For questions on the note below, please contact Ruth Lunsford at (202) 547-3035.
International Bodies
Singapore Pushes for Commercialization of Tokenization: On November 4, the Monetary Authority of Singapore (MAS) announced plans to support the commercialization of asset tokenization in financial services. The measures include forming commercial networks to deepen liquidity, developing market infrastructures, fostering industry frameworks for tokenized asset implementation, and enabling access to common settlement facilities. MAS also highlighted strong interest in tokenization from financial institutions, particularly in fixed income, FX, and asset management, and its Project Guardian initiative published two key frameworks for tokenized debt capital markets and investment funds, aimed at catalyzing industry adoption. More here.
Poland Presidential Candidate Wants to Allow Nation to Hold Bitcoin With Strategic Reserve: On November 17, Poland’s libertarian presidential candidate, Sławomir Mentzen, announced his plans on X to create a Strategic Bitcoin Reserve if he wins the 2025 election. Mentzen’s proposal, inspired by the Satoshi Action Fund’s model, aims to position Poland as a global crypto leader and hub with favorable regulations, low taxes, and support from financial institutions. More here.
Shanghai Judge Says Cryptocurrency is a Commodity, Legal to Own: In an article published on November 20 through a Shanghai court’s WeChat account, Judge Sun Jie explained that virtual currencies are considered “virtual commodities” with property attributes, but not legal tender, emphasizing that commercial entities cannot issue tokens or engage in crypto transactions. China has banned crypto exchanges since 2017, although individuals can still hold digital assets. More here.
Australia Begins Consultation on OECD Crypto Reporting Framework: On November 21, Australia’s Treasury Department released a consultation paper on adopting the Organization for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF) to improve tax transparency and help prevent global tax evasion. The framework, which requires crypto exchanges and wallet providers to report certain transactions to tax authorities, is set to be integrated into Australian tax law by 2026. Australia joins other several countries, such as Switzerland, in implementing CARF, with reporting requirements expected to begin in 2026. More here.
United States
US Treasury Says Tokenization, Stablecoins Will Reshape Financial Landscape But Urges Caution: The Treasury Department’s report published the last week of October highlights the transformative potential of tokenization and stablecoins in the Treasury market, noting both their benefits and associated risks. The report cites tokenization can enhance market efficiency through real-time settlements, democratize access and broaden the investor base, especially among retail and international participants. The report also warns that stablecoins, increasingly backed by Treasuries, could pose significant risks if not properly regulated. The report’s concerns include the potential for “de-pegging,” where stablecoins lose their USD value during market fluctuations, leading to rapid liquidation of Treasuries and market disruption. The Treasury’s report recommends regulating stablecoins similarly to banks or money market funds to ensure they maintain adequate collateral and stability. More here.
New York Federal Reserve Analyzes Potential Financial Stability Effects of Digital Assets: On November 1, the New York Federal Reserve published a journal article titled “The Financial Stability Implications of Digital Assets,” which examines the risks associated with digital assets through the lens of the Federal Reserve’s framework for monitoring financial stability. The article highlights vulnerabilities such as valuation pressures, funding risks, leverage, and a highly interconnected crypto ecosystem, but notes that these factors have had a limited impact on systemic risk due to the relatively small size of the digital asset market and its limited connections to the traditional financial system. More here.
SEC Commissioner Uyeda Backs Trump’s Plan to End Crypto Crackdown: On November 7, Republican SEC Commissioner Mark Uyeda stated, “the Commission’s war on crypto must end,” advocating for a shift in the SEC’s stance on crypto enforcement under President-elect Donald Trump and suggesting a pause on new actions against firms failing to register until clearer rules are established. Uyeda, who may become acting SEC chair in January, aligns with Trump’s promise to end the Biden Administration’s aggressive crypto regulations, which have led to over 100 enforcement actions, including high-profile cases against companies like Coinbase and Ripple. Critics of the Commission’s current regulation by enforcement, including Uyeda and fellow Commissioner Hester Peirce, have pushed for a more transparent and industry-friendly regulatory approach. More here.
Senator Elizabeth Warren Rises into Role Where Crypto Sector Won’t Shake Her: On November 13, Senator Elizabeth Warren, a prominent critic of the cryptocurrency industry, has confirmed she will be the senior Democrat on the Senate Banking Committee, which will handle crypto legislation in the coming months. While Republicans control the committee’s agenda, Warren will use her platform to advocate for stricter crypto regulations. If Democrats regain Senate control in 2026, Warren could become the committee’s chairwoman and influence future crypto policy. Warren, who recently won a third term, has long argued that the crypto industry is plagued by criminality and has pushed for tighter regulations. More here.
Bitcoin ETF Options Pass ‘Second Hurdle’ with CFTC Clearance: On November 16, the CFTC cleared the path for spot Bitcoin exchange-traded fund (ETF) options following the SEC’s recent approval of Bitcoin ETF options and signaling that the products could be listed soon. The CFTC’s statement clarified that it has no further role in the clearing process, as the Options Clearing Corporation (OCC) will handle the options. Analysts, including ETF expert Eric Balchunas, suggest that the listing could happen imminently, with many speculating a potential launch in early 2024. More here.
Ripple Drops Another $25M Into Crypto PAC to Sway 2026 Congressional Races: Ripple Labs has contributed an additional $25 million to the Fairshake political action committee (PAC), bringing its total fundraising to $103 million for the 2026 election cycle. Along with Coinbase (COIN) and Andreessen Horowitz (a16z), Ripple has helped the PAC secure $73 million in new commitments, plus $30 million carried over from the 2024 cycle. Fairshake has already backed 53 members of the incoming Congress. Ripple CEO Brad Garlinghouse posted Tuesday on X that “Fairshake is the most successful multi-candidate, bipartisan super PAC in American history.” More here.