regulator

Circle submitted comments to the U.S. Securities and Exchange Commission regarding its proposed regulatory framework for cryptocurrency assets. Circle supports the proposal's goal of fostering innovation under clear rules while maintaining the advantages of U.S. capital markets, including transparency, investor protection, market integrity, liquidity, and efficiency.Circle also suggested that the cryptocurrency asset regulatory framework should align with the GENIUS Act. Given that payment stablecoins are increasingly becoming important considerations and settlement assets for on-chain capital formation, Circle requests that the U.S. Securities and Exchange Commission (SEC) clarify how payment stablecoins that comply with the provisions of the GENIUS Act can be used for these purposes.The letter further requests that the Commission clarify that eligible payment stablecoins constitute "cash" under proposed Rule 302(b), should receive appropriate U.S. dollar valuation treatment, and comply with the corresponding accounting and customer reserve treatment conditions.Circle also recommends that, provided objective safeguards are in place, the current 2% broker discount for payment stablecoins that comply with GENIUS be reduced to zero. Finally, Circle requests that the SEC clarify that technical services provided after the network goes live (including maintaining a known set of validating nodes) do not constitute necessary management work. Establishing safe harbor rules for the technical roadmap would allow issuers to continue maintaining and improving the operational network without inadvertently restarting the related analysis.

According to market news, U.S. Treasury Secretary Janet Yellen stated that regardless of whether Congress takes action, the U.S. Treasury will push to bridge the regulatory gap between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding cryptocurrency.

a16z recently submitted a public comment letter to the U.S. Commodity Futures Trading Commission (CFTC) in response to the CFTC's request for comments on the listing of computing power derivative contracts, expressing support for establishing a regulated computing power derivatives market in the United States. The related derivatives would help AI startups and cloud service providers hedge against computing power price, utilization, and duration risks, and reduce the financing costs of AI infrastructure.a16z stated that the CFTC does not need new statutory authority, as the Commodity Exchange Act (CEA), Part 38 core principles, and Part 40 self-certification process are sufficient, and no new rules are needed prior to listing. The letter suggested that the CFTC rely on the existing regulatory framework to support the adoption of computing power price benchmarks that comply with the principles of the International Organization of Securities Commissions (IOSCO), and allow exchanges to launch cash-settled computing power futures, including fixed-term futures and perpetual contracts.a16z crypto is an investor in Ornn, and ICE announced in May plans to launch GPU computing power futures based on the Ornn Computing Power Price Index (OCPI).

The California Department of Financial Protection and Innovation (DFPI) has submitted a letter to the U.S. Securities and Exchange Commission (SEC) opposing its "Regulation Crypto Assets" proposal, stating that the plan could undermine investor protection and limit state governments' oversight of issuance projects. DFPI Commissioner KC Mohseni stated that California opposes federal regulators weakening state regulatory authority and protective measures.The proposal aims to allow eligible issuers to raise up to $5 million over four years through a startup exemption; another cryptocurrency financing exemption allows issuers to raise up to $75 million within 12 months. Relevant issuances must disclose project details, risks, and other information necessary for investor assessment, and some financing must also submit financial statements and ongoing reports. Federal securities laws still retain the authority for states to investigate securities fraud, deceptive practices, and illegal broker or dealer activities. Blockchain payment company Ripple, cryptocurrency exchange Coinbase, and exchange operator Nasdaq all support the adjustment proposal; DFPI stated that its fraud tracking list has added nearly 200 cryptocurrency-related scams, a 30% increase from the previous year.

The Office of the Comptroller of the Currency (OCC) has finalized the implementation rules for the GENIUS Act, applicable to licensed stablecoin issuers, foreign issuers under OCC jurisdiction, and certain custodial activities of regulated entities, covering reserve support, redemption, and risk management. Treasury Secretary Scott Bessent described the legislation as a "watershed moment for the U.S. financial industry," comparing it to the National Currency Act of 1863.The final rules do not include provisions for the Bank Secrecy Act, anti-money laundering, and OFAC sanctions, which will be addressed through subsequent rules coordinated with the Treasury Department. The GENIUS Act was signed into law in July 2025, and regulators failed to establish rules by the deadline of July 18, 2026; the Federal Reserve proposed two related rules in September 2026. Both the GENIUS Act and the OCC final rules are set to take effect on January 18, 2027, and the OCC has not yet announced the timeline for accepting issuer applications and exemption requests.

According to Bitcoin Magazine, Franklin Templeton, with assets under management of $1.7 trillion, has completed the final regulatory procedure before listing two ETFs that convert stock dividends into Bitcoin.On October 22, the company submitted Form 8-A to the U.S. Securities and Exchange Commission to register shares of the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF for trading on NASDAQ. The prospectus submitted on the same day indicates an effective date of October 27. These two funds were first filed in June of this year, with codes and fees not disclosed at that time.The stock fund code is FBEQ, which tracks the VettaFi US Large-Cap 500 Bitcoin DRIP Index. This index holds the 500 largest companies in the U.S. by market capitalization, weighted by free float. As of September 30, it actually held 499 stocks, with a concentration in the information technology sector. The fund's initial allocation is 95% stocks and 5% Bitcoin, with regular or special dividends distributed by companies being used to purchase Bitcoin at the opening of the next trading day after the ex-dividend date, increasing the Bitcoin allocation with each dividend payment.During quarterly rebalancing, any Bitcoin allocation exceeding 5% will be reduced to 4.5%; if the Bitcoin allocation exceeds 20% between two rebalancing periods, it will be brought down to 4.5% within two trading days, with the funds flowing back into stocks. The fund does not directly hold on-chain Bitcoin but gains exposure through Bitcoin exchange-traded products (including its own spot fund), futures and options, or depository receipts, with some achieved through a subsidiary in the Cayman Islands. The FBEQ fee is 0.09%, with no 12b-1 fees, managed by Franklin Advisory Services, and Franklin Templeton Institutional serves as a sub-advisor. The innovation fund employs the same mechanism, tracking the VettaFi US Innovation 100 Bitcoin DRIP Index, with components from the 100 largest non-financial companies listed on NASDAQ.Franklin Templeton had previously filed for a spot Bitcoin ETF in September 2023 and launched it in January 2024 under the code EZBC; in April of this year, it acquired 250 Digital and established an institutional digital asset department, Franklin Crypto. These two DRIP funds extend the strategy to investors who will not purchase Bitcoin on their own.

The China Securities Regulatory Commission approved the establishment of Citigroup Securities (China) Co., Ltd. The company is registered in Shanghai, with a registered capital of 1.2 billion RMB. Its business scope includes securities brokerage, securities investment consulting, securities underwriting and sponsorship, and securities proprietary trading. The shareholder Citigroup Global Markets Holdings Inc. holds a 100% investment ratio.

According to South Korean media Digital Asset, the Second Division of the Seoul Administrative Court held its first hearing on October 22 regarding the administrative lawsuit between Bithumb and the Financial Intelligence Unit of Korea (FIU). The FIU determined that between August 28, 2022, and April 3, 2025, Bithumb conducted 45,772 transactions with 18 unreported cryptocurrency operators, and based on this, imposed sanctions, including a partial suspension that restricts new customers from transferring cryptocurrency assets externally for six months.Bithumb stated in court that transactions of 1 million won or more are subject to the "travel rule," and unreported operators have been excluded from the list of optional exchanges, thus the number of violations for this amount range is zero. Transactions below 1 million won were not subject to the travel rule at that time, and the platform had no legal basis to require customers to provide information about the receiving exchange, nor did the regulatory authorities specify a blocking method. Bithumb also mentioned that after integrating the Chainalysis API, only about 2% of the addresses that could not be confirmed were later identified as unreported operators designated by the FIU. If all were blocked, the remaining 98% of normal transactions would be affected, and the platform could also face user claims.Bithumb also believes that the six-month sanction is excessive, effectively equivalent to prohibiting the platform from acquiring new customers. The company also questioned the FIU's criteria for identifying overseas operators and the reasonableness of the basis for the sanctions.

The UK's Financial Conduct Authority (FCA) has launched two parallel consultations aimed at seeking industry input on the applicability boundaries of DeFi and its upcoming regulatory framework for crypto assets. Both consultations will close on November 18, 2026; the FCA plans to publish final guidance in January 2027 after reviewing feedback from various parties.The first consultation primarily targets FCA-regulated firms that use DeFi protocols or facilitate access to DeFi protocols. The guidance is not intended to introduce a new rulebook but aims to clarify how existing regulatory requirements should apply when firms provide services through highly automated, distributed ledger-based systems. The second consultation explores the scope of crypto asset regulation in the context of recent legislative changes (i.e., the "regulatory boundary").

Analysts indicate that regulatory-led measures can encourage institutional participation in the cryptocurrency ecosystem in the short term, but only legislation can make the framework more robust in the long term. Currently, the cryptocurrency industry has to rely on a series of fragmented regulatory actions, which may be overturned in the next two years due to political changes. At the same time, the U.S. Securities and Exchange Commission (SEC) has issued a five-year "innovation exemption" for tokenized stocks, requiring that tokens must possess the financial and voting rights of the original stocks.Additionally, the U.S. Commodity Futures Trading Commission (CFTC) is exploring allowing leveraged cryptocurrency trading on regulated U.S. platforms, while the Office of the Comptroller of the Currency (OCC) has granted national trust charters to an increasing number of stablecoin issuers and digital asset companies, placing activities such as custody and reserve management under federal regulation. The Financial Accounting Standards Board (FASB) is also considering allowing companies to classify certain stablecoins as cash equivalents to support their broader use in payments and liquidity management.

U.S. Vice President Vance stated that European countries have almost unanimously decided to initiate a regulatory and licensing battle against SpaceX, but now they are all requesting SpaceX to do what they need.

The Shanghai Financial Regulatory Bureau issued "Several Measures to Promote the High-Quality Development of Digital Finance in Shanghai's Banking and Insurance Industries," proposing to steadily expand supply chain financial services using technologies such as big data and blockchain.The measures propose to standardize the development of accounts receivable financing, supply chain bill financing, warehouse receipt pledge financing, order financing, and other products, while continuously deepening the insurance service layout for advanced manufacturing, enhancing comprehensive risk protection capabilities.

The cryptocurrency wallet backup company Vault12 submitted a letter to the U.S. Securities and Exchange Commission (SEC), pointing out that the proposed token safe harbor framework fails to adequately alleviate concerns about the listing of tokens on centralized exchanges. Trading platforms remain worried about the potential for the SEC to retroactively challenge the legal status of tokens in the future.Vault12 raised $17.45 million from 38 investors in 2018 through a future token agreement, and its issued Vault Guardian Token (VGT) has yet to be listed on any centralized exchange. The project has fulfilled or formally abandoned all commitments in its white paper, but the exchanges previously contacted still require confirmation that the SEC will not determine in the future that VGT continues to be bound by the original investment contract. The SEC's proposed "Regulation Crypto Assets" plan introduced in August of this year aims to provide exemptions for token financing and allows eligible projects to terminate the association between tokens and the original investment contracts through a safe harbor mechanism. Vault12 suggests adding a 60-day objection period, during which if the SEC does not raise any objections, eligible filings should have final effect on the agency, except in cases of fraud or significant misrepresentation.

According to the Financial Times, the deposit scale of crypto lending vaults has surpassed $10 billion, a significant increase from $4 billion at the beginning of last year, reflecting the growing demand from investors for digital asset yield strategies. These vaults operate through smart contracts on decentralized finance platforms, with each vault having a "curator" who effectively acts as an investment manager responsible for selecting lending strategies, setting risk limits, and charging fees. Their yields typically range from 3% to 10%, with riskier strategies yielding up to 20% or even higher.The allure of returns comes with significant risks. Loans may be collateralized by illiquid tokens, crypto-asset-backed stablecoins, or tokenized private credit, and if the collateral depreciates or becomes difficult to sell, depositors will face losses. Automatic liquidation may exacerbate market downturns, while hacking attacks, code errors, and pricing mechanism flaws can introduce additional vulnerabilities. Although publicly accessible smart contracts provide transparency, investors may focus only on surface yields while overlooking their underlying risk exposures. Major depositors currently include fintech companies, digital asset treasury firms, and hedge funds.Bitcoin lending institution Two Prime is one of the companies that recently entered this market. The company launched a Bitcoin lending vault on the Pareto platform in September, targeting an annualized yield of 1.5% to 2% through institutional lending. This vault accepts wrapped Bitcoin, with a minimum deposit of 5 WBTC, and has invested approximately $10 million of its own funds to absorb initial losses. On the regulatory front, the U.S. Securities and Exchange Commission has raised questions regarding the securities held by the vaults, while European regulators have proposed regulating intermediaries that provide access to DeFi.

On October 19, Wu Qing, Chairman of the China Securities Regulatory Commission, stated at the opening ceremony of the 2026 Financial Street Forum Annual Conference that they will adhere to a steady approach, fully maintain the safety and stability of the capital market, closely monitor domestic and international market dynamics, and strengthen risk assessment and policy tool reserves.Wu Qing also stated that they will consolidate and improve the mechanisms for stabilizing the market, focus on strengthening the prevention of risks in new types of businesses, remain highly vigilant against new risk points such as leveraged products linked to A-shares from abroad, and continuously build a solid risk defense wall for the capital market.

According to a report by the Korean News Agency, the Financial Services Commission of South Korea and the Financial Supervisory Service are strengthening monitoring of "perpetual contracts" linked to Korean stocks and stock indices traded through global virtual asset platforms.If illegal business activities targeting Korean residents, such as soliciting account openings or trading, are found on overseas platforms, the regulatory authorities will refer the matter to investigative agencies and take strict countermeasures.

The co-founder of the decentralized perpetual contract platform Hyperliquid, Jeff Yan, stated in an interview with Bloomberg's "Odd Lots" podcast on October 15 that regulatory obligations should be imposed on financial service providers operating markets on the Hyperliquid blockchain, rather than on the blockchain network itself, to reduce the compliance burden for the platform entering the U.S. market.Yan likened this idea to internet infrastructure, believing that the blockchain, as the underlying liquidity and trading infrastructure, should not bear all the regulatory responsibilities of traditional trading platforms directly, but rather the service providers that actually operate the markets and hold relevant control should fulfill compliance obligations. He stated that Hyperliquid does not aim to replace traditional financial institutions on Wall Street, but hopes to provide them with underlying trading technology, similar to how Amazon Web Services provides computing infrastructure to businesses.Yan mentioned that the team is seriously advancing the development of Hyperliquid into an infrastructure covering various financial markets. Currently, Hyperliquid is still not open to U.S. users, but Kraken's parent company Payward has planned to offer derivative services to U.S. investors through a regulated trading platform, utilizing its technology.