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Canada's Stablecoin Move: The Digital Dollar Era Begins
Canada included a new bill to regulate stablecoins in its 2025 federal budget. The government aims to create a comprehensive framework for the secure, transparent, and consumer-friendly market entry of digital assets pegged to fiat currencies like the dollar.Canada Takes Action on StablecoinsAccording to the budget document, the new law will require stablecoin issuers to meet specific reserve standards, establish repayment policies, and establish risk management frameworks. It will also introduce additional measures to protect users' personal information and ensure the integrity of the system for national security. The document states, "This regulation will ensure the safe use of fiat-based stablecoins for both consumers and businesses."With the enactment of the law, the Bank of Canada will be allocated a total budget of $10 million between 2026 and 2028 to manage this process. In subsequent years, regulatory costs will be covered by fees charged to stablecoin issuers. The government is also preparing amendments to the Retail Payment Activities Act to include payment service providers using stablecoins. This step aims to oversee digital payments and blockchain-based financial services under the same umbrella.The Canadian Ministry of Finance and other agencies have reportedly held intensive discussions with industry representatives in recent weeks, particularly on how stablecoins will be classified and how to prevent potential capital flight to US dollar-backed tokens. However, details regarding the government's final stance on this matter have not yet been released.The new regulation aims to encourage safe innovation in the digital asset ecosystem and ensure that the stablecoin market develops in line with the Canadian economy. This is expected to ensure that both individuals and businesses can safely access digital payment instruments.Canada's move is part of a global movement towards stablecoin regulations. The US passed the GENIUS Act in July, which introduces comprehensive rules for dollar-backed cryptocurrencies. The European Union's MiCA regulation is already in effect. Japan and South Korea are also working on similar legal frameworks. According to market data, the global stablecoin supply stood at approximately $291 billion as of November 4, largely comprised of US dollar-backed tokens. Standard Chartered estimates that up to $1 trillion in deposits in developing countries could shift to US-backed stablecoins by 2028.
Trump Picks Fed Chair: Crypto-Friendly Names in the Race
Major change is imminent at the US Federal Reserve (Fed). The Donald Trump administration has selected five candidates for the new Fed Chair, replacing current Chairman Jerome Powell. Treasury Secretary Scott Bessent announced that the shortlist will be presented to Trump immediately after Thanksgiving, with the final decision to be announced before the end of the year. This development suggests that the central bank's direction could change significantly in 2026.Who are among the Fed Chair candidates?The list includes Christopher Waller, Michelle Bowman, Kevin Warsh, Kevin Hassett, and Rick Rieder. These names include both current Fed members and experienced economists from the private sector. Given Trump's criticism of Powell for being "slow on interest rate cuts," the new chair is expected to lean toward a pro-growth and more aggressive monetary policy.Christopher Waller is one of the most notable names on the list. Appointed to the Fed Board by Trump in 2020, Waller has consistently advocated for swifter action on interest rate cuts. Waller, who describes Bitcoin as "electronic gold," believes stablecoins can increase competition in the financial system. He recently stated that crypto companies should be given direct access to the Fed's payment infrastructure. He believes digital assets are now an integral part of the financial system.Michelle Bowman, the Fed's deputy chair for oversight, is known for her cautious yet open-minded approach to crypto. Bowman argued that regulators should not be "overly cautious" and that it would be beneficial for Fed employees to experience digital assets in small amounts. She emphasized the importance of firsthand experience, saying, "I wouldn't want to take lessons from someone who's never skied." The crypto community has responded quite favorably to this approach.Former Fed governor and Bush-era advisor Kevin Warsh is a more cautious member of the list. Although Warsh invested in crypto startups like Bitwise years ago, he disagrees with the idea that Bitcoin can replace the dollar. In a 2018 article published in the Wall Street Journal, he stated, “Bitcoin’s volatility makes it less of a reliable means of payment.” Despite this, his interest in central bank digital currencies (CBDCs) could lead to conflicting views within the Trump administration.Trump’s former economic advisor, Kevin Hassett, is notable for both his loyalty and his crypto investments. Hassett, a Coinbase shareholder, is expected to pursue a crypto-friendly policy. He was also in the news recently for his comments during the government shutdown debate.The final name of the five, Rick Rieder, is a Wall Street heavyweight. Rieder, who served as head of global fixed-income securities at BlackRock, played an indirect role in the rise of Bitcoin ETFs. He has previously stated that he sees Bitcoin as a portfolio diversifier and a hedge against inflation. However, he remains distant from the idea that digital assets can “solve the world’s monetary problems.”Trump’s choice to replace Powell could also determine the direction of the crypto markets. According to experts, a dovish (low-interest) candidate like Waller or Hassett could boost Bitcoin and altcoin prices by increasing liquidity. Conversely, a candidate focused on preserving market balance, like Rieder, could create a more cautious atmosphere.
$1.7 Trillion Giant's Crypto ETF Application: Many Altcoins at Stake
T. RowePrice, a traditional investment firm with approximately $1.77 trillion in asset management, has filed paperwork with the SEC for its first cryptocurrency-focused exchange-traded fund (ETF).T. Rowe, which manages $1.7 trillion, has made a move for cryptoAccording to the filing, the firm has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) under the name "TROW Active Crypto ETF." This fund is notable for its actively managed structure; instead of passively tracking a specific index, the management team will be able to make selections based on market conditions. The filing includes the following: The fund will invest in eligible crypto assets; the number of these assets will normally be between 5 and 15, but this number can be increased or decreased as needed. Potential assets include Bitcoin, Ethereum, Solana, XRP, Cardano, Avalanche, Dogecoin, Shiba Inu, Litecoin, and Polkadot. Management has also stated that this fund aims to exceed the FTSECryptoUSListedIndex index annually.This is significant for the company. The move into crypto by an institution founded in 1937 and specialized in mutual funds for many years is considered a milestone. Analyst Nate Geraci described this move as a "surprise from outside the field," as traditional asset managers were still perceived as cautious on the crypto side.This development indicates a shift in the balance of power in the asset management world. Traditional investment giants are now seeking ways to become a part of the crypto market rather than shying away from it. As analyst Nate Geraci put it, "Waiting for crypto to disappear is not a strategy."However, the application's approval process faces a hurdle. Due to the US government shutdown, the Securities and Exchange Commission has limited resources, delaying the processing of new crypto ETF applications. In this case, the process is expected to reopen to allow T. Rowe Price's application to be processed quickly. To summarize, this application represents a significant opportunity for both the institution and its investors. It's a critical step for the institution in diversifying its asset management portfolio. For investors, as with most crypto ETFs, it offers the potential to access crypto through a regulated institution. However, there are some important points to consider: the volatility of crypto assets can be much higher than traditional assets, and active management strategies may not always be successful. Once the application is approved, details such as fee levels, portfolio structure, and risk management should be presented to investors.
UK Strikes HTX: FCA Files Lawsuit Against Crypto Exchange
The UK's financial regulator, the Financial Conduct Authority (FCA), has filed a lawsuit against crypto exchange HTX (formerly Huobi) in London's High Court. The agency alleges that the exchange engaged in illegal crypto promotions aimed at UK investors and violated financial promotion rules.FCA Strikes HTXThe FCA stated that the lawsuit is "part of its efforts to protect consumers and maintain the integrity of UK financial markets." The agency has previously issued warnings to UK consumers about HTX, stating that the platform operates without legal authorization.HTX is known to be linked to Tron founder Justin Sun. Sun is among the exchange's advisors and is also known as one of the largest holders of TRUMP, the official meme coin associated with US President Donald Trump. However, the FCA did not disclose whether Sun is named as a defendant in the case file. HTX did not respond to questions about the case.The FCA's lawsuit is the latest example of the UK's strict regulatory approach to the crypto market. In recent years, the country has been expanding its "financial promotion regime" to regulate the advertising and promotion of crypto platforms. The FCA has taken a particularly harsh stance against foreign-based exchanges providing unauthorized access to UK citizens.Last year, Binance similarly came under the FCA's radar, and its promotional activities were halted. Experts believe that the FCA's new case against HTX demonstrates the UK's continued policy of "fighting unlicensed crypto services."Financial regulators emphasize the high risk of crypto investments. In a public warning last year, the FCA emphasized that "the vast majority of crypto products are unregulated" and that investors' losses are not covered by the government.Meanwhile, the UK government aims to establish a regulated framework for cryptocurrency in the long term, rather than banning it entirely. Official exchange-traded products (ETPs) have been approved, allowing crypto assets like Bitcoin and Ethereum to be traded. The government also plans to appoint a "digital markets ambassador" to support the crypto market. The HTX case is seen as a key test of how regulations will be implemented during this transition period. If the FCA wins, it could set a precedent for other platforms operating unlicensed cryptocurrency promotions in the UK market. As for the market, no significant impact has been observed so far. With Bitcoin hovering around $108,000, investors are awaiting how the FCA's decision will impact HTX's UK operations.
Strategic Move from Russia: Foreign Trade Begins with Crypto
In Russia, cryptocurrencies are being legalized for use in foreign trade. The Russian Ministry of Finance and the Central Bank announced in a joint statement on October 21, 2025, that they had agreed on a regulation for the use of cryptocurrencies in international trade payments.Russia Takes Cryptocurrency StepFinance Minister Anton Siluanov stated that the regulation will legalize the cryptocurrency space, legalize activities, and strengthen control mechanisms. He said, "We believe this field should be legalized and legal regulations should be introduced for activities. This way, together with Rosfinmonitoring (the Russian Federal Financial Monitoring Service, the country's anti-money laundering and counter-terrorism financing agency) and control services, we will be able to maintain order in this area."The new regulation marks a significant shift in Russia's financial and foreign trade strategy. Cryptocurrencies will now be accepted as an alternative to traditional payment channels, and the regulatory framework aims to keep this market under control. According to Siluanov, the relevant infrastructure will be under state supervision, and certain criteria will be implemented for investors. However, in Russia, this move is seen not only as a financial regulation measure but also as part of a strategy shaped by international sanctions. Moscow, which has long been the target of various sanctions, is notably using cryptocurrencies as an "alternative payment tool." Research suggests that Russia is turning to crypto and other systematic payment models to reduce its reliance on traditional currencies like the dollar and euro in its foreign trade.Market and crypto impactsThis step has the potential to indirectly impact the trading volume of major crypto assets, particularly Bitcoin and Ethereum. The increased use of cryptocurrencies in international payments could alter liquidity channels. Meanwhile, increased regulatory oversight could both increase investor confidence and create new risks.Russia has been known to have a cautious approach to cryptocurrencies for years. However, it was recently reported that there were pilot projects involving crypto in foreign trade channels. Now, this practice will be supported by legal regulation.According to the draft law that has entered into force, for cryptocurrencies to be used in foreign trade:Operations must be conducted through a state-controlled system; Participating companies and investors must meet established criteria;Anti-money laundering (AML) and know-your-customer (KYC) mechanisms must be strengthened.Furthermore, Russia is not an environment where cryptocurrency activities are completely free; companies and transactions covered by the regulation will be subject to strict oversight. This presents a scenario where risks and opportunities must be evaluated together.This shift by Russia reflects its tendency to move away from traditional channels of the global financial system and toward alternative payment methods. As is well known, sanctions have restricted the country's access to financial systems it opposes. Under these circumstances, cryptocurrencies become an option that can provide flexibility in trade and payments.
Historic Step from Hong Kong: First Solana ETF Approved
The Hong Kong Securities and Futures Commission (SFC) has approved Asia's first spot ETF for Solana (SOL). This step marks the country's third crypto spot ETF, following the Bitcoin and Ethereum ETFs.Good news for Solana from Hong KongThe fund, managed by China Asset Management (Hong Kong), will begin trading on October 27. According to the Hong Kong Economic Times, the ETF will be listed on the OSL Exchange, with custody and clearing handled by OSL Digital Securities. Each trading unit will contain 100 shares, and the minimum investment will be approximately $100 (approximately HK$780).The new product is the first Solana fund to be approved, following the Bitcoin and Ethereum spot ETFs. ChinaAMC thus becomes the first manager to simultaneously launch a SOL-based fund in Asia and the US. The fund's management fee is set at 0.99 percent, while custody and administrative expenses are capped at 1 percent of total net asset value. The total annual expense ratio will be 1.99 percent. The ETF is not expected to distribute dividends to investors.Solana ranks sixth in the crypto market with a market capitalization of approximately $100.8 billion. SOL, trailing Bitcoin, Ethereum, Tether, Binance Coin, and Ripple, is ahead of USDC. According to the China AMC, SOL is used as the native token of a decentralized, open-source network; its value is not backed by any institution but is determined entirely by the balance of supply and demand.With this move, Hong Kong's city government provides greater access to the crypto asset market for individual investors. Investors can invest in the Solana ETF with small inflows. This is in line with Hong Kong's vision of a "regulated yet accessible" crypto market.Solana ETFs are also gaining momentum globally. The Solana Spot ETF, offered by 21Shares in the US, was approved by the Securities and Exchange Commission (SEC) earlier this month. The product offers direct access to Solana's spot price and supports staking features, potentially spurring institutional demand.Major fund managers such as VanEck, Bitwise, Grayscale, Franklin Templeton, Fidelity, and CoinShares have also received approval for similar Solana ETF applications. This strengthens Solana's position in the institutional investment ecosystem.While Solana has performed less favorably than Bitcoin and Ethereum since the beginning of the year, growing ETF interest and a succession of regulatory approvals have re-entered investor attention. Price momentum is expected to revive in the last quarter of 2025, driven by Solana's ETF approvals. At the time of writing, the SOL price is down slightly by 0.7 percent, around $184.
Fed Meets Tomorrow: Bitcoin and Stablecoins on the Agenda
The US Federal Reserve (Fed) will hold a "Payments Innovation Conference" on October 21st to discuss the future of new technologies in the payments field. The event will discuss Bitcoin, stablecoins, and blockchain-based payment systems. This development is considered a significant turning point in the US approach to the role of digital assets within the financial system.Fed Discusses CryptocurrenciesAccording to a statement released by the Fed on September 3rd, the conference will bring together regulators, financial institutions, and technology experts on October 21st. The main themes of the event will be the intersection of traditional and decentralized finance, stablecoin use cases, the impact of artificial intelligence on payments, and the tokenization of financial products. Fed official Christopher J. Waller, who will speak at the conference's opening, said, "Innovation in payments has always existed to meet the changing needs of consumers and businesses. Now is the time to examine the opportunities and challenges of these technologies together." This statement signals a shift in the US Federal Reserve's tone toward digital assets, which it has long distanced from. Until now, Bitcoin and stablecoins were largely viewed as speculative investment instruments or elements posing regulatory risks. However, the Fed's decision to address these assets in conjunction with the future of the financial system at an official event is being interpreted as a paradigmatic shift. Clarifying the regulatory framework for the use of stablecoins in payments could pave the way for new opportunities for both financial institutions and technology companies.The crypto community sees this step by the Fed as a hope that, in the long term, digital assets will gain a more institutional footing in the US financial system. The event's agenda is not limited to cryptocurrencies. Tokenization, AI-powered payment systems, and decentralized financial infrastructures will also be among the topics to be discussed. Experts believe these issues could pave the way for the Fed's future steps in the field of digital currencies and payments. The implications regarding the oversight of stablecoins and their role in interbank payments are particularly significant for the sector. Immediately following this meeting, the Federal Open Market Committee (FOMC) meeting, scheduled for October 28-29, will be closely watched by markets. Economists predict the Fed may consider cutting interest rates at this meeting. Chairman Jerome Powell stated last month that the bank has shifted to a "more neutral policy stance." However, there is still no consensus among members on the interest rate range encompassed by "neutral."This softening of the Fed's stance on cryptocurrencies could be a turning point in terms of both regulatory clarity and institutional participation. The official discussion of Bitcoin and stablecoins within payment systems is seen as a signal that a new chapter may be opening in US policies toward digital assets.
Wednesday's Crypto Summit in Washington: 10 High-Level Figures Heading to Senate
Washington will be the heart of the crypto world this week. Executives from Coinbase, Chainlink, Circle, Ripple, Uniswap, and many other giants will sit down with Senate Democrats. The agenda is clear: defusing the political tensions that have escalated over DeFi regulation and shaping the laws that will determine the future of the crypto market.A major cryptocurrency meeting will be held in the US: All eyes are on October 22nd.The tension between the crypto industry and politics in the US is entering a new phase. Executives from leading crypto companies will meet with Senate Democrats this week to discuss market structure legislation. It's also noteworthy that the meeting follows the leak of a controversial draft regulation for DeFi (decentralized finance).According to Fox Business correspondent Eleanor Terrett, the meeting will be chaired by Senator Kirsten Gillibrand on Wednesday, October 22nd. Because the meeting is being held on US time, it is likely to be extended to the evening of Turkey time or October 23rd. Gillibrand has long been a proponent of creating a clear and balanced framework for crypto regulations. In 2023, he co-authored the "Responsible Financial Innovation Act" with Republican Senator Cynthia Lummis and spearheaded the GENIUS Act, a bill designed for the stablecoin market.Who is attending the meeting?Among those expected to attend are Coinbase CEO Brian Armstrong, Chainlink CEO Sergey Nazarov, Galaxy Digital CEO Mike Novogratz, Kraken CEO David Ripley, Uniswap founder Hayden Adams, Circle Chief Strategy Officer Dante Disparte, Ripple Legal Director Stuart Alderoty, Jito CLO Rebecca Rettig, Solana Policy Institute President Kristin Smith, and Andreessen Horowitz (a16z) Legal Counsel Miles Jennings. The meeting follows the recently leaked proposal, "Preventing Illicit Financing and Regulatory Arbitrage Through Decentralized Finance Platforms," drafted by Democrats in the US Senate. The proposal defines anyone operating in or generating revenue from DeFi protocols as an “intermediary.” It also mandates that all DeFi interfaces and non-custodial wallets require user identity verification (KYC).Another criticism of the proposal is that it grants the Treasury Department the authority to ban any protocol based on “influenced individuals or entities.” Industry representatives likened this provision to a “direct government takeover of the industry.”Jake Chervinsky, legal director of the Blockchain Association, called this approach “unprecedented and unconstitutional.” Cardano founder Charles Hoskinson similarly criticized the Democratic Party for stifling the industry with an overly statist stance.For the crypto industry, this meeting is seen as a significant opportunity to re-establish communication between the legislature and the industry. However, experts believe it is unlikely that a concrete agreement will emerge from the meeting in the short term. The political climate in Washington remains highly polarized, and crypto legislation has become an ideological battleground between the two parties. However, it's hoped that this meeting, led by Gillibrand, could spark new dialogue, particularly regarding the future of the DeFi sector and how regulatory boundaries will be drawn. The industry will be closely watching this crucial meeting on Wednesday.
Japan Greenlights Crypto: Banks' Bitcoin and Altcoin Investments on the Table
The transformation of Japan's cryptocurrency market is accelerating. The country's Financial Services Agency (FSA) is considering new regulation that would allow banks to hold Bitcoin and other similar cryptocurrencies for investment purposes.Groundbreaking regulation in Japan: Banks will be able to invest in cryptocurrenciesAccording to the Japanese newspaper Yomiuri, the Japan Financial Services Agency (FSA) is developing a regulation that would allow banks to buy, sell, and hold Bitcoin and altcoins for investment purposes. The FSA's plan would ease conservative guidelines enacted in 2020 that prohibited banks from acquiring crypto assets. The regulator aims to allow banks to buy and sell cryptocurrencies just like stocks or government bonds with the new system. However, various measures, such as strict capital adequacy rules and risk limits, are also on the agenda to ensure this freedom does not jeopardize financial stability.Discussions within the Financial System Council will determine the direction of the regulation. These discussions are expected to set upper limits on the amount of cryptocurrencies banks can hold on their balance sheets. In this way, regulators aim to balance risk management with innovation.Cryptocurrencies are quite popular in JapanThe popularity of cryptocurrencies in the country is behind Japan's initiatives. The number of individual crypto accounts in the country has surpassed 12 million, a figure that has more than tripled in the last five years. With the FSA's new approach, crypto will be defined as a "legitimate" investment vehicle within the financial system.The FSA is also considering opening the door for banks to register as crypto asset service providers. This will allow traditional banks to hold the same license as exchanges and offer investors a more secure trading environment.Stablecoin initiativeMeanwhile, as reported last week, the stablecoin initiative of three major Japanese banks attracted attention. The three major banks (Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMFG), and Mizuho Financial Group) aim to establish a new blockchain-based infrastructure for corporate payments and cross-border transactions. In the first phase, a stablecoin pegged to the yen will be launched, with a dollar-pegged version expected to follow later. The project will operate on a system developed by fintech company Progmat Inc. and ensure interbank compatibility through a common technical standard.The primary use of these stablecoins will be payments between large companies. Mitsubishi Corporation is planned as the first user of the pilot application. Real-world trials are expected to begin before the end of the current fiscal year.Meanwhile, the FSA is taking steps to ensure that digital asset trading is a fair market. The agency is reportedly preparing to propose legal amendments that would explicitly prohibit transactions based on non-public information. Under these regulations, those who violate this prohibition will face fines proportional to the amount of illicit profits.
Binance at the Center of France's New Audits
France's financial supervisory authority, the ACPR (Autorité de Contrôle Prudentiel et de Résolution), has tightened its anti-money laundering (AML) controls on cryptocurrency service providers operating in the country. The focus of these inspections is Binance, one of the world's largest exchanges. This process could directly impact Binance's European MiCA license application.ACPR Targets Over 100 CompaniesAccording to Bloomberg, the ACPR is currently conducting a detailed inspection of more than 100 crypto service providers registered in France. This scope includes not only major exchanges but also smaller digital asset platforms, custodians, and crypto payment infrastructures. The inspections were launched in the last quarter of last year and are still ongoing. The authority is focusing particularly on the adequacy of anti-money laundering and terrorist financing controls, the transparency of internal audit processes, and the reliability of information technology systems. ACPR officials state that all companies operating in France must achieve full MiCA compliance by the end of June 2026. Companies that fail to comply by this time will risk losing their licenses, which are valid throughout Europe.A critical period for BinanceThe most striking aspect of the audits is the return of Binance to the spotlight. French authorities identified deficiencies in Binance's compliance processes during the initial audit conducted in 2024. The company was instructed to strengthen its AML procedures, expand its internal control staff, and update its technical infrastructure.The newly launched audits are reportedly testing whether these obligations are being met. If Binance fails to complete the necessary improvements in a timely manner, its license in France could be suspended or its MiCA application could be delayed.No official statement has been released from the company yet. However, it is known that Binance is undertaking a restructuring process in line with the MiCA framework across Europe. As part of this, some of its EU operations have reportedly been restructured and new offices have been established. The European Union's comprehensive regulation of crypto-asset markets, MiCA (Markets in Crypto-Assets), entered into force at the end of 2024. With MiCA, crypto companies can now operate in all member states with a license from a single EU country. However, this requires them to undergo rigorous oversight.Key requirements of MiCA include capital adequacy, risk management, protection of client funds, and transparent reporting. French institutions such as the ACPR and AMF have assumed national oversight roles under this new regulation.Meanwhile, France stands out not only for its oversight but also for its innovations in digital asset regulation. In recent weeks, the country approved Lightning Stock Exchange (Lise) as the first fully licensed "tokenized stock exchange" under the DLT Pilot Regime.Lise combines trading and clearing operations on a single blockchain. The platform is expected to hold its initial public offering in early 2026.
Critical Warning on Crypto Regulations: “There Are Inconsistencies”
The Financial Stability Board (FSB)'s review of nearly 40 countries revealed "significant gaps and inconsistencies" in crypto asset regulations. It states that these deficiencies could pose a threat to the resilient development of the digital asset ecosystem and the overall stability of the financial system.FSA Report on Crypto RegulationThe report notes that the geographical dispersion and inconsistency of regulations, in particular, allows crypto companies to gravitate towards countries offering the most flexible regulatory frameworks. This allows these companies to establish themselves in weaker regulatory environments and subsequently expand globally. The FSB noted that the infrastructure for cross-border supervisory cooperation remains "fragmented, inconsistent, and inadequate." A separate assessment was included in a report by the European Banking Authority (EBA). That report alleged that crypto companies are "forum shopping" (i.e., seeking out EU member states with less stringent regulations). It emphasized that some companies are attempting to enter the EU by choosing regions with lower market entry barriers and weaker anti-money laundering controls.According to the FSB's findings, regulatory gaps provide an advantage to crypto firms. Companies, particularly stablecoin companies, can seek out countries with the loosest regulatory structures and use them as a base. This strategy then becomes a springboard for expansion into other markets.The report also notes that even when regulatory instruments exist, they are rarely used for "supervisory purposes" or "financial stability monitoring." This makes it difficult for regulators to timely identify potential risks in crypto markets.The EBA's report supports this view. Within the EU, it is noted that despite new regulations (e.g., MiCA and AML/CFT legislation), some companies are attempting to evade these obligations. While the EBA text does not explicitly mention company names, it warns that "some are attempting to circumvent regulatory requirements."Links to traditional finance are deepeningThe FSB report notes that large banks are now integrating stablecoins into their payment and settlement systems, giving traditional financial institutions direct exposure to the crypto ecosystem. As this linkage grows, regulatory gaps could become even greater systemic risks. It states that activities such as leveraged trading and debt-based trading are inadequately regulated in many crypto markets. The report notes that this inadequate oversight has the “potential to lead to cascading crashes during periods of market stress.”Nikolaos Kostopoulos, a development consultant, also notes that the EU’s MiCA regulation is an important step toward harmonization. However, he emphasizes that inconsistencies in implementation still benefit crypto companies and the lack of close cooperation and criminal sanctions that are truly necessary.The FSB offers eight recommendations to address the identified shortcomings. These recommendations include closing regulatory gaps, strengthening data capabilities to monitor financial stability risks, and enhancing cross-border regulatory cooperation.Nevertheless, the report points out that many regulatory efforts remain incomplete. Regulatory frameworks for global stablecoins (GSCs), in particular, remain incomplete. Even within these frameworks, implementation inconsistencies persist, leading companies to exploit these gaps.
SEC Chairman's Statement on Cryptocurrency: 'Number One Priority'
SEC Chairman Paul Atkins, speaking at the DC Fintech Week event in Washington, DC, described the cryptocurrency and tokenization sectors as the agency's "top priority." Atkins emphasized the need to establish a clear, long-term regulatory framework that supports innovation in the crypto industry. "We want to establish a strong framework for innovation to thrive; we need to attract entrepreneurs who have fled America back here," he said. He added humorously, "You can now think of us as the Securities and Innovation Commission."SEC Chairman Issues Statement on CryptocurrenciesAtkins's statements were interpreted as a sign of a significant shift in the SEC's approach to crypto. Atkins, who took office in April, is moving away from the "regulation through litigation" approach of his predecessor, Gary Gensler. During Gensler's tenure, the SEC had argued that most crypto assets should be considered securities and filed harsh lawsuits against major companies like Binance, Coinbase, and Ripple. This approach was frequently criticized by the industry as a policy that "stifled innovation." Atkins, on the contrary, aims to introduce clear and predictable rules that encourage development in the crypto and blockchain space. In June, he discussed a new regulatory model he called the "innovation exemption." Atkins stated that this exemption would allow blockchain-based products and services to be brought to market more quickly and could be implemented by the end of the year.At DC Fintech Week, he further elaborated on this idea, discussing a system he calls a "super-app." He explained that this system could bring different regulatory agencies involved in crypto under a single digital umbrella. "You shouldn't have to register separately with agencies focused on the same goal," he said, outlining his intention to reduce bureaucratic burden. This vision aims to simplify regulatory processes and establish a more transparent and accessible financial structure on blockchain.Atkins also stated that distributed ledger technology (DLT) is the most exciting aspect of the crypto industry. In his view, this technology has the potential to transform the fundamental structure of the financial system.Meanwhile, the SEC is currently operating under limited operating conditions due to a government budget dispute. Congress's failure to reach a funding agreement has forced the SEC, like many other federal agencies, to operate with limited personnel. The agency operates with a small staff that can only respond to emergencies.Atkins's tenure as president also coincides with internal transparency debates. Allegations that some past messages were accidentally deleted have raised questions about information security and recordkeeping.Amidst these developments, Atkins emphasized a more lenient regulatory approach. He stated that companies will now be issued warnings rather than direct penalties for technical violations. This policy change represents a shift away from the "first lawsuit, then explanation" approach of the past.The SEC has also launched a new initiative called "Project Crypto." This project aims to establish clear rules for crypto companies, update token classifications, and streamline compliance processes. This framework aims to balance both investor protection and innovation.Atkins's approach could re-establish trust in crypto in the US. Clear rules and a fair regulatory structure are a welcome signal to entrepreneurs who have long complained of uncertainty. However, for this transformation to be permanent, both congressional support and structural reforms within the SEC are required.
Russia Grants Banks Limited Authority for Crypto Transactions
The Central Bank of Russia is preparing to allow banks in the country to conduct cryptocurrency transactions. However, this step does not imply comprehensive liberalization. The Central Bank plans to impose strict capital restrictions and high collateral requirements on institutions that will work with crypto assets.Cryptocurrency Development in RussiaSpeaking at the Finopolis fintech forum, First Deputy Governor of the Central Bank of Russia Vladimir Chistyukhin said that the institution maintains a cautious stance towards decentralized assets like Bitcoin, but that it is unrealistic for banks to completely stay away from this market. Chistyukhin said, “We are conservative and are discussing the appropriateness of including crypto on banks' balance sheets. However, after discussions with the sector, we concluded that completely excluding banks from this area would be unreasonable.”However, the Central Bank will impose strict restrictions to prevent banks from becoming overly dependent on crypto assets. It is stated that banks can allocate a maximum of 1 percent of their total capital to cryptocurrencies and will also be subject to high reserve requirements. This step aims to prevent digital assets from becoming the primary activity in the banking sector. Among Moscow's financial authorities, the Central Bank has long held the most aloof stance toward the free circulation of cryptocurrencies. However, pressure from Western sanctions, the instability of the ruble, and restrictions in international payment systems are forcing Russia to develop alternative financial channels.Accordingly, an "experimental legal regime," which entered into force in early 2025, allowed companies to make payments with crypto assets in international trade. This system only covers a limited segment defined as "high-quality investors." To be included in this group, individuals must have assets of at least 100 million rubles (approximately $1.2 million) in banks and securities and an annual income of at least 50 million rubles ($600,000).The Central Bank of Russia is working with the Ministry of Finance to finalize these criteria. A new draft regulation for banks is also being prepared. This regulation will set capital limits for crypto transactions, as well as standards for risk management and reserve holdings.Chistyukhin stated that they want a comprehensive law covering crypto investments to be enacted by 2026. This law will establish a licensing system for companies offering crypto services. Following the law's enactment, the first licensed crypto brokerage firms are expected to begin operations by the end of the same year.Central Bank Governor Elvira Nabiullina also supported her colleague's call, stating that the relevant draft law will soon be submitted to the State Duma. "We hope that a law regulating all aspects of crypto investments will be adopted in 2026," Nabiullina said.
DeFi Bill Crisis in US Senate: Document Leaks Rattle Crypto Industry
The ongoing debate in the US Senate over cryptocurrency regulation has been reignited by Democrats' new bill for decentralized finance (DeFi). Leaked documents reveal Democrats' plan to "subject DeFi to stricter oversight," while industry representatives have warned that the bill would "de facto ban DeFi."Income from DeFi platforms in the spotlight in the USAccording to Politico, the proposal would require all individuals and organizations generating income from the front-end of a DeFi platform to register as brokers with the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). The bill contains broad definitions that could include wallet developers, oracle operators, and even node operators, along with DeFi interfaces, under the scope of the regulation. Some major DeFi coins are listed below: Blockchain Association CEO Summer Mersinger stated that this proposal would effectively ban "decentralized finance, wallet development, and innovative applications" in the US. According to Mersinger, "this language is far from enforceable" and could ultimately shift the center of innovation away from the US, as it would "drive responsible developers abroad."According to the Democrats' counterproposal, the Treasury Department would create a "restricted list" of DeFi protocols deemed "too risky." Protocols included on this list would be restricted from access by US citizens, and users who generate regular income through these protocols could face criminal penalties. Furthermore, Know Your Customer (KYC) rules would be mandated for frontends of DeFi applications and even non-custodial wallets.The Republican party suspended negotiations, stating that this counterproposal was "a convoluted and ill-intentioned policy proposal that lacks even legislative text." Catherine Fuchs, the Republican director of the Senate Banking Committee, stated in a statement that "talks have been halted until an agreed-upon date is set."Crypto industry reacts stronglyLeading figures in the crypto industry also reacted strongly to this development. Coinbase CEO Brian Armstrong called the proposal a "bad plan," saying, "It would prevent the US from becoming a leader in crypto finance and set innovation back years." Uniswap founder Hayden Adams argued that such a law would "kill DeFi in the US." Variant's legal director, Jake Chervinsky, described the draft as "unprecedented, unconstitutional government intervention." According to experts, if this proposal goes into effect, US-based DeFi liquidity could be significantly reduced. According to Newhedge data, US exchanges currently account for only 10% of global crypto trading volume. Such regulations could lead to a complete shift of liquidity to unregulated territories and a loss of competitiveness in the American market. Bipartisan negotiations in the Senate were already fragile. The draft "Responsible Financial Innovation Act," released in September, aimed to transfer oversight of spot crypto markets to the CFTC, limit the SEC's authority, and provide legal protections to DeFi developers. However, the Democrats' new proposal appears to have completely shaken this grounds for compromise.While Democratic Senator Ruben Gallego stated that his party is "ready to work," Republicans dismiss this approach as "political maneuvering." For now, bipartisan cooperation on crypto regulations has reached a standstill, and the general sentiment within the industry is pessimistic. If the parties cannot agree on a joint bill by the end of the year, another prolonged period of uncertainty regarding US crypto legislation appears likely.
The US Treasury is preparing to relax corporate crypto tax rules.
According to crypto journalist Eleanor Terrett, the US Treasury Department is preparing to make a significant change to corporate crypto tax regulations, which have long been a source of controversy. Under the Corporate Alternative Minimum Tax (CAMT), which took effect during the Biden administration, large companies were required to pay a tax rate of at least 15% on their financial statement income. However, existing accounting standards were putting companies in a difficult position, especially when valuing digital assets like Bitcoin.The Financial Accounting Standards Board (FASB) requires crypto assets to be accounted for using the "fair value" method. This means that companies must reflect fluctuations in the market price of Bitcoin they hold as profits or losses on their balance sheets, even if they haven't been sold. Therefore, while unrealized gains on stocks are tax-exempt, the possibility of Bitcoin gains being taxable has been raised. This could create billions of dollars in additional tax burdens for many institutional investors, especially Michael Saylor's company, Strategy, which holds approximately $73 billion in Bitcoin reserves. Companies holding the largest Bitcoin reserves. Industry leaders Coinbase and Strategy have taken a united stand against this regulation. A joint letter sent to the Treasury in May stated that treating digital assets differently than traditional securities is unfair. The letter also emphasized that taxing unrealized profits could force companies to sell Bitcoin simply to pay taxes, creating selling pressure in the market and putting US companies at a disadvantage in international competition. Some experts even pointed out that taxing "non-existent income" could pose constitutional problems.The issue has become increasingly prominent in recent months with the steps taken by the US Congress and the Trump administration regarding digital asset taxation. Crypto taxation will also be discussed at a hearing today by the Senate Finance Committee. These developments have influenced the Treasury Department's push to soften the controversial regulation.A Great Relief for Institutional InvestorsThe anticipated change represents a significant relief for institutional crypto investors. Publicly traded companies, in particular, who hold large amounts of Bitcoin on their balance sheets, will be able to manage their assets in line with their long-term strategies without selling pressure. Experts state that the US is trying to integrate crypto into the financial system more fairly with this step, but the impact of the final decisions on the markets will become clear in the coming months.
