Bitcoin News Today: U.S. Crypto Regulation Tightens as Pennsylvania Bans Official Bitcoin Trading

Regulatory scrutiny of the cryptocurrency industry continues to intensify in the U.S., with Pennsylvania introducing a bill to prohibit public officials from trading Bitcoin and other cryptocurrencies while in office. The proposed legislation reflects growing concerns over conflicts of interest and insider trading in public service, and if passed, may serve as a national model for similar restrictions [1]. Concurrently, the Commodity Futures Trading Commission (CFTC) has announced the next phase of its “crypto sprint” initiative, led by Acting Chairman Caroline Pham. This initiative aims to implement regulatory recommendations from the Trump administration, potentially streamlining oversight across token classifications and compliance frameworks [2].

On the legal front, Department of Justice official Matt Galeotti provided clarity that new charges under section 1960(b)(1)(C) will not extend to truly decentralized, peer-to-peer crypto software. This clarification is a significant relief for developers of non-custodial DeFi platforms, offering some regulatory clarity amid ongoing legal uncertainty [3].

Meanwhile, stablecoins remain a focal point of global regulatory and market developments. Tether and Circle executives are set to meet with South Korea’s largest banks this week, a move that could signal support from Asian regulators and open new avenues for stablecoin adoption [4]. MetaMask has entered the stablecoin arena with the launch of its first native stablecoin, $mUSD, further integrating the platform into the DeFi ecosystem [5]. Additionally, WLFI has expanded its USD1 stablecoin supply by minting $205 million, pushing the total supply to $2.4 billion—a notable development in decentralized liquidity [6].

Gemini has also made regulatory strides by securing a MiCA license from Malta’s Financial Services Authority, positioning itself as one of the first major crypto firms to align with Europe’s new digital asset regulations [7]. This move reinforces Gemini’s commitment to global compliance and could influence the broader industry's approach to regulatory alignment.

In on-chain investigations, an analyst known as “Dethective” has linked a sniper wallet involved in the $YZY token launch to insiders from $LIBRA. Nearly $23 million is reported to have been extracted across both launches, raising concerns about the role of insider wallets in token sales and the need for more transparent audit mechanisms [8]. In response to rising TRX transaction costs, Justin Sun announced that the Tron community will adjust network fees to maintain the platform’s competitiveness amid market volatility [9]. Bank of America has forecasted that stablecoin demand for U.S. Treasuries could increase by $25B–$75B, reinforcing stablecoins’ growing role in global liquidity markets [10].

These developments underscore a rapidly evolving regulatory and operational landscape for crypto, with increased focus on transparency, compliance, and market integrity.

Source: [1] Cointelegraph, [2] Cointelegraph, [3] Cointelegraph, [4] Cointelegraph, [5] Cointelegraph, [6] Cointelegraph, [7] Cointelegraph, [8] Cointelegraph, [9] Cointelegraph, [10] Cointelegraph

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