Regulation & Policy

The U.S. Commodity Futures Trading Commission (CFTC) has established an "Innovation Task Force" aimed at integrating regulation of AI, crypto assets, and prediction markets, while coordinating asset classification with the Securities and Exchange Commission (SEC). The task force will establish clear regulatory pathways, reduce compliance costs for enterprises, enhance regulatory predictability, and address challenges in the rapidly growing digital financial market.

US senators announced a bipartisan agreement on the principles of the CLARITY Act between cryptocurrency businesses and banking industry, establishing boundaries on what stablecoin yield mechanisms are prohibited versus permitted—banning passive income while allowing activity-based rewards tied to user behavior. This measure aims to protect traditional deposit operations while preserving innovation space for crypto platforms. Regulators' definition of "activity" is expected to become the main point of contention, with specific rules anticipated within one year.

U.S. senators are proposing legislation to comprehensively ban sports events and casino game contracts on CFTC-regulated prediction markets, targeting Kalshi and Polymarket. The dispute centers on federal versus state jurisdiction. Despite facing regulatory pressure, prediction markets remain favored by capital, with MLB choosing to partner with Polymarket to strengthen oversight.

Circle (CRCL) stock price plummeted nearly 20% following the introduction of the CLARITY Act draft, which proposes restrictions on stablecoin passive yields. The legislation aims to prevent stablecoin issuers from offering interest similar to bank deposits, which could impact Circle's profit model and market competitiveness. Analysts point out that the current decline may represent market overreaction, as USDC circulation continues to grow and the legislation remains in the negotiation phase with uncertain outcomes.

Delaware lawmakers propose the Delaware Payment Stablecoins Act to establish a regulatory framework for payment stablecoin issuers, aligning with the federal GENIUS Act. The bill mandates licensing, reserve requirements, and compliance with federal standards to enhance consumer protection and attract digital asset firms.

Delaware State legislators have proposed the Delaware Payment Stablecoin Act (SB19), which aims to establish a state-level regulatory framework for stablecoin issuance. The legislation requires issuers to obtain licenses, maintain 1:1 reserve ratios, and conduct regular information disclosures. The bill works in coordination with federal regulations, positioning stablecoins as payment instruments to attract digital asset projects to the state, potentially making Delaware a significant registration hub.

The crypto industry reviewed for the first time a revised version of the Senate's Digital Asset Market Clarity Act during a closed-door meeting on Capitol Hill in Washington, arguing that the stablecoin yield provisions are too narrow. The new language prohibits earning yield from holding stablecoins and restricts rewards similar to bank deposits. The bill faces obstacles in its advancement, with various parties needing to reach consensus on DeFi regulation and prohibitions on officials profiting from the crypto industry.

The crypto industry reviewed for the first time a revised version of the Senate's Digital Asset Market Clarity Act during a closed-door meeting on Capitol Hill in Washington, arguing that the stablecoin yield provisions are too narrow. The new language prohibits earning yield from holding stablecoins and restricts rewards similar to bank deposits. The bill faces obstacles in its advancement, with various parties needing to reach consensus on DeFi regulation and prohibitions on officials profiting from the crypto industry.

House Republicans rejected the Senate's legislative deal proposal, which attempted to combine a community bank deregulation bill with a cryptocurrency bill in exchange for support for a housing affordability bill. The House Financial Services Committee expressed skepticism about this approach and hopes that the Senate will also adopt the House's housing proposal.

The CFTC has established the Innovation Task Force (ITF) to create a clear legal framework for emerging derivative markets including crypto and AI. Led by Michael J. Passalacqua, the ITF aims to ensure responsible innovation while addressing regulatory challenges and public concerns about prediction markets and insider trading.

Jinse Finance reported that CFTC Chair Michael S. Selig announced the establishment of an Innovation Working Group focusing on crypto assets, blockchain, artificial intelligence, and other fields, aimed at establishing clear regulatory rules for the U.S. derivatives market and coordinating with relevant federal agencies.

The CFTC is establishing an Innovation Task Force to enhance its crypto and blockchain regulation, led by Michael Passalacqua. The initiative aims to provide a platform for dialogue among innovators on crypto, AI, and prediction markets.

European Central Bank Executive Board member Cipollone pointed out that stablecoins and tokenized deposits need to be anchored on tokenized central bank money for settlement to achieve scalability in tokenized financial markets. The DLT settlement project Pontes, expected to launch in 2026, and the Appia plan before 2028 will advance the construction of Europe's tokenized finance ecosystem. He warned of the risks of lacking a unified legal framework.

U.S. CFTC Chair Michael S. Selig announced the establishment of an "Innovation Task Force" that will work with the Innovation Advisory Committee to develop regulatory frameworks for crypto assets, AI automated systems, and prediction markets to promote fintech innovation and ensure U.S. market participants are not excluded. The task force will coordinate with the SEC's crypto task force to address overlapping regulatory issues.

Golden Finance reports that the General Office of the CPC Central Committee and the General Office of the State Council have issued the "Regulations on the Integrity and Clean Conduct of Leaders of State-Owned Enterprises," which stipulate that leaders of state-owned enterprises are prohibited from using their authority or influence for personal gain, and are not allowed to accept or solicit gifts, cash gifts, securities, virtual currencies, or other property from affiliated enterprises of their own company, enterprises with business relations to their company and its invested enterprises, as well as from management and service recipients, nor to agree to accept such items after resignation or retirement.

Tether plans to undergo its first full audit by a Big Four accounting firm to verify its $192 billion in reserves backing USDT. This move aims to ensure compliance with U.S. regulations under the GENIUS Act, although the specific auditing firm has not been disclosed.

Taiwan's virtual asset regulation has reached a new milestone, with the Virtual Currency Association rebranding as the Virtual Asset Service Industry Association and establishing three specialized committees to strengthen compliance and governance. The association urges the government to set reasonable transition periods and compliance guidance in the legislative process of the "Virtual Asset Service Law" to promote industry development and international alignment.

The U.S. Commodity Futures Trading Commission has established an "Innovation Task Force" aimed at developing regulatory rules for new products and technologies in the derivatives market, with a focus on crypto assets, artificial intelligence, and prediction markets, led by the Chairman's senior advisor.