SEC and CFTC draw first-ever regulatory map across five crypto asset categories
Joint guidance issued Tuesday by Chairmen Paul Atkins and Michael Selig establishes a taxonomy covering digital commodities, digital collectibles, digital tools, stablecoins, and digital securities — with only the last category remaining subject to securities laws. The interpretation also clarifies that investment contract status is not permanent, addresses how activities such as staking, mining, airdrops, and asset wrapping are treated, and signals a formal rulemaking on an innovation exemption within weeks, marking the sharpest break yet from the enforcement-first posture of the previous administration.
Senate banking chair signals stablecoin yield compromise could land this week
Speaking at the DC Blockchain Summit in Washington, Scott told attendees he expects a draft proposal on the long-contested stablecoin yield issue to reach his desk imminently, with Senators Thom Tillis and Angela Alsobrooks having engaged the White House directly on the matter. Remaining sticking points include DeFi anti-money laundering rules championed by Senator Mark Warner, regulatory quorum requirements, and restrictions on the Trump family’s crypto ventures. Rep. Dusty Johnson warned lawmakers may have as few as six weeks before the legislative window closes ahead of the midterms.
CFTC grants phantom wallet a regulatory safe harbor to plug users into derivatives markets
Staff Letter No. 26-09 establishes that a self-custodial wallet can connect users to CFTC-regulated futures exchanges without triggering broker registration requirements, provided it never takes custody of funds, executes trades, or acts as a counterparty. Phantom CEO Brandon Millman said the outcome, the product of extended engagement with regulators throughout 2025, could serve as a replicable compliance model for other non-custodial wallet developers seeking to expand into regulated derivatives; CFTC Chair Selig called it long-overdue clarity for software providers.
UK National Security Committee presses government to halt crypto political donations over foreign interference risk
The Joint Committee on the National Security Strategy, chaired by MP Matt Western, has formally recommended a temporary moratorium on parties accepting crypto donations until the Electoral Commission produces binding statutory guidance, a step beyond the non-binding interim guidance the Commission had been considering. The committee’s accompanying recommendations include restricting donations to FCA-registered providers, banning mixer-linked funds, requiring conversion to sterling within 48 hours, and establishing a dedicated national police lead on political finance. Anti-corruption group Spotlight on Corruption warned that even a moratorium falls short without statutory enforcement powers.