As the cryptocurrency industry evolves rapidly, the past week has been particularly eventful, with key developments in regulatory frameworks, investment surges, and high-profile legal outcomes.
The global crypto landscape is seeing substantial shifts from record-breaking Bitcoin and Ethereum ETF investments to new regulatory moves by the UK and significant appointments under the incoming Trump administration.
Meanwhile, Italy debates tax policy changes, and legal proceedings in the US spotlight the consequences of crypto crime. This roundup captures the most impactful stories every crypto compliance professional and investigator should know about this week.
Here’s a closer look at these critical stories.
Bitcoin and Ethereum ETFs set a record with a $2.2BN investment surge.
Crypto investment products hit a new all-time high of $138 billion in assets under management after investors pumped $2.2 billion into crypto funds last week. This surge was driven primarily by Bitcoin and Ethereum exchange-traded funds (ETFs), which are becoming increasingly popular in the US market. The funds saw most of the new investments in U.S.-listed spot ETFs, offering retail and institutional investors a regulated route to invest in cryptocurrencies.
The investment surge coincides with looser monetary policies and the Republican party’s strong performance in the US elections. In particular, the approval of Bitcoin SEC’s spot ETFs and President-elect Trump’s promises to support the crypto industry have contributed to a bullish environment for Bitcoin and Ethereum. Bitcoin’s price has surged to new highs above $93,000, partly due to investor interest in these ETFs.
For more details, see the report on Decrypt.
United Kingdom plans new crypto regulations to attract firms from the US
The UK is reportedly drafting new regulations to attract firms from the US following Trump’s election victory. The UK government plans to offer a more business-friendly regulatory environment, contrasting with the anticipated stricter enforcement approach under Trump.
Proposals include a simplified licensing framework, tax incentives, and more transparent rules around stablecoins and DeFi. The goal is to position the UK as a leading global hub for cryptocurrency innovation while maintaining strong anti-money laundering safeguards.
Read more on PYMNTS.
Trump names Howard Lutnick as Commerce Secretary
President-elect Donald Trump has nominated Howard Lutnick, CEO of Cantor Fitzgerald, as his Commerce Secretary, signaling potential shifts in cryptocurrency policy. Lutnick has previously expressed support for crypto as an asset class and is known for his favorable stance on digital innovation.
Analysts predict this appointment may lead to crypto-friendly policies, including tax advantages for crypto firms and relaxed regulatory requirements for blockchain initiatives.
This move aligns with the broader sentiment of the Trump administration’s pro-business approach to financial innovation.
Read more on Cointelegraph.
Italian lawmakers advocate for scaling back proposed crypto tax increases
In Italy, members of the ruling coalition are urging the government to reconsider plans to raise the cryptocurrency capital gains tax from 26% to 42%. Economy Minister Giancarlo Giorgetti’s proposal has faced opposition, leading to a counterproposal to limit the tax increase to 28%.
There are also concerns about expanding the digital tax’s scope, which could impact small and medium-sized enterprises. These discussions are part of broader budget amendments for the upcoming year.
Read more on Reuters.
Eighteen US States file lawsuit against SEC over crypto regulation authority
A coalition of 18 US states has filed a lawsuit against the Securities and Exchange Commission (SEC), seeking to stops its enforcement actions on cryptocurrency regulation. The states argue that regulatory authority over digital assets should reside with individual states rather than the federal agency.
The lawsuit contends that digital assets do not constitute investment contracts subject to federal securities laws, highlighting ongoing jurisdictional disputes between the SEC and the Commodity Futures Trading Commission.
Read more on The Verge.
Founder of Crypto Mixer Helix sentenced to three years for money laundering
Larry Dean Harmon, operator of the cryptocurrency mixer Helix, has been sentenced to three years for laundering Bitcoin.
Helix facilitated mixing Bitcoin to obscure transaction origins, primarily serving darknet drug markets. Harmon processed over 354,000 Bitcoins through Helix, earning fees from these transactions. His cooperation with authorities and expressed remorse contributed to a sentence below the prosecutors’ recommendation.
Read more on the US Department of Justice.
Heather Morgan, aka ‘Razzlekhan,’ Sentenced for Role in $10 Billion Bitcoin Heist
Heather Morgan, known as “Razzlekhan,” has been sentenced to 18 months in prison for assisting her husband, Ilya Lichtenstein, in laundering Bitcoin stolen from the Bitfinex exchange in 2016. Lichtenstein, who admitted to the theft of 120,000 Bitcoin (valued at $71 million at the time and nearly $11 billion now), received a five-year sentence.
The couple laundered approximately 21% of the stolen funds using fictitious identities and small transactions. Their cooperation with authorities contributed to their relatively lenient sentences.
Read more on The Verge.
