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On 28 May 2025, the United States Securities and Exchange Commission (US SEC) published Notice of Designation of a Longer Period for US SEC Action on a Proposed Rule Change to List and Trade Shares of Grayscale Avalanche Trust (AVAX) under Nasdaq Rule 5711(d) (Commodity-Based Trust Shares) and thereby announced an extension of its deadline of 15 July 2025 to decide on a proposed rule change submitted by The Nasdaq Stock Market LLC. The rule change seeks approval to list and trade shares of the Grayscale Avalanche Trust (AVAX) under Nasdaq Rule 5711(d), a provision governing the listing of commodity-based trust shares. The US SEC has designated 15 July 2025 as the new date by which it must either approve, disapprove, or initiate proceedings to disapprove the proposal. The Grayscale Avalanche Trust (AVAX) is a commodity-based trust intended to offer investors regulated exposure to Avalanche (AVAX), a Layer 1 proof-of-stake digital asset. While the US SEC’s release does not describe the...

On 29 May 2025, the Division of Corporation Finance of the United States Securities and Exchange Commission (US SEC) issued an interpretive statement titled “Statement on Certain Protocol Staking Activities.” This statement provides the US SEC Division of Corporation Finance’s views on whether specific staking arrangements on public, permissionless networks that use proof-of-stake (PoS) consensus mechanisms involve the offer or sale of securities under the United States Securities Act of 1933 and the United States Securities Exchange Act of 1934. The analysis applies the legal test established in SEC v. W.J. Howey Co. (1946) to self-staking, third-party delegated staking, and custodial staking models involving crypto assets that are integral to the operation of PoS networks—referred to as “Covered Crypto Assets.” The US SEC Division of Corporation Finance concluded that when staking activities are merely administrative or ministerial and do not depend on the entrepreneurial or...

On 28 May 2025, the United States Securities and Exchange Commission (US SEC) published a Notice of Designation of Longer Period for further action on proceedings to determine whether to approve or disapprove a proposed rule change to list and trade shares of the bitwise 10 crypto index fund under proposed nyse arca rule 8.800-e (commodity- and/or digital asset-based investment interests) and announced that it has extended the review period for a proposed rule change by NYSE Arca, Inc. to list and trade shares of the Bitwise 10 Crypto Index Fund. The final decision has now been deferred to 31 July 2025. Now US SEC has more time to evaluate the legal, regulatory, and market impact of this landmark crypto-index ETF. The proposal filed by NYSE Arca on 14 November 2024 seeks approval to list a crypto-based investment product under the newly proposed NYSE Arca Rule 8.800-E, which provides a framework for commodity- and digital asset-based investment interests. The Bitwise 10 Crypto Index...

On 28 May 2025, the United States Securities and Exchange Commission (US SEC) published an order instituting proceedings to determine whether to approve or disapprove a proposed rule change to amend the grayscale ethereum trust etf and grayscale ethereum mini trust etf to permit staking of the ether held by the trusts, which aims to amend the listing conditions for the Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF to allow staking of Ether held by the Trusts. The proposal aims to integrate Ethereum’s Proof-of-Stake (PoS) mechanism into a regulated exchange-traded product structure, which raises novel legal and policy questions under federal securities law. The proposed rule change, filed on 14 February 2025, seeks approval to amend the rules governing the listing and trading of shares of the Trusts under NYSE Arca Rule 8.201-E, which governs commodity-based trust shares. The amendment would permit the Trusts to stake the Ether they hold in the Ethereum...

On 28 May 2025, the US Securities and Exchange Commission (US SEC), through its Crypto Task Force, announced the full agenda and panelist list for the upcoming roundtable titled “DeFi and the American Spirit," to be held on 9 June 2025 from 1:00 p.m. to 5:00 p.m. Eastern time (ET) at the US SEC Headquarters, 100 F Street, N.E., Washington, D.C. The event will be open to the public and webcast live on the official website of US SEC www.sec.gov. The roundtable is a part of the US SEC’s ongoing efforts to foster dialogue on the regulatory implications of Decentralised Finance (DeFi). The event will open with opening remarks by Richard B. Gabbert (Chief of Staff, US Crypto Task Force), US SEC Chairman Paul S. Atkins, and US SEC Commissioners Caroline A. Crenshaw, Mark T. Uyeda, and Hester M. Peirce. From 1:30 p.m. to 3:00 p.m., a moderated roundtable discussion will explore DeFi’s technological landscape and regulatory considerations. The session will be moderated by Troy Paredes...

On 22 May 2025, the United States Commodity Futures Trading Commission (US CFTC) released a CFTC Staff Advisory No. 25-15, reminding Designated Contract Markets (DCMs) and Derivatives Clearing Organizations (DCOs) of their regulatory obligations under the United States Commodity Exchange Act (CEA) and US CFTC regulations concerning market volatility controls. The advisory, jointly issued by the Division of Market Oversight (DMO) and the Division of Clearing and Risk (DCR), provides for preserving market integrity during periods of extreme volatility. The advisory states that DCMs must comply with Core Principle 4 of the CEA, which mandates mechanisms to prevent manipulation, price distortion, and market disruptions. Regulation 38.255 specifically requires DCMs to implement pre-trade risk controls such as trading pauses, price bands, and circuit breakers tailored to their market characteristics. The US CFTC also referred to the United States Futures Industry Association’s (FIA) “Best...

On 21 May 2025, the United States Commodity Futures Trading Commission (US CFTC), through its Market Participants Division and Division of Market Oversight, issued an interpretative letter clarifying the application of cross-border definitions under existing US CFTC regulations. This regulatory clarification was provided in response to a formal request by a proprietary trading firm organised outside the United States. The interpretative letter affirms that, based on the specific facts submitted, the foreign proprietary trading firm is not considered a “person located in the United States” under the definition of a “foreign futures or foreign options customer” as per US CFTC regulation 30.1(c). Further, the firm is not classified as a “participant located in the United States” under US CFTC regulation 48.2(c). US CFTC’s staff determined that the firm qualifies as a “foreign located person” pursuant to US CFTC regulation 3.10(c)(1)(ii), and is not a “U.S. person” under the meaning of...

On 15 May 2025, the United States Securities and Exchange Commission (US SEC), through its Division of Trading and Markets, together with the Office of General Counsel of the Financial Industry Regulatory Authority, Inc. (FINRA), formally withdrew the Joint Staff Statement on Broker-Dealer Custody of Digital Asset Securities issued on 8 July 2019. The withdrawal is effective immediately and was published on the official US SEC website. The original Joint Staff Statement provided guidance on how broker-dealers could comply with existing custody requirements when holding digital asset securities. Its withdrawal, possibly in favour of updated and more comprehensive guidance or forthcoming rulemaking better suited to current market conditions and technological developments. Stakeholders like crypto custodians are directed to the US SEC's Crypto Task Force webpage for additional guidance or to contact Associate Director Michael Macchiaroli and Assistant Director Raymond Lombardo at the...

On 22 May 2025, Bitcoin surged to a new all-time high, surpassing US $111,000, driven by a confluence of favorable regulatory developments and increased institutional investment. Major financial institutions, have begun offering Bitcoin, ETFs to clients, where investors are comfortably crossing traditional finance's approach to digital assets. With the approval of spot Bitcoin ETFs, it attracted inflows over $4 billion entering the market in May alone. The rally also reflects broader macroeconomic factors, such as inflation concerns and a weakening U.S. dollar, prompting investors to seek alternative stores of value. Analysts caution, however, that while the momentum is strong, potential resistance levels around $115,000 could slow the ascent due to market makers' hedging activities. Bitcoin's historic surge past $111,000 is the result of the growing mainstream acceptance of cryptocurrencies. The United States Securities and Exchange Commission (US SEC) continues its Crypto Task...

On 20 May 2025, the United States Securities and Exchange Commission (US SEC) filed a Complaint No. 1:25-cv-04245 demanding jury trial before the U.S. District Court for the Southern District of New York against Unicoin, Inc. (formerly TransparentBusiness, Inc.) and its senior leadership. The complaint, SEC v. Unicoin, Inc. f/k/a TransparentBusiness, Inc., et al., names Alexander Konanykhin (CEO and Board Chairman), Silvina Moschini (former president and current board member), Alejandro Dominguez (former Chief Investment Officer), and Richard Devlin (General Counsel) as defendants. The US SEC alleges that Unicoin and its executives engaged in a large-scale fraudulent offering that raised over $100 million from more than 5,000 investors by marketing rights certificates falsely portrayed as asset-backed crypto instruments. According to the US SEC’s complaint, between February 2022 and May 2025 (the “Relevant Period”), Unicoin and its top executives allegedly launched an extensive,...

On 21 May 2025, the Government of the Hong Kong Special Administrative Region welcomed the passage of the Hong Kong Stablecoins Bill by the Hong Kong Legislative Council, marking the formal adoption of the Stablecoins Ordinance. This landmark legislative development establishes a dedicated licensing regime for fiat-referenced stablecoin (FRS) issuers and sets out stringent regulatory requirements to bolster Hong Kong’s fast-evolving virtual asset (VA) ecosystem. The implementation of the Ordinance will be overseen by the Hong Kong Monetary Authority (HKMA), with strategic guidance from the Hong Kong Financial Services and the Treasury Bureau (HK FSTB). The Stablecoins Ordinance introduces a risk-based, internationally aligned regulatory framework aimed at ensuring financial stability and investor confidence. Under its provisions, any person who, in the course of business, issues a fiat-referenced stablecoin in Hong Kong, or one linked to the Hong Kong dollar irrespective of issuance...