• USDC Issuer Launches Arc Blockchain; Stablecoin Initiatives Announced
• SEC Issues “Innovation Exemption” for Tokenized Securities Venues, NMS Stock
• Treasury Bulletin Highlights Digital Asset Red Flags Related to Iran
• Paper Addresses Principles for AI in On-Chain Risk Solutions
• BIS Paper Questions On-Chain Indicators as Measures of Economic Activity
• DOJ Seeks Forfeiture of $61M in Crypto; Broker Employees Charged with Fraud

USDC Issuer Launches Arc Blockchain; Stablecoin Initiatives Announced

By Robert A. Musiala Jr.

The issuer of the USDC stablecoin recently announced “the public mainnet launch of Arc, an open Layer 1 blockchain purpose-built for financial markets, real-time money movement, and agentic economic activity.” According to a press release, “Arc launches with native integration into [the company’s] full-stack platform (including USDC, the world’s largest regulated digital dollar, with more than $74 billion in circulation); a founding validator cohort drawn from the institutions that run global finance; more than 100 applications; and more than 100 institutional and ecosystem builders spanning global banks, asset managers, payment networks, exchanges, custodians, [decentralized finance] protocols, wallets, and AI platforms live on day one.”

In more stablecoin news, the largest U.S. crypto exchange recently announced a partnership with Moov, a payments infrastructure provider, to “give community banks stablecoin capabilities: acceptance, settlement, and real-time funding, built directly into the core systems these banks already use.” According to a press release, “Moov is integrating [the exchange’s] stablecoin payments infrastructure into its existing payments platform, giving financial institutions a path to add stablecoin capabilities without building a separate crypto technology stack from scratch.”

In a final notable item, a major U.S. money transfer business recently announced a “stablecoin-backed” payment card that gives customers “the ability to hold a stable-dollar balance, access cash when they need it, or spend … online, in stores and across borders.” According to a press release, the new product was developed in partnership with “Rain, the enterprise-grade infrastructure for stablecoin-powered payments.”

For more information, please refer to the following links:

• Circle Launches Arc Mainnet, an Economic Operating System for the Internet
• Coinbase brings stablecoin payments and custody to community banks and credit unions, in partnership with Moov
• Introducing the MoneyGram Card: Giving Customers More Freedom to Use Their Money, Wherever Life Takes Them

SEC Issues ‘Innovation Exemption’ for Tokenized Securities Venues, NMS Stock

By Robert A. Musiala Jr.

On Sept. 17, the U.S. Securities and Exchange Commission (SEC) issued an “Innovation Exemption” in the form of a 60-page order “granting temporary, conditional exemptive relief to Tokenized Securities Venues (each a ‘TSV’) from the definition of ‘exchange’ in the Securities Exchange Act of 1934 (Exchange Act) to trade tokenized National Market System (‘NMS’) stock using innovative permissioned automated market makers and liquidity pools (together ‘AMM Liquidity Pools’).” According to a fact sheet, the order grants two exemptions:

1. TSV Exemption. A five-year conditional exemption from the definition of “exchange” in the Exchange Act to certain TSVs that provide the use of automated market makers and liquidity pools and set standards for persons to access trading to buy and sell tokenized NMS stock.
2. Covered Firm Exemption. A five-year conditional exemption from the definition of “dealer” in the Exchange Act to certain liquidity providers that provide liquidity in tokenized NMS stock and may also be engaged in additional activities that are indicia of dealing activity, such as quoting pricing to customers or entering into agreements to provide committed capital.

The fact sheet and order provide the following definitions:

• Tokenized Securities Venues (TSVs): “[A]n organization, association, or group of persons that brings together buyers and sellers in tokenized NMS stock by: (1) providing one or more AMM Liquidity Pool(s) for permissioned participants to interact and agree to terms of a trade and (2) setting standards for persons to access trading on such AMM Liquidity Pool(s).”

• Tokenized NMS Stock: “NMS stock that is (1) a security tokenized by, or on behalf of, the issuer of the underlying NMS stock; or (2) a security tokenized by a third party that is unaffiliated with the issuer of the underlying NMS stock… ‘Tokenized NMS stock’ does not include securities where a third party issues a crypto asset representing its own security that provides synthetic exposure to an underlying security, such as a tokenized linked security or a tokenized security-based swap.”

• Automated Market Maker (AMM): “An AMM consists of a smart contract (or smart contracts) that enforces terms of trading, including setting token prices based on the ratio of the quantities of the assets committed to a liquidity pool. AMM smart contracts act in tandem with liquidity pool smart contracts.”

• Liquidity Pool: “A liquidity pool is a portfolio of crypto assets that is algorithmically bound and traded based on the terms of the smart contracts that compose the AMM Liquidity Pool.”

The fact sheet notes that the exemptions addressed by the order are subject to certain conditions identified in the order, including the following conditions:

• Tokenized NMS stock traded on a TSV is subject to limits on the number of symbols and volume traded.
• A TSV must verify that the tokenized NMS stock made available for trading on the TSV provides holders the same rights and privileges as does traditional NMS stock of an equivalent class.
• Before making available for trading tokenized NMS stock that is tokenized by an unaffiliated third party, the TSV must provide written notice and an opportunity to object to the issuer of the underlying NMS stock.
• Smart contracts used by a TSV must be auditable, public and deployed on a public, permissionless distributed ledger.
• A TSV must provide public notice about its operations, its trading activities and the trading activities of its affiliates on the TSV.

In a statement, SEC Chairman Paul S. Atkins noted that the Innovation Exemption is “designed to resolve challenges that have prevented responsible innovation from taking root in the United States while providing investor protections and market integrity standards.” Atkins also underscored that “without exception, the anti-fraud and anti-manipulation provisions of the federal securities laws apply in full to all securities activities in these markets.”

For more information, please refer to the following links:

• SEC Issues “Innovation Exemption” to Facilitate the Trading of Tokenized NMS Stock and Request for Comment
• Release No. 34-106402; File No. 4-927
• FACT SHEET Order Granting Temporary Conditional Exemptive Relief for Trading of Tokenized NMS Stock on Tokenized Securities Venues
• Statement on the Innovation Exemption: A Bridge Toward Durable Rulemaking
• SEC Issues Innovation Exemption For Tokenized Stock Trading

Treasury Bulletin Highlights Digital Asset Red Flags Related to Iran

By Keith R. Murphy

The U.S. Department of the Treasury’s (Treasury) Financial Crimes Enforcement Network issued a recent bulletin addressing the existing whistleblower incentive program for members of the public to submit information about potential violations of statutes enforced by Treasury and the U.S. Department of Justice, including those related to Operation Economic Outcast, which is focused on severing remaining economic lifelines sustaining the Iranian regime. Among other things, the bulletin notes the following red flags involving digital assets that may be indicative of Iranian sanctions evasion or illicit finance schemes by Iran’s terrorist proxies:

• Payments to or from digital asset exchanges or service providers located in Iran or that may be front companies for such entities
• Unusual digital asset payments by petroleum, shipping, trading or trust companies
• Unregistered peer-to-peer exchanges, foreign-located money services businesses and nested digital asset exchanges
• Customer transactions with money services businesses, including those involved in digital assets, or other financial institutions that operate in jurisdictions known for, or at high risk for, terrorist activity and are reasonably believed to have lax customer identification and verification processes or opaque ownership or otherwise fail to comply with AML/CFT best practices
• Customers that receive numerous small digital asset payments from many wallets and then transfer the funds to another wallet, particularly if the customers log in using an Internet Protocol based in a jurisdiction known for, or at high risk for, terrorist activity

For more information, please refer to the following link:

• FinCEN Whistleblower Bulletin: Blow the Whistle on Iran-Related Illicit Finance

Paper Addresses Principles for AI in On-Chain Risk Solutions

By Robert A. Musiala Jr.

A blockchain analytics company, Elliptic, recently published a paper that “sets out eight principles for the responsible design and use of agentic artificial intelligence (AI) in on-chain risk solutions.” According to the paper, “A company evaluating agentic on-chain risk should use these eight principles to assess a vendor and expect a substantive answer for every principle.” The eight principles discussed in the paper are (1) exceptional data quality, (2) model transparency and validation, (3) AI safety, (4) foundation model agnosticism, (5) configurability, (6) human oversight by design, (7) business resilience and (8) empowering the risk professional of the future.

For more information, please refer to the following link:

The Elliptic Standard: Principles for Agentic On-Chain Risk

BIS Paper Questions On-Chain Indicators as Measures of Economic Activity

By Robert A. Musiala Jr.

The Bank for International Settlements (BIS) recently published a paper addressing the reliability of decentralized finance (DeFi) data. According to an abstract of the paper, “Key metrics illustrate that the rapidly evolving DeFi ecosystem introduces unique challenges for economic and financial research in accurately capturing financial activity in DeFi.” According to the abstract, “despite the transparency of public blockchains, widely used indicators of cryptoasset and DeFi activity are highly dependent on methodological choices and underlying assumptions that warrant careful interpretation.” The abstract further notes that the paper’s findings “imply that on-chain indicators should be treated as noisy approximations rather than direct measures of economic activity.”

For more information, please refer to the following link:

• BIS Working Papers No 1377 Hidden by complexity? Measuring stablecoin, crypto and decentralised finance ecosystems

DOJ Seeks Forfeiture of $61M in Crypto; Broker Employees Charged with Fraud

By Amos Kim

The U.S. Department of Justice (DOJ) recently announced the filing of a civil forfeiture complaint against approximately $61 million in cryptocurrency. A DOJ press release notes that the funds represent the proceeds of black-market sales of sanctioned Iranian oil allegedly intended to finance the government of Iran and Iranian military components, including the Islamic Revolutionary Guard Corps (IRGC). According to the press release, the government of Iran used a network of cryptocurrency actors to launder more than $1.5 billion in illicit oil money. The complaint alleges that two Chinese companies, Blessed Trust and Hexa Whale, facilitated these transfers through transactions and cryptocurrency addresses designed to obfuscate the nature, source and ownership of the funds, funneling proceeds to IRGC-related money services businesses, IRGC-related cryptocurrency addresses and an Iranian cryptocurrency exchange.

In a separate enforcement action, the DOJ announced the unsealing of complaints charging two engineers at a major U.S. broker-dealer and crypto exchange with commodities fraud and wire fraud. According to a press release, Hefu Chai and Huaisong Xiang allegedly misappropriated confidential business information to trade perpetual futures on Hyperliquid, a decentralized derivatives exchange. Between 2025 and 2026, the defendants allegedly accessed material nonpublic information regarding when their employer would support additional cryptocurrency tokens on its digital asset trading platform and executed trades in advance of public announcements. U.S. Attorney Jamie McDonald stated that the charges made clear that “corporate insiders cannot evade the securities and commodities laws by trading based on misappropriated information in derivatives like perpetual futures, tokenized securities, or other similar financial instruments.” Both defendants are charged with one count of violating the Commodity Exchange Act and one count of wire fraud.

For more information, please refer to the following links:

• U.S. Attorney Seeks Forfeiture Of $61 Million In Cryptocurrency From The Iranian Military’s Black-Market Oil Sales
• Two Robinhood Employees Charged With Fraud

• Major Banks Announce Stablecoin and Tokenized Deposit Initiatives
• Crypto-Focused Businesses Achieve and Apply for OCC Bank Charters
• Financial Services Firms Announce Crypto Partnerships, Retail Trading
• US Companies Announce Tokenized Securities, Institutional Crypto Initiatives
• SEC Proposes Update to Transfer Agent Rules, Including Use of Blockchain
• FinCEN Alert Addresses Digital Asset Scams
• Treasury, OFAC Target Digital Asset Infrastructure for Global Scam Centers
• Singaporean Ringleader Pleads Guilty in $245M Crypto Racketeering Scheme
• Crypto Hack Data Published; Trezor Breach Impacts 81,000 Customers

Major Banks Announce Stablecoin and Tokenized Deposit Initiatives

By Robert A. Musiala Jr.

According to a recent press release by a major U.S. bank, 21 of the world’s largest financial institutions “announced that they have committed to establish a new company in H2 2026 … to support the issuance of a stablecoin solution.” The press release notes that the forthcoming company “intends to operate globally, with its initial focus on a USD‑denominated stablecoin offering and a longer‑term ambition of expanding issuance into stablecoins denominated in additional G7 currencies, with a EUR offering as a priority.” The group “aims for its stablecoin solution to go to market in the first half of 2027,” according to the release.

Separately, a major U.S. bank announced “the successful execution of a live pilot transaction utilizing USBDC, the bank’s proprietary U.S. dollar-backed stablecoin, to enable a cross-border payment between … entities in North America and Europe.” According to a press release, the pilot transaction was completed on the Stellar blockchain.

In Europe, a licensed bank and financial technology company recently launched EURR, a stablecoin backed 1:1 by euros, to eligible customers in Denmark, Poland and Portugal. The EURR stablecoin was launched on the Polygon Ethereum layer-2 network.

And in a final notable item, two major global banks recently announced “the first successful USD payment between Singapore and the United States executed over a weekend … using tokenised deposits via the Swift Digital Ledger.” According to a press release, “[t]he transaction took minutes to complete, marking a significant improvement from the industry norm of up to two business days for cross-border payments.”

For more information, please refer to the following links:

• Goldman Sachs, BofA and others plan to issue dollar stablecoin together in 2027
• Group of leading international financial institutions to establish stablecoin enterprise
• U.S. Bank Launches USBDC Stablecoin
• Revolut Launches EURR, a Euro-Backed Stablecoin, on Polygon
• DBS and Citi partner to enable instant 24/7 cross-border USD payments with tokenised deposits

Crypto-Focused Businesses Achieve and Apply for OCC Bank Charters

By Keith R. Murphy

According to a recent report, the U.S. Office of the Comptroller of the Currency (OCC) has granted preliminary approval for charter applications submitted by digital banking firms Revolut and OpenReserve, allowing them to pursue the establishment of national banks in the U.S., subject to additional regulatory approvals and other requirements before they can begin operations. Revolut reportedly intends to become a full-service digital bank that offers traditional banking services alongside digital asset custody and cross-border payment capabilities using cryptocurrencies and stablecoins, along with a company-branded stablecoin through a third-party arrangement. Relatedly, OpenReserve plans to operate as a full-service insured national bank providing deposit, lending, digital asset and foreign correspondent banking services, and intends to create a wholly owned subsidiary dedicated to issuing, holding and converting U.S. dollar-backed stablecoins, according to the report.

In related news, Block Inc. announced that it has applied to the OCC seeking a national trust bank charter to establish Builders Bank & Trust N.A., an uninsured national trust bank, according to a recent press release. If approved, Builders Bank would operate under federal OCC supervision and provide custody and related fiduciary services, including for bitcoin and stablecoins, as noted in the release. Builders Bank reportedly would not accept deposits or make loans but would instead focus on custody and related trust services.

For more information, please refer to the following links:

• OCC Gives Initial Nods To Digital Banks Revolut, OpenReserve
• Re: Application to Charter OpenReserve Bank
• Block Applies to Establish Builders Bank, a National Trust Bank

Financial Services Firms Announce Crypto Partnerships, Retail Trading

By Robert A. Musiala Jr.

A major U.S. bank and issuer of the SoFiUSD stablecoin recently announced a partnership with an affiliate of a major U.S. crypto exchange “to enhance banking, payments, liquidity, and digital asset markets.” According to a press release, through the partnership, each company will leverage various institutional digital asset solutions offered by the other.

In related news, a major U.S. financial services company recently announced plans to expand its retail digital asset trading offering to allow clients to buy and sell solana, avalanche and chainlink. The company began offering BTC and ETH trading in May 2026.

And in Dubai, a major global bank recently announced “the expansion of its institutional Bitcoin (BTC/USD) and Ether (ETH/USD) spot trading in the UAE.” According to a press release, this makes the bank “the first Global Systemically Important Bank (G-SIB) to offer the capability in the market and the only global bank currently offering institutional digital asset spot trading in the region.”

For more information, please refer to the following links:

• SoFi and Payward Partner to Connect Banking and Digital Asset Markets
• Standard Chartered becomes first Global Systemically Important Bank (G-SIB) to launch Institutional Bitcoin and Ether spot trading in the UAE
• Charles Schwab Announces Plans to Expand Digital Assets Available in Schwab Crypto™ Accounts

US Companies Announce Tokenized Securities, Institutional Crypto Initiatives

By Robert A. Musiala Jr.

A recent press release announced that “a leader in blockchain-powered financial infrastructure,” and one of the world’s leading operators of global financial exchanges, have entered into a Memorandum of Understanding (MOU) supporting “a set of agreements to support tokenized securities markets.” According to the press release, under the MOU, the blockchain financial infrastructure provider will act as “a premier design partner in developing digital transfer agent and broker-dealer infrastructure intended to support on-chain settlement of tokenized securities transactions” on the financial exchange operator’s “upcoming NYSE-affiliated tokenized securities platform.” The MOU also allows the exchange operator to license the infrastructure provider’s blockchain patent portfolio, which encompasses “23 patent families and 103 patents that underpin key elements of the security token lifecycle.”

In a related development, BitGo, a major U.S. digital asset infrastructure company, recently announced that it has “completed the acquisition of the institutional trading business and related assets of NYDIG.” According to a press release, “[t]he transaction expands BitGo’s institutional service offering” and is expected to enable expansion of BitGo’s institutional markets platform “by enhancing financing capabilities and derivatives intended to enhance the Company’s existing trading offerings while complementing BitGo’s regulated custody, settlement, and wallet infrastructure.”

For more information, please refer to the following links:

• tZERO and ICE Agree to Collaborate on Infrastructure for Public Tokenized Securities Markets, Including Licensing tZERO’s Blockchain Patent Portfolio
• BitGo Acquires NYDIG’s Institutional Trading Business, Expanding Derivatives and Financing Capabilities

SEC Proposes Update to Transfer Agent Rules, Including Use of Blockchain

By John Robertson

The U.S. Securities and Exchange Commission (SEC) recently published a proposed update to the rules and forms that apply to registered transfer agents. According to a fact sheet, among other things the proposal would:

• Modernize the rules to reflect how transfer agents carry out their activities in light of technological advancements, including the use of electronic and blockchain-based recordkeeping and uncertificated securities.
• Extend the effective date of registration in existing Rule 17ac2-1 from 30 days after the Form TA-1 to 45 days.
• Amend Rule 17ac2-2 to require transfer agents to file an amended Form TA-2 within 60 days after discovering information on a previously filed Form TA-2 was materially inaccurate, incomplete or misleading at the time of filing.
• Establish a single retention period for most transfer agent records and modernize the rule provisions governing use of electronic systems and third parties for recordkeeping.
• Update rules regarding turnaround and processing times, aligning the turnaround time with the current settlement cycle, and increasing the threshold from 75 percent to 95 percent for the imposition of limitations on expansion.
• Reframe Rule 17ad-12 as a comprehensive risk management rule where transfer agents will be required to establish, maintain and enforce written policies and procedures to ensure securities and funds in the transfer agent’s possession are protected against modern risks identified by the revised rule.
• Require transfer agents to maintain a separate bank account for holding third-party funds and establish a business continuity plan.
• Require prompt posting to master securityholder files aligning the time frame to the modern settlement cycle.
• Require transfer agents to establish, maintain and enforce policies and procedures designed to comply with federal securities laws, including the new proposed rules.

For more information, please refer to the following links:

• SEC Proposes to Modernize Rules for Registered Transfer Agents
• Proposed Rule: Transfer Agent Rules

FinCEN Alert Addresses Digital Asset Scams

By Ariana Dindiyal

Digital asset investment scams are a significant threat to Americans that have resulted in billions of dollars of losses. Commonly known as “pig butchering,” “romance baiting” or “cryptocurrency confidence schemes,” these sophisticated fraudulent operations are typically orchestrated by transnational criminal organizations based in Southeast Asia. Through them, criminals use fake personas and social engineering tactics to manipulate victims into transferring substantial sums of money into fraudulent investment platforms.

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) recently published an analysis and alert warning financial institutions to be vigilant with regard to increased activity from these scams. According to FinCEN, data from the Federal Bureau of Investigation’s Internet Crime Complaint Center shows that U.S. victim losses from these scams have surged nearly 700 percent from $907 million in 2021 to $7.2 billion in 2025. 

In the alert, FinCEN identified 16 specific red flag indicators to help financial institutions detect, prevent and report suspicious activity related to scam centers. FinCEN also explained how scam centers operate to launder proceeds and reminded institutions of relevant Bank Secrecy Act (BSA) reporting obligations, filing instructions and tools to assist with reporting suspicious transactions. The alert notes that financial institutions filing suspicious activity reports (SARs) related to scam centers should reference “FIN-2026-SCAMCENTERS” in SAR field 2 and the SAR narrative.

The alert was informed by FinCEN’s September 2026 Financial Trend Analysis, which examined 33,904 BSA reports involving suspected digital asset investment scam-related activity filed between September 2023 and December 2025. The analysis covers various scam methodologies, including the use of “guarantee marketplaces,” a medium by which scam center operators purchase illicit services to perpetuate fraud, launder money, and integrate scam proceeds into the financial system through networks of money mules and stablecoin transfers to digital asset exchanges outside of the U.S. The analysis also discusses tactics, techniques and procedures that digital asset investment scammers rely on.

For more information, please refer to the following links:

• FinCEN Alert on Money Laundering Activity Associated with Digital Asset Investment Scam Centers
• Digital Asset Investment Scams:  2023-2025 Threat Pattern & Trend Information
• FinCEN Identifies Nearly $13 Billion Linked to Suspected Digital Asset Scams Operated by Overseas Scam Centers

Treasury, OFAC Target Digital Asset Infrastructure for Global Scam Centers

By Om M. Kakani

On Sept. 9, the U.S. Department of the Treasury (Treasury) Office of Foreign Assets Control (OFAC) announced sanctions against Xinbi Guarantee, a Chinese-language online platform that Treasury described as a major illicit marketplace supporting cyber scams, fraud, money laundering and other criminal activity targeting U.S. victims. According to Treasury, Xinbi Guarantee functions as a hub connecting scam center operators with vendors offering financial services, technology, escrow arrangements and other tools used to facilitate online fraud schemes. Treasury stated that the platform has processed more than $24 billion equivalent in digital assets and fiat currency since approximately 2022 and has become increasingly important to cybercriminal networks operating in Southeast Asia. Treasury’s action was coordinated with the Department of Justice’s Scam Center Strike Force, which simultaneously seized infrastructure and digital asset wallets associated with the platform.

The sanctions also targeted two companies alleged to have provided key services supporting Xinbi Guarantee’s operations. Treasury designated SafeW Technology Co. Ltd., a Singapore-based developer of an encrypted messaging platform used by marketplace participants, and Anwen Technology Co. Ltd., a Cambodia-based company linked to the development of a cryptocurrency payment and digital wallet application known as XinbiPay or NewPay. Treasury alleged that these entities materially assisted Xinbi Guarantee by providing technological and financial services that facilitated scam center activity and the movement of funds through digital asset ecosystems. The sanctions block the designated parties’ property and interests in property subject to U.S. jurisdiction and generally prohibit transactions involving U.S. persons.

In connection with the designations, OFAC added numerous digital asset wallet addresses associated with the sanctioned entities to the Specially Designated Nationals and Blocked Persons (SDN) List. The announcement follows a series of recent actions by Treasury and FinCEN addressing digital asset investment fraud, online scam centers, money laundering networks and the use of cryptocurrency infrastructure to facilitate illicit financial activity. Treasury indicated that the sanctions were intended to disrupt the financial and technological networks supporting these operations and to limit their access to the U.S. financial system.

For more information, please refer to the following links:

• Treasury Cracks Down on Transnational Criminal Organization Behind Cyber Scam Operations Targeting Americans
• Transnational Criminal Organizations Designations; Counter Terrorism Designation; Issuance of New and Amended Frequently Asked Questions

Singaporean Ringleader Pleads Guilty in $245M Crypto Racketeering Scheme

By Om M. Kakani

On Sept. 8, the U.S. Department of Justice (DOJ) announced that a Singaporean national pleaded guilty to leading a cryptocurrency-focused racketeering enterprise that generated approximately $245 million through theft, fraud and money laundering. According to DOJ, the enterprise targeted cryptocurrency holders and used a variety of techniques to obtain digital assets from victims. Prosecutors alleged that members of the enterprise obtained unauthorized access to victims’ cryptocurrency accounts and wallets, transferred digital assets under their control, and engaged in extensive laundering of the proceeds through numerous cryptocurrency transactions, exchanges and accounts designed to conceal the source and ownership of the stolen funds. As part of the guilty plea, the defendant admitted to participating in a racketeering conspiracy and agreed to forfeit assets connected to the criminal activity.

For more information, please refer to the following link:

• Singaporean Ringleader of $245 Million Cryptocurrency Racketeering Enterprise Pleads Guilty in Washington D.C.

Crypto Hack Data Published; Trezor Breach Impacts 81,000 Customers

By Amos Kim

According to a recent report, 60 percent of hacked crypto platforms had completed independent security audits before they were exploited. The report tracked losses from January 2025 through July 2026, documenting $3.63 billion stolen across 245 separate incidents. The analysis shows that infrastructure and supply chain vulnerabilities were the primary drivers of losses, accounting for more than $1.8 billion, while smart contract exploits at decentralized applications cost $546 million. According to the data, only about 11 percent of all incidents involved vulnerabilities that fell within the actual scope of a completed audit. The report notes that more than 89 percent of losses stemmed from attack surfaces, such as infrastructure, key management and governance layers, that typical smart contract audits do not cover.

Separately, another recent report details a supply chain breach affecting crypto wallet manufacturer Trezor that now impacts 81,000 customers. According to the report, a breach at Trezor’s logistics partner exposed customer information including names, emails, phone numbers, shipping addresses and order numbers. The incident reportedly involved order data from November 2019 through August 2021, in addition to previously disclosed data from May 10 through Aug. 8, 2026. Following the breach, Trezor warned customers of an increased risk of phishing, scam emails, fraudulent calls and potential physical security risks stemming from the leaked information. The report notes that Trezor claimed its logistics partner had failed to delete the data despite providing written assurances that it had done so and is evaluating potential legal action.

For more information, please refer to the following links:

• Trezor Supply Chain Breach Now Impacts 81,000 Customers
• CoinGecko report: 60% of hacked crypto platforms had security audits

• Banks Announce BankChain Alliance, Tokenized Deposit, Stablecoin Initiatives
• U.S. Companies Announce Tokenized Securities Initiatives
• Reports Provide New Data, Analyses on U.S. Crypto Market
• Blockchain Analytics Company Previews Crypto Tax Report Findings
• Treasury Iran Sanctions Campaign Targets Digital Assets

Banks Announce BankChain Alliance, Tokenized Deposit, Stablecoin Initiatives

By Robert A. Musiala Jr.

According to an Aug. 25 press release, “39 state bankers associations announced the formation of BankChain Alliance to provide customers across the country secure, modern banking services at financial institutions of all sizes.” The BankChain Alliance network is “creating an industry-owned, industry-designed and industry-governed network built on a common blockchain platform” that “will allow participating financial institutions the ability to provide emerging banking capabilities while maintaining the regulatory standards, security, and trust that customers expect from their banks,” according to the press release. The press release also notes that the new network will enable “smart payment tools, tokenized deposits, stablecoins, automated settlement, and other innovations.”

In related news, two major global banks recently announced “the successful completion of bank-to-bank tokenised deposit interoperability through the execution of the first live cross-border transaction on Swift’s blockchain-based ledger.” According to a press release, the event “marks a milestone in the use of tokenised deposits by regulated financial institutions to issue, transfer, record and settle tokenised deposits through Swift’s blockchain-based ledger, not only demonstrating interbank interoperability, but helping advance industry progress on 24/7 cross-border payments.”

One of the same banks also recently announced “that it has become an authorised distributor of HKDAP (“HKD At Par”), the first regulated Hong Kong Dollar-backed stablecoin.” According to a press release, the bank “is ready to support use cases and actively engaging with eligible institutional clients and partners to integrate HKDAP into their business activities.”

For more information, please refer to the following links:

• State Bankers Associations Announce Industry-Owned Blockchain Network
• [] and [] execute first live tokenised deposit transaction on Swift’s blockchain-based ledger
• [] becomes first bank distributor of HKDAP to unlock real-economy benefits of HKD stablecoins

U.S. Companies Announce Tokenized Securities Initiatives

By Robert A. Musiala Jr.

A major U.S. crypto exchange recently announced the launch of “tokenized stocks” issued by the exchange and available on the Base Ethereum Layer-2 network. According to a company blog post, “These are real shares, held 1:1 by a regulated custodian, owned outright by whoever holds the token.” The blog post further notes that “[u]sers can now hold tokenized, fractional shares” of major U.S. public companies “directly in their self-custody wallets” and use the tokenized stock “across the Base DeFi ecosystem.” The same crypto exchange also recently announced support for “crypto-backed mortgages” that allow users to “pledge your crypto without selling it to fund the down payment on a home purchase.”

In related news, a major U.S. asset tokenization company, Securitize, recently announced “the launch of the Neuberger Securitize High Income Tokenized Fund (“HINC”).” According to a press release, Securitize and its affiliates will “offer[] interests in the fund to eligible investors” and “provide tokenization, fund administration and related operational services.”

In a final notable item, the issuer of the USD1 stablecoin recently announced that USD1 is now available on the Canton Network. According to a press release, “On Canton, USD1 is available to support collateralization for derivatives and institutional lending, instant cross-border payments with 24/7 settlement, onchain asset issuance, funding and redemption, and financing across institutions and markets.”

For more information, please refer to the following links:

• Stocks just got updated.
• [] tokenized stocks go live on Base with Chainlink price feeds
• Crypto-backed mortgages
• Securitize and Neuberger Launch New Tokenized Fixed Income Fund
• [] USD1 on Canton Network to Accelerate RWA Tokenization

Reports Provide New Data, Analyses on U.S. Crypto Market

By Robert A. Musiala Jr.

Multiple recent reports provide new data and analyses on the U.S. crypto asset market. In one report, a major U.S. crypto exchange published its 2026 Institutional Investor Digital Assets Survey. Among its many findings were: (1) 49 percent of institutions surveyed have strengthened their emphasis on risk management, liquidity and position sizing; (2) nearly three‑quarters of respondents plan to increase crypto allocations and 74 percent expect crypto prices to rise over the next 12 months; (3) 66 percent of respondents reported exposure via spot crypto exchange-traded products and 81 percent through a registered vehicle; and (4) institutions report using stablecoins to manage cash, move money and settle trades in near real time.

In another report, a major U.S. financial institution published its Q2 2026 Signals Report. Key findings from the report include: (1) BTC continues to anchor market resilience, with unrealized profits and dominance metrics indicating capital remains concentrated in BTC; (2) momentum and profitability indicators signal an ongoing corrective phase, suggesting the market is stabilizing; and (3) network activity increasingly diverges from price, particularly across Ethereum and Solana, highlighting sustained utility at the protocol level.

Finally, zerohash recently published its 2026 Stablecoin Momentum Report. Notable statistics cited in the report include:

• By the end of 2025, total stablecoin market capitalization surpassed $300 billion, with annual transaction volumes reaching approximately $46 trillion, signaling scale comparable to major global payment networks.
• From Q4 2024 to Q4 2025, the number of customers actively transacting with stablecoins increased 55 percent, while transaction count grew 195 percent over the same period.
• The market cap of all USD stablecoins has increased from $200 billion at the beginning of 2025 to $292 billion as of Jan. 14, 2026.
• USD stablecoins remain dominant, accounting for approximately 95 percent of all total stablecoins.
• Major U.S. retailers have reportedly been exploring issuance of their own dollar-backed stablecoins that would bypass traditional card networks.

For more information, please refer to the following links:

• 2026 Institutional Investor Digital Assets Survey
• Q2 2026 Signals Report
• The 2026 Stablecoin Momentum Report

Blockchain Analytics Company Previews Crypto Tax Report Findings

By Keith R. Murphy

A major blockchain analytics company, Chainalysis, recently published blog posts previewing its report titled The Crypto Tax Report: Mapping Global Taxable Activity with On-Chain Data (Report). As noted in the posts, potentially taxable on-chain crypto activity worldwide – including trading gains, on-chain income and digital payments – amounted to more than $457 billion in 2025, with the United States accounting for approximately $112 billion of that amount. The posts suggest that in the absence of blockchain intelligence to complement traditional reporting, taxing authorities risk having insight into only a fraction of crypto activity that is relevant to tax calculations and risk assessment. Among other things, the Report notes the following:

• Trading, staking and lending conducted inside centralized exchanges are not visible on-chain and Chainalysis’ estimates likely understate total economic income. 
• In order to address reported shortfalls of voluntary declarations of crypto transactions, the OECD released the Crypto-Asset Reporting Framework (CARF) in late 2022, but while CARF, the European Union’s DAC 8 and domestic information reporting reforms are positive steps forward, material portions of DeFi, peer-to-peer transfers, private wallet holdings and historic activity fall outside their scope.
• The Report covers on-chain activity across the Bitcoin, Ethereum, Solana, Tron, BNB Smart Chain and Base blockchains.
• The Report maps activity across regions and countries, providing taxing authorities with a geolocated view of potentially taxable activity within their jurisdictions.
• Case prioritization insights in the Report show how on-chain intelligence may assist tax authorities in identifying high-value, high-risk wallets and focus enforcement where it matters most.

For more information, please refer to the following links:

• What Blockchain Data Tell Us About $457+ Billion in Potentially Taxable Crypto Activity
• The Crypto Tax Report: Mapping Global Taxable Activity with On-Chain Data

Treasury Iran Sanctions Campaign Targets Digital Assets

By Amos Kim

According to a recent press release, the U.S. Department of the Treasury recently began Operation Economic Outcast, describing it as an unprecedented, whole-of-government economic campaign against the Islamic Republic of Iran and its enablers. The press release notes that the Office of Foreign Assets Control (OFAC) sanctioned nearly 60 entities, individuals and vessels spanning networks involved in nuclear and missile technology procurement, cyber operations and oil-revenue generation. The Treasury also announced that OFAC issued five sectoral sanctions determinations expanding categories of Iran-related activity subject to secondary sanctions to include the digital assets, technology, gold, aviation and shipping sectors.

In a related development, a recent report by TRM Labs highlighted that five individuals named in the OFAC designations were also charged in a superseding indictment by the U.S. Department of Justice relating to the Mabna Institute, an Iran-based company that conducted cyber intrusions as a hacking-for-hire group on behalf of the government and other clients. The report notes that OFAC identified 30 cryptocurrency addresses controlled by four of the defendants across the Bitcoin, Ethereum and TRON networks. According to TRM Labs’ analysis of the 30 addresses, the wallets received approximately $16.8 million in total funds, with 92 percent of the on-chain volume concentrated in one defendant’s addresses.

For more information, please refer to the following links:

• Treasury Launches Unprecedented Campaign Against Iranian Regime on Economic D-Day
• Operation Economic Outcast: Treasury Sanctions Nearly 60 Iran-linked Targets and Names Digital Assets a Sanctionable Sector

• U.S. Bank Announces Digital Asset Custody; Tether Completes ‘Big Four’ Audit
• Crypto Companies Announce New Products; Solana Q2 Report Published
• SEC Proposes Exemptions for Investment Contracts Involving Crypto Assets
• GENIUS Act Proposed Rule Addresses Stablecoin Issuance, Offers, Sales
• FASB Proposes Accounting Standards Update Addressing Digital Assets

U.S. Bank Announces Digital Asset Custody; Tether Completes ‘Big Four’ Audit

By Robert A. Musiala Jr.

A major U.S. bank recently announced the launch of its Custody+ product, which is described in a press release as “a comprehensive suite of near- and real-time solutions to meet always-on industry demand.” According to the press release, as part of the new Custody+ product, the bank “expects to go live with digital asset custody later this year, starting with the custody of Bitcoin.” The press release further notes that with the new product, the bank’s clients “will access traditional and crypto custody capabilities within the same framework for an integrated experience.”

In another recent press release, Tether, the issuer of the USDT stablecoin, announced “the successful completion of a full independent audit of Tether International, S.A. de C.V.’s financial statements for the year ended December 31, 2025” by a U.S. “Big Four” accounting firm. According to the press release, the Big Four accounting firm “issued an unqualified audit opinion of Tether’s financial statements, meaning in [the firm’s] opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the year ended in accordance with U.S. generally accepted accounting principles.”

For more information, please refer to the following links:

• Citi Unveils Custody+: A Suite of Near- and Real-time Custody Solutions to Meet Always-On Industry Demand
• Tether Completes the Largest Inaugural Financial Audit in History

Crypto Companies Announce New Products; Solana Q2 Report Published

By John E. Robertson

A major blockchain payments company, Polygon Labs, recently announced it was joining Phase 2 of the Bank of England’s Digital Pound Lab. Reports indicate the Lab allows participants to test blockchain infrastructure against a simulated digital pound without the cost, risk, or regulatory oversight of a live pilot. Polygon Labs stated it joined the Lab in order to test whether a stablecoin and a digital pound can settle the same cross-border payment, in the same flow, without either side waiting on the other. The company is said to be developing the stablecoin settlement leg to the transaction and the smart contract infrastructure while the Lab will settle the digital pound.

In other news, a major U.S. cryptocurrency exchange announced the launch of its new debit card in the United States. According to a company blog post, the debit card offers users 2% cashback in either USD or BTC on everyday spending. The exchange also announced the launch of U.S.-listed stocks for its European customers. A company blog post notes the stocks will be available as tokenized U.S. equities backed 1:1 by underlying stock. According to the blog post, the tokenized equities will be tradable during hours when the public market is closed while still maintaining the full 1:1 backing.

Finally, a major U.S. digital assets company recently published a report analyzing activity on the Solana blockchain during Q2 2026. Key findings from the report include:

• Median slot duration remained at the 400-millisecond target for the entirety of Q2 with zero downtime for the ninth consecutive quarter.
• Block compute limits were increased from 60 million to 100 million compute units.
• A major client grew from 28% to 33% of the Block Assembly marketplace by enabling the use of plugins for applications to control transaction ordering and enabling the same functionality on the general-purpose blockchain.
• DEX volume fell 45% quarter-over-quarter, although June DEX volume rebounded 20% month-over-month.

Solana recorded as high as 95%+ of total tokenized equity trading throughout the quarter.

For more information, please refer to the following links:

• Polygon Labs Joins NOBO Finance and Dun & Bradstreet in Phase 2 of the Bank of England’s Digital Pound Lab
• Krak Card launches in the US: up to 2% cashback, 600+ currencies
• Announcing US-listed-stock trading for EEA customers
• Solana Q2 2026 Update: Building for the Tokenized Economy

SEC Proposes Exemptions for Investment Contracts Involving Crypto Assets

By Robert A. Musiala Jr.

On Aug. 18, the U.S. Securities and Exchange Commission (SEC) published a 402-page proposed rule titled Regulation Crypto Assets (Reg Crypto). According to a fact sheet, Reg Crypto would create “a tailored offering regime for certain investment contracts involving crypto assets” (covered investment contracts) with four key parts:

1. Startup Exemption: The Startup Exemption would be a one-time, non-exclusive exemption from the registration requirements of the Securities Act of 1933 (Securities Act) during a four-year period for offerings of up to $5 million of covered investment contracts. To qualify, issuers would have to satisfy certain conditions, including making public filings and investor disclosures.
2. Fundraising Exemption: The Fundraising Exemption would be a non-exclusive, two-tier exemption from Securities Act registration requirements, modeled in part on Regulation A. Issuers would be permitted to conduct offerings of up to $20 million (Tier 1) and $75 million (Tier 2) of covered investment contracts in a 12-month period. Issuers would be required to publicly file (i) offering materials consisting of the same narrative disclosures required under the Startup Exemption, (ii) a discussion of the issuer’s financial condition, and (iii) financial statements (audited for Tier 2). Issuers also would be subject to ongoing reporting modeled on analogous provisions in Regulation A.
3. Investment Contract Safe Harbor: The Investment Contract Safe Harbor would provide a conditional safe harbor from the term “investment contract” in the definitions of “security” in the Securities Act and the Securities Exchange Act of 1934. If the safe harbor conditions are met, the SEC would take the position that a crypto asset subject to the investment contract does not constitute or represent and is not subject to such investment contract for purposes of the statutory definition of a “security.” The Investment Contract Safe Harbor would be satisfied if the issuer of a covered investment contract has (i) completed or otherwise permanently ceased all essential managerial efforts that it represented or promised it would engage in under the covered investment contract and is not making and does not intend to make any new representations or promises to engage in essential managerial efforts with respect to the underlying crypto asset, and (ii) made a public filing certifying that it has satisfied the conditions of the safe harbor and providing an analysis supporting that certification.
4. Qualified Purchaser Definition: Reg Crypto would add a Qualified Purchaser definition under the Securities Act that would preempt state securities law registration and qualification requirements with respect to offers and sales of covered investment contracts issued pursuant to Reg Crypto. With respect to secondary market transactions by any person other than an issuer, underwriter, or dealer, the proposed amendments would preempt state securities law registration and qualification requirements for covered investment contracts that were initially sold by the issuer pursuant to an exemption in Reg Crypto. This secondary market preemption would continue for the period during which the issuer continues to satisfy the applicable Reg Crypto information and filing and/or periodic reporting requirements.

Comments on the proposed rule are due 60 days from the date the proposed rule is published in the Federal Register.

For more information, please refer to the following links:

• FACT SHEET: Regulation Crypto Assets
• Proposed Rule: Regulation Crypto Assets
• SEC Proposes Long-Awaited Crypto Offering Exemptions

GENIUS Act Proposed Rule Addresses Stablecoin Issuance, Offers, Sales

By Ariana Dindiyal

On Aug. 18, the U.S. Department of the Treasury (Treasury) published an 87-page proposed rule that would implement Section 3 of the GENIUS Act regarding the statutory prohibitions and limitations on payment stablecoin issuance, offer, and sale in the United States.

In a press release, Treasury outlined the new proposed rule, which would define what counts as stablecoin issuance, restrict the offering and sale of stablecoins from unauthorized issuers, and clarify how foreign stablecoin issuers may serve customers in the U.S. or steer clear of its regulatory perimeter. The proposal specifically seeks to clarify topics such as the circumstances under which a company would be deemed to “issue” a stablecoin, when a foreign issuer would qualify as a U.S. issuer, a potential pathway for foreign issuers to serve U.S. customers, and limits for crypto exchanges, crypto custodians, and other digital asset service providers, which are barred under the GENIUS Act from offering or selling unregistered stablecoins to U.S. customers.

The proposed rule additionally calls for codifying certain exemptions from the GENIUS Act, including for direct peer-to-peer transfers of stablecoins and transfers between a customer’s U.S. and foreign accounts within a single corporate family. 

“Treasury welcomes input from stakeholders as we work to provide the regulatory certainty businesses need to innovate and grow in America, cement the role of the U.S. dollar as the world’s reserve currency, and keep America the crypto capital of the world,” Secretary of Treasury Scott Bessent commented in a recent statement announcing the proposal. The proposed rule includes 87 specific questions on which Treasury is seeking public comment. The draft rules will be open for 60 days of public comment after the Aug. 18 Federal Register publication date.

For more information, please refer to the following links:

• Treasury Seeks Public Comment on GENIUS Act Proposed Rulemaking
• GENIUS Act Regulations on Payment Stablecoin Issuance, Offer, and Sale
• Treasury Plan Would Map Boundaries Of US Stablecoin Market

FASB Proposes Accounting Standards Update Addressing Digital Assets

By Robert A. Musiala Jr.

The Financial Accounting Standards Board (FASB) recently published a proposed Accounting Standards Update (ASU) “intended to clarify how the current definition of cash equivalents applies to certain digital assets, such as stablecoins, and to increase transparency about the significant components of cash equivalents.” According to a FASB press release, the proposed ASU would not change the current definition of “cash equivalents” but would “provide illustrative examples to promote more consistent application of that definition and improve comparability among entities that elect to present qualifying digital assets as cash equivalents.” The proposed ASU would also “require all entities to provide enhanced disclosures of significant components and related amounts of cash equivalents, regardless of whether any of those assets are digital assets.”

For more information, please refer to the following link:

• FASB Seeks Public Comment on Proposal to Enhance Cash Equivalents Disclosures and Clarify the Cash Equivalents Evaluation for Certain Digital Assets

• U.S. Companies Expand Digital Asset Networks, Seek OCC Trust Charters
• U.S. Crypto Exchanges Launch Tokenized Securities Products
• Digital Asset Trading, Infrastructure Firms Launch U.S. Broker-Dealer Affiliates
• OFAC Sanctions Two Crypto Exchanges for Facilitating Iran Sanctions Evasion
• Crypto Enforcement Actions Announced by DOJ, SEC, CFTC

U.S. Companies Expand Digital Asset Networks, Seek OCC Trust Charters

By Robert A. Musiala Jr.

A major U.S. and international payments company recently announced that “Ramps,” its “global cash and digital network,” is now live on the Solana blockchain. According to a press release, “The expansion gives wallets, exchanges and developers across Solana direct access to trusted fiat on- and off-ramp infrastructure.” The press release further notes that “Rift is the first wallet on Solana to integrate Ramps, giving its users seamless access to move between crypto and local currency through [the Company’s] trusted global network.”

In related news, fintech startup Zaria Systems Inc. recently announced that it has submitted an application to the U.S. Office of the Comptroller of the Currency (OCC) to establish Zaria National Trust Bank (ZNTB), “a special-purpose national bank that will limit its activities to the operations of a trust company and related activities.” According to a press release, ZNTB “plans to offer corporate trustee and agency services, loan servicing, collateral management, and backup servicing to banks, lenders, and asset managers operating across traditional and digital asset markets.”

For more information, please refer to the following links:

• [] Ramps Goes Multichain with Solana Launch
• Zaria Files Application with the OCC to Charter Zaria National Trust Bank
• Fintech Seeks OCC Trust Charter For Crypto Loan Servicing

U.S. Crypto Exchanges Launch Tokenized Securities Products

By Robert A. Musiala Jr.

Two major U.S. cryptocurrency exchanges recently announced new tokenized securities offerings. One exchange launched its “Tokenized Stocks” product to “eligible users” in the European Economic Area. According to a press release, the Tokenized Stocks product is available 24/7 and provides “a new way for users to gain exposure to U.S. equities and ETFs directly” through the crypto exchange’s trading app. The press release also notes that the product offers exposure to “1,500 underlying stocks and funds,” including U.S. equities and exchange-traded funds (ETFs).

Another major U.S. crypto exchange announced that it is “bringing the S&P 500 to … our funded trading program, marking our second TradFi market after Nasdaq 100.” According to a press release, “[b]etween the two, we now carry the world’s largest and most-traded equity indexes, funded and available around the clock.” The press release also notes that “The S&P 500 is not a standardized futures contract. It’s a perpetual priced off an index oracle that tracks the same 500 large-cap US companies as the benchmark everyone already watches.”

For more information, please refer to the following links:

• [] Launches the Future of Trading with Tokenized Stocks
• Trade the S&P 500 with our money using [] Prop

Digital Asset Trading, Infrastructure Firms Launch U.S. Broker-Dealer Affiliates

By Robert A. Musiala Jr.

A major digital assets algorithmic trading firm and over-the-counter desk, Wintermute, recently announced that its affiliate “has registered as a broker-dealer with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), marking a formal expansion into U.S. regulated markets.” According to a press release, among other things, the registration “establishes Wintermute USA LLC as a regulated proprietary trading firm, providing liquidity to national securities exchanges and over-the-counter (OTC) counterparties” and “marks a key milestone in Wintermute’s institutional expansion across regulated U.S. markets, strategically positioning the firm for the emerging tokenized securities landscape.”

In a related development, Copper, a digital asset infrastructure provider, recently announced that its U.S. affiliate, “Copper Markets (U.S.) Inc., a registered broker-dealer with the Securities and Exchange Commission (SEC), has been accepted as a member of FINRA.” According to a press release, “As an SEC-registered broker-dealer and FINRA member firm, Copper Markets (US) Inc. will offer qualified custody, staking, financing solutions, and OTC services as well as access to the ClearLoop Network, Copper’s custodian-agnostic platform for connecting derivative counterparties for pledging and moving crypto and tokenized assets as collateral.”

For more information, please refer to the following links:

• Wintermute launches U.S. broker-dealer, expanding its regulated institutional reach
• Copper Establishes Regulated U.S. Presence as a Qualified Custodian and FINRA Member

OFAC Sanctions Two Crypto Exchanges for Facilitating Iran Sanctions Evasion

By Robert A. Musiala Jr.

On Aug. 7, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two major cryptocurrency exchanges, Shelbit Exchange and Aban Tether, as well as an individual described as “the ringleader of a network of front companies operating across multiple jurisdictions, facilitating illicit cryptocurrency activity and sanctions evasion.” According to a Treasury press release, the Iranian regime relies on the two sanctioned exchanges “to launder billions of dollars, maintain covert access to international financial systems, and support the Islamic Revolutionary Guard Corps (IRGC), among other terrorist groups.” As part of the action, OFAC added multiple digital asset wallet addresses to its Specially Designated Nationals List.

For more information, please refer to the following links:

• Treasury Sanctions Crypto Exchanges Funding Iran’s IRGC and Enabling Illicit Finance
• Counter Terrorism and Iran-related Designations; Counter Narcotics Designations Removals; Issuance of Amended Iran-related Frequently Asked Question

Crypto Enforcement Actions Announced by DOJ, SEC, CFTC

By Robert A. Musiala Jr.

The U.S. Department of Justice (DOJ) recently announced two crypto-related enforcement actions. In the first action, the founder of a non-fungible token (NFT) startup was indicted “for securities and wire fraud for defrauding investors of the crypto startup he founded by making false and misleading statements regarding the use of investor funds and subsequently misappropriating those funds.” According to a DOJ press release, the defendant “raised millions of dollars from investors by promising that their investments would be used to build a marketplace for non-fungible tokens, but he instead breached their trust by stealing those funds for his own personal benefit.”

In the second DOJ action, the founder and primary operator of MyTrade, an alleged crypto market maker, was sentenced in U.S. federal court “for his role in a wide-ranging conspiracy to manipulate cryptocurrency markets on behalf of client cryptocurrency companies.” According to a DOJ press release, MyTrade provided its clients with “wash trading” services across multiple cryptocurrency exchanges by using “bots” to generate the fraudulent trades.

In a third recent enforcement action, the U.S. Securities and Exchange Commission (SEC) and U.S. Commodity Futures Trading Commission (CFTC) announced parallel crypto-related actions against Goliath Ventures and its founder, Christopher Delgado. According to an SEC press release, Delgado used Goliath Ventures to raise “at least $425 million from over 1,300 investors through an alleged multi-year Ponzi scheme.” The SEC and CFTC enforcement actions follow a prior, related DOJ action.

For more information, please refer to the following links:

• NFT Startup Founder Charged With Fraud
• Founder of Cryptocurrency Financial Services Firm “MyTrade” Sentenced for Market Manipulation and Fraud Conspiracy
• Goliath Ventures, Inc.; Christopher A. Delgado
• CFTC Charges Goliath Ventures Inc. and CEO with $400 Million Fraud Scheme

• Payments Companies Announce Stablecoin Integrations, Charter Applications
• Financial Institutions Announce Tokenized Deposits, Validator and DLT Initiatives
• BIS Project Agorá Explores Tokenization of Wholesale Cross-Border Payments
• Hackers Pilfer More than $130 Million in Bitcoin from Hardware Wallets

Payments Companies Announce Stablecoin Integrations, Charter Applications

By Keith R. Murphy

According to a recent press release, a major financial services and payment card company has acquired a stablecoin-focused technology company to further increase interoperability across fiat and digital currencies. The acquisition and related infrastructure reportedly will help people, companies and machines “hold, move, manage and convert value across fiat and digital currencies within a framework of security, compliance and interoperability.”

In related news, another major financial services and payment card company is collaborating with zerohash, a digital asset infrastructure provider, to integrate stablecoin functionality, according to a recent report. The collaboration reportedly will enable clients to prefund merchant accounts and send payouts via stablecoins. According to the report, the collaboration is intended to provide businesses with increased flexibility in managing liquidity and settling transactions 24 hours a day, particularly for cross-border activity.

According to another recent press release, a major U.S. and cross-border payments company has partnered with Rain, a stablecoin payments platform, to launch Stablecard, “a digital wallet and USDPT-backed … credit card designed to enable consumers to hold, move and spend U.S. dollar value globally.” As noted in the press release, “[f]or remittance receivers in markets where local currencies frequently fluctuate, a dollar-backed balance protects what they have already earned.” According to the press release, the Stablecard allows users to spend funds at merchants, at ATMs, online and in stores.

In other stablecoin news, the issuer of the USDC stablecoin announced that it received a limited purpose trust charter from the New York Department of Financial Services (NYDFS), according to a recent press release. The company reportedly was also the first to receive a BitLicense in 2015 from NYDFS.

And in a final notable item, Dakota, a fintech and stablecoin infrastructure company, has applied to the U.S. Office of the Comptroller of the Currency for a national trust bank charter, according to a recent press release. Obtaining a charter reportedly would make the company a federally regulated provider of digital asset custody, stablecoin issuance and related services, according to the press release.

For more information, please refer to the following links:

• Mastercard completes acquisition of BVNK to advance global stablecoin capabilities
• Visa expands stablecoin capabilities on Visa Direct with zerohash collaboration
• Western Union Launches Stablecard in Partnership with Rain
• Circle Granted Trust Charter by the New York Department of Financial Services
• Dakota Applies for a National Trust Bank Charter

Financial Institutions Announce Tokenized Deposits, Staking, Validator and DLT Initiatives

By Amos Kim

A major U.S. bank recently announced the introduction of tokenized deposits to enable corporate and commercial clients to move, program and settle funds around the clock within the regulated banking system. According to a press release, the bank’s tokenized deposits are a blockchain-based representation of commercial bank money that will roll out this fall with a limited U.S. dollar-to-British pound exchange, with expansion planned throughout 2027. The press release notes that the solution will be integrated into the bank’s existing offerings, automatically routing payments to improve speed and timing without changing how clients interface with the bank. Future enhancements are designed to deliver always-on settlement, programmability using smart contracts for conditional payments, and the same regulatory protections and deposit insurance eligibility as existing deposit products.

Another major U.S. bank recently announced “a strategic collaboration with Galaxy, a global leader in digital assets and data center infrastructure, to further advance digital asset infrastructure for institutional markets, including support for staking” on the bank’s digital asset custody platform. According to a press release, the combination of the bank’s custody platform with “Galaxy’s expertise in proof-of-stake network aims to provide clients with an integrated, institutional-grade experience for participating in staking through a secure, streamlined workflow.”

A third recent press release announced that several major U.S. payments and technology companies will operate Tier 1 validators on the Stellar network to expand the decentralization and resilience of the network’s core infrastructure. According to the press release, Tier 1 validators are publicly identifiable organizations that run multiple geographically distributed full validators to participate in the Stellar network’s consensus model, safeguard the safety and liveness of the network, and maintain the highest standards of uptime.

In a final notable development, a group of 10 major European financial institutions announced the establishment of Regulated Layer One (RL1), described as an open, compliance-optimized and collaborative distributed ledger technology network for the European financial sector. According to the press release, RL1 was established as a European Cooperative Society based in Luxembourg to overcome the current fragmentation of blockchain networks within the regulated financial sector. The press release explains that the cooperative aims to create a neutral, member-owned, pan-European utility for tokenized assets, digital money and next-generation financial markets use cases.

For more information, please refer to the following links:

• Wells Fargo to Launch Tokenized Deposits for Corporate and Commercial Clients
• Galaxy and BNY Collaborate to Advance Digital Asset Infrastructure
• BNY and Galaxy Collaborate to Advance Digital Asset Infrastructure
• MoneyGram, Figure Markets, and Range to Help Secure the Stellar Network by joining as Tier 1 Validators
• European blockchain initiative ‘Regulated Layer One’ goes live

BIS Project Agorá Explores Tokenization of Wholesale Cross-Border Payments

By Ariana Dindiyal

The Bank for International Settlements (BIS) and the Institute of International Finance (IIF) recently announced an initiative called Project Agorá, which explores how tokenization can improve wholesale cross-border payments.

According to a BIS press release and report, the project is a public-private partnership that combines eight central banks, including those of five major reserve currencies, and more than 40 leading financial institutions convened by the IIF. The goal is to eliminate the burdens of cross-border payments like delays, increased costs and limited end-to-end visibility while maintaining the safety, reliability and soundness of traditional banking payments.

The BIS report notes that the project’s prototype uses a shared programmable platform that enables atomic, multicurrency settlement of wholesale cross-border payments, which could occur around the clock if implemented. According to the report, by leveraging smart contracts, the platform allows financial institutions to embed workflow logic, compliance requirements and conditional payment triggers directly in transactions. This reduces reconciliation burdens, manual intervention and other operational frictions, which are currently the key sources of delay, errors, cost and payment failure in today’s cross-border system.

According to the BIS report, project participants are also considering the regulatory and legal implications associated with the prototype, including with respect to issues like settlement finality, anti-money laundering/countering the financing of terrorism and data privacy. Further testing is expected to include conducting real-value transactions involving certain currencies and participants.

For more information, please refer to the following link:

• BIS: Project Agorá: exploring tokenisation of wholesale cross-border payments

Hackers Pilfer More than $130 Million in Bitcoin from Hardware Wallets

By Lauren Bass

According to reports, hackers recently exploited a software flaw in Coldcard, Coinkite’s hardware crypto wallet, to steal more than $130 million in Bitcoin assets. The attackers reportedly accessed code that allowed them to determine how wallet users’ seed phrases were generated and then executed a brute-force attack to gain access to the seed phrases and ultimately to the private keys enabling access to users’ Bitcoin. Coinkite has issued advisories to its users to update their firmware and replace their seed phrases, but it remains unclear whether the exploit has effectively been patched.

For more information, please refer to the following links:

• Hackers steal over $130M by exploiting bug in offline hardware wallets
• Coldcard Hardware Wallet Flaw Linked to $70 Million Bitcoin Theft in 41 Minutes

• U.S. Crypto Companies Announce New Stablecoin Products
• Foreign Crypto Exchanges and DEXs Launch Tokenized Securities Products
• OCC Denies National Trust Application, Citing AML, Governance Deficiencies
• FATF Issues Targeted Report on DeFi Regulatory Challenges
• New Crypto Wallet Addresses Added to OFAC SDN List
• Stablecoin Platform Suffers $11.8M Loss

U.S. Crypto Companies Announce New Stablecoin Products

By Robert A. Musiala Jr.

The issuer of the RLUSD stablecoin recently announced the launch of [] Mint, a new product intended to provide “a unified way for institutions to access, mint, redeem, and manage” RLUSD. According to a company blog post, [] Mint expands how institutions access RLUSD by supporting both user interface access for operational control and oversight and programmatic access for automation and system-level integration. The blog post further notes that with [] Mint, institutions can “[m]int and redeem RLUSD directly from the source,” “[b]ridge RLUSD across chains,” “[t]rack funds across the full lifecycle of a transaction,” and “[i]ntegrate RLUSD operations into internal systems or workflows.”

In more stablecoin news, a major U.S. crypto exchange recently announced the launch of a product that will allow businesses to accept USDC payments from AI agents. According to reports, businesses using the new product will be able to receive, track, reconcile and cash out agent payments from the same account used for other payment activities.

And in a final notable item, Circle, the issuer of the USDC stablecoin, recently announced that it has acquired the blockchain patent portfolio of a major U.S. technology company. According to a company blog post, “[t]he portfolio comprises over 680 patent families and nearly 1,000 issued patents worldwide, spanning foundational blockchain technology, banking, financial services, insurance, enterprise infrastructure, supply chain verification, and secure cloud operations.”

For more information, please refer to the following links:

• Meet []
• [] lets businesses accept USDC payments from AI agents
• Circle Acquires [] Blockchain Patent Portfolio
• [] portfolio acquisition makes Circle the largest US blockchain patent holder

Foreign Crypto Exchanges and DEXs Launch Tokenized Securities Products

By Robert A. Musiala Jr.

Bybit, a major UAE-based crypto exchange, recently announced “the integration of xStocks into its Dual Asset product, becoming the first centralized exchange to offer xStocks as underlying assets for a structured yield product of its kind.” A press release notes that the newly available xStocks tokens track U.S. publicly traded companies spanning aerospace, technology and financial services. According to the press release, “Bybit’s xStocks Dual Asset allows users to select an xStock pair, target price, and investment period to pursue yield based on their view of the underlying stock’s price movement.”

In related news, Arcus, a decentralized exchange (DEX), has reportedly launched 24/7 trading of more than 95 “Stock Tokens” on the newly launched Robinhood Chain blockchain. The Stock Tokens reportedly give eligible traders exposure to the underlying stock of leading U.S. public companies across multiple sectors.

And the largest DEX by trading volume recently announced the launch of “Permissioned Pools,” a new feature that “enables permissioned asset trading through Automated Market Makers (AMMs) with compliance enforced directly onchain.” According to a blog post, the new feature was launched with partners that represent “a growing set of issuers and platforms seeking compliant access to onchain markets for tokenized funds, securities, equities, and other permissioned assets.”

For more information, please refer to the following links:

• Bybit Expands Fixed-Return Dual Asset Product Beyond Crypto With xStocks
• Arcus rolls out 24/7 tokenized US stocks and perpetual markets on Robinhood Chain
• Introducing Permissioned Pools on Uniswap v4

OCC Denies National Trust Application, Citing AML, Governance Deficiencies

By Om Kakani

The Office of the Comptroller of the Currency (OCC) recently denied Wise US Inc.’s application to establish Wise National Trust (WNT), concluding that the applicants failed to demonstrate that the proposed institution would satisfy applicable regulatory expectations for a national trust bank.

In a July 21 denial letter, the OCC stated that the organizers of WNT, whose payment infrastructure could be used to facilitate interoperability involving cryptocurrencies and stablecoins, did not adequately address “key deficiencies” in the proposed anti-money laundering and countering the financing of terrorism (AML/CFT) program. The OCC determined that WNT would not satisfy regulatory expectations “until Wise has addressed existing deficiencies and develops an enhanced enterprise-wide AML/CFT program.” The OCC’s decision identifies several factors supporting its conclusion, including:

• Prior AML Enforcement History –The OCC referenced a July 2025 multistate settlement in which Wise agreed to pay approximately $4.2 million to resolve allegations relating to deficiencies in its AML compliance program.

• Enterprise-Wide AML/CFT Concerns –According to the OCC, WNT would operate as a relatively small component of a larger enterprise. The agency concluded that the applicants had not demonstrated that the broader organization maintained an enterprise-wide AML/CFT framework capable of supporting the proposed national trust bank and had not sufficiently addressed existing deficiencies or established an enhanced AML/CFT program adequate for the risks associated with the proposed institution.

• Elevated Financial Crime Risk –The OCC noted that the services contemplated by WNT presented heightened illicit-finance risk.

• Management and Governance Knowledge Deficiencies – According to the denial letter, the organizers did not demonstrate sufficient familiarity with national banking laws and regulations. The OCC further found that the proposed management team and board of directors had not demonstrated sufficient competence regarding either the services to be provided by WNT or the fiduciary requirements applicable to national trust banks.

For more information, please refer to the following link:

• OCC Denies Wise Trust Charter Over Compliance Gaps

FATF Issues Targeted Report on DeFi Regulatory Challenges

By Om Kakani

On July 21, the Financial Action Task Force (FATF) published its Targeted Report on Regulatory Challenges from Decentralized Finance (DeFi), updating its analysis of how anti-money laundering, counter-terrorist financing and counter-proliferation financing standards apply to DeFi arrangements. The report examines the growth of the DeFi sector, identifies financial crime risks associated with DeFi activity, evaluates global implementation of FATF Recommendation 15 and provides indicators for identifying persons who may exercise control or sufficient influence over DeFi arrangements.

According to the report, approximately 93 percent of surveyed jurisdictions (132 of 143) reported that they have not yet implemented FATF standards applicable to qualifying DeFi arrangements. FATF stated that these implementation gaps create challenges for supervision and enforcement as DeFi activity continues to expand globally. The report states that DeFi’s growth has been accompanied by increasing exploitation by illicit actors and that certain characteristics frequently associated with DeFi arrangements may be exploited for illicit purposes, including permissionless access, automated execution through smart contracts, cross-border accessibility, pseudonymous or non-identified participation, and rapid execution of complex transactions across multiple protocols.

The report reiterates FATF’s position that DeFi arrangements may fall within the scope of Recommendation 15 and may have AML/CFT obligations where a natural or legal person exercises control or sufficient influence over the arrangement. FATF emphasized that the regulatory analysis focuses on the existence of control or influence rather than the use of decentralized technology itself. FATF identified the following indicators that jurisdictions may consider when determining whether a person exercises control or sufficient influence over a DeFi arrangement: (1) governance token concentration; (2) administrative or upgrade rights; (3) authority over protocol modifications; (4) Treasury control; (5) economic interests tied to protocol operation; (6) influence over development activities; and (7) control of critical infrastructure or interfaces associated with a protocol.

The report also addresses interactions between regulated entities and DeFi arrangements. According to the report, financial institutions and virtual asset service providers (VASPs) that interact with or provide services involving DeFi arrangements should comply, as appropriate, with applicable FATF Recommendations, including Recommendation 15 (New Technologies), Recommendation 10 (Customer Due Diligence) and Recommendation 13 (Correspondent Banking).

For more information, please refer to the following link:

• FATF urges action to respond to emerging risks from Decentralised Finance

New Crypto Wallet Addresses Added to OFAC SDN List

By Robert A. Musiala Jr.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) recently announced two sanctions actions involving cryptocurrencies. On July 23, OFAC announced that it has designated “a senior Egyptian Muslim Brotherhood (EMB) official, along with three individuals and three entities that have provided material support to Hamas.” According to a press release, one of the designated entities, El-Kahira, “provided underground banking services, servicing both fiat and cryptocurrencies, to known … organized crime groups.”

On July 29, OFAC announced that it has designated “two firms integral to an Islamic Revolutionary Guard Corps (IRGC)-backed extortion scheme that forces commercial vessels to purchase mandatory maritime ‘insurance’ to transit the Strait.” According to a press release, the designated entities are used by the IRGC “to extract revenue under the guise of maritime services, including payments in digital assets to evade sanctions—allowing Iran to tighten control over shipping activity and funnel funds into IRGC operations.”

In connection with these actions, OFAC added multiple new cryptocurrency wallet addresses to the OFAC Specially Designated Nationals (SDN) List.

For more information, please refer to the following links:

• Treasury Disrupts Muslim Brotherhood and Hamas Financial Networks
• Counter Terrorism Designations; Counter Narcotics Designations; Cuba Designations; Belarus-related Designation Removal; Issuance of Cuba-related General Licenses
• OFAC Sanctions Members of Hamas Financing Network
• Treasury Disrupts Iranian Regime’s Strait of Hormuz Extortion Network
• Specially Designated Nationals List Updates

Stablecoin Platform Suffers $11.8M Loss

By Lauren Bass

Earlier this week Triple-A, a Singapore-based stablecoin payments company, reportedly identified “unauthorized access” to certain wallets on its platform. According to reports, the incident resulted in the platform losing approximately $11.8 million; however, client funds were reportedly not affected. Triple-A is reportedly working with blockchain and cybersecurity specialists to investigate, trace and aid in recovery of the pilfered assets.

For more information, please refer to the following link:

• Triple-A confirms treasury-wallet breach after losses reach $11.8M

• Financial Institutions Launch Crypto Trading; U.S. Crypto Firm Licensed in EU
• U.S. Exchange Publishes Crypto Q3 Outlook
• Crypto Companies Announce Capital Markets Products, Integrations
• SEC Commissioner Publishes Statement on Crypto Vaults
• Crypto Enforcement Actions Announced by SEC, DOJ
• Bridge Exploits Target AFX and Verus, $31.6M in Crypto Stolen

Financial Institutions Launch Crypto Trading; U.S. Crypto Firm Licensed in EU

By Keith Murphy

According to a recent press release, a major U.S. financial services and web trading platform is rolling out spot trading in digital assets. The new option reportedly will provide eligible clients with the ability to buy, sell and hold bitcoin, ethereum and solana in a linked Zerohash account and view their digital assets alongside traditional investments. 

In related news, a Swiss cantonal bank has integrated services from a global banking services company to enable regulated crypto trading directly within the bank’s web and mobile banking channels, according to a press release. As noted in the release, at launch the bank’s clients can buy, hold and sell bitcoin, ethereum, litecoin and solana, and market orders can be placed by quantity or USD value via e-banking and mobile apps. The Swiss bank reportedly is also utilizing the company’s API to reduce operational complexity and risks. 

In another recent press release, a major U.S. cryptocurrency payment processor announced that its European subsidiary has been authorized as a crypto-asset service provider (CASP) under the EU Markets in Crypto-Assets Regulation (MiCA). According to the release, following the receipt of the MiCA license, the company will offer merchants and partners crypto payment acceptance, stablecoin-denominated payments and cross-border payment use cases across the European Union.

For more information, please refer to the following links:

• [] from [] Completes Rollout of Crypto Spot Trading
• [] Secures MiCA License to Expand Cryptocurrency & Stablecoin Payments Across the EU
• [] Launches Regulated Crypto Trading with Sygnum[ ]and Avaloq

U.S. Exchange Publishes Crypto Q3 Outlook

By Keith Murphy

A major U.S. crypto exchange recently issued its quarterly crypto outlook for Q3 with related top charts to watch (Q3 Outlook). Among other opinions, the Q3 Outlook reports its outlook on crypto markets as neutral for the third quarter, and that bitcoin seems to be transitioning from a corrective phase toward accumulation. The Q3 Outlook further notes that near-term caution remains warranted, based on various factors including re-escalation of the U.S.-Iran conflict, resurging oil prices and selling from prominent digital asset treasuries.

For more information, please refer to the following link:

• Charting Crypto (Q3 2026)

Crypto Companies Announce Capital Markets Products, Integrations

By Robert A. Musiala Jr.

An OCC-chartered digital asset trust bank and subsidiary of BitGo Holdings Inc. and OTC Markets Group recently announced their “intention to pursue a strategic alliance focused on bringing digital asset trading and custody infrastructure to broker-dealers utilizing OTC Link ATS, the SEC-regulated alternative trading system.” According to a press release, the alliance is intended to support “a range of digital asset securities, while laying the groundwork … for broker-dealers to expand their offerings across all tokenized assets, commodities and the broader blockchain-based financial markets.”

In another recent press release, Securitize Corp. and a major U.S. investment bank announced “an agreement to enable public companies to conduct initial public offerings (IPOs) and follow-on offerings using blockchain-based infrastructure to tokenize securities.” According to the press release, under the agreement, the investment bank “will leverage its equity capital markets and trading capabilities” while Securitize “will provide the tokenization infrastructure used to issue, distribute, and service tokenized securities and will utilize Securitize Markets, LLC, its SEC-registered broker-dealer affiliate, to participate in the offering and settlement process.”

In another recent development, Centrifuge, a real-world asset tokenization company, announced that it has partnered with M0, a stablecoin infrastructure company, “to make JTRSY, the Janus Henderson Anemoy Treasury Fund, eligible collateral across the M0 network. According to a company blog post, “the integration will give issuers access to institutional-grade U.S. Treasury exposure through M0’s modular stablecoin infrastructure while establishing the foundation for a broader partnership between the two companies.”

And in a final notable item, FalconX, a “digital asset prime brokerage,” announced it has acquired bloXroute, a leader in blockchain trading and networking technology, to extend its platform in support of tokenized assets and onchain capital markets.” According to a press release, “[b]y combining bloXroute’s blockchain networking infrastructure with FalconX’s institutional trading platform, the company will enhance the speed and efficiency of onchain execution while accelerating the development of new trading, financing, and prime brokerage capabilities.”

For more information, please refer to the following links:

• BitGo and OTC Markets Group to Pursue Alliance Focused on Advancing Digital Asset Access for Over 150 Registered Broker-Dealers
• Securitize and [] Collaborate to Enable Onchain IPOs and Follow-On Offerings for Public Companies
• M0 Partners with Centrifuge to Expand Institutional Collateral for Stablecoin Issuers
• FalconX Acquires bloXroute to Accelerate the Future of Onchain Capital Markets

SEC Commissioner Publishes Statement on Crypto Vaults

By Robert A. Musiala Jr.

On July 22, U.S. Securities and Exchange Commissioner Hester M. Peirce published a statement addressing crypto vaults and lending strategies. According to the statement, crypto vaults “have attracted recent attention as a tool for allowing holders of crypto assets to generate a yield on those assets.” The statement notes that crypto vaults “facilitate asset deployment by using smart contracts to allocate user assets to various yield-generating activities, including staking and lending.” According to the statement, crypto vaults are not uniform but rather “fall along a spectrum from programmatic allocations determined solely by immutable smart contracts, to allocations at the sole discretion of another person or group of persons.”

The statement cautions that “[p]arties involved in managing these vaults, for example, by selecting the yield-generating activities, re-allocating assets among yield-generating assets, or selecting the parties that will make those decisions, may want to analyze whether their activities implicate the federal securities laws.”

The statement also references crypto lending strategies that “allow participants to deposit their assets into onchain systems that lend them for a fee to borrowers who can put those assets to use.” The statement cautions that “[p]arties involved in managing these strategies, for example, by setting interest rates, deciding which assets to accommodate, setting loan-to-value limits, and establishing liquidation thresholds, may want to analyze whether their activities implicate the federal securities laws.”

For more information, please refer to the following link:

• Headstands and Summervaults: A Statement on Crypto Vaults and Lending Strategies

Crypto Enforcement Actions Announced by SEC, DOJ

By Amos Kim

The U.S. Securities and Exchange Commission (SEC) recently announced partially settled charges against a Florida resident, Zan Shaikh, and his company, Bright Vision Distribution LLC, doing business as Mining Automatic, alleging they misappropriated and misused investor funds after raising approximately $22 million from more than 380 investors. According to the SEC complaint, between approximately June 2023 and May 2025, Shaikh and Mining Automatic promised investors guaranteed monthly returns from an alleged crypto asset mining operation that was insufficient to generate the promised returns. The SEC complaint alleges that the defendants used only about 13 percent of investors’ funds on expenses relating to crypto asset mining, using the remaining funds largely for marketing to solicit new investors and to pay for Shaikh’s personal and unrelated business expenses.

In another recent announcement, the U.S. Department of Justice (DOJ) announced that multiple investigations by its Cyber Fraud Task Force resulted in the seizure of more than $25 million in cryptocurrency tied to international fraud schemes targeting residents of the U.S. and Canada. According to the press release, agents identified multiple laundering networks and confirmed thousands of victims worldwide who were misled into believing they were making legitimate cryptocurrency investments. The release notes that the seizure is part of more than $800 million recovered through the Scam Center Strike Force, which was launched in 2025 to aggressively target international fraud networks. On July 21, the U.S. Attorney’s Office filed five civil forfeiture complaints seeking forfeiture of the recovered cryptocurrency assets.

In a third enforcement action, the DOJ announced that a federal grand jury indicted a Sioux Falls man on charges of wire fraud, money laundering, bank fraud and aggravated identity theft. According to the press release, Benjamin Paul Wiener was indicted on 29 counts after allegedly devising a fraud scheme to obtain money and cryptocurrency from victims who invested with his companies. The indictment alleges that Wiener made materially false statements to induce his victims to invest and then laundered the fraud proceeds through various financial institutions and cryptocurrency exchanges to conceal the funds and pay for personal expenses.

For more information, please refer to the following links:

• Zan Shaikh and Bright Vision Distribution LLC, d/b/a Mining Automatic
• Investigations into Cryptocurrency Scams Result in Seizure of More Than $25 Million
• Sioux Falls Crypto Investor Indicted for Wire Fraud, Money Laundering, Bank Fraud, and Aggravated Identity Theft

Bridge Exploits Target AFX and Verus, $31.6M in Crypto Stolen

By Amos Kim

According to a recent report, hackers stole more than $31.6 million across two unrelated crypto bridge exploits spaced just hours apart. The report notes that AFX, a decentralized perpetual exchange operating on Arbitrum, lost $24.15 million in a hack targeting one of its cross-chain bridges. Following the breach, the attacker reportedly bridged 24.15 million USDC to Ethereum, where it was swapped for 12,467 ETH. According to a blockchain security firm executive, the incident appears to be an operational security failure involving five compromised hot validator keys rather than a smart contract vulnerability. The report further explains that a separate exploit targeted the Verus Ethereum Bridge just hours later, resulting in approximately $7.5 million in stolen cryptocurrency.

For more information, please refer to the following link:

• Hackers steal $31.6M in 2 crypto bridge attacks within 7 hours

• Stablecoin Issuers Announce OCC Charters, Network Launches, Remittance POC
• Major Securities Clearing and Settlement Firm Completes Tokenization Pilot
• Bank Groups Advocate for Revisions to Clarity Act Stablecoin Yield Provisions
• US Dept. of Treasury and UK HM Treasury Publish Statement on Stablecoins
• OFAC Sanctions Iran Central Bank Crypto Wallets
• Interpol Operation Intercepts $293M, Targets Crypto Laundering Networks

Stablecoin Issuers Announce OCC Charters, Network Launches, Remittance POC

By Robert A. Musiala Jr.

The issuer of the USDC stablecoin, Circle Internet Group Inc., recently announced that it has received approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish First National Digital Currency Bank N.A., a national trust bank. According to a press release, the bank will operate under the name Circle National Trust and will offer fiduciary digital asset custody services for Circle and its affiliates.

In more stablecoin news, a major U.S. financial services firm that operates one of the world’s largest payment networks recently announced its new VSP stablecoin platform, “a new enterprise platform designed to help financial institutions, fintechs, and crypto natives access stablecoin capabilities through a single … managed environment.” According to a press release, “VSP gives FIs, fintechs and other payment providers a simple way to access, store, and redeem stablecoins, beginning with Open USD (OUSD), a new stablecoin recently introduced by Open Standard.” The press release notes that VSP will include “onchain wallet infrastructure through a newly introduced Wallet-as-a-Service offering and connectivity for minting and burning Open USD.”

And the issuer of the USDT stablecoin, Tether, recently announced “the successful completion of the first enterprise cross-border settlement Proof of Concept (POC) between” the U.S. and Mexico affiliates of a major automotive company. According to a press release, as part of the POC, the U.S. affiliate converted 20,000 U.S. dollars into USDT and then transferred the USDT to the Mexico affiliate, which converted the USDT back into U.S. dollars. The press release notes that “[t]he full process included international transfer and verification, highlighting how stablecoins can support cross-border settlement for global businesses.”

For more information, please refer to the following links:

• Circle Receives Final OCC Approval to Establish National Trust Bank
• Visa Introduces Platform for Stablecoin Minting, Movement and Management
• Global Industrial Conglomerate Hyundai Completes Enterprise Treasury Pilot on Tether USD₮, Moving Corporate Funds Across Global Borders

Major Securities Clearing and Settlement Firm Completes Tokenization Pilot

By Robert A. Musiala Jr.

A major U.S. financial market clearing, settlement and post-trade market infrastructure company recently announced that it has successfully converted securities held by the company into tokens that were then used in real production trades. According to a press release, “[m]ore than 30 firms representing a cross-section of traditional financial institutions (TradFi) and digital market participants took part in the initiative, underscoring broad industry engagement.” The press release further noted that the digital conversions occurred on the company’s private blockchain network, Besu, and the public Canton network.

According to the press release, the company’s tokenization service “enables the issuance of tokenized representations (also referred to as digital twins) of real-world assets that can be delivered to … [p]articipant wallets of choice.” The company-held securities “can be converted between traditional and tokenized forms, allowing … [p]articipants to access new liquidity pools and execute digital asset strategies with greater flexibility.”

For more information, please refer to the following link:

• DTCC Turns Tokenization into Reality: U.S. Trades Successfully Processed Using DTC-Tokenized Assets

Bank Groups Advocate for Revisions to Clarity Act Stablecoin Yield Provisions

By Robert A. Musiala Jr.

According to a recent press release, two major U.S. bank trade associations, along with “76 state associations representing thousands of community financial institutions across the country,” recently sent a letter to U.S. Senate Majority Leader John Thune and Minority Leader Charles Schumer “expressing genuine concerns with the Clarity Act and urging targeted changes to provide greater certainty that payment stablecoins cannot function as substitutes for bank deposits.” According to the letter, the associations “remain concerned that ambiguities within the bill could encourage stablecoin arrangements to effectively function as substitutes for deposits, despite Congress’s longstanding and clearly stated intent that payment stablecoins should serve as transaction tools rather than store-of-value products.” Among other things, the letter advocates for specific revisions to Section 404 of the draft Clarity Act legislation “that would clarify the prohibition on interest and yield and help ensure that the prohibition cannot be circumvented through alternative incentive structures.”

For more information, please refer to the following links:

• ABA, ICBA Join State Associations in Urging Senate to Strengthen Stablecoin Yield Provisions in Clarity Act
• Joint State Association Letter to the Senate on the Clarity Act

US Dept. of Treasury and UK HM Treasury Publish Statement on Stablecoins

By Robert A. Musiala Jr.

The U.S. Department of the Treasury (Treasury) recently announced two joint publications with the United Kingdom’s HM Treasury. The first is a set of recommendations of the Transatlantic Taskforce for Markets of the Future that “aim to deepen cross-border financial activity between the United States and the United Kingdom, reduce unnecessary frictions, and advance open, market-based standards that promote innovation and support growth.” According to a Treasury press release, the recommendations “identify opportunities to enhance cross-border capital raising, update supervisory cooperation, and provide clarity for tokenized financial activity.”

The second publication is a joint statement on stablecoins that “supports dynamic cross-border stablecoin activity and highlights the key role of the private sector in the provision of money and payments.” Among other things, the joint statement affirms and advocates for the following principles:

1. Stablecoins are an important vehicle for innovation in digital money.
2. Policies should facilitate the coexistence and circulation of different forms of digital money solutions.
3. Policies should advance a timely, clear and consistent legal, regulatory and supervisory pathway for digital financial innovation, including for stablecoins.
4. Stablecoins held out as money should be fully backed, on at least a one-to-one basis, by high-quality, liquid assets.
5. Reserve, liquidity and other prudential requirements for stablecoins should seek to mitigate risks and avoid unnecessary fragmentation.
6. Regulatory approaches should promote innovation and resilience without imposing burdensome constraints that undermine commercial viability, create barriers to entry or hinder competition.
7. Policies should support the integration of well-regulated stablecoins into activities including payments, settlement and tokenized financial markets.
8. High standards should be set for the custody, segregation and protection of stablecoin reserves.
9. Policies should support clarity, predictability and cross-border coordination in the event of any potential failure of a stablecoin issuer.
10. Formal mechanisms are needed to enable cross-border stablecoin activity as a feature of domestic regulatory and supervisory regimes.

For more information, please refer to the following links:

• U.S.-UK Transatlantic Taskforce for the Markets of the Future Publishes Recommendations to Promote Growth and Innovation in Capital Markets and Digital Assets
• Recommendations of the Transatlantic Taskforce for Markets of the Future
• U.S.-UK Joint Statement on Stablecoins  

OFAC Sanctions Iran Central Bank Crypto Wallets

By Amos Kim

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) recently updated its designation of the Central Bank of Iran to include four additional cryptocurrency wallet addresses. According to a Chainalysis report, the newly designated wallets collectively received $165 million in stablecoins. The report notes that following the designation update, the stablecoin issuer Tether immediately froze USDT balances totaling $131 million. According to Chainalysis, the Central Bank of Iran has used cryptocurrency to sidestep sanctions, fund the regime and funnel assets to regional partners, including a U.S.-designated terror group. Tether has now reportedly frozen a total of nearly $475 million from USDT wallet addresses identified by OFAC as belonging to the Central Bank of Iran.

For more information, please refer to the following links:

• OFAC Sanctions Iran Central Bank Crypto Wallets, Freezing $131M in Stablecoins
• Iran-related Designations; Iran-related and Counter Terrorism Designation Update; Issuance of Iran-related General License

Interpol Operation Intercepts $293M, Targets Crypto Laundering Networks

By Amos Kim

Interpol recently announced the results of Operation First Light 2026, a coordinated global enforcement action targeting social engineering scams and associated money laundering activities. According to the press release, the operation spanned 97 countries and territories, resulting in the arrest of more than 5,000 individuals, the interception of $293 million in illicit assets and the blocking of 31,014 bank accounts. Reporting on the operation highlights several money laundering schemes that utilized digital assets to obscure financial trails. For example, authorities in Thailand disrupted a scheme that funneled illicit funds from romance scams into various cryptocurrencies using cross-chain token swaps, with one suspect’s digital wallet processing more than $122.5 million in just 10 months. Additionally, the operation resulted in the deportation from Palau of 22 individuals who operated online scam centers utilizing cryptocurrency and illegal gambling platforms to target international victims.

For more information, please refer to the following link:

• Over 5,800 arrests, USD 293 million intercepted in global fraud bust

• New U.S. Stablecoin Launches, Banks Continue Stablecoin Integrations
• Financial Institutions Launch Tokenized Deposit Initiatives, Obtain OCC Charters
• Financial Company Launches L2, Ethereum Featured in R&D and POC Efforts
• Tokenization Companies Announce New RWA Initiatives
• OFAC Adds 134 Crypto Addresses to SDN List
• Crypto Enforcement Actions Announced by SEC, CFTC, DOJ
• Analysis Provides Details on CoinEx Illicit Activity

New U.S. Stablecoin Launches, Banks Continue Stablecoin Integrations

By Robert A. Musiala Jr.

On June 30, a group of over 140 businesses, including multiple major U.S. financial and crypto firms, announced the launch of Open USD, “a new stablecoin for global money movement.” According to a press release, Open USD introduces three key design principles: (1) businesses can mint and redeem Open USD at no cost and with no artificial limits on volume; (2) partners receive all the earnings from Open USD’s reserves, less a small management fee to cover Open USD’s operational costs; and (3) Open USD will be operated by Open Standard, an independent company with a board made up of Open USD’s partners, ensuring decisions are made for the collective interest, not a single entity. The press release notes that “Open USD will be live later this year.”

In related developments, two major U.S. banks recently announced initiatives with Circle, the issuer of the USDC stablecoin. One bank “announced an expanded relationship with Circle … as part of new stablecoin enablement capabilities for institutional clients.” According to a press release, USDC will be the first stablecoin on the bank’s digital asset custody platform, enabling the bank’s clients to store, transfer, mint and burn USDC. Similarly, another bank announced “the launch of its capability enabling institutional clients to access USDC minting and redemption.”

In more stablecoin news, U.S.-based Telcoin Digital Asset Bank announced that its U.S. users can now open a bank account on its “Telcoin Wallet that is natively tied to bank-issued eUSD stablecoins.” According to a press release, “Telcoin Wallet is focused on the underlying architecture that connects banking rails directly to Telcoin Digital Asset Bank’s eUSD Digital Cash stablecoin.”

For more information, please refer to the following links:

• Introducing Open USD
• [] Expands Relationship with Circle and Adds to Institutional-Grade Stablecoin Enablement Services
• Standard Chartered and Circle launch first G-SIB-led integrated access to USDC minting and redemption
• Telcoin Launches First Regulated On-Chain Bank Accounts in the US

Financial Institutions Launch Tokenized Deposit Initiatives, Obtain OCC Charters

By Amos Kim

The Society for Worldwide Interbank Financial Telecommunications (SWIFT) recently announced that its blockchain-based ledger is ready for initial use, enabling early adopter financial institutions to pioneer 24/7 cross-border payments with tokenized deposits. According to a press release, 17 banks across six continents are preparing to pilot live transactions using the new platform. The press release notes that the shared ledger provides a secure orchestration layer for bank-issued tokenized deposits, enabling participating banks to move funds for customers before completing final settlement through existing systems.

In related news, a major U.S. bank announced that it has expanded its global tokenized deposit network by adding five new Asia-Pacific currencies: the Australian dollar, Hong Kong dollar, Japanese yen, Chinese renminbi, and Singapore dollar. According to the announcement, the expansion allows multinational corporations and financial institutions to execute on-chain foreign exchange transactions and leverage programmable payments to automate treasury and liquidity management across both new and existing currency rails.

In a final notable development, the U.S. Office of the Comptroller of the Currency (OCC) granted Connectia Trust, National Association, preliminary conditional approval to establish a cryptocurrency-focused U.S. trust company. According to the reports, Connectia Trust, owned by a Japanese retail bank, will focus its operations primarily on dollar-backed stablecoin issuance, reserve maintenance in a nonfiduciary capacity, stablecoin custody services, certain transactional services for custody customers, and fiduciary asset management services. The OCC corporate decision further notes that before the trust can open for business, it must satisfy several regulatory requirements, including applying for stock in a Federal Reserve Bank, meeting specific capital requirements, and maintaining 180 days of operating expenses.

For more information, please refer to the following links:

• Swift’s Blockchain Ledger Ready for Use as 17 Banks Set to Pioneer Tokenised Cross-Border Payments on Trusted Global Infrastructure
• [] expands Blockchain Deposit Accounts with five new Asia-Pacific currencies
• Sony Bank’s Crypto Charter Bid Clears 1st OCC Hurdle

Financial Company Launches L2, Ethereum Featured in R&D and POC Efforts

By Robert A. Musiala Jr.

A major U.S. financial services company recently announced the “Public Mainnet” launch of its Arbitrum Layer 2 blockchain network. According to a press release, the newly launched network “features fast block times and out-of-the-box DeFi primitives like lending and borrowing” and is “purpose-built for real-world assets.”

In more network news, “[a] coordinated group of Ethereum ecosystem stewards … announced the launch of Ethlabs, an independent, nonprofit research and development organization formed to ready Ethereum for the next phase of institutional adoption.” According to a press release, “Ethlabs exists to ensure the network is ready to absorb [increased] demand at scale, advancing a faster Ethereum with trustworthy interoperability, so institutions building on Ethereum can do so with the neutrality, resilience, privacy and security they require.”

In a related development, a major global bank recently announced that it has “completed two joint proofs of concept (PoC) showing that the public Ethereum network can support the operational and compliance needs of regulated financial institutions.” According to a press release, the POCs “demonstrate[] an important step forward in making Ethereum infrastructure easier for heavily regulated financial institutions to use.”

For more information, please refer to the following links:

• Robinhood Accelerates Global Expansion with Robinhood Chain Mainnet, Stock Tokens, Agentic Trading and New Suite of DeFi Products
• Ethlabs, Founded by Former Ethereum Foundation Contributors and Funded by Bitmine, Sharplink and Joe Lubin, Launches to Accelerate Ethereum’s Institutional Supercycle
• UBS and Nethermind Complete Compliance Proofs of Concept on Ethereum

Tokenization Companies Announce New RWA Initiatives

By Robert A. Musiala Jr.

Following its initial public offering, Securitize, a company focused on tokenizing real-world assets (RWAs), recently announced that “it is bringing its own common stock onchain at the start of its life as a public company.” According to a press release, eligible U.S. investors will be able to access tokenized versions of Securitize’s publicly traded stock, SECZ, through the company’s regulated platform.

Another RWA tokenization company, Centrifuge, recently announced that it is partnering with a major U.S. cryptocurrency exchange “to bring tokenized real-world assets into qualified custody, beginning with the Janus Henderson Anemoy AAA CLO Fund (JAAA).” According to a press release, through the partnership “[i]nstitutional clients can now hold tokenized fund interests in qualified custody while earning the underlying fund return and using those positions across borrowing, trading, and treasury strategies through a single custody relationship.”

Centrifuge also recently announced a partnership with one of the world’s largest asset managers to launch the asset manager’s first tokenized offering. According to a press release, eligible investors can now access the asset manager’s “established, institutional-quality high yield strategy on Centrifuge’s platform for the first time — pairing institutional credit investing with global onchain access.”

In a final notable item, Ondo Finance, another RWA company, recently announced “the first live solution of third-party tokenized U.S. securities operating entirely within the existing regulatory perimeter in the U.S. … to provide full voting rights for tokenized equity holders.” According to a press release, the product is designed to follow the custodial model described in the U.S. Securities and Exchange Commission’s January 2026 statement on tokenized securities.

For more information, please refer to the following links:

• Tokenizing SECZ: Securitize Brings Its Own Public Stock Onchain at Listing Day
• Kraken Institutional partners with Centrifuge to bring tokenized assets into qualified custody
• New York Life Investment Management Partners with Centrifuge to Tokenize U.S. High Yield Corporate Bond Strategy
• Ondo Finance Launches First-Ever Custodial Tokenized Securities in the U.S., Broadridge Partners to Integrate World Class Governance

OFAC Adds 134 Crypto Addresses to SDN List

By Robert A. Musiala Jr.

On July 1, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) added 134 cryptocurrency wallet addresses to OFAC’s Specially Designated Nationals (SDN) List. The wallet addresses are reportedly associated with ISIS-K, which according to reports is a regional branch of the Islamic State that is active throughout Afghanistan, Pakistan and several former Soviet Union countries in Central Asia, and that has been responsible for numerous terror attacks. Tether has reportedly frozen the funds in 131 of the wallets.

For more information, please refer to the following links:

• Counter Narcotics Designations; Counter Terrorism Designations and Designation Update
• OFAC Updates ISIS-Khorasan Sanctions with Over 100 Cryptocurrency Wallets

Crypto Enforcement Actions Announced by SEC, CFTC, DOJ

By Robert A. Musiala Jr.

The U.S. Securities and Exchange Commission (SEC) recently announced a final judgment by default against four entities and two individuals in connection with “a relationship investment scam involving the alleged fake crypto asset trading platform NanoBit.” According to the release, the SEC alleged the defendants “solicited investors via social media apps, lied to them to gain their trust and confidence, and then stole their money” by encouraging investors to put their money into the supposed NanoBit crypto asset trading platform. The release notes that through the scheme, the fraudsters “wired more than $2 million to bank accounts in Hong Kong and misappropriated hundreds of thousands of dollars’ worth of investors’ crypto assets.”

In another enforcement action, the U.S. Commodity Futures Trading Commission (CFTC) announced charges against an individual and his company alleging the defendants “operated a fraudulent commodity pool that traded equity index futures contracts, options on equity index futures, and crypto assets, among other purported investments.” According to a CFTC press release, the defendants fraudulently solicited over $14 million from at least 60 participants and misappropriated participants’ funds.

And the U.S. Department of Justice (DOJ) recently announced that the CEO of Goliath Ventures has pleaded guilty to conspiracy to commit wire fraud, wire fraud and money laundering in relation to a Ponzi scheme involving false and fraudulent promises of monthly returns generated through cryptocurrency “liquidity pools.” According to the DOJ press release, the defendant admitted to causing a minimum of $250 million in losses to investors.

For more information, please refer to the following links:

• SEC Obtains Final Judgment Against Four Entities and Two Individuals in Alleged Relationship Investment Scam
• CFTC Charges North Carolina Commodity Pool Operator and His Company with Fraud
• Goliath Ventures CEO Pleads Guilty to Cryptocurrency Fraud Scheme Conspiracy

Analysis Provides Details on CoinEx Illicit Activity

By Robert A. Musiala Jr.

Blockchain analytics firm TRM Labs recently published a report providing its analysis of the links between the CoinEx cryptocurrency exchange and various sanctioned Iranian entities. Among its many findings, the analysis identified the following:

• USD 2.7 billion flowed between CoinEx and Nobitex, Iran’s largest domestic cryptocurrency exchange, at an average rate of approximately USD 1 million per day since 2018.
• Every major Iranian domestic exchange routes approximately 5 percent to 10 percent of its total volume through CoinEx, indicating a coordinated arrangement rather than organic adoption.
• CoinEx’s share of illicit transaction volume is nearly 8 percent – far above the 0.3 percent threshold typical of compliant exchanges.
• CoinEx has direct on-chain exposure to the IRGC (USD 6 million), Palestinian Islamic Jihad (USD 374,000) and Hezbollah.

For more information, please refer to the following link:

• How CoinEx Became Iran’s Primary Gateway to Global Cryptocurrency Markets