Crypto Regulation

The U.S. Securities and Exchange Commission has proposed new rules and amendments creating a tailored framework for registered investment advisers and regulated funds to custody certain crypto assets. The October 1 proposal would permit advisers to hold eligible client crypto assets themselves in limited circumstances when no permitted custodian is available. It would also create a route for state-chartered trust companies to serve as custodians for client and regulated fund crypto assets. SEC Chair Paul Atkins described the framework as…

European regulators are examining whether Binance has relied too broadly on MiCA’s reverse solicitation exemption to continue serving some EU customers without a bloc-wide crypto license. ESMA and national authorities in France, Germany and Greece are reviewing Binance’s use of the exemption, with some regulators requesting information from the exchange, people familiar with the inquiries told the Financial Times. Enforcement action, including fines, could follow if authorities conclude the conditions were not met. Binance enters the review without a MiCA…

Crypto held in wallets where the owner controls the private keys does not fall under Spain's Modelo 721 foreign-asset reporting requirement, drawing a clear tax-reporting line between self-custody and assets controlled by foreign custodians. The exemption applies whether the assets sit in a hot wallet or cold wallet. What determines the reporting obligation is who controls the private keys, not whether the wallet connects to the internet or what type of device stores the credentials. Crypto only enters the Modelo…

China’s Ministry of State Security has warned that cryptocurrency does not provide criminals with true anonymity, pointing to permanent blockchain records and offchain data that can connect wallet activity with real-world identities. Crypto’s perceived anonymity is only superficial, the ministry said in a September 28 security warning republished from its official WeChat account. Public blockchain transactions leave an enduring onchain trail, while wallet addresses can be tied to users by combining transaction analysis with exchange records, device identifiers, IP information…

Brazil will require regulated financial institutions to report crypto transfers worth at least the equivalent of $10,000 when funds move to or from self-custody wallets, extending automatic anti-money-laundering reporting to transactions crossing between supervised platforms and user-controlled addresses. Resolution BCB No. 588, issued September 23, adds transfers of virtual assets to or from self-custodied wallets worth $10,000 or more to the operations that must be specifically communicated to the Conselho de Controle de Atividades Financeiras, or Coaf. The rule takes…

The U.S. government is considering joint ventures with private companies to promote dollar-backed stablecoins overseas, extending a policy strategy that treats digital dollars as a tool for preserving the dollar's global reserve role and increasing demand for U.S. government debt. The proposed initiative could involve the Treasury Department, State Department and U.S. International Development Finance Corporation, with federal support directed toward stablecoin projects in foreign markets. No participating companies, funding structure or launch timetable have been identified, and the discussions…

U.S. federal prosecutors are investigating whether Binance failed to prevent trading that violated sanctions on Iran, expanding scrutiny of the exchange's compliance controls nearly three years after its $4.3 billion criminal resolution with the Justice Department. The investigation is being handled by the Manhattan U.S. Attorney's Office, with the Justice Department's Criminal Division in Washington also involved. Authorities are examining whether Binance knowingly permitted the activity, Bloomberg reported, citing people familiar with the matter. The latest disclosure provides additional detail…

The House Financial Services Committee advanced legislation that would place federally owned Bitcoin under a statutory Treasury reserve, approving the American Reserve Modernization Act by 28-21 on September 16. H.R. 8957, introduced by Republican Rep. Nick Begich with Democratic co-lead Jared Golden, would establish a Strategic Bitcoin Reserve and a separate Digital Asset Stockpile within the Treasury. The committee adopted a substitute amendment before reporting the bill favorably, moving the Bitcoin reserve proposal beyond its initial committee stage. Treasury Would…

The U.S. Senate failed to advance the Digital Asset Market Clarity Act on Tuesday after a 49-50 cloture vote fell short of the 60 votes required to begin consideration of the legislation. H.R. 3633 would establish a federal market-structure framework for digital assets, dividing regulatory responsibilities between the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC). The vote was procedural rather than final passage, leaving the bill stalled but still available for another attempt. Four Republicans Join…