Regulation & Policy

CFTC Chicago Enforcement Team, consisting of 20 people, has completely left. It was once the top enforcement force in the cryptocurrency market, and is currently expanding its regulation of the crypto and prediction markets. A former lawyer said this move was targeted layoffs because they have experience with FTX settlements. The fines collected by the agency's enforcement have dropped sharply from $17.1 billion in 2024 to $9.2 million in 2025.

Hong Kong Securities and Futures Commission Chief Executive Carrie Lam announced three new initiatives to establish a comprehensive virtual asset regulatory ecosystem. In terms of guaranteed financing, brokers will be allowed to provide financing to creditworthy clients, with collateral including securities and virtual assets. Regarding perpetual contracts, a high-level regulatory framework will be announced to permit licensed platforms to offer perpetual contract products. Concerning associated market makers, regulations are expected to be relaxed to allow licensed platforms to provide liquidity through subsidiary market-making units.

Hong Kong Financial Services and the Treasury Bureau Deputy Secretary Chen Hao-lian stated at Consensus 2026 that they welcome Layer 1 protocols establishing a presence in Hong Kong to strengthen the city's position as a Web3 hub. He mentioned that pandemic restrictions have been lifted, and hundreds of Web3 companies are now operating in Hong Kong. The Hong Kong government will continue to strengthen its engagement with blockchain protocols and is considering research into regulatory frameworks for DAOs.

The eight departments of the country issued the "Notice on Further Preventing and Managing Risks Related to Virtual Currencies and Other Assets," and the CSRC introduced relevant regulatory guidelines. The article analyzes China's changing regulatory attitude towards virtual currencies and real-world assets (RWA), pointing out that virtual currencies are still under strict crackdown, while RWA offers a compliant pathway, but the compliance threshold is high, and practical implementation faces multiple challenges.

Ripple Chief Legal Officer Stuart Alderoty said on X that the White House meeting on Tuesday was "productive," with a strong atmosphere of compromise, and both parties still maintain consensus on legislation for the crypto market. Reports indicate that both sides made concessions, with banks willing to discuss stablecoin reward exemptions for the first time. The White House urges all parties to reach an agreement by March 1. However, Polymarket data shows that the probability of the bill passing this year has dropped from 70% to 56%.

Logan Paul was exposed for fake betting on Polymarket during the 2026 Super Bowl, showing his account balance as zero. This behavior sparked regulatory legal and ethical controversies and raised questions about transparency in cryptocurrency market marketing. At the same time, the legal battle between Polymarket and the Massachusetts government also reflects the regulatory challenges faced by prediction markets. The industry criticizes the marketing tactics of such platforms as being unethical and potentially posing financial threats to young audiences.

Polymarket partners with Kaito AI to launch the "Attention Market," allowing users to bet on trend popularity and public opinion. Based on two main indicators—public sentiment share and emotional tone—the platform quantifies attention using social data. The project was launched in March and reached thousands of markets by the end of the year, with the initial focus on AI topics. Massachusetts and other states have banned prediction markets, leading Polymarket to sue the state, asserting federal regulation.

February 11 News, the White House led a new round of consultations with representatives from the cryptocurrency and banking industries regarding the stablecoin provisions in the Crypto Market Structure Act. Participants generally described the meeting as "productive," but no consensus has been reached on the core disagreements. Ripple Chief Legal Officer Stuart Alderoty posted on X platform stating that both sides are trying to find room for compromise, and both parties remain optimistic about the legislation on the crypto market structure. He emphasized that this is a critical window of opportunity to advance the implementation of the US crypto regulatory framework.

The Hong Kong Securities and Futures Commission has officially announced the "Accelerator" program tender, aimed at optimizing regulatory and market communication. Meanwhile, Ye Zhiheng added measures for financial funding and perpetual contracts to ensure two-way interaction and participation of professional investors, promoting global liquidity connectivity.

The White House held its second meeting on Tuesday, attempting to mediate the disagreement between the banking industry and the crypto industry over stablecoin yield issues. However, TradFi bank representatives brought a "principles document" insisting on a complete ban. The document calls for prohibiting any financial or non-financial incentives to stablecoin holders, emphasizing that stablecoin activities must never trigger deposit outflows.

The Japanese Financial Services Agency has released a draft of the cybersecurity enhancement guidelines, publicly soliciting opinions until March 11. The draft emphasizes the need to strengthen security management across the entire supply chain of encrypted exchanges to counter increasingly sophisticated cyberattacks, and proposes a three-pillar approach of "self-help, mutual aid, and public assistance."

The EU is considering a ban on all crypto transactions with Russia to prevent Moscow from circumventing sanctions imposed due to the Ukraine conflict. The proposal aims to target Russian crypto entities that support military operations and to restrict exports to Kyrgyzstan due to concerns over arms trade.

Hong Kong Securities and Futures Commission Chief Executive Julia Leung stated at Consensus 2026 that an ecosystem for virtual asset regulation will be established, along with three new initiatives, including allowing brokers to provide virtual asset financing for clients, establishing a regulatory framework for perpetual contracts, and relaxing related market maker regulations. Tokenized asset management is growing rapidly, and the SFC has authorized multiple tokenized funds and plans to work with the SAR government to advance legislation.

Foresight News reports that the Central Bank of Malaysia stated that testing will enable the central bank to assess the impact of (stablecoins and tokenized deposits) on monetary and financial stability, and to provide a basis for policy directions in these specific areas. Clearer guidelines are expected to be provided by the end of 2026 regarding the use of Ringgit stablecoins and tokenized deposits.

On February 11, U.S. cryptocurrency and banking industry executives held a meeting at the White House to discuss the stablecoin yield and related market structure legislation. Both parties described the talks as "productive," but no agreement was reached on key issues. Participants included Ripple, the Cryptocurrency Innovation Committee, the Blockchain Association, as well as major banks such as Goldman Sachs, Citigroup, JPMorgan Chase, and representatives from the American Bankers Association. During the meeting, banks took a hard stance on stablecoin yields. According to leaked documents, the banks proposed a set of "prohibition principles," advocating for a complete ban on any financial or non-financial benefits related to holding or using payment stablecoins, and strict enforcement of anti-avoidance measures to prevent any form of yield or interest promotion beyond the limits. This position goes beyond the latest draft of the Market Structure Bill, which only prohibits passive holding of stablecoin-generated yields but allows limited active reward activities. The banks emphasized that any yield exemptions should be strictly restricted.

Russia is restricting access to Telegram to enhance digital control, citing legal issues. This move favors state-backed app Max and threatens the crypto sector that relies on Telegram, potentially shifting users and reshaping the digital economy.

The European Union proposes a comprehensive ban on cryptocurrency transactions with Russia, covering all Russian service providers and digital rubles. Kyrgyzstan's imports from the EU have increased by 800%, and exports to Russia have surged by 1,200%. The proposal is part of the 20th round of sanctions, expected to be agreed upon before the four-week mark of the Russia-Ukraine war on February 24, requiring unanimous approval from 27 member countries.

February 11 News, Hong Kong continues to strengthen its position as an Asian hub for digital assets and Web3 innovation. Hong Kong SAR Chief Executive John Lee delivered a video speech at the CoinDesk Consensus Hong Kong Conference, stating that the SAR government will support the development of the local digital asset ecosystem in the long term and provide a predictable business environment for global crypto companies through a clear and robust regulatory framework. John Lee pointed out that over the past few years, Hong Kong has systematically established a regulatory system for digital assets, aiming to promote the expansion of the Web3 industry on a compliant, transparent, and sustainable basis. He emphasized that Hong Kong also connects Mainland China and international financial markets, possessing dual advantages under the "One Country, Two Systems" framework that are difficult for other cities to replicate. This gives it a unique competitive edge in virtual asset innovation, capital flow, and institutional stability.

The Russian State Duma has passed a law establishing procedures for the confiscation and freezing of cryptocurrencies in criminal cases, confirming their legal status as property and requiring detailed record-keeping. The bill must be approved by the Federation Council and signed by the President. Once enacted, it will allow confiscated cryptocurrencies to be transferred to the national wallet.

Bitcoin (BTC) remains in a downturn, temporarily trading around $69,160 on February 11. Federal Reserve Board member Waller warned that the cryptocurrency boom is fading as it remains closely linked to traditional finance (TradFi). The former SafeMoon CEO was sentenced to 8 years in prison for a cryptocurrency scam and ordered to forfeit approximately $7.5 million and two residential properties.