The US has imposed sanctions on multiple Iranian cryptocurrency exchanges, alleging they facilitate terror financing and money laundering. The sanctions are part of broader economic pressure on Iran. Cryptocurrencies have become a key channel for sanctions evasion due to their decentralized nature, prompting regulators worldwide to tighten monitoring.
Trump Administration Factions Clash Over AI Policy Direction Internal divisions within the Trump administration over AI regulation have surfaced, with some officials pushing for mandatory safety testing of large AI models while others favor deregulation to maintain U.S. competitiveness. The split reflects a broader policy debate: how to balance AI innovation with risk prevention. The U.S. Commerce Department has already conducted safety testing on AI models from Google, Microsoft, and xAI, but the mandatory nature of these tests and the subsequent regulatory framework remain contested. ...
The US Commodity Futures Trading Commission (CFTC) has admitted it should not have sued crypto exchange Gemini, joining the company in a motion to vacate a 2025 consent order. The rare reversal signals regulatory self-reflection on enforcement overreach.
China’s Supreme People’s Court will develop judicial guidance for crypto-related cases amid rising legal disputes.
Binance has publicly disputed a Wall Street Journal report alleging that Iranian financier Babak Zanjani moved $850 million through its platform. CEO Richard Teng said the claims are inaccurate. The controversy emerges amid heightened geopolitical tensions. The US has paused a $14 billion arms sale to Taiwan due to the Iran situation, and a Pakistani field marshal is traveling to Tehran to broker a US-Iran deal. Binance has been strengthening compliance measures in recent years, seeking to distance itself from sanctioned entities. This dispute highlights the compliance challenges crypto exchanges face amid geopolitical conflicts. ...
House Oversight Chairman Comer has launched an investigation into insider trading on prediction market platforms Kalshi and Polymarket, sending letters to both CEOs with a deadline to respond by June. The move follows India’s recent crackdown on Polymarket. Prediction markets, as an emerging financial instrument, operate in a regulatory gray area. The probe will examine whether trades exploiting non-public information have occurred, whether platforms have adequate monitoring mechanisms to detect and prevent insider trading, and whether prediction markets should fall under CFTC oversight. ...
Indian regulators have cracked down on prediction markets, with Polymarket ceasing operations in the country. CoinDesk reports that other platforms like Kalshi could face similar restrictions. The move reflects a tightening regulatory trend for prediction markets globally. Meanwhile, Polymarket is eyeing entry into the Japanese market and has appointed a regional representative.
The South Korean government said it will review its cryptocurrency taxation plan after a national petition garnered over 50,000 signatures. The petition calls for canceling or delaying taxes on crypto trading gains. South Korea has been wavering on crypto regulation, and this review reflects domestic divisions over the tax framework for the digital asset industry.
The Federal Reserve has proposed granting limited master account access to crypto firms that have long sought such privileges. This move is seen as a significant signal of shifting US regulatory stance toward the crypto industry. Master accounts allow institutions to directly use the Fed’s payment clearing system, and gaining this access would substantially improve crypto firms’ operational efficiency and fund liquidity. The proposal is currently in the public comment period. ...
[Flash] CME, ICE Push U.S. Regulators to Scrutinize Hyperliquid Over Manipulation Risks The Chicago Mercantile Exchange (CME) and Intercontinental Exchange (ICE) have jointly urged U.S. regulators to scrutinize decentralized derivatives platform Hyperliquid over alleged market manipulation risks. The move by two traditional finance giants signals growing wariness toward emerging competitors in the crypto derivatives space. Hyperliquid’s Policy Center responded that on-chain perpetual contracts offer greater efficiency and transparency.