Launchy Regulatory Roundup #38 - 11 Senators Hold Crypto Ties Amid Regulation Push

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Welcome to our 38th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

In Today's Edition:

• Headline: 11 Senators Hold Blockchain Investments 🔎 

• Global Legal Roundup: Hong Kong Passes Stablecoin Bill 🇭🇰 

• Case Study: Why Tether Is Rejecting MiCA Rules 🇪🇺 

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HEADLINE

11 Senators Hold Crypto Ties Amid Regulation Push

State of play: Cointelegraph reports that 11 US senators hold crypto-related investments. Democratic lawmakers have raised concerns over conflicts of interest, but efforts to ban congressional investments in regulated industries have largely failed.

Here are 11 US senators who have invested in crypto firms:

• Tim Sheehy (R): Intercontinental Exchange

• Steve Daines (R): Sold various crypto ETFs (Valkyrie, VanEck, ProShares, Bitwise)

• Jacky Rosen (D): PayPal

• Dan Sullivan (R): BlackRock

• Markwayne Mullin (R): Intercontinental Exchange, BlackRock; spouse owns PayPal

• Tommy Tuberville (R): PayPal

• Katie Britt (R): Spouse owns Block

• Bernie Moreno (R): eToro ($500K–$1M)

• Shelley Capito (R): Spouse owns BlackRock

• Dave McCormick (R): Bitwise Bitcoin ETF

• Sheldon Whitehouse (D): Tesla, Block, PayPal (minor holdings)

Meanwhile, Trump’s crypto czar, David Sacks expects the bipartisan bill to pass despite the controversy around Trump family-linked firms.

• He says the bill potentially unlocks massive demand for US Treasurys by regulating stablecoins.

What’s Next: The GENIUS Act, a bipartisan stablecoin regulation bill, is advancing in the Senate. Final passage remains uncertain due to added provisions, but key supporters expect it to pass soon.

Why it Matters: Lawmakers investing in crypto while shaping regulation raises ethical concerns. At the same time, the bill could legitimize stablecoins and create new demand for US Treasurys.

Our Take: Lawmakers have long invested in industries they regulate, crypto is just the newest example. The real issue is outdated ethics rules that still allow these conflicts across sectors.

GLOBAL LEGAL ROUNDUP

America:

• 🇺🇲 DOJ is investigating Coinbase data breach.

• 🇺🇲 Texas House passes strategic Bitcoin reserve bill.

• 🇺🇲 Texas governor signals support for Bitcoin reserve bill.

• 🇺🇲 SEC’s Peirce says NFT royalties do not make tokens securities.

• 🇺🇲 SEC charges Unicoin crypto platform over alleged $100M fraud.

• 🇺🇲 Crypto perp futures coming ‘very soon,’ says CFTC’s Mersinger.

• 🇺🇲 Genesis files dual lawsuits to claw back $3.3B from DCG, Barry Silbert.

• 🇺🇲 Michigan lawmakers file 4 crypto bills on retiree funds, CBDCs, mining.

• 🇺🇲 Senators plan to amend GENIUS Act to address Trump family's stablecoin.

• 🇦🇷 Argentina's Milei shuts down task force investigating LIBRA scandal.

Europe:

• 🇬🇧 Binance scores legal win as UK court partially dismisses Bitcoin SV lawsuit.

Middle East & Africa:

• 🇦🇪 Dubai regulator clarifies real-world asset tokenization rules.

APAC:

• 🇵🇰 Pakistan creates Digital Asset Authority to regulate crypto.

• 🇮🇳 India’s Supreme Court urges government to regulate crypto.

• 🇭🇰 Hong Kong passes stablecoin bill, set to open licensing by year-end.

• 🇰🇷 South Korea tightens crypto rules ahead of institutional market entry.

• 🇦🇺 Australian court ruling could lead to $640M in Bitcoin tax refunds.

• 🇦🇺 Australian regulator asks High Court to allow appeal in Block Earner case.

CASE STUDY

Why Tether Is Rejecting MiCA Rules

Credits to Cointelegraph for the original article.

State of play: Tether has decided not to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulation, which introduces strict requirements for stablecoin issuers.

• Key reasons include the demand to hold 60% of reserves in European banks, which Tether argues could increase fragility and privacy concerns.

• Tether claims that its user base lies primarily in countries like Turkey, Brazil, and Nigeria.

• In those countries, USDT serves as a practical hedge against local inflation and weak banking systems.

Rather than adjust its operations to fit EU mandates, Tether is doubling down on markets that are more welcoming to crypto innovation and is expanding into sectors like AI, agriculture, and media through its venture arm.

• As jurisdictions create vastly different compliance frameworks, companies are forced into a strategy of regulatory arbitrage, optimizing for regions with fewer restrictions.

Our Take: Tether’s bet is clear: the future of stablecoins and crypto adoption won’t be decided in Brussels, but in emerging markets and crypto-forward nations that prioritize utility over bureaucracy.

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NOTEWORTHY READS & MEME

• Alex Thorn’s read on the anti-stablecoins NYT op-ed. 

• Nic Carter’s read on stablecoins and dollar dominance.

• Alexander Grief’s thread on GENIUS Act and the opposing side. 

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.