Regulatory Policy

Focuses on global regulatory developments, policy changes, and compliance requirements. It provides in-depth analysis of government regulations and their impact on the cryptocurrency and blockchain industries, helping businesses and investors proactively manage policy-related risks.

U.S. senators propose ‘Mined in America’ bill to boost Bitcoin mining, formalize strategic reserve

U.S. Senators Bill Cassidy and Cynthia Lummis introduced the "Mined in America Act" to promote domestic Bitcoin mining and reduce reliance on foreign supply chains. The bill establishes a voluntary "Mined in America" certification requiring participants to phase out hardware from foreign adversaries and supports U.S.-based mining equipment development. It also formalizes a Strategic Bitcoin Reserve under the U.S. Treasury, integrating Bitcoin into national financial planning. Despite recent price declines, Bitcoin's hash rate remains high, reflecting continued mining investment and underscoring the strategic importance of securing digital asset infrastructure.

ambcrypto03/30 21:01

U.S. senators propose ‘Mined in America’ bill to boost Bitcoin mining, formalize strategic reserve

ambcrypto03/30 21:01

Coinbase report: Crypto users want to pay taxes, but complexity remains

A Coinbase and CoinTracker report reveals that while the majority of cryptocurrency users intend to comply with tax rules, widespread confusion and complexity hinder compliance. Key findings show 74% of users know crypto is taxable and 65% have reported it previously, but only 49% correctly identify taxable events. New IRS Form 1099-DA, set for 2027, aims to standardize reporting but does not resolve the critical challenge of cost basis calculation. With users averaging 2.5 platforms and 83% using self-custody wallets, tracking original purchase prices remains difficult. Only 35% have adjusted cost basis. As a result, many users are turning to AI, with 47% open to using it for calculations and 30% for the entire tax process, though traditional methods like tax software (78%) and accountants (52%) remain dominant.

ambcrypto03/30 16:10

Coinbase report: Crypto users want to pay taxes, but complexity remains

ambcrypto03/30 16:10

$20 for a Face: The Underground Business of Crypto KYC

Crypto KYC Bypass: A $20 Underground Industry Despite stringent KYC (Know Your Customer) requirements from major crypto exchanges, a thriving underground market exists to bypass these checks for as low as $20. Users often face geo-blocks or lengthy verifications, preventing access to services. This has fueled demand for illicit KYC services. Reports indicate over 500,000 participants in underground KYC markets, with more than 1 million listings selling verified profiles from platforms like Coinbase and Kraken. These accounts often include real personal data, sometimes without the original owners' knowledge. Fraud techniques have evolved, including deepfake attacks (up 2000% in three years), screen-based spoofing, and AI-generated fake documents. The virtual currency sector is the primary target, accounting for over 78% of KYC attacks. An investigation into a Telegram-based KYC vendor revealed a TRON address with over $59,000 in USDT from 600 transactions over two years, all eventually transferred to an OKX hot wallet. An interview with a KYC service provider, "Maoli," who operates in Chinese-speaking regions, detailed the process: clients pay for accounts verified by "foreigners" recruited globally, often from lower-income regions, who perform the KYC steps for a small fee. These accounts are sold with warnings against holding large funds due to fraud risks and potential reclaiming by the original identity owners. Maoli described the business as a "three-way win": users gain access, exchanges get user numbers, and he profits. However, this ignores the victims of identity theft whose data is used without consent. The KYC system, while intended for security, functions as a permeable barrier, with a vast shadow economy ensuring access for those willing to pay.

marsbit03/30 07:36

$20 for a Face: The Underground Business of Crypto KYC

marsbit03/30 07:36

New U.S. AI Policy: Ending the Era of '50 Laboratories,' Washington Opens a New Wide Door

The U.S. is shifting from a fragmented, state-by-state regulatory approach for AI to a unified federal framework, echoing the historical centralization seen with the Interstate Commerce Act of 1887. While this move promises to reduce compliance burdens and enhance competitiveness against global rivals like China, it fundamentally represents a consolidation of regulatory power in Washington. The new policy aims to establish federal preemption over state laws, creating a single set of rules to streamline innovation and maintain U.S. leadership in AI’s scale-driven economy. However, this centralization also risks increased federal control over time, potentially limiting flexibility and introducing future regulatory uncertainties. The framework addresses key areas like child protection, energy costs, intellectual property, and free speech but relies on existing laws and courts rather than a new dedicated agency. Compared to the EU’s safety-first and China’s state-led models, the U.S. prioritizes market scale and innovation speed. For startups, compliance may simplify in the short term, but long-term risks include political volatility and unresolved legal gray areas, particularly around data usage and intellectual property. Ultimately, the era of state-level "laboratories" is ending, replaced by a more efficient but centrally controlled federal "factory."

marsbit03/30 05:55

New U.S. AI Policy: Ending the Era of '50 Laboratories,' Washington Opens a New Wide Door

marsbit03/30 05:55

TRUMP crashes 96% from 2025 ATH – But the team keeps cashing out

Amid a severe downturn in the crypto market, the Official Trump (TRUMP) memecoin has plummeted 96% from its 2025 all-time high. Despite this collapse, the TRUMP team has continued aggressively selling its holdings. Over the past two months, they have cashed out $57 million, including a recent $16 million sale. These sales have contributed to a 41% price drop in two months, with the token trading in a strong downtrend. Market data shows dominant selling pressure in both spot and futures markets, with further decline likely toward $2.5. A reversal would require bulls to defend the $3 support level.

ambcrypto03/30 03:06

TRUMP crashes 96% from 2025 ATH – But the team keeps cashing out

ambcrypto03/30 03:06

Crypto Donations Face Ban As Canada Steps Up Election Security Measures

Canada's "Strong and Free Elections Act" proposes a ban on cryptocurrency, money order, and prepaid card donations to political parties and third-party groups, citing traceability concerns and foreign interference risks. Penalties include fines up to $25,000 for individuals and $100,000 for corporations, plus repayment of up to double the contribution amount. The bill also targets AI-generated deepfakes that mislead voters. This follows a failed 2024 attempt and a recommendation from Canada’s chief electoral officer. The UK action the same day reflects broader Western democratic concerns about anonymous digital payments in elections.

bitcoinist03/30 00:02

Crypto Donations Face Ban As Canada Steps Up Election Security Measures

bitcoinist03/30 00:02

Crypto Giant Bitmain Faces Scrutiny As US Senator Flags Trump Family Ties

A federal investigation into Chinese bitcoin mining hardware manufacturer Bitmain is facing scrutiny from US Senator Elizabeth Warren. The probe, known as "Operation Red Sunset" and led by the Department of Homeland Security, is examining whether Bitmain's mining rigs could be remotely manipulated for espionage or to disrupt the US power grid. Senator Warren has written to the Commerce Secretary, demanding internal documents and communications related to the investigation. She is seeking to understand what actions have been taken to address these potential national security concerns and whether business ties to the Trump family have influenced any decisions. This follows reports that a company co-founded by Eric Trump and Donald Trump Jr. signed a $314 million contract to acquire thousands of Bitmain machines in 2025.

bitcoinist03/29 16:01

Crypto Giant Bitmain Faces Scrutiny As US Senator Flags Trump Family Ties

bitcoinist03/29 16:01

From Cash to Crypto: Towards a Consistent Regulatory Approach to Illicit Payments

"From Cash to Crypto: Towards a Consistent Regulatory Approach to Illicit Payments" by Andrea Minto et al. (BIS) examines the challenges for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regulation posed by the diversification of payment instruments, from cash and bank deposits to cryptoassets and CBDCs. The paper introduces a conceptual framework centered on the degree of intermediary involvement in a payment tool. It identifies a "waterbed effect": as regulators tighten AML/CFT rules on one type of instrument (e.g., bank transfers), illicit activity may shift to less-regulated alternatives with lower detection probabilities (e.g., self-hosted crypto wallets). This regulatory arbitrage undermines overall effectiveness. The framework categorizes payment tools as either intermediary-dependent (e.g., bank deposits, e-money, custodial wallets) where regulated entities perform checks, or non-intermediated (e.g., cash, self-hosted wallets, offline CBDCs) which offer higher anonymity and pose greater detection challenges. Malicious actors are assumed to choose tools that minimize their risk of detection. A case study of the EU's evolving AML/CFT regime illustrates this dynamic, showing how regulation has expanded over time to cover new entities like Crypto-Asset Service Providers (CASPs). However, inconsistencies remain, such as transaction limits for cash but not yet for self-hosted wallets or offline digital euro transactions. The paper concludes by proposing a dual regulatory approach: a *lex generalis* establishing a unified baseline of core obligations for all intermediated tools, and a *lex specialis* with tailored rules for non-intermediated instruments (e.g., transaction limits for cash and offline CBDCs, enhanced "touch point" monitoring for self-hosted wallets). This aims to create a more effective, consistent, and forward-looking framework that balances financial integrity with considerations for user privacy and innovation.

marsbit03/29 12:18

Senator Defends CLARITY Act As Developer Protection Debate Heats Up

A crypto developer's case is driving a key regulatory debate in Washington. Roman Storm, co-founder of Tornado Cash, was convicted in 2025 for operating an unlicensed money-transmitting business, causing concern among developers. This has fueled a public dispute between Senator Cynthia Lummis and crypto attorney Jake Chervinsky over the CLARITY Act. Chervinsky argues that Title 3 of the bill contains broad language that could classify non-custodial software developers as money transmitters, subjecting them to KYC obligations and undermining intended protections. Lummis defends recent bipartisan revisions, calling the act the "strongest protection for DeFi and developers ever enacted." However, the latest text remains unpublished, leaving the industry awaiting concrete details amid high stakes for developer liability. The bill is gaining momentum and is expected to undergo a Senate committee markup in April.

bitcoinist03/29 12:02

Senator Defends CLARITY Act As Developer Protection Debate Heats Up

bitcoinist03/29 12:02

"Crypto Czar" Steps Down: 130-Day Political Performance Concludes, How Much of Trump's Crypto Promises Remain?

David Sacks, known as the "Crypto Czar," has stepped down after reaching the 130-day limit of his special government appointment. Initially appointed by former President Trump to lead AI and crypto policy, Sacks was tasked with creating a clear legal framework for the cryptocurrency industry. During his tenure, he achieved several high-profile actions, including banning a central bank digital currency (CBDC), hosting the first White House Crypto Summit, establishing a strategic Bitcoin reserve, and helping pass the GENIUS Act for stablecoin regulation. However, the article argues that these accomplishments were largely symbolic political performances rather than substantive gains for the crypto industry. The White House Crypto Summit was described as a publicity event with no concrete policies announced. The strategic Bitcoin reserve merely repurposed seized assets without new purchases, failing to inject liquidity or provide strong market backing. While the GENIUS Act was a tangible achievement, its counterpart, the CLARITY Act, remains stalled in Congress due to conflicts between banks and crypto firms over stablecoin interest benefits—with recent drafts favoring traditional banks, contrary to initial pro-crypto promises. Sacks will continue as co-chair of the Presidential Technology Advisory Council, focusing on AI policy, with no mention of crypto. The article concludes that Trump’s pro-crypto promises have largely resulted in political theater rather than meaningful regulatory progress.

marsbit03/29 06:26

"Crypto Czar" Steps Down: 130-Day Political Performance Concludes, How Much of Trump's Crypto Promises Remain?