• The GENIUS Act will face a Senate vote in mid to late May.
• Pro-crypto senators are confident that the bill will pass despite opposition.
• Senator Cynthia Lummis and Senator Kirsten Gillibrand support a late May timeline.
• The GENIUS Act aims to regulate stablecoins and protect smaller financial participants.
• Opposition from Senator Elizabeth Warren may lead to changes, but not to the bill’s core features.

According to emerging developments in Washington, the proposed GENIUS Act may soon receive Senate approval. Despite opposition, multiple sources suggest the bill could pass in mid to late May. Supporters believe the GENIUS Act will transform financial markets and help establish strong cryptocurrency regulations nationwide.

Pro-Crypto Senators Signal Confidence as GENIUS Act Gains Momentum

Support from leading pro-crypto senators continues to grow, with many expressing optimism about the GENIUS Act’s path forward. They believe bipartisan backing and recent amendments increase its chances of success in the Senate. While opposition remains, the bill’s core framework appears intact.

SCOOP: My DC sources indicate that the #GENIUSACT could be passed in the next week. Clear efforts by @SenWarren and key staff members on the Hill have been made to thwart this legislation. Yes, there will be some changes to this bill, but the core of #stablecoin legislation to…

— PaulBarron (@paulbarron) May 16, 2025

Senator Cynthia Lummis mentioned May 26 as a possible target date, aligning with Memorial Day discussions in the chamber. Senator Kirsten Gillibrand reportedly supports this projection and emphasized the importance of timely action. Meanwhile, other lawmakers believe the GENIUS Act could advance earlier, possibly in the third week of May.

The bill’s supporters claim it addresses key gaps in stablecoin regulation, especially around consumer protections and issuer obligations. According to sources, it would promote innovation while ensuring accountability for stablecoin issuers. These regulatory measures aim to create a competitive and safe environment for digital finance.

Senate Moves Forward with GENIUS Act

Although resistance continues from some anti-crypto lawmakers, it has not significantly altered the GENIUS Act’s primary objectives. Senator Elizabeth Warren and certain Capitol Hill staff members have pushed for modifications. However, analysts suggest these limited changes will not undermine the bill’s core intent.

The proposed GENIUS Act is designed to support financial inclusion and protect small participants in the digital asset space. Its authors believe fair regulation can enhance access to stablecoin-based solutions for everyday financial needs. The bill also outlines clear licensing standards for stablecoin issuers.

Reports suggest that debates remain over specific language, but consensus is building around key parts of the legislation. As momentum grows, political observers expect compromise over secondary clauses. The GENIUS Act remains on track to move forward despite internal disagreements.

GENIUS Act Seen as Central to US Crypto Leadership Strategy

The bill is promoted as a step toward national leadership in blockchain policy and digital asset integration. Supporters believe it aligns with wider goals to modernize financial systems through responsible cryptocurrency adoption and views it as a framework for future legislation across digital finance.

According to a self-described angel investor, the bill also complements former President Donald Trump’s broader plans to prioritize crypto innovation. He claimed internal government discussions support the notion of Senate approval during the third week of May. Proponents argue the bill will enhance US’s credibility in global crypto policy development.

House Financial Services Committee Chair French Hill maintains that the GENIUS Act and other financial reforms could be signed into law before August. He confirmed that the legislative process is advancing steadily with coordinated efforts across congressional bodies.

The post Stablecoin GENIUS Act May Pass Senate Soon as Support Quietly Grows appeared first on CoinCentral.

• Due to procedural issues, the court has blocked the proposed $50 million settlement in the Ripple vs. SEC case.
• Judge Analisa Torres ruled that the filing lacked the exceptional circumstances required under Rule 60.
• The decision delayed a resolution that both Ripple Labs and the SEC had agreed upon.
• Ripple’s previous legal victories, including the fact that XRP is not a security, remain unchanged.
• Ripple and the SEC have confirmed their continued commitment to resolving the case.

The Ripple vs. SEC case took a new turn after the court rejected a proposed $50 million settlement on procedural grounds. Judge Analisa Torres misruled on the motion filed under Rule 60, citing no exceptional circumstances to justify such relief. This decision stalled the agreement that both parties supported in deciding their legal standoff.

Despite an agreement between Ripple Labs and the SEC, the court emphasized that jurisdiction had not returned for final judgment. The judge’s procedural concern prevents the motion from moving forward in its current form. Ripple vs. SEC faces additional delays as both sides regroup to meet legal requirements.

Ripple Labs aimed to reduce its penalty from $125 million to $50 million, aligning with the SEC’s evolving stance on crypto oversight. However, at least temporarily, the court’s ruling blocks that compromise and signals further procedural steps are needed. Ripple vs. SEC continues to shape the broader regulatory landscape for digital assets.

Ripple vs SEC Heads Back to Court

Ripple maintains that previous court rulings in its favor still hold despite this new procedural setback. XRP remains classified as a non-security for secondary market sales, and the SEC has not disputed this finding. Ripple vs. SEC focuses on the legal nature of specific contracts rather than XRP itself.

#XRPCommunity #SECGov v. #Ripple #XRP Judge Torres has denied the parties’ motion for an indicative ruling. “If jurisdiction were restored to this Court, the Court would deny the parties’ motion as procedurally improper.” pic.twitter.com/4s95ILvzsy

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) May 15, 2025

The company’s Chief Legal Officer confirmed that both parties are committed to ending the dispute efficiently and lawfully. While the rejected settlement delays that resolution, no prior victories have been reversed or weakened. XRP vs. SEC lawsuit remains a critical reference point for ongoing crypto legal interpretations.

The court did not challenge prior determinations on XRP’s classification or Ripple’s partial legal success in earlier stages. Rather, the denial addressed only how the cross-appeal dismissal was structured under legal procedure. Ripple vs. SEC will now proceed with revised filings that comply with court expectations.

XRP Price Reacts to Court’s Decision

Following the court’s action on May 15, XRP’s value declined to $2.43, reflecting uncertainty after initial optimism. XRP had climbed over 23% from May 8 to May 14, reaching above $2.60 before reversing. Ripple vs. SEC developments significantly influence XRP’s price trends and trading behavior.

The rejection has amplified market volatility, as traders reassess timelines and potential outcomes in the legal process. With no immediate resolution, XRP’s price may remain sensitive to updates from the ongoing court proceedings. Ripple vs. SEC continues to impact market sentiment across the broader digital asset space.

Though Ripple and the SEC remain aligned on settlement terms, further court approval will be necessary to finalize the agreement. Both parties must return with a corrected filing to satisfy the procedural objections. XRP vs. SEC lawsuit remains unresolved but is moving toward a legally binding outcome.

The post XRP Lawsuit: Ripple vs. SEC Case Faces New Roadblock Despite Agreement on Terms appeared first on CoinCentral.

• DOJ will continue prosecution of Tornado Cash developer Roman Storm despite recent policy memo
• The trial is scheduled for July 14, 2025, on money laundering and sanctions violation charges
• DOJ will drop part of one count related to money transmitter registration requirements
• Storm’s defense argues coding should have free speech protections
• Storm’s co-developer Alexey Pertsev was sentenced in Dutch court but released pending appeal

The U.S. Department of Justice confirmed on Thursday that it will proceed with its prosecution of Roman Storm, a developer of the cryptocurrency mixer Tornado Cash, despite a recent policy memo that has impacted other crypto-related cases.

The DOJ has dropped only a portion of one count related to money transmitter business registration rules but will continue with the remaining charges when the case goes to trial on July 14, 2025.

Storm faces charges of knowingly transmitting funds tied to crimes, conspiring to commit money laundering, and conspiring to violate sanctions law. These charges stem from his work on Tornado Cash, an Ethereum-based mixer designed to enhance privacy by obscuring the origin and destination of cryptocurrency transactions.

In a letter filed to the judge overseeing the case, prosecutors stated that they had reviewed the case with the Office of the Deputy Attorney General. They determined that “this prosecution is consistent with the letter and spirit of the April 7, 2025 Memorandum from the Deputy Attorney General.”

The April 7 memo, authored by Deputy Attorney General Todd Blanche, directed prosecutors not to pursue cases where regulations may be unclear. The memo specifically advised against “regulation by prosecution” and has already impacted other crypto-related cases, including one against the developers of crypto mixer Samourai Wallet.

Free Speech and Code

Storm’s legal team continues to argue that the case should never have been brought. Brian Klein of Waymaker LLP, who represents Storm, has stated that dismissing the case “would be consistent with the policies of the Trump Administration and the principles outlined by the Department of Justice in its recent cryptocurrency guidance memo.”

Klein spoke at CoinDesk’s Consensus 2025 conference in Toronto on Wednesday, where he emphasized one of their key defense arguments.

“One of the defenses we’ve raised, which is recognized in the U.S., is that coding — literally typing out code — you are given free speech protections for coding,” he said. “It’s just as if you wrote a book or you did some other type of expressive activity.”

The defense’s position highlights an ongoing tension between law enforcement and developers of decentralized software. Amanda Tuminelli, executive director of the DeFi Education Fund, has stated that technologists building neutral privacy tools should not be held to “unreasonable criminal standards.”

Storm’s defense has found support among industry leaders, including Ethereum co-founder Vitalik Buterin. However, this argument has faced challenges in court already.

In September, U.S. District Judge Katherine Polk Failla denied Storm’s motion to dismiss, ruling that the use of computer code to facilitate money laundering is not protected under the First Amendment.

The decision to continue with Storm’s prosecution comes despite what some view as a shifting stance on crypto platforms under the current administration. The DOJ’s partial rollback of charges acknowledges some inconsistencies with federal guidelines, particularly concerning the Financial Crimes Enforcement Network’s 2019 clarification that “non-custodial entities” like Tornado Cash are not classified as money transmitters.

The U.S. Treasury sanctioned Tornado Cash in 2022, claiming that the protocol had facilitated more than $7 billion in illicit transactions. However, in March, the Office of Foreign Assets Control removed Tornado Cash from its sanctions list following a federal appeals court decision that found immutable smart contracts cannot be sanctioned as property.

Storm’s co-developer, Alexey Pertsev, was sentenced to over five years in prison by a Dutch court last year but was released under electronic monitoring in February pending an appeal.

The DOJ’s decision to proceed with most charges against Storm suggests that while there may be some reconsideration of how cryptocurrency platforms are regulated, individual developers may still face legal consequences for their involvement in creating tools that can be used for illicit purposes.

The trial is set to begin in Manhattan federal court in July 2025.

The post Code is on Trial: The DOJ Won’t Back Down in Roman Storm Tornado Cash Case appeared first on CoinCentral.

• FTX will begin distributing more than $5 billion to approved creditors on May 30 under its bankruptcy plan.
• The distribution will prioritize creditors with claims exceeding $50,000 who completed all compliance requirements by April 11.
• Claimants who chose Kraken or BitGo as their distribution provider may receive funds within one to three business days.
• All payouts are based on asset values from November 2022 and do not reflect current crypto market prices.
• FTX has already distributed $800 million to smaller creditors and plans a second round of $400 million later this year.

FTX will begin distributing over $5 billion to creditors on May 30 under its bankruptcy plan. The distribution will cover approved claims primarily exceeding $50,000, based on eligibility confirmed by April 11. This marks a major development in the FTX bankruptcy process, which began after its 2022 collapse.

FTX to Prioritize Large Creditor Payouts

FTX will focus this distribution round on creditors with approved claims over $50,000 who have completed all compliance steps. Eligible participants must have completed Know Your Customer checks, submitted tax documentation, and chosen a designated distribution provider. Those who missed earlier payments but met the compliance deadline will also be included.

BREAKING: FTX TO DISTRIBUTE $5B TO CREDITORS ON MAY 30TH

What do you think happens next? pic.twitter.com/NjATSkqaLT

— Arkham (@arkham) May 15, 2025

The funds will be disbursed through providers selected by the claimants, with Kraken and BitGo listed among the approved options. According to FTX, those using these platforms may receive funds within one to three business days post-May 30. The process reflects the estate’s effort to prioritize timely disbursement for higher-value claims.

Distributions are calculated using asset values as of FTX’s bankruptcy filing date in November 2022. Therefore, the payout does not reflect current market prices, which could be significantly higher.

FTX Urges Action Before June Deadline

Previously, FTX distributed around $800 million to creditors with claims below $50,000. A second and final round for this group will occur later in 2025 and total approximately $400 million. These smaller payouts help ensure a wider base of claimants receives recovery under the court-approved plan.

While the smaller payouts are separate from the $5 billion round, they remain part of the larger restructuring plan. All figures are still calculated using the November 2022 reference date for asset pricing.

FTX continues to urge all eligible parties to complete any pending steps before the final compliance deadline on June 1. Those who do not meet the requirement risk full forfeiture of their claims. The estate maintains a public portal for creditors to verify their current status and required documents.

Meanwhile, the FTX estate estimates that 98% of eligible creditors will recover at least 118% of their original claim in cash. These returns are calculated from the time of the bankruptcy filing, not current token prices. The plan reflects FTX’s efforts to maximize recovery and conclude proceedings.

The post High-Stakes Payout Looms as FTX Prepares $5 Billion Distribution appeared first on CoinCentral.

• Lawmakers have introduced bipartisan amendments to the GENIUS Act after it failed in the Senate.
• The amendments could prohibit Big Tech companies like Meta, Amazon, and Google from issuing stablecoins.
• One draft of the GENIUS Act may even ban Big Tech from holding any form of stablecoin.
• The bill introduces new requirements on consumer data privacy, financial risk, and fair business practices.
• The amendments also prevent stablecoins from using US-themed branding to avoid confusion with federal entities.

Lawmakers introduced bipartisan amendments to the GENIUS Act after it failed in the Senate last week. These amendments address concerns from both parties while introducing major restrictions on stablecoin activities. The GENIUS Act now targets Big Tech by imposing limitations on issuing or holding stablecoins, raising new compliance hurdles.

Meta and Google Face Crypto Limits

Senators revised the GENIUS Act to prohibit non-financial public companies from issuing stablecoins under strict regulatory conditions. These conditions include compliance with financial risk controls, data privacy rules, and business practice standards. The aim is to prevent firms like Meta, Amazon, and Google from entering the digital currency space.

The new language reinforces the line between banking and commerce, which many lawmakers view as critical for market stability. It follows Meta’s recent renewed interest in stablecoins, despite past regulatory pushback and failed initiatives. Lawmakers argue that firms with large consumer bases should not mix financial products with tech platforms.

🚨NEW: Big Tech language of page 2 of the GENIUS Act text. ⬇️ https://t.co/D8k7f2MiTE pic.twitter.com/lqgSCOJGOb

— Eleanor Terrett (@EleanorTerrett) May 15, 2025

Reports suggest another draft version may block Big Tech firms from holding stablecoins under any circumstances. This version would completely restrict firms like Google and Microsoft from owning these digital assets if passed. However, as the GENIUS Act language remains under negotiation, this provision has yet to be confirmed.

Here's a preview of how the GENIUS Act might — final text pending — limit major tech companies from owning stablecoins.

Tech companies would be prohibited from issuing stablecoins "unless they can meet strict criteria regarding financial risk" https://t.co/Lh2h4ZoxO8 pic.twitter.com/Wp0UtwbsIA

— Brendan Pedersen (@BrendanPedersen) May 15, 2025

GENIUS Act Tightens Rules on Branding

The GENIUS Act amendments also restrict stablecoins from using US-themed branding to prevent misleading associations with federal institutions. This proposal responds directly to recent cases like the controversial USD1 token. That product used patriotic branding without any government affiliation, prompting bipartisan criticism.

Amendments grant enforcement authority to the Treasury Department, reducing the role of the SEC and CFTC. Lawmakers introduced this shift after recent capacity reductions at both agencies weakened oversight efforts. The Treasury is expected to handle investigations and penalties for noncompliant stablecoin issuers.

New provisions also make it easier to launch enforcement actions without requiring prolonged administrative procedures. Lawmakers claim this improves regulatory response speed and strengthens consumer protections. The GENIUS Act, therefore, introduces a more centralized and actionable enforcement structure.

Revised GENIUS Act Gains New Support

Another section of the GENIUS Act amendments names federal employees with potential conflicts of interest, including Elon Musk. It highlights concerns about overlapping interests between public roles and private stablecoin activities. This provision aims to improve transparency and reduce perceived bias in regulatory decisions.

The proposed restrictions are seen as key concessions to win over skeptical senators and bipartisan support. Recent developments around stablecoin misuse and branding controversies shaped much of the amendment content. The revised GENIUS Act now positions itself as a comprehensive framework for digital currency regulation.

Though the bill failed in its earlier form, these changes clearly respond to the opposition it faced. Lawmakers hope the amended bill will resolve prior objections and secure the support it lacked last week. It could reshape stablecoin operations across the tech and finance sectors if passed.

The post GENIUS Act May Block Meta and Google from Stablecoin Ambitions appeared first on CoinCentral.

• Ripple CEO Brad Garlinghouse publicly praised Stuart Alderoty for leading the company’s legal defense in the XRP case.
• The court ruled in 2023 that XRP is not a security in most cases, limiting the SEC’s control over the token.
• Ripple spent over $150 million on legal fees during the three-year battle with the SEC.
• The ruling set a major precedent for how digital assets like XRP are regulated in the United States.

Ripple CEO Brad Garlinghouse publicly acknowledged Stuart Alderoty’s efforts after a major legal victory involving XRP. The case centered around whether XRP should be classified as a security under U.S. law. The outcome reshaped regulatory discussions and limited the SEC’s jurisdiction over digital asset markets.

Alderoty Leads Ripple’s Legal Victory

Ripple hired Alderoty shortly before the SEC initiated its lawsuit regarding XRP sales in late 2020. He led Ripple’s legal strategy and focused on distinguishing XRP itself from securities. This position became the core of Ripple’s defense throughout the multi-year case.

The court ultimately ruled in mid-2023 that XRP, particularly in secondary sales, does not qualify as a security. This ruling significantly reduced the SEC’s reach in overseeing cryptocurrencies. Ripple’s approach, under Alderoty’s guidance, prevented broader regulatory control over the digital asset space.

Love starting the day seeing my friend @s_alderoty getting the public recognition he deserves for the amazing work he’s done here at Ripple and in support of the crypto industry!https://t.co/ETd4nIz2cu

— Brad Garlinghouse (@bgarlinghouse) May 15, 2025

The decision set a key precedent and reinforced market clarity, especially regarding XRP transactions. Ripple spent over $150 million on legal defense, highlighting the scale and importance of the case. The result also influenced how similar cases might be handled across the industry.

SEC’s Case Against Ripple Reshapes Crypto Regulation

The SEC alleged Ripple violated securities laws by selling XRP without proper registration. Ripple countered that XRP was a digital currency, not a security, especially when traded in open markets. The case attracted attention due to its potential to redefine crypto classifications.

Ripple maintained that the XRP token lacked the characteristics that typically define securities. The court partially agreed, clarifying that most XRP sales, especially on exchanges, did not involve securities. The judgment protected Ripple and sent a strong message about enforcement limits.

Legal experts acknowledged the decision as one of the most influential in cryptocurrency regulation. The case marked a boundary for federal regulators in handling decentralized tokens like XRP. Following the ruling, Ripple continued its operations without major regulatory disruption.

Alderoty Advances to New Crypto Leadership Role

Following Ripple’s legal win, Alderoty was appointed president of the National Cryptocurrency Association in early 2024. The organization promotes policy discussions and aims to shape the evolving narrative around digital assets like XRP. His appointment reflects growing trust in legal voices within crypto leadership.

Garlinghouse praised Alderoty’s leadership and highlighted his role in protecting XRP and limiting SEC authority. His strategic direction helped Ripple resist sweeping regulatory classifications and preserve XRP’s market position. Alderoty’s transition marks a shift from courtroom battles to policy influence.

His leadership is expected to guide wider efforts in restoring public and legal trust in crypto. XRP remains central in these discussions, especially following the landmark court decision. Ripple, with XRP at its core, continues advancing under strengthened legal and industry backing.

The post Ripple CEO Credits Legal Chief for Surprise XRP Courtroom Victory appeared first on CoinCentral.

• Brazil has introduced strict crypto regulation focusing on stablecoin transfers.
• The Central Bank of Brazil plans to restrict transfers to self-custody wallets in foreign currencies.
• These regulations aim to improve consumer protection and reduce risks in the crypto sector.
• Coinbase warned that the new rules could limit market growth and drive users to unregulated platforms.
• Despite opposition, Brazil continues to enforce crypto regulation while the US delays the GENIUS Act.

Brazil is positioning itself ahead of the United States in crypto regulation through decisive action on stablecoin transfers. While the US continues to stall on the GENIUS Act, Brazil’s Central Bank has announced clear and strict crypto regulation policies. These actions mark Brazil’s strategic intent to lead in shaping the future of digital assets in the region.

The new crypto regulation framework includes tight rules on stablecoin transfers, particularly those involving foreign currencies. This measure aims to enhance consumer protection and reduce risks from unregulated cross-border crypto flows. The Central Bank is expected to enforce restrictions that could significantly impact transfers to self-custody wallets.

Officials believe these crypto regulation steps will limit illicit finance and promote transparency across digital asset transactions. The policy targets areas with insufficient oversight while prioritizing safety for domestic users. Brazil intends to establish a secure digital finance environment by consistently enforcing these updated rules.

As part of a new cryptocurrency regulatory framework, Brazil's central bank has proposed strict oversight of stablecoin transfers. The proposed rules include restrictions on sending stablecoins to wallets controlled by non-Brazilian entities, reflecting the country’s tightening…

— Wu Blockchain (@WuBlockchain) May 15, 2025

Coinbase Pushes Back on Crypto Regulation

As Brazil advances its crypto regulation framework, major crypto exchange Coinbase has resisted the proposed restrictions. In March, Coinbase warned that tight controls on stablecoins might push users toward less transparent markets. The company emphasized the need for balanced rules that support innovation without compromising compliance.

Coinbase argued that Brazil’s move could reduce digital asset access and hinder the market’s development. The company called for a broader regulatory strategy to align with global crypto trends and technological growth. According to Coinbase, overregulation could isolate Brazil from the wider crypto economy.

Despite industry feedback, Brazil remains committed to firm crypto regulation standards to safeguard financial systems. The Central Bank continues to focus on building user trust and reducing misuse in crypto transactions. Brazil’s push for stronger compliance frameworks sets a new tone for regulation in Latin America.

Belo Horizonte and XRP Highlight Brazil’s Crypto Momentum

Brazil’s progress in crypto regulation aligns with growing national interest in digital currencies and blockchain adoption. Recently, Belo Horizonte labeled itself the Capital of Bitcoin, reflecting local enthusiasm for cryptocurrency. This announcement complements Brazil’s regulatory push and signals ongoing public sector support.

In another development, Brazil became the first country to approve an XRP Exchange-Traded Fund (ETF) for public trading. This milestone shows the government’s willingness to support regulated crypto products while maintaining oversight and highlights the country’s efforts to balance accessibility and legal structure in crypto offerings.

Amid delays in the US GENIUS Act, Brazil’s proactive crypto regulation builds market confidence and outlines clear operational boundaries. The Central Bank’s focus on stablecoin oversight strengthens Brazil’s position in global crypto governance. These regulatory advancements confirm Brazil’s ambition to lead in responsible crypto innovation.

The post Crypto Regulation Twist: Brazil Acts Fast While US Waits appeared first on CoinCentral.

• Democrats have requested suspicious activity reports from the Treasury related to Trump-backed crypto projects including World Liberty Financial and TRUMP token
• Democratic lawmakers are concerned these crypto ventures could be vehicles for foreign influence peddling
• Senators Warren and Van Hollen specifically urged Trump to divest from his stablecoin before his Middle East trip
• Democrats raised concerns about Trump family members potentially profiting from $2 billion worth of stablecoins in a transaction involving an Abu Dhabi investment fund
• Top TRUMP token investors were reportedly invited to a private dinner with Trump, raising additional ethics concerns

Democratic lawmakers are stepping up their scrutiny of President Donald Trump’s cryptocurrency ventures, requesting suspicious activity reports and urging divestment amid concerns about potential foreign influence and ethics violations.

A group of Democratic representatives sent a letter to Treasury Secretary Scott Bessent on May 14 seeking suspicious activity reports on several Trump-backed crypto projects.

The request covers reports filed since 2023 related to World Liberty Financial (WLF) and the Official Trump token (TRUMP).

The letter, authored by Representatives Gerald Connolly, Joseph Morelle, and Jamie Raskin, asks for any reports mentioning a wide range of entities and individuals. These include WinRed, America PAC, Elon Musk, World Liberty Financial, WLF, TRUMP, MELANIA, and crypto entrepreneur Justin Sun.

Concerns Over Foreign Influence

The lawmakers expressed worry that World Liberty Financial could serve as a “vehicle for foreign influence peddling” because part of its token sale was directed at foreign investors. They noted these investors are “generally subject to less stringent regulation than US investors.”

The Democratic representatives also flagged concerns about Justin Sun’s investment in WLF. They pointed to the pause in the SEC’s lawsuit against Sun, which had alleged he broke securities laws, as a troubling development.

The TRUMP token has also drawn scrutiny because purchasers’ identities are not publicly disclosed. This lack of transparency could potentially allow bad actors to “curry favor with Trump” by buying the token, according to the lawmakers.

The probe seeks to “determine whether legislation is necessary to prevent violations of campaign finance, consumer protection, bribery, securities fraud, and other anti-corruption laws.”

Calls for Divestment Before Middle East Trip

In a separate but related development, Senators Elizabeth Warren and Chris Van Hollen urged President Trump to divest from his stablecoin holdings before his Middle East trip this week. The senators expressed concern about the potential for foreign governments to use the stablecoin to influence Trump’s decision-making.

Their concerns stem partly from a New York Times report that Trump family members could profit from $2 billion worth of their stablecoins used in a foreign transaction involving an Abu Dhabi investment fund.

“You can eliminate at least one venue for corruption… by divesting all of your interests and your family’s interests” in the stablecoin, the lawmakers wrote to Trump.

Adding to ethics concerns, the official website for Trump’s meme coin reportedly invited its top 220 investors to an “intimate private dinner” with the president. References to the White House were later removed from the website.

These Democrat-led efforts come as Trump eyes $1 trillion worth of deals and investments during his Middle East trip. The timing has raised questions about potential conflicts of interest between the president’s crypto ventures and his official duties.

The Treasury Department has been asked to provide the requested suspicious activity reports no later than May 30. Democrats have made it clear they view the potential for corruption in Trump’s crypto deals as high, using some of these concerns to derail a bipartisan crypto regulation bill last week.

This latest probe follows other recent Democrat-led actions targeting Trump’s crypto ventures. These include a letter to the Justice Department and Treasury expressing concerns about Trump’s ties to crypto exchange Binance, as well as two bills and a subcommittee inquiry focused on Trump’s ability to profit from his crypto initiatives.

The post Democrats Probe Trump Crypto Projects for Potential Foreign Influence and Ethics Violations appeared first on CoinCentral.

• Republican Senators Lummis and Moreno have asked Treasury to exempt unrealized crypto gains from the Corporate Alternative Minimum Tax (CAMT)
• The 2022 CAMT combined with FASB’s new fair-value accounting rules forces companies to pay taxes on digital assets they haven’t sold
• Lawmakers argue this puts US crypto businesses at a competitive disadvantage compared to foreign firms
• The request comes amid other pro-crypto actions under the Trump administration, including repeal of the DeFi broker rule
• Missouri is considering becoming the first state to eliminate all capital gains taxes, including on cryptocurrencies

Two Republican lawmakers have called on the US Treasury to fix a tax policy they say unfairly targets American crypto companies. Senators Cynthia Lummis (Wyoming) and Bernie Moreno (Ohio) sent a letter Tuesday to Treasury Secretary Scott Bessent requesting immediate action on how digital assets are taxed under the Corporate Alternative Minimum Tax (CAMT).

The senators warned that current rules could force companies to pay taxes on crypto they haven’t sold. This comes from a clash between tax law and new accounting standards that wasn’t intended by either Congress or accounting regulators.

“Our edge in digital finance is at risk if US companies are taxed more than foreign competitors,” Lummis wrote when sharing the letter on social media platform X. The lawmakers asked Treasury to act quickly to prevent harm to American crypto innovation.

The issue stems from the 2022 Inflation Reduction Act, which created the CAMT. This law applies a 15% minimum tax on large corporations with over $1 billion in average annual income, based on their financial statements rather than traditional tax rules.

Our edge in digital finance is at risk if U.S. companies are taxed more than foreign competitors. @berniemoreno & I urged the @USTreasury to lift an unintended tax burden on U.S. digital asset companies. To lead the world in digital assets, we need a level playing field.⬇️ pic.twitter.com/V7pwAUqRc4

— Senator Cynthia Lummis (@SenLummis) May 13, 2025

How Accounting Changes Created Tax Problems

The tax problem emerged when the Financial Accounting Standards Board (FASB) changed how companies must report digital assets on their books. In December 2023, FASB issued a new rule requiring companies to use fair-value accounting for cryptocurrencies.

Under fair-value accounting, also called mark-to-market, companies must update the value of their crypto holdings to reflect current market prices each quarter. This means any price increases get recorded as income on financial statements, even if the company hasn’t sold the assets to realize those gains.

When combined with the CAMT, this creates a unique tax problem. Companies could owe taxes on paper profits they haven’t actually received in cash.

“Neither Congress nor FASB planned this outcome,” the senators wrote in their letter. “It’s the unintended result of basing tax liability on decisions by a private organization… not principles of taxation.”

The lawmakers argued this situation is especially unfair because foreign companies follow different accounting standards. This means US firms face tax costs their overseas competitors don’t have to pay.

In their letter, Lummis and Moreno warned companies might be forced to sell crypto assets just to pay the taxes on their unrealized value. This could harm US competitiveness in digital finance and push innovation overseas.

The post Treasury Urged to Revise Crypto Tax Rules That Penalize Unrealized Gains appeared first on CoinCentral.

• SEC has extended review periods for Grayscale’s Solana and Litecoin ETF applications
• BlackRock’s request to modify its Bitcoin ETF for in-kind redemptions is under evaluation
• 21Shares’ Dogecoin ETF filing has entered the official review process
• Final decisions on crypto ETFs expected in Q3-Q4 of 2025
• New SEC Chair Paul Atkins is reassessing the agency’s approach to crypto products

The Securities and Exchange Commission has pushed back deadlines for several cryptocurrency ETF applications, continuing a pattern of regulatory caution that will likely delay final decisions until the later months of 2025. In a series of announcements on May 13, the agency extended review periods for multiple crypto investment vehicles, affecting major financial institutions and various digital assets.

The SEC postponed its decision on Grayscale’s proposed spot ETFs for both Solana and Litecoin. These applications now face new deadlines, with reviews extending to August 11 and October 10 respectively. The agency needs more time to determine if these listings satisfy market integrity requirements and investor protection standards.

🚨UPDATE: 🇺🇸SEC has delayed the @Grayscale Spot Solana ETF. pic.twitter.com/254Jl1mAK8

— SolanaFloor (@SolanaFloor) May 13, 2025

BlackRock’s application to modify its existing Bitcoin ETF also faces delays. The asset management giant seeks permission to enable in-kind redemptions, which would allow authorized participants to use actual Bitcoin rather than cash when creating or redeeming shares. The SEC approved the fund in January with cash-only redemptions but has not set a new deadline for this modification request.

In a separate development, the SEC has acknowledged 21Shares’ filing for a spot Dogecoin ETF. This formal acknowledgment starts the regulatory review clock for the DOGE-based investment product. The proposed ETF would track Dogecoin prices through a CF Benchmarks index and give investors exposure to the cryptocurrency through conventional brokerage accounts.

The Dogecoin ETF proposal has now entered its public comment phase after filing under Nasdaq Rule 5711(d), which governs commodity-based trust shares. This marks another step in the lengthy approval process that all crypto ETFs must navigate.

Regulatory Roadmap Takes Shape

The SEC follows a structured review process for all ETF applications. This multi-stage approach operates on intervals of 45, 90, 180, and 240 days, providing the agency with several opportunities to extend its evaluation before reaching a final decision deadline.

These latest delays align with the SEC’s established practice of using the full statutory review period for crypto products. None of the affected ETFs face their ultimate deadlines before the third quarter, leaving both applicants and potential investors waiting for regulatory clarity.

Bloomberg ETF analysts have characterized these delays as expected. James Seyffart noted that most of the products won’t reach their final deadlines until October at the earliest. His colleague Eric Balchunas pointed out that substantive approvals are unlikely until recently confirmed SEC Chair Paul Atkins finishes internal strategy sessions with agency staff.

“They’ve been taking outside meetings with people. Probably coming up with a strategy. After that, likely approvals,” Balchunas explained.

New Leadership, New Approach

The timing of these delays coincides with leadership changes at the SEC. Paul Atkins, the newly confirmed Chair, appears to be reassessing the agency’s stance on cryptocurrency investment products before making major decisions.

Under the new administration, the SEC has already dismissed several crypto-related enforcement cases and increased industry engagement through specialized roundtables. These actions suggest a potential shift in the regulatory landscape, though the agency continues to move cautiously on ETF approvals.

The current delays affect just a portion of the more than 70 crypto ETF proposals under consideration. On April 29, the SEC also postponed decisions on five other crypto-related ETFs, indicating a comprehensive review of the entire category.

For Grayscale’s Solana ETF specifically, the SEC has extended its review to assess whether the listing meets standards for investor protection and market integrity. If eventually approved, the trust would hold SOL directly and trade on NYSE Arca.

The various postponements leave the crypto industry in a familiar waiting pattern. With no final decisions expected before late 2025, both institutional players and retail investors must continue to monitor the regulatory process as it unfolds.

The SEC’s methodical approach reflects the complex regulatory questions surrounding digital asset investment products and suggests that any approvals will come only after thorough evaluation under the agency’s new leadership.

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