Crypto regulation in the world: weekly digest #133

USA

A bipartisan bill to establish a regulatory framework for payment stablecoins, called the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, has been introduced in the U.S. Senate.

The bill aims to protect consumers by requiring stablecoin issuers to maintain one-to-one reserves and comply with U.S. anti-money-laundering and sanctions rules. It also prohibits algorithmic stablecoins. The Act establishes clear procedures for institutions seeking licenses to issue stablecoins. It applies the Federal Reserve’s regulatory framework to depository institutions and the Office of the Comptroller of the Currency’s framework for nonbank issuers of more than $10 billion of stablecoins.

The bill allows for state regulation of issuers under $10 billion in market capitalization and provides a waiver process for issuers exceeding the threshold to remain state-regulated. It establishes supervisory, examination, and enforcement regimes with clear limitations and maintains the dual banking system between federal and state regulators.

The bill seeks to foster innovation, promote U.S. dollar dominance, and expand financial inclusion. Dollar-denominated payment stablecoins can improve transaction efficiency and facilitate seamless cross-border payments. The legislation aims to create healthy competition among American companies and prevent the use of unregulated foreign stablecoins.

The bill was introduced by Senators Cynthia Lummis and Kirsten Gillibrand, along with Senators Tim Scott and Bill Hagerty. Lummis and Gillibrand also introduced the Responsible Financial Innovation Act (RFIA).

Brazil

Two bills regarding cryptocurrency investment have been proposed in Brazil recently. A first one, introduced by Brazilian lawmaker Adriana Ventura proposes to authorize Brazilian funds to invest in cryptocurrencies, including Bitcoin. The proposal aims to address the growing demand and interest in cryptocurrencies among Brazilian investment funds, foster financial innovation, encourage the development of more sophisticated products, and provide a regulated and secure environment for funds to diversify their investment portfolios. The bill specifically outlines that investment funds would only be allowed to acquire cryptocurrencies through licensed firms operating within Brazil.

Another one – the Bill for National Bitcoin Reserve has been proposed by the Brazilian congressman Eros Biondini to establish a bitcoin sovereign strategic reserve. The plan calls for the country’s central bank to gradually acquire bitcoin until the cryptocurrency makes up 5% of Brazil’s national reserves.

Brazil has established a legal framework for virtual assets with Law No. 14,478/22, which went into effect in June 2023. This framework designates the Brazilian Central Bank (BCB) as the primary authority for regulating and supervising VASPs.

Hong Kong

Hong Kong has started accepting Bitcoin and Ethereum as proof of assets for investment immigration applications. This decision marks a move towards integrating digital assets into Hong Kong's financial system.

There have been instances where applicants have been approved for investment immigration by presenting their crypto holdings. One applicant used Ethereum worth HK$30 million (approximately $3.8 million), while another used Bitcoin. Applicants need to demonstrate they possess assets of at least HK$30 million (about $3.85 million). They must also invest that amount in Hong Kong within six months.

Crypto assets must be stored in cold wallets or held on reputable exchanges like HashKey. Successful applicants initially receive a two-year visa, which can be renewed three times before applying for permanent residency. Authorities will monitor the assets during this period.

News from other countries:

• Alexey Pertsev, the developer of Tornado Cash who was convicted of money laundering in 2024, was released from prison on February 7, 2025, to prepare for his appeal. A Dutch court suspended his detention but requires him to be electronically monitored.

• The Russian Federal Tax Service (FNS) has launched a digital platform that allows miners to report their cryptocurrency earnings directly through their online FNS accounts. This platform enables users to submit an electronic signature to trigger the tax-compliance function.

• On February 6, 2025, the CBOE exchange submitted applications to the SEC for spot exchange-traded funds (ETFs) based on XRP (Ripple), on behalf of Canary Capital, WisdomTree, 21Shares, and Bitwise. The filings, known as form 19b-4, notify the SEC of a proposed rule change, which initiates the regulatory review process

We continue to highlight the news of the world of crypto regulation worldwide. Please stay with us!