In a strategic move to bolster its U.S. derivatives operations, Kraken, a leading cryptocurrency exchange, has acquired the U.S.-licensed futures exchange Small Exchange from IG Group for $100 million. This acquisition enables Kraken to establish a fully U.S.-based derivatives platform, offering regulated futures and options trading to both retail and institutional investors. With the Small Exchange's designation as a Commodity Futures Trading Commission licensed venue, Kraken can now integrate clearing, risk management, and matching services, aligning with global exchange standards. This expansion into the digital derivatives space reflects Kraken's commitment to meeting the growing demand for institutional-grade tools like futures, options, and tokenized assets. The deal also signifies a favorable shift in U.S. crypto regulation under President Donald Trump's administration, encouraging crypto firms to strengthen their presence in the U.S. market. This acquisition follows Kraken's earlier purchase of retail trading platform NinjaTrader for $1.5 billion, underscoring the company's aggressive push into derivatives amid maturing crypto markets.
The Financial Stability Board , the G20's financial risk watchdog, has raised concerns about "significant gaps" in global regulations governing cryptocurrency markets. In its latest review, the FSB noted that despite some progress since its 2023 recommendations, the global regulatory approach remains fragmented and inadequate to address the cross-border nature of crypto assets. The FSB highlighted an urgent need for international cooperation as the crypto market doubled in size to $4 trillion over the past year, raising concerns over financial stability. A major area of concern is the regulation of stablecoins—cryptocurrencies typically pegged to fiat currencies like the US dollar. Despite their growing market value of nearly $290 billion, few countries have implemented comprehensive legal frameworks for stablecoins. The report assessed regulatory implementation across 29 jurisdictions, while noting gaps due to non-participation from countries like El Salvador, where Tether is based. The FSB called for enhanced global coordination to address risks exemplified by recent market shocks, including a $20 billion crash. It listed eight recommendations urging faster implementation of consistent crypto and stablecoin laws, emphasizing that even offshore activity can affect domestic financial systems.
U.S. Bancorp has announced the formation of a new unit dedicated to digital assets and money movement, aiming to accelerate the development and expansion of its digital financial services. Spearheaded by Jamie Walker, a long-time executive at the bank, the initiative seeks to capitalize on emerging technologies and generate revenue in areas like stablecoin issuance, cryptocurrency custody, asset tokenization, and the facilitation of digital fund transfers. According to Chief Digital Officer Dominic Venturo, the move responds to increasing client interest in understanding how digital assets can enhance financial processes such as money transfers, deposit storage, and tokenized asset utilization. The formation of this unit aligns with a broader industry trend fueled by rising cryptocurrency values and political support for the crypto sector, notably from U.S. President Donald Trump.
In a significant crackdown on cryptocurrency-related fraud, the U.S. government has seized over $14 billion in bitcoin and charged Chen Zhi, chairman of Cambodia's Prince Holding Group, with wire fraud and money laundering conspiracy. Chen is accused of leading a vast cyber fraud operation involving forced labor camps where workers were coerced into executing online "pig butchering" investment scams. The fraudulent scheme, which allegedly generated $30 million per day, used fake personas to lure victims into transferring cryptocurrency, which was then laundered through Chen's businesses and spent on luxury goods, including yachts, jets, and art. Investigators found that the scam targeted global investors and involved brutal conditions for trafficked workers, including captivity, beatings, and isolation. The U.S. and U.K. have sanctioned Chen and Prince Holding Group, labeling it a transnational criminal organization. Chen, who has ties to Cambodia's ruling elite and remains at large, faces up to 40 years in prison. Experts say while this crackdown may not dismantle cyber-scamming networks immediately, it will raise global scrutiny on elite-linked financial dealings, particularly those involving forced labor and human rights abuses in Southeast Asia.
The cryptocurrency industry has significantly increased its influence in Washington by spending over $130 million on congressional races in 2024, including more than $40 million to help unseat Sen. Sherrod Brown of Ohio, a long-time critic of digital assets. Celebrated as a victory at the 2025 Wyoming Blockchain Symposium, industry leaders acknowledged their pivotal role in electing pro-crypto candidate Bernie Moreno. With a friendlier Congress and strong backing from a Trump-led White House that supports making the U.S. a global crypto hub, legislation favorable to crypto—such as the GENIUS Act regulating stablecoins—is advancing quickly. Sen. Brown, now seeking a comeback in 2026, has tempered his stance, acknowledging crypto's role in the economy but emphasizing consumer protections. Massive war chests from crypto-oriented super PACs like Fairshake and new efforts by figures like the Winklevoss twins highlight the industry's intent to continue shaping elections. While most Americans remain skeptical of crypto investments, especially older demographics, young men show stronger support, forming the basis of a growing constituency. Industry leaders credit both public support and strategic spending for crypto's rise as a major political force.
