Regulation
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Regulation News
Regulation News
Browse all Regulation related articles and news. The latest news, analysis, and insights on Regulation.
JPMorgan's Analysis of the Crypto Law: 8 Key Points
The CLARITY Act, expected to fundamentally transform cryptocurrency markets in the US, has once again become a hot topic in the industry. A recent JPMorgan report, along with statements from Ripple and Coinbase CEOs and predictions from leading analysts, suggests that this regulation, expected to be enacted by mid-year, could be a true turning point for crypto markets. So what exactly does the CLARITY Act bring?The CLARITY Act aims to create a comprehensive and consistent legal framework for digital assets. Its primary goal is to clearly define the boundaries of authority between the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission). Until now, crypto companies have had to operate in uncertainty, unsure which institution oversees which asset. This law promises to eliminate this gray area.JPMorgan analysts emphasize that if the law passes, the market structure will be fundamentally reshaped. The end of the "regulation through implementation" era, which has been criticized for many years, the encouragement of tokenization, and the opening of the way for more active participation of institutional investors in the sector will be the main pillars of this transformation. Sector leaders are confident the law will passRipple CEO Brad Garlinghouse puts the probability of Congress approving the law by April at between eighty and ninety percent. Coinbase CEO Brian Armstrong is similarly optimistic. US Senator Bernie Moreno stated that he hopes the law will pass by April at the latest. Billionaire investor Kevin O'Leary also stated that he believes the law will be approved, predicting that clear regulations could eventually take Bitcoin to $200,000.JPMorgan's eight positive catalystsJPMorgan analysts point to eight critical positive developments that will come into play if the law passes.Firstly, the issue of token classification will be clarified. Tokens will be separated as digital commodities or digital securities; ETF-linked assets such as XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink will be subject to a lighter regulatory regime.Secondly, new projects will be given priority. Startups raising up to $75 million in funding annually will be able to benefit from a certain exemption period without full SEC registration. This regulation could keep innovations on US soil instead of them fleeing to the shore.Thirdly, a path will be opened for tokens to transition from securities to commodities. Projects deemed "sufficiently decentralized" will be able to trade on a broader secondary market.Fourthly, institutions like BNY Mellon and State Street will be able to directly hold crypto assets.Fifthly, the tokenization of real-world assets will accelerate.Sixthly, miners and software developers will be exempt from intermediary reporting obligations.Seventhly, tax exemptions will be granted for everyday crypto payments, and staking income will be netted. Eighth, regulations targeting stablecoins could redirect institutional interest towards tokenized deposits.Is Bitcoin targeting $150,000-$200,000?Standard Chartered predicts that Bitcoin could reach $150,000 in 2026, driven by rising ETF demand. In long-term forecasts, JPMorgan has set a target price of $266,000 for Bitcoin based on its volatility comparison with gold. Bitcoin is currently trading in the approximately $65,000-$66,500 range.
Hong Kong Presses the Button for Stablecoin
Hong Kong has announced notable steps in its 2026–27 budget to gain a competitive edge in the global cryptocurrency market. In his budget address on Wednesday, Finance Secretary Paul Chan announced that the first licenses for fiat-backed stablecoin issuers will be issued in March. He also stated that a new bill covering companies offering digital asset trading services and custodians will be submitted to the Legislative Council later this year. The Hong Kong government already has a licensing regime in place for stablecoin issuers. Chan said regulators will continue to support licensed entities in developing different use cases within a “compliant and risk-controlled” framework. The first licenses expected to be issued in March are anticipated to be limited in number.HKMA statements earlier this monthHKMA Chief Executive Eddie Yue also stated earlier this month that applications are being thoroughly reviewed in terms of use case, risk management, anti-money laundering (AML) controls, and asset collateral. This approach points to a strategy focused on building robust infrastructure and trust rather than rapid expansion.Another prominent item in the budget was increasing liquidity in the digital asset market. The Securities and Futures Commission (SFC) will take new steps to increase depth in the crypto asset market and strengthen price discovery. The SFC's plan to allow crypto margin financing and derivative products for professional investors is also part of this strategy. The institution has prioritized improving market quality, strengthening investor confidence, and expanding product innovation in a controlled manner.Tokenization is at the heart of Hong Kong's digital asset vision. Chan said that legal clarity will be increased regarding the recording of traditional financial instruments on the blockchain. In particular, guidance will be published on the ability to keep bondholder records on the blockchain. It was also stated that the use of electronic signatures in the issuance of tokenized bonds is being evaluated.A new digital asset platform will be established this year by CMU OmniClear Holdings under the HKMA. The platform will provide infrastructure for the issuance and exchange of tokenized bonds and will be expanded to other digital assets over time. It is planned to integrate with other tokenization systems in the region, supporting Hong Kong's goal of becoming a regional digital finance hub.The Hong Kong government conducted a third-party tokenized government bond issuance in the last quarter of 2025, selling a total of 10 billion Hong Kong dollars (approximately $1.28 billion). The administration announced that such issuances will become regular. This step represents a transition from pilot programs to a permanent market infrastructure.On the other hand, alignment with global standards will also be ensured on the tax side. Over the next two years, Hong Kong will amend its Income Tax Regulations to implement the OECD's Crypto Asset Reporting Framework (CARF) and the updated Common Reporting Standard. This will allow the city to comply with increasing international tax transparency rules for crypto assets.
Banks are Opening Their Doors to Crypto: FED Intervenes
The Federal Reserve (Fed), also known as the US central bank, has taken a critical step that could ease tensions between the cryptocurrency sector and traditional finance. The institution has launched a public consultation process for a formal proposal to permanently remove the concept of "reputational risk" from its bank supervision framework.The Fed's proposal aims to prevent banks from distancing themselves from legally operating customers solely on the grounds of "reputation." This change is seen as a significant turning point, especially for crypto companies that have argued they have experienced difficulties accessing banking services in recent years.60-day consultation period beginsThe proposal, announced on February 23, 2026, will allow for a 60-day public comment period before the regulation is finalized. Comments will be collected after publication in the Federal Register, and the final decision will be made in light of these evaluations.The Fed actually signaled this policy change in June 2025. In that statement, it was indicated that "reputational risk" would no longer be considered in supervisory programs. The step taken now aims to make this approach a binding regulation rather than a temporary guidance.According to the new framework, bank supervisions; It will be based on measurable financial criteria such as capital adequacy, liquidity, financial soundness, risk management, and compliance with existing laws. Public perception, political sensitivities, or social debates will not be part of the audit process.Bowman: Discrimination has no place in auditingFederal Vice Chair for Supervision Michelle W. Bowman made striking statements on the subject. Bowman said that they had heard disturbing examples of some auditors pressuring banks because of their clients' political views, religious beliefs, or because they operate in legal but controversial sectors, citing "reputational risk" concerns.According to Bowman, this kind of discrimination against legally operating individuals and institutions has no place in the Fed's audit framework. The primary purpose of auditing is to ensure financial stability; not to indirectly push certain sectors out of the system. "Operation Choke Point 2.0" debateCrypto sector representatives and some Republican politicians have been calling the practices of recent years "Operation Choke Point 2.0." This statement refers to claims that banks are being discouraged from working with digital asset companies.Senator Cynthia Lummis welcomed the Fed's proposal. Lummis stated that the Fed should not act as both judge and jury for digital asset companies, and that permanently removing "reputational risk" is important for the goal of making the US a global center in the digital asset space.US President Donald Trump had also previously promised to end the practices referred to as "Operation Choke Point 2.0." The political dimension of the discussions has made the issue of access to the banking system not only a financial but also a political agenda item.What does this mean for banks and crypto companies?If the proposal becomes law, banks may feel less apprehensive about facing regulatory pressure when working with crypto companies. This could allow crypto firms to more easily access basic banking services such as account opening, access to payment systems, payroll, and tax processing.Clearer rules could also pave the way for large financial institutions to take a more active role in areas such as digital asset custody, clearing, and ETF services. This could accelerate the integration between traditional finance and the crypto ecosystem. Consequently, the Fed's move to remove "reputational risk" from its supervisory framework is seen not merely as a technical regulatory change, but as a strategic move that could redefine the crypto sector's position within the financial system. The final decision, following a 60-day consultation period, will be crucial for both the banking sector and the digital asset market.
US Bank Approval Granted for Crypto Exchange: Official Process Begins
Cryptocurrency exchange Crypto.com has passed a significant hurdle in establishing a federally overseen national trust bank in the United States. The company announced it has received conditional approval from the Office of the Comptroller of the Currency (OCC) for a national trust bank license. This approval paves the way for the establishment of the entity, which will operate under the name “Foris Dax National Trust Bank” and be publicly known as “Crypto.com National Trust Bank.” However, this stage does not constitute final licensing. For full approval, the company must fully meet the operational and regulatory requirements set by the OCC. The new bank will operate as a limited-purpose national trust bank under federal oversight. It will not accept deposits or provide loans. Instead, it will offer digital asset custody, staking, and trade settlement services. These services will encompass multiple blockchains and protocols, including the company's own blockchain, Cronos. Meanwhile, the Cronos chain's CRO token doesn't seem particularly affected by the developments: Federal oversight for institutional clientsThis step is seen as a critical milestone in Crypto.com's strategy, particularly for institutional investors. The company already offers "qualified custody" through Crypto.com Custody Trust Company, regulated by the New Hampshire Banking Department. However, this structure is overseen at the state level.The OCC license will allow it to consolidate its operations under a single federal umbrella. This is particularly important for ETF issuers, asset management companies, and large financial institutions. Institutional players generally prefer custodians subject to national oversight. Federal oversight is considered the "gold standard" in terms of compliance and security standards.Crypto.com CEO Kris Marszalek stated that the conditional approval reflects the company's commitment to compliance. Marszalek added that this development significantly brings them closer to their goal of offering institutional clients "one-stop" custody services under federal oversight. The Process from Application to ApprovalCrypto.com applied for a national trust bank license in October 2025. The conditional approval received in February 2026 is central to the company's plans to strengthen its presence in the US market. The company also emphasized that this approval would not affect its existing New Hampshire-based custody operations, and that the relevant structure would continue to operate as before.Crypto.com has joined the ranks of crypto companies that have recently taken similar steps. In December 2025, firms such as Ripple, Circle, Paxos, and Fidelity Investments also received conditional approval for national trust bank licenses. BitGo went a step further and managed to obtain full approval to transform its state-level trust company into a national trust bank. In addition, World Liberty Financial, a crypto startup supported by former US President Donald Trump, also made a similar application to the OCC. However, this initiative led some Democratic members of Congress to raise national security concerns due to its political connections. Changes in the Regulatory ClimateTwo important developments have influenced crypto companies to turn to federal banking licenses. The first of these was the OCC's decision in May, which clearly confirmed that banks can hold crypto assets. The second was the GENIUS Act, signed in July, which aims to clarify the framework for the digital asset market. However, cautious messages are coming from traditional banking circles. The American Bankers Association (ABA) and the Independent Community Bankers Association (ICBA) argue that the OCC should be more cautious in its approval processes for crypto companies. According to these institutions, maintaining the security standards of the banking system should remain a priority.
SEC Sends Double Message: No Price Panic, Clarity for Tokenization
U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins and Commissioner Hester Peirce have made it clear that the regulatory agenda will not be shaped by price movements, despite the recent decline in cryptocurrency markets. Speaking at the ETHDenver conference, the two emphasized the need to clarify the position of tokenized securities within existing federal laws.The decline of over 28% for Bitcoin and nearly 40% for Ethereum in the last 30 days has put pressure on the market. Bitcoin fell to around $66,000, while Ethereum tested below $2,000. XRP also saw a drop of approximately 5%. Despite this, Atkins stated that it is not appropriate for regulators to react to daily price fluctuations. “The most appropriate step is for the rules regarding the asset classes we regulate to provide investors with the information they need,” Atkins said, adding that investors should be able to make buy, sell, or hold decisions based on sound data. According to him, the regulator's job is not to concern itself with the direction of prices; To provide a transparent and predictable framework.A message of clarity for tokenized securitiesAtkins and Peirce argued that clearer rules are needed on how tokenized securities will be integrated into existing securities laws. They stated that this clarity would provide greater legal confidence to both developers and investors.It was noteworthy that the SEC did not directly address the market structure bill being discussed in Congress. However, Peirce stated that the institution provided technical support. The bill, which passed the House of Representatives in July and is proceeding in the Senate under the name "CLARITY Act," could shift a significant portion of the authority over digital assets to the Commodity Futures Commission (CFTC).At this point, the institutional structure of the CFTC is also a subject of debate. Michael Selig, who was confirmed as chairman and commissioner in December, is currently the only member of the commission, which should have five members. Some lawmakers in the Senate are focusing on provisions that require the confirmation of at least four commissioners for the market structure law to go into effect. “Don’t panic just because the price is falling”Speaking at ETHDenver on February 18, Atkins said regulators should not get caught up in calls for immediate intervention against market downturns. “Those who focus only on the price constantly rising may be disappointed,” Atkins said, noting that daily volatility is outside the institution’s core mission.The SEC Chairman also stated that the institution has recently adopted a more structured approach. As part of the work called “Project Crypto,” conducted in collaboration with the CFTC, frameworks for classifying crypto assets, rules for tokenized securities traded on automated market makers, and guidelines for the custody of non-security assets are being worked on.Atkins reminded that the SEC has moved away from its “regulation through sanctions” approach, which has been heavily criticized in the past; numerous crypto cases have been dropped, and staff guidelines for mining, staking, and meme coins have been published. Innovation exemption on the agendaOne of the prominent topics in the speech was the “innovation exemption.” Atkins announced plans for a temporary exemption that would allow tokenized securities to be traded with limited volume on decentralized platforms. This exception aims to provide market participants with a controlled testing ground while permanent rules are being established. Hester Peirce, on the other hand, viewed the current downturn as an opportunity for developers. Addressing the "Schadenfreude" of complacency among some regarding the decline in the crypto market, Peirce stated that regulatory clarity alone would not generate value. She emphasized that the real determining factor is the development of products that users truly need.
Third Stablecoin Meeting at the White House: March 1st is a Critical Threshold.
A critical timeline has been set in the negotiations under the Senate-backed Digital Asset Market Clarity Act, which aims to provide a clear framework for cryptocurrency markets in the US. It is reported that the White House wants the disagreement regarding stablecoin reward programs resolved by March 1st, and that failure to reach an agreement by this date could stall the process. Clear message from the White House: No complete banIn a closed session held on Thursday, where the parties met for the third time, White House representatives clarified their position. Accordingly, limited stablecoin rewards tied to specific transactions and activities will be allowed; however, interest-like returns based solely on holding stablecoins, resembling deposit accounts, will be prohibited. According to sources who attended the meeting, this approach increased pressure on banks to reach a compromise. Banking representatives, who previously advocated for a complete ban on stablecoin rewards, have now begun working on a new regulatory language that will allow for limited rewards.Banks' concern: Will the deposit base weaken?The issue is quite critical for the banking sector. Reward programs offered by stablecoin issuers could provide an alternative to interest-bearing deposit accounts in traditional banks. This could directly impact banks' lending capacity and core revenue model.Banks believe that customers shifting their funds to stablecoin platforms could erode their deposit base. Therefore, they initially demanded a complete ban. However, it is stated that in the last meeting, a formula was considered that would differentiate deposit-like returns with limited and transaction-based rewards.Article 404 at the heart of the discussionThe stablecoin section of the bill, particularly Article 404, has become the most critical breaking point of the regulation. Interestingly, this section is not directly related to the market structure. Nevertheless, the fate of the bill seems largely dependent on this heading.Furthermore, the changes being worked on could effectively reshape the GENIUS Act, which came into effect last year and defines the stablecoin framework. While the current law allows crypto platforms more room for reward programs, the new proposal narrows this area but does not eliminate it entirely. The White House wants to speed up the process.The meeting was led by President Donald Trump's crypto advisor, Patrick Witt, on behalf of the White House. Witt and his team urged the parties to move quickly. The goal is to unlock the stablecoin issue and allow broader market structure regulation to move forward in the Senate.The White House is expected to prepare an updated draft text and send it to the banks. The final language will be clarified after the banks review this text and provide feedback. Democrats' demands may complicate the process.Although progress has been made on stablecoin rewards, other issues in the bill are still controversial. Democratic senators are demanding stronger investor protections, especially in the decentralized finance (DeFi) sector. There are also politically charged provisions such as prohibiting high-ranking public officials from directly taking roles in the crypto sector and ensuring full appointments to regulatory bodies. These issues have not yet been resolved. Therefore, although the agreement on stablecoin rewards speeds up the process, bipartisan support seems essential for the bill to receive final approval.
Arizona Makes a Crypto Move: Bill Including XRP and BTC Overcomes First Hurdle
Arizona has taken a significant step towards integrating digital assets into the public treasury. The Arizona Senate Finance Committee approved Bill SB1649, known as the "Digital Asset Reserve Fund Bill," by a 4-2 vote, moving it to the next stage. The bill will now go to the Senate Rules Committee and continue its legislative process.SB1649 envisions the establishment of a "Digital Asset Strategic Reserve Fund" to be managed by the state. This fund aims to hold certain crypto assets that come into the possession of Arizona authorities under a structured reserve system. Specifically, it is planned that digital assets that are seized, confiscated, or voluntarily transferred to the state will be collected under this new fund.The bill provides a clear framework for how digital assets will be stored and managed under state control. In this respect, Arizona is working on a model that shows that crypto assets can be addressed not only from the perspective of the private sector or individual investors, but also from a public finance perspective. XRP Explicitly Defined as a Reserve AssetOne of the most striking elements of SB1649 is the explicit inclusion of XRP among the eligible assets for the reserve. The bill clearly states that XRP and other eligible digital instruments can be held within the reserve in cases of state seizure or voluntary takeover.This explicit reference has symbolic significance in the crypto market, particularly for XRP. The mention of a specific token by name in a state-level legal document is considered a significant sign of institutional and public acceptance of digital assets.However, the bill focuses on how to manage assets already under state control, rather than initiating a new investment program. In other words, it aims not for Arizona to directly purchase crypto from the market, but rather to hold existing and future digital assets within an institutional framework.Custody and Management Framework DefinedAccording to the bill, the management of the reserve fund will be given to the Arizona State Treasurer. The Treasurer will be responsible for the secure custody of digital assets and the management of the portfolio. However, this authority is not unlimited; There is a requirement to comply with a defined custody plan and regulated oversight solutions. The text states that tools such as regulated custody services and exchange-traded products can be used. Thus, the aim is to ensure the security of digital assets through regulated solutions. Not leaving control entirely to private platforms is a key element in terms of protecting public oversight.The bill does not directly replace Arizona's existing "Revised Uniform Fiduciary Access to Digital Assets Act." Instead, it establishes a complementary structure for how digital assets held by public institutions will be stored.The process will continue in the Senate and the House of RepresentativesSB1649, which passed the Finance Committee with a 4-2 vote, will now be considered in the Senate plenary session. If it receives majority support there, it will be sent to the Arizona House of Representatives. Amendments to the bill may be proposed during the House stage.If the bill is enacted in its current form, Arizona could become one of the first US states to create a special reserve structure for seized or acquired crypto assets. The explicit designation of XRP as a reserve asset is seen as a development that could open this model up to debate on a national scale.
Hong Kong Accelerates Crypto Steps: Stablecoin Licenses are in the Agenda
Hong Kong is preparing for a significant milestone in its goal of becoming a global hub for digital assets. The region's Chief Financial Officer, Paul Chan Mo-po, announced that the first stablecoin licenses will begin to be issued next month. While the licenses will initially be shared with a limited number of companies, officials emphasize that the process will be controlled and selective.In his speech at CoinDesk's Consensus Hong Kong conference, Chan stressed that the institutions receiving licenses must have innovative use cases, sustainable and reliable business models. Strong regulatory compliance capacity will also be among the key criteria. This approach demonstrates that the region prioritizes building robust infrastructure and trust rather than rapid growth.Custody services and legal framework are expandingIn addition to stablecoin licenses, the licensing regime for companies providing crypto asset custody services is also being clarified. Chan stated that a new legal regulation concerning this area is planned to be submitted to the Legislative Council in the summer. Considering this alongside the currently existing framework, it appears that Hong Kong aims to create a holistic regulatory structure that covers the entire digital asset ecosystem. According to officials, these steps will both strengthen investor protection and increase the interest of institutional actors in the region. Hong Kong's proactive approach is noteworthy at a time when regulatory clarity is gaining importance on a global scale.Tokenization and DeFi-TradFi ConvergenceIn his speech, Paul Chan stated that three fundamental trends are maturing: tokenization of real-world assets, increased interaction between decentralized finance (DeFi) and traditional finance, and the intersection of artificial intelligence and digital assets.On the tokenization side, Chan stated that the transition from the "trial" phase to real application has begun, reminding that traditional financial instruments such as government bonds and money market funds are starting to be issued on-chain. Thanks to digital ledger technology, clearing processes are accelerating, assets are becoming divisible, and many previously illiquid products are opening up to new investor groups.Emphasis on Artificial Intelligence and "machine economy"Another topic that Chan highlighted was the rise of artificial intelligence. He said that with the development of AI agents capable of making autonomous decisions, the first signals of a new era called the "machine economy" can be seen. In this scenario, AI agents will be able to hold digital assets, pay for services, and transact with each other on-chain.SFC DecisionMeanwhile, the Hong Kong Securities and Futures Commission (SFC) announced new policy updates for the crypto market. The regulator published a high-level framework for licensed platforms to offer crypto perpetual contracts to professional investors.Under the new regulation, perpetual products will only be available to professional investors. Platforms are required to implement strict risk management rules such as leverage limits, collateral requirements, liquidation mechanisms, and transparency obligations. These products will also be under constant supervision, and platforms will need to prove they have strong internal control systems.The SFC also allowed licensed brokerage firms to provide financing for crypto transactions using a wider range of collateral. The regulation specifically stated that Bitcoin and Ether could be accepted as collateral. However, customer suitability assessments and internal risk controls will play a critical role in this process.SFC Administrator Eric Yip said that this year's focus is on market quality, not rapid expansion. The priority is; The goals are to increase liquidity, strengthen price discovery, and build investor confidence. Within this framework, affiliated companies will be permitted to act as market makers under certain conditions, but governance and oversight rules will be strict to prevent conflicts of interest.
UK Files Lawsuit Against an Exchange for Illegal Crypto Advertising
Cryptocurrency oversight in the UK has entered a new phase. The country's financial regulator, the Financial Conduct Authority (FCA), announced it has initiated legal proceedings against the global cryptocurrency exchange HTX. The FCA alleges that HTX promoted its cryptocurrency services to British users in violation of existing financial advertising rules, thus engaging in illegal marketing activities.According to the FCA's statement, the legal proceedings were initiated in October 2025 in the Chancery Division of the High Court of England. The regulator also stated that it recently obtained permission from the court to serve the case outside the UK through alternative channels. This is primarily because HTX is incorporated in Panama and its corporate structure operates outside the UK. HTX was previously known as Huobi Global and had a large global user base. FCA'a warning to HTXThis legal step was taken under the Financial Promotions (FinProm) regime, which came into effect in October 2023 and imposes strict rules on how cryptocurrency companies can advertise to British consumers. The regulation in question mandates that cryptocurrency advertisements must be “fair, transparent, and not misleading.” The FCA emphasizes that promoting cryptocurrencies through social media or websites without adhering to these rules constitutes a clear criminal offense. The regulator also noted that this is not the first time HTX has been warned on this matter. According to the FCA, the exchange had previously been warned for illegal advertising targeting users in the United Kingdom. Despite this, HTX continued its promotional activities on popular platforms such as TikTok, X, Facebook, Instagram, and YouTube. The FCA argues that this constitutes a deliberate violation of the rules. The FCA's assessment also highlighted a lack of transparency regarding HTX's corporate structure. According to the regulator, the company does not clearly share basic information such as its ownership structure and who manages its website. Furthermore, it is stated that the company has gone unanswered for extended periods in response to the FCA's communication attempts. Although HTX has blocked new UK users from registering following the legal proceedings, existing users are reportedly still able to access the platform and encounter what the regulator has deemed “illegal” advertising. Steve Smart, Co-Director of Enforcement and Market Surveillance at the FCA, stated that the aim of the regulations is to create a sustainable and competitive crypto market in the UK. Smart said, “Consumers need access to accurate information to make informed decisions about high-risk assets. HTX’s stance is in stark contrast to the vast majority of firms trying to comply with the regulations.” This case is notable as it marks the first enforcement action initiated by the FCA against a company illegally marketing crypto to British consumers. Additionally, the FCA has requested that social media companies block HTX accounts from being visible in the UK. It has also requested the removal of HTX applications from Google Play and the Apple App Store in the UK. The agency states that these steps are aimed at protecting local investors. HTX has also been added to the FCA’s official Warning List. Users who trade with firms on this list are not eligible for consumer protection mechanisms in the United Kingdom. The FCA points out that investors who trade with such unauthorized platforms have a very low chance of recovering their money if the company ceases operations.
Today at the White House: Crypto Meeting, Stablecoins on the Table
Uncertainty surrounding cryptocurrency regulations in the US has reignited tensions in Washington. As government officials, Wall Street representatives, and leading figures in the crypto sector prepare to meet at the White House on February 10th, the long-standing Clarity Act impasse is seen as entering a critical phase. At the heart of the discussions is the issue of interest-bearing stablecoins, which has become the most contentious topic of debate. Why is stablecoin interest so controversial? Crypto companies argue that stablecoins' ability to offer interest is a natural extension of a modern and efficient financial system. They claim this approach creates additional income opportunities for individual users and supports financial innovation. Coinbase, one of the sector's largest players, generated $355 million in revenue from stablecoin operations in the third quarter of 2025 alone. Companies argue that such returns have become an integral part of their business models and that banning them would cause the US to fall behind in global competition. The picture is quite different for traditional banks. Banks are warning that the proliferation of interest-paying stablecoins could lead to an outflow of approximately $6.6 trillion from deposit accounts. This scenario is seen as a serious risk to the banking system. Bank lobbies argue that these products could erode deposits, weaken the lending mechanism, and threaten financial stability. Further complicating the discussions is the proposed "skinny" master account system by the Federal Reserve. This system would grant some crypto companies limited access to central bank services. Crypto firms believe this access is insufficient for real growth and stability, while banks argue that even limited access could open the door too quickly. Ultimately, the proposal fails to satisfy either side, making compromise difficult. Past experiences show that delays in regulatory processes have severe impacts on the market. Following the February 2nd meeting, the total cryptocurrency market capitalization quickly fell from $2.64 trillion to $2.54 trillion. A bigger shock occurred on January 15th, when the Senate Banking Committee abruptly canceled the vote on the CLARITY Act, causing crypto prices to plummet by approximately 7.5% in minutes, wiping out billions of dollars in value.On the other hand, it is known that the market recovers quickly when agreements are reached. The GENIUS Act, signed on July 18, 2025, triggered a nearly 12% increase in many altcoins in just one week. This example once again demonstrates how critical regulatory clarity is for markets.Today, the market is once again in wait-and-see mode. Even before the meeting concludes, signs of stress are evident. Concerns that stablecoin interest rates could be banned are weakening investor confidence, while the total crypto market capitalization fell by 1.65% in a single day to $2.36 trillion. Bitcoin is trying to hold around the $69,000 level, while Ethereum has retreated to around $2,040.
China Delivers New Blow to Crypto: Decisions Announced
China has once again clarified its tough stance on the cryptocurrency ecosystem. New regulations announced on February 6, 2026, completely ban internet companies from offering any crypto-related services, while also comprehensively targeting the issuance of unverified stablecoins and the tokenization of real-world assets (RWA). This move by Beijing stands out as one of the broadest steps in its gradually tightening anti-crypto policy in recent years. Ban on Internet CompaniesThe new framework directly covers not only financial institutions but also technology and internet companies that form the backbone of the digital economy. Texts published by the People's Bank of China and related regulatory bodies explicitly prohibit internet companies from offering crypto wallets, facilitating crypto payments, or otherwise enabling crypto trading. This directly targets a broad technology ecosystem, including giant platforms like Alibaba, Ant Group, and Tencent. Authorities defend these bans on the grounds of protecting financial stability and preventing illicit capital movements. However, the prevailing view in the market is that the main motivation is the state's desire to maintain absolute control over monetary policy. Especially as the digital yuan (e-CNY) project progresses, it appears that no space is left for any digital currency or token structure originating from the private sector. Another critical pillar of regulation is stablecoins. The Chinese government has directly banned the issuance of yuan-referenced stablecoins without official approval. While stablecoins are becoming increasingly accepted globally for cross-border payments and digital finance infrastructures, Beijing positions these tools as a potential threat to financial sovereignty. This approach also reveals how low China's tolerance is for the emergence of an alternative digital payment ecosystem. Comprehensive ban on RWAsPerhaps the most striking decision was the comprehensive ban on the tokenization of real-world assets. RWA models, which refer to the conversion of real estate, commodities, or financial securities into tokens on the blockchain, are completely banned within China's borders. For RWA platforms operating abroad, the condition is that they can only operate with official approval and under strict supervision. A joint statement by seven major financial associations in China highlighted the dangers of RWA tokenization, including the risk of counterfeit assets, transparency issues, and excessive speculation. These steps also reiterate the fact that cryptocurrency trading remains illegal in the country. General bans initiated in 2021 were intensified throughout 2025, and this final move in 2026 indicates the complete closure of even indirect access channels through internet companies. The official statement reiterates that cryptocurrencies are not legal tender and will not be accepted as a means of payment.
SEC Provides Clear Framework for Tokenized Securities
The U.S. Securities and Exchange Commission (SEC) has published comprehensive guidance on new financial instruments categorized under tokenized securities. Released to the public Wednesday night, this document incorporates joint assessments from the SEC's Corporate Finance, Investment Management, and Trading and Markets divisions, and specifically aims to clarify the legal status of securities represented on blockchain technology.SEC's guidance on tokenized assetsThe SEC's approach in the guidance is quite clear. The issuance of a security in token format or its representation on crypto networks does not exempt it from existing securities legislation. According to the agency, tokenized securities remain subject to the same legal framework as traditional securities. This means that registration obligations, public disclosure rules, and investor disclosure responsibilities remain the same.The guidance defines tokenized securities as the representation of financial instruments defined in federal securities laws in crypto asset format. The SEC emphasizes that holding ownership records, either partially or entirely, on crypto networks does not alter the legal nature of the asset. In other words, the security itself remains the same, even if the technology changes. This step is seen as a continuation of the SEC's efforts to create a clearer and more predictable regulatory framework for crypto asset markets. In November, SEC Chairman Atkins announced that a "token taxonomy" would be created to differentiate between digital assets. The recently published guidance is considered a significant milestone in demonstrating how this approach will be implemented in practice. The SEC categorizes tokenized securities into two main categories. The first group is defined as "issuer-backed tokenized securities." In this model, the issuer directly integrates the blockchain into its own ownership record system. On-chain transfers represent actual security transfers, and investor records are held on crypto networks instead of traditional databases. According to the SEC, this structure is no different from classic securities issuance except for the technical infrastructure. The second category encompasses tokenized securities offered by third parties. In this model, a third party holds the underlying security in custody and offers the investor a tokenized right to that asset. The SEC views this structure as similar to existing custody and ownership regulations and emphasizes that the token format does not affect legal practice. In addition, the guidance also addresses synthetic structures called “linked securities.” These products offer investors exposure to economic returns without providing certain rights, such as voting rights. The SEC states that these structures should also be evaluated under existing securities and derivatives regulations. The publication of the guidance coincides with ongoing work on a comprehensive market structure law for the cryptocurrency market in the US. At the same time, global exchanges and financial platforms are preparing to launch tokenized stocks and similar products. The New York Stock Exchange's announcement that it plans to launch a platform for tokenized US stocks and ETFs, subject to regulatory approval, stands out as one of the most concrete examples of this transformation. In general, this SEC guidance clarifies how existing regulations apply to tokenized securities, rather than introducing new rules for the market.
Crypto Knot in the US: White House Sit Down with Banks
The White House is preparing to bring together top representatives from the banking and crypto sectors next week to try to overcome the Senate deadlock on cryptocurrency legislation. According to Reuters, citing three sources familiar with the matter, the meeting will focus particularly on reward mechanisms related to stablecoins. This has become a key point of disagreement that has hampered progress in the Senate Banking Committee in recent months. The summit will reportedly be organized by the White House crypto council. The discussions will center on uncertainties surrounding the implementation of the GENIUS Act, passed by Congress this summer, which provides a framework for stablecoins. While this legislation prohibits stablecoin issuers from receiving direct interest payments, it doesn't completely close the door on third-party platforms (including crypto exchanges) offering various rewards to users. The banking sector argues that this flexibility could lead to deposit losses. The Blockchain Association is one of the institutions that has confirmed its participation in the meeting. In a statement, the union's CEO, Summer Mersinger, said that Congress has the opportunity at this stage to establish clear and bipartisan rules. According to Mersinger, a framework that protects consumers, encourages responsible innovation, and preserves the US's global leadership in financial technologies should no longer be delayed.What's happening between banks and crypto companies?Recently, tensions between banks and crypto companies have been steadily increasing. Banking unions argue that the insufficient limitation of reward mechanisms in the GENIUS Act will particularly put local and regional banks in a difficult position. The crypto side, on the other hand, argues that banks are trying to suppress competition, that these issues were negotiated before the law was passed, and that the sector was targeted at the last minute. At the heart of the discussions is the question of whether rewards should be considered a form of "interest." This disagreement directly affected the legislative calendar in the Senate. A hearing planned by the Senate Banking Committee in mid-January was canceled at the last minute after crypto exchange Coinbase withdrew its support. Coinbase cited its dissatisfaction with the lack of clarity regarding the approach to tokenized shares and stablecoin rewards. The Senate Agriculture Committee is preparing to hold a hearing this week; however, it is reported that the draft text presented last week did not receive sufficient support from the Democrats. On the White House side, there is a clear will to accelerate the process. Patrick Witt, who serves on the President's Digital Assets Advisory Council, emphasized that the US should pass comprehensive legislation regarding the crypto market structure without delay. Witt noted that the current crypto-friendly political climate may not be permanent and that action should be taken before momentum is lost. According to him, such legislation is inevitable; the only debate is when it will be implemented. The summit planned for next week is therefore seen as a critical turning point. It is expected that the deepening disagreements between banks and crypto companies will be discussed, and that common ground will be sought, particularly regarding stablecoin rewards. The messages that emerge from the meeting could provide important signals determining whether the Senate negotiations will get back on track and what path the US will take in crypto regulation.
The Era of Crypto ETFs in Japan Could Begin in 2028
A significant shift in Japan's regulatory approach to cryptocurrency markets is underway. The country's financial regulator, the Japan Financial Services Agency (FSA), is considering adding cryptocurrencies to the list of eligible assets for spot exchange-traded funds (ETFs). According to Nikkei Asia, Japan could approve its first spot crypto ETFs by 2028. Such a move would effectively end the FSA's current ban on spot crypto ETFs. This timeline is seen as a further postponement of expectations for the launch of crypto ETFs in Japan. Indeed, a KPMG Japan executive argued in August 2025 that approval of Bitcoin ETFs would be difficult before 2027. Recent developments indicate that the regulatory process is proceeding cautiously but steadily. On the other hand, the picture regarding investor demand is quite clear. Nomura Holdings executive Hajime Ikeda, referring to a previously shared survey, stated that more than 60% of Japanese investors want to invest in crypto assets “in some way.” This data shows that the regulator's ETF move is not only aimed at aligning with global trends but also responds to domestic market demand.Nomura and SBI are ready for Japan's first crypto ETFsAccording to Nikkei, Nomura Holdings and financial giant SBI Holdings have developed Japan's first crypto ETF products and are awaiting approval. These ETFs are planned to be listed on the Tokyo Stock Exchange. If approved, investors will be able to access crypto assets through a structure similar to stock or gold ETFs. SBI Holdings confirmed last year that it planned to launch XRP-based ETFs if it received regulatory approval. In a presentation published in August, the company announced that it was working on two separate products. The first of these is the "Gold and Crypto Assets ETF," which allocates 49% of its assets to Bitcoin, while the second is designed as an ETF offering exposure to both Bitcoin and XRP. This structure suggests that crypto products in Japan may not be limited to Bitcoin alone.Examples from the US and Asia are leading the way for JapanGlobally, while Japan's step is delayed, it is not alone. The US and Hong Kong approved their first spot crypto ETFs in 2024. In the US, spot Bitcoin ETFs quickly gained significant interest, reaching approximately $115.8 billion in net assets and a size equivalent to 6.5% of Bitcoin's total market capitalization. Thanks to these products, institutional investors such as pension funds, family offices, and university foundations have been able to enter the crypto markets more easily. The largest ETFs in operation are as follows: The ETFs in Hong Kong, however, differ from the US by offering in-kind creation and redemption options. Funds in the region have direct access to assets such as Bitcoin, Ether, and Solana. In South Korea, work is underway on a Digital Asset Basic Law, and this framework is expected to pave the way for spot crypto ETFs. Recently, Japanese Finance Minister Satsuki Katayama declared 2026 as the "digital year," expressing support for crypto transactions being conducted through exchanges. Katayama stated that in the West, crypto investment products are being adopted as a hedge against inflation through ETF structures, and similar approaches could be seen in Japan.
SEC and CFTC to Meet for Crypto: Eyes on January 27
Following months of uncertainty regarding cryptocurrency regulations in the US, a significant step is being taken. The Securities and Exchange Commission (SEC) and the Commodity Futures Commission (CFTC) have announced they will hold a joint meeting on January 27 to harmonize their oversight and jurisdiction over crypto assets. This move is seen as part of President Donald Trump's efforts to create a regulatory framework consistent with his goal of making the US the "crypto capital of the world."Crypto rules in the US are being discussedAt the event, which will take place at the CFTC headquarters in Washington DC and will be open to the public, the heads of the two agencies, Paul S. Atkins and Michael S. Selig, will outline a coordinated oversight approach to crypto markets. The meeting will also be streamed online. This is seen as a signal of a shift from the long-criticized closed-door regulatory processes to a more transparent era. SEC Chairman Atkins emphasized that companies operating in the crypto markets have been caught between unclear and conflicting regulatory boundaries for years. According to Atkins, this situation stems from a structure based on outdated divisions of jurisdiction that does not reflect today's digital asset ecosystem. CFTC Chairman Selig, on the other hand, argued that alignment between the two institutions would ensure that innovation remains within US borders and pave the way for the sector. This development comes at a time when crypto regulations in the US have been stalled for months. The lack of progress on the CLARITY Act in Congress has particularly disappointed the sector. The draft released by the Senate Banking Committee received harsh criticism from crypto companies, resulting in a delay in the voting process. The Senate Agriculture Committee is trying to move the process forward with a more partisan text. Interestingly, the Agriculture Committee's review date of the draft coincides with the joint meeting of the SEC and CFTC. Confidence in the regulatory process also appears to be weakening. According to data from the prediction market platform Polymarket, investors are increasingly giving less chance to the CLARITY Act becoming law before 2026. The probability ratio in question has fallen by approximately 24 percent compared to its previous peak level. This indicates that regulatory uncertainty has been priced in and expectations have been revised downwards. Disagreements are also noticeable within the crypto community. Cardano founder Charles Hoskinson sharply criticized Ripple CEO Brad Garlinghouse's "a bad law is better than no law" approach. Hoskinson argues that a hastily enacted and problematic regulation will harm the sector in the long run. In contrast, the White House is painting a more optimistic picture, believing that the CLARITY Act will be passed sooner or later, and is calling on industry representatives and public authorities to find common ground. The joint SEC and CFTC event on January 27th is also being read as a symbolic message that years of jurisdictional disputes have ended. Clearer rules are expected to emerge in areas such as spot crypto markets, DeFi applications, tokenized assets, and 24/7 digital marketplaces.
