Regulatory Architecture of the Crypto Industry Is Forming Faster Than the Market Can Reassess It

The week was marked by increased institutional pressure on the crypto market across several directions simultaneously. Strategy announced plans to raise $44.1 billion to augment its BTC position, increasing its portfolio to 762.1 thousand BTC ($53.6 billion). The SEC submitted a draft of digital asset classification rules to the White House, while the CFTC formed a task force on innovation. Meanwhile, the White House completed its review of a rule granting crypto assets access to $10.1 trillion in 401(k) retirement plans.

SEC: Personnel Losses and New Rules. Head of the enforcement department, Margaret Ryan, left the agency six months after her appointment. According to Reuters, the departure was due to disagreements with Chairman Paul Atkins over cases against Justin Sun (Tron) and Elon Musk. Ryan left following a $10 million settlement between the SEC and Sun, while Sun had invested $75 million in Trump's crypto project WLFI.

CFTC: Task Force on Innovation. The regulator created a division to develop a regulatory framework in the fields of cryptocurrencies, AI, and prediction markets. It will be headed by Michael Passalacqua, previously with Simpson Thacher & Bartlett. The group will interact with the CFTC advisory committee, which includes Coinbase CEO Brian Armstrong and Tyler Winklevoss (Gemini).

Taxation: Digital Asset PARITY Act. Congress members Miller and Horsford proposed not taxing stablecoin profits less than 1% or $0.01 and introduced an exemption for transactions under $200. Income from staking and lending is included in gross income.

California: Ban on Insider Trading in Prediction Markets. Governor Newsom prohibited state officials and affiliated individuals from using non-public information for trading in prediction markets.

United Kingdom. Prime Minister Keir Starmer is advancing a ban on political crypto donations retroactively from March 25. Parties are required to return donations within 30 days.

Post-Quantum Cryptography. Google announced a transition to PQC by 2029, highlighting the threat of quantum computers to existing cryptographic standards. The Ethereum Foundation also plans to implement quantum-resistant solutions at the protocol level by 2029. According to Exodus CEO's estimates, 6.5 million BTC ($443.8 billion) are stored in vulnerable addresses, including 1.1 million BTC ($75.1 billion) belonging to Satoshi Nakamoto.