Launchy Regulatory Roundup #73 - SEC and CFTC Team Up on Project Crypto

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Welcome to our 73rd 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: SEC and CFTC Team Up on Project Crypto 🤝 

• Global Legal Roundup

• Case Study: Tether Stays Neutral in Stablecoin Yield Fight 🔎 

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HEADLINE

SEC and CFTC Team Up on Project Crypto

State of play: The SEC and CFTC have announced a joint initiative called Project Crypto, marking a shift away from years of regulatory infighting toward a coordinated approach to crypto oversight in the US.

• Speaking at a joint event, SEC Chair Paul Atkins and CFTC Chair Michael Selig said modern financial markets no longer fit clean regulatory boundaries.

• Fragmented oversight across trading, custody, and risk management has created confusion, not better investor protection.

• Project Crypto will focus on modernizing rules and aligning how both agencies regulate digital assets while Congress continues working on market structure legislation.

• As an interim step, the agencies are exploring a shared framework to clarify which crypto assets are treated as securities versus commodities.

• Selig also signaled a policy reset on prediction markets. He directed staff to withdraw past proposals that restricted political and sports related event contracts and to draft clearer rules for event contracts instead.

What’s Next: The SEC and CFTC will formalize cooperation, align crypto classifications, and move forward on clearer rules for prediction markets while Congress finalizes legislation.

Why it Matters: This ends the regulatory turf war and cuts uncertainty for crypto markets. A unified approach makes the US more competitive and easier to build in.

Our Take: The shift on prediction markets shows regulators are choosing clarity over bans.

GLOBAL LEGAL ROUNDUP

America:

• 🇺🇲 SEC clarifies rules for tokenized securities.

• 🇺🇲 US Treasury sanctions Iran-linked crypto exchanges.

• 🇺🇲 Senate Agriculture Committee advances digital asset bill.

• 🇺🇲 Trump names crypto-friendly Kevin Warsh as pick for Fed chair.

• 🇺🇲 Crypto & bank organizations set to hash out stablecoin rewards.

• 🇺🇲 Fairshake amasses $193M war chest ahead of November midterms.

• 🇺🇲 US DOJ finalizes $400M forfeiture tied to Helix darknet crypto mixer.

• 🇺🇲 ​​Senators press Deputy AG Blanche on alleged crypto conflicts of interest.

Europe:

• 🇷🇺 Russia to roll out crypto regulatory framework this July.

• 🇷🇺 Russia effectively bans WhiteBIT crypto exchange over Ukraine ties.

• 🇬🇧 UK advertising watchdog pulls Coinbase ads.

• 🇬🇧 UK banks block or delay around 40% of payments to crypto platforms.

• 🇪🇺 European Commission calls on 12 countries to implement crypto tax rules.

APAC:

• 🇯🇵 Japan to approve its first crypto ETFs in 2028.

• 🇰🇷 S.Korea tightens crypto licensing rules for exchanges and shareholders.

• 🇭🇰 Hong Kong regulators to submit draft bill for crypto framework in 2026.

CASE STUDY

Tether Stays Neutral in Stablecoin Yield Fight

State of play: Tether CEO Paolo Ardoino pushed back on claims that the company is siding with banks to restrict stablecoin yield in ongoing US crypto legislation debates.

• He said Tether does not take a position on the issue because USDT does not share yield with users.

• The clarification comes as stablecoin yield has become a major sticking point in Congress.

• Crypto firms argue the issue was already settled under existing law and that banks are trying to limit competition.

• Reports suggested Tether may be aligned with banks after its new US operation met with Senate Banking Committee members.

• Ardoino rejected that framing, saying Tether’s focus is simply maintaining its current regulatory position rather than lobbying on yield policy.

The debate has already had real consequences. Coinbase withdrew support for the Senate Banking Committee’s version of the crypto market structure bill, citing concerns over stablecoin rewards and DeFi provisions.

Our Take: As lawmakers remain split, disagreements over stablecoin yield continue to slow progress on broader crypto legislation.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

• Daniel Barabander’s read on The 7 Powers in Crypto.

• Rodrigo’s read on the Taxonomy on Tokenized Securities.

• Paradigm’s read on SEC–CFTC Coordination:US Market Innovation.

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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.