Major Crypto Exchanges Launch New Products, Obtain Foreign Licenses
By Keith R. Murphy
According to a recent company blog post, a major U.S. cryptocurrency exchange has launched a new staking product that will allow clients residing in eligible U.S. states to securely stake eligible tokens, including bonded staking to lock up/bond crypto assets to the applicable blockchain network for a specific period of time. And according to another recent blog post, the same cryptocurrency exchange has obtained a Markets in Financial Instruments Directive license in the EU. The license reportedly will allow the exchange to offer fully compliant and regulated derivatives products to advanced crypto traders across selected EU markets.
In related news, another major U.S. cryptocurrency exchange recently announced that it has obtained its registration as a virtual asset service provider in the U.K. According to a press release, the registration will allow the exchange to offer both cryptocurrency and fiat products in the U.K. A separate recent report noted that a subsidiary of the same exchange has filed to list new futures contracts for Hedera and Solana in the U.S. The exchange reportedly anticipates listing the new contracts, which will be cash-settled on a monthly basis, in or after February 2025.
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Digital Asset Products Launch in Payments, Capital Markets, Networks
By Robert A. Musiala Jr.
Tether, the issuer of the USDT stablecoin, recently announced “the integration of USDT into Bitcoin’s ecosystem, including both its base layer and the Lightning Network.” In a blog post, Tether said the integration is supported by a new Taproot-powered protocol, Taproot Assets, that has been developed by Lightning Labs. According to the blog post, the integration “combines Bitcoin’s unmatched decentralization and security with the speed and scalability of the Lightning Network, redefining how stablecoins can function within the Bitcoin ecosystem.”
According to reports, Trivago, a popular travel booking website, has integrated with Travala, a crypto-based travel booking service. The integration will reportedly allow Trivago users to book travel properties through payments in over 100 cryptocurrencies, including BTC, ETH, BNB and AVA.
A major U.S. digital asset management company recently announced its Dogecoin Trust product. According to a company blog post, the Dogecoin Trust “is one of the first investment vehicles that enables investors to gain exposure to the token underlying the Dogecoin Network (“DOGE”) in the form of a security while avoiding the challenges of buying, storing, and safekeeping DOGE directly.”
In a final notable item, according to the Cardano Spot website, the Cardano Network recently went live with its Plomin hard fork. According to Cardano Spot, the hard fork “marks the transition to a fully decentralized governance model, empowering $ADA holders with the ability to vote on blockchain changes.”
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SEC Commissioner Peirce Lists Crypto Task Force Priorities
By Robert A. Musiala Jr.
Commissioner Hester M. Peirce of the U.S. Securities and Exchange Commission (SEC) recently published a statement discussing the SEC’s newly formed Crypto Task Force (Statement). Among other things, the Statement provides the following non-exhaustive list of priorities for the SEC Crypto Task Force:
- Security Status. Examining the status of crypto assets under the U.S. securities laws.
- Jurisdiction. Identifying areas that fall outside of SEC jurisdiction.
- Coin and Token Offerings. Considering potential temporary and retroactive relief for coin or token offerings where the issuer provides certain information for tokens deemed non-securities.
- Registered Offerings. Considering potential modifications to existing paths to registration, including Regulation A and crowdfunding, to enable a viable path to registering token offerings.
- Special Purpose Broker-Dealer (SPBD). Exploring potential updates to the SPBD no-action statement to cover broker-dealers that custody crypto asset securities alongside crypto assets that are not securities.
- Investment Advisor Custody. Working to provide a regulatory framework for investment advisors to safely, legally and practically custody client assets themselves or with a third party.
- Lending and Staking. Working to provide clarity about whether crypto lending and staking programs are covered by the securities laws.
- Crypto Exchange-Traded Products (ETPs). Working with SEC staff to provide clear statements about the approach used when approving or disapproving crypto ETP applications.
- Clearing Agencies and Transfer Agents. Addressing the intersection of crypto and clearing agency and transfer agent rules.
- Cross-Border Sandbox. Considering ways to facilitate cross-border experimentation for crypto projects.
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Crypto Czar Gives Conference, Stablecoin Bills Introduced in Senate and House
By John Robertson
At a recent press conference, Crypto Czar David Sacks and several members of Congress outlined their short-term cryptocurrency regulation strategy. According to reports, Sacks began by reiterating the objectives of President Donald Trump’s executive order on digital assets and emphasizing a need for “regulatory clarity” instead of regulation through “arbitrary prosecution and persecution.” Members of Congress also spoke during the press conference and stressed the importance of United States leadership in Web3 through legislation that provides space for innovation while protecting consumers. The lawmakers also noted efforts underway to better educate their fellow members of Congress on crypto assets and networks. Additionally, Sacks reportedly stated that Trump’s directive to evaluate a bitcoin reserve would be “one of the first things we’re going to look at.”
Elsewhere on Capitol Hill, Sen. Bill Hagerty, R-Tenn., recently introduced the Guiding and Establishing National Innovation in U.S. Stablecoins (GENIUS) Act. According to reports, among other things the bill requires U.S. stablecoin issuers to make monthly online disclosures of U.S. dollar reserves, have these disclosures examined by a certified public accounting firm, and certify these examinations to a federal regulator. Hagerty reportedly said the bill will “establish a safe and pro-growth regulatory framework.” The bill is co-sponsored by Sens. Tim Scott, R-N.C., Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y.
In related news, a recent press release from the House Committee on Financial Services announced that French Hill, R-Ariz., and Bryan Steil, R-Wisc., have released a discussion draft of their bill to regulate dollar-backed stablecoins. Hill said the intention of the draft is to “provide clarity for payment stablecoins and ensure a federal and state path for stablecoin issuers.” Likewise, Steil said the bill would both “implement[] a clear regulatory structure” and “protect consumers and investors.” The release indicates the bill will proceed in a bicameral fashion and develop alongside the Senate’s GENIUS Act. The press release states that the committee is welcoming feedback from the public on the draft bill.
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Venture Capital Firm Publishes Series of Articles on US Crypto Policy
By Robert A. Musiala Jr.
Crypto venture capital firm a16z recently published a series of 11 articles with the collective title Making the U.S. the Crypto Capital: What It Would Take. The series seeks to “offer policymakers important considerations for how to approach crypto regulation, ensuring that the U.S. leads this critical shift toward the next generation of the internet.” The individual article titles are as follows: (1) Why decentralization matters, and needs incentives; (2) A new (digital) age at the SEC; (3) Let staking flourish in the U.S.; (4) End the era of mass financial surveillance; (5) Anyone can get debanked. DeFi is a critical safety net.; (6) It’s time to bring assets onchain; (7) Why the Department of Justice’s actions against DeFi are a wreck; (8) Why we need decentralized stablecoins; (9) Rethinking SEC rulemaking: Why crypto needs its own rules; (10) How the U.S. can benefit from effective crypto tax policy; and (11) Should the United States implement a Bitcoin strategic reserve?
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DOJ Indicts DeFi Hacker; Reports Analyze Crypto Losses, Market Manipulation
By Robert A. Musiala Jr.
The U.S. Department of Justice (DOJ) recently announced an indictment “charging a Canadian man with exploiting vulnerabilities in two decentralized finance protocols to fraudulently obtain about $65 million from the protocols’ investors.” According to a DOJ press release, the defendant “exploited vulnerabilities in the automated smart contracts used by the KyberSwap and Indexed Finance decentralized finance protocols … to … withdraw millions of dollars of investor funds from the protocols at artificial prices, rendering the victims’ investments essentially worthless.”
In other news, various reports provide new data on cryptocurrency losses, market manipulation and ransomware payments. A report by Immunefi provided data on crypto losses in the month of January. According to the report, in January 2025, $73.9 million was lost due to hacks across 19 incidents, representing a 44.6 percent decrease from January 2024; CeFi accounted for 93 percent of total losses in January, while DeFi accounted for 6.5 percent; and hacks continued to be the predominant cause of losses compared to fraud.
According to a new report from Chainalysis, suspected wash trading on select blockchains may account for up to $2.57 billion in trading volume. Among other things, the report analyzes suspected wash trading patterns and provides wash trading case studies. And according to a second Chainalysis report, in 2024 “the total volume of ransom payments decreased year-over-year (YoY) by approximately 35%, driven by increased law enforcement actions, improved international collaboration, and a growing refusal by victims to pay.” The report finds that in 2024 “ransomware attackers received approximately $813.55 million in payments from victims, a 35% decrease from 2023’s record-setting year of $1.25 billion,” representing the first time since 2022 that ransomware revenues have declined.
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