regulatory

According to Bloomberg, the stablecoin payment company RedotPay has postponed its plans for an IPO in the United States. Sources reveal that the company previously aimed to complete its IPO as early as this year, but the listing date may now be delayed until next year or even later. RedotPay needs to obtain regulatory approval from the country where it operates before advancing its IPO, and the company is also facing related legal issues that need to be addressed.

According to reports from American media, the New York City Council is investigating the advertising practices of the four major prediction market platforms, opening a new battleground for the legal controversies facing this rapidly growing industry.New York City Council Speaker Julie Menin sent an inquiry letter containing numerous questions to Polymarket, Kalshi, Coinbase Global Inc., and the prediction market platform Titan under Gemini Space Station, as part of a so-called legislative investigation aimed at examining whether existing city laws are sufficient to protect residents from false or deceptive marketing by these emerging platforms.The City Council is also studying the development of relevant policies to address products that may lead users to "engage in compulsive betting on event contracts." In a letter to Polymarket, the City Council stated: "The City Council is investigating allegations related to Polymarket, and more importantly, is examining the prevalence of similar marketing practices in the broader prediction market industry, as well as the associated social harms caused to New York City residents."

Chairman Paul S. Atkins of the U.S. Securities and Exchange Commission (SEC) wrote to Robert Walley, Chairman of the Consolidated Audit Trail (CAT) Operating Committee, indicating that the SEC plans to undertake a comprehensive reform of the CAT system, including adjustments to its governance structure, funding sources, and operational model.Atkins stated that during his tenure, the SEC has significantly reduced the annual operating costs of CAT by issuing exemptions and approving amendments to the CAT NMS plan, and has eliminated the requirement to report personally identifiable information (PII) to the CAT system.These reforms have lowered system costs and the scope of data collection, but CAT still faces fundamental issues regarding costs, governance, and funding mechanisms. To address these issues, the SEC released a concept request for comments on April 16, 2026, to conduct a comprehensive review of CAT and other audit trail systems and data sources used in the regulation of U.S. securities markets.The SEC indicated that it has received hundreds of feedback comments, with one core consensus being that investors and market participants want the SEC to take more responsibility for the management and funding arrangements of CAT.Atkins stated that he has asked SEC staff to propose deep reforms for CAT, including: 1. Exploring new funding sources for CAT, including the use of congressional appropriations and transaction fees under Section 31 of the Securities Exchange Act; 2. Drafting rule proposals that, if approved, would repeal Rule 613 and require exchanges, FINRA, and broker-dealers to continue using the existing CAT infrastructure and reporting standards to submit CAT data directly to the SEC or its designated agency; 3. Assessing the internal resource needs of the SEC to prepare for the SEC's future assumption of governance responsibilities for CAT.The SEC expects that this reform will involve multiple stages and will need to be advanced simultaneously, with the overall transition potentially lasting until the end of 2027.

Web3 security company CertiK released the report "Intel3D: PSAV and Brazil's New Security Standards." The article points out that as the deadline for authorization applications set by the Central Bank of Brazil (October 30 of this year) approaches, local virtual asset service providers (PSAV) are facing a round of concentrated compliance adjustments, and compliance and security certifications issued by independent third parties are transitioning from industry best practices to important requirements for market access.According to the report, CertiK is currently conducting independent external audits based on the Central Bank of Brazil's Normative Instruction No. 701. As one of the markets with the highest adoption of crypto assets globally, the impact of this regulatory transformation in Brazil may far exceed the local market. The report shows that Brazil currently ranks fifth in the world for actual crypto asset adoption rates. From June 2024 to June 2025, the on-chain asset value received by Brazil reached $318.8 billion, accounting for nearly one-third of on-chain activity in South America during the same period. Stablecoins have become an important infrastructure in the local digital asset market, accounting for about 80% of the trading volume in crypto asset transactions reported to the Federal Revenue of Brazil.

According to Bloomberg, the U.S. Securities and Exchange Commission (SEC) recently issued an internal letter that explicitly exempts asset-backed securities (ABS) related to AI data centers from the core investor protection regulations established after the 2008 financial crisis, including the "risk retention" requirement that issuers retain a portion of the debt. The SEC determined that data centers are not financial assets that are liquidated over time, and therefore the securities linked to them should not be subject to the same regulatory constraints as ABS related to auto loans or mortgage loans.Although this move is not an official amendment to the law, the substantial impact should not be underestimated, as companies have previously adhered to relevant regulations out of compliance prudence. In terms of market size, the annual issuance of data center ABS has surged from $2.4 billion in 2020 to $15.5 billion in 2025, growing more than sixfold over five years, with the potential to set a new historical high in 2026.

The South African National Treasury and the South African Reserve Bank (SARB) have released a draft regulation for cross-border transfers of crypto assets. Farzam Ehsani, co-founder and CEO of the crypto asset trading platform VALR, stated that unless key terms are significantly modified, the relevant framework could harm the domestic digital asset industry and drive funds overseas.The draft allows individual residents to transfer crypto assets abroad within the existing foreign exchange limits but restricts companies from engaging in cross-border crypto asset transactions and categorizes some deposits from private non-custodial wallets as unacceptable transfers for local crypto asset service providers (CASP). Ehsani believes this could prompt businesses and retail investors to turn to overseas platforms.Ehsani pointed out that prohibiting regulated entities from processing legitimate business transactions, especially cross-border stablecoin payments, could push transactions underground or abroad, thereby undermining the visibility and monitoring capabilities that regulators hope to achieve. The South African National Treasury and SARB have opened a public consultation, with the feedback deadline set for September 30.

The U.S. Senate has postponed the vote on the CLARITY Act until after the summer recess, increasing uncertainty about the bill's passage in the short term.The CLARITY Act had previously received bipartisan support in the House of Representatives and aims to establish a federal regulatory framework for digital assets, clarify the responsibilities of different regulatory agencies, and promote the further integration of crypto assets into the U.S. financial system.North Carolina Republican Senator Thom Tillis stated that with the vote postponed until September, the probability of the bill's final passage "may have decreased by 50%." Wyoming Republican Senator Cynthia Lummis, who is responsible for pushing the negotiations, indicated that discussions have been ongoing for nearly 11 months, the bill text has increased by about 300 pages, and it has responded to numerous amendment requests from Democrats, and it should now enter the voting phase.Currently, Democrats still oppose the existing version, with the main disagreement centered on the restrictions on government officials' interests in crypto assets. Democrats believe that the current version does not adequately limit federal officials' investments and promotion of crypto assets, nor does it require relevant personnel to fully divest from related holdings, while also seeking to grant state attorneys general stronger enforcement powers.Some Democratic and Republican lawmakers had previously pushed for the inclusion of stricter ethical oversight provisions, but negotiations are still ongoing. Democrats are particularly concerned about the connections between Trump and his family with crypto projects like World Liberty Financial.Previously, the crypto industry hoped the Senate could advance procedural voting before the summer recess to adjust political investments during the 2026 midterm elections based on legislative progress. Data shows that the crypto industry's main political action committee, Fairshake, held nearly $200 million in cash reserves at the beginning of this cycle.

Retail investors in South Korea are shifting their focus from the growth story of asset management companies to market stability issues in the eyes of regulators, surrounding high-leverage trading of Samsung Electronics and SK Hynix.Since their debut on May 27, the first batch of single-stock leveraged products in South Korea has quickly become one of the most crowded trades in the current semiconductor rally of the Korean stock market. Sixteen single-stock ETFs and two ETNs designed around Samsung Electronics and SK Hynix allow investors to make directional bets of about 2 times on a single stock. The launch of these products coincided with the warming of the AI storage cycle, leading to a surge of retail funds into the market, pushing the total assets of the Korean ETF market to a historical high at one point.Winners on the fee side quickly emerged. Estimated by net asset size and fee rates, these single-stock leveraged ETFs generated nearly 3.7 billion won in management fees after about two months of operation. Samsung Asset Management took the lion's share due to the scale advantage and higher fee rates of its KODEX products, while Future Asset offered lower fees to gain market share. Early data from Korean media has shown that Samsung and Future Asset together account for over 90% of the net assets of such products, with liquidity further concentrating on leading products.However, this fee feast has also come with significant side effects. In mid-July, the South Korean Financial Services Commission stated that the market value and trading volume of single-stock leveraged products rose rapidly after their launch, with the weight of Samsung Electronics and SK Hynix in KOSPI once reaching 52%. Regulators also pointed out that the volatility of global storage stocks has significantly increased, and the high volatility of individual stocks like SK Hynix and Samsung Electronics, combined with product rebalancing trades, could amplify market shocks.Subsequently, South Korean authorities accelerated the tightening of regulations. Starting from July 31, the minimum margin requirement for individual investors investing in such products was raised from 10 million won to 30 million won, and cash was required to meet this requirement, with alternative securities no longer accepted; regulators also suspended the launch of related new products, restricted advertising, and strengthened spread management and investor education.There are signs that trading enthusiasm has cooled. Data from the Korean Exchange shows that after the introduction of new regulations, the daily trading volume of the 16 related single-stock leveraged/inverse ETFs dropped from about 10 to 12 trillion won (peaking at 15 to 20 trillion won) to around 1 trillion won (on August 3-4), and on August 5, it fell to as low as 919.8 billion won (first time below 1 trillion). There has been a slight rebound recently, with the trading volume of the 16 related ETFs at about 7.45 trillion won on July 27.

According to CoinDesk, U.S. Senator Elizabeth Warren stated that she supports pushing for cryptocurrency-related legislation but does not support the current CLARITY Act, believing that the bill fails to adequately address key issues such as corruption, consumer protection, national security, and economic risks.Warren pointed out that the crypto industry needs a clear regulatory framework, but the regulatory plan must ensure investor rights and the safety of the financial system. She believes that the CLARITY Act is lacking in preventing conflicts of interest, protecting consumers, and reducing potential systemic risks.The CLARITY Act aims to further clarify the division of regulatory responsibilities for the U.S. digital asset market, establishing a clearer legal framework for cryptocurrency asset trading, issuance, and market participants. Supporters believe that the bill helps enhance industry certainty and promote innovation.However, some Democratic lawmakers, including Warren, have previously expressed concerns about cryptocurrency regulatory legislation, arguing that some proposals could weaken the power of regulatory agencies and create regulatory arbitrage opportunities for large crypto companies.Warren has long taken a cautious stance on crypto assets, focusing on consumer protection, financial stability, and the risks of illegal activities in the crypto market. This statement indicates that U.S. cryptocurrency regulatory legislation still faces a struggle between the two parties and different interest groups.

Michael Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), wrote in The Economist that the global derivatives market is entering a new stage of development, where financial innovation needs to lead, rather than introduce regulatory models that may restrict market development.Michael Selig pointed out that for decades, derivatives (including financial contracts such as futures, options, and swaps) have been important tools for businesses, farmers, investors, and financial institutions to manage risk and optimize capital allocation. Today, the nominal value of the global derivatives market has exceeded $1.2 quadrillion, with nearly half of the market regulated by the CFTC.He stated that the United States' leadership in the derivatives field is built on generations of market competition, strong institutions, effective regulation, and an open attitude towards innovation. For a long time, global regulators have regarded the CFTC as a benchmark for efficient market regulation.Selig said, "The new era of finance needs innovation, not consensus." The United States will not introduce regulatory measures that hinder market development but will seek a balance between innovation and market efficiency. During his tenure, the U.S. will continue to play a leading role in the formulation of derivatives market rules and financial innovation, driving the market to remain competitive.

According to Cryptopolitan, the U.S. Senate will enter a recess on August 7, and the window for the CLARITY Act to pass before then is extremely limited. If a vote is not completed this week, the next feasible window will be pushed to September, and if missed again, it may be delayed until after the midterm elections, potentially not being realized until 2027. The main disagreement in the bill currently lies in the Democrats' insistence on including ethical provisions for cryptocurrency professionals targeting senior government officials, but the merged draft has not yet incorporated relevant statements.During this regulatory vacuum, large institutions like Coinbase and Circle are better able to adapt to uncertain environments due to their capital strength—ARK Invest increased its holdings in the aforementioned two companies this week, and Circle also received approval for a federal national trust bank license in July—while small and medium-sized cryptocurrency companies and DeFi projects continue to face pressure. In terms of the market, Polymarket data shows that the probability of the CLARITY Act passing in 2026 has dropped to 23%, a significant decline from the 67%–75% predicted by Galaxy Research in mid-May.

According to the Financial Times in the UK, scammers are exploiting the new EU MiCA regulations to target users who are forced to withdraw assets from unlicensed crypto platforms after the licensing deadline. The fraudsters impersonate regulatory agencies and crypto exchanges to lure users into transferring funds to fake accounts.

According to Cointelegraph, at the 13th U.S.-U.K. Financial Regulatory Working Group (FRWG) meeting held in London on July 8, both the U.S. and U.K. reaffirmed their commitment to strengthening financial regulatory cooperation and discussed topics such as stablecoin regulation, digital asset market structure, tokenization, and the U.K. wholesale financial market digitalization strategy.The joint statement indicated that the U.S. informed the U.K. about the implementation progress of the GENIUS Act and related work on digital asset market structure, expressing support for "responsible" digital asset innovation while emphasizing financial stability and international regulatory cooperation. On July 14, the "Transatlantic Taskforce on Future Markets" (TTMF) further released preliminary recommendations on stablecoins and a joint statement, laying the foundation for continued U.S.-U.K. leadership in the digital asset and capital markets sectors.

According to NADA NEWS, the Financial Services Agency of Japan announced the establishment of a new "Cryptocurrency and Stablecoin Division," specifically responsible for the regulation of cryptocurrencies and stablecoins. The organizational restructuring took effect on August 7. Previously, cryptocurrency-related business was managed by the "Cryptocurrency and Blockchain Innovation Office" and the "Cryptocurrency Monitoring Office," which were under the Risk Analysis Division of the Comprehensive Policy Bureau.After the restructuring, the new Cryptocurrency and Stablecoin Division was established under the Asset Utilization and Insurance Supervision Bureau, upgrading from an office-level to an independent division-level department. This division includes the "Cryptocurrency Monitoring Office," responsible for exchange regulation, as well as the "Innovation Promotion Office" and the "Digital Payment Planning Office." The Financial Services Agency stated that the restructuring is aimed at addressing new challenges such as financial digitalization and regulatory demands.

According to Bitcoin Archive, SEC Commissioner Hester Peirce stated that she remains optimistic about the U.S. Congress passing the CLARITY Act and mentioned that there is still much that can be done even if the bill does not pass.Hester Peirce pointed out that the SEC will continue to advance relevant work, and regardless of whether the bill passes, the SEC will strive to push forward; even if the CLARITY Act fails to materialize, regulators still have significant room to promote the construction of a digital asset regulatory framework.Hester Peirce has previously called for clearer regulatory rules for crypto assets, believing that a clear market structure helps the U.S. maintain competitiveness in the digital asset space and reduces the long-term uncertainty faced by the industry.

According to Jinshi, the Trump administration plans to invite employees from several tech companies, including OpenAI, Google, and Anthropic, to the White House on Tuesday to jointly review the completed artificial intelligence regulatory framework.The framework will establish a voluntary program for AI labs, requiring them to submit models for government review before release. The meeting will be hosted by the Office of the National Cyber Director and is expected to include employee-level representatives from various companies, rather than executives.

According to Jinshi, the China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission jointly announced new measures to deepen practical cooperation and closely coordinate development between the two markets, covering various areas such as listing financing, index cooperation, futures products, exchange-traded funds (ETFs), internationalization of financial institutions, green finance, and facilitation of professional qualifications.

The U.S. Commodity Futures Trading Commission (CFTC) has released a Notice of Proposed Rulemaking (NPRM) to solicit public comments on the amendments to Parts 37, 38, and 39 of the CFTC regulations and Sections 1.52 and 1.55, with a comment period of 60 days following publication in the Federal Register.The purpose of this amendment is to address potential conflicts of interest arising from the increasing interconnectedness among regulated entities such as Derivatives Clearing Organizations (DCOs), Designated Contract Markets (DCMs), Swap Execution Facilities (SEFs), Futures Commission Merchants (FCMs), and market makers.CFTC Chairman Michael S. Selig stated that the new rules will establish a principles-based regulatory framework for vertically integrated market structures, supporting innovation in the U.S. derivatives market while maintaining market integrity.

According to NATE, South Korea's financial regulatory authorities are advancing the revision of the Capital Markets Act, planning to grant regulators the "emergency intervention rights" to directly take market stabilization measures during periods of severe stock market fluctuations.Currently, the Financial Services Commission (FSC) of South Korea has initiated relevant legal amendments with the Financial Supervisory Service (FSS), focusing on single-stock leveraged ETF products that are believed to amplify volatility during the recent stock market crash. Proposed regulatory measures include adjusting leverage multiples and setting investment limits.In cases of abnormal market fluctuations, the aim is to reduce the risks associated with concentrated trading of funds. Additionally, South Korea's financial regulatory authorities are considering setting personal investment limits for single-stock leveraged ETFs, standardizing the investment cap at around 20% to prevent excessive concentration of funds, and introducing a simulated trading system to enhance investors' understanding of the risks associated with leveraged products.South Korean regulators stated that the increase in the basic margin is primarily aimed at raising the investment threshold, while the investment limit effectively sets an "upper limit" on fund inflows, with both measures forming a complementary risk control system.Previously, South Korea had raised the minimum margin requirement for investors in single-stock leveraged ETFs from 10 million won to 30 million won starting July 31.Data shows that on the first day of the new regulations, the trading volume of 16 related leveraged ETFs was approximately 3 trillion won, only about a quarter of the previous trading day's 12.4 trillion won, and a decrease of about 80% compared to the 15 trillion won level on July 29.

Circle announced that the New York State Department of Financial Services has granted its subsidiary Circle Internet Trust Company LLC a limited purpose trust charter. This charter will further strengthen the regulatory foundation of the company and USDC.Circle stated that the New York trust charter reflects the company's commitment to safety, transparency, and compliance standards. In 2015, Circle became the first company to obtain a BitLicense from the New York State Department of Financial Services, thereby establishing a long-term regulatory relationship with the agency.Circle co-founder, chairman, and CEO Jeremy Allaire stated that obtaining the New York trust charter has always been a long-term goal for the company, and the regulatory clarity brought by this charter will place USDC within a strong and recognized regulatory framework as digital dollars increasingly become a core component of the global financial system.