Crypto Regulation and Compliance Updates

California Department of Financial Protection and Innovation updates the Digital Financial Asset Law (DFAL), requiring companies and individuals providing crypto services to California residents to be licensed or apply by July 1, 2026, facing enforcement risks. The law establishes a regulatory framework for digital assets, similar to New York's BitLicense, and is expected to promote nationwide compliance standard unification.

_Coin Center urges the Senate to advance the BRCA bill to protect crypto developers who do not control user funds from prosecution._ Coin Center has urged the US Senate Banking Committee to advance legislation that would shield crypto developers from prosecution when they do not control user fun

The prediction markets in the United States have rapidly emerged in recent years, attracting the attention of regulatory agencies. SEC Chairman Paul Atkins emphasized that the legal status of prediction markets as "gambling" or "financial instruments" remains controversial, especially for contracts involving events such as elections. The overlapping regulatory authority requires collaboration between federal and state governments, and whether clear rules will be established in the future remains to be seen.

South Korea has lifted a nine-year crypto trading ban, allowing 3,500 corporations to invest in the top 20 cryptocurrencies with a cap of 5% of their equity. This move aims to enhance institutional participation and reshape the crypto market dynamically.

Nevada gaming regulators have filed a lawsuit against prediction market platform Kalshi. While seeking to block its operations in the state. The case filed after a federal appeals court rejected Kalshi’s request to stop the action. State officials say the platform offers unlicensed wagering that

A serious security incident occurred on Moonwell's DeFi lending protocol due to a critical vulnerability in smart contract code allegedly written by AI model Claude Opus 4.6, resulting in a $1.78 million exploit. The issue stemmed from incorrect pricing of cbETH, allowing manipulation of the system.

The US prediction market giant Kalshi has been sued in Nevada for allegedly operating unlicensed sports betting, with the state claiming that its business poses a threat to legal gambling. Kalshi argues that federal law applies, sparking a fierce dispute between federal and state authorities, which could have a profound impact on the future development of the US gambling market.

Nevada regulators have sued prediction market platform Kalshi, seeking a court order to ban its unlicensed sports betting operations. Kalshi's trading volume has surged, with this year's Super Bowl Sunday trading volume being 27 times higher than last year. The company has requested a federal court to hear the case, arguing that only federal law applies.

Investment bank TD Cowen指出, filling the Democratic vacancies at the SEC and CFTC could accelerate negotiations on the U.S. Crypto Market Structure Bill. The main obstacle is the political controversy over conflict of interest rules, with Democrats wanting to prevent senior officials and their families from participating in certain digital asset transactions, especially those involving Trump's crypto projects. Both parties need to reach a compromise to advance the bill.

PANews February 18 News, according to the U.S. Department of Justice official website, a U.S. man from Glendale was sentenced to 57 months in federal prison for engaging in illegal activities such as selling various drugs on the dark web marketplace and accepting cryptocurrency. Law enforcement agencies disclosed that the related illegal transactions were settled entirely in cryptocurrency. This operation is part of a cross-agency effort to combat transnational crime, drug trafficking networks, and human smuggling. The goal is to systematically target criminal organizations and their supply chains that rely on the dark web for operations.

The Ninth Circuit denied Kalshi's emergency stay request, allowing Nevada to pursue civil enforcement actions against the prediction market operator. Kalshi may appeal to the Supreme Court to block enforcement, as the case raises questions about federal vs. state regulatory authority.

The Epstein files reveal a 2018 meeting where Gary Gensler, then an MIT professor, was set to discuss digital currencies with Epstein, linking him to coordinated crypto regulatory actions during his SEC tenure, including the Ripple case.

A U.S. court awarded Shark Tank star Kevin O’Leary $2.8 million in damages after ruling against crypto influencer Ben “Bitboy Crypto” Armstrong in a defamation case. Failed Attempt to Overturn Judgment A U.S. court has ordered entrepreneur and television personality Kevin O’Leary to be

ChainCatcher News, according to Jinshi, the White House in the United States has expressed support for the "Digital Asset Market Transparency Act." The bill aims to enhance transparency and regulation in the digital asset market.

Odaily Planet Daily reports that CoinDesk posted on the X platform that Ripple CEO Brad Garlinghouse believes there is an 80% chance that the CLARITY Act will be passed before the end of April. Additionally, the probability that the "CLARITY Act will be signed in 2026" on Polymarket is currently reported at 61%.

Stablecoin infrastructure provider BVNK has obtained a crypto asset service provider license from the Malta Financial Services Authority, allowing it to offer EU-regulated digital asset services within Malta and the European Economic Area, further strengthening its role as a compliant settlement bridge between traditional euros and stablecoins.

Victory Fintech has received a crypto license from Hong Kong’s SFC, marking the 12th regulated virtual asset platform in the city. This approval demonstrates Hong Kong's renewed focus on regulatory compliance for digital assets, attracting reputable firms and enhancing investor trust.