Crypto regulation, legislation and public-policy developments.
Bitchat downloads in Madagascar spiked amid nationwide protests over water and power cuts, echoing similar surges during unrest in Nepal and Indonesia. With limited internet access, the decentralized, encrypted app is emerging as a key communication tool during crises. Meanwhile, EU efforts to regulate encrypted messaging may further boost adoption of privacy-focused alternatives.
Kraken has raised $500M at a $15B valuation, further fueling speculation about a potential IPO. The move comes amid a wave of crypto firms going public, with Gemini, Circle, and others finding strong investor demand. Favorable U.S. regulations are helping pave the way for this new era of crypto IPOs.
The EU’s 19th sanctions package takes aim at cryptocurrency platforms for the first time, banning Russian crypto transactions amid fears of sanction evasion. At the same time, Ukraine is moving in the opposite direction, with lawmakers drafting a bill to establish a national Bitcoin reserve as part of its financial defense strategy.
The EU’s MiCA regulation promised a single, unified crypto market, but diverging national approaches to enforcement are creating fears of regulatory arbitrage. While large players may benefit, smaller firms face intense compliance burdens, raising questions about whether Europe can apply the rules consistently.
Kraken has partnered with Trust Wallet to expand access to Backed’s tokenized equities, xStocks, across multiple blockchains. While the exchange claims a potential reach of 200 million users, regulatory restrictions mean availability will be limited in key markets such as the U.S., U.K., and Canada.
Coinbase CEO Brian Armstrong says the U.S. Digital Asset Market Clarity Act has unprecedented bipartisan backing, calling it a “freight train” set to reshape crypto regulation. Lawmakers are also pushing forward discussions on a Strategic Bitcoin Reserve, signaling a pivotal moment for digital assets in America.
A UK government petition calling for a pro-innovation blockchain and stablecoin strategy has gained traction after Coinbase urged its users to sign. The petition seeks stablecoin regulation, blockchain adoption in government, and a dedicated crypto policy leader. It has passed 5,000 signatures and needs 10,000 for an official response, with 100,000 triggering a parliamentary debate.
The Reserve Bank of India (RBI) is holding back on comprehensive crypto regulations, warning that formal rules could legitimize digital assets and create systemic risks. While India currently imposes a 30% tax on crypto gains and strict registration requirements for exchanges, it still leads the world in crypto adoption, according to Chainalysis. Despite strong adoption metrics, officials and industry leaders say India faces a paradox between rising interest and limited real-world usage.
The first-ever US Dogecoin ETF, the Rex-Osprey Doge ETF (DOJE), is set to begin trading on Thursday, marking a major milestone for memecoins in regulated markets. Dogecoin rallied nearly 13% ahead of the launch, while analysts note this ETF signals growing institutional interest in speculative digital assets. The SEC’s approval comes as dozens of other crypto ETF applications, including Solana and XRP, remain under review.
Backpack EU, which acquired the former FTX EU earlier this year, has launched a regulated perpetual futures platform in Europe after settling with Cyprus’ financial regulator and securing a MiFID II license. The firm, led by Solana developer Armani Ferrante, refunded former FTX EU customers before relaunching operations under CySEC oversight. With approvals in Europe, Dubai, and Japan, Backpack is pushing to expand as a global player in regulated crypto trading.
HSBC and ICBC are preparing to apply for stablecoin licenses under Hong Kong’s new regulatory regime, which took effect on Aug. 1. Reports suggest ICBC and Standard Chartered are likely to receive first-round approvals, giving them a head start. The licensing framework sets strict requirements for issuers, making unlicensed stablecoins illegal for retail investors. Regulators have also warned that speculation around the rollout increases the risk of fraud, urging investors to remain cautious.
The U.S. Senate has added a clause to its crypto bill clarifying that tokenized stocks remain classified as securities, ensuring they fit within existing financial frameworks. The Responsible Financial Innovation Act of 2025 also splits oversight between the SEC and CFTC, with votes expected in the coming months. Meanwhile, over 100 crypto firms, including Coinbase and Ripple, have urged lawmakers to protect developers and non-custodial service providers, warning that unclear rules are driving talent out of the U.S.
Litecoin’s playful feud with influencer Benjamin Cowen sparked fresh attention, with some traders even turning bullish on the asset. The timing aligns with growing institutional interest, as Grayscale and Canary Capital have both filed with the SEC to launch Litecoin ETFs in the U.S.
Ripple’s long legal fight with the SEC was influenced by the activism of the XRP Army, according to lawyer John Deaton. Thousands of XRP holders submitted affidavits, petitions, and coordinated campaigns, which Judge Torres later cited in her ruling that XRP itself is not a security.
Traditional banks are expanding into crypto custody. Deutsche Bank plans to launch a digital assets custody service in 2026 with Bitpanda, while Citigroup is considering custody and payment services as regulatory shifts make the sector more accessible.
Metaplanet is moving forward with its plan to raise $3.7B to buy 210,000 BTC by 2027, after shareholder approval for new share issuance. The company still needs board approval on issuance terms and filings with regulators, while falling stock prices—down 54% since June—pose a major fundraising challenge.