Stablecoins, payments and regulation
The crypto stories worth reading from the past 7 days: stablecoins, payments, wallets, regulation and security. Information, never trading calls.
46 stories in the past 7 days
Latest issue7 stories
Brazil's $252 Billion Crypto Market to Face $10,000 Self-Custody Reporting Rule
Brazil is expanding crypto regulation with new self-custody reporting rules and controls on outbound transfers, expected to take effect in 2027. Key points include: transfers between exchanges or from exchanges to individual wallets exceeding the $10,000 threshold must be reported to Coaf, even without suspicious activity; the scope covers large movements between regulated platforms and self-custody wallets, filling a gap in traditional suspicious activity reporting. Additionally, BCB Resolution No. 584 introduces precautionary hold procedures starting January 1, 2027, for certain virtual asset transfers leaving regulated institutions, potentially causing delays and conditional early releases. On timing, by October 2026 covered entities such as exchanges and banks must identify self-custody counterparties, calculate amounts, and integrate automated reporting; from January 2027 some entities must have outbound transfer hold capabilities.
US Treasury Rescinds Crypto Broker Reporting Rule, Congress Repeals via CRA
The US Treasury rescinded the 2024 rule on "gross proceeds reporting by brokers regularly providing digital asset sale services." After Congress overturned the rule via the Congressional Review Act, it became ineffective and was removed from the Code of Federal Regulations. The rule had required certain DeFi and crypto brokers to file information returns. Republican lawmakers led by Senator Ted Cruz and Representative Mike Carey argued the rule would stifle US crypto innovation and push development overseas; the Joint Committee on Taxation estimated repeal would cause nearly $4 billion in lost revenue over a decade. The government and industry observers viewed the repeal as a win for privacy, feasibility, and innovation. Related regulatory developments include exempting banks and brokerages from reporting crypto holdings under certain risk management standards, SEC guidance suggesting some crypto arrangements may not constitute reporting liabilities, and accounting treatment around SAB 121...
Visa Stablecoin-Linked Card Payments Up Nearly 200% Year over Year
Visa reported that its stablecoin-linked card payment volume grew nearly 200% in fiscal 2026 versus the prior year, with more than 160 stablecoin-linked card programs globally covering consumer, business, and commercial markets. In fiscal 2026, about 17% of stablecoin-linked card volume came from business and commercial programs; settlement volume reached an annualized run rate of over $20 billion. Visa noted stablecoin use on its network is expanding beyond crypto platforms, including the Bridge (Stripe) partnership now in 18 countries, targeting over 100 by the end of 2026, with 175 million merchant acceptance points. Visa also highlighted stablecoin settlement and cross-border fund movement via Visa Direct, and experiments paying recipients such as creators and gig workers directly in stablecoins. The report did not disclose 20...
South Korean Financial Authorities Warn of AI Hacker Risk, Launch Emergency Inspection of Financial Institutions
South Korean financial authorities warned that recent cyber incidents in the financial sector may involve AI-assisted hacking, stressed the urgent need to develop AI-based security systems, and plan emergency inspections of financial institutions. An emergency meeting originally set for October 7 was moved up, with participants including major banks, savings banks, insurers, fintech firms, and regulators to assess response and coordinate action. FSC Chairman Lee Ok-yeon said a single vulnerability can collapse security, and although no sensitive data leak has been confirmed, secondary attacks such as voice phishing may occur, emphasizing cross-agency cooperation with the Ministry of Science and ICT and the National Police Agency. Authorities did not rule out AI use in the attacks and called for rapid deployment of AI security measures and AI security testing. Investigators suspect the same attacker is involved in multiple incidents, mainly targeting auxiliary systems such as HR and loan recruitment rather than core transaction systems; no consumer financial services have been...
ESMA Calls for MiCA Adjustments: DeFi Access, Staking, and Restrictions on Non-Compliant Stablecoins
ESMA proposed MiCA amendments aimed at clearer rules, stronger investor protection, and broader supervisory powers, covering DeFi access, staking, crypto lending, and stricter asset classification. Key points include enhanced disclosure, stronger enforcement tools (such as blocking scam websites, freezing assets in suspected market abuse or terrorist financing, and addressing non-EU entities soliciting EU clients), and stricter rules on stablecoins that do not meet MiCA standards. For emerging services, ESMA recommends clearer criteria for decentralized activities, a new regulated crypto-asset service for DeFi access, and binding opinions to unify token classification across the EU. These recommendations were submitted to the European Commission's MiCA review process, are not yet binding, and have no legislative timetable or final text. They also include simplifying white paper notifications, reducing duplicate authorizations, and measures for tokenized securities and on-chain...
SEC Crypto Custody Proposal IA-7023: Opens Self-Custody and State Trust Companies, But Not Yet an Effective Rule
The SEC proposed draft rule IA-7023 governing investment advisers' and regulated funds' custody of crypto assets, involving amendments to the Investment Company Act and Advisers Act, and is a proposal rather than an effective rule. The draft introduces two custody paths: a redesigned adviser custody regime (to be renamed Rule 223-1) and new Investment Company Act custody rules (proposed as Rules 17f-8 and 17f-9), with plans to repeal or restructure existing rules. Self-custody is allowed only when no qualified custodian exists, under strict conditions: quarterly reviews, documented safeguarding expertise, robust private key management, dual authorization, client-specific on-chain addresses, annual security reviews, independent internal control reports, and ongoing written agreements treating crypto assets as financial assets. Regulated funds must have their boards review and approve the feasibility of self-custody. This mechanism mainly fills the crypto custody gap beyond traditional bank custody wrappers, while...
India's Central Bank Remains Cautious on Crypto but Supports Tokenization
India's central bank remains cautious on cryptocurrencies but supports tokenization, distributed ledger, and central bank digital currency (CBDC) initiatives. Governor Sanjay Malhotra flagged concerns over monetary sovereignty, policy, capital flows, and the "singleness of money," while seeing tokenization and AI as potential efficiency tools under safety guardrails. The central bank is piloting tokenized financial instruments (corporate bonds, certificates of deposit) and a programmable digital rupee settlement system. On enforcement and regulation, FIU-IND has issued AML and compliance notices to 15 offshore crypto platforms; crypto platforms operating in India must register with FIU-IND and comply with AML rules. India has not yet enacted comprehensive crypto law, but AML and tax rules apply; the 2025 Income Tax Act clearly defines virtual digital assets (VDAs), covering crypto and tokenized assets. Internal government documents had previously leaned toward banning...
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21 Major Banks Team Up to Launch Dollar Stablecoin, Led by Goldman Sachs and Citi
A group of 21 major banks led by Goldman Sachs, Citi, and Bank of America plans to jointly establish a bank-owned entity to issue a stablecoin backed 1:1 by dollar reserves, targeting a token launch in the first half of 2027, with a euro version to follow. The entity is expected to be formed in the second half of 2026, with governance, fee-sharing, and tech stack still undecided; the 21 institutions span North America, Europe, Asia, the Middle East, and Africa. The move is seen as a coordinated challenge under the GENIUS Act and OCC framework, led by regulated banks rather than crypto-native issuers, directly targeting Circle's USDC and Tether's USDT, focused on cross-border payments and institutional digital asset settlement.
Jeeves Raises $110M to Expand Enterprise Stablecoin Banking to 35 Countries
Enterprise stablecoin banking platform Jeeves closed a $110 million funding round led by CoinFund, with participation from AllianceBernstein, Andreessen Horowitz, Coinbase Ventures, GIC, and Y Combinator. The company says revenue grew 4x over the past 14 months, card and payment annualized volume exceeds $5 billion, and stablecoin annualized volume reached $1.5 billion. Jeeves plans to expand its stablecoin card service from 25 to 35 countries, adding Argentina, Costa Rica, Peru, and Uruguay. New features include a standalone stablecoin wallet for instant transfers to 190 countries, AI spend tracking tools, and accounts receivable management modules, aiming to use on-chain settlement plus fiat and stablecoin rails to lower cross-border payroll...
Circle Urges EU to Ease Bank-Deposit-Style Stablecoin Reserve Requirements
USDC issuer Circle is calling for EU reform of MiCA, focusing on foreign stablecoins. Key proposals include: narrowing MiCA's scope and using a recognition regime to bring major international stablecoins under EU supervision, letting issuers with EU business be supervised by their home country; maintaining a multi-issuance model that allows MiCA-regulated issuers to partner with foreign counterparts to serve large stablecoins; and replacing the current 30% to 60% bank reserve requirement for e-money tokens with looser liquidity or asset requirements to reduce risk exposure to the banking system. Circle notes that only a tiny fraction of the top 25 stablecoins are MiCA-regulated, arguing for broader coverage of major foreign stablecoins. The position comes as diplomatic circles suggest the EU may adjust stablecoin rules in response to global regulatory trends.
Chainalysis Uses AI to Cut Bitget $387M Hack Tracing from 20 Hours to Under 10 Minutes
Chainalysis says its AI-driven tracing technology cut the time to investigate the $387 million Bitget theft from about 20 hours to under 10 minutes. The firm attributes the intrusion to North Korea-linked actors, involving multi-asset money laundering across cross-chain bridges, including XRP and Bitcoin. North Korea-linked crypto theft losses have exceeded $1 billion so far in 2026, highlighting pressure on exchanges, cross-chain bridges, and custodians from state-sponsored threats. Faster AI forensics could enable quicker fund freezing and recovery, and may push regulators to treat AI analytics as a standard security practice. Chainalysis did not disclose all AI methods, but the development shows crypto incident response is compressing from hours to minutes.
ESMA Proposes Ban on EU Custody and Transfer of Non-Compliant Stablecoins
ESMA proposed expanding MiCA-related restrictions to ban custody and transfer services for non-compliant stablecoins in the EU. This would prevent licensed crypto custodians from holding or transferring non-compliant stablecoins even after delisting, stricter than January 2025 guidance that allowed custody but did not mandate conversion. The proposal does not include a mandatory conversion timeline; its main effect is to immediately create obstacles for new purchases and restrict existing balances held through licensed institutions. This will change Europe's competitive dynamics, potentially giving compliant stablecoins an advantage in distribution channels. The background is ESMA's stance shifting from allowing custody to not allowing holding of non-compliant tokens, focused on banning licensed services related to non-compliant stablecoins.
Community Banks Sue OCC, Challenging Crypto Trust Bank Charter Rules
A group of community banks sued the US Office of the Comptroller of the Currency (OCC), challenging rules that allow crypto companies to apply for national trust bank charters. Trust banks differ from full-service banks: they cannot take ordinary deposits but can provide custody and asset management services. The plaintiffs argue the OCC overstepped, saying granting charters to non-deposit institutions does not match federal law's requirement linking national banks to deposit-taking; the OCC argues trust charters are legitimate within its regulatory toolkit. If the lawsuit succeeds, crypto companies that have obtained or are applying for trust bank charters could lose federal status and fall back to state licenses, creating regulatory and operational uncertainty. The case could also affect broader crypto regulatory momentum and agency authority boundaries.
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Fiserv Launches Stablecoin Banking Platform, First Use Case Is North Dakota's Roughrider Coin
Fiserv has officially launched a digital asset platform for financial institutions, with the first production use case being Roughrider Coin, a USD-backed stablecoin from a North Dakota bank. The coin is issued by VersaBank, with Fireblocks providing digital asset infrastructure and tokenization and Solana handling transaction processing. The platform integrates issuance, blockchain settlement, wallets and core banking systems, aiming to speed settlement and improve liquidity and reconciliation efficiency, and to align stablecoin use with traditional banking rails. If the model can be replicated across more banks, it would be a concrete, scalable path to institutional crypto adoption and tokenization. Roughrider Coin is designed to improve intra-network fund movement in North Dakota, showing that regulated stablecoins can operate within standard banking infrastructure rather than as standalone crypto products.
SEC Proposes New Crypto Custody Framework: Advisers Can Limitedly Self-Custody, State-Chartered Trusts Can Qualify
The US Securities and Exchange Commission on October 1, 2026 proposed a new crypto asset custody framework amending custody rules under the Investment Advisers Act and Investment Company Act to address compliance gaps for registered investment advisers and regulated funds handling crypto assets. The plan would let advisers self-custody under certain conditions, provided they first determine no qualified third-party custodian is available for the asset and reconfirm quarterly; it also explicitly allows state-chartered trust companies to serve as qualified custodians if they meet conditions including state banking regulator authorization, asset segregation and internal control reporting. The proposal still requires a 60-day public comment period after publication in the Federal Register and is not yet in effect. The SEC said the current custody framework lacks available, robust custodians for most crypto assets, and the new rules aim to provide a compliance path while maintaining US leadership in crypto innovation.
Visa: Commercial Payments Now 17% of Stablecoin-Linked Card Volume
Visa said that roughly 17% of stablecoin-linked card volume so far in fiscal 2026 comes from corporate and commercial card programs, and that it currently supports more than 160 stablecoin-linked card programs spanning consumer, business and commercial use cases. The data shows stablecoins expanding from crypto spending cards into treasury management, settlement and cross-border commercial payments, with use cases including cross-border settlement, treasury management and supplier payments, and institutions increasingly treating stablecoins as infrastructure rather than speculative assets. The report also noted regulation will affect adoption speed, with Europe's MiCA and regulated stablecoin distribution (such as EURC and Base) shaping the ecosystem.
Fake Safe Contract Weaponizes Aave Looping Module, Causing $305,000 Loss
SlowMist's incident analysis points to an exploit of about $305,000 involving two Safe multisig wallets and FlashLoopAdapter, a third-party module used to automate Aave v3 leveraged positions. The vulnerability was not in Aave v3 or Safe's core multisig contracts, but in the external FlashLoopAdapter: a malicious contract tricked the adapter into believing it was an enabled Safe, then used the adapter to make privileged calls to the real Safe, bypassing owner signature checks. The attacker controlled swapRouter and swapCalldata, directing operations to chosen instructions and ultimately calling execTransactionFromModule() on the target Safe. The execution relied on a large Morpho...
Robinhood Lets AI Agents Open Trading Accounts and Credit Cards, Widening Liability Gap
Robinhood launched agentic trading features letting autonomous AI agents place orders and manage investments through Agent Apps and Loops, plus an agent credit card tied to Robinhood Gold. The system separates data access from trade execution: agents have broad read access to a user's Robinhood data, but orders execute through a separate agent account, raising questions of liability and regulation. Since May 2026, more than 150,000 users have opened agent accounts, with agents interacting with Robinhood tools about 30 million times a day. FINRA acknowledges the risks but says its rules are technology-neutral, and no SEC rule directly governs such accounts; current fiduciary standards also do not allow registered advisers to have AI manage client funds, creating a gap between retail users and institutions...
Ethereum Foundation Launches zkAPI, Enabling Mainnet Zero-Knowledge Payments for AI Models Without Revealing Identity
The Ethereum Foundation and the Open Anonymity Project launched zkAPI on Ethereum mainnet, letting users pay for AI models and metered APIs without revealing their identity. Users deposit ETH or USDC into a private vault, and the device generates a zero-knowledge proof showing a funded balance was used without revealing which one; the zkAPI server then issues a temporary API key with a spending cap, usage is deducted from the private balance, and a nullifier prevents double-spending. Use cases include AI chat and agents, blockchain RPC queries, image and video generation, VPN bandwidth and machine-to-machine payments. Note that zkAPI does not provide network-layer anonymity—requests from a fixed IP may still be correlated, and prompt content for AI...
US Treasury Targets A7 Shadow Banking Network and A7A5 Crypto Channel
The US Treasury on October 1, 2026 stepped up enforcement against the A7 shadow banking network. OFAC designated the A7 network as a significant transnational criminal organization, freezing its property within US jurisdiction; FinCEN issued an alert and proposed a rule to bar US financial institutions from processing money transmissions involving A7-controlled offshore sub-agents. On the crypto side, A7A5, a ruble-backed stablecoin linked to Kyrgyzstan's Old Vector LLC and tied to the Grinex ecosystem, serves as an internal settlement and mirroring mechanism that can move value within Russia and correspond to international fiat payments. Between February 2025 and June 2026, more than 180 entities processed about $179.1 billion in A7A5 transactions, which were also bridged to USDT. OFA...
Visa Data Shows Stablecoins Accelerating in Commercial Payments, B2B Cross-Border at 43%
Visa released data showing stablecoin use in commercial payments continues to grow. So far in fiscal 2026, about 17% of stablecoin-linked card transaction volume comes from commercial and corporate programs; Visa supports more than 160 stablecoin-linked card programs across consumer, commercial and enterprise tiers, with program volume up about 200% year over year. Actual use skews toward institutional settlement rails—moving funds quickly between counterparties and settling obligations—rather than consumers paying directly with crypto at checkout. The cross-border dimension is pronounced: 43% of attributable B2B stablecoin volume is cross-border, the highest of any category. Visa's stablecoin platform supports cross-network storage, minting, burning, redemption and wallet infrastructure; operations depend on custody controls, blockchain reliability and fiat redemption paths, and sanctions screening, anti-money-laundering and counterparty due diligence remain essential.
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US Treasury Issues First GENIUS Act Rules, Drawing Stablecoin Regulatory Line at $10 Billion
The US Treasury on September 30, 2026 published the first interim final rule under the GENIUS Act, effective immediately upon release, establishing a Stablecoin Certification Review Committee (SCRC) to assess whether state regulatory regimes are "substantially equivalent" to federal standards. The rule's core is a $10 billion issuance threshold creating a two-tier system: stablecoins with circulating supply under $10 billion may operate under SCRC-certified state regimes, while those above $10 billion must move into the federal framework within 360 days unless granted an exemption. In practice, issuers like Tether—above $10 billion and not US-registered—are effectively excluded from the state path; Circle, which already holds an OCC charter, is aligned with federal oversight. The rules are procedural and still await PRA information collection...
Open Standard's Shared Stablecoin OUSD Launches with Visa, Mastercard and Stripe Backing
Open Standard, a consortium of more than 140 banks, fintechs, payment and crypto companies, launched the stablecoin OpenUSD (OUSD), issued on Base, Ethereum, Solana and Tempo, with Mastercard, Visa, Stripe and Coinbase as founding partners providing roughly $1 billion in initial liquidity. Its model is a "shared economy": users receive value based on network transaction volume rather than assets under management, incentivizing banks and partners to adopt OUSD for payments, clearing, institutional trading, corporate treasury management and fintech infrastructure. Reserves are held at BNY, Lead Bank and BlackRock, bridged cross-chain through the Open Standard platform, and Coinbase in October...
SEC Proposes Tailored Crypto Custody Rules for Investment Advisers and Funds
The US Securities and Exchange Commission (SEC) issued a proposal amending custody rules for registered investment advisers and regulated funds to cover digital assets. The proposal adds two paths: one allowing advisers, under strict conditions, to self-custody client and fund crypto assets, and another making state-chartered trust companies qualified custodians. The scope covers registered investment advisers, business development companies and registered investment companies, amending the Investment Advisers Act of 1940 and the Investment Company Act. The proposal also strengthens asset safekeeping measures, internal controls and financial audit requirements, on the grounds that existing custody rules predate crypto assets and poorly match actual arrangements. Chair Atkins and Commissioner Peirce issued separate statements on the direction, but the proposal is not yet a final rule.
Lloyds and Visa Complete $750,000 Real-Time Cross-Border Settlement Pilot Using USDC
Lloyds Banking Group and Visa completed a seven-day real-time cross-border pilot settling $750,000 in USDC stablecoin. USDC was purchased through Archax, settled via Lloyds' Jersey corporate market into account, and reached Visa in under an hour, including over the weekend. The trial also tested cross-chain settlement: Lloyds ran a Canton Network node while Visa used another public chain, with the focus on interbank settlement rather than customer card transactions. In context, Visa's stablecoin settlement activity continues to grow with a multi-chain setup, and stablecoin settlement has an annualized run rate exceeding $20 billion; Lloyds has also participated in a broader UK banking pilot for tokenized pound deposits.
US Treasury Urges Congress to Expand Authority, Plans to Classify DeFi and Blockchain Validators as Financial Institutions
The US Treasury sent a letter to Congress proposing a series of crypto and DeFi regulatory changes to tighten counter-terrorism financing. Key points include: creating new secondary sanctions tools targeting fintech and crypto, aimed at exchanges and certain money transmission service providers; substantially revising the Bank Secrecy Act and adjusting the scope of IEEPA, redefining "financial institution" to include crypto exchanges, virtual asset service providers, wallet providers, blockchain validators and some DeFi services; explicitly authorizing the designation of blockchain nodes or transaction elements; and extending OFAC jurisdiction to US-pegged stablecoin transactions possibly involving foreign entities. Treasury's rationale is that existing sanctions tools poorly match modern crypto financing, but the move could force validators, wallets and DeFi protocols to enforce KYC and AML.
Stable Integrates Visa Direct for Real-Time USDT Cross-Border Payouts in 195+ Countries
Stable integrated Visa Direct into StableChain, its Layer-1 network with USDT as the native asset, enabling on-chain settlement to pay directly into bank accounts or mobile wallets in more than 195 countries for instant cross-border payments. StableChain prices gas in USDT and settles in USDT with sub-second finality; the Visa Direct integration provides a two-way bridge to global banking infrastructure, so recipients need no crypto wallet to receive funds. The STABLE token has a fixed supply of 100 billion, reserved for governance and staking, not used for gas or as a payment medium. The move follows earlier efforts enabling Polygon wallet users to send USDT or PYUSD to bank accounts, and maintains user custody before settlement...
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UK FCA Opens Five-Month Crypto Authorization Window, New Regime Takes Effect October 2027
The UK Financial Conduct Authority (FCA) announced that crypto firms may formally apply for authorization from September 30, with a five-month window running through February 28, 2027; the new regime takes effect on October 25, 2027. The FCA stressed that authorization is not automatic and firms must demonstrate they meet standards or may be rejected; existing AML registrations will not automatically convert into full authorization. The new regime will bring trading platforms, intermediaries, custodians, qualifying stablecoin issuers, and staking arrangers under supervision, with activity-specific requirements on best execution, asset safekeeping, stablecoin backing, prudential resources, and market abuse. Those who apply within the window may continue operating until review is complete.
US Senator Daines Introduces ADAPT Act: Stablecoin Payments Could Be Tax-Exempt
US Senator Steve Daines introduced the 56-page Aligning Digital Assets with Principles of Taxation Act (ADAPT Act). Its core is to generally exclude gains and losses from purchases of goods and services using regulated USD stablecoins from taxation, but with conditions and exceptions; dealers and brokers are not covered. The bill also proposes extending wash-sale and constructive-sale rules to digital assets (with stablecoins excluded from constructive sale), and establishes tax rules for staking, mining, lending, network and transaction fees, and sourcing of income from specific activities. Qualifying dealers could elect mark-to-market treatment, and foreign investors could gain a limited safe harbor. The bill also excludes gains and losses on small network fees (under $10) and defines key terms such as digital assets and regulated stablecoins. This is Congress clarifying…
ESMA Proposes Tightening MiCA: DeFi Gateways, Marketing, and Staking Disclosures
The European Securities and Markets Authority (ESMA) proposed tightening recommendations for MiCA, focusing on DeFi gateways, staking, and lending. These include plans to restrict non-compliant stablecoins and prohibit crypto firms from engaging in MiCA-licensed activities involving such stablecoins, affecting custody and transfer services; tightening marketing rules for influencers and third-party promotion, expanding disclosure requirements on costs, risks, rewards, collateral, and potential losses, and granting powers to detect, block, and shut down scam websites, freeze assets amid market abuse or terrorist financing concerns, and crack down on offshore firms soliciting EU investors. ESMA also proposed criteria for identifying genuinely decentralized activities and a new regulated DeFi access service, and unified the EU's approach to token classification through binding opinions. This runs parallel to the Commission's MiCA review, with no firm timetable yet.
Stripe Makes Open USD the Default Stablecoin for Business Payments
Stripe designated Open USD (OUSD) as the default stablecoin for its business payments. OUSD is issued by Stripe subsidiary Bridge, with reserves held by BlackRock, Lead Bank, and BNY and attested monthly; it charges no mint or redemption fees, has no transaction volume caps, and uses a shared-yield model in which most reserve interest flows back to participating partners after a small fee. OUSD is multi-chain from day one, running on Base, Ethereum, Solana, and Tempo, with liquidity already live on Coinbase, Kraken, and Uniswap; at Tempo launch, liquidity exceeded $400 million. Businesses on the Stripe platform will use OUSD as the default stablecoin, with initial integrations including BVNK and…
SEC Revises Token Buyback Guidance and Releases Enforcement Statistics
The US SEC published and then revised a crypto asset securities law FAQ, clarifying token buyback guidance. The revision states that if a token system is not yet fully operational or lacks a central actor, issuer buybacks of tokens may raise securities concerns, responding to a loophole industry lawyers had previously flagged. The move accompanies a parallel CFTC FAQ and occurs during broad rulemaking after the CLARITY Act's setback. Commissioner Hester Peirce is about to depart, widening leadership vacancies at the SEC and CFTC, with the CFTC now down to a single commissioner. The SEC also faces criticism over FY2026 enforcement numbers, a backlog of delinquent filings, and newly added crypto fraud actions. Note that FAQs and interpretive documents themselves have no legal force and merely reflect staff views.
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UK FCA opens crypto authorization gateway, firms must remap business categories under new FSMA rules
The UK Financial Conduct Authority (FCA) launched its FSMA-based crypto authorization gateway, which is not a single license but requires firms to map their actual activities precisely to regulated categories. The gateway opens at 7am UK time on September 30, 2026, with the main application window closing on February 28, 2027, and the regime expected to take effect on October 25, 2027. Existing anti-money-laundering registrations will not automatically convert to FSMA authorization, and the timeliness and completeness of applications will significantly affect the review path, with late or incomplete filings facing stricter processes or limited outcomes. The FCA requires detailed business mapping covering order flow, wallets, contracts, key management, client residence, and responsible persons, with nine categories of regulated activity including qualifying stablecoin issuance in the UK, qualifying cryptoasset custody, arranging custody, operating a qualifying trading platform, …
US OCC conditionally approves three digital asset firms for national crypto bank charters
The US Office of the Comptroller of the Currency (OCC) conditionally approved national crypto bank charters for three digital asset firms: Bastion Platforms, Catena Trust Bank, and Agora National Trust Bank. These charters let the companies conduct trust services, digital asset custody, clearing, and payment settlement under federal bank supervision, but do not include traditional FDIC deposit insurance or standard commercial lending. Agora National Trust Bank will bring its AUSD stablecoin business under New York trust supervision, requiring at least $10 million in Tier 1 capital and completion of pre-opening reviews within 18 months; Bastion converts its New York state trust charter to a national one, focusing on white-label stablecoin infrastructure for institutional clients; Catena targets AI-driv…
SEC staff narrows token buyback guidance to networks with no central actor
The US SEC's Division of Corporation Finance updated its crypto token buyback FAQ on September 28, narrowing the scope to networks that are both 'operational' and have 'no central actor.' The revised text says that if a network meets both conditions, an issuer announcing buybacks of non-security crypto assets will not be seen as promising necessary managerial efforts and thus is unlikely to constitute an investment contract under the Howey test; if the network is not yet operational, buyback announcements may still be viewed as promising returns to holders. This follows the initial September 25 release, and the SEC stressed it reflects staff views and is not legally binding. a16z crypto's Miles Jennings had criticized the original wording and welcomed the update. The FAQ does not define 'central actor,' with the core concept being that when a network is operational and lacks central control, buyback statements are less likely…
Tether partners with Shiga to expand financial services in Africa and GCC via self-custody wallets
Tether invested in Shiga Digital to expand self-custody crypto services in Africa and the GCC using Tether's open-source Wallet Development Kit (WDK). Shiga's Enta wallet uses a self-custody design with passkey and biometric authentication and supports USDT, Bitcoin, and tokenized gold, aiming to provide USDT payments and cross-border tools that do not rely on centralized custody. On compliance, Shiga holds a DIFC innovation license and partners with licensed money transfer institutions, operating in Africa and Gulf states and connecting to regional digital asset frameworks in the UAE, Saudi Arabia, and Qatar. For developers, WDK can lower the barrier to building self-custody wallets in these regions; for the market, it helps enable fast, low-cost stablecoin…
Telegram's built-in wallet rebrands to Walt, prepares Gram wallet
Telegram's in-app Wallet rebranded to Walt, expanding from a Toncoin and Bitcoin wallet into a platform offering trading, yield products, tokenized assets, and perpetual contracts across more than 300 assets on multiple chains. At the same time, Telegram will launch a separate Gram wallet aimed at more than 1 billion users, supporting in-app purchases, transfers, gifts, and payments with a self-custody design. Walt and the Gram wallet serve different purposes: Walt covers broader trading and asset holding, while the Gram wallet handles in-app activities such as buying Gram, transfers, gifts, and services, and can be funded from Walt. Future plans include crypto cards and AI-assisted trading tools, but no exact launch dates were given. Reports also mention Telegram's 2019 action by the SEC over its original Gram token sale…
South Korea weighs crypto market-making rules after JPYC deviated fourfold from its peg
South Korea is reassessing crypto market-making rules after the yen-backed stablecoin JPYC traded as high as four times its peg on Upbit due to insufficient liquidity. The Financial Services Commission is considering introducing a market-making system to improve liquidity, price stability, and reduce user losses from sharp price spikes. The current Virtual Asset User Protection Act lacks a market-making exemption in its market manipulation rules, but the FSC has signaled possible changes. The review aligns with broader crypto regulatory work, including the planned Digital Asset Basic Act covering stablecoins, exchanges, disclosure, and internal controls; however, key provisions remain pending legislation, especially rules for won-denominated stablecoin issuers.
Tether froze $550 million in Iran-linked USDT in 2026
Tether said it froze about $550 million in USDT linked to Iran's central bank and sanctioned networks in 2026, one of its largest enforcement actions this year. The freezes came in two waves: more than $344 million in April involving two addresses later designated by OFAC as tied to Iran's central bank, and more than $130 million in July involving four wallets. The actions show faster on-chain sanctions enforcement and were coordinated with US law enforcement and OFAC. Tether's sanctions work has covered 67 countries and more than 340 law enforcement agencies, with total global frozen assets exceeding $4.9 billion. The case shows stablecoins are equally subject to traditional sanctions tools and that on-chain action can be taken more quickly once regulatory guidance is clear, meaning issuers and exchanges face greater compliance pressure to block sanctioned fund flows.
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Citi and Coinbase Expand Partnership to Bring Stablecoin Settlement into Corporate Fiat Payments
Citi and Coinbase announced an expanded partnership launching a US payments service linking fiat and stablecoins. Corporate clients can accept stablecoin payments at checkout via Spring by Citi, with Coinbase handling conversion and Citi acting as settlement bank, so merchants need not hold or handle crypto assets themselves; Coinbase will use Citi's Banking-as-a-Service to offer bank-like account features, letting received fiat automatically convert into stablecoins. Citi says this lets merchants reach more than 150 million stablecoin holders and replaces custom integrations with existing regulated banking infrastructure, reducing complexity and risk. The service launches first in the US as part of Citi's round-the-clock real-time USD clearing and tokenized payments strategy.
Coinbase Opens Single-Platform Trading in Crypto, US Stocks and Derivatives to AI Agents
Coinbase expanded its Coinbase for Agents platform, letting AI agents trade crypto assets, US stocks, ETFs and derivatives through a single interface. Agents must operate within user-set spending caps and permission scopes, connecting via Model Context Protocol or a command-line interface; stock trades are executed by Coinbase Capital Markets Corp., with Apex Fintech Solutions handling clearing and custody, providing ordinary investor protections. The platform offers zero fees, fractional share trading from as little as one dollar, and 24/5 crypto trading, and uses the x402 micropayment protocol so agents can buy market data instantly using their trading balance. Coinbase positions this as 'Everythi…'
Stripe Enables Automatic Stablecoin-to-Fiat Settlement for US Merchants
Stripe enabled automatic stablecoin-to-fiat settlement for US merchant accounts, letting merchants accept USDC and receive USD payouts without managing crypto wallets or taking on FX risk. In the flow, merchants using Stripe Crypto Onramp or Pay with Crypto receive USDC, which Stripe automatically converts to USD and deposits into their bank account on the standard payout schedule, with conversion records shown in the Stripe Dashboard. USDC is currently supported on Ethereum and Solana, with other networks to follow; settlement direction can be set as stablecoin-in/fiat-out, fiat-in/stablecoin-out or stablecoin-in/stablecoin-out. For now it is limited to native integrations on US accounts, with no international launch timeline announced and no formal FX fee schedule.
SEC Updates Crypto FAQ: Token Buybacks Without a Central Actor Need Not Be Investment Contracts
The SEC updated its crypto FAQ, stating that token buybacks executed by a decentralized network with no central actor do not necessarily constitute investment contracts, offering a clearer regulatory stance for some token mechanisms. The guidance extends from nine FAQs issued by the SEC's Division of Corporation Finance on September 25, 2026, covering staking receipts, marketing language, essential managerial efforts, functional networks and buyback announcements, and stresses these are staff views without legal force. The FAQ distinguishes asset classification from investment contract determination, noting staking receipts that merely prove ownership without transfer, lending, staking or rehypothecation are more likely digital tools; marketing that describes existing features or future vision, if not tied to profit expectations, generally does not constitute a promise of managerial efforts.
US Senate Probe: Iran-Linked Wallets Heavily Use Tether's USDT
A briefing by the US Senate Permanent Subcommittee on Investigations, chaired by Senator Richard Blumenthal, says Tether's USDT is a core tool for Iran's shadow banking and terrorist-financing networks. The 28-page investigation analyzed blockchain data on 846 sanctioned or Iran-linked wallets, finding that about 757 wallets tied to Iranian terrorist financing used USDT in 87% of their transactions. The probe concludes Iran prefers USDT for its high liquidity and broad exchange acceptance, and says Tether repeatedly failed to freeze or block illicit wallets, calling for further investigation into sanctions and banking law violations. Tether responded that USDT is not a safe haven for sanctioned actors, saying it has frozen about $550 million in Iran-related USDT over the past year.
Volante and Circle Partner to Bring USDC Directly onto Bank Payment Rails
Volante Technologies and Circle announced on September 28 that USDC can settle directly within bank payment rails. The integration embeds Circle's USDC API into Volante's low-code Payments as a Service platform, letting banks initiate, route, clear and settle USDC payments within the same workflow alongside traditional rails such as SWIFT, ACH and SEPA, without building separate wallets or custom networks. Treasury teams can convert between fiat and USDC on a single control plane, with minting and redemption reflected in core ledgers. The report notes this marks stablecoin settlement moving from pilot to production-grade bank infrastructure, and under the GENIUS Act federal framework lets non-bank platforms rely on bank-grade issuers…
Hong Kong SFC and AFRC Expand Financial Reporting Oversight Cooperation to Virtual Asset Service Providers
Hong Kong's Securities and Futures Commission and the Accounting and Financial Reporting Council signed a new memorandum of understanding expanding cooperation on financial reporting, auditing and compliance to licensed virtual asset service providers, licensed corporations, registered open-ended fund companies and authorized funds. The agreement covers financial and compliance reporting, related audit and assurance work, information sharing, case referrals, mutual assistance, and coordinated inspections and investigations. The new MOU replaces the 2021 version, reflecting structural changes after the former Financial Reporting Council was renamed the Accounting and Financial Reporting Council in 2022. SFC Chairman Tim Lui said the expanded cooperation lets supervision cover a broader financial sector. The move is part of Hong Kong's tightening of digital asset regulation, after previously outlining frameworks for crypto adviser rules, crypto margin financing and perpetual contracts.