Regulation
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Regulation News
Regulation News
Browse all Regulation related articles and news. The latest news, analysis, and insights on Regulation.
Coinbase Wins CFTC Approval for 24/7 Settlement With USDC
Coinbase has received approval from the U.S. Commodity Futures Trading Commission (CFTC) for its derivatives clearinghouse, Coinbase Clearing LLC. In its September 28 announcement, the company said the new infrastructure is designed to support USDC collateral and round-the-clock settlement, seven days a week.The approval adds another component to Coinbase’s U.S. derivatives infrastructure. Alongside its existing brokerage and derivatives exchange, the company now has a registered clearinghouse.Coinbase Gains Derivatives Clearing CapabilitiesCoinbase Clearing LLC has secured registration as a Derivatives Clearing Organization (DCO). This gives Coinbase the ability to create and settle fully collateralized contracts directly.Within the company’s derivatives business, Coinbase Financial Markets serves as the broker, while Coinbase Derivatives operates the exchange. Coinbase Clearing adds clearing services to this structure.Coinbase expects the new infrastructure to accelerate product development and improve operational efficiency. The company also says it will gain greater flexibility to introduce new regulated products over time.Clearinghouses help ensure that buyers and sellers meet their obligations in derivatives transactions. They also help manage counterparty risk, including the possibility that one party fails to fulfill its obligations.Clearing infrastructure therefore plays an important role in the process that follows an order match on an exchange. The approval also supports Coinbase’s expansion as a provider of financial market infrastructure.USDC Collateral and Round-the-Clock Settlement Take Center StageCoinbase describes the new entity as the first clearinghouse built around native USDC use. Its core features include USDC collateral and 24/7 settlement.Coinbase General Counsel Molly Abraham said the approval completes the company’s end-to-end derivatives infrastructure. According to Abraham, the structure will support the introduction of more regulated derivatives products using USDC collateral.Approval Covers Fully Collateralized ProductsThe clearing authorization is limited to fully collateralized futures, options on futures, and swaps. Coinbase Clearing’s registration does not authorize it to clear leveraged products.A fully collateralized model requires complete collateral coverage for contractual obligations. This scope determines which products Coinbase can support through its new clearinghouse.Completing its derivatives infrastructure therefore does not mean Coinbase will transfer clearing for all existing products to the new entity. The company will continue working with external clearing partners for certain products.Existing Partners Will Continue Supporting Leveraged ProductsCoinbase said it will continue relying on its existing partners to support its margined derivatives business. Its planned launch of single-stock perpetual futures also falls within this arrangement.This distinction clarifies the new clearinghouse’s role. Fully collateralized products fall within Coinbase Clearing’s authorized scope, while certain other products will continue to rely on existing partnerships.
SEC Crypto Guidance Clarifies Staking and Token Buybacks
The U.S. Securities and Exchange Commission’s (SEC) Division of Corporation Finance has published new guidance on the application of securities laws to crypto assets. The September 25 FAQs address token buybacks, liquid staking tokens, protocol development activities and promotional communications.The explanations focus on whether a protocol is functional and what commitments issuers have made to investors. The document reflects the views of division staff and does not constitute a binding SEC decision or a new regulation.Protocol Status Is Key to Token Buyback AnalysisAccording to the guidance, announcing a buyback program for a non-security token in a functional crypto system does not, by itself, constitute a commitment to undertake essential managerial efforts. The explanation addresses buybacks conducted for purposes such as treasury management, reducing circulating supply and protocol-funded token burns.The assessment may differ for systems that are not yet functional. If an issuer presents a buyback as a mechanism that generates returns for token holders, the announcement could constitute a commitment to undertake essential managerial efforts.This distinction matters under the Howey test, which is used to identify investment contracts. Its elements include investors’ expectations of profits from the managerial efforts of others. The stage at which a buyback is announced and the promises accompanying it therefore influence the assessment.Conditions Matter for Liquid Staking TokensThe guidance also clarifies the classification of “staking receipt tokens,” which represent ownership of staked assets. Under the specified circumstances, a token representing a digital commodity that is not subject to an investment contract may qualify as a “digital tool” because it serves to establish ownership.Tokens issued by a protocol-based liquid staking provider may instead qualify as “digital commodities.” In such cases, the token must be intrinsically linked to the programmatic operation of a functional crypto system. Its value must also derive from that operation and supply-and-demand dynamics.The document further explains the limits of what qualifies as a receipt. Such an instrument must not alter the underlying asset’s rights and obligations or provide its holder with additional financial incentives beyond those associated with the asset.A staking receipt token does not independently guarantee rewards associated with the underlying asset or determine their amount. The guidance therefore does not provide an unconditional securities exemption for all liquid staking products.Some of the largest liquid staking tokens include: How Are Maintenance and Development Activities Assessed?According to the explanations, once a crypto system becomes functional, activities that secure, maintain or improve it do not constitute essential managerial efforts. Activities intended to increase network use and participation also fall within this scope.Sponsoring or funding development projects is among the examples provided in the guidance. A team’s continued development of a functioning protocol therefore does not, by itself, satisfy the relevant element of the Howey test.However, this assessment applies to functional systems. Commitments to complete a project that is not yet operational do not automatically fall within the same scope.Promotional Communications and Profit ClaimsThe Division of Corporation Finance also addresses projects’ marketing messages. Promoting a crypto system’s existing utility and capabilities, without additional factors, is unlikely to constitute a commitment to undertake essential managerial efforts.Indefinite, aspirational statements about future features may receive similar treatment. However, those statements must not promote the potential for profit.This approach does not exclude every promotional activity from investment-contract analysis. Specific promises, the project’s circumstances and the communications as a whole remain relevant to the assessment.Guidance Also Addresses Trading PlatformsAccording to the guidance, platforms that provide secondary markets for crypto assets do not automatically qualify as “promoters” simply because they facilitate trading. A platform must meet the definition of a promoter under Securities Act Rule 405.The document also states that, where a functional crypto system has no central party, subsequent statements by the issuer would generally be unlikely to create a new investment contract. The key consideration is whether the issuer or another party retains control that could affect the system’s success or failure.The FAQs build on the SEC’s March 17, 2026, interpretation concerning crypto assets and do not change existing laws or create new obligations. The document states that the Commission has neither approved nor disapproved its contents and explains how division staff interpret the existing framework.
CFTC Grants Exemption to Crypto Software Developers
The US Commodity Futures Trading Commission (CFTC) granted an exemption on Thursday to software companies building crypto trading tools. Under certain conditions, developers won't face enforcement action for not registering as introducing brokers.An extension of the Phantom decisionThis follows the "no-action" letter the CFTC gave crypto wallet provider Phantom in March. Phantom was trying to add derivatives trading functionality to its software at the time. Thursday's decision took that same protection out of Phantom-only territory and opened it up to any developer whose software connects users to regulated derivatives markets. Developers who want to make use of it need to provide certain disclosures and put internal policies and procedures in place.A footnote in the announcement suggests the exemption might not stay limited to "crypto asset-related software." The scope could widen down the line.Solana Policy Institute General Counsel Patrick Wilson said the protection that used to apply only to Phantom has now become a framework other software providers can use too. Developers, he noted, now have more clarity on how to connect users to regulated derivatives markets without triggering introducing-broker status.Digital Chamber CEO Cody Carbone also welcomed the decision on X. In his view, it removes the ambiguity that had been discouraging software development in derivatives markets.SEC made a move the same dayThe decision came just hours after the SEC announced its "innovation exemption," which will pave the way for onchain trading of tokenized stocks. After the Senate fell short on a preliminary vote for the Clarity Act last week, both the SEC and CFTC said they'd move forward with their own agendas. The Clarity Act would have been the first law to comprehensively regulate the digital asset industry at the federal level.The industry wanted that bill because it offered a permanence regulators can't provide on their own.The permanence concern remainsA source in the crypto industry pointed out that no-action letters can be reversed by a future administration. According to the source, the expansion is good news, but the risk is still on the table. As more people adopt this framework, the source believes, the harder it becomes to walk it back.CFTC Chair Michael Selig floated the idea of turning the Phantom letter into a formal rule back in May, but that hasn't happened yet.
SEC Steps In After CLARITY Act Stalls: Five-Year Exemption for Tokenized Stocks
The U.S. Securities and Exchange Commission (SEC) announced a temporary, conditional exemption on September 17 allowing tokenized U.S. stocks to trade on blockchain-based platforms in a limited capacity. The Commission granted so-called "Tokenized Securities Venues" (TSVs) a temporary exemption from the "exchange" definition under the Securities Exchange Act, in exchange for these platforms trading tokenized versions of National Market System (NMS) stocks through permissioned automated market makers and liquidity pools.What the Innovation Exemption bringsThe rule was announced under the name "Innovation Exemption." SEC Chairman Paul Atkins described the move as a step toward bringing U.S. capital markets into the digital age, saying the exemption offers a temporary solution while the Commission works on more permanent rules to facilitate onchain trading.The same order also grants a temporary exemption from the "dealer" definition to parties that supply liquidity with their own capital in AMM liquidity pools while engaging in activities that could count as dealing, such as quoting prices to customers or entering into committed capital agreements.The conditions are as follows:The number of symbols and trading volume of tokenized stocks listed will be limitedTokenized stocks must give holders the exact same rights as traditional shareholders, including voting rights and dividendsBefore a stock tokenized by a third party can be listed for trading on a platform, the underlying company must receive written notice and the right to objectSmart contracts must be auditable, public, and run on a permissionless ledgerIf trading in the underlying stock is halted on its primary exchange, trading on the platform must be halted simultaneouslyPlatforms must publicly disclose information about their own operations and the trading activity of their affiliatesThe exemptions will automatically expire after five years. During this period, the SEC plans to work on a permanent framework based on the public comments it collects.TimingThe decision came just two days after the CLARITY Act, a crypto market structure bill, stalled in the Senate. For an industry that didn't get what it was hoping for from Congress, the SEC's administrative move fills the gap, at least for now. Coinbase, Securitize, and Ondo Finance are reportedly shaping their product plans around this exemption.
What Does the U.S. Want to Change in Crypto Taxes? Bill Clears Committee
A new bill focused on crypto taxation has cleared an important stage in the U.S. House of Representatives. The House Ways and Means Committee approved the Digital Asset Tax Certainty Act by a 38–5 vote.Bill H.R. 10357 seeks to establish clearer tax rules for crypto transactions. It covers network fees, stablecoin sales, wash-sale rules, mining, staking and exchange reporting.Crypto tax bill passes by 38–5 voteThe committee considered the bill during a markup meeting on September 16, 2026. According to the official meeting record, the session began at 10:00 a.m. ET.The meeting took place at 5:00 p.m. Türkiye time. The committee ordered H.R. 10357 favorably reported to the full House as amended.The official Ways and Means statement announced 38 votes in favor and five against. The committee also said lawmakers prepared the bill through bipartisan discussions.The vote does not immediately change U.S. tax rules. The bill must first pass the full House.The Senate must then approve the same text. The president would also need to sign the bill into law.Proposed exemption for network fees under $10One of the bill’s most notable provisions concerns small network and transaction fees. Under the current system, even very small digital asset transactions can create separate reporting requirements.The committee said the IRS received hundreds of millions of 1099-DA forms in 2025. Many of those forms involved transactions worth less than $10.According to the bill’s fact sheet, the proposal covers three areas:Gains or losses from sales of regulated U.S. dollar stablecoins.Gains or losses from using digital assets to pay network and transaction fees under $10.An election for a simplified accounting method for digital assets.The $10 threshold applies to specific fee payments. A crypto purchase under $10 would still require separate analysis under the proposal. The fact sheet ties the exemption to digital assets used for network and transaction fees. It concerns gains or losses arising from that use.The stablecoin provision also has a limited scope. It refers to sales of regulated U.S. dollar stablecoins.Wash-sale rule would apply to digital assetsThe proposal would extend existing anti-abuse rules to digital assets. These rules include wash-sale and constructive-sale provisions.The wash-sale rule limits tax-loss strategies involving a sale at a loss and a quick repurchase. If adopted, the rule could require more detailed tracking of crypto transactions.Exchanges and users may need to match purchase and sale records more consistently. This could affect tax-loss harvesting strategies among crypto investors.The proposal also covers rules involving financial derivatives, U.S. territories and foreign corporations. The committee says these changes would bring digital assets closer to traditional financial instruments.Mining and staking rules would become clearerH.R. 10357 would clarify the tax treatment of mining and staking rewards. The fact sheet says the bill would establish sourcing and characterization rules for these rewards.This section affects miners, validators, staking platforms and individual users. Clearer rules could make reward reporting more predictable.The bill also aims to make it easier for exchange-traded investment products to participate in staking. It seeks to protect their tax status while they engage in staking activities.The fact sheet does not explain every detail about tax rates or payment timing. The final scope would depend on the bill’s text and later regulations.Exchange reporting burden could declineOne section of the bill would clarify digital asset broker reporting duties. The committee says the current system creates a large number of unnecessary tax forms.The proposed framework seeks to streamline broker reporting and reduce compliance costs. This could affect platforms with high transaction volumes.The bill would also direct the Treasury Department to create a voluntary disclosure program for digital assets. The program could offer reduced penalties to eligible taxpayers who report past mistakes.The mechanism targets users who failed to comply because of uncertainty or high costs. Eligible taxpayers could gain a route for correcting earlier reporting problems.Digital assets would move closer to traditional financeH.R. 10357 would place digital assets closer to traditional financial instruments under the tax code. The bill would make digital assets eligible for two existing tax safe harbors.One safe harbor would make it easier for foreign persons to invest in U.S. markets. The other would allow taxpayers to lend digital assets without triggering an immediate taxable event.The proposal would also let digital asset dealers and traders use mark-to-market accounting. This method is already available for securities and commodities.Common digital assets donated to charities would receive rules similar to publicly traded securities. This could matter to traders and users planning charitable donations.The bill is separate from the CLARITY ActH.R. 10357 is a separate bill from the CLARITY Act. It focuses directly on federal tax rules for cryptocurrencies and other digital assets.The CLARITY Act vote that failed to advance in the Senate on Tuesday did not concern H.R. 10357. The two processes involve different texts and different legislative stages.The committee’s 38–5 vote therefore does not represent another CLARITY Act vote. The crypto tax bill now awaits the next stage in the House.The legislative process will continueThe committee’s favorable report opens the path to a full House vote. The committee statement did not provide a date for that vote.If enacted, the bill could change tax processes for U.S. investors and crypto platforms. Existing rules will remain in effect until new provisions take effect.The committee vote shows crypto taxation moving forward as a separate legislative issue. The bill’s practical impact will become clearer as the House process and effective dates emerge.
CLARITY Act Stalls in Senate: $633 Million in Crypto Positions Liquidated
The CLARITY Act, a bill aimed at establishing comprehensive rules for the US cryptocurrency market, failed to advance in a key Senate vote. A procedural motion to move the bill forward received 49 votes in favor and 50 against, falling short of the 60 votes required.Bitcoin fell toward $76,000 following the decision. Ethereum approached $2,400, while XRP lost nearly 10%. JrKripto’s liquidation data showed $633.1 million in positions liquidated over the preceding 24 hours.The vote did not determine whether the bill would become law. Senators voted on a procedural step needed to advance its consideration. When that motion failed, the bill stalled in the Senate. According to AP, all Democrats and four Republican senators voted against advancing it.Why did the CLARITY Act stall?The CLARITY Act aims to clarify when digital assets should be treated as securities or commodities. It also proposes a framework for dividing oversight of the crypto market between the SEC and the CFTC.Negotiations stalled over rules governing public officials’ financial interests in crypto businesses. Democratic senators argued that the bill’s ethics provisions did not do enough to address the crypto interests of President Donald Trump and his family.Republicans revised the text before the vote. The changes would have given state attorneys general more authority to enforce the ethics provisions, but they did not secure enough support. Banks’ objections to stablecoin rewards were another point of disagreement. The Senate could hold another procedural vote, although no date has been set.Bitcoin, Ethereum and XRP declineFollowing the vote, Bitcoin fell roughly 3% and traded around $76,000. Ethereum dropped about 5% to $2,410. XRP lost nearly 10%, falling toward $1.30.Solana traded just above $97, while DOGE declined about 5%. The price moves showed that selling had spread across major cryptocurrencies.Bitcoin had already been falling before the vote, so the entire decline cannot be attributed to the result. Still, the bill’s failure to advance added uncertainty for a market awaiting clearer regulation.JrKripto data shows $633 million in liquidationsAccording to JrKripto’s liquidation data, $633.1 million in crypto positions were liquidated over the preceding 24 hours. Long positions accounted for about $525.4 million, while short positions accounted for $107.7 million. Longs made up approximately 83% of the total. The data also showed $59.6 million in liquidations over the preceding 12 hours, $16.7 million over four hours and $2.1 million over one hour.Traders open long positions when they expect prices to rise. If prices move against them and their collateral becomes insufficient, exchanges may automatically close their leveraged positions. The concentration of long liquidations indicates that traders positioned for gains were hit harder during the decline.The 24-hour figure includes trading before the Senate vote, so it should not be read as the amount liquidated solely after the result. With the bill’s path forward uncertain, the market will watch for regulatory steps from the SEC and CFTC, as well as the Fed’s interest rate decision.
Critical Day for the CLARITY Act: US Senate Heads to a Key Crypto Vote
A critical day has arrived for the CLARITY Act, which could transform the legal framework governing the US cryptocurrency market. The Senate will vote on September 15 on whether to advance the bill.The procedural vote is expected to take place today at around 2:00 p.m. ET. The bill needs the support of at least 60 senators to move to the next stage.Republicans released a revised version of the bill ahead of the vote. However, Democrats continue to raise objections concerning its ethics provisions.CLARITY Act received 126 changesSenators Cynthia Lummis, John Boozman and Tim Scott said the latest text included 126 substantive changes requested by Democrats. The revisions focus on ethics rules, illicit finance and stablecoin rewards.The most notable change concerns the crypto investments of public officials. The new text would require political officials to divest significant financial interests in crypto companies.Officials would also have the option of transferring these assets into an independent blind trust. In addition, state attorneys general would receive the authority to file lawsuits over certain violations.Republicans argue that these revisions address most of the Democrats’ ethics concerns. However, Elizabeth Warren, the senior Democrat on the Senate Banking Committee, said the rules remain insufficient.According to Warren, the text contains loopholes that could allow political officials to profit indirectly from crypto ventures. Some Democrats are also concerned that the Justice Department could block lawsuits filed by state attorneys general.Stablecoin rewards divide banks and the crypto industryAnother major dispute surrounding the CLARITY Act involves stablecoin rewards. Banking groups believe rewards offered by crypto companies could lead to deposit outflows.Banks argue that moving deposits to stablecoin platforms could reduce their lending capacity. Industry representatives have therefore called for broader restrictions in the bill.The revised text aims to address some of the banking sector’s concerns. However, US banking groups said the latest changes did not go far enough.The crypto industry opposes a ban on stablecoin rewards. Companies argue that sweeping restrictions could limit stablecoin adoption and competition in financial technology.How would the CLARITY Act change the crypto market?The CLARITY Act aims to clarify which US regulator has jurisdiction over different types of digital assets. The bill would redefine the division of responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.Network tokens that meet certain conditions could be treated as digital commodities instead of securities. These assets would therefore fall primarily under the CFTC’s oversight.However, selling tokens as part of an investment contract would not eliminate all SEC obligations. Issuers would still need to comply with certain disclosure and reporting requirements.The bill would also establish a federal registration system for crypto exchanges, brokers and dealers. It introduces new standards for protecting customer assets, preventing market manipulation and separating customer property during bankruptcy proceedings.Digital commodity platforms would also be treated as financial institutions under the Bank Secrecy Act. These companies would become subject to anti-money laundering, know-your-customer and due diligence requirements.Vote could determine the bill’s fateThe House of Representatives passed the CLARITY Act in July 2025 by a vote of 294 to 134. However, the Senate’s revisions differ from the text approved by the House, meaning additional legislative steps will be necessary.If the Senate approves the legislation, both chambers will need to agree on the same text. The bill could then be sent to the president for approval.However, the September 15 vote does not represent final passage. Senators will first decide whether to move forward with debate on the legislation.A failed vote could make it difficult for lawmakers to reconsider the bill in 2026 due to the busy election calendar. The Blockchain Association, Crypto Council for Innovation and Digital Chamber have th
Critical US Crypto Bill Updated as First Vote Nears
Senate Republicans released an updated version of the Crypto CLARITY Act. The new draft follows negotiations held during the August recess.The legislation introduces new requirements for decentralized finance platforms. It also clarifies provisions covering credit unions’ digital asset activities.However, the revised text has not secured sufficient Democratic support. The bill needs at least 60 Senate votes to advance.The Senate will return from its August recess next week. The first critical vote will take place on Tuesday, September 15.New draft released for the Crypto CLARITY ActRepublican senators circulated the updated legislative text on Thursday. Most of the draft retains the structure of previous versions.However, the new text introduces additional requirements for decentralized finance entities. These provisions explain when DeFi projects must register with regulators.The draft could also place some DeFi projects under the Commodity Futures Trading Commission. In short, the CFTC could gain broader authority over digital commodity transactions.Certain projects could also face requirements under the Bank Secrecy Act. Consequently, these entities may need to comply with anti-money laundering rules.Meanwhile, the new provisions only target spot market transactions. The draft excludes prediction markets from these regulations.Digital asset rules for credit unions become clearerThe revised text also changes provisions covering traditional financial institutions. In particular, it provides clearer rules for credit unions’ crypto activities.These institutions offer financial services as an alternative to conventional banks. However, current regulations create uncertainty around their digital asset services.The new draft defines the role of credit unions more clearly. Therefore, these institutions could approach custody and other crypto services with greater certainty.Republican Senator Cynthia Lummis said negotiators incorporated more than 114 requests into the text. According to Lummis, Democratic senators submitted those requests.Lummis believes the legislation could provide lasting regulatory certainty for digital asset companies. Moreover, it could reduce policy swings following changes in presidential administrations.Crypto bill must secure 60 votesThe Senate will hold its first procedural CLARITY Act vote on September 15. The bill needs support from 60 senators to advance.Therefore, Republicans must persuade several Democratic senators to support the legislation. However, disagreements over ethics rules remain unresolved.Democrats want stronger restrictions covering senior government officials. Their demands particularly focus on President Donald Trump’s crypto ties.Some Democrats have refused to support the bill without a bipartisan ethics provision. Meanwhile, the White House has not shared detailed comments on the current draft.Stablecoin rewards also remain a major issue in the negotiations. Banking groups want lawmakers to impose tighter restrictions on these rewards.Banks argue that stablecoin yields could accelerate withdrawals from traditional deposits. However, the crypto industry opposes broad restrictions.Consequently, the current draft may not become the final compromise. Negotiations could continue after the first procedural vote.If approved, the CLARITY Act would establish a comprehensive US crypto regulatory framework. It would also define the jurisdictional boundaries between the SEC and CFTC.
September Starts Fast for Crypto Regulation
The crypto market entered September with new regulations and key deadlines. Russia introduced a crypto purchase limit for retail investors, while Pakistan gave companies operating in the country a final deadline to apply.Singapore is also working on new rules for the stablecoin market. In the UK, applications for licenses under the new crypto regime will open at the end of this month.Russia introduces annual limit on crypto purchasesRussia’s Federal Law 282-FZ, which regulates the crypto market, came into force on September 1. The new system allows retail investors to buy cryptocurrencies through licensed intermediaries.However, investors must first pass an eligibility test. They can then purchase up to 300,000 rubles, around $3,500, worth of crypto per year through a single intermediary.The use of cryptocurrencies as a means of payment within Russia remains prohibited. Crypto exchanges have until July 2027 to complete their registration processes.Pakistan gives crypto firms until September 5In Pakistan, the focus is directly on crypto companies. Under the Virtual Assets Act, which came into force in March, platforms already operating in the country were given six months to submit an application.That deadline expires on September 5. Companies that fail to apply will be required to stop providing services in Pakistan.The country’s regulatory approach has changed significantly in recent months. In April, the State Bank of Pakistan allowed licensed crypto companies to open bank accounts. This removed one of the restrictions that had been in place since 2018.Singapore opens stablecoin rules for consultationThe Monetary Authority of Singapore (MAS) has published a new regulatory proposal for the stablecoin market. The framework would tighten reserve and redemption requirements for stablecoin issuers.Under the proposal, issuers would be required to fully back their stablecoins with reserves and allow users to redeem tokens at par value. Stablecoin holders would also not be allowed to earn interest.MAS will accept feedback on the proposal until October 16. The rules have not yet entered into force.UK applications to open on September 30The UK is also preparing to enter an important phase of its regulatory process at the end of September. Under the Financial Conduct Authority’s new crypto regime, companies will be able to apply for authorization starting September 30.The application window will remain open until February 28, 2027. The new crypto regulatory regime is expected to become fully effective on October 25, 2027.September has therefore started with new rules and regulatory deadlines affecting crypto companies and investors across several major markets.
Chairman of Turkey-Based Crypto Exchange Bitexen Arrested
Kemal Cenk Erdem, Chairman of the Board and a shareholder of Bitexen, was arrested as part of the DinamikPay investigation. The case, led by the Istanbul Chief Public Prosecutor’s Office, focuses on allegations involving the transfer of illegal betting proceeds and the laundering of assets derived from crime.The arrest decision also referred to certain financial transactions linked to DinamikPay and Bitexen. However, currently available information does not indicate that Bitexen itself has been seized or that customer accounts on the platform have been broadly frozen.Erdem denied the allegations against him. The arrest was ordered as part of an ongoing investigation, and there is no final conviction against him.Bitexen connection in the DinamikPay investigationThe Istanbul Chief Public Prosecutor’s Office is investigating DinamikPay Elektronik Para ve Ödeme Hizmetleri AŞ over allegations related to illegal betting and money laundering.As part of the investigation, authorities reviewed reports from MASAK as well as findings from the Central Bank of the Republic of Türkiye and TÖDEB. DinamikPay was found to have processed approximately 17.9 billion lira in money transfers during 2024 and 2025.This figure does not represent Bitexen’s cryptocurrency trading volume. The 17.9 billion lira amount refers to the money transfers examined at DinamikPay, which is at the center of the investigation.A total of 13 suspects were detained in the initial operation. Authorities also seized 8 vehicles, 33 residences and 50 plots of land believed to be linked to criminal proceeds, while restrictions were imposed on 126 bank and cryptocurrency accounts.DinamikPay itself was also seized under a decision issued by an Istanbul Criminal Judgeship of Peace.What did the arrest decision say about Kemal Cenk Erdem?Kemal Cenk Erdem was detained at a later stage of the investigation and referred to a criminal judgeship of peace with a request for his arrest following his statement to prosecutors. The court subsequently ordered his arrest.The decision stated that Erdem was not listed in the trade registry as a direct shareholder, board member or authorized representative of DinamikPay. However, it also noted that he is married to Ayşin Erdem, the company’s founder and long-time controlling shareholder.According to the court’s assessment, financial transactions linked to Bitexen and Kemal Cenk Erdem were identified among the sources of capital used by DinamikPay and Dinamik Yatırım. Authorities also reported nearly 100 million lira in two-way financial transfers between Kemal Cenk Erdem and Ayşin Erdem.Statements included in the case file alleged that Erdem played an influential role in the financial decision-making process of the group of companies. The court concluded that financial records, corporate connections and witness statements provided grounds for the investigation to be expanded.Erdem denied the allegations in his defense before the court. He argued that there had been no commercial activity between Bitexen and DinamikPay in which he was involved.What does this mean for Bitexen users?For Bitexen users, the most significant aspect of the investigation is that financial transactions linked to the company and Erdem have entered the case file. However, it is important to distinguish between the measures publicly announced so far and Bitexen’s own operations.Official sources clearly confirm that DinamikPay was seized. However, currently available statements do not indicate that Bitexen itself has been seized, that the platform’s operations have been suspended or that all customer assets held at Bitexen have been frozen.The next stages of the investigation will therefore be closely watched by cryptocurrency investors. Bitexen’s deposit and withdrawal operations, any potential measures involving customer assets and possible actions by regulators are among the key issues to monitor.Bitexen remains on the CMB listBitexen Kripto Varlık Alım Satım Platformu AŞ remained on the Capital Markets Board of Türkiye’s “List of Operating Companies” as of September 1. The company ranked sixth on the list.However, the CMB explicitly states that inclusion on this list does not constitute a final operating license. The list is maintained to publicly identify companies that have declared their intention to operate as crypto asset service providers.The investigation remains ongoing with regard to other suspects and corporate connections. Any new judicial or regulatory decision involving Bitexen could further increase the significance of the case for Türkiye’s cryptocurrency market.
UK Moves on Stablecoins: BoE Gets New Role
The UK government plans to expand the Bank of England’s remit. The BoE will take on a new responsibility supporting stablecoin and digital payments innovation.The government has defined this responsibility as a “secondary objective.” Financial stability will remain the central bank’s primary objective.The new objective will cover digital payment infrastructure, including systems that use stablecoins. The BoE will also report its progress to the UK Parliament each year.However, the change has yet to take effect. The government will add the necessary amendments to the Financial Services and Markets Bill.BoE will support digital payments innovationHM Treasury announced the new objective on August 27. The announcement highlighted stablecoins, tokenisation and distributed ledger technology.The Treasury wants payments regulation to keep pace with technological developments. The new statutory objective will require the BoE to support innovation safely.City Minister Lucy Rigby said tokenisation and distributed ledger technology could transform global financial markets. Rigby added that the UK wants to maintain its position in financial services.BoE Deputy Governor Sarah Breeden welcomed the government’s decision. Breeden said the objective would support the central bank’s work on payments technology.Financial stability will continue to take priority. The BoE will not have to support projects that pose unacceptable risks.The central bank will report annually on its work under the new objective. Parliament will therefore be able to monitor regulatory progress and payments innovation.Stablecoin systems will fall under the new objectiveThe BoE already has a similar objective for certain financial market infrastructures. The Financial Services and Markets Act 2023 introduced this responsibility.The existing objective covers central counterparties and central securities depositories. The government will now extend the same approach to systemic payment systems.Payment systems using digital settlement assets will also fall within its scope. The official announcement specifically identified stablecoin systems as an example.The BoE will oversee stablecoin structures considered important to the financial system. The Financial Conduct Authority will remain responsible for non-systemic crypto and stablecoin activities.HM Treasury will decide whether a payment system has systemic importance. Its assessment will consider factors such as financial stability and market confidence.UK prepares its stablecoin rulesThe new objective comes as the BoE develops its stablecoin regulations. The central bank published draft rules for systemic stablecoins in June.Under the BoE proposal, issuers could hold up to 70% of their reserves in interest-bearing assets. This portion would consist solely of short-term UK government debt.Issuers would hold the remaining reserves in central bank accounts. The BoE said this structure would help them meet redemption requests.The central bank also dropped its proposed temporary limits on individual stablecoin holdings. It instead proposed a temporary £40 billion issuance cap for each systemic stablecoin.The BoE could remove this cap once risks to credit provision have eased. The central bank will accept feedback on the draft until September 22.The BoE plans to publish its final rules by the end of 2026. Regulated stablecoins could begin operating in the UK in 2027.The government will implement the new innovation objective through amendments to the Financial Services and Markets Bill. The House of Lords will debate the bill on September 7 and 9.
SEC Sends Crypto Custody Rule Changes to White House for Review
The U.S. Securities and Exchange Commission is preparing to revise its crypto custody rules. The SEC has sent its regulatory proposal to a White House review office.The proposal aims to make it easier for investment advisers to hold crypto assets on behalf of clients. The SEC also plans to clarify the custody requirements that investment companies must follow.However, the White House review does not mean the regulation has been approved. The proposal has yet to be released publicly and has not become a final rule.SEC plans to modernize crypto custody rulesThe Office of Information and Regulatory Affairs, which operates under the Office of Management and Budget, received the proposal on Aug. 25. OIRA reviews significant federal regulations before publication.In OIRA records, the proposal appears under the title “Amendments to the Custody Rules.” It is being tracked under RIN 3235-AN46. The records classify the proposal as “economically significant.” However, the regulation has no statutory deadline.The SEC said it had received numerous questions from investment advisers about the existing rules. These questions focus on the conditions under which advisers may hold clients’ crypto assets.According to the agency’s regulatory agenda, the current system does not adequately address the characteristics of digital assets. The SEC therefore wants to adapt the custody framework to the crypto market.The regulation will cover investment companies as well as investment advisers. However, the SEC has not yet published the proposal’s detailed text.It therefore remains unclear how the definition of a qualified custodian might change. Requirements for self-custody and on-chain transactions also remain uncertain.What does the White House review mean?OIRA operates within the White House Office of Management and Budget. The office evaluates the economic and administrative impact of significant federal regulations.During the review, OIRA may ask the SEC to make changes. It may also assess the proposal with other federal agencies.Completing this process will not put the proposal into effect. The SEC may then release the regulation for public comment.Market participants will be able to submit feedback during the comment period. A final rule could emerge only after further review.The SEC’s official schedule anticipates publishing the proposal in October 2026. However, that date is not a binding deadline.Crypto regulation accelerates under Paul AtkinsSEC Chair Paul Atkins previously said the existing custody rules were not designed for crypto assets. In July 2025, Atkins said he had instructed staff to update the system.Over the past year, the SEC has pursued sweeping changes to digital asset regulation. The agency has issued new guidance on whether memecoins qualify as securities.It has also clarified which staking activities fall outside securities laws. The SEC has separately prepared a regulatory framework for crypto asset offerings.The proposal, called “Regulation Crypto Assets,” would provide companies with a tailored capital-raising framework. It aims to facilitate token offerings while maintaining investor protections.The market is also waiting for the innovation exemption announced by Atkins. The exemption could give tokenized securities projects greater regulatory flexibility.New rules could reshape the institutional crypto marketCustody rules determine which firms investment advisers may work with. Any changes could therefore directly affect institutional demand for crypto.Clearer rules could reduce legal uncertainty for funds and advisory firms. They could also make it easier to include tokenized assets in traditional investment products.However, looser custody standards could raise new security concerns. Private key protection and the segregation of client assets remain critical issues.The proposal’s actual impact will become clearer once the detailed text is published. The latest development indicates that it is moving closer to the public comment stage.
CFTC to Regulate Leveraged and Margined Crypto Transactions
The U.S. Commodity Futures Trading Commission has started preparing new rules for leveraged and margined crypto transactions. CFTC Chairman Michael Selig instructed agency staff to use their existing statutory authority to develop a framework governing the market structure.The new rules will cover products offered by CFTC-registered entities. They could also create a legal pathway for some crypto platforms that are not currently registered with the agency to offer leveraged transactions off-exchange.However, the CFTC has not granted these platforms blanket approval. Off-exchange transactions will need to meet the “actual delivery” conditions established by the agency.CFTC will move without waiting for CongressSelig made the announcement during the first meeting of the CFTC Innovation Advisory Committee on August 20. The meeting’s agenda included crypto asset regulation, artificial intelligence and prediction markets.The CFTC chairman said Congress must pass the CLARITY Act to establish comprehensive rules for the crypto market. However, the agency will not wait for the legislative process to conclude.Selig delivered a similar message at the White House one day earlier. He said the CFTC would use every available tool until lawmakers finalize the bill.This approach does not mean the agency will expand its authority over crypto without new legislation. Instead, the CFTC will prepare rules within the boundaries of its existing powers under the Commodity Exchange Act.How could unregistered crypto exchanges qualify?Leveraged, margined or financed commodity transactions offered to U.S. retail investors generally fall under CFTC rules. Many of these transactions must take place on registered markets because they qualify as futures transactions.The law includes an exemption known as “actual delivery.” When a transaction meets the conditions of this exemption, a platform may offer the product outside a CFTC-registered futures exchange.The CFTC will now draft rules explaining how the exemption applies to crypto assets. The framework could clarify when and how an asset must reach the customer, when the customer gains control over it and what role the platform can play in custody.The initiative does not mean every unregistered crypto exchange will be free to offer leverage in the United States. Platforms will need to structure their transactions in accordance with the actual delivery exemption and meet the safeguards established by the CFTC.Registered exchanges will face separate standardsSelig also asked staff to prepare rules for CFTC-registered designated contract markets. These entities, known as DCMs, can list futures and derivatives under the agency’s supervision.The CFTC will consolidate the requirements that existing DCMs must follow when offering leveraged or margined spot crypto transactions. According to Selig, this step will establish consistent protection and transparency standards across different platforms.The agency is also considering a new DCM registration category for leveraged crypto transactions aimed at retail investors. This could allow crypto platforms to apply for a registration model tailored to their activities instead of adopting every rule originally designed for traditional derivatives exchanges.Selig first introduced the plan in January as part of the Project Crypto framework. His latest instruction indicates that the agency has moved into the rule-drafting phase.New rules could reshape the U.S. crypto marketOnce completed, the regulations could provide crypto platforms operating in the United States with a clearer legal pathway for leveraged spot products. The CFTC argues that regulatory uncertainty has pushed much of this activity toward offshore platforms.The new framework could also introduce common standards covering customer asset protection, risk disclosures and market surveillance. Such rules are particularly important for retail investors because leverage can magnify both gains and losses.The CFTC has not yet disclosed the draft text, leverage limits or implementation schedule. The agency is expected to publish its proposal for public comment before completing the formal rulemaking process.
Trump’s Crypto Call to Congress: ‘Pass the CLARITY Act’
US President Donald Trump addressed Congress following the crypto summit at the White House. Trump called for the passage of a “fair version” of the CLARITY Act, which would create a legal framework for the digital asset market.According to Reuters, Trump told leading industry executives at the meeting that Congress must now take the next step. His direct political endorsement of the bill became the summit’s clearest outcome.Trump openly backs the CLARITY ActCoinbase CEO Brian Armstrong, Robinhood CEO Vlad Tenev and Kraken co-CEO Arjun Sethi attended the summit on August 19. Jeffrey Sprecher, CEO of Intercontinental Exchange, the parent company of the New York Stock Exchange, also spoke alongside Trump.SEC Chair Paul Atkins, CFTC Chair Mike Selig and White House crypto adviser Patrick Witt also attended. The lineup brought financial regulators, crypto executives and traditional finance leaders to the same table.During his remarks, Trump called for Congress to pass a “fair version” of the CLARITY Act. However, he did not explain what he meant by a fair version or specify which changes he wanted lawmakers to make to the current text.The White House also did not publish detailed meeting minutes or a new compromise proposal. For now, the summit’s outcome remains limited to a strong message of political support.What would the CLARITY Act change?The CLARITY Act aims to define when digital assets qualify as securities or commodities in the US. It would also establish clearer jurisdictional boundaries between the SEC and the CFTC.Under the current approach, the SEC would retain authority over assets that qualify as securities. The CFTC would receive broader powers over digital commodity spot markets and the platforms where these assets trade.Crypto companies have long argued that regulatory uncertainty forces the industry to operate through court cases and agency decisions. A permanent statutory framework could reduce the risk of major policy shifts following changes in the US administration.The House of Representatives passed the bill in July 2025 by a vote of 294 to 134. The Senate Banking Committee advanced the legislation to the Senate floor in May 2026 by a vote of 15 to 9.However, the Senate process remains incomplete. The current schedule indicates that a procedural vote on considering the bill could take place in September. This does not amount to a confirmed date for a final vote or passage.Ethics and stablecoin disputes continueOne of the main disagreements surrounding the CLARITY Act concerns political figures earning money from crypto investments. Many Democrats and some Republicans want strong provisions limiting federal officials’ ability to profit from crypto ventures while in office.Reuters reported that Trump earned more than $1.4 billion from crypto ventures linked to his family. World Liberty Financial and the TRUMP meme coin remain at the center of the conflict-of-interest debate.Trump says he has no role in the daily operations of his family’s businesses and that independent managers oversee his investments. The White House has also rejected allegations of wrongdoing.Another disagreement centers on rewards paid on stablecoin balances. Banks argue that allowing crypto platforms to offer returns to stablecoin holders could accelerate deposit outflows.Crypto companies say a broad ban would restrict competition and eliminate returns earned by users. The scope of stablecoin rewards was also one of the issues that prevented the parties from reaching an agreement during previous White House talks.Senate Banking Committee Chair Tim Scott has identified rewards, ethics provisions, DeFi, anti-money laundering rules and regulatory quorum requirements as the main areas of disagreement.Did the summit produce a concrete regulatory outcome?Trump’s remarks showed that the White House remains committed to passing the CLARITY Act. The presence of the SEC and CFTC chairs alongside industry executives also attracted attention as a sign of regulatory coordination.Still, the summit produced no new legislative text, agreement on stablecoin rewards or final version of the ethics provisions. Trump’s reference to a “fair version” suggests that negotiations over the bill remain underway.Amendments introduced in the Senate and support from Democratic senators will shape the next stage. If the Senate passes an amended version, lawmakers will also need to reconcile it with the text approved by the House of Representatives.Trump’s call has added political pressure to the process. Congress must still resolve disputes over ethics, regulatory jurisdiction and stablecoin rewards before the CLARITY Act can become law.
SEC Quietly Completes Crypto Vote: $75 Million Cap Proposed
The US Securities and Exchange Commission completed a crypto regulation vote without holding a public meeting, days after postponing it at the last minute. The SEC published its “Regulation Crypto Assets” proposal on Aug. 18, potentially allowing registration exemptions for token sales of up to $75 million.According to US journalist Eleanor Terrett, the commissioners voted separately through a process known as a “seriatim” vote. Voting documents were circulated among the commissioners, although the SEC did not disclose whether votes were submitted electronically or physically at its headquarters.The vote was originally scheduled for Aug. 14 as an open meeting broadcast to the public. That format would have allowed observers to see how each commissioner voted.The SEC said it canceled the meeting because of an “unforeseen scheduling issue.” It has not explained why it switched to a non-public voting process only a few days later.SEC proposes new framework for token salesThe US Securities and Exchange Commission proposed two new registration exemptions for token sales. Regulation Crypto Assets aims to establish a tailored offering framework for investment contracts involving crypto assets.According to the SEC’s Aug. 18 announcement, projects could raise up to $5 million under the first exemption. The second exemption would allow offerings of up to $75 million during a 12-month period.The proposed rules have not taken effect. The public comment period will remain open for 60 days after the proposal appears in the Federal Register.SEC proposes a $5 million startup exemptionThe first model, called the “startup exemption,” would remain available for a period of up to four years. A project could conduct token sales or related distributions worth up to $5 million during that period.The exemption could only be used once. An issuer and its affiliates could not begin another four-year period for the same crypto asset or a substantially similar asset.Projects seeking to use this pathway would have to submit a notice called Form NOR before beginning a sale. The issuer could be a company, an individual or a group of people.Projects would also have to provide investors with free and publicly accessible information. The disclosures would cover the project’s management, token features, development plans, offering terms, conflicts of interest and material risks.Issuers would need to update information after material changes. Projects would also have to file a transition report with the SEC by the end of the exemption period.Large token sales could reach $75 millionUnder the SEC proposal, the second model would contain two tiers similar to the existing Regulation A framework. Tier 1 would permit offerings of up to $20 million during a 12-month period.The Tier 2 limit would reach $75 million over the same period. Unlike the startup exemption, this pathway would only be available to issuers established as legal entities.Issuers would have to submit an offering statement called Form 1-CRYPTO before starting a sale. The offering could proceed after the SEC qualifies the document.Both tiers would require financial statements and ongoing reports. Tier 1 financial statements would generally not require an independent audit.Tier 2 issuers would have to provide independently audited financial statements. Projects would also submit annual, semiannual and current reports covering certain material developments.Which tokens could qualify for the safe harbor?The proposal includes a conditional safe harbor that could allow certain crypto assets to cease being subject to an investment contract. The project team would first need to complete or permanently discontinue the essential managerial and development efforts promised to investors.The issuer could not make new promises to perform managerial work related to the token. A project that believed it had met these conditions would file a transition report called Form TR.The report would explain the work completed by the project and how it satisfied the safe harbor conditions. If those conditions were met, the relevant investment contract would be deemed to have ended.The crypto asset would then no longer be treated as subject to that investment contract under US federal securities laws. The safe harbor would not create an automatic or unlimited securities exemption for every token.The SEC could challenge an issuer if it determined that the project made false statements or failed to satisfy the required conditions. Federal antifraud provisions would also continue to apply.Token projects could return to the USIf adopted, Regulation Crypto Assets would establish the first US offering framework designed specifically for crypto projects. Projects could use one of two pathways based on the amount of capital they intended to raise, instead of completing full securities registration.SEC Chair Paul Atkins said the proposal would give entrepreneurs clearer ways to raise capital under federal securities laws. The agency also expects the framework to reduce incentives for projects to establish their operations outside the United States.The SEC released the proposal after postponing last week’s meeting because of what it called an unforeseen scheduling issue. Projects cannot yet rely on either exemption to conduct token sales.A 60-day public comment period will begin after the proposal appears in the Federal Register. The SEC may then revise the proposal, adopt final rules or withdraw it.
