The newly released draft of the CLARITY Act, a landmark legislative effort to regulate the cryptocurrency market, has ignited significant backlash from within the crypto community. Intended to provide a regulatory framework, the draft is now criticized for potentially failing to protect software developers and for introducing enhanced surveillance measures for users of non-custodial wallets. Expert analysis suggests the legislation may prioritize banking interests and create dangerous accountability loopholes, raising alarms about the future of privacy and innovation in decentralized finance.
about CLARITY Act Draft Sparks Crypto Privacy and Developer ConcernsBank Secrecy Act
0 in Finance and 0 in Crypto last weekSEC Debates Crypto Privacy vs. National Security in Landmark Roundtable
In a landmark roundtable organized by pro-crypto Commissioner Hester Pierce, the U.S. Securities and Exchange Commission (SEC) confronted a fundamental tension at the heart of digital finance: how to empower groundbreaking privacy protocols while addressing national security threats. Chairman Paul Atkins, in opening remarks, framed the debate as profoundly American, questioning whether individuals can participate in modern finance without surrendering their privacy. He issued a stark warning that, without principled regulation, cryptocurrency’s inherent transparency could be weaponized to create the most powerful financial surveillance architecture ever invented.
about SEC Debates Crypto Privacy vs. National Security in Landmark RoundtablePaxful Pleads Guilty to Money Laundering, Fined $7.5M
Paxful Holdings Inc., the defunct peer-to-peer Bitcoin exchange, has pleaded guilty to federal conspiracy charges and agreed to pay $7.5 million in criminal and civil penalties. The U.S. Department of Justice found the platform knowingly enabled extensive criminal activity, processing billions in trades while deliberately avoiding anti-money laundering controls. This landmark case underscores the severe consequences for cryptocurrency exchanges that flout financial compliance laws, revealing a business model built on servicing illicit markets.
about Paxful Pleads Guilty to Money Laundering, Fined $7.5MCZ Considers Libel Suit Against Warren Over Trump Pardon Claims
Former Binance CEO Changpeng “CZ” Zhao is preparing to file a libel lawsuit against Senator Elizabeth Warren over her explosive claims that he bribed former President Donald Trump for a presidential pardon. The potential legal action, confirmed by Zhao’s attorney Teresa Goody Guillén of Baker & Hostetler, represents a dramatic escalation in tensions between cryptocurrency executives and their most vocal political critics in Washington. This development comes amid ongoing congressional scrutiny of Trump’s pardon and highlights the increasingly contentious relationship between the crypto industry and regulatory authorities.
about CZ Considers Libel Suit Against Warren Over Trump Pardon ClaimsTrump Pardons Binance Founder CZ Zhao
Former President Donald Trump has granted a presidential pardon to Binance founder Changpeng ‘CZ’ Zhao, who pleaded guilty in November 2023 to failing to maintain an adequate Anti-Money Laundering program at the cryptocurrency exchange. The Wall Street Journal reported the pardon was signed Wednesday following extensive lobbying efforts by Binance and its former CEO, though official documentation has not yet appeared in federal records where presidential pardons are typically published.
about Trump Pardons Binance Founder CZ ZhaoSTREAMLINE Act Aims to Modernize US Anti-Money Laundering Rules
A bipartisan group of US senators led by Senate Banking Committee Chair Tim Scott has introduced the STREAMLINE Act, legislation that would modernize the country’s 50-year-old anti-money laundering framework by raising transaction reporting thresholds for the first time since the Bank Secrecy Act’s creation in 1970. This proposed overhaul aims to reduce regulatory burdens on both traditional financial institutions and cryptocurrency companies while maintaining effective financial crime detection capabilities.
about STREAMLINE Act Aims to Modernize US Anti-Money Laundering RulesCoinbase Urges Treasury to Modernize AML with AI, Zero-Knowledge Tech
Coinbase has launched a sweeping critique of U.S. anti-money laundering regulations, calling them “broken” and urging the Treasury Department to embrace artificial intelligence, APIs, and zero-knowledge proofs to combat financial crime in digital assets. The crypto exchange’s formal proposal argues that decades-old Bank Secrecy Act requirements have created an ineffective compliance system that burdens consumers, stifles innovation, and creates privacy risks through repeated KYC data collection. As Treasury compiles industry responses for congressional review, the debate highlights growing tension between traditional financial oversight and emerging blockchain technologies.
about Coinbase Urges Treasury to Modernize AML with AI, Zero-Knowledge TechCannabis Stocks Surge 20% on Trump Reform Hopes
Cannabis stocks are exploding in pre-market trading, with major players like Canopy Growth and Tilray Brands surging over 20% following former President Donald Trump’s strongest endorsement yet of marijuana reform. This dramatic rally reflects renewed investor optimism that a Trump administration could finally address the federal-state cannabis conflict that has crushed industry growth for years, potentially unlocking billions in value through rescheduling and banking access.
about Cannabis Stocks Surge 20% on Trump Reform HopesBitMEX Founder Hayes Invests in Stem Cell Firm Post-Pardon
Following his March pardon by former President Donald Trump, which cleared his conviction for Bank Secrecy Act violations, BitMEX co-founder Arthur Hayes has acquired a significant stake and board position in an unnamed stem cell company. Hayes, who built BitMEX into a major derivatives exchange before regulatory issues, has been receiving treatments at the company’s clinics in Mexico and Bangkok for more than a year. He expressed his commitment to health and longevity, noting the global trend of relaxed regulations around stem cell therapies. The company is currently undergoing a rebrand.
about BitMEX Founder Hayes Invests in Stem Cell Firm Post-PardonSEC’s Crypto Pivot: A Game-Changer for Ethereum & DeFi?
The SEC appears to be entering a new phase in its approach to digital assets, with Chair Paul Atkins’ ‘Project Crypto’ speech signaling a potential regulatory pivot favoring innovation. Bitwise CIO Matt Hougan describes the document as groundbreaking, suggesting it could benefit Layer 1 platforms (Ethereum, Solana), trading platforms (Coinbase, Robinhood), and DeFi protocols (Uniswap, Aave). However, markets have yet to price in this shift. Separately, SEC Commissioner Hester Peirce emphasized the need for privacy protections and DeFi inclusion, criticizing excessive surveillance in finance. Together, these developments hint at a possible generational opportunity for crypto, though skepticism remains given the SEC’s historically adversarial stance.
about SEC's Crypto Pivot: A Game-Changer for Ethereum & DeFi?SEC’s Peirce Advocates for Crypto Privacy & Financial Reform
SEC Commissioner Hester Peirce criticized the U.S. financial system as a ‘surveillance state,’ citing the Bank Secrecy Act’s role in deputizing banks as law enforcement. She advocated for crypto privacy tools like zero-knowledge proofs and DeFi to reduce reliance on intermediaries. Peirce also urged policy changes to protect self-custody and avoid prosecuting privacy software developers. Simultaneously, SEC Chair Paul Atkins announced ‘Project Crypto,’ an initiative to update outdated securities rules for tokenized assets. The White House is also preparing an executive order to prevent banks from discriminating against crypto firms, reversing Biden-era policies.
about SEC's Peirce Advocates for Crypto Privacy & Financial ReformCoinbase Pushes for BSA Modernization with Zero-Knowledge Proofs
Coinbase has called on US lawmakers to update the Bank Secrecy Act (BSA) by incorporating Zero-Knowledge Proofs (ZKPs) into financial compliance frameworks. Chief Legal Officer Paul Grewal highlighted that ZKPs could improve transparency while protecting user privacy, addressing vulnerabilities in the current KYC system. He explained that ZKPs allow verification of identity or sanctions status without exposing sensitive data, with law enforcement still able to subpoena details if needed. Separately, analysts view Coinbase’s recent stock decline as a strategic entry point, citing its USDC partnership, institutional growth, and plans for a ‘super app’ integrating DeFi and NFTs. Benchmark maintains a ‘Buy’ rating with a $421 target.
about Coinbase Pushes for BSA Modernization with Zero-Knowledge Proofs