by Cointelegraph by Brayden Lindrea | 28 Mar 2025 | Crypto Law |
The European Union’s insurance authority has proposed a blanket rule that would mandate insurance firms to maintain capital equal to the value of their crypto holdings as part of a measure to mitigate risks for policyholders.The new proposal — made by the European Insurance and Occupational Pensions Authority in a Technical Advice report to the European Commission on March 27 — would set a far stricter standard than other asset classes, such as stocks and real estate, which don’t even need to be half-backed.“EIOPA considers a 100% haircut in the standard formula prudent and appropriate for these assets in view of their inherent risks and high volatility,” it said in a separate statement.Such a measure would fill a regulatory gap between the Capital Requirements Regulation and Markets in Crypto-Assets Regulation (MiCA), EIOPA said, noting that the European Union’s regulatory framework for insurers currently lacks specific provisions on crypto assets.Circle argued in January that a blanket 100% stress factor on crypto assets didn’t account for lower-risk stablecoins. Source: Circle EIOPA outlined four options for the European Commission to consider — one: make no changes; two: mandate an 80% “stress level” to crypto assets; and three: mandate a 100% stress level to crypto asset. The stress level percentages determine how much capital firms need to hold to stay solvent.The fourth option called on the European Commission to consider the risks of tokenized assets more broadly.EIOPA said option three would be the most appropriate option.“An 80% stress to the value of crypto-asset exposures does not appear sufficiently prudent,” whereas “a 100% stress is more appropriate and aligns with one of the approaches to the transitional treatment of crypto-assets under CRR,” EIOPA said.The 100% stress refers to the assumption that the crypto asset prices could fall by 100% and that diversification — spreading the risk across different assets — wouldn’t not reduce this stress. EIOPA pointed out that Bitcoin (BTC) and Ether (ETH) have fallen 82% and 91%, respectively, in the past.A 100% capital charge for crypto assets would reflect a far stricter approach compared to stocks, which range between 39% and 49%, and real estate, which incurs a 25% capital charge, according to solvency capital requirements laid out in the Commission Delegated Regulation 2015/35.EIOPA said a 100% capital charge for crypto asset-related (re)insurance undertakings shouldn’t be “overly burdensome” and that there would be no material costs for policyholders.“The capital requirements would fully capture the risk of crypto-asset with a positive impact on policyholder protection in case there are material exposures in the future.”Related: Tabit offers USD insurance policies backed by Bitcoin regulatory capitalEIOPA acknowledged that the share of crypto-asset (re)insurance undertakings accounts for just 655 million euros or 0.0068% of all undertakings in Europe — even referring to it as “immaterial.”“At the same time crypto assets are high risk investments which may result in total loss of value,” EIOPA said, explaining why it recommends option three.Luxembourg and Sweden could be hit hardest by the proposed ruleInsurers in Luxembourg and Sweden are likely to be the most affected, according to a Q4 2023 report cited by EIOPA, which found that these two countries accounted for 69% and 21% of all crypto asset-related exposures among (re)insurance undertakings.Ireland, Denmark and Liechtenstein also accounted for 3.4%, 1.4% and 1.2% of the undertakings. Most of these undertakings are structured within funds, such as exchange-traded funds, and held on behalf of unit-linked policyholders, EIOPA noted.Split of crypto-asset exposure proxy per European country in Q4 2023. Source: EIOPAEIOPA, however, acknowledged that a broader adoption of crypto assets in the future may require a more “differentiated approach.”Magazine: Crypto fans are obsessed with longevity and biohacking: Here’s why
by Cointelegraph by Brayden Lindrea | 28 Mar 2025 | Crypto Law |
The US Securities and Exchange Commission has officially closed its investigation into Crypto.com, with no action taken against the crypto exchange, according to the firm’s CEO, Kris Marszalek.It comes seven months after the SEC issued a Wells notice to the crypto platform in August, signaling its intention to take legal action against the firm.”They used every tool available to attempt to stifle us, restricting access to banking, auditors, investors, and beyond. It was a calculated attempt to put an end to the industry,” Marszalek said in a March 27 X post.The SEC’s investigation into https://t.co/pFc4Pz9nFR has been closed with no action being taken against https://t.co/pFc4Pz9nFR.— Kris | Crypto.com (@kris) March 27, 2025”The fact that we not only persevered but became stronger is a testament to our vision and the community supporting it. Onwards!”Crypto.com filed a lawsuit against the SEC in October, accusing the Gary Gensler-led commission of overstepping its authority and taking a “misguided” approach to crypto regulation.This is a developing story, and further information will be added as it becomes available.
by Cointelegraph by Christopher Tepedino | 28 Mar 2025 | Crypto Law |
The US Justice Department (DOJ) seized more than $200,000 in cryptocurrency intended to benefit the militant group Hamas it said in a statement on March 27. The cryptocurrency with a total value of $201,400 was traced to fundraising addresses allegedly controlled by Hamas and used to launder more than $1.5 million in digital assets since October 2024. The laundering occurred through a series of “virtual currency exchanges and transactions by leveraging suspected financiers and over-the-counter brokers,” the DOJ said. The funds are currently held in a combination of at least 17 wallets.Affidavit to seize the Hamas-linked cryptocurrency. Source: US DOJIn January 2024, the US Treasury’s Office of Foreign Assets Control, along with corresponding organizations in the United Kingdom and Australia, announced sanctions against networks and facilitators of crypto transactions linked to Hamas. Those sanctions were built on US Treasury sanctions from October 2023.In January 2024, three families of victims of the Hamas attack against Israel sued Binance and its former CEO Changpeng Zhao, alleging that the exchange had provided “substantial assistance” to terrorists. In oral arguments, a lawyer representing Binance claimed the exchange had “no special relationship [with] Hamas .”Binance has faced scrutiny from the US government over alleged shortcomings in its Anti-Money Laundering controls. The exchange settled with the DOJ for $4.3 billion in November 2023.More regulation needed?According to a December 2024 report by the Congressional Research Service, Hamas has allegedly sought cryptocurrency donations since at least 2019, although the “scale and effectiveness” of these efforts have been unclear.Terrorist organizations using crypto for fundraising have increasingly drawn the attention of the US, with some officials questioning whether the industry needed more supervision or regulation to stop such behavior.According to a 2023 Chainalysis report, terrorism financing accounts for a very small amount of crypto usage, with illegal groups sticking to using traditional, fiat-based methods to fund operations.Magazine: Terrorism and the Israel-Gaza war have been weaponized to destroy crypto
by Cointelegraph by Vince Quill | 27 Mar 2025 | Crypto Law |
US Senator John Kennedy grilled prospective Securities and Exchange Commission (SEC) chairman Paul Atkins about a potential pardon for Sam “SBF” Bankman-Fried during the Senate Banking Committee’s March 27 nomination hearing.The Louisiana Republican directed a series of questions about the former FTX CEO toward Atkins and probed the prospective SEC chairman about donations Bankman-Fried’s family made to Stanford University.Senator John Kennedy questions prospective SEC chairman Paul Atkins. Source: Senate Banking CommitteeKennedy then urged the SEC to take action to prevent any potential pardons on behalf of SBF. Kennedy added:”There should not be two standards of law and punishment for people in America. And every time you come to this committee, I am going to pounce on you like a ninja to find out what the SEC has done because I don’t think the SEC has done a damn thing.”“I read in the paper that the Bankman-Frieds were trying to get a pardon. They are crooks, and I expect the SEC to do something about it,” the Senator continued.Reports emerged in January that SBF’s parents, Joseph Bankman and Barbara Fried, were seeking a pardon for their son from recently-elected US President Donald Trump following his high-profile pardon of Silk Road founder Ross Ulbricht.Paul Atkins answers questions at his nomination hearing. Source: Senate Banking CommitteeRelated: Ex-FTX CEO moved to transit facility after interviewPresidential pardon “unlikely” for SBFSBF is unlikely to secure a pardon for several reasons that differentiate the case from that of the Silk Road founder, according to White Collar Support Group executive director William Livolsi.In the case of Ulbricht, the charges were victimless crimes tied to the operation of a contraband marketplace as opposed to causing billions in investor losses.Livolsi added that the sentence imposed on Ulbricht of two lifetimes behind bars plus an additional 40 years without the possibility of parole and the public campaign promise made by then-candidate Trump to pardon Ulbricht set the situation apart.Tucker Carlson interviews SBF from prison. Source: Tucker CarlsonDespite this, SBF has attempted to cozy up to Republicans in several interviews with independent media outlets, including a February interview with The New York Sun and an interview with Tucker Carlson on March 2025.The Carlson interview was not sanctioned by prison authorities, leading to SBF being thrown into solitary confinement following the interview and moved from a prison facility located in New York to Oklahoma.Magazine: Legal issues surround the FBI’s creation of fake crypto tokens
by Cointelegraph by Alex O’Donnell | 27 Mar 2025 | Crypto Law |
GameStop shed nearly $3 billion in market capitalization on March 27 as investors second-guessed the videogame retailer’s plans to stockpile Bitcoin (BTC), according to data from Google Finance. On March 26, GameStop tipped plans to use proceeds from a $1.3 billion convertible debt offering to buy Bitcoin — an increasingly popular strategy for public companies looking to boost share performance. GameStop’s announcement came a day after it proposed building a stockpile of cryptocurrencies, including Bitcoin and US dollar-pegged stablecoins. Investors initially celebrated the news, sending shares up 12% on March 26. Shareholders’ sentiment reversed on March 27, pushing GameStop’s stock, GME, down by nearly 24%, according to Google Finance. GameStop’s stock reversed gains on March 27. Source: Google FinanceRelated: GameStop buying Bitcoin would ‘bake the noodles’ of TradFi: Swan execChilly receptionAnalysts say the chilly reception reflects fears GameStop may be seeking to distract investors from deeper problems with its business model. “Investors are not necessarily optimistic on the underlying business,” Bret Kenwell, US investment analyst at eToro, told Reuters on March 27. “There are question marks with GameStop’s model. If bitcoin is going to be the pivot, where does that leave everything else?”The sell-off also highlights investors’ more bearish outlook on Bitcoin as macroeconomic instability, including ongoing trade wars, weighs on the cryptocurrency’s spot price. Bitcoin is down around 7% year-to-date, hovering around $87,000 as of March 27, according to Google Finance.Bitcoin’s “price briefly jumped to $89,000 but has now reversed its trend,” Agne Linge, decentralized finance (DeFi) protocol WeFi’s head of growth, told Cointelegraph. Linge added that trade wars triggered by US President Donald Trump’s tariffs remain a concern for traders.Public companies are among the largest Bitcoin holders. Source: BitcoinTreasuries.NETCorporate Bitcoin treasuriesGameStop is a relative latecomer among public companies creating Bitcoin treasuries.In 2024, rising Bitcoin prices sent shares of Strategy soaring more than 350%, according to data from FinanceCharts. Founded by Michael Saylor, Strategy has spent more than $30 billion buying BTC since pioneering corporate Bitcoin accumulation in 2020, according to data from BitcoinTreasuries.NET.NET. Strategy’s success prompted dozens of other companies to build Bitcoin treasuries of their own. Public companies collectively hold nearly $58 billion of Bitcoin as of March 27, the data shows. Magazine: SEC’s U-turn on crypto leaves key questions unanswered
by Cointelegraph by Christopher Tepedino | 27 Mar 2025 | Crypto Law |
US Senator Ted Cruz introduced a bill on March 26 to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC). The “Anti-CBDC Surveillance State Act,” would prohibit the Fed from offering certain products or services directly to American individuals, a key component of any CBDC.The Texas Republican’s bill can be considered a companion bill to Minnesota Republican Representative Tom Emmer’s anti-CBDC legislation, which was reintroduced on March 6. A companion bill is a piece of legislation that is similarly or identically worded to another bill, and introduced in the other chamber of Congress.Both bills state that the prohibition should not include any dollar-denominated currency that is open, permissionless, and private and “preserves the privacy protections of United States coins and physical currency.” Sen. Ted Cruz’s anti-CBDC bill. Source: Ted CruzSince 2020, the Federal Reserve has been exploring a digital version of the US dollar. According to the CBDC Tracker, at least four research projects are currently underway by various Federal Reserve entities.Cruz has been a vocal opponent of CBDCs since at least 2022, when he introduced legislation that would ban the Fed from introducing a direct-to-consumer CBDC. He followed it up with similar legislation in 2023, and in 2024 sought to block the attempt by then-President Joe Biden’s administration to create a CBDC.Emmer said at a congressional hearing that “CBDC technology is inherently un-American” and warned that allowing unelected bureaucrats to issue a CBDC “could upend the American way of life.”Related: North Carolina Senate overrides governor veto, passes bill banning CBDCCritics denounce CBDCsWhile CBDCs have some purported benefits, critics of the technology have long said that digital currency issued directly to citizens could pose privacy infringement and government overreach.However, some nations and regional governments are still exploring this technology. While European consumers show little interest in CBDCs, lawmakers in the region are pushing to create a digital Euro. Israel has released a preliminary design to create a digital shekel, and Iran will reportedly launch a CBDC in the near future.In the US, the creation of a CBDC has been met with more resistance. President Donald Trump has vowed to “never allow” a CBDC in the country, and Jerome Powell, the chair of the Federal Reserve, has said that the Fed will not issue a CBDC while he is in charge.Though CBDCs could modernize legacy financial systems and make them more efficient, they would also centralize the money supply.Magazine: Asia Express: India mulls new crypto ban to support CBDC, Lazarus Group strikes again
