Regulation
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Regulation News
Regulation News
Browse all Regulation related articles and news. The latest news, analysis, and insights on Regulation.
Trump’s Approval of Ethics Provision Lifts Crypto Market, Bitcoin Rises
The crypto market gained strong momentum today following reports that the final obstacle blocking the long-awaited US crypto market structure bill, the CLARITY Act, may have been removed.Eleanor Terrett, host of the Crypto in America program, said on X that President Donald Trump had agreed to a critical ethics provision in the bill. According to Terrett, the language was sent to a group of Republican senators. This marks tangible progress in negotiations that have remained stalled for months.Why was the ethics provision so important?The ethics issue was the main obstacle preventing the CLARITY Act from advancing through the Senate. The bill aims to distinguish digital assets classified as commodities from those treated as securities, draw clearer regulatory boundaries between the SEC and CFTC, and end years of uncertainty shaped by enforcement actions and lawsuits.At the center of the debate is the extent to which serving politicians should be allowed to profit from crypto. Trump’s own meme coins and his family’s stake in World Liberty Financial have intensified scrutiny. Financial disclosures released last month showed that these investments had generated millions of dollars for him.The provision was discussed during a July 16 meeting involving Trump, Republican Senators Bernie Moreno and Cynthia Lummis, and White House crypto adviser Patrick Witt. A source speaking to CoinDesk said a preliminary agreement had been reached with Trump.However, Democrats have not yet seen the proposed language, and no draft has been made public. The White House and the offices of the senators involved declined to comment. The source said the draft was expected to be released shortly. The Senate needs to vote on the legislation by early August.Market reaction came quicklyBitcoin climbed above $66,000 following the reports. The cryptocurrency gained roughly 3% to 3.5% over the past 24 hours, reaching its highest level in more than a month. Ethereum, BNB and XRP posted even stronger gains. Another factor supporting the rally came from Asian markets. Selling pressure on semiconductor stocks, which weighed on crypto prices last week, began to reverse. The rebound helped strengthen broader risk appetite.Alex Kuptsikevich, chief market analyst at FxPro, pointed to the 61.8% Fibonacci retracement level of the May–June decline, located below $68,000. He said a sustained move above this area would provide further confirmation of a bullish trend reversal.Prediction markets also changed directionOn prediction platform Polymarket, the implied probability of the CLARITY Act becoming law this year jumped from 32% on Friday to 43% on Monday. The increase marked a sharp recovery from the market’s lowest level since trading began in January.The rally continued during the European session on Tuesday morning. Bitcoin traded near $66,300, with its 24-hour gain approaching 3%. Ethereum and XRP rose by around 4%.Market participants, however, pointed to the recovery in artificial intelligence and semiconductor stocks, led by memory chip manufacturers such as Samsung and SK Hynix, as the main driver of the move. Reports concerning the ethics provision were viewed as an additional factor strengthening risk appetite.The bill’s fate now rests with the Senate. Until the proposed language is officially released, it remains uncertain how long the market can maintain its current optimism.
Russia Establishes Legal Framework for Cryptocurrency Trading
The Russian government has passed comprehensive legislation regulating cryptocurrency trading. Titled “On Digital Currency and Digital Rights,” the law covers a broad range of activities, from the custody of assets such as Bitcoin to cross-border transactions.The legislation introduces clear rules for exchanges, brokers, custodians and other intermediaries. Oversight of the market will fall under a single authority: the Central Bank of Russia. This significantly expands the bank’s role in the cryptocurrency market, where it had previously acted largely as an observer.The bill is now reportedly awaiting President Vladimir Putin’s signature, which is expected soon. Once signed into law, it will become official and a transition period will begin on the designated effective date.From an unregulated market to a licensed systemThe law will create a formal route for licensed crypto businesses. Until now, much of Russia’s cryptocurrency market has operated outside regulatory oversight. Under the new system, companies providing exchange, brokerage and custody services will need to register and follow official rules.This reflects Russia’s often contradictory approach to cryptocurrencies. Crypto mining has been permitted under certain conditions for some time, while the use of digital assets as a means of payment remains prohibited. The new law does not fully resolve this contradiction, but it clarifies the legal framework for trading and custody services.The figures highlight the size of the market. According to Russia’s Ministry of Finance, daily cryptocurrency trading volume in the country has reached $640 million. Much of this activity still takes place outside official channels, which is precisely what the new legislation aims to change.The scale of unregulated trading has long concerned Moscow due to lost tax revenue and challenges related to capital controls. Cross-border cryptocurrency transactions have become especially sensitive as Western sanctions against Russia have tightened.Retail investor limit, no legal payment statusThe law also introduces a cap for retail investors. Investors who do not qualify as professionals will be allowed to purchase up to 300,000 rubles, or approximately $3,820, worth of cryptocurrency per year.Higher limits will apply to qualified investors under separate regulations. This distinction is consistent with Russia’s existing investor classification system in traditional capital markets and appears intended to provide some protection for smaller investors against the volatility of cryptocurrencies.There is also something the law does not do: it does not recognize Bitcoin or any other cryptocurrency as an official means of payment in Russia. Trading and custody will now operate within a legal framework, but using cryptocurrency for everyday purchases remains prohibited.This approach is similar to the policies adopted by many other countries. Authorities recognize cryptocurrencies as investment assets while preserving the exclusive status of the national currency as legal tender.Russia’s move comes as the US Congress continues to debate the CLARITY Act. The two regulatory processes are advancing at different speeds and under different political conditions, but they share a common direction: bringing cryptocurrency markets onto a more institutional and closely supervised footing.While the US process continues through congressional committees, Moscow appears to be one step ahead. After Putin signs the legislation, attention will turn to how the rules are implemented, particularly in relation to cross-border transactions and entities affected by international sanctions.
CLARITY Act Enters Final Stretch as Crypto Lands on Senate Agenda Before Recess
The U.S. House of Representatives today hosted a field hearing titled “Building the Future of Finance: How the CLARITY Act Unlocks Innovation.” Republican Representative William Timmons of South Carolina said the CLARITY Act is crucial to keeping the U.S. economy at the center of the global financial system.“We’re on the one-yard line; we just have to score the touchdown,” Timmons said, signaling that the legislation has reached its final stage.The witnesses included Nova Labs Chief Legal Officer Sarah Aberg, Bullish executive Randi Abernethy, WisdomTree’s Ryan Louvar and Coin Center’s Jason Somensatto. The agenda also included H.Res. 111 and H.R. 8957, known as the American Reserve Modernization Act, which became the hearing’s main focus.Senate faces a narrowing windowSpeaking at a summit in Washington, Timmons reiterated that the legislation remains one of the president’s top priorities and has attracted work from members of both parties. He acknowledged that the process could face setbacks but said lawmakers would ultimately get it done.The congressional calendar leaves little room. The House and Senate have only recently returned to Washington following the July 4 recess. The House is scheduled to leave again on July 24, while the Senate will remain in session until August 7.The House passed its version of the legislation a year ago, but the proposal has remained in the Senate since then. Senate Majority Leader John Thune wants to bring the measure to the floor before the August recess, while lawmakers are expected to release an updated draft this week.Even if the Senate approves its own version, the legislation would have to return to the House. That step could prevent Congress from completing the process before the recess. Timmons said the negotiations might continue over the coming months, although lawmakers aim to finalize the bill before the November elections.Five key figures discuss ethics provisions involving TrumpThe Senate has largely moved past disputes between banks and the crypto industry over stablecoin rewards, as well as the debate surrounding legal protections for software developers. One major issue remains unresolved: how lawmakers should regulate potential conflicts of interest connected to President Donald Trump’s crypto activities.Bipartisan negotiators have spent months drafting ethics provisions that would restrict how presidents, vice presidents, members of Congress and federal officials can earn income from digital assets while in office.Trump is expected to meet on Thursday afternoon with Republican Senators Bernie Moreno and Cynthia Lummis, White House crypto adviser Patrick Witt and White House Chief of Staff Susie Wiles. The group will try to resolve the dispute and secure the president’s approval.Nevada Representative Steven Horsford said he hoped the debate would focus on digital asset users instead of the administration or the Trump family. In his view, lawmakers should prioritize voters, users and small businesses that stand to benefit from clear regulation.Gallego: Democrats will not vote for the bill without strong ethics rulesReports published ahead of the meeting suggest that the current proposal lacks sufficient Democratic support. Arizona Senator Ruben Gallego said Republicans were taking their own ethics language to the president instead of presenting provisions negotiated with Democrats.Gallego made clear that the bill would not secure Democratic votes without strong ethics safeguards.Blockchain Association CEO Summer Mersinger also described the ethics debate as the central issue in the negotiations. She said most Democratic offices she had contacted remained concerned about the ethics language and were unwilling to move forward without an agreement.Mersinger nevertheless remained optimistic. She said the appropriate officials were involved in the talks and added that she had yet to meet anyone who did not want Congress to complete the legislation.Meanwhile, gambling companies are lobbying lawmakers to add rules governing prediction markets, particularly those involving sports betting. Mersinger described such an amendment as a “poison pill.” Horsford argued that Congress should address prediction markets through separate legislation rather than including the issue in the CLARITY Act.
Europe Selects 36 Payment Companies for Digital Euro Pilot
The European Central Bank (ECB) announced on Tuesday the 36 payment service providers selected to participate in the pilot phase of the digital euro project. The list includes major names such as Deutsche Bank, UniCredit and Revolut, as well as U.S.-based Stripe and European payment processors Adyen, SumUp and Worldline.Only 36 of more than 50 applicants were selected. The pilot will begin in the second half of 2027 and run for 12 months. Alongside the ECB, 19 of the euro area’s 21 national central banks will participate. Bulgaria and Malta are absent from the list, and the ECB did not explain why.The full list of 36 participants is as follows:#CompanyCountry1AdyenNetherlands2Banco Comercial PortuguêsPortugal3Banca Monte dei Paschi di SienaItaly4Banca SellaItaly5Bank of CyprusCyprus6BAWAGAustria7BPCEFrance8Caixa Geral de DepósitosPortugal9CECABANKSpain10Cooperative Bank of ChaniaGreece11Corvus PayCroatia12Deutsche BankGermany13DZ BANKGermany14IsybankItaly15JCC Payment SystemsCyprus16Landesbank Hessen-Thüringen GirozentraleGermany17National Bank of GreeceGreece18Nexi PaymentsItaly19Nova Ljubljanska bankaSlovenia20NumiaItaly21OP Retail CustomersFinland22PAYONEGermany23Piraeus BankGreece24Poste ItalianeItaly25Raiffeisen Bank InternationalAustria26Raiffeisenbank AustriaCroatia27Revolut BankLithuania28RS2 Financial ServicesGermany29Satispay EuropeLuxembourg30Stripe Technology EuropeIreland31SumUpIreland32Tatra bankaSlovakia33UniCreditItaly34Unicre – Instituição Financeira de CréditoPortugal35Uinku PaymentsSpain36Worldline Financial Services (Europe)LuxembourgWhat will the pilot test?The pilot will assess the digital euro’s technical functionality and operational processes. It will also be used to improve the user experience.Staff at participating central banks will test person-to-person and person-to-business payments at physical points of sale and through e-commerce platforms. The version used in the pilot will be technically close to the final product, although it will not have legal tender status.Dollar stablecoins remain in the backgroundThe ECB did not mention the word “stablecoin” anywhere in its announcement. However, the broader motivation behind the project is clear.According to CoinGecko data, almost the entire $306 billion stablecoin market is tied to the U.S. dollar. Tether’s USDT and USD Coin, or USDC, account for 84% of the market between them.Circle’s EURC, the largest euro-denominated stablecoin, has a market capitalization of around $424 million. That makes it roughly one-four-hundredth the size of USDT.ECB President Christine Lagarde previously rejected proposals for privately issued euro stablecoins, arguing that public money should fulfil that role. The central bank has also warned that widespread adoption of private euro-denominated tokens could pose a risk to bank deposits.One of the companies on the pilot list is Revolut, which removed USDT from its European platform after the transition period under the Markets in Crypto-Assets Regulation, or MiCA, expired this month.The inclusion of U.S.-based Stripe in the same group raises a separate set of questions.Legal process moves forward in parallelThe European Parliament approved the digital euro legislation on July 9 by 416 votes to 169. Negotiations with EU member states and the European Commission began on July 13.The negotiating team, led by Spanish lawmaker Fernando Navarrete, aims to finalise the legislation this year. If the timetable holds, the first issuance could take place in 2029.Nothing will change for consumers before 2027. If the project reaches the issuance stage, Europeans will be able to use central bank money in digital form and spend it like cash in stores and online.The 169 votes against the legislation show that the project remains controversial even within the European Parliament.Critics argue that the digital euro could ultimately benefit U.S. payment companies. Stripe’s presence on the pilot list does little to settle that debate. Instead, it is likely to intensify it.
Japan to Cut Cryptocurrency Tax Rate to 20%
The Japanese Parliament has approved a legal amendment that classifies cryptocurrencies as financial products. The change marks a fundamental shift in the country’s Financial Instruments and Exchange Act.The bill passes both chambersThe amendments were approved during a plenary session of the House of Councillors on Wednesday, completing the legislative process in both chambers of the Japanese Parliament. According to NHK, the approval brings the parliamentary stage to a close.The new framework reclassifies crypto assets as a separate category of financial products, similar to stocks and bonds. This represents a major turning point. Until now, cryptocurrencies have been regulated as a payment method under the Payment Services Act. They will now be treated more like exchange-traded stocks and bonds.According to CoinPost, the legislation introduces stricter prohibitions against insider trading. Crypto asset issuers will also face mandatory annual disclosure requirements.Penalties for unregistered operators will become significantly tougher. The maximum prison sentence will increase from three years to ten years, while the maximum fine will rise from 3 million yen to 10 million yen, equivalent to approximately $18,500 and $61,600, respectively.Tax burden to be reducedThe most notable part of the reform is the introduction of a separate taxation system for cryptocurrency profits. Under the new framework, the effective tax rate will be approximately 20%, while investors will also be allowed to carry losses forward for three years.This represents a substantial reduction. Cryptocurrency gains in Japan are currently classified as “miscellaneous income,” with tax rates reaching as high as 55%. Investors have complained about this disparity for years, and the heavy tax burden has often been cited as one of the factors pushing crypto businesses and investors out of the country.However, the tax changes will not take effect immediately. The reform is expected to enter into force in January 2028, with implementation forming part of the 2027 fiscal year. Investors will therefore have to wait roughly another year and a half before benefiting from the new rates.The path opens for spot ETFsThe legislation also lays the groundwork for the introduction of spot cryptocurrency exchange-traded funds in Japan.According to CoinPost, Japan Exchange Group, or JPX, plans to list the first crypto ETFs as early as 2027. Traditional financial institutions are expected to act as issuers.However, local approval for Bitcoin ETFs is not yet guaranteed. Regulators have not made a firm commitment on whether such products will receive final authorization.The law is expected to be formally promulgated in the near future and is scheduled to take effect within one year of its promulgation. Detailed implementation rules will be clarified through cabinet orders and regulatory guidelines. Much of the practical work surrounding the new framework therefore remains unfinished.Japan has long followed a cautious yet consistent approach to cryptocurrency regulation. Following the Mt. Gox collapse, the country placed the sector under strict supervision. It is now attempting to integrate the asset class into mainstream finance while maintaining that regulatory discipline.The combination of lower taxes and a potential spot ETF framework suggests that Tokyo wants to strengthen its position against Hong Kong and Singapore in the regional competition for cryptocurrency investment and financial innovation.
US Stablecoin Bill Faces a Double Block as 76 Banking Groups and Democrats Push Back
The American Bankers Association, the Independent Community Bankers of America and 76 state banking associations have called for changes to the stablecoin yield provisions in the Clarity Act, which is awaiting action in the Senate.In a joint letter sent Monday to Senate Majority Leader John Thune and Minority Leader Charles Schumer, the groups argued that the rules governing payment stablecoins need to be defined more clearly.The letter focuses on Section 404 of the bill. The provision would prohibit crypto companies from offering direct or indirect interest or yield on payment stablecoins, while still allowing transaction-based rewards. Banking groups believe the distinction is not sufficiently clear in practice.What does the lack of clarity mean?The associations argue that the current wording of Section 404 leaves uncertainty over whether it would prevent interest-like programs designed to encourage customers to hold stablecoins for extended periods.In their view, this could allow stablecoins to function as substitutes for bank deposits, creating particular risks for smaller community banks.Their reasoning is straightforward. Deposits held at community banks provide funding for mortgages, small-business financing and agricultural loans, all of which support local economies.The groups said clearly defined limits on interest and yield-like incentives are therefore essential to protecting the flow of credit into these areas.Their request is explicit: lawmakers should strengthen the yield ban and remove ambiguous language that could permit rewards linked to the size of a stablecoin balance or the length of time it is held.Opposition continues to growThe letter marks the latest stage in the banking industry’s long-running opposition to yield-bearing stablecoins.Meanwhile, the Federal Law Enforcement Officers Association has supported the House version of the bill, while calling for additional provisions to preserve law enforcement powers in anti-money laundering investigations and cases involving decentralized systems.Another unresolved issue involves ethics rules. It remains unclear whether the final bill will include a provision restricting the president, vice president, members of Congress and other senior federal officials from personally profiting from digital assets while in office.Senator Elizabeth Warren, one of the most influential Democrats involved in the debate, sent a formal letter to the Senate demanding the inclusion of such a provision. She argued that excluding it would effectively create an opening for the Trump family.Warren noted that Trump reportedly earned around $1.4 billion from crypto ventures in 2025, more than twice his total income in 2024.Democratic votes remain criticalA bill generally needs 60 votes in the Senate to overcome a filibuster and advance through a cloture vote.With Republicans currently holding 53 seats and Democrats holding 47, the bill would need support from at least seven Democratic senators, assuming no Republicans vote against it.Rising tensions between the Trump administration and Democrats, combined with the lack of visible progress on the ethics provision, could make securing those seven votes increasingly difficult.Democratic Senators Chris Van Hollen and Chris Murphy are expected to publicly outline their objections at a press conference scheduled for today. Several other Democratic senators, whose names have not yet been disclosed, are also expected to attend.The bill is currently pending before the Senate and awaiting a floor vote. If it passes, the House would still need to approve the final version before the legislation could be sent to the White House.
Japan Officially Opens the Door to Crypto ETFs
Japan is taking concrete steps toward legalizing exchange-traded funds based on cryptocurrencies. Speaking at the “Open QUICK 2026” seminar organized by financial information service QUICK, Finance Minister Satsuki Katayama confirmed that the government is working in this direction. The strong interest shown in similar products overseas appears to have prompted Tokyo to take action as well.This is more than a vague statement of intent; a concrete legal change is already underway. Japan’s House of Representatives recently approved a revision that transfers oversight of spot crypto assets from the Payment Services Act, or PSA, to the Financial Instruments and Exchange Act, or FIEA. Crypto assets will now be treated as fully fledged financial products, similar to stocks and bonds. This will place them within the same framework as traditional financial instruments in areas ranging from taxation to investor protection.Market expectations suggest that the country’s first crypto ETFs could begin trading as early as next year.SBI’s ETF pushJapanese financial giant SBI Holdings became the first company to submit a concrete proposal in this field in May. The application proposes a dual-asset ETF that would provide regulated exposure to both Bitcoin and XRP.SBI did not stop there. The company also proposed a hybrid investment fund combining gold and crypto assets. Under the planned structure, 51% of the fund would be allocated to gold ETFs, while the remaining 49% would be invested in crypto ETFs linked to assets such as Bitcoin.The idea is straightforward: bring cautious institutional investors and more risk-tolerant retail investors together within the same product.Target size and competitionSBI’s target is far from modest. The company aims to reach approximately 5 trillion yen, equivalent to around $32 billion, in assets under management within three years of the product’s launch. Setting such an ambitious target before regulatory approval has even been completed is noteworthy.There is also a reason for the urgency. Major Japanese financial groups such as Nomura and Rakuten Securities could also enter the market, and SBI does not want to lose the first-mover advantage.The company’s long-standing institutional partnership with Ripple also makes the inclusion of XRP in the ETF proposal more significant. It is not a coincidence, but a natural extension of a relationship that has been built over many years. SBI previously helped strengthen this partnership through concrete steps, including facilitating Ripple’s acquisition of one of Japan’s largest crypto exchanges.Japan’s move follows similar steps taken by Hong Kong and Singapore, once again showing how Asia’s major economies are closely following one another in the development of crypto regulations.The main question is whether SBI’s $32 billion target is realistic. For a product that has not yet been tested, it is an audacious figure. However, considering the company’s history with Ripple and Japanese investors’ interest in crypto assets, it would also be unfair to dismiss the target as entirely unrealistic.The regulatory details expected in the coming months will provide a clearer indication of how achievable SBI’s ambitious target really is.
Long-Awaited U.S. Crypto Bill Nears New Senate Draft
The Digital Asset Market Clarity Act, which will shape crypto regulation in the U.S. Senate, is close to losing its chance of passing in 2026. According to CoinDesk, the separate texts prepared by the Banking and Agriculture committees have been combined, and a new draft could arrive next week.Ethics provision remains the sticking pointMore than 70 pages of content have been added to the combined text, but the provision Democrats care about most is still unresolved: a restriction that would ban senior public officials, including the president, from having commercial ties with the crypto industry. Some senators have openly said they will not vote for the final text without an agreement on this issue. Proposals such as giving state attorneys general the authority to sue over ethics violations are on the table, but talks are not moving forward; they are almost standing still.Legislative staff say most of the newly added material was written in response to Democratic objections, but the necessary Democratic support is still not there. The bill needs 60 votes to pass. Even the two Democratic senators who voted in favor in the Banking Committee said they would not support the final version unless their demands, especially on the ethics provision, are met.White House criticizes appointment delaysOn Thursday, the White House sent a letter to Thune and Schumer, saying Democrats had not yet proposed names for the minority seats at the SEC and CFTC. Last month, Democratic senators had sent a letter in the opposite direction, accusing the White House of deliberately leaving vacancies at independent agencies unfilled. The exchange of accusations suggests that a near-term agreement on appointments remains unlikely.Wyden backs developersThe only positive news came from Oregon Senator Ron Wyden. In a letter to Senate leadership on Wednesday, Wyden said he supported the section of the bill that protects developers. This section, called the Blockchain Regulatory Certainty Act, prevents developers who do not custody customer assets from being regulated like money transmission companies. The DeFi sector sees this provision as one of the most important gains in the negotiations.The calendar is getting tighterThe Senate has three weeks left in July and one week in August. Procedural steps could consume much of that time, and the defense spending bill is also competing for space on the Senate agenda. Supporters believe the bill could reach the floor in the week of July 20 at the earliest, but issues such as the division of federal regulatory authority and SEC-CFTC appointments remain unresolved.Even if the Senate passes the text, the process will not be over. The House of Representatives must approve its own version, which is already stuck due to disagreements among Republicans. The final stop is Trump’s desk. Considering that Trump refused to sign the bipartisan housing bill only because his demands on voting rules were not met, it would not be surprising if the Clarity Act faced a similar fate.
244 Companies Receive Approval During MiCA Transition as Germany Takes the Lead
The transition period under the European Union’s MiCA framework, which regulates crypto asset markets, ends on July 1. The regulation, approved in December 2024, gave crypto asset service providers (CASPs) an 18-month compliance period. Once that period ends, platforms that have not obtained a MiCA license from any EU member state will no longer be able to serve customers across the bloc.According to data from the European Securities and Markets Authority (ESMA), 244 companies had received MiCA licenses as of June 26. Germany leads the list with 57 approvals granted through BaFin, accounting for roughly a quarter of all licenses. France’s AMF and the Netherlands’ AFM share second place with 26 approvals each, while Malta’s MFSA follows with 17 licenses.However, the numbers alone do not show the full picture. Before MiCA, more than 1,200 companies held national-level crypto registrations, but only around 17% of them managed to transition to the new standard. Poland alone was home to more than 1,400 legacy VASP registrations. This pointed to a large number of firms operating under looser national frameworks that may struggle to meet stricter EU-wide requirements.Binance’s Greece Plan Fell ApartThe final week of the transition period was especially difficult for Binance, the world’s largest crypto exchange by trading volume. According to a Reuters report published on June 16, Greek regulators were preparing to reject Binance’s MiCA application. Greece’s Hellenic Capital Market Commission (HCMC) did not confirm the claim, while a Binance spokesperson said the company had not received any formal rejection notice from the regulator.Binance had set up a holding company in Greece last December and submitted its application in January. In February, Binance co-CEO Richard Teng told Reuters that the company had chosen Greece as a suitable base for its European expansion after evaluating factors such as society, talent pool and security.On June 24, Binance announced that it had withdrawn its MiCA application in Greece and would seek a license in another member state. The company said it had worked “in good faith” with the HCMC for months but had not received a formal decision on the process. In a Reuters report published the same day, it was also stated that Binance had held talks with regulators in Ireland and Latvia, but faced resistance due to the company’s past anti-money laundering penalties and complex international structure.Gillian Lynch, Binance’s head of EU and UK operations, confirmed that the company had contacted four or five regulators, but said Greece was the only country where Binance had filed a formal application. Lynch said she did not understand why Greece might want to reject the application. She also stressed that Binance was not leaving Europe, but could simply look for a different path toward authorization.According to a Financial Times report published over the weekend, Binance is now pinning its MiCA hopes on France. The same report said Binance users in France, Italy, Poland and Spain had received emails explaining how they could withdraw their assets. Binance founder Changpeng Zhao also said in a June 26 post that he was saddened by the EU cutting its users off from the world’s highest liquidity.Rivals Compete for Customer TransfersThe uncertainty around Binance has also created an opportunity for rival exchanges. OKX, which received MiCA approval through Malta in January 2025, became one of the most vocal competitors. OKX founder Star Xu accused Binance of deliberately ignoring MiCA requirements even after the transition period. OKX Europe CEO Erald Ghoos also offered an 8% incentive for new deposits coming from Binance and non-compliant exchange Bybit. Coinbase CEO Brian Armstrong made a similar move, offering a 5% incentive to Coinbase One subscribers in certain countries.BitGo, a digital asset infrastructure provider that received MiCA approval from Germany’s BaFin in May 2025, is also trying to benefit from the gap. The company’s CEO, Mike Belshe, invited firms still waiting for approval to use BitGo Europe’s regulated custody and trading infrastructure.The market had already been weak for some time, and the negative news flow around Binance led to roughly $967 million in outflows over the past week. This figure still marks some recovery compared with the nearly $1.5 billion in outflows recorded on June 24, the day Binance withdrew its Greek application. During the same period, OKX saw inflows close to the amount Binance lost.
5 Key Crypto Developments of the Week: MiCA, U.S. Data and the Altcoin Calendar
As July begins, the crypto market is focused on five separate themes: Europe’s MiCA regulation, Robinhood’s new product launch, macro data from the U.S. and Europe, DeFi governance votes and the token unlock calendar. The most critical development is taking place in Europe. The transition period for the European Union’s Markets in Crypto-Assets regulation, known as MiCA, ends on July 1.MiCA becomes a concern for investors in EuropeBinance has withdrawn its MiCA license application in Greece and is now seeking approval from another EU country. This move has temporarily left the world’s largest exchange without a license in the EU. In a statement on the matter, Binance informed its users that it would no longer be able to accept new registrations and that some services would be restricted.Coinbase and OKX, meanwhile, moved quickly. Coinbase CEO Brian Armstrong announced a 5 percent transfer bonus valid until July 13 for users in Germany, France, Italy, Belgium, Poland, Sweden and the United Kingdom. OKX also launched one of the largest welcome campaigns in the company’s history, offering eligible users in the European Economic Area investment matching of up to 8 percent.In an email sent to users, Binance said their assets were safe and would remain accessible at all times. The company says its goals in Europe have not changed and that it is confident it will obtain a MiCA license in the coming months. However, the number of users lost during this period also raises the question of how many of them will return once the license is secured.Robinhood announcementMiCA is not the only item on the agenda. Robinhood will announce new products at its “The World is Flat” event on July 1, where CEO Vlad Tenev is expected to appear alongside Johann Kerbrat, the company’s general manager of crypto. On July 2, tokenization firm Securitize will also begin trading on the NYSE following its SPAC merger.Macroeconomic developmentsThe macro calendar will also be busy this week. On June 30, the U.S. House Price Index and JOLTs job openings data will be released. Market expectations for JOLTs stand at 7.28 million, compared with the previous reading of 7.618 million.On July 1, the eurozone’s preliminary inflation data for June will be published, with expectations at 3 percent, down from the previous 3.2 percent. On the same day, markets will follow U.S. ADP employment data, the ISM manufacturing PMI and Fed Chair Warsh’s speech at the European Central Bank forum.The most important data of the week will arrive on July 2, when nonfarm payrolls, the unemployment rate and weekly jobless claims will all be released on the same day. Markets expect nonfarm payrolls to come in at 114,000 and the unemployment rate at 4.3 percent. The previous nonfarm payrolls figure was 172,000, so the expected decline is quite sharp.What is happening in the altcoin market?The DeFi agenda is also far from quiet. Aave DAO has opened voting on a proposal to upgrade the Pendle PT risk oracle infrastructure to an automated system; the vote closes on June 30. The Arbitrum community is discussing a proposal to halt new investment activities by Arbitrum Gaming Ventures and limit the initiative to its existing portfolio, with excess capital planned to be returned to the treasury.Aavegotchi has also put forward a proposal to transfer the protocol’s intellectual property from Pixelcraft Studios to the AavegotchiDAO Foundation. The Redbelly Network community is evaluating a proposal to suspend the activities of its DAO until the ecosystem becomes more mature.On the token unlock calendar, EigenCloud will release 2.91 percent of its circulating supply into the market, worth approximately $8.44 million. MemeCore will unlock 0.56 percent of its supply, valued at $36.25 million. There are no scheduled token launches for this week.On the conference calendar, the Global Blockchain Show 2026 will take place in Riyadh on June 29-30, while Stablecoins Unblocked will be held in London on July 1.
Is Binance Really Pulling Out of Europe? Latest Developments
The debate over Binance’s future in Europe has grown in recent days. The reason is that the world’s largest cryptocurrency exchange has informed customers that it is restricting some of its services in the European Union. The exchange has failed to secure a Markets in Crypto-Assets (MiCA) license, which it was expected to have by July 1.In an email sent to users last week, the company said it would no longer be able to accept new registrations and would restrict some services. According to CoinDesk, a Binance spokesperson said user assets remain safe and accessible at all times.Where did the process begin?: Withdrawal from Greece, shift toward FranceLast week, Binance announced that it had withdrawn its application for an EU-wide license through Greek authorities. The company said it would instead seek authorization in another EU member state.According to the Financial Times, Binance’s application in Greece was rejected, after which the exchange said it planned to turn to France. However, according to people familiar with the matter cited in the report, any potential approval is likely to come well after the July 1 deadline. In other words, as things stand, Binance is set to remain without a license in the EU for a period of time.In a statement to CNBC, Binance said it would “take the necessary steps to meet the applicable requirements before July 1.” While the company acknowledged that some users could be affected by the process, it said it would remain in contact with them to provide clarity on the next steps and expressed confidence that it would obtain the license in the coming months.MiCA is the EU’s crypto asset regulation. Under the rules, crypto companies must obtain a MiCA license from at least one member state in order to provide services across all 27 EU countries. Companies that fail to secure a license by July 1 are expected to wind down their activities in the EU.This transition period marks the final phase of MiCA’s gradual implementation. The EU designed the regulation to create a framework in which crypto markets operate under a single set of rules. So far, several major exchanges have managed to obtain licenses from different member states. Binance, however, appears to have hit an obstacle in this process.What happened to users in France, Italy, Poland and Spain?According to the FT report, Binance sent emails last week to customers in France, Italy, Poland and Spain, where it holds local licenses, explaining how they could withdraw their funds from the exchange.Competitors did not stay idleBinance’s step back has given rival exchanges with EU licenses an opportunity to promote their own services. Bitpanda founder Eric Demuth said in a post on X that they prioritize trust over speed. He added that while Europe’s regulatory approach may be open to debate, the region places importance on consumer protection, and that his company was built with this in mind from the beginning. He also invited those who have not yet tried Bitpanda to do so. OKX founder Star Xu made a similar post on X, highlighting his company’s trusted crypto and fintech services. Investigations in Binance’s pastBinance has faced numerous investigations and criminal complaints in recent years. The exchange has been banned in the United Kingdom since 2021.In 2023, Binance pleaded guilty to charges related to money laundering and violations of international financial sanctions, and paid more than $4.3 billion in penalties to U.S. authorities.Last year, French authorities launched a judicial investigation into Binance over allegations that the company may have aided money laundering. Binance denied the allegations.This history also helps explain why competitors in the EU were quick to seize this opportunity. Binance’s delay in the MiCA process is not separate from years of regulatory issues; rather, it coincides with the exchange’s broader effort to rebuild its reputation in Europe.Binance was founded in 2017 by Changpeng Zhao. Zhao was sentenced to prison in 2024 over anti-money laundering violations and was pardoned in 2025 by U.S. President Donald Trump.
Japan Gives Green Light to Ripple’s RLUSD
Ripple has launched its dollar-backed stablecoin RLUSD in Japan. Following approval from Japan’s Financial Services Agency, the company made the token available to institutional and retail users through its partnership with SBI Holdings and its crypto arm, SBI VC Trade. The launch makes RLUSD the second foreign dollar-denominated stablecoin to receive approval in the country; before it, only USDC was on that list. Jack McDonald, senior vice president of Ripple’s stablecoins unit, said the collaboration with SBI Group would serve as a bridge across payments, tokenization and collateral management, connecting Japanese companies and individuals to global liquidity more efficiently.The JFSA’s approval is more than a routine permission. The agency classified RLUSD as a new type of electronic payment instrument under the Payment Services Act and granted the token “Type 4” electronic payment instrument status, a designation that no other crypto asset in the country currently holds. This category, created by the JFSA specifically for regulated stablecoins, gives RLUSD a clear legal position within Japanese payment law. The token is no longer operating in a zone of regulatory tolerance; it now functions within a legally defined framework.Japan Opened the Door, but Kept It NarrowIn the first phase in Japan, RLUSD transactions have been capped at 1 million yen, or roughly $6,200. This limit is designed to keep early-stage volume low and make monitoring easier. The token is running on Ethereum, not Ripple’s own XRP Ledger. In other words, the first Japanese version of RLUSD has gone live on infrastructure that the company does not directly control.The development in Japan came shortly after Ripple received preliminary approval in Luxembourg under the MiCA framework. Once the CASP license receives final approval, it will grant passporting rights across 30 countries in the European Economic Area. Taken together, the two developments mean Ripple has secured a legal foundation for RLUSD in Japan and much of Europe within a single week.The Approval Signal the Industry Has Waited for Over the Past DecadeThe stablecoin sector spent much of the past decade growing by moving around regulators. Issuers managed reserves from offshore locations, structured themselves in jurisdictions with lighter oversight and often faced enforcement only after the damage had already been done. RLUSD has tried the opposite route. It has secured licensing from two of the industry’s most important regulatory regimes; Japan and the European Union sit at the top of that list.This is where the real significance begins to take shape. A dollar stablecoin approved by both the JFSA and MiCA is not a temporary workaround built to avoid supervision. It becomes a product that banks and regulated exchanges can hold without taking on unnecessary legal risk. In Japan, SBI’s role as distributor places RLUSD not in front of a narrow crypto-native audience, but in the hands of an established financial player. The 1 million yen cap and Ethereum-based infrastructure show how cautiously Japan is taking this step; still, the direction is now clear. The industry has argued for years that it can operate within the rules. Two strict approvals in one week create a data point that is much harder to dismiss than another offshore launch.What remains is the question of usage. Convincing regulators was, on paper, the hardest part. Whether RLUSD can generate real volume in both regions is still untested.
U.S. Senate Approves Bill Containing CBDC Ban
The U.S. Senate approved the 21st Century ROAD to Housing Act, a sweeping housing bill, on Monday by a vote of 85-5. The bill aims to increase housing supply across the country and limit the dominance of institutional investors in the market. However, the part that drew the most attention from the crypto community was another provision embedded in the legislation: a ban on central bank digital currencies, or CBDCs. According to voting records on the Senate’s official website, bill H.R. 6644 passed with 85 votes in favor and only 5 against. This shows how broad the support for the legislation was. Given that housing costs have remained near the top of the political agenda in the U.S. for years, that is not particularly surprising.Background of the billLast week, key senators and representatives jointly released an updated version of the bill, signaling that the two chambers had reached an agreed text. House Financial Services Committee Chair French Hill said after Monday’s vote that housing supply lies at the heart of the problem and that the bill delivers real progress on that front.The bill is now waiting for a vote in the House of Representatives. If it passes the House, it will be sent to the president for approval. Politico reported last week that Republican House leadership planned to bring the bill to an expedited vote on June 23, when the House returned from recess.Details of the CBDC banThe 21st Century ROAD to Housing Act includes a provision that would ban the Federal Reserve from issuing a CBDC, or any digital asset “substantially similar” to a CBDC, until December 31, 2030. Adding an anti-CBDC provision to a housing bill is not a typical move, but it highlights a common tactic in Washington: attaching a controversial or standalone policy to a larger piece of legislation that is highly likely to pass. According to earlier reporting by journalist Eleanor Terrett, Republican representatives were the ones pushing for the provision to be included in the bill.The Trump administration has taken a clear stance on CBDCs from the beginning. Treasury Secretary Scott Bessent reiterated last month that CBDCs were definitely “not on the table,” emphasizing that the administration’s main priority was finalizing the Clarity Act, which focuses on digital assets.What does it mean for the crypto market?The fact that the ban excludes stablecoins is a critical detail for the industry. The text of the provision defines “open, permissionless and private” dollar-denominated assets as exceptions to the ban. This means that instead of a government-backed digital dollar, the path would remain open for stablecoins issued by the private sector. The ban is set to expire in 2030, and after that point, the Fed would still need congressional approval to move forward with a CBDC.If the bill becomes law, the U.S. will join the small group of countries that legally restrict their central bank from issuing a digital currency. This would place the U.S. in a distinct position in the global CBDC debate, separating it from other major economies at a time when many countries around the world are still researching, piloting or developing CBDC projects.
Fed Proposes Identity Verification Rule for Stablecoins
The U.S. Federal Reserve published a 130-page proposed rule on Thursday that would require stablecoin issuers to establish programs for identifying their customers. The regulation is part of the implementation process for the GENIUS Act, or the Guiding and Establishing National Innovation for U.S. Stablecoins Act, which became law last year.The proposed rule aims to extend the Bank Secrecy Act standards that currently apply to financial institutions to the stablecoin industry. The Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and National Credit Union Administration (NCUA) are also involved in the regulatory process.Five Fed members voted to approve the proposal. The central bank’s new chair, Kevin Warsh, abstained. Fed Governor Michael Barr supported publishing the proposal, though he also raised concerns over whether the GENIUS Act sufficiently addresses money laundering risks in secondary-market transactions.Barr said some crypto asset service providers are subject to anti-money laundering and counterterrorist financing rules in their home jurisdictions. However, he stressed that malicious actors can still evade these restrictions relatively easily and without detection when conducting digital asset transactions.GENIUS Act’s One-Year Implementation TimelinePresident Trump signed the GENIUS Act into law on July 18, 2025, establishing the United States’ first comprehensive federal regulatory framework for stablecoins. The legislation introduced the designation of “permitted payment stablecoin issuer,” or PPSI, and established requirements covering reserve assets, capital adequacy, and regulatory compliance.Most of the implementing regulations must be completed by July 18, 2026. The law itself will take effect 120 days after that date or no later than January 18, 2027.The tight timeline has pushed federal regulators to publish a series of proposed rules throughout the year. In February 2026, the OCC released a proposed framework for issuers under its jurisdiction. The FDIC published its first rule on application procedures in December 2025, followed by a second proposal concerning reserve assets and deposit insurance coverage in April 2026.Also in April, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC) issued a joint proposal that would classify stablecoin issuers as financial institutions under the Bank Secrecy Act and subject them to anti-money laundering obligations.With Thursday’s proposal, the Fed became the last of the four primary federal stablecoin regulators—the Fed, OCC, FDIC, and NCUA—to publish its draft rules. Some banking industry groups had previously asked the Treasury Department to extend comment periods until the OCC finalized its own rule. They argued that three separate GENIUS Act regulations directly depend on the OCC’s framework.Industry Focus Turns to the July DeadlineThe effort to coordinate these regulations signals a process that the crypto and banking industries will follow closely in the coming weeks. Although each proposed rule is undergoing a separate public comment process, the individual parts of the final framework are closely connected. A change to one agency’s reserve or custodial requirements could also affect regulations being developed by other agencies.The public comment period for the Fed’s proposal is only beginning. As with the proposals issued by other regulators, industry representatives are expected to submit objections and recommendations in the coming period.For stablecoin issuers and the banks that work with them, the main issue is how these fragmented rules will form a unified framework by July 18, 2026. Time is running short, and the regulators’ final adjustments will largely determine the rules under which the market operates as it enters 2027.
Binance’s MiCA License in Europe Could Be at Risk
According to Reuters, Binance’s MiCA license application filed through Greece is reportedly set to be rejected. If the report is accurate, the world’s largest cryptocurrency exchange could fail one of its most critical regulatory tests in Europe just before the EU’s July 1 deadline.MiCA, or Markets in Crypto-Assets, is the European Union’s comprehensive regulatory framework for crypto assets. A license obtained from any EU member state can theoretically be used across the entire bloc, making the choice of application country a strategic decision for companies.Binance chose Greece and submitted its application to the Hellenic Capital Market Commission (HCMC). The transitional period ends on July 1; after that date, companies operating without the required license will be in breach of EU law.Greece May Reject the ApplicationAccording to Reuters, citing two sources familiar with the matter, the HCMC plans to reject Binance’s application. Such a decision would affect more than the Greek market, as it could directly disrupt the exchange’s operations across the EU.MiCA licenses operate under a passporting system. Once authorized in one member state, a company can provide services throughout the bloc. A rejection in Greece would therefore block Binance’s chosen route to securing access to the wider European market.Binance disputes this account. A company spokesperson said the exchange believes it meets MiCA’s requirements and has worked with regulators throughout the 18-month application process. The spokesperson added that Binance had received no indication that its application would be rejected.There are now two conflicting accounts: a report based on unnamed sources and an official company statement rejecting its claims. The truth will become clear once the regulator announces its final decision.In a warning published in April, the European Securities and Markets Authority (ESMA) said crypto companies serving EU customers without the necessary authorization after July 1 would be violating the law. ESMA advised such companies to prepare either to cease their operations or transfer their customers to licensed platforms.For Binance, a rejection would create more than reputational damage. It would also bring an immediate operational challenge: the exchange would need to secure an alternative license quickly or redirect its European customers elsewhere.The report carries additional weight when viewed alongside Binance’s regulatory history. The exchange has been working to repair its relationship with regulators worldwide following its $4.3 billion settlement with US authorities in 2023 over anti-money laundering violations. Former CEO Changpeng Zhao was also sentenced to four months in prison before later receiving a pardon from President Donald Trump.Current CEO Richard Teng has repeatedly placed licensing in major markets at the center of Binance’s growth strategy. In a tweet posted this morning, Teng reiterated the company’s commitment to Europe and said Binance remained determined to obtain a MiCA license. He described the EU’s regulatory framework as “clear, fair and harmonized.”Binance appeared to believe that the application process was progressing smoothly, at least based on its public statements. Reuters’ sources paint a different picture. The outcome should become clear within weeks, with the July 1 deadline rapidly approaching.If the application is rejected, Binance users in the EU could be directly affected. The company may be forced to shut down parts of its European operations or move customers to a licensed alternative. ESMA’s April warning had already outlined such a scenario, although carrying out a transition involving millions of users would be a far more significant challenge.The market is now waiting for both the HCMC’s official decision and Binance’s response.
