This week, the US federal regulators, the SEC and CFTC, jointly relaunched 2025’s “Project Crypto” to align digital asset oversight. Meanwhile, 12 of 27 EU states missed the January 1, 2026, DAC8 implementation cut-off date and risk enforcement action if they don’t comply within two months. Finally, the UK’s FCA reported that there were fewer crypto investors in 2025 than in 2024, but those who remained owned higher-value portfolios.
To learn more, read on.
US regulatory bodies partner in “Project Crypto” to synchronize the policing of digital assets
The Chair of the Securities and Exchange Commission (SEC), Paul S Atkins, and his Commodities Futures Trading Commission (CFTC) counterpart, Michael S. Selig, announced the reboot of July 2025’s “Project Crypto” in Washington, DC, on January 29, 2026. The partnership has now shaped Project Crypto into one rulebook, aligning all federal oversight of trading in digital asset markets.
The joint body will share a framework for on-chain trading, clearing, settlement, and custody across both regulators, aiming to eliminate regulatory fragmentation by creating a unified crypto asset classification system. The two agencies will also more clearly delineate securities from commodities and cut the burdensome, duplicative registration processes for firms under the oversight of both regulators.
At its core, the ‘harmonization agenda’ of the SEC and CFTC will align definitions, coordinate oversight, and ease data sharing between the agencies. SEC Chair Selig said that this approach was “one of the most ambitious programs between our two agencies [the SEC and CFTC] in a generation,” adding that it represented a chance to overcome “the turf war of years gone by.”
Why this matters: This unified Project Crypto could support compliance professionals who have had to struggle with overlapping jurisdictional requirements from the SEC and the CFTC. It will streamline reporting obligations, reduce regulatory uncertainty, and clarify the boundaries of law enforcement for the relevant agencies investigating digital-asset cases.
Read more on Yahoo.com and learn how US states implement their crypto regulatory regimes here.
Twelve EU states miss crypto asset information exchange deadline
Twelve of the EU’s 27 member states have missed the January 1, 2026, deadline for signing the Council Directive on Administrative Co-operation, DAC8, into law. The 12 countries are Belgium, Bulgaria, Czechia, Cyprus, Estonia, Greece, Luxembourg, Malta, the Netherlands, Poland, Portugal and Spain.
DAC8 requires crypto asset service providers to collect and report detailed client and transaction data to national tax authorities for automatic cross-border information exchange, and it expands the scope of financial intelligence about high-net-worth individuals.
Additionally, the DAC8 extends provisions on the automatic exchange of information on non-custodial dividends and similar revenues by strengthening reporting requirements for tax identification numbers to help tax authorities identify the tax liabilities of relevant taxpayers.
The twelve countries have been given two months to comply withDAC8 and to notify the Commission once they’ve done so. Failure to respond adequately could result in the enforcement action of being issued a ‘reasoned opinion.’
Why this matters: When fully implemented, DAC8 will close a vital gap in tax transparency that has, up till now, enabled tax evasion across EU borders. The compliance teams of crypto asset service providers will have to implement stricter customer due diligence and establish reporting systems comparable to those in traditional financial institutions.
Read more on Step.org.
UK’s FCA survey shows fewer crypto investors have larger holdings
The UK’s Financial Conduct Authority (FCA) recently published its ‘Crypto assets consumer research 2025 (Wave 6),’ a survey-based research document outlining behaviors and attitudes towards digital assets in the UK market, which found that adult crypto ownership dropped from 12% in 2024 to 8% in 2025, equating to 4.5 million people. However, the data suggests market consolidation rather than contraction or stagnation, as the remaining investors are committing substantially more capital, and higher-value portfolios are proliferating as retail activity is substituted by institutional adoption and flows of Bitcoin ETFs.
The research showed improved knowledge levels among active investors, with ownership highest among men in the 18-34 age bracket from higher-income backgrounds, and ethnic minorities. Notably, 63% of the surveyed current crypto users were ‘more willing’ to take risks when investing in digital assets than the merely ‘crypto aware’ group in the study (24%).
The survey concluded that Bitcoin remains the most recognized crypto asset among the latter group, with 79% of them being aware of it. Although awareness of newer altcoins is still limited, recognition of stablecoins has risen to 53%, indicating a broader discourse on digital assets and their regulation.
Meanwhile, 57% of current investors own BTC, making it the most held token, followed by ETH ownership with 43%. Alarge gap persists between these two and ownership of other crypto assets, with Solana (21%), Dogecoin (20%), and Cardano (17%) being the next most popular.
Why this matters: Ownership contraction towards more sophisticated, higher-value investors implies a maturing market. Compliance professionals will need to apply enhanced due diligence to fewer, larger transactions, while regulators will need to adapt their frameworks to account for potentially greater institutional-level holdings.
Read more on Digital Watch Observatory, and learn about the progress of crypto regulation in the UK here.
