Regulatory Landscape & Key Questions - The industry awaits clarity on whether banks can issue tokenized deposits under the GENIUS Act [1] - Uncertainty persists regarding the capital reserve requirements for banks holding stablecoins [1] - Non-bank entities, especially fintech firms in the crypto space, are lagging in meeting banking compliance standards [1] - Regulators, such as the Federal Reserve, are expected to foster a level playing field, addressing potential competitive disadvantages for banks [1] - Ambiguity remains regarding whether a recipient customer must complete onboarding at the originating bank when tokenized deposits are transferred between banks [1] Potential Developments & Challenges - Information sharing between banks, currently not possible, could significantly benefit community banks burdened by high compliance costs [1]

Industry Regulation - Heavy-handed regulation of a flourishing industry could backfire [1]

Regulatory Landscape & Legislation - The Clarity Act aims to establish a clear regulatory framework for crypto, fostering innovation and protecting consumers by addressing the shortcomings of the current US regulatory environment [2][5] - The Clarity Act seeks to solve the problem of companies moving offshore due to a lack of consumer protection and hindered innovation by encouraging innovation and development in the United States [4][5] - The Genius Act, a stable coin regulation bill, has been signed into law, marking a significant milestone and a watershed moment for crypto regulation in the US [6][8] - The industry believes the US is catching up in crypto regulation after four challenging years, with companies desiring to innovate and develop within the US regulatory framework [6][7] - The Senate needs to act quickly on the Clarity Act, as the House-approved framework has garnered broad support and addresses key regulatory needs [11][12] Market Impact & Investment - The Clarity Act, combined with the Genius Act, is expected to drive significant investment in the United States, benefiting workers, consumers, and the entire crypto industry [8][9] - The stable coin market is recognized as significant, with potential for domestic payment rail improvements and global impact, especially in regions with less confidence in national currencies [20][21] - Regulated entities, such as US banks, are now able to enter the stable coin market, offering US dollar-backed stable coins under a US regulatory framework, which is beneficial for US dollar dominance [21][22] - The industry anticipates smaller players will be able to enter the crypto market and innovate without the burden of high legal costs, fostering a true democratization of the internet (Web3) [36][37] Tax Policy & Oversight - The current tax framework for crypto is considered poorly structured, and the industry suggests taxing crypto upon the realization of gains, similar to the taxation of mined gold [31][32] - Congress will oversee the rulemaking process by regulators like the SEC and CFTC to ensure rules align with legislative goals and intent, especially after the Supreme Court's decision on the chevron doctrine [29][30]

Regulatory Landscape - From January 1, 2026, EU crypto exchanges and non-EU platforms serving EU clients must share transaction details with local tax authorities under DAC8 [1] - DAC8 requires exchanges (RCASPs) to report trades, transfers, wallet movements, and values [1] - CARF adds global alignment, user tax IDs, residence, transaction type, fair-value, and even wallet transfers to disclosure requirements [1] - EU regulators could classify any identifiable operator, dev team, or front-end providing access to DeFi protocols as a CASP/RCASP, requiring reporting [3] DeFi Implications - Fully decentralized DeFi protocols (just code, no operator) cannot file CASP/DAC8 reports, meaning they can't share user information with the government [2] - DeFi is maturing into on-chain finance, but regulators will likely focus on the central authority often embodied by 'Labs' or 'Foundations' [2] Transparency and Compliance - The industry is moving towards full transparency, requiring individuals to ensure their tax documents are in order [2]

Always supporting regulators and law enforcement to weed out bad actors! https://t.co/ZLinjzsDIc ...

China said it plans to introduce new rules for internet platform pricing to ensure a transparent and predictable mechanism https://t.co/YGmDCTN2lD ...

Industry Trends & Partnerships - Robin Hood partnered with Koshi to launch sports betting prediction markets focused on the NFL and college football [1] - FanDuel is partnering with CME Group on events contracts tied to the S&P 500, gold and oil prices, and economic indicators [1] - Prediction markets are providing a backdoor for sports betting in states like California and Texas that do not have legal licensed state sports betting [7] Regulatory Concerns & Public Health - The rapid expansion of gambling in the US over the last seven years, with few guardrails, may be causing unnecessary harm [3][4] - 50% of men between 18 and 49 have a sports betting app, and 60% of high schoolers have gambled within the last year [5] - States are claiming that Koshi and Robin Hood are offering gambling and should be responsive to state gambling regulators, not just the CFTC [9] - The American Gaming Association CEO believes that if it looks like a bet and acts like a bet, then it is a bet and should be regulated [11] Potential Solutions & Industry Self-Regulation - Adding friction to gambling platforms, such as limiting deposits and making withdrawals easier, could help prevent problem gambling [17][18] - The industry could self-regulate, but there is currently no incentive to do so [25] - Industry standards may be more effective than congressional mandates, but the threat of congressional regulation could incentivize self-regulation [26]

Regulatory Environment - The cryptocurrency industry is gaining momentum due to Trump's clarity push and discussions surrounding the Clarity Act [1] - The regulatory wave is providing structural support for XRP and altcoins [1] Market Outlook - The cryptocurrency market demonstrates resilience with strong structural underpinnings [1]

India's move to tackle the harm caused by betting apps will have unintended consequences, writes @andymukherjee70 (via @opinion) https://t.co/DUzGSi934S ...

RT The Block Podcasts (@TheBlockPods)ICYMI: CoinFund investor breaks down Trump’s crypto executive order and SEC’s Project Crypto@coinfund_io investor @kavancane joined @imyoungsparks and @Timccopeland to discuss discuss the evolving U.S. regulatory stance on crypto, including the SEC’s Project Crypto and rulings on liquid staking and more!OUTLINE00:00 - Introduction00:42 - Crypto in 401Ks and U.S. regulatory shifts03:42 - Roman Storm trial04:47 - Explosion of perpetuals trading06:18 - Exchange competition0 ...