Regulation
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Regulation News
Regulation News
Browse all Regulation related articles and news. The latest news, analysis, and insights on Regulation.
Ripple Completes U.S. Bank Charter Approval Process
Ripple has received final approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank. Ripple National Trust Bank will manage the reserves backing the company’s dollar-pegged stablecoin, RLUSD, and provide digital asset custody services to institutional clients. The decision expands federal oversight of Ripple’s stablecoin and custody operations.The company announced the development overnight between October 26 and 27, Turkish time. In a post on X, Ripple CEO Brad Garlinghouse said the new bank would serve as a federally supervised platform supporting RLUSD and serving businesses. Ripple also published an announcement confirming the final OCC approval on its official press page. Garlinghouse reiterated his view that crypto companies and banks work better together. He emphasized innovation, accountability, and federal oversight.What services will Ripple National Trust Bank offer?Ripple National Trust Bank will focus on managing RLUSD reserves and safeguarding digital assets. The bank will have the authority to manage the segregated reserves backing RLUSD. It will also act as collateral trustee for those reserves on behalf of RLUSD holders.The new entity will provide fiduciary digital asset custody services to institutional clients. This will allow Ripple to develop its stablecoin infrastructure and institutional custody operations under federal supervision.However, a national trust bank charter does not cover the full range of services offered by traditional commercial banks. The charter does not authorize Ripple to accept deposits or issue loans. Its scope remains limited to safeguarding assets, managing reserves, and providing related trust services.This distinction is important for understanding the scope of the decision. Ripple’s approval does not mean the company will open deposit accounts for retail customers or offer consumer loans. The new bank will focus on institutional digital asset services and RLUSD’s reserve structure.RLUSD’s issuer will remain unchangedAlthough the new bank will take on responsibility for managing RLUSD reserves, the stablecoin’s issuer will remain unchanged. Standard Custody & Trust Company, Ripple’s entity regulated by the New York Department of Financial Services (NYDFS), will continue issuing RLUSD.The new structure will therefore maintain issuance and reserve management through separate entities. Standard Custody & Trust Company will retain its existing issuance role, while Ripple National Trust Bank will handle reserve and custody services within its authorized scope.The national bank charter adds federal OCC supervision to the stablecoin’s existing state-level oversight. Ripple will therefore maintain two layers of regulatory supervision around RLUSD.RLUSD, which launched in December 2024, has reached a market capitalization of $2.5 billion, according to the company. The stablecoin is used across Ripple’s payment infrastructure. Users can also use RLUSD as collateral within Ripple Prime.The new bank’s reserve management role will form part of the infrastructure supporting these use cases. The company’s announcement focuses on strengthening federal oversight and institutional services within the new structure.The application process began in July 2025Ripple first applied for a U.S. bank charter in July 2025. The OCC granted the company conditional approval on December 12, 2025. Final approval followed less than a year after that initial decision.Conditional and final approvals represent different stages of the chartering process. The initial decision requires the applicant to meet specified conditions. The final decision indicates that Ripple has cleared a key regulatory threshold in establishing its national trust bank.Ripple’s approval comes as crypto companies increasingly seek federal banking supervision. Circle, the issuer of USDC, also announced in July that it had received final OCC approval to establish a national trust bank.However, trust bank charters granted to crypto companies remain a subject of debate in the United States. Senator Elizabeth Warren is among those who have questioned the legal basis for these approvals and the risks they could pose to the financial system.Industry group The Digital Chamber, meanwhile, has highlighted the limited scope of the charters. It argues that trust banks’ powers are restricted to asset management and related services, and that applicants voluntarily submit to federal supervision.
Coinbase Faces €3.25 Million Fine Over Customer
The Central Bank of Ireland announced a fine against Coinbase’s Irish unit for failing to meet customer fund safeguarding obligations. The approximately €3.25 million penalty also covers shortcomings in its oversight of outsourced services. Coinbase said customers suffered no financial losses or problems accessing their funds.In its announcement on Thursday, October 22, the regulator said it reached a settlement a day earlier. The investigation covers breaches between November 1, 2020, and August 19, 2025. Coinbase Ireland admitted violating its obligations under electronic money regulations.Under the settlement, the company accepted a reprimand alongside the financial penalty. However, the sanctions require confirmation from Ireland’s High Court before taking effect. The announcement therefore outlines the settlement, while court confirmation remains pending.Customer fund safeguarding accounts faced shortfallsCoinbase Ireland operates as one of the group’s electronic money service providers. The company issues electronic money in exchange for customers’ fiat currency. Customers can then use those balances to purchase crypto assets on Coinbase’s platform.This activity carries specific obligations to protect customer funds. Outsourcing services does not remove the company’s responsibility for those processes. The Central Bank’s investigation examined both safeguarding arrangements and oversight of outsourced services.According to the regulator’s findings, Coinbase Ireland relied excessively on US-based group companies for safeguarding processes. The local entity also lacked sufficient expertise to oversee the management of customer funds. Weak system design and insufficient control testing allowed prolonged shortfalls in the safeguarding account.According to the settlement notice, daily safeguarding shortfalls reached €5.2 million in 2024. The investigation also found that some customer funds entered accounts belonging to other Coinbase entities. Those funds therefore went into accounts other than those held in Coinbase Ireland’s name.The issue affected approximately 30 institutional customers between March 2023 and October 2024. These customers deposited dollars into accounts held by Coinbase Inc., rather than Coinbase Ireland. Some customers transferring from the UK entity also had funds entering its UK safeguarding account until August 2025.Coinbase says customers suffered no lossesCoinbase said it resolved the issues under investigation and strengthened its customer fund safeguarding controls. The company also said it voluntarily reported some problems to the Central Bank in January 2024.According to Coinbase, no customer suffered financial losses because of these issues. Customers also retained access to their funds. The company stressed that the shortcomings related to past operations.A company spokesperson also addressed the circumstances behind the problems in comments to Reuters. The spokesperson said they largely arose while Coinbase took steps to protect customers during significant disruptions.The Central Bank emphasized payment and electronic money firms’ responsibility to safeguard customer funds. Karen O’Leary, the regulator’s director of enforcement, said it had no tolerance for weaknesses in these arrangements.Settlement reduced the penalty by 30%The Central Bank initially determined a financial penalty of €4,646,597 for the breaches. It then applied a 30% reduction under its settlement framework. This brought the amount accepted by the company to €3,252,618.Another Irish company within the Coinbase group faced a financial penalty last year. In November 2025, the Central Bank announced an approximately €21.46 million fine against Coinbase Europe. That case concerned transaction monitoring failures under anti-money laundering and counter-terrorist financing requirements.In the earlier investigation, the regulator found that the company failed to properly monitor over 30 million transactions. The latest case focuses on Coinbase Ireland’s customer fund safeguarding and oversight of outsourced services. The two enforcement actions concern different companies within the same group and separate regulatory obligations.
Six Crypto Organizations Send Joint Letter to SEC
Six crypto organizations have urged the SEC to incorporate its digital commodity classification into binding rules. Their joint letter seeks a more durable legal foundation for certain crypto assets. The organizations argue that existing interpretations provide insufficient certainty for developers and market participants.The signatories include the Stellar Development Foundation, Hedera, Aptos Labs and Ava Labs. The Cardano Foundation and Chainlink Labs also joined the initiative. These organizations operate within the XLM, HBAR, APT, AVAX, ADA and LINK ecosystems, respectively. The submission focuses on the SEC’s proposed “Regulation Crypto Assets” framework. The six organizations want the digital commodity definition incorporated directly into the regulation’s operative provisions. Their goal is to give the SEC’s existing approach a firmer regulatory foundation.Calls for Stronger Protection of Digital Commodity StatusThe debate centers on the distinction between the SEC’s explanatory statements and the proposal’s binding provisions. According to the organizations, the proposal references the digital commodity classification in its preamble. However, the rule text itself does not establish that classification with equal clarity.The joint letter calls for preserving the approach the SEC outlined in March. In its earlier interpretation, the agency identified Bitcoin and Ether as examples of digital commodities. XRP, ADA, LINK, AVAX, HBAR, XLM and APT also appeared among those examples.The signatories consider reliance on regulatory interpretation alone insufficient. They argue that incorporating the digital commodity definition into formal rules would reduce legal uncertainty. The request particularly concerns teams developing products and planning investments over longer periods.The letter itself does not represent an SEC decision granting these assets a new status. The organizations are requesting changes to the proposed framework to reinforce the existing approach. Their submission therefore does not mean the SEC has accepted their request or implemented new rules.Token Sales and Asset Status Require Separate AssessmentsAnother central issue is the legal distinction between a token and its sale. Under certain circumstances, a company’s token sale may involve an investment contract. However, the organizations stress that this does not automatically make the token itself a security.The letter therefore requests an explicit provision stating that digital commodities are not securities. It also proposes preserving that distinction when a digital commodity is subject to an investment contract. This would separate the asset’s characteristics from the commitments made during its sale.The organizations’ approach addresses a central question in the debate over crypto regulation. The circumstances surrounding a token sale can affect which rules apply to the transaction. The joint submission also seeks clarity on how that assessment affects subsequent uses of the token.Letter Also Addresses Secondary-Market TransactionsThe letter proposes a clearer framework for secondary-market transactions on exchanges. The organizations request a default presumption for digital commodity sales by parties other than the issuer. Without outstanding issuer commitments concerning essential managerial efforts, they want a presumption that these transactions involve no investment contract.The submission also emphasizes the voluntary nature of the proposal’s “Rule 400” safe harbor. The organizations argue that using this mechanism should not constitute an admission that an investment contract previously existed. Choosing not to use it should not, by itself, create a presumption to the contrary.The SEC’s official timetable set October 20, 2026, as the deadline for comments on the proposal. Published in August, the proposal outlines a new framework for investment contracts involving crypto assets. The close of the comment period does not automatically bring the regulation into force.The six organizations aim to reduce uncertainty surrounding asset classification throughout this process. Industry representatives want the SEC to reinforce its earlier interpretations through explicit provisions in the final regulation. The agency’s response will be an important issue as the rulemaking process advances.
US Crypto Agenda: Trump’s Fraud Message and OCC’s GENIUS Rule
The US crypto market focused on two major developments on Wednesday, October 21. President Donald Trump is preparing to discuss efforts to combat crypto fraud at a White House event. On the same day, the Office of the Comptroller of the Currency (OCC) announced its final rule under the GENIUS Act.The developments highlight Washington’s digital asset security and oversight agenda. The White House is focusing on foreign criminal networks targeting Americans. Meanwhile, the OCC is establishing operating requirements for stablecoin issuers under its jurisdiction.Trump to Outline Efforts Against Crypto FraudA White House official told Reuters that the event would cover cybercrime prevention efforts. Trump and cabinet members will highlight operations targeting fraudulent crypto investment websites. They will also address efforts to combat online scammers who deceive users through impersonation.FBI Director Kash Patel and Attorney General Todd Blanche are expected to attend. Homeland Security Secretary Markwayne Mullin and Defense Secretary Pete Hegseth are also among the expected participants. Their remarks could provide further details on the administration’s approach to cross-border criminal networks.FBI data points to an increase in complaints about internet scams. Americans filed more than one million complaints with the agency last year. That figure rose 17% compared with 2024.However, the data covers all internet scam complaints. The total therefore cannot be attributed solely to crypto fraud.In a March executive order, Trump directed the Justice Department to prioritize investigations into online scammers. He later instructed the Department of Homeland Security to work with private companies to monitor foreign cybercrime groups. Today’s event provides another platform for the administration to present its work in this area.OCC Finalizes Stablecoin RulesOn the regulatory side, the OCC’s GENIUS Act decision took center stage. The agency announced its final rule for payment stablecoins and certain related activities. The regulation covers issuers under OCC supervision and certain custody services.The new framework introduces requirements for reserve assets, redemption processes, and risk management. It also governs audits, reporting, capital, applications, and registration procedures. Oversight of foreign stablecoin issuers is another area covered by the rule.Its scope includes certain bank subsidiaries and nonbank entities seeking federal authorization. Some state-licensed issuers subject to the OCC’s regulatory or enforcement authority will also have to comply. The agency is thereby clarifying the implementation framework for different types of issuers under its jurisdiction.The GENIUS Act, which Trump signed on July 18, 2025, established a regulatory framework for payment stablecoins. The law generally restricts payment stablecoin issuance in the United States to authorized entities. The OCC’s decision details how this framework will operate within the agency’s jurisdiction.Effective Date Set for January 18, 2027According to the OCC, the final rule and the GENIUS Act will take effect on January 18, 2027. Today’s announcement therefore does not mean the new framework applies immediately. The agency will separately announce when it will begin accepting applications and waiver requests.The final text does not cover all anti-money laundering and sanctions obligations. The OCC will address provisions relating to the Bank Secrecy Act and OFAC sanctions in a separate rulemaking. It will coordinate that process with the Treasury Department.Comptroller of the Currency Jonathan Gould emphasized standards for reserve backing, redemption, and risk management. The agency also said it would monitor the sector’s development and update its supervisory framework as necessary.
Switzerland Approves Its First Spot Bitcoin ETF
The Swiss Financial Market Supervisory Authority (FINMA) has approved the country’s first spot Bitcoin ETF for retail investors. The decision allows a fund to invest directly in Bitcoin under Swiss investment fund rules. It adds another option to the country’s range of crypto investment products.FINMA announced the decision on Tuesday, October 20. The regulator granted an exception to portfolio diversification rules after assessing Bitcoin’s trading history and high trading volumes. Other fund providers have also submitted applications for similar products or announced plans to apply.However, the approved fund and its issuer remain unidentified. According to The Block, a FINMA spokesperson said the regulator does not disclose institution-specific information. The announcement therefore does not reveal which provider will offer the product to investors.FINMA Grants Bitcoin an Exception to Diversification RulesThe new ETF falls under the Swiss legal category of “other funds for alternative investments” carrying specific risks. This classification determines the investment fund framework governing the product. The fund will be able to invest its assets directly in Bitcoin.Diversification rules for investment funds aim to limit portfolio concentration in a single asset. FINMA granted the Bitcoin ETF an exception to these requirements. The regulator highlighted Bitcoin’s longer trading history compared with most other crypto assets.Bitcoin’s high trading volumes also played an important role in the assessment. FINMA consequently permitted a fund structure focused on a single asset. However, the regulator stressed that its decision does not eliminate the risks associated with Bitcoin investments.Applications from other providers show that work on spot Bitcoin ETFs continues in Switzerland. The announcement offers no approval timeline for those applications. The first approval also does not mean other products will automatically receive authorization.How the ETF Differs From Existing Bitcoin ProductsSwiss investors have long had access to exchange-traded crypto products. The SIX Swiss Exchange has hosted Bitcoin-linked exchange-traded products (ETPs) for years. A product offering exposure to Bitcoin and Ether joined the exchange in 2019.The significance of the new approval lies in the investment vehicle’s legal structure. Existing Swiss Bitcoin ETPs are debt securities. FINMA’s newly approved ETF falls under Swiss investment fund legislation.Although both product types provide exchange-based access to Bitcoin, they have different legal structures. The new ETF’s fund status brings requirements covering custody, operational risks, and investor disclosures. This distinction is among the key factors investors need to examine when assessing these products.FINMA also authorized a crypto investment fund in 2021. However, that fund targeted qualified investors. The latest decision covers an ETF structure that invests directly in Bitcoin for retail investors.Custody and Investor Disclosures Take PriorityFINMA also highlighted the operational risks associated with crypto investments. Guidance the regulator published in January addressed risks related to crypto asset custody. Supervised institutions must take measures to mitigate these risks.Fund documents must also clearly explain the risks to investors. This will allow investors to assess the product’s structure and potential losses before investing. The rules of conduct under Switzerland’s Financial Services Act will also apply when firms sell the ETF.This framework extends beyond changes in Bitcoin’s price. Asset custody and the management of fund operations also form part of the regulatory assessment. FINMA expects institutions to manage risks in these areas and communicate them clearly to investors.The regulator also emphasized that Bitcoin remains highly volatile. Investors could lose a significant portion of their money even when investing through an ETF. Regulatory approval indicates that a product meets certain requirements; it provides no guarantee of returns or capital protection.The decision marks a new stage in the development of Bitcoin funds for Swiss retail investors. Other applications suggest that similar products will remain on the agenda. However, the first fund’s provider and details of its availability to investors remain unclear.
SEC Crypto Proposal Reaches Key Deadline: $75 Million Exemption on the Table
The public comment period for the U.S. Securities and Exchange Commission’s (SEC) crypto asset proposal closes today. The draft, titled “Regulation Crypto Assets,” aims to change how token projects raise capital. It proposes a registration exemption for eligible issuers raising up to $75 million annually.The SEC’s official schedule lists October 20, 2026, as the deadline for public comments. However, this date does not mark the rules’ entry into force. The agency still lists the regulation as a proposal.The process matters for startups seeking funding through token sales in the United States. The draft centers on a tailored offering framework for certain investment contracts involving crypto assets. Its scope therefore falls short of granting blanket permission for all crypto transactions.Two Separate Funding Routes for Crypto ProjectsThe SEC proposes two exemptions as alternatives to existing registration requirements. The first would allow eligible startups to offer up to $5 million over four years. The second would cover fundraising of up to $75 million in each 12-month period.These thresholds create separate funding routes for projects of different sizes. Companies would still need to meet the relevant conditions and provide investors with required disclosures. The proposal preserves prohibitions against fraud and market manipulation for issuers using either exemption.The higher fundraising limit also comes with financial statement and ongoing reporting requirements. The SEC thus seeks to improve access to capital while requiring information that helps investors assess projects.In its rationale, the agency argues that existing rules do not adequately address crypto projects’ characteristics. Network development and growing token adoption, in particular, create needs that differ from traditional financing models. According to the SEC, this mismatch can complicate transaction planning and constrain innovation.Tokens’ Legal Status Also Takes Center StageAlongside the fundraising exemptions, the draft includes a conditional “safe harbor” mechanism. This addresses circumstances in which a crypto asset would cease to be subject to an investment contract.The SEC’s approach distinguishes a project’s initial sale from its later development stages. The agency notes that an asset initially subject to an investment contract may eventually leave that scope. However, the draft makes this transition subject to specific conditions.This distinction matters for token issuers seeking to understand their subsequent obligations. It also aims to help investors assess the legal status of the assets they purchase. The proposal does not automatically grant every token an exemption.Academics Raise Investor Protection ConcernsSome legal academics, meanwhile, oppose the SEC’s proposed framework. A submission from John Coates, John Coffee and other signatories questions the need for separate crypto regulation.The academics argue that existing fundraising exemptions already offer several options. They also warn that giving companies greater flexibility over disclosures could weaken investor protection.Their objections also focus on investors’ ability to compare projects. According to the signatories, allowing issuers broad discretion to determine which information matters creates risks. They therefore urge the SEC to address fundamental shortcomings and submit a revised proposal.The SEC’s comment file shows that a range of market participants has joined the process. It includes submissions from representatives of Bitwise, Hyperliquid Policy Center, Chainalysis and AIMA. Their participation shows that the debate extends beyond token development teams.Today’s deadline marks an important point in the proposal’s public comment process. However, the SEC’s final regulation will determine the precise exemptions available to companies. The current official page does not announce final approval or an effective date.
South Korea Blocks Access to 27 Crypto Websites
South Korea has approved measures to block access to 27 websites operated by crypto asset service providers that failed to meet registration requirements. The decision, which includes KuCoin and MEXC, extends restrictions on mobile applications to websites. The Korea Financial Intelligence Unit (FIU) announced the development on October 13.According to the FIU, which operates under the Financial Services Commission (FSC), the relevant commission approved the decision following two reviews on October 6 and 7. The measures involve terminating services whose servers or operators are located domestically and blocking access from South Korea to websites based overseas.Authorities Will Not Wait for User Losses Before Blocking AccessThe FIU stated that conducting unregistered crypto business is itself a violation of the law. Authorities therefore aim to block access following a review of identified activities, without waiting for confirmed user losses or the outcome of an investigation.The agency will also monitor attempts by blocked operators to continue their activities under different domain names and request additional reviews of new websites. According to the announcement, the FIU has referred a total of 44 unregistered operators to investigative authorities.Scrutiny of KuCoin and MEXC Dates Back to 2022South Korea has been scrutinizing these platforms for several years. In an official announcement on August 18, 2022, the FIU said it had referred 16 foreign crypto service providers, including KuCoin and MEXC, to investigative authorities over suspected violations of reporting requirements.The list at the time also included platforms such as Phemex, XT.com, Bitrue, CoinW, Poloniex, BTCC, DigiFinex and Pionex. The agency said these businesses were operating in the country through Korean-language websites and campaigns targeting local customers.In the same announcement, the FIU noted that it had informed foreign operators of their registration obligations in July 2021. It said unregistered activities had nevertheless continued and requested that the relevant authorities block access to their websites.The measures announced in 2022 also included restrictions on business relationships between registered domestic crypto service providers and these operators. Authorities also planned to review services enabling crypto purchases by credit card and notify financial intelligence units in the relevant foreign jurisdictions.Website Blocks Follow Google and Apple RestrictionsMeasures targeting mobile applications took effect in 2025. According to the FSC’s announcement on April 14, 2025, Google Play began restricting the apps of 17 unregistered foreign crypto platforms on March 25.Apple introduced similar measures for 14 apps, including KuCoin and MEXC, starting on April 11. Under those decisions, users in South Korea could no longer download the affected apps, while existing users could no longer receive updates.The same announcement explained how authorities assessed whether foreign companies were targeting the South Korean market. Officials considered Korean-language services, marketing activities aimed at South Korean customers and support for payments in won.The FIU warned that unregistered operators remained outside local supervisory and user protection frameworks. Citing risks involving personal data leaks, cyberattacks and the protection of customer assets, the agency urged investors to check platforms’ registration status. It also published a list of registered operators on its website.Withdrawal Support Is Being PreparedThe new website restrictions could also affect existing users’ access to their assets. Acknowledging potential withdrawal difficulties, the FIU said it would provide guidance on withdrawal methods and procedures through the Digital Asset eXchange Alliance (DAXA), with cooperation from the operators.Authorities aim to reduce potential withdrawal problems for existing users as they restrict access to unregistered platforms.
Greece Plans 10% Tax on Crypto Gains
Greece is preparing to introduce a 10% tax on cryptocurrency gains. A draft bill released for public consultation would exempt annual capital gains of up to €500. The proposal has yet to become law and is expected to reach parliament in November.The new framework covers gains from selling crypto assets, as well as activities such as staking and lending. It also includes separate provisions for crypto-to-crypto exchanges and the declaration of past gains.Crypto-to-crypto exchanges would not trigger taxAccording to an October 7 statement from Greece’s Ministry of National Economy and Finance, individual investors’ capital gains would generally be calculated as the difference between purchase and sale prices. Rules would govern transaction documentation and the use of average acquisition costs for assets purchased through multiple transactions.The draft does not treat the exchange of one crypto asset for another as a taxable capital gain. Returns from staking, lending and liquidity provision would be classified as interest income and taxed at 10%.An earlier plan proposed a 15% rateGreece’s preparations to tax crypto had already attracted attention. Reports on June 5, citing two government officials, indicated that authorities were working on a 15% tax.The June plan also included a €500 exemption. The latest draft’s proposed rate of 10% is five percentage points below the previously reported level.This change does not represent a reduction in an existing crypto tax. It reflects the difference between the earlier preparations and the current proposal.Investors could declare past gainsThe draft would also allow investors to voluntarily declare capital gains from previous crypto transactions. Those meeting the specified conditions would have 12 months from the law’s publication to submit declarations without penalties or interest.The proposal also excludes crypto sales from the digital transaction duty. Public consultation will close on October 22, and the ministry aims to submit the bill to parliament and secure its passage in the first week of November.Tax transparency is increasing across EuropeGreece’s proposal comes as the European Union expands tax transparency for crypto transactions. According to the European Commission, DAC8 rules, which began applying on January 1, 2026, extend automatic information exchange between countries to crypto assets.The framework aims to ensure that information on crypto transactions reaches tax authorities and is shared among member states. It creates a broader basis for administrative cooperation in tracking income from cross-border transactions.Under DAC8, service providers are required to report transactions involving customers residing in the European Union. The European Commission says these obligations aim to strengthen countries’ ability to combat tax evasion and avoidance.The information-sharing framework also complements the Markets in Crypto-Assets Regulation, known as MiCA. While MiCA establishes rules for market activities, DAC8 expands tax authorities’ access to transaction information.However, the European Union has no unified system for taxing crypto gains. Greece’s proposal forms part of its efforts to establish a national tax framework.According to Reuters, Greek officials say the widespread use of overseas platforms makes it difficult to estimate the size of the domestic crypto market. Authorities have yet to provide a specific projection for revenue from the proposed tax.
UK Opens New Chapter for Crypto as FCA Starts Accepting Applications
The UK’s Financial Conduct Authority (FCA) began accepting applications for cryptoasset authorisation on September 30. The regulator urged firms seeking to continue operating in the country to apply by February 28, 2027, ahead of the new regime taking effect on October 25, 2027.According to the FCA, applicants will be assessed on consumer protection, safeguarding of customer assets, market integrity and financial resilience. Submitting an application will not guarantee approval; firms that fail to meet the required standards will not receive authorisation under the new regime.FCA will assess crypto firms across four key areasThe application process marks the implementation phase of the UK’s plan to bring the crypto sector under broader regulatory oversight. The FCA requires firms to demonstrate clearly that they meet its standards.Dominic Cashman, the FCA’s director of authorisation, said the new regime would give consumers stronger protections and firms a clear framework in which to operate. The regulator is also supporting applicants through pre-application meetings and webinars.Existing firms that apply during the application window may continue providing services under the relevant conditions if their applications remain under review when the new rules take effect. This will also allow them to take on new business while awaiting a decision.Existing registrations will not automatically become authorisationsThe FCA’s application guidance sets out a separate requirement for firms registered under anti-money laundering regulations. Existing registration under the Money Laundering Regulations (MLRs) will not automatically convert into authorisation under the new system.These firms will need to obtain the necessary authorisation under the Financial Services and Markets Act. Businesses already authorised for other financial activities will need to extend their existing permissions to cover cryptoasset services.Firms will submit their applications through the FCA’s Connect system. An existing registration or authorisation relationship with the regulator will therefore not remove the requirement to apply for the relevant cryptoasset permissions.Firms that miss the application window will face restrictionsFebruary 28, 2027, does not mark the end of all opportunities to apply. However, firms applying after that date will not receive an expedited assessment to compensate for their late submission.Late applicants that have not secured authorisation when the regime begins will fall under transitional provisions. They will only be allowed to conduct activities necessary to fulfil existing contracts and will be unable to enter into new contracts with either existing or new UK customers.Firms that do not apply before the new regime begins will need to wind down their relevant UK cryptoasset business by that date. The application timetable will therefore directly affect their ability to accept customers and maintain services.Trading platforms, custody and staking services fall within scopeThe FCA’s perimeter guidance, published on September 16, explains which activities will fall under the regime. It covers issuing qualifying stablecoins, operating cryptoasset trading platforms, dealing and arranging deals, safeguarding assets and arranging staking services.Firms will need to determine which permissions their products and services require based on their business models. The FCA will also consult in October on targeted updates to the guidance following limited legal exclusions and clarifications affecting certain technical service providers.The final rules announced on June 30 include financial resilience requirements such as capital standards and stress testing. The framework also introduces provisions addressing insider trading and market manipulation.The FCA says it will apply established financial services standards to crypto firms where the risks are comparable. This includes the Consumer Duty rules governing firms’ responsibilities toward consumers.Until the new rules take effect in October 2027, the FCA’s oversight in this area will remain largely limited to financial promotions and anti-money laundering controls. The regulator also stresses that broader regulation will not eliminate the risks associated with crypto investments.
Coinbase Wins CFTC Approval for 24/7 Settlement With USDC
Coinbase has received approval from the U.S. Commodity Futures Trading Commission (CFTC) for its derivatives clearinghouse, Coinbase Clearing LLC. In its September 28 announcement, the company said the new infrastructure is designed to support USDC collateral and round-the-clock settlement, seven days a week.The approval adds another component to Coinbase’s U.S. derivatives infrastructure. Alongside its existing brokerage and derivatives exchange, the company now has a registered clearinghouse.Coinbase Gains Derivatives Clearing CapabilitiesCoinbase Clearing LLC has secured registration as a Derivatives Clearing Organization (DCO). This gives Coinbase the ability to create and settle fully collateralized contracts directly.Within the company’s derivatives business, Coinbase Financial Markets serves as the broker, while Coinbase Derivatives operates the exchange. Coinbase Clearing adds clearing services to this structure.Coinbase expects the new infrastructure to accelerate product development and improve operational efficiency. The company also says it will gain greater flexibility to introduce new regulated products over time.Clearinghouses help ensure that buyers and sellers meet their obligations in derivatives transactions. They also help manage counterparty risk, including the possibility that one party fails to fulfill its obligations.Clearing infrastructure therefore plays an important role in the process that follows an order match on an exchange. The approval also supports Coinbase’s expansion as a provider of financial market infrastructure.USDC Collateral and Round-the-Clock Settlement Take Center StageCoinbase describes the new entity as the first clearinghouse built around native USDC use. Its core features include USDC collateral and 24/7 settlement.Coinbase General Counsel Molly Abraham said the approval completes the company’s end-to-end derivatives infrastructure. According to Abraham, the structure will support the introduction of more regulated derivatives products using USDC collateral.Approval Covers Fully Collateralized ProductsThe clearing authorization is limited to fully collateralized futures, options on futures, and swaps. Coinbase Clearing’s registration does not authorize it to clear leveraged products.A fully collateralized model requires complete collateral coverage for contractual obligations. This scope determines which products Coinbase can support through its new clearinghouse.Completing its derivatives infrastructure therefore does not mean Coinbase will transfer clearing for all existing products to the new entity. The company will continue working with external clearing partners for certain products.Existing Partners Will Continue Supporting Leveraged ProductsCoinbase said it will continue relying on its existing partners to support its margined derivatives business. Its planned launch of single-stock perpetual futures also falls within this arrangement.This distinction clarifies the new clearinghouse’s role. Fully collateralized products fall within Coinbase Clearing’s authorized scope, while certain other products will continue to rely on existing partnerships.
SEC Crypto Guidance Clarifies Staking and Token Buybacks
The U.S. Securities and Exchange Commission’s (SEC) Division of Corporation Finance has published new guidance on the application of securities laws to crypto assets. The September 25 FAQs address token buybacks, liquid staking tokens, protocol development activities and promotional communications.The explanations focus on whether a protocol is functional and what commitments issuers have made to investors. The document reflects the views of division staff and does not constitute a binding SEC decision or a new regulation.Protocol Status Is Key to Token Buyback AnalysisAccording to the guidance, announcing a buyback program for a non-security token in a functional crypto system does not, by itself, constitute a commitment to undertake essential managerial efforts. The explanation addresses buybacks conducted for purposes such as treasury management, reducing circulating supply and protocol-funded token burns.The assessment may differ for systems that are not yet functional. If an issuer presents a buyback as a mechanism that generates returns for token holders, the announcement could constitute a commitment to undertake essential managerial efforts.This distinction matters under the Howey test, which is used to identify investment contracts. Its elements include investors’ expectations of profits from the managerial efforts of others. The stage at which a buyback is announced and the promises accompanying it therefore influence the assessment.Conditions Matter for Liquid Staking TokensThe guidance also clarifies the classification of “staking receipt tokens,” which represent ownership of staked assets. Under the specified circumstances, a token representing a digital commodity that is not subject to an investment contract may qualify as a “digital tool” because it serves to establish ownership.Tokens issued by a protocol-based liquid staking provider may instead qualify as “digital commodities.” In such cases, the token must be intrinsically linked to the programmatic operation of a functional crypto system. Its value must also derive from that operation and supply-and-demand dynamics.The document further explains the limits of what qualifies as a receipt. Such an instrument must not alter the underlying asset’s rights and obligations or provide its holder with additional financial incentives beyond those associated with the asset.A staking receipt token does not independently guarantee rewards associated with the underlying asset or determine their amount. The guidance therefore does not provide an unconditional securities exemption for all liquid staking products.Some of the largest liquid staking tokens include: How Are Maintenance and Development Activities Assessed?According to the explanations, once a crypto system becomes functional, activities that secure, maintain or improve it do not constitute essential managerial efforts. Activities intended to increase network use and participation also fall within this scope.Sponsoring or funding development projects is among the examples provided in the guidance. A team’s continued development of a functioning protocol therefore does not, by itself, satisfy the relevant element of the Howey test.However, this assessment applies to functional systems. Commitments to complete a project that is not yet operational do not automatically fall within the same scope.Promotional Communications and Profit ClaimsThe Division of Corporation Finance also addresses projects’ marketing messages. Promoting a crypto system’s existing utility and capabilities, without additional factors, is unlikely to constitute a commitment to undertake essential managerial efforts.Indefinite, aspirational statements about future features may receive similar treatment. However, those statements must not promote the potential for profit.This approach does not exclude every promotional activity from investment-contract analysis. Specific promises, the project’s circumstances and the communications as a whole remain relevant to the assessment.Guidance Also Addresses Trading PlatformsAccording to the guidance, platforms that provide secondary markets for crypto assets do not automatically qualify as “promoters” simply because they facilitate trading. A platform must meet the definition of a promoter under Securities Act Rule 405.The document also states that, where a functional crypto system has no central party, subsequent statements by the issuer would generally be unlikely to create a new investment contract. The key consideration is whether the issuer or another party retains control that could affect the system’s success or failure.The FAQs build on the SEC’s March 17, 2026, interpretation concerning crypto assets and do not change existing laws or create new obligations. The document states that the Commission has neither approved nor disapproved its contents and explains how division staff interpret the existing framework.
CFTC Grants Exemption to Crypto Software Developers
The US Commodity Futures Trading Commission (CFTC) granted an exemption on Thursday to software companies building crypto trading tools. Under certain conditions, developers won't face enforcement action for not registering as introducing brokers.An extension of the Phantom decisionThis follows the "no-action" letter the CFTC gave crypto wallet provider Phantom in March. Phantom was trying to add derivatives trading functionality to its software at the time. Thursday's decision took that same protection out of Phantom-only territory and opened it up to any developer whose software connects users to regulated derivatives markets. Developers who want to make use of it need to provide certain disclosures and put internal policies and procedures in place.A footnote in the announcement suggests the exemption might not stay limited to "crypto asset-related software." The scope could widen down the line.Solana Policy Institute General Counsel Patrick Wilson said the protection that used to apply only to Phantom has now become a framework other software providers can use too. Developers, he noted, now have more clarity on how to connect users to regulated derivatives markets without triggering introducing-broker status.Digital Chamber CEO Cody Carbone also welcomed the decision on X. In his view, it removes the ambiguity that had been discouraging software development in derivatives markets.SEC made a move the same dayThe decision came just hours after the SEC announced its "innovation exemption," which will pave the way for onchain trading of tokenized stocks. After the Senate fell short on a preliminary vote for the Clarity Act last week, both the SEC and CFTC said they'd move forward with their own agendas. The Clarity Act would have been the first law to comprehensively regulate the digital asset industry at the federal level.The industry wanted that bill because it offered a permanence regulators can't provide on their own.The permanence concern remainsA source in the crypto industry pointed out that no-action letters can be reversed by a future administration. According to the source, the expansion is good news, but the risk is still on the table. As more people adopt this framework, the source believes, the harder it becomes to walk it back.CFTC Chair Michael Selig floated the idea of turning the Phantom letter into a formal rule back in May, but that hasn't happened yet.
SEC Steps In After CLARITY Act Stalls: Five-Year Exemption for Tokenized Stocks
The U.S. Securities and Exchange Commission (SEC) announced a temporary, conditional exemption on September 17 allowing tokenized U.S. stocks to trade on blockchain-based platforms in a limited capacity. The Commission granted so-called "Tokenized Securities Venues" (TSVs) a temporary exemption from the "exchange" definition under the Securities Exchange Act, in exchange for these platforms trading tokenized versions of National Market System (NMS) stocks through permissioned automated market makers and liquidity pools.What the Innovation Exemption bringsThe rule was announced under the name "Innovation Exemption." SEC Chairman Paul Atkins described the move as a step toward bringing U.S. capital markets into the digital age, saying the exemption offers a temporary solution while the Commission works on more permanent rules to facilitate onchain trading.The same order also grants a temporary exemption from the "dealer" definition to parties that supply liquidity with their own capital in AMM liquidity pools while engaging in activities that could count as dealing, such as quoting prices to customers or entering into committed capital agreements.The conditions are as follows:The number of symbols and trading volume of tokenized stocks listed will be limitedTokenized stocks must give holders the exact same rights as traditional shareholders, including voting rights and dividendsBefore a stock tokenized by a third party can be listed for trading on a platform, the underlying company must receive written notice and the right to objectSmart contracts must be auditable, public, and run on a permissionless ledgerIf trading in the underlying stock is halted on its primary exchange, trading on the platform must be halted simultaneouslyPlatforms must publicly disclose information about their own operations and the trading activity of their affiliatesThe exemptions will automatically expire after five years. During this period, the SEC plans to work on a permanent framework based on the public comments it collects.TimingThe decision came just two days after the CLARITY Act, a crypto market structure bill, stalled in the Senate. For an industry that didn't get what it was hoping for from Congress, the SEC's administrative move fills the gap, at least for now. Coinbase, Securitize, and Ondo Finance are reportedly shaping their product plans around this exemption.
What Does the U.S. Want to Change in Crypto Taxes? Bill Clears Committee
A new bill focused on crypto taxation has cleared an important stage in the U.S. House of Representatives. The House Ways and Means Committee approved the Digital Asset Tax Certainty Act by a 38–5 vote.Bill H.R. 10357 seeks to establish clearer tax rules for crypto transactions. It covers network fees, stablecoin sales, wash-sale rules, mining, staking and exchange reporting.Crypto tax bill passes by 38–5 voteThe committee considered the bill during a markup meeting on September 16, 2026. According to the official meeting record, the session began at 10:00 a.m. ET.The meeting took place at 5:00 p.m. Türkiye time. The committee ordered H.R. 10357 favorably reported to the full House as amended.The official Ways and Means statement announced 38 votes in favor and five against. The committee also said lawmakers prepared the bill through bipartisan discussions.The vote does not immediately change U.S. tax rules. The bill must first pass the full House.The Senate must then approve the same text. The president would also need to sign the bill into law.Proposed exemption for network fees under $10One of the bill’s most notable provisions concerns small network and transaction fees. Under the current system, even very small digital asset transactions can create separate reporting requirements.The committee said the IRS received hundreds of millions of 1099-DA forms in 2025. Many of those forms involved transactions worth less than $10.According to the bill’s fact sheet, the proposal covers three areas:Gains or losses from sales of regulated U.S. dollar stablecoins.Gains or losses from using digital assets to pay network and transaction fees under $10.An election for a simplified accounting method for digital assets.The $10 threshold applies to specific fee payments. A crypto purchase under $10 would still require separate analysis under the proposal. The fact sheet ties the exemption to digital assets used for network and transaction fees. It concerns gains or losses arising from that use.The stablecoin provision also has a limited scope. It refers to sales of regulated U.S. dollar stablecoins.Wash-sale rule would apply to digital assetsThe proposal would extend existing anti-abuse rules to digital assets. These rules include wash-sale and constructive-sale provisions.The wash-sale rule limits tax-loss strategies involving a sale at a loss and a quick repurchase. If adopted, the rule could require more detailed tracking of crypto transactions.Exchanges and users may need to match purchase and sale records more consistently. This could affect tax-loss harvesting strategies among crypto investors.The proposal also covers rules involving financial derivatives, U.S. territories and foreign corporations. The committee says these changes would bring digital assets closer to traditional financial instruments.Mining and staking rules would become clearerH.R. 10357 would clarify the tax treatment of mining and staking rewards. The fact sheet says the bill would establish sourcing and characterization rules for these rewards.This section affects miners, validators, staking platforms and individual users. Clearer rules could make reward reporting more predictable.The bill also aims to make it easier for exchange-traded investment products to participate in staking. It seeks to protect their tax status while they engage in staking activities.The fact sheet does not explain every detail about tax rates or payment timing. The final scope would depend on the bill’s text and later regulations.Exchange reporting burden could declineOne section of the bill would clarify digital asset broker reporting duties. The committee says the current system creates a large number of unnecessary tax forms.The proposed framework seeks to streamline broker reporting and reduce compliance costs. This could affect platforms with high transaction volumes.The bill would also direct the Treasury Department to create a voluntary disclosure program for digital assets. The program could offer reduced penalties to eligible taxpayers who report past mistakes.The mechanism targets users who failed to comply because of uncertainty or high costs. Eligible taxpayers could gain a route for correcting earlier reporting problems.Digital assets would move closer to traditional financeH.R. 10357 would place digital assets closer to traditional financial instruments under the tax code. The bill would make digital assets eligible for two existing tax safe harbors.One safe harbor would make it easier for foreign persons to invest in U.S. markets. The other would allow taxpayers to lend digital assets without triggering an immediate taxable event.The proposal would also let digital asset dealers and traders use mark-to-market accounting. This method is already available for securities and commodities.Common digital assets donated to charities would receive rules similar to publicly traded securities. This could matter to traders and users planning charitable donations.The bill is separate from the CLARITY ActH.R. 10357 is a separate bill from the CLARITY Act. It focuses directly on federal tax rules for cryptocurrencies and other digital assets.The CLARITY Act vote that failed to advance in the Senate on Tuesday did not concern H.R. 10357. The two processes involve different texts and different legislative stages.The committee’s 38–5 vote therefore does not represent another CLARITY Act vote. The crypto tax bill now awaits the next stage in the House.The legislative process will continueThe committee’s favorable report opens the path to a full House vote. The committee statement did not provide a date for that vote.If enacted, the bill could change tax processes for U.S. investors and crypto platforms. Existing rules will remain in effect until new provisions take effect.The committee vote shows crypto taxation moving forward as a separate legislative issue. The bill’s practical impact will become clearer as the House process and effective dates emerge.
CLARITY Act Stalls in Senate: $633 Million in Crypto Positions Liquidated
The CLARITY Act, a bill aimed at establishing comprehensive rules for the US cryptocurrency market, failed to advance in a key Senate vote. A procedural motion to move the bill forward received 49 votes in favor and 50 against, falling short of the 60 votes required.Bitcoin fell toward $76,000 following the decision. Ethereum approached $2,400, while XRP lost nearly 10%. JrKripto’s liquidation data showed $633.1 million in positions liquidated over the preceding 24 hours.The vote did not determine whether the bill would become law. Senators voted on a procedural step needed to advance its consideration. When that motion failed, the bill stalled in the Senate. According to AP, all Democrats and four Republican senators voted against advancing it.Why did the CLARITY Act stall?The CLARITY Act aims to clarify when digital assets should be treated as securities or commodities. It also proposes a framework for dividing oversight of the crypto market between the SEC and the CFTC.Negotiations stalled over rules governing public officials’ financial interests in crypto businesses. Democratic senators argued that the bill’s ethics provisions did not do enough to address the crypto interests of President Donald Trump and his family.Republicans revised the text before the vote. The changes would have given state attorneys general more authority to enforce the ethics provisions, but they did not secure enough support. Banks’ objections to stablecoin rewards were another point of disagreement. The Senate could hold another procedural vote, although no date has been set.Bitcoin, Ethereum and XRP declineFollowing the vote, Bitcoin fell roughly 3% and traded around $76,000. Ethereum dropped about 5% to $2,410. XRP lost nearly 10%, falling toward $1.30.Solana traded just above $97, while DOGE declined about 5%. The price moves showed that selling had spread across major cryptocurrencies.Bitcoin had already been falling before the vote, so the entire decline cannot be attributed to the result. Still, the bill’s failure to advance added uncertainty for a market awaiting clearer regulation.JrKripto data shows $633 million in liquidationsAccording to JrKripto’s liquidation data, $633.1 million in crypto positions were liquidated over the preceding 24 hours. Long positions accounted for about $525.4 million, while short positions accounted for $107.7 million. Longs made up approximately 83% of the total. The data also showed $59.6 million in liquidations over the preceding 12 hours, $16.7 million over four hours and $2.1 million over one hour.Traders open long positions when they expect prices to rise. If prices move against them and their collateral becomes insufficient, exchanges may automatically close their leveraged positions. The concentration of long liquidations indicates that traders positioned for gains were hit harder during the decline.The 24-hour figure includes trading before the Senate vote, so it should not be read as the amount liquidated solely after the result. With the bill’s path forward uncertain, the market will watch for regulatory steps from the SEC and CFTC, as well as the Fed’s interest rate decision.
