Crypto Regulation and Compliance Updates

Senator Chris Murphy has proposed regulating prediction markets after allegations of insider trading by people close to the Trump Administration. According to Bubblemaps, six insiders profited close to $1.2 million betting on the U.S. strike on Iran just hours before it happened. Senator Chris Mur

Riot Platforms agreed to pay $20 million dollars to SBI Crypto to settle a three-year lawsuit regarding a Bitcoin mining storage agreement in Texas. The complaint began in April 2023, with SBI initially seeking over $175 million dollars in damages.

U.S. lawmakers face renewed pressure as negotiations over stablecoin rewards continue without resolution after a March 1 deadline. Banks oppose interest-like rewards while crypto firms seek flexibility, leading to ongoing discussions and pending Senate Banking Committee actions.

Federal court ruled Uniswap is not liable for scam tokens traded by third party issuers. The judge found no proof that Uniswap had knowledge of fraud or helped deceptive schemes. The four year class action ends with

Turkey's proposed 10% tax on crypto income marks a shift towards regulation amid fiscal challenges. While it offers a competitive base rate, the presidential discretion to adjust it creates uncertainty, potentially impacting trading behavior and investor confidence.

GoPlus Chinese Community issued a warning that North Korean hackers have published 26 malicious packages on the npm registry. These packages can execute hidden malicious code and steal user information. Users should verify the source of software packages and avoid using the listed malicious packages to prevent privacy leaks and asset loss.

ChainCatcher News, Prime Minister Sanae Yoshioka has posted on social platform X denying any association with this token. The Prime Minister's Office also issued a statement saying, "No approval has been granted."

CEX Co-Founder Ben Delo pledges to donate $27 million to the London Mathematical Science Research Institute to support research in theoretical physics, pure mathematics, and artificial intelligence. He hopes the institute can cultivate outstanding scholars and criticizes the shortcomings of the UK's research funding mechanism. Meanwhile, UK lawmakers are calling for a suspension of cryptocurrency political donations to prevent external interference.

The Japanese Financial Services Agency is seeking assistance from the private sector to strengthen anti-money laundering measures for cryptocurrencies. They plan to launch a pilot project within three months to test transaction compliance. Several companies are involved, aiming to enhance AML effectiveness through information sharing and promote the integration of cryptocurrencies with mainstream finance. This trend is expected to attract more institutional investors and improve market confidence.

Former Los Angeles Police Officer Eric Halem was convicted of kidnapping and robbing a teenage Bitcoin holder, valued at approximately $350,000. The case highlights the risks of cryptocurrency in crime, reminding investors to protect digital assets against theft and scams. Sentencing will take place on March 31.

On March 3, news reports indicated that the prediction market Kalshi sparked controversy due to the death of Iran's Supreme Leader Khamenei. Traders expressed dissatisfaction with the "death clause," and returns were modest. Market trading volume surged, but improper operations face regulatory risks. Analysts warn that prediction markets need to balance commercialization and compliance, and trading on sensitive events should be approached with caution.

The U.S. Senate passed the "21st Century Housing Roadmap Act," which includes restrictions on central bank digital currencies, with 84 votes in favor and 6 against, demonstrating bipartisan consensus. The bill requires the Federal Reserve not to issue digital dollars until explicitly authorized by Congress and also focuses on housing supply and affordability in an effort to address the housing crisis. The passage of this bill could have a profound impact on future digital currency regulation.

Charles Hoskinson criticized Ripple's CEO Brad Garlinghouse for supporting the Clarity Act, claiming it poses risks to cryptocurrency innovation. He argued that the bill categorizes XRP as a security at launch, potentially harming future projects in the industry.

The U.S. SEC has moved cryptocurrencies out of its 2026 regulatory priorities, marking a shift in regulatory attitude by incorporating digital assets into the routine oversight of financial markets. This change could attract more capital to the U.S. digital asset market while reducing regulatory pressure on the industry. However, price volatility and security issues remain major concerns.

The U.S. Senate housing bill now includes a provision banning the Federal Reserve from issuing a retail CBDC until at least 2031, reflecting growing congressional interest in digital currency policy and potential impacts on financial technology strategies.

The prediction market industry in the United States faces political and regulatory pressures. An alliance led by Congressman Mick Mulvaney is calling for increased enforcement, restricting market expansion, and emphasizing that it is essentially gambling that must comply with relevant laws. Meanwhile, some lawmakers are pushing for stricter regulations, especially targeting certain controversial prediction events. The prediction market industry is actively countering, arguing that current regulations should be overseen by the CFTC, and that the industry is still growing rapidly, exploring new product models to expand market influence.

OpenZeppelin conducted an audit of EVMbench and found that the training data was contaminated, and at least four high-risk vulnerabilities are invalid forgeries. This affects the AI model's security assessment capabilities. If the AI has previously "seen" vulnerability reports, it will not accurately reflect its ability to discover new vulnerabilities. This highlights issues with the credibility of benchmark test data and methodologies.

Japanese Prime Minister Sanae Takaichi strongly denies involvement in the issuance of the cryptocurrency called SANAE TOKEN, which is promoted in her name and has caused social panic. The latest reports indicate that the coin's price has plummeted by over 50%. The issuer claims that the coin promotes political participation but was not authorized by the government, leading to public condemnation and legal issues. Investors should stay vigilant to avoid financial scams.