The Financial Action Task Force , a global authority on financial crime, has urged countries to intensify efforts to regulate crypto assets, citing persistent risks and regulatory gaps. In its latest report released on June 26, 2025, FATF highlighted that only 40 out of 138 jurisdictions evaluated were “largely compliant” with its crypto standards as of April 2025, showing limited progress since 2024. The watchdog emphasized the borderless nature of virtual assets, warning that regulatory shortcomings in one region could have worldwide implications.
Notably, illicit crypto wallet addresses reportedly received as much as $51 billion in 2024, with stablecoins—the type of cryptocurrency pegged to fiat currencies—being increasingly exploited by criminal actors including North Korea, terrorist groups, and drug traffickers. The FBI has attributed the largest-ever crypto theft—worth $1.5 billion from the ByBit exchange in February 2025—to North Korea, although the country denies involvement. FATF’s report aligns with growing international concerns, including from the EU’s securities regulator, about the broader financial stability risks posed by the rapidly expanding and loosely regulated cryptocurrency sector.
In response to these challenges, the crypto industry is navigating a complex political landscape involving over $100 million in lobbying efforts aimed at shaping U.S. regulatory policy. Central to the debate are three key legislative components: a Senate-passed stablecoin bill , a nascent market structure bill, and the SEC’s plan to act unilaterally if legislation stalls.
Industry leaders are divided on whether to push Congress for both bills simultaneously, risking neither passing, or to pursue the stablecoin bill alone first. Despite uncertainties, optimism prevails that Democrats will support crypto going forward.
In regulatory developments, California reached a $300,000 settlement with Bitcoin ATM operator Coinme over non-compliance issues. Meanwhile, the Federal Home Finance Administration directed Fannie Mae and Freddie Mac to explore including digital assets in mortgage applications—a change that could alter how wealth is assessed for home loans.
Additionally, other industry updates include Senate discussions on crypto market reforms, new crypto treasury strategies, and rising tensions involving crypto-funded espionage incidents. These developments signal a dynamic and increasingly mainstreaming environment for digital assets in both politics and finance.
The crypto industry is also witnessing significant technological advancements. Kraken, a major cryptocurrency exchange, has launched Krak, a new peer-to-peer payments app that allows users to send and receive both cryptocurrencies and fiat across over 100 countries. This strategic move marks Kraken’s expansion beyond traditional crypto trading into digital payments, positioning it against established players like PayPal, Venmo, and CashApp. Users of Krak will get dedicated spend accounts and support for transactions in over 300 assets, including local currencies and cryptocurrencies.
Crypto payments will operate via blockchain, while fiat transactions occur within Kraken’s internal system, bypassing external bank infrastructures. Co-CEO Arjun Sethi emphasized that Kraken’s pre-existing global network and licensing infrastructure facilitated this swift rollout. Looking ahead, Kraken aims to expand Krak’s services with physical and virtual payment cards and advance pay services such as loans, further enhancing its financial ecosystem.
These developments underscore the rapidly evolving landscape of the cryptocurrency industry, highlighting both the opportunities and challenges it presents. As the sector continues to mature, stakeholders are urged to collaborate on establishing robust regulatory frameworks that balance innovation with security and compliance.
