The SEC updated its September 25 FAQ on token buybacks to explicitly require the absence of centralized control, adding a decentralization condition beyond just network functionality. The guidance clarifies that buyback announcements on functional, decentralized networks don't automatically make tokens securities.
The SEC's Division of Corporation Finance released updated FAQs stating that token buybacks on working networks, liquid staking tokens, and funding network upgrades don't automatically make crypto assets securities. The guidance provides clarity on when digital assets may qualify as commodities rather than securities.
The European Banking Authority has urged the European Commission to bring crypto lending and borrowing services under the EU's Markets in Crypto-Assets (MiCA) regulation. The EBA's recommendations include potential leverage caps, certification requirements for firms connecting users to DeFi lending platforms, and possible restrictions on facilitating lending with unauthorized stablecoins.
The CFTC issued a staff advisory stating that prediction market contracts settling on whether a named person says certain words should be presumed readily susceptible to manipulation, requiring exchanges to meet a higher regulatory bar.
South Korean authorities have booked 26 users of the crypto prediction market Polymarket on suspicion of illegal gambling involving 17.6 billion won ($12.7 million), with 18 cases already referred to prosecutors. Police identified the users through public blockchain transaction records.
Federal regulators have launched at least three previously unreported investigations into suspicious trading activity on Polymarket, including trades related to Biden pardons, Iran war predictions, and potential insider trading at Google. A cluster of accounts also won big on companies audited by KPMG.
Sen. Cynthia Lummis released revised text of the Clarity Act on Thursday with changes to DeFi and credit union provisions as the Senate prepares for a procedural vote on the crypto regulation bill next week. The crypto industry has escalated lobbying efforts ahead of the September 15 vote.
Compound Foundation opened a permissioned lending market on September 8 that restricts access to institutional borrowers only, effectively splitting the protocol into separate retail and institutional liquidity pools with loan-to-value ratios up to 87%.
A new proposal for the Aave decentralized lending protocol would grant bounded emergency roles with one-way safety controls, allowing markets to be frozen but not unfrozen. The current Risk Steward release cannot yet invoke these emergency safety calls.
Connecticut's attorney general issued a consumer alert about unregulated offshore DeFi trading platforms after a state resident lost access to $200,000 deposited following a deceptive solicitation and was unable to recover the funds.
Hyperliquid is testing HIP-3, an upgrade that introduces optional permissioned markets using on-chain allowlists controlled by independent deployers. The venue-scoped controls allow operators to restrict trading access to their own markets without affecting existing permissionless markets.
Two Thai businessmen filed a lawsuit against Tether in U.S. District Court for the Southern District of New York, alleging the stablecoin issuer froze approximately $42.4 million in USDT across 10 Ethereum addresses four months before any court authorization. The plaintiffs are challenging Tether's authority to blacklist their funds and seeking to recover the frozen assets.
South Korea's National Tax Service announced it will introduce commercial cryptocurrency tracing software used by domestic and international investigative agencies to prepare for taxing income generated through private crypto transactions starting in 2027.
A federal judge has postponed Roman Storm's retrial to April 26, 2027, as the court weighs his pending motion for acquittal following his conviction related to the Tornado Cash cryptocurrency mixer. U.S. District Judge Katherine Polk Failla ordered the delay to allow time to consider the motion.
The American Bankers Association is lobbying for regulations requiring stablecoin users to open accounts before redemption and seeking changes to stablecoin reward provisions in the Clarity Act, citing concerns about community bank deposits despite evidence showing deposit growth.
The Blockchain Association filed a letter supporting proposed GENIUS Act regulations while asking five U.S. agencies to clarify that customer identification requirements should apply only to direct issuer relationships, not peer-to-peer transfers or secondary markets. The industry group argues this approach would reduce compliance costs for stablecoin issuers while maintaining regulatory oversight.
The Hyperliquid Policy Center has submitted a formal request to the SEC and CFTC calling for harmonized classification standards for perpetual contracts based on economic structure rather than underlying asset type. The advocacy group argues that clearer, unified rules are needed as regulators consider how these derivatives products should be classified under US law.
South Korean authorities have clarified that their planned 22% digital asset tax, set to take effect January 1, 2027, will cover cryptocurrency income from private wallets and overseas exchanges, not just domestic platforms. The expanded tax regime will require enhanced information gathering from international platforms.
President Trump indicated US efforts to bring the Hyperliquid crypto platform under domestic regulation, while evidence emerged that Kraken may be testing a compliant decentralized exchange on Hyperliquid's testnet. The developments sparked significant trading activity in crypto markets.
President Trump announced at a White House crypto meeting that CFTC Chair Michael Selig is working to bring the offshore perpetuals platform Hyperliquid into the US legally, sending the HYPE token up more than 20% and sparking debate over regulatory pathways for decentralized exchanges.
Injective has obtained SEC transfer agent registration through its affiliate Injective Institutional Services, joining a small group of crypto organizations with regulated securities infrastructure capabilities. The registration enables the blockchain platform to provide regulated securities ownership recordkeeping and transfer services.
South Korea's communications regulator has ordered internet providers to block access to Polymarket, ruling that the crypto-based prediction market violates Korean gambling laws despite its decentralized settlement structure. The country joins more than 30 jurisdictions restricting access to the platform.
Roman Storm, convicted co-founder of cryptocurrency privacy protocol Tornado Cash, is challenging his conviction by arguing that Google and OpenAI should face similar liability since their AI tools are also used by the same North Korean operatives cited in the government's case against him.
The U.S. Commodity Futures Trading Commission issued new guidance warning prediction markets about incentives programs, while New York City Council Speaker Julie Menin launched a probe into platforms like Kalshi and Polymarket over alleged predatory marketing tactics targeting young traders. The investigations focus on promotional practices including cash vouchers, reward points, and influencer marketing.
The Financial Action Task Force has unveiled new anti-money laundering criteria designed to evaluate whether decentralized finance platforms truly qualify as "decentralized," potentially subjecting them to stricter regulatory oversight.
Oasis Pro Markets, a subsidiary of Ondo Finance, has secured regulatory authorization from the SEC and FINRA to offer tokenized equities, ETFs, mutual funds, and IPO securities to U.S. investors. The approval marks a significant regulatory milestone for tokenized securities in the United States.
Polymarket announced it will legally challenge France's decision to block access to its website nationwide, arguing the regulator wrongly treated an information source as illegal gambling despite trading already being disabled since November 2024.
SEC Commissioner Hester Peirce issued a public statement saying that crypto vaults and onchain lending strategies may fall under federal securities laws depending on their specific structure and activities. She cautioned that moving activities already within the scope of federal securities laws onchain does not remove them from those laws.
An opinion article in China's Supreme People's Procuratorate newspaper outlined a framework for prosecuting crypto money laundering, including presuming criminal intent when mixers or privacy coins are used.
Polymarket's affiliated entity filed with the National Futures Association on July 3 to offer margin trading in the US, though activation still requires CFTC approval. The move would allow users to open positions with a fraction of capital required upfront.
The U.S. Securities and Exchange Commission is developing an 'innovation exemption' policy that would permit crypto companies to offer blockchain-based versions of publicly traded stocks without full traditional broker licensing requirements. The move could enable 24/7 trading of tokenized equities and represents a potential major shift in U.S. equity markets.
The Commodity Futures Trading Commission opened public comment on proposed rules for prediction markets that would prohibit contracts dependent on war, assassination, or the ouster of foreign leaders, while also banning certain sports prop bets.
Crypto venture firm Paradigm and DeFi advocacy group Hyperliquid Policy Center jointly submitted a letter to U.S. Treasury urging FinCEN and OFAC to narrow proposed anti-money laundering compliance rules for stablecoins, warning that overly broad obligations could negatively impact decentralized finance protocols.
The UK's Financial Conduct Authority has listed Hyperliquid and Hyper Foundation as unauthorized firms, while CME's chief warned that crypto perpetuals could be a 'disaster waiting to happen,' highlighting growing regulatory concerns about the platform amid its Wall Street expansion.
House Republicans have released seven discussion drafts proposing sweeping reforms to digital asset taxation in the US, including exemptions for staking rewards and a $10,000 threshold. The bills are set to be discussed at a Tuesday Ways and Means Committee hearing.
ICE CEO Jeffrey Sprecher disclosed at the Bernstein conference that the NYSE parent company held multiple discussions with Hyperliquid to evaluate the on-chain perpetual futures market, describing it as larger than Nasdaq and seeking a 'level playing field' for the space.
CME Group and Intercontinental Exchange (NYSE parent) are urging U.S. regulators to increase oversight of decentralized exchange Hyperliquid, citing concerns over market manipulation and sanctions exposure. The move represents traditional exchanges seeking regulatory action against DeFi competitors.
A New York court has ordered Arbitrum DAO to freeze $71 million in ETH connected to North Korean hackers, with terrorism creditors moving to seize the Kelp DAO funds ahead of a DeFi United vote. The case highlights compliance challenges for decentralized protocols.
Coinbase and Senate leaders finalized a deal on stablecoin reward provisions, resolving a standoff with the banking lobby. The compromise prohibits rewards that mimic bank deposits while allowing 'bona fide' transactions, clearing a key obstacle for the CLARITY Act's advancement.
Crypto exchange Gemini obtained a DCO license from the CFTC, allowing it to act as an in-house clearinghouse for derivatives and prediction markets, positioning it to compete with Kalshi and Polymarket.
Acting U.S. Attorney General Todd Blanche stated that developers will no longer be investigated or charged unless they knowingly help third parties commit crimes, signaling a fundamental shift in DOJ's approach to prosecuting crypto developers.
The DeFi Education Fund, joined by a16z crypto, Uniswap, Chainlink, Paradigm, Solana Policy Institute, and 30+ other organizations, formally petitioned the SEC to lock in recent decentralized finance interface guidance into official rulemaking.
CFTC Chairman Michael Selig faced intense bipartisan questioning from House lawmakers over the agency's approach to prediction markets, sports betting contracts, and oversight of crypto derivatives platform Hyperliquid amid staffing concerns.
Treasury's FinCEN and OFAC jointly proposed a rule on April 10, 2026, formally treating stablecoin issuers as financial institutions under the Bank Secrecy Act. Issuers must implement full AML/CFT programs with customer due diligence, suspicious activity reporting, and the technical capability to block or freeze illicit on-chain transactions, alongside mandatory OFAC sanctions screening.
