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The New York City Council has launched an investigation into the prediction-market advertising activities of Polymarket, Kalshi, Coinbase, and Gemini Titan. The platforms face allegations of using misleading and aggressive marketing practices aimed at young users.As part of the investigation, the companies have been asked to provide information about their advertisements in New York, social media campaigns, and agreements with content creators. The Council will also assess whether new regulations are needed to strengthen consumer protections.New York seeks information from four platformsNew York City Council Speaker Julie Menin announced on August 12 that official letters had been sent to Polymarket, Kalshi, Coinbase, and Gemini Titan. The investigation focuses on the companies’ marketing and advertising activities that reach New York residents.The Council will examine whether the platforms have used false, misleading, or abusive advertising. Possible efforts to target young people, minors, and users vulnerable to gambling addiction are among the main areas under review.Prediction markets allow users to trade on the outcomes of real-world events involving politics, sports, culture, weather, and other topics. As the sector expands, New York officials believe these products are blurring the line between financial investments and online gambling.Council Member Harvey Epstein pointed to estimates suggesting that total prediction-market trading volume could reach $300 billion in 2026. Officials want to determine whether existing consumer protection rules are sufficient as the industry’s advertising spending grows.Polymarket advertising at the center of the investigationThe most detailed allegations in the investigation concern Polymarket. The Council is examining claims that the platform used social media influencers to encourage young adults to trade event contracts.The allegations include failing to disclose that influencer content was paid advertising. Polymarket is also accused of showing fabricated trades on websites designed to resemble its platform and presenting positions that would have generated losses as profitable wagers.The Council will also investigate whether promotional content encouraged insider trading. These allegations have yet to be confirmed by a court or regulatory authority.According to Reuters, Polymarket said it was prepared to engage with the New York City Council regarding the investigation. The company was asked to respond within 14 business days to questions about its use of social media, influencers, and content creators.Regulatory dispute over prediction markets intensifiesThe New York investigation has renewed debate over which authorities should regulate prediction markets and which rules should apply. The platforms argue that their products are federally regulated event contracts rather than sports betting.Companies such as Polymarket and Kalshi operate under the jurisdiction of the US Commodity Futures Trading Commission. State officials, however, believe some contracts effectively function as gambling products and should comply with local betting regulations.The New York City Council has yet to impose penalties on the companies or announce a specific bill. The investigation could lead to new consumer protection rules, advertising restrictions, public awareness campaigns, or additional oversight measures.A planned public hearing could increase political pressure on the platforms’ business models. The inclusion of major crypto companies such as Coinbase and Gemini alongside Polymarket suggests that the investigation may affect a broader segment of the prediction-market industry.
The Bank of Russia has added Bitcoin, Ether and Tether’s USDT stablecoin to the list of crypto assets eligible for public trading on domestic exchanges. Russian investors will be able to buy and sell these assets through the country’s regulated market.Trading will not begin immediately. The decision appears in a draft regulation that remains open for public consultation, while exchanges and intermediaries still need to complete the technical preparations.Bitcoin, Ether and USDT met the requirementsAccording to the Bank of Russia’s August 11 announcement, the regulator selected eligible cryptocurrencies using three main criteria. It considered market capitalization, average daily trading volume and pricing history on foreign platforms.A crypto asset must have at least five years of pricing history on foreign exchanges to qualify. Russia’s new crypto law also requires an average market capitalization above 5 trillion rubles and an average daily trading volume exceeding 1 trillion rubles over the previous two years.Based on these criteria, Bitcoin, Ether and USDT became the three liquid assets available to non-qualified investors. Smaller altcoins were excluded from the initial list.The Bank of Russia may temporarily approve other cryptocurrencies for public trading for periods of up to six months. Qualified investors will be able to purchase any cryptocurrencies offered on exchange or over-the-counter markets without an investment cap.Retail investors face a 300,000-ruble limitThe new rules introduce an annual purchase limit of 300,000 rubles for non-qualified investors. The limit will apply separately to each broker, crypto exchange or asset manager.Investors must pass a knowledge test before making transactions. Intermediaries will also need to inform customers about crypto market volatility and the risk of losing their capital.The regulator aims to restrict retail access to highly volatile tokens with insufficient liquidity. Bitcoin, Ether and the dollar-backed USDT will therefore dominate the market during its initial phase.The draft regulation will remain open for public consultation until August 24. The Bank of Russia will review the submitted feedback before publishing the final rules.Crypto trading could begin in NovemberRussian President Vladimir Putin signed the country’s Digital Currencies and Digital Rights law on August 4. Most of the legislation will take effect on September 1, 2026.The law classifies cryptocurrencies as property and allows investors to defend their ownership rights in court. It also creates a legal framework for crypto trading, custody and authorized cross-border transactions.However, using cryptocurrencies to pay for goods and services within Russia will remain prohibited. The new framework permits crypto assets for investment purposes without recognizing them as legal tender.Bank of Russia First Deputy Governor Vladimir Chistyukhin said regulated crypto transactions could begin in November. The Moscow Exchange also aims to launch Bitcoin, Ether and USDT trading before the end of 2026.Licensing requirements will take effect on July 1, 2027. From that date, brokers, crypto exchanges and digital custody providers will need authorization from the Bank of Russia to operate.Meta Title: Russia Approves Bitcoin, Ether and USDT TradingMeta Description: The Bank of Russia has approved Bitcoin, Ether and USDT for trading on domestic exchanges under its new regulated crypto framework.Keywords: Russia, Bitcoin, Ether, USDT, Bank of Russia, cryptocurrency, Moscow Exchange
The U.S. Senate will not vote in August on the Digital Asset Market Clarity Act, which aims to establish a regulatory framework for the cryptocurrency market. Senate Majority Leader John Thune said lawmakers would take up the bill after returning to Washington on September 14. The crypto industry had expected senators to resolve the remaining disputes before leaving for the summer recess. However, disagreements among both Democrats and Republicans pushed the vote into September.According to the Senate’s official calendar, lawmakers will return to Washington on September 14. They will then have approximately three weeks to work on the Clarity Act and other pending matters.John Thune points to SeptemberJohn Thune confirmed through a spokesperson that the Senate would not hold a Clarity Act vote in August. He said the bill would become one of the chamber’s first priorities after lawmakers return.Thune said Democrats opposed holding the vote in August. He also noted that he had worked with the bill’s sponsors and highlighted Republican Senator Cynthia Lummis’ role in the process.Before the summer recess, the Senate will focus on a continuing resolution that would fund the federal government through the midterm elections. A Russia sanctions package and several federal nominations also remain among its top priorities.The lack of a time agreement limiting debate on the Clarity Act made it even more difficult to add the bill to the August schedule. Senators reached such agreements for other pending matters, but they failed to secure a similar compromise for the crypto legislation.Clarity Act needs 60 votesThe bill needs support from at least 60 senators to clear the procedural hurdle in the Senate. However, it remains unclear whether the legislation currently has even the 50 votes required for a simple majority.Several Republican senators have publicly opposed the bill. Meanwhile, Democrats want President Donald Trump to accept stricter ethics rules covering his activities in the cryptocurrency industry.The Senate Banking Committee approved the Clarity Act in May by a vote of 15 to 9. Democratic Senators Ruben Gallego and Angela Alsobrooks supported advancing the bill out of committee. However, that bipartisan support does not guarantee the 60 votes required on the Senate floor.Lawmakers have reached agreements on most of the bill’s technical provisions. Still, the remaining disagreements increasingly focus on political issues.Trump’s crypto income becomes central to ethics debateThe biggest dispute concerns an ethics provision governing the financial interests of President Trump and other senior government officials in the cryptocurrency industry. Trump disclosed that he earned more than $1 billion from his various crypto ventures in 2025.Trump reportedly accepted an ethics provision brokered by Cynthia Lummis. However, Democratic senators and Republican Senator Thom Tillis argued that the existing language did not go far enough.Tillis and Democratic Senator Ruben Gallego drafted an alternative ethics proposal and sent it to the White House at the end of July. The White House has yet to respond publicly.Provisions under the Senate Agriculture Committee’s jurisdiction, law enforcement concerns, and yields and rewards offered to stablecoin holders also remain unresolved.First vote could take place on September 15 or 16The next critical step depends on when John Thune files for cloture on the bill. Cloture is a Senate procedure that limits debate and allows legislation to move toward a vote.If Thune files for cloture before the Senate leaves for recess, lawmakers could hold the first procedural vote on Tuesday, September 15. If he waits until senators return, the first vote could take place no earlier than Wednesday, September 16.Industry representatives remain hopeful that the bill can advance in September despite the delay. Digital Chamber CEO Cody Carbone said the parties would spend the coming weeks working to find the common ground required for a successful vote.Crypto Council for Innovation CEO Ji Hun Kim described the delay as disappointing. According to Kim, the absence of a comprehensive market structure law continues to push U.S. users and developers offshore.If enacted, the Clarity Act could establish clearer rules for determining whether crypto assets qualify as securities or commodities. The bill also aims to clarify the division of regulatory authority between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.
Türkiye’s Capital Markets Board (SPK) has initiated proceedings to block access to 12 websites that it determined were providing unauthorized crypto asset services to users in the country. The list includes international crypto exchanges such as Toobit and Bit2Me, alongside lesser-known investment platforms.The SPK announced the decision in its weekly bulletin dated August 5, 2026. The regulator will initiate the necessary legal proceedings under Article 99/A of the Capital Markets Law to restrict access to the platforms.Toobit and Bit2Me are also on the listThe websites named by the SPK include toobit.com, rainiks.pro, webtrader.ifc-f1nance.online, bit2me.com, app.bit2me.com and coinup.io. The regulator issued the same decision for neroxinvest.com, alveon-ltd.com, limartu-ledthra.org, goartex.com, parabu.io and coinbalina.com. Bit2Me’s main website and app address were counted separately, bringing the total number of listed web addresses to 12.Some of the domains appear to belong to investment websites without a widely known corporate identity or a significant user base in Türkiye. However, Toobit and Bit2Me are among the international crypto platforms operating across multiple countries.The decision does not constitute a fraud findingThe SPK’s decision does not mean that every website on the list has committed fraud. The regulator did not describe the platforms as scams or accuse them of fraudulent activity in its bulletin.The stated reason for the action is that the platforms allegedly provided crypto asset services to Türkiye-based users without authorization from the SPK. Therefore, lesser-known websites that may appear suspicious can be listed alongside established international exchanges under the same regulatory grounds.Under Türkiye’s regulations, a foreign platform may be considered to target users in the country if it creates a Turkish-language website, promotes its services directly in Türkiye or conducts marketing activities through Türkiye-based individuals or organizations.The decision comes as Türkiye tightens its oversight of unauthorized foreign platforms operating in its crypto market. Crypto asset service providers came under the SPK’s supervision in 2024, while secondary regulations introduced in 2025 established detailed requirements covering capital, custody, asset listings and the protection of customer funds.The latest bulletin indicates that the regulator has begun applying this framework not only to domestic companies but also to foreign platforms targeting users in Türkiye, gradually expanding the scope of its enforcement.Users should monitor the process closelyThe publication of the websites in the bulletin does not mean that access was immediately blocked. At this stage, the SPK has decided to initiate the legal proceedings required to enforce the restrictions.The accessibility of the platforms, withdrawals and the availability of their mobile applications will now become key issues for account holders. Users may need to review their accounts, open positions and custody arrangements before any potential access restrictions take effect.
Circle Internet Group (CRCL), the issuer of the dollar-backed stablecoin USDC, announced that it has received a limited-purpose trust charter from the New York State Department of Financial Services (NYDFS). The new entity will operate under the legal name Circle Internet Trust Company LLC and will be known as Circle New York Trust.In a statement released Friday, the company said the move strengthens its regulatory position in New York, which it considers a key financial center. The charter follows Circle’s approval from the Office of the Comptroller of the Currency (OCC) earlier this month to establish a national trust bank.Two approvals at different regulatory levelsCircle’s two recent approvals serve different purposes. On July 10, the OCC authorized the creation of First National Digital Currency Bank N.A., which will operate under the Circle National Trust brand at the federal level.The institution will be able to provide fiduciary custody services for digital assets. Although managing USDC reserves was a central part of Circle’s original application, that function was deferred to a later stage.The New York charter adds a separate regulatory layer at the state level. Circle had already stated in earlier federal filings that USDC issuance would take place through a New York-based limited-purpose trust company rather than the national trust bank.Circle became the first company to receive a BitLicense from the NYDFS in 2015. The new charter extends a regulatory relationship that now spans more than a decade.Allaire: “Something we have pursued for a long time”Circle co-founder, chairman and CEO Jeremy Allaire said obtaining the New York trust charter had been a long-standing priority for the company. According to Allaire, the regulatory clarity provided by the charter played a decisive role in that goal.The CEO also described the NYDFS as an international reference point for digital asset regulation. He said the framework places USDC in a strong position as digital dollars move closer to the center of the global financial system.Circle is not the first crypto company to receive a similar limited-purpose trust charter from the NYDFS. Coinbase, MoonPay, BitGo and Paxos have already secured comparable approvals, making Circle the latest major industry name to join the list.Market reaction and USDC’s positionCircle shares traded at $64.24 on Friday morning, remaining close to their previous closing level. USDC’s market capitalization has surpassed $71.8 billion, making it the world’s second-largest stablecoin behind Tether’s USDT.Alongside USDC, Circle operates the Circle Payments Network and the Arc blockchain. The company’s successive federal and state-level approvals represent concrete steps in its plan to expand custody and fiduciary services for institutional clients.
Binance.US, the American affiliate of Binance, will begin the formal application process for its own prediction market platform next month. The company aims to secure a designated contract market (DCM) license from the Commodity Futures Trading Commission (CFTC).What does the license allow?Binance.US CEO Stephen Gregory announced at the Rare Evo conference in Las Vegas that the company plans to submit its DCM application in August. A company spokesperson later confirmed the plan to The Block, showing that the move is official rather than market speculation.DCM status applies to exchanges that can legally list futures and derivative contracts in the United States. Platforms holding this license operate under federal oversight and can offer futures, options and event-based contracts to retail investors.In practice, this allows users to trade “yes or no” contracts tied to subjects ranging from election results to central bank decisions. If Binance.US receives approval, it will compete directly with Kalshi and Polymarket US, which already operate under the same regulatory framework. The company would therefore enter a market with more than one established rival.Binance.US joins a crowded raceBinance.US is far from the only company seeking a position in this market. Gemini has already secured a CFTC license this year. Coinbase chose a different route, partnering with Kalshi instead of pursuing a license independently.Robinhood appears to be considering a similar strategy. According to a Wall Street Journal report published last week, the trading platform is in talks to bring Crypto.com’s prediction market contracts into its own application.Crypto exchanges and traditional financial platforms are moving one after another to secure a share of the emerging market. Binance.US’s entry would add one of the industry’s largest names to an increasingly competitive race.The legal dispute remains unresolvedThe prediction market sector continues to expand, but the legal framework surrounding it has yet to develop at the same pace. Regulators in more than a dozen U.S. states have challenged platforms offering sports-related contracts.The CFTC takes the opposite position. The federal regulator argues that it has exclusive jurisdiction over event contracts.State authorities view these products through the lens of gambling regulations. The CFTC, meanwhile, claims that federal law overrides attempts by individual states to intervene. Prediction market platforms now find themselves caught between two authorities asserting competing powers over the same products.Neither side appears willing to back down. The dispute will likely require a court ruling or new legislation before the legal boundaries become clear.If Binance.US receives approval, four major platforms — Kalshi, Polymarket US, Gemini and Binance.US — could compete directly in the U.S. prediction market sector. That number may rise to five if a partnership between Robinhood and Crypto.com becomes official.The expanding field highlights how seriously crypto exchanges are moving into areas traditionally dominated by Wall Street. Prediction markets could become the next major battleground between cryptocurrency platforms and established financial companies.
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.
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.
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.
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.
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.
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 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.
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.
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.
