tl;dr
Pro-crypto regulation gets two boosts in the US.
Market Snap
Market Wrap
Trump’s latest flip-flop on Iran, swerving from claiming to have established back-channels for talks to having no interest in conducting talks, is frustrating at best. His threat to start bombing long-term US ally Oman must surely be delusional.
Occasional Series – Storm and flood warnings
Gosh, without those dire government warnings about storms and floods yesterday, it’s probable I might not have been prepared.
Curious Cryptos’ Commentary – Kazakhstanis know best
Curious Cryptos’ Commentary – SEC and “Project Crypto”
The SEC had announced a public meeting for last Friday to discuss rules around crypto start-up fundraising and then cancelled that meeting shortly afterwards for reasons that were not disclosed. In a surprise move, the SEC published those proposals last night:
https://www.sec.gov/newsroom/press-releases/2026-76-sec-proposes-new-regulation-crypto-assets
SEC Chairman Paul S. Atkins explains:
“As we continue the Commission’s efforts to provide clarity for crypto markets, and as Congress works to establish a lasting regulatory framework, Regulation Crypto Assets seeks to provide crypto asset entrepreneurs and market participants with clear pathways to raise capital under the federal securities laws.”
There are two proposed paths for new crypto offerings – a one-time offering of up to $5mm in a four-year period and another one of up to $75mm in each one-year period, the latter requiring greater disclosure.
By adhering to the requirements laid out, crypto start-ups will be given safe harbour from the destructive and damaging risk of regulation by enforcement practised under the previous SEC chair. Paul is convinced that this will be positive for the crypto revolution:
“Today, we are charting a new course with a package of exemptions that would facilitate capital formation and allow crypto asset innovation to flourish in the United States in the years ahead.”
He also had this warning to share if the lawmakers do not follow suit:
“Given the progress made in Congress to date on market structure legislation, let me be clear up front: Legislation remains indispensable to enacting 'future-proofed' rules of the road that are durable enough to protect the work we are undertaking today from being unwound by a future rogue regulator.”
That is a concern we all share.
Curious Cryptos’ Commentary – Financial Accounting Standards Board (FASB)
FASB relieved proposals yesterday that address some uncertainties and discrepancies in the classification of short-term debt instruments as cash or cash-like for accounting purposes. Within that broader topic, FASB also addresses the issue of stablecoins:
The restrictions on whether stablecoins can be reported as cash are necessarily stringent, according to my A.I. assisted reading of the proposed rules:
A holder has an on-demand redemption right directly against the issuer—not merely the ability to sell the token on an exchange or redeem through an intermediary.
The issuer maintains high-quality reserves, readily convertible into cash, on at least a one-to-one basis.
The instrument meets the existing ASC 230 test of ready conversion into known cash amounts and insignificant risk of changes in value.
There is no mention of the need to comply with the GENIUS Act, which is surprising to me. I suspect that condition will be included in future drafts.
What this proposal does highlight is that those countries and organisations that embrace the crypto revolution will benefit at the expense of those who don’t, for instance the Bank for International Settlements to take one example completely at random.