Regulation & Policy

Senator Chris Murphy plans to introduce legislation to restrict public betting on prediction markets related to government military actions to address insider trading risks. Recently, traders profited before the airstrike on Iran, raising concerns. The bill will prohibit market trading related to war or political speeches, aiming to maintain market integrity, prevent the misuse of sensitive information, while preserving exceptions for financial contracts.

Digital asset company Strike has received a Bitcoin license and money transfer license approved by the New York State Department of Financial Services, allowing it to offer related financial products in New York. This is a significant step in Strike's compliance development, enabling New York residents to conveniently buy and sell Bitcoin, make payments, and invest through its platform.

The Iranian rial has plummeted over 96% in two months, hitting a record low. If a nuclear agreement is reached with the United States, the rial may have room for a rebound, but purchasing options are difficult and risky. Investors should be aware of U.S. sanctions risks and potential impacts of Iran's currency reforms on exchange rates. Many people are exchanging rial through cryptocurrencies, but caution is advised.

The U.S. Securities and Exchange Commission (SEC) has reached a settlement with TRON founder Justin Sun. Rainberry Inc. will pay a $10 million fine and withdraw charges against Justin Sun and related entities. This settlement ends litigation since 2023 involving whether TRX and BTT are unregistered securities and market manipulation issues, reflecting changes in U.S. cryptocurrency regulatory policies. Justin Sun stated that he will continue to promote crypto innovation.

On March 6th, Ripple CEO Brad Garlinghouse supported Trump's tough stance on the "Clarity Act," calling on the U.S. Congress to push for the bill to clarify the regulatory framework for digital assets. Currently, due to disputes over stablecoin yield models, the bill is stalled in the Senate, affecting market sentiment.

As cryptocurrencies become more popular in Russia, asset division involving digital assets like Bitcoin in divorce proceedings has become more complicated. Legal experts point out that the anonymity and private key features make it difficult for courts to verify assets, calculate their value, and enforce division. Although cryptocurrencies are considered marital property, there are many challenges in actual enforcement, and relevant laws are still under discussion.

U.S. regulators confirm that tokenized securities will be treated the same as traditional securities under capital rules, emphasizing a technology-neutral approach that focuses on the security's nature and risk rather than the issuance method.

The United States is resuming negotiations around the Digital Asset Market Regulation Act, with Senator Tom Tillis pushing the bill forward to clarify the jurisdiction and compliance standards for digital asset regulation. Although there are disputes over the stablecoin yield mechanisms, all parties are working to find a balance. A review and vote are expected to take place in late March, and if approved, a comprehensive cryptocurrency regulatory framework will be established.

The U.S. Securities and Exchange Commission (SEC) has submitted interpretive guidance to the White House to clarify the legal scope of different types of crypto assets and establish a "Token Classification Framework," aiming to clearly define which assets are considered securities. This move, in the context of the stalled progress of the Market Structure Bill, accelerates the regulatory framework for digital assets and could profoundly influence global crypto market regulation trends.

The U.S. banking regulators clarified that tokenized securities will have the same capital requirements as traditional assets, promoting a technology-neutral approach. This guidance encourages traditional banks to adopt blockchain without imposing additional capital buffers, while still emphasizing necessary risk management.

Democratic senators accuse Iran of profiting from predictive markets before airstrikes, suspecting ties to Trump's circle, and have proposed legislation to strengthen regulation of such markets. Current laws are somewhat vague regarding bets on military actions, which could lead to moral hazard and incentivize profit-driven political behavior. The bill aims to explicitly prohibit the use of insider information for military market trading.

Chainalysis reports show that in 2025, addresses related to Iran and its Revolutionary Guard received over $3 billion in illegal crypto assets, aiding in funding terrorist organizations and illegal transactions. After the US-Israel coalition airstrikes, approximately $10.3 million quickly flowed out of Iran, indicating capital flight. The report points out that multiple countries such as Russia, North Korea, and Venezuela are also using cryptocurrencies to evade sanctions, demonstrating the challenges faced by traditional sanctions.

U.S. Senator Chris Murphy pointed out in a video that someone is betting on "the United States going to war with Iran," suspecting that some individuals have insider information. He and Representative Mike Levin are drafting legislation to strengthen regulation of prediction markets like Polymarket to prevent profiting from military actions.

Vancouver city government employees recommend terminating the "Bitcoin Friendly City" motion due to regulations prohibiting Bitcoin from being used as a municipal reserve asset. The motion was proposed by Mayor Ken Sim and aimed to explore the possibility of accepting cryptocurrency for taxes and converting financial reserves into Bitcoin, but it is restricted by provincial laws.

The Russian Ministry of Finance is considering introducing a stablecoin bill, planning to regulate stablecoins separately to unlock their potential. Stablecoins currently have no legal status in Russia, but the central bank has created a related category, and some stablecoins can be used for cross-border payments.

U.S. Democratic lawmakers plan to push for new regulations to strengthen oversight of prediction markets in response to insider trading risks stemming from bets on military actions against Iran. Senator Murphy warned that such bets could lead to moral hazard, encouraging insiders to profit from them. The proposed legislation aims to prevent the use of sensitive information for unfair trading and has also sparked further discussions on the regulation of prediction markets.

The Federal Reserve, FDIC, and OCC jointly issued guidelines, clearly stating that tokenized securities should follow the same capital requirements as traditional securities, emphasizing neutrality regarding technological forms to promote the development of blockchain assets, reduce regulatory concerns, and enhance the business flexibility of financial institutions.

Bitcoin failed to continue its rebound, with the price around $70,810. Negotiations on the U.S. Digital Asset Market Structure Act have stalled, with banks opposing the approval of stablecoin yield products. Russia plans to introduce an independent stablecoin bill to legalize the related industry. Market conditions are affected by geopolitical tensions, with rising oil prices raising concerns and further impacting inflation and trade.

BlockBeats News, March 6 — Cynthia Lummis, the proposer of the Bitcoin Strategic Reserve Act and Chair of the Senate Banking Digital Assets Subcommittee, stated that she had a meeting with CFTC Chair Michael Selig. The two discussed the digital asset market structure, and the discussion was very pleasant. The CFTC Chair is well aware of the urgency of the moment and looks forward to continuing cooperation in the process of integrating digital assets into the 21st-century financial system.

The IRS will introduce new regulations requiring cryptocurrency exchanges to submit 1099-DA tax forms electronically and eliminate the paper option. If customers refuse the electronic version, exchanges may terminate the relationship. The new regulation aims to improve tax compliance efficiency. The 1099-DA form records users' trading profits, while the cost basis remains the responsibility of the individual. This move has raised industry concerns and could impact the use of digital assets.