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 concerns, 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. Some argue that both bills are interconnected and should advance together for a comprehensive framework. 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 facing increased scrutiny over its ties to political figures. Since taking office in January, President Donald Trump has prioritized transforming the U.S. into the global hub for cryptocurrency, integrating federal support and benefiting his own business empire. Crypto ventures now represent nearly 40% of the Trump Organization's $2.9 billion net worth. Prominent figures in the crypto sector have likewise prospered under his administration, especially as legal investigations initiated under former President Joe Biden have subsided.
In response to these developments, World Liberty Financial , a cryptocurrency platform backed by President Trump, plans to release an audit of its stablecoin within days and is preparing to launch a new app aimed at simplifying crypto use for everyday investors. Co-founder Zak Folkman announced these developments at the Permissionless conference in Brooklyn, New York. He also suggested that WLF’s governance token, WLFI, may soon become tradable. WLFI, introduced two months prior to the 2024 presidential election, has generated hundreds of millions of dollars for Trump’s family business.
These developments underscore the rapidly evolving landscape of cryptocurrency, marked by significant regulatory actions, political involvement, and industry initiatives aimed at addressing both opportunities and challenges within the sector.
