Regulation & Policy

Japanese Prime Minister Fumio Kishida on March 2 denied any connection to the SANAE TOKEN named after him, causing the token to plummet by 58%. The Financial Services Agency investigation found that the issuer did not hold the necessary exchange licenses. Similar incidents are occurring frequently worldwide, providing references for future regulation, with legal grounds potentially becoming a regulatory template for other countries.

Cardano founder Hoskinson criticizes the Ripple-supported "Clarity Act" for potentially classifying XRP as a security, sparking community controversy. He warns that most new tokens may face similar risks. Ripple CEO Garlinghouse argues that clear regulatory rules are more beneficial. XRP is currently under technical pressure, with the $1.30 support level being critical, and market trends should be closely monitored.

The European Central Bank warns that the proliferation of stablecoins could threaten the monetary sovereignty of the Eurozone, especially when foreign currency stablecoins dominate the market, affecting financial stability and policy transmission effectiveness. Many European banks are developing euro stablecoins to address potential risks and enhance financial stability.

Chairman Michael Selig of the U.S. Commodity Futures Trading Commission (CFTC) stated that the CFTC plans to launch cryptocurrency perpetual futures within the next month to attract liquidity back to the U.S. market. He emphasized that the lack of legislative certainty limits the actions of regulatory agencies and pointed out that progress on the Market Structure Bill remains behind schedule. Additionally, Selig is currently the only CFTC commissioner confirmed by the Senate, highlighting the challenges in advancing policy.

The FATF report states that stablecoins have become the main virtual asset involved in illegal transactions, accounting for an estimated 84% of illegal transaction volume by 2025, involving a total of $154 billion. The report calls for strengthened regulation of issuers and warns that non-custodial wallets are a key vulnerability, recommending that countries impose anti-money laundering obligations on stablecoins.

Japanese Prime Minister Sanae Takaichi clarified that she has no knowledge of the cryptocurrency called SANAE TOKEN and has not approved this project, aiming to clear up public misunderstandings. The token was issued by entrepreneur Mizoguchi Yūji and experienced a brief surge before rapidly falling after a statement.

PANews March 4 News, according to Cointelegraph, the governor of Indiana has officially signed HB 1042 (the Bitcoin Rights Act) into law. The bill aims to protect Bitcoin rights, prohibit discriminatory tax policies against cryptocurrencies, and allow digital assets to be used in state retirement plans. According to previous reports, if the bill is signed by the governor, it will take effect on July 1, 2026.

Investment bank TD Cowen believes that the banking industry may be at a disadvantage in the debate over stablecoin yield policies, which could delay the progress of the U.S. Crypto Market Structure Act. The report notes that banks' opposition to stablecoin yields may harm consumer interests, making political support difficult to sustain. Meanwhile, the OCC is proposing rules related to stablecoins, including a ban on direct interest payments, and will also seek public comments in the future.

Senate housing bill bars Fed from issuing or facilitating a retail CBDC, including similar digital assets, until 2030. Measure passed 84–6 after late insertion, formalizing limits despite prior Fed stance requiring Congress approval. U.S. pauses digital dollar plans as China and Europe

A virtual currency named "Sanae Token" named after Prime Minister Sanae Takashi has appeared in Japan, prompting an investigation by the Financial Services Agency. Prime Minister Takashi denies any association with the token, claiming her image has been misused. This incident highlights the insufficient regulation of the virtual currency market and calls for attention to subsequent government measures.

ChainCatcher News, according to Jinshi, IMF Deputy Managing Director Gita Gopinath stated that stablecoins pose risks, but a clear regulatory framework can effectively mitigate these risks.

Chairman Mike Selig of the U.S. Commodity Futures Trading Commission announced that a policy will be introduced within the next month to promote the legalization of crypto asset perpetual contracts in the United States. He emphasized that this initiative will be carried out in collaboration with the U.S. Securities and Exchange Commission and is dedicated to providing a clearer regulatory framework for the crypto industry, ending long-standing enforcement uncertainties.

The Central Bank of Brazil has issued new regulations requiring licensed cryptocurrency trading platforms to submit proof of funds daily starting from 2027 and to adhere to banking standards for data protection. Accounts must be segregated, and cross-border transfers will be restricted to prevent money laundering and other criminal activities.

CFTC Chairman Mike Selig stated that the agency will allow professional perpetual contracts to operate in the U.S. within the next month and expects to issue an announcement. Meanwhile, the CFTC and SEC are advancing digital asset policies through Project Crypto, aiming to provide clear guidance for the industry. SEC Chairman emphasized that legal certainty is still needed, and relevant legislation in the Senate is still under negotiation.

Tokenization Pre-IPO is popular in the crypto space, but investors should be cautious of potential risks, as what is purchased may only be a promise rather than actual shares. SPV is a common compliance tool and must adhere to regulatory requirements, especially regarding legal and investor qualification issues. Phyrex pointed out that some products are merely derivative exposures, and investors need to be careful to avoid the risk of illegal fundraising.

Over the past two years, regulatory discussions around stablecoins have become increasingly intense. Hong Kong and the United States have respectively introduced regulatory frameworks, marking the transition of stablecoins from market experiments to formal institutionalization, making them compliant assets. Hong Kong plans to issue stablecoin licenses and promote their use, while the US clarifies their positioning within the financial system, demonstrating that stablecoins are gradually integrating into the mainstream financial ecosystem. This shift lays the foundation for the sustainable development of the global digital currency ecosystem.

A federal judge has returned Nevada's civil enforcement action against prediction markets Kalshi and Polymarket to state court, increasing the risk of restrictions on their operations amid growing state regulatory pressure.

Kalshi recently caused controversy due to the death news of Hameini, leading to a surge of funds into related prediction contracts, which resulted in settlement chaos and a trading halt. Although Kalshi refunded users with a net loss of approximately $2.2 million, the platform's promotional activities were criticized and prompted U.S. lawmakers to call for investigations into similar assassination-related contracts. Polymarket also faced controversy, as the settlement of certain contracts angered users and raised suspicions of insider trading.

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

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.