Regulation & Policy

The SEC and CFTC propose to reduce hedge fund reporting requirements by exempting smaller advisors and increasing the asset threshold for Form PF from $150 million to $1 billion, with data used confidentially for oversight.

Hong Kong's SFC launched a pilot framework for secondary trading of tokenised investment products on licensed platforms, enhancing retail access and blockchain settlement. The framework includes investor protection measures and aims to expand the tokenised products market.

The Hong Kong Securities and Futures Commission will issue two guidance circulars for tokenized products in 2026, covering primary-market subscription and redemption and secondary-market trading requirements, respectively. The circulars will clearly define the responsibilities of product providers, liquidity requirements, and fair pricing mechanisms. The new regulatory framework will affect how the industry operates and will create new business opportunities for compliance lawyers, forming a template for tokenized finance regulation in the Asia-Pacific region.

The Hong Kong Securities and Futures Commission will publish a framework in April 2026 that will allow licensed virtual asset trading platforms to conduct secondary-market transactions of tokenized assets, with the first batch including money market funds and future expansion to stocks, bonds, and more. This will make Hong Kong the first market to use Web3 infrastructure, and it will advance in step with the regulatory technology “CrypTech” to establish a regulatory template for tokenized finance. The move is intended to secure Hong Kong’s position as an Asia-Pacific digital-asset hub and to create competitive pressure on Taiwan-based industry players.

The Bank for International Settlements (BIS) once again emphasized the importance of global stablecoin regulatory coordination, pointing out three major risks that stablecoins face at this stage, including regulatory challenges related to cross-border flows and issues with market concentration. BIS proposed a unified ledger framework and argued that central banks need to lead the development of digital currencies, which would pose challenges to existing stablecoin issuers such as Tether and Circle. Overall, in the future, stablecoins may face a more stringent regulatory framework.

Hong Kong's SFC introduced a regulatory framework for trading tokenized investment products, enabling secondary market trading on licensed virtual asset platforms and enhancing access for retail investors.

Central bankers warn that stablecoins may accelerate dollarization in emerging markets and pose financial crime risks due to weak regulatory oversight. They urge for international coordination on stablecoin standards to balance innovation with financial stability.

Charles Schwab is considering introducing prediction markets for financial events amid growing Wall Street interest, while maintaining a focus on wealth management. Regulatory scrutiny is increasing, especially regarding sports and entertainment wagers, highlighted by recent legislation and concerns over insider trading and market manipulation.

A JPMorgan report says legislative negotiations on the U.S. 《CLARITY Act》 are nearing the end, with contentious issues reduced to just 2 to 3 items. The main focus is on DeFi regulation and token classification. The bill aims to establish a regulatory framework for cryptocurrencies, covering issues such as stablecoin rules and the division of regulatory authority. Discussions about stablecoin yield are trending in a more optimistic direction, but the legislative timeline remains uncertain.

Moody’s Analytics said that stablecoins will not replace traditional bank deposits on a large scale in the near term, mainly because the United States’ payment infrastructure is mature and regulatory prohibitions limit their use. But as the stablecoin market capitalization rises, it could over the long term drive outflows from bank deposits and reduce banks’ ability to create credit. In addition, regulatory controversy around the CLARITY Act further increases uncertainty in the market.

Hong Kong officials announced that they are studying the rules for the secondary market of tokenized products, and plan to release details in the first half of 2026. The Hong Kong Monetary Authority has issued the first batch of two stablecoin licenses, driving the development of digital assets, while Hong Kong is also actively expanding the use of tokenized money market funds and green bonds. In addition, the flow of funds between Hong Kong and the Middle East has been increasing as well.

In 2025, France documented 41 crypto-related kidnappings amid rising "wrench attacks," prompting heightened security around blockchain events. Global incidents of coercion surged by 75%, with France leading in cases. Efforts to improve safety and address concerns about becoming a crypto hub are underway.

Crypto Political Action Committee Fellowship PAC releases its first FEC donation disclosure, showing that Cantor Fitzgerald donated $10 million and has a business connection with Tether. Fellowship PAC supports six Republican candidates and paid $4.5 million to NXUM Group for advertising promotion.

Welcome to Latam Insights, a compilation of the most relevant crypto news from Latin America over the past week. In this edition, a draft to repeal all online gambling has been introduced in Brazil, a proposal to include stablecoins to help curb currency restrictions rises in Venezuela, and Latam

Sberbank is preparing to offer cryptocurrency custody and trading services to its 110 million customers, pending regulatory approval from the Central Bank of Russia. New regulations proposed in December aim to facilitate crypto investments while limiting retail purchases.

Alex Thorn from Galaxy Digital warns that the Digital Asset Market CLARITY Act could expand financial surveillance significantly. He highlights concerns about the act's impact on digital asset classification and compliance, while key financial institutions lobby against preferential treatment for tokenized securities.

China's Financial Law Draft aims to unify financial legislation, granting regulators expansive investigative powers. While it strengthens oversight, it lacks focus on emerging sectors like AI and digital currencies, highlighting the need for balance between regulation and innovation.

The U.S. Treasury's OFAC sanctions list includes 518 Bitcoin addresses that have significantly engaged in crypto transactions, currently holding about 9,306 BTC valued at $707 million, highlighting the relationship between cryptocurrency and financial regulation.

The SEC has adopted a more lenient stance on crypto regulation, allowing some interfaces to operate without broker-dealer registration, but has not given blanket approval for the industry. Recent guidance clarifies how crypto assets are categorized, emphasizing that federal securities laws apply mainly to digital securities. Enforcement activity has decreased as the agency focuses on fraud and market integrity.

Poland’s parliament failed to override the president’s veto of the cryptocurrency regulatory bill, stalling the process of digital-asset legislation and making it one of the few countries in the EU that has not yet implemented the MiCA framework. Differences between the president and the government over the bill’s content led to a political stalemate, affecting market confidence and legal transparency.