digital assets could bring significant inflows to the crypto market.

According to The Block, Michael Selig, chairman of the U.S. Commodity Futures Trading Commission, stated that when assessing which prediction market contracts are susceptible to manipulation, the agency will "largely respect the opinions of various sports leagues."Previously, the National Football League (NFL) sent letters to prediction market platforms such as Kalshi and Polymarket, requesting them to stop offering contracts on single game outcomes, drafts, injuries, and other easily manipulated or predetermined contracts, believing that such contracts could incite manipulative behavior.On the legislative front, bipartisan lawmakers have proposed bills aimed at prohibiting federally regulated prediction markets from launching sports-related contracts, and several states have challenged the legality of such platforms through legal means. Meanwhile, Major League Baseball has chosen a collaborative approach, reaching an agreement with Polymarket and signing an information-sharing agreement.

Hong Kong Legislative Council member Wu Jietzhuang and South Korean National Assembly members initiated the "Hong Kong-Korea Web3 Policy Promotion Alliance," focusing on areas such as digital asset regulation, stablecoin mechanisms, artificial intelligence development, blockchain infrastructure interconnection, and regulatory standards. It is reported that this alliance is the first cross-regional civil policy cooperation platform in Asia.

Peter Van Valkenburgh, Executive Director of Coin Center, stated that if the cryptocurrency market structure bill CLARITY fails to pass, a future unfriendly U.S. government may once again strengthen regulations on the cryptocurrency industry. If the legislation related to developer protection in the CLARITY Act and the Blockchain Regulatory Certainty Act is rejected in favor of short-term business interests and the current regulatory environment, the industry may face adverse situations.Peter Van Valkenburgh indicated that the purpose of passing the CLARITY Act is to legally bind future governments rather than relying on the current government's attitude; without relevant legal protections, the cryptocurrency industry may be affected by enforcement discretion, policy changes, and uncertainty. According to his disclosure, the CLARITY Act has been stalled in the Senate due to banks, cryptocurrency companies, and legislators failing to reach consensus on key terms, including whether to allow stablecoin yields. The bill covers a registration framework for cryptocurrency intermediaries, digital asset regulation, and token classification, among other topics.Furthermore, in the absence of legislative clarity, future government departments may strengthen enforcement against developers of privacy tools, viewing them as unregistered money transmission entities, while existing regulatory interpretive guidance may also be revoked. Previously, former SEC Chairman Gary Gensler faced criticism from the industry for promoting policy through enforcement actions and settlements with cryptocurrency companies rather than through formal rulemaking. Since he stepped down on January 20, 2025, the SEC has withdrawn several long-standing enforcement cases against cryptocurrency companies and issued more lenient regulatory guidance.

According to Fox Business, Ripple CEO Brad Garlinghouse stated in an interview with "Mornings with Maria" that the division among U.S. regulators on crypto policy and enforcement-style regulation has created uncertainty for the industry's development. He mentioned that the SEC and CFTC are pushing for a new regulatory framework, and legislation like the CLARITY Act being discussed in Congress is expected to establish clearer rules for crypto assets.Garlinghouse warned that a regulatory environment similar to that of former SEC Chairman Gary Gensler should not occur again, and emphasized that despite the current market volatility, Ripple's business continues to grow, calling for clear and predictable regulation to replace politicized and selective enforcement.