The Scenius State of Regulation (Issue #30)
Crypto Policy & Regulation: January 2025
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United States 🇺🇸, Canada 🇨🇦, & Caribbean 🌎
Crypto Industry Dreams Of A Golden Era Under Trump (January 1)
The sector expects lighter regulation and wider adoption under the president-elect, but some worry about systemic risks.
Do Kwon Pleads Not Guilty To US Fraud Charges In $40 Billion Crypto Collapse (January 2)
Federal prosecutors in Manhattan unsealed a nine-count indictment charging Kwon, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, with securities fraud, wire fraud, commodities fraud and money laundering conspiracy.
US Regulator Warned Banks On Crypto But Did Not Order Halt To Business (January 3)
A U.S. bank regulator told banks to pause dabbling directly in crypto in 2022 and 2023, but did not order them to stop providing banking services to crypto companies contrary to industry complaints of widespread "debanking."
Gemini Agrees To A $5M Penalty As Part Of Proposed CFTC Order (January 5)
The proposed consent order, if approved by a judge, could allow Gemini Trust to avoid a Jan. 21 civil trial with the CFTC over alleged “false and misleading” statements.
A federal judge sentenced a Chinese business manager to 10 years in prison for her role in assisting a convicted billionaire’s fraud scheme.
US Regulator Warns Of Oversight ‘Gap’ On Cryptocurrencies (January 7)
The top US derivatives watchdog has warned against a regulatory “gap” for cryptocurrencies and called for more scrutiny of political betting markets.
More Companies Are Betting on Bitcoin (January 8)
It is a sharp pivot away from the cautious approach of the traditional corporate treasury, normally charged with safeguarding cash rather than chasing higher returns.
Breaking Down CFTC's Novel Theory Driving Uniswap Action (January 8)
The U.S. Commodity Futures Trading Commission continues to advance its position that the scope of its enforcement authority arising under the Commodity Exchange Act may be broadly applied to digital asset stakeholders.
Judge Sends Howey Question To Higher Court In Coinbase Case (January 8)
The Second Circuit will now consider how and if crypto assets should be subject to securities laws.
Judge Pushes Mango Markets Exploiter Sentencing To April 10 (January 8)
Avi Eisenberg was found guilty of fraud and market manipulation in April 2024 and may face up to 20 years in prison.
Oklahoma Senator Introduces Bitcoin Freedom Act For BTC Payments (January 9)
“If Washington D.C. can ruin something, it likely will. And it is certainly ruining the US dollar,” said Senator Deeversafter introducing the bill.
US Gov't Has To Follow A ‘Strict Process’ Before Unloading $6.5B Of Bitcoin (January 10)
Asset Reality’s Aidan Larkin explains how the US government offloads bitcoin.
Why Pierre Poilievre May Not Be Canada’s Crypto Savior (January 10)
Canada’s potential future PM has endorsed crypto in the past, but industry executives warn it may harm his upcoming campaign.
Wolf Capital co-founder pleads guilty to $9.4M Ponzi, promised 547% returns (January 11)
According to the US Department of Justice, Wolf Capital’s co-founder has pleaded guilty to wire fraud conspiracy for luring 2,800 crypto investors into a Ponzi scheme.
NY Attorney General Files Lawsuit To Recoup $2.2M In Crypto Lost To Job Scam (January 12)
Victims in New York were promised “well-paying, flexible jobs,” only to be tricked into a crypto scam, according to New York Attorney General Letitia James.
Robinhood to Pay $45 Million SEC Settlement Over Data Breach, Other Violations (January 13)
The settlement is the latest in a string of big penalties paid by Robinhood as it has grown from a disruptive startup into a more established financial firm.
Crypto Exchange BitMEX Fined $100 Million for Anti-Money-Laundering Failures (January 15)
Federal prosecutors said BitMEX flouted the rules while doing business with U.S. customers.
Weighing In On The Latest Coinbase-SEC Ruling (January 15)
Haynes Boone’s Arie Heijkoop suggests the decision may help force regulatory clarity around crypto.
The Corporate AMT’s Crypto Problem Poses Constitutional Hazards (January 16)
Under recent accounting rule changes, unrealized crypto gains must generally be reported on income statements, but questions arise about the alignment of the new Corporate Alternative Minimum Tax with constitutional tax principles.
State Bitcoin Reserve Plans Proliferate (January 16)
“It’s time for Texas to lead the way in establishing a strategic bitcoin reserve,” Texas senator Charles Schwertner wrote.
DCG Pays $38 Million Fine to Settle SEC Investigation (January 17)
Crypto company Digital Currency Group agreed to pay a $38 million fine to settle with the Securities and Exchange Commission over allegations of negligence in overseeing a program offered by its now-defunct lending subsidiary Genesis Global Capital.
Crypto Developer Sues US Attorney General, Wants Software Deemed Legal (January 17)
Michael Lewellen has asked a Texas federal court to determine that his crypto startup is within the law and to block the Department of Justice from prosecuting him.
Can Trump’s Pro-Crypto Policies Survive Beyond His Administration? (January 19)
The president-elect can only serve a four-year term before the Oval Office is contested between two new presidential candidates in 2028.
What Trump 2.0 Means for Banks, Crypto and More (January 19)
Meg Tahyar, head of the Financial Institutions Group at law firm Davis Polk, joins WSJ’s Take On the Week co-hosts Gunjan Banerji and Telis Demos to talk about what to expect when it comes to banking regulation in a second Trump administration.
Stablecoin Issuer Circle Buys Hashnote, a Crypto Asset Manager (January 21)
Stablecoin company Circle Internet Group has bought Hashnote, the operator of a blockchain-based money-market fund with nearly $1.3 billion in assets.
Banks Eye Crypto Payment Opportunities Under Trump, BofA CEO Says (January 21)
Banks will look to get in on the business of cryptocurrency transactions if digital currencies are legitimized as a form of payment by the Trump administration, Bank of America boss Brian Moynihan says.
Crypto in the Courts: Five Cases Reshaping Digital Asset Regulation in 2025 (January 21)
As we begin 2025, the legal landscape surrounding digital assets stands at a critical inflection point, with several watershed cases poised to reshape how these assets will be governed, traded, and regulated in the United States.
SEC’s ‘CryptoMom’ Tasked With Overhauling Regulator’s Digital-Assets Approach (January 21)
The acting chair of the Securities and Exchange Commission named Republican Commissioner Hester Peirce as the head of a new cryptocurrency task force, the first step in an expected about-turn by the Wall Street regulator on crypto.
Cryptocurrency Financial Firm To Plead Guilty After Novel FBI Probe (January 21)
The probe, dubbed "Operation Token Mirrors," marked the first time the FBI directed the creation of its own digital token, as well as a fake cryptocurrency company to help bait and catch fraudsters in the market.
US Court Overturns Tornado Cash Sanctions In Pivotal Case For Crypto (January 22)
In a win for crypto privacy technologies, a US court in Texas has overturned Tornado Cash sanctions.
Coinbase Files To Dismiss Bit Global Lawsuit Over wBTC (January 22)
The complaint, filed in December 2024, alleged “antitrust injury” from Coinbase over its decision to delist wrapped Bitcoin in favor of promoting its cbBTC product.
Looking Under the Hood of $TRUMP’s Legal Strategy (January 23)
Some have framed $TRUMP coin as a novel form of political expression, while others view it as a potential unregistered securities offering or raised other potential consumer protection issues.
SEC Launches Crypto Regulatory Task Force (January 23)
SEC Acting Chairman Mark Uyeda launched a crypto task force to develop a “comprehensive and clear regulatory framework for crypto assets.”
Trump Issues Executive Order to Support the Growth of Cryptocurrencies (January 23)
The order signaled that the president intends to promote an industry that faced scrutiny during the Biden administration — and that he has a personal stake in.
Coinbase Asks Appeals Court To Rule Crypto Trades Aren’t Securities (January 23)
Coinbase wants the Second Circuit Appeals Court to address whether crypto transactions are investment contracts, calling the matter of “immense importance to the crypto industry.”
SEC Clears the Way for Crypto Custody (January 24)
In one of its first actions, the post-Gensler SEC issued SAB 122, which withdraws SAB 121—effectively removing the requirement for crypto-asset custodians to - in all cases - book liabilities.
CFPB Proposes Rule To Expand Regulation E to Crypto and Gaming Accounts (January 24)
For companies operating in the digital asset space, given the expansive definition of “funds” in the proposed rule, which expressly captures stablecoins and likely captures many other widely used cryptocurrencies, particular attention should be given to whether any of a company’s offerings may meet the CFPB’s interpretation of “account.”
Trump’s Crypto Venture Divides the Industry He Aims to Support (January 25)
The president’s promotion of a speculative digital coin left some crypto investors feeling blindsided, while others saw it as a gimmick that undermined the industry’s credibility.
KuCoin to Pay Nearly $300 Million for Operating an Unlicensed Money Transmitter in the U.S. (January 27)
Two of the crypto exchange’s Chinese co-founders also each entered into a deferred-prosecution agreement.
First Stand-Alone Crypto Tax Fraud Case Leads to Two-Year Prison Sentence (January 28)
USA v. Ahlgren marked the first crypto case involving tax evasion allegations unrelated to other crimes.
In $260 Million Crypto Scheme, Will Brokerage IBKR Share Liability? (January 28)
The court-appointed receiver charged with recovering the victims’ funds sued electronic trading firm Interactive Brokers, or IBKR, claiming it knew or should have known that Alexandre, now serving a nine-year prison sentence, was running a Ponzi scheme, and that it negligently allowed him to “squander” his investors’ money.
Tuttle Capital Seeks SEC Approval For Leveraged ETFs Tied To Crypto Tokens Including $TRUMP (January 28)
Tuttle, which made its name developing leveraged ETFs tied to high-flying technology and meme stocks like MicroStrategy wants to roll out ETFs that will seek to produce a return double that of each of an array of 10 coins.
SEC rescinds SAB 121 - What it Means for Financial Institutions and Crypto Exchanges (January 30)
SAB 122 reminds entities that safeguard others’ crypto assets to apply U.S. generally accepted accounting principles or International Financial Reporting Standards Accounting Standards, as applicable.
Ex-SEC Counsel Expects Token Classifications, Custody Guidance Soon (January 30)
Adrienne Gurley outlines what she believes will be key near-term priorities for the securities regulator
Hedge Fund Elliott Warns White House Is Inflating Crypto Bubble That ‘Could Wreak Havoc’ (January 30)
Supporting digital assets that could marginalize the dollar is ‘dangerous’, investor letter says.
Republicans Want to Kill Tax-Reporting Rule for Some Crypto Trades (January 31)
As industry clout grows, Congress could wipe out IRS requirement for Form 1099 for decentralized transactions.
FTX Reaches Settlement With K5 Global, Will Keep Stake in Venture Funds (January 31)
FTX has reached a settlement with the venture firm K5 Global, ending its efforts to claw back cash from one of Sam Bankman-Fried’s largest tech investments before his crypto exchange went bankrupt in late 2022.
Trump’s CBDC Ban To Boost Crypto Adoption, Musk’s Dad Plans $200M Memecoin Raise: Finance Redefined (January 31)
Trump’s executive order may be a “game-changer” for institutional crypto adoption, signaling a presidential bet on the existing crypto ecosystem.
The United States Is Following El Salvador's Playbook — Web3 Exec (January 31)
“I think the regulatory body of El Salvador and the regulatory body of the United States will talk a lot,” said Michele Crivelli, the founder of NexBridge, a digital asset firm specializing in real-world asset tokenization.
Middle East & Africa 🌍
Jordan Approves Blockchain Policy to Modernize Government Operations (January 1)
Jordan's 2025 Blockchain Technology Policy aims to streamline government operations, reduce costs, and improve service delivery to citizens.
Kazakhstan shut down 36 illegal crypto exchanges in 2024 crackdown (January 8)
Kazakhstan shut down 36 illegal crypto exchanges in 2024, seizing $112 million in assets and advancing Anti-Money Laundering efforts alongside its upcoming digital tenge launch.
IMF Urges Kenya To Align Crypto Laws With Global Standards (January 9)
IMF recommended that Kenya overhaul outdated regulations, address scams and align its crypto framework with global standards for financial stability.
Kenya Drafts Legislation To Regulate Cryptocurrencies (January 11)
Kenya is preparing legislation to regulate cryptocurrencies with a draft proposal open for public feedback until Jan. 24.
Europe 🌍
Coinbase Acquires BUX’s Cyprus Unit, Signaling Potential Entry into CFDs (January 3)
Coinbase acquires BUX’s Cyprus unit, gaining a CIF license to potentially offer CFDs across the European Economic Area (EEA).
MiCA Can Attract More Crypto Investment Despite Overregulation Concerns (January 6)
European retail investors will likely feel the biggest effect of the MiCA regulations through more stringent data collection and the potential introduction of crypto taxation laws.
Czech National Bank Governor Weighs Bitcoin For Future Reserve Strategy (January 7)
The central bank governor, Aleš Michl, recently said he was considering investing in Bitcoin as part of the bank’s diversification strategy.
Finnish Police Seize Watches Worth $2.6M From Hex Founder Richard Heart: Report (January 8)
Finnish police have seized more than $2.6 million worth of luxury watches from Hex founder Richard Heart, who is wanted on tax fraud and assault charges in the country.
Standard Chartered Debuts Crypto Services In Europe With New License (January 9)
Banking giant Standard Chartered is debuting crypto services in Europein Europe via its new Luxembourg entity after securing a digital asset license under the MiCA framework.
UK Government Confirms Staking Services Are Not Collective Investment Schemes (January 13)
A recent statutory instrument aims to remove legal uncertainty surrounding crypto staking and ease blockchain operations.
The EU's Crypto Regulation MiCA Is Now Fully Applicable (January 17)
On 30 December 2024 the Markets in Crypto-Assets Regulation ("MiCA") became applicable to crypto-asset service providers ("CASPs") as well as offerors and persons seeking admission to trading of crypto-assets in the EU.
Bank Of Italy Consults On The Extension Of Its AML Regulations To CASPs (January 17)
Bank of Italy issued a public consultation proposing to extend the Regulation on customer due diligence and the Regulation on organization, procedures and internal controls to crypto-asset service providers (“CASPs”).
European Regulators Publish Joint Report on Recent Developments in Cryptoassets and DeFi (January 22)
This document should guide the European Union’s regulatory strategy for DeFi and determine the appropriateness of a possible additional framework (MiCAR II).
Co-Founder Of French Crypto Firm Freed After Kidnapping (January 23)
The kidnappers demanded a "large ransom in cryptocurrency", they said, without giving the amount or saying whether it had been paid.
Andreessen Horowitz To Close London Office In Pullback From UK Crypto Investing (January 24)
The investment firm is closing its London office and pulling back from its much-touted expansion into the UK, as the Silicon Valley investor seeks to refocus on the US cryptocurrency industry following the election of Donald Trump.
French Investigators Open Fraud Probe Against Crypto Platform Binance (January 28)
The economic and financial crime section of the Paris public prosecutor's office (JUNALCO) said in a statement that the probe includes money laundering in connection with drug trafficking.
Czech Central Bank To Consider Holding Bitcoin As Reserve Asset (January 29)
The Czech National Bank will consider holding billions of dollars’ worth of bitcoin in its reserves, said Governor Ales Michl, potentially the first shift into the cryptocurrency by a western central bank if it went ahead.
Crypto.Com Delists USDT And Other Tokens To Comply With MiCA (January 29)
Crypto.com beefs up regulatory alignment by dropping Tether and others, ensuring MiCA compliance.
Australia 🇦🇺 & Oceania
Crypto Compliance ‘No Longer Optional’ Under Australia’s New Draft Guidelines (January 4)
Sweeping proposed changes would force most crypto firms in Australia to obtain financial licensing, which some worry could drive innovators offshore.
Latin America 🌍
Binance Obtains Crypto Broker License in Brazil (January 2)
Binance secures its 21st global license in Brazil, acquiring Sim;paul to expand services while aligning with local crypto regulations.
Crypto Firm Tether And Its Founders Finalizing Move To El Salvador (January 13)
The founders of the world's biggest stablecoin look to capitalize on the Central American country's bid to become a hub for crypto trading.
Bitfinex Derivatives Arrives in El Salvador with DASP License (January 14)
This expansion comes against a complex backdrop as the Central American country navigates between its commitment to cryptocurrencies and its relationship with international financial institutions.
Coinbase Secures Approval To Launch Crypto Exchange In Argentina (January 28)
The country is the largest crypto receiver in Latin American, with $91 billion sent to Argentina between 2023 and 2024.
El Salvador Reforms Bitcoin Law, Scaling Back State Involvement Amid IMF Agreement (January 30)
El Salvador amended its Bitcoin Law, making BTC acceptance voluntary and reducing state involvement to align with an IMF-backed loan deal.
Asia 🌏
China Cracks Down on Risky Crypto Trades with New Bank Regulations (January 1)
China mandates banks to report risky forex and crypto transactions to curb illegal cross-border activities.
Bhutan Economic Hub To Set Up Strategic Crypto Reserve (January 8)
Bhutan’s Gelephu Mindfulness City wants to set up a strategic reserve with several established cryptocurrencies.
South Korea Plans to Lift Ban on Corporate Crypto Investment (January 8)
The FSC plans to gradually permit corporations to open real-name accounts for virtual asset investments, starting with non-profits.
Thailand Seizes 996 Bitcoin Miners After Busting Local Operation Stealing Electricity (January 9)
Thai authorities expose digital asset trading firm JIT Co. for bypassing millions in power costs with altered meters.
Thailand's Thaksin Bullish On Legalising Crypto (January 14)
The Thai government is already looking to allow using crypto as a form of payment, with the resort island of Phuket a possible site for a pilot, said Thailand's political heavyweight Thaksin Shinawatra.
Malaysia Mulls Crypto Policy After Talks With UAE And Binance Founder CZ (January 15)
Malaysia is reportedly exploring cryptocurrency regulations after its prime minister held discussions with Abu Dhabi leaders and Binance founder Changpeng Zhao.
WazirX Wins Approval From Singapore Court to Repay Users Following $230M Hack (January 23)
The Court has allowed WazirX to convene a scheme meeting with users in a "significant step" to distributing funds lost in the attack.