1. Todd Blanche, Deputy Attorney General of the U.S. Department of Justice (DOJ), recently decided to dissolve the National Cryptocurrency Enforcement Team (NCET), provoking strong criticism from six Democratic Senators. They stated in a letter to Blanche that this move is tantamount to 'giving a green light to cryptocurrency money launderers', undermining anti-money laundering (AML) and counter-terrorist financing (CFT) measures, and potentially allowing drug traffickers, terrorists, and fraudsters to exploit this loophole.
Blanche cited President Trump's executive order on cryptocurrency from January in a memorandum, emphasizing that the DOJ should not act as a regulator of digital assets. He instructed the DOJ to refrain from pursuing criminal charges against cryptocurrency exchanges, mixers, or offline wallets for user behavior or violations of regulations such as the Bank Secrecy Act, and instead focus on combating the use of digital assets for criminal activities, such as organized crime, gang financing, and terrorism.
Senators believe this approach is 'absurd' and point out that allowing entities like cryptocurrency kiosk operators to operate without regulation will only lead to more Americans being exploited. They urged Blanche to reconsider the decision to dissolve the NCET, stating that the group is an important resource for state and local law enforcement agencies investigating cryptocurrency-related crimes.
New York Attorney General Letitia James also expressed similar concerns, calling on Congress to pass federal legislation to regulate the cryptocurrency market. She pointed out that establishing a strong regulatory framework has become even more critical following the DOJ's announcement to dissolve the federal criminal cryptocurrency fraud enforcement unit.
This move reflects a policy shift in the Trump administration regarding cryptocurrency regulation, which could have far-reaching implications for the regulatory environment of the digital asset industry.
2. Bitcoin price volatility: Recently, the price of Bitcoin briefly dropped to $79,000, setting a new quarterly low and raising market concerns about its future trend.
ETH price drops: Due to the impact of the new tariff policy from the Trump administration, the price of ETH has fallen by 10%, affecting market sentiment.
Circle applies for IPO: USDC issuer Circle has submitted an IPO application to the U.S. Securities and Exchange Commission, planning to list on the New York Stock Exchange under the ticker symbol 'CRCL'.
SEC approves ETH ETF options trading: The U.S. Securities and Exchange Commission has approved the trading of ETH ETF options, marking further development of cryptocurrency financial products.
Ukraine considers taxing crypto assets: Ukraine is considering implementing a personal income tax of up to 23% on crypto assets to regulate the tax policy in this field.
3. Nova Labs, as the parent company of the Helium blockchain, has agreed to pay $200,000 to settle the civil securities fraud charges brought by the U.S. Securities and Exchange Commission (SEC). The SEC accused Nova Labs of exaggerating its partnerships with companies such as Nestlé, Salesforce, and Lime during a round of financing from late 2021 to early 2022, misleading investors. For example, Nova Labs claimed these companies were clients and users of its technology, but in reality, contact with these companies was very limited and mainly occurred before the Helium network launched in mid-2019. Nestlé and Lime later issued cease-and-desist orders to Nova Labs, threatening legal action.
According to the settlement agreement, Nova Labs neither admits nor denies any wrongdoing. As part of the agreement, the SEC agreed to withdraw its allegations that Helium Network Token (HNT), Helium Mobile Network Token (MOBILE), and Helium IoT Network Token (IOT) are securities. This means the SEC cannot bring lawsuits on the same allegations in the future.
Nova Labs described this settlement as a significant victory for Helium and the 'People's Network' in a blog post, highlighting that selling hardware and distributing tokens to promote network growth does not automatically make these tokens securities. However, the blog did not mention the $200,000 fine or the allegations of misleading investors. Nova Labs' Chief Legal Officer Sarah Aberg stated that although the settlement agreement prohibits the company from admitting or denying the allegations, she noted that the data usage of the Helium network has always been publicly accessible.
4. Trump signs resolution to repeal IRS tax rules targeting DeFi.
U.S. President Trump signed a congressional resolution formally repealing the IRS rules introduced at the end of the Biden administration. These rules were initially intended to classify DeFi platforms as 'brokers' and required them to track and report user activities. This marks the first significant legislation passed by the U.S. Congress in support of the cryptocurrency industry.
SEC issues new statement urging crypto projects to disclose more information.
The U.S. Securities and Exchange Commission (SEC) issued a non-binding staff statement recommending that crypto projects provide more detailed disclosures when their tokens may be considered securities. The statement emphasized the importance of clear explanations of business operations and the roles of tokens but did not specifically identify which tokens qualify as securities.
Nova Labs reaches settlement with SEC, pays $200,000 fine.
Nova Labs, the parent company of the Helium blockchain, agreed to pay $200,000 to settle SEC's securities fraud charges. The SEC accused Nova Labs of exaggerating its partnerships with companies such as Nestlé, Salesforce, and Lime during the funding period from 2021 to 2022. However, as part of the settlement, the SEC dropped its allegations that Nova Labs' tokens (including HNT) are securities.
