Crypto Regulation and Compliance Updates

U.S. Treasury Secretary Bessent urged Congress to pass the “Clear Act” as soon as possible to establish a clear regulatory framework for digital assets. He noted that cryptocurrencies have been widely adopted and emphasized that the United States must proactively maintain its leadership position in global financial regulation.

The U.S. Securities and Exchange Commission (SEC) released its 2025 fiscal year enforcement report, disclosing 456 actions and $17.9 billion in penalties, and emphasizing a return to the core of preventing fraud. The newly appointed chair, Atkins, harshly criticized the prior administration’s aggressive regulation and adjusted its enforcement approach toward cryptocurrencies, established a new division to combat technology-based scams, and is committed to protecting investors.

The SEC Chair Paul Atkins confirmed that the cryptocurrency “safe harbor” framework has been submitted to the White House for review. The proposal includes exemptions for newly created and investment contracts to promote the regulation and innovation of digital assets. This move has sparked lively debate within the financial industry and among cryptocurrency advocates, and going forward efforts will be made to strike a balance between protecting investors and promoting innovation.

The Democratic Party of Korea introduced the “Digital Assets Basic Act,” establishing a digital asset regulatory framework, including issuance requirements for stablecoins and rules governing market conduct. In addition, the Financial Services Commission requires exchanges to implement a uniform withdrawal delay to combat voice scams. The core of the bill centers on a dispute over the eligibility requirements for stablecoin issuance, with the central bank and the Financial Services Commission taking different positions.

Phantom Wallet experienced a malfunction during the token airdrop, causing abnormal token prices and account balances to be displayed. Although the assets were safe, users suffered transaction losses, prompting compensation requests and a crisis of trust. The incident also heightened concerns about blockchain security, and some bad actors may use the chaotic situation to launch phishing attacks. While the technical issues have been fixed, improvements are still needed for the user experience and system stability.

The U.S. FDIC has introduced a regulatory framework for stablecoins, requiring a 1:1 reserve, liquidity, and a redemption window within two days. The bill does not apply deposit insurance and is intended to ensure stability in the financial system. The FDIC has clearly set capital requirements and limits on earnings, and has clarified the security and compliance of stablecoins. This proposal is currently in a public comment period.

Bitcoin Depot was hit by a security vulnerability on March 23, 2023. The hacker gained access to the IT system to steal login credentials, and without authorization transferred about 50.9 bitcoins, resulting in losses of approximately $3.67M. The incident did not affect customers’ personal data, showing the security challenges faced by Bitcoin ATM operators. This was the company’s second known major security incident, reflecting its need for stronger security measures under regulatory pressure.

On-chain analyst 0xMacroGuy noted that Hyperliquid HLP lost approximately $1.2 million due to a takeover by a malicious actor of a large Fartcoin long position, representing about a 0.35% drawdown. The attacker intentionally incurred losses after establishing a large amount of leverage, causing HLP to absorb greater losses. HLP’s current TVL is $420 million, and its APR over the past month was 0%.

The trademark dispute between BAYC developer Yuga Labs and artist Ryder Ripps was finally settled in 2026, with Ripps being barred from using Yuga’s images and trademarks. The case involved trademark infringement and artistic freedom; the court held that even with a satirical intent, it could still cause consumer confusion, so Ripps was not exempted from liability. This case established an important legal precedent for NFT trademark protection.

Bitcoin (BTC) gives back the overnight gains, temporarily trading at around $70,650 on April 9. The U.S. SEC appointed David Woodcock as its new Enforcement Director, after concerns were raised about how crypto cases would be handled following the departure of the prior official. The U.S. Treasury is planning to require stablecoin issuers to take on anti-money-laundering and sanctions compliance obligations.

Bitcoin ATM operator Bitcoin Depot recently filed a report with the U.S. SEC, saying it was hit by a cyberattack on March 23 in which hackers stole approximately 50.9 BTC valued at about $3.665 million. The company has initiated an emergency response and investigation. Its customer platform and data were not affected, but it may face reputational and legal costs.

Gate News message, April 9, according to a report by CoinDesk, South Korea’s ruling party has proposed a “Basic Act on Digital Assets,” aiming to establish a comprehensive legal framework covering issuance, trading, custody, and regulation. The bill would classify digital assets such as stablecoins—those pegged to fiat currencies or real-world assets—as a special category, requiring issuers to obtain licenses and meet requirements including capital, reserves, and redemption. The bill also plans to introduce a licensing and information disclosure system, clearly prohibiting market manipulation and insider trading, and intends to set up a Digital Assets Committee to coordinate regulatory oversight.

The U.S. Treasury plans to jointly issue new regulations requiring stablecoin issuers to establish anti-money laundering and sanctions compliance systems to address suspicious transactions and comply with the Bank Secrecy Act. This move is intended to advance the implementation of the GENIUS Act, which is expected to take effect in 2027.

The U.S. federal appeals court ruled that the state of New Jersey lacks authority to block the sports contract offerings of the prediction market platform Kalshi, which are regulated by the CFTC, stating that federal law takes precedence over state law. Although Kalshi prevailed, experts said this is only a temporary victory and that the Supreme Court will ultimately have to decide the jurisdiction issue.

The U.S. FDIC has introduced a regulatory framework for stablecoins, requiring 1:1 reserves and liquidity, and setting a redemption deadline within two days. The bill does not apply deposit insurance and is intended to ensure stability in the financial system. The FDIC has clearly set capital requirements and limits on earnings, and clarified the safety and compliance of stablecoins. This proposal is currently in the public comment period.

In 2025, Americans lost $11.36 billion to cryptocurrency fraud, a 22% increase from 2024, with investment scams accounting for the majority. Despite increased enforcement, scams continue to thrive, particularly affecting older victims, prompting authorities to enhance anti-fraud measures.

The U.S. Securities and Exchange Commission (SEC) appointed David Woodcock as the new head of its enforcement division on April 8, replacing the departing official. Woodcock does not have a background in the crypto industry, and the appointment comes amid controversy over the SEC’s actions in crypto enforcement. The SEC chair said the move will strengthen efforts to crack down on misconduct by investors.

SEC Chair Paul Atkins has confirmed that the cryptocurrency “safe harbor” framework has been submitted to the White House for review. The proposal includes exemptions for startups and investment contracts to promote oversight of digital assets and innovation. This move has sparked lively discussion in the financial industry and among cryptocurrency supporters, and going forward it will aim to strike a balance between protecting investors and promoting innovation.

The U.S. Federal Deposit Insurance Corporation (FDIC) approved a proposed rule on April 7 to implement the regulatory requirements of the GENIUS Act, establishing a prudent management framework for stablecoin issuers and issuing corresponding regulations for stablecoin custodial services. The rule is intended to ensure proper management of reserve assets and risk controls, and to open a 60-day public comment period, reflecting the gradual improvement of stablecoin regulation in the United States.