USDGlobal Crypto Rules Weekly: Fed Drops Risk Rule, IRS Cracks Down
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Federal Reserve Removes ‘Reputational Risk’ from Bank Assessments, Boosting Crypto Sector Potential
The US Federal Reserve has removed the term "reputational risk" from its assessments of banks, marking a shift away from subjective measures that hampered crypto startups. This decision enables banks to use objective financial risk assessments, potentially boosting lending to the crypto sector. The Fed aims for sound risk management while allowing banks discretion on reputation risk evaluations. This change comes amid pressure from the Trump administration to strengthen the economy and follows criticisms of previous anti-crypto policies. The new environment fosters traditional banking services for crypto businesses, aiding innovation and financial support within the sector for future growth.
FHFA Moves to Integrate Bitcoin into Mortgage Lending Qualifications
The U.S. Federal Housing Finance Agency (FHFA) has requested proposals from Fannie Mae and Freddie Mac to integrate cryptocurrency, particularly Bitcoin, into mortgage lending qualifications. This marks a significant shift in recognizing digital assets within the credit system, allowing crypto holdings to supplement traditional financial reserves with certain constraints. Assets must be held on U.S.-regulated exchanges and will face valuation discounts due to volatility. Critics express skepticism over the initiative's long-term viability amidst a fragile housing market, while its implementation could influence broader financial sectors and redefine wealth assessments in the U.S. economy.
Spike in IRS Warning Letters Hits Crypto Investors Amid New Regulations
In recent weeks, there has been a significant surge in IRS warning letters sent to U.S. crypto investors, with CoinLedger reporting a 758% increase. This situation may signal a broader enforcement wave ahead of new 1099-DA regulations effective January 1, 2026. The most common notice, Letter 6174, serves as an educational reminder, while more severe notices like Letter 6173 and CP2000 can lead to audits if not addressed. Confusion arises as many investors misinterpret tax obligations, particularly concerning wallet-to-wallet transfers. Taxpayers can respond with documentation if they believe they reported accurately, but serious notices may require professional assistance.
BJP Proposes Pilot Program for Bitcoin in India’s National Reserves
On June 26, 2025, Pradeep Bhandari, spokesperson for India’s ruling Bharatiya Janata Party (BJP), proposed a pilot program for holding Bitcoin in national reserves. He argued that this initiative could bolster India's economic resilience and align it with global trends, citing the U.S. Bitcoin reserve strategy and Bhutan’s renewable energy-based mining model as successful examples. Bhandari emphasized India's abundant renewable resources, suggesting adaptation of Bhutan’s mining practices without dependence on foreign markets. He recommended a careful and regulated pilot program to evaluate the role of digital assets within India's fiscal framework without rushing into implementation.
Hong Kong Passes Stablecoins Bill to Boost Digital Assets and RMB Internationalization
Hong Kong has enacted the Stablecoins Bill, aimed at regulating digital assets and enhancing cross-border payments, thereby facilitating the internationalization of the RMB. Supported by major financial entities like HSBC, the legislation fosters financial innovation and institutional investment in stablecoins and asset tokenization. It seeks to increase market liquidity and stability, marking a significant shift in Hong Kong's financial landscape. The initiative could mirror the success seen in other regulated markets, such as Singapore. As of now, Tether (USDT) maintains a stable value at $1.00, with a market cap of approximately $156 billion and a daily trading volume of around $94 billion.
Japan Proposes Crypto Regulation Reforms, Including Bitcoin ETF Lift and Tax Cut to 20%
Japan's Financial Services Agency (FSA) is considering reforms to its cryptocurrency regulations, potentially lifting its Bitcoin ETF ban and reducing crypto taxation from 55% to approximately 20%. The proposal, set for review on June 25, aims to transition crypto assets from the Payment Services Act to the Financial Instruments and Exchange Act, classifying them as financial products. This shift is expected to enhance customer protections and foster institutional interest in digital assets. Japan's crypto market is projected to reach $2 billion in revenue by 2025, with users anticipated to grow to 18.69 million by 2026, necessitating a progressive regulatory framework.
Texas Establishes $10 Million Bitcoin Reserve, Joining Growing Trend Among States
Texas has recently enacted "Senate Bill 21," establishing a publicly funded Bitcoin reserve, following New Hampshire's lead as the first state to do so. Governor Greg Abbott has allocated $10 million to facilitate immediate Bitcoin purchases, marking a pivotal shift in state attitudes toward digital assets. This initiative reflects a broader trend, as numerous states explore cryptocurrency acquisitions with taxpayer funds. Contrasting with the federal government's budget-neutral approach funded by asset seizures and bonds, Texas lawmakers view Bitcoin as a long-term sovereign financial instrument rather than merely a speculative investment, indicating a significant evolution in state cryptocurrency policy.
Arizona Advances Bill to Create Crypto Reserve Fund for Seized Assets
Arizona's House of Representatives recently passed HB 2324, establishing a reserve fund for seized cryptocurrencies, with a 34-22 vote. This bill, which is awaiting Governor Hobbs' signature, follows the enactment of HB 2749, focused on unclaimed crypto assets. HB 2324 empowers the State Treasurer to manage a Bitcoin and Digital Assets Reserve Fund, allowing investments in crypto assets. The allocation of funds from forfeited assets would direct the first $300,000 to the Anti-Racketeering Revolving Fund, with subsequent amounts divided among this fund, the General Fund, and the new reserve, promoting responsible management of seized digital assets.
Turkey Introduces Stricter Crypto Regulations: Source Checks, Transfer Limits, and Compliance Measures
Turkey's Finance Ministry plans to implement stricter regulations on cryptocurrency transactions, requiring platforms to gather detailed source and purpose data for each transfer, including a 20-character transaction description. New measures include 48-hour and 72-hour withdrawal delays and daily/monthly limits on stablecoin transfers ($3,000/day and $50,000/month), with double limits for compliant platforms. Transfers for liquidity provision, market making, and arbitrage may be exempt from limits if monitored. These regulations align Turkey’s crypto rules with international standards, following previous licensing requirements. Violations may result in severe penalties, including license denials.
Strategy Faces Five Class Action Lawsuits Over $6 Billion Bitcoin Losses
Strategy, formerly MicroStrategy, faces five class action lawsuits alleging securities fraud related to its Bitcoin holdings, following $6 billion in unrealized losses after investing $7.7 billion in BTC at around $95,000 per coin. Law firms are competing for lead plaintiff status, which depends on the size of losses sustained by plaintiffs, with a July 15 deadline for selection. Notable stakeholders include Michael Saylor, Vanguard, and BlackRock. Strategy's Bitcoin holdings are valued at over $63 billion, but the company warned it may not regain profitability due to significant losses, prompting intense legal scrutiny and actions against it.
Ripple CEO Announces End of SEC Legal Battle, Focuses on Future Growth
Ripple CEO Brad Garlinghouse announced the firm is ending its long-standing legal battle with the SEC by dropping its cross-appeal. The years-long dispute began when the SEC accused Ripple of raising $1.3 billion via unregistered sales of XRP. A recent ruling partially favored Ripple, stating some sales did not violate securities laws, but also classified certain direct sales as securities, resulting in a $125 million fine. Despite attempts to lift the injunction affecting Ripple, both parties were unsuccessful. Garlinghouse emphasized the company's focus on building the "Internet of Value" moving forward, signaling a significant shift in priorities.
BaFin Settles Dispute with Ethena Labs, Initiates 42-Day Redemption Process for USDe Holders
Ethena Labs has reached a resolution with Germany’s BaFin regarding its USDe stablecoin, concluding a four-month regulatory dispute. A 42-day redemption plan allows USDe holders until August 6 to claim redemptions directly from Ethena GmbH, after which the company will be dissolved within the EU and EEA. BaFin previously halted Ethena's offerings, citing violations of the Markets in Crypto-Assets Regulation (MiCA) and froze USDe reserves. Though Ethena GmbH's MiCA application was rejected in March, approximately 5.6 billion USDe tokens remain in circulation globally, primarily issued before MiCA took effect.
This article has been refined and enhanced by ChatGPT.
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