On April 8, 2026, the US Department of the Treasury’s (“Treasury“) Financial Crimes Enforcement Network (“FinCEN“) and the Office of Foreign Assets Control (“OFAC“) issued a joint proposed rule (“Proposed Rule“) to implement provisions of the Guiding and Establishing National Innovation for US Stablecoins Act (“GENIUS Act“). The Proposed Rule implements the GENIUS Act’s anti-money laundering (“AML“) and sanctions compliance program requirements and encourages innovation in payment stablecoins while providing a regulatory regime to mitigate potential illicit…
The U.S. Department of the Treasury has taken a significant step in implementing the GENIUS Act’s stablecoin framework. On April 1, Treasury released a Notice of Proposed Rulemaking (the “Treasury NPRM”) to implement Section 4(c) of the Act, establishing broad‑based principles for determining whether a State‑level stablecoin regulatory regime is “substantially similar” to the federal regulatory framework established by the GENIUS Act. The Guiding and Establishing National Innovation for U.S. Stablecoins Act (the “GENIUS Act” or “Act”)…
One of the most anticipated features of the bi-partisan Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields Act (the PARITY Act) has been its attempt to mitigate the tax reporting burdens associated with small‑value digital asset transactions. When the bill was first released in discussion draft form in December 2025, it proposed a relatively familiar solution: a de minimis exception modeled on existing foreign‑currency rules. When a revised draft was released on March 26, 2026,…
Thailand continues to advance its digital payment landscape through a phased approach. The Bank of Thailand (BOT) began with wholesale Central Bank Digital Currency (CBDC) pilots under Project Inthanon and mBridge and Retail CBDC project. Building on this momentum, the BOT launched the Programmable Payment Sandbox (Stablecoin Sandbox) in 2024 — later expanded in December 2025 — to safely test Thai Baht backed stablecoins and programmable payment solutions. Looking ahead, tokenized deposits are emerging as a promising next step — offering…
On 4 November 2025, the Canadian federal government released its 2025 Budget called “Canada Strong” (“Budget 2025”) which signaled a major step toward regulating crypto assets in Canada. For the first time, and after much speculation that such a proposal was in the works, the federal government announced its intention to introduce legislation to govern the issuance of fiat-backed stablecoins. The proposed framework would aim to enhance consumer protection, strengthen national security safeguards and build…
For a time, Do Kwon was hailed as a visionary, a “cryptocurrency king” building a decentralized financial utopia. His company, Terraform Labs, and its associated cryptocurrencies, TerraUSD (UST) and LUNA, grew to a combined market capitalization of over $40 billion. The project promised investors stability and high returns, attracting a legion of devoted followers who called themselves “LUNAtics.” Yet, as the world learned, this crypto kingdom was built on a foundation of deception. The dramatic…
The digital asset landscape is evolving rapidly, and few sectors have experienced as much transformation as stablecoins. Recent developments in U.S. regulation signal a decisive shift toward a comprehensive legal framework. Within this context, the Initial Public Offering (IPO) of Circle Internet Group—the issuer of USDC, the second-largest stablecoin by market capitalization —is more than a corporate milestone. It marks a pivotal moment in the maturation of the industry and the growing integration of digital…
On August 25, 2023, the United States Treasury Department issued a notice of proposed rulemaking regarding tax reporting by brokers of transactions involving the sale or exchange of digital assets (“Proposed Regulations”). These long-awaited Proposed Regulations are in response to section 80603 of the Infrastructure Investment and Jobs Act of 2021, which expanded the scope of information reporting obligations for brokers under Code section 6045 to cover transfers of digital assets. Baker McKenzie has prepared an…
If 2020 was the year that crypto spurred investment action, then 2022 will be remembered for triggering the “equal but opposite” regulatory reaction. And for good reason. With several high-profile insolvencies and an across-the-board fall in cryptoasset prices, regulators have been reminded of the risks that can accompany financial innovation. The Financial Conduct Authority (FCA), alongside HM Treasury and various other government and enforcement actors, have been monitoring developments in crypto markets and considering the…
In the wake of last month’s collapse of the TerraUSD token, a broad array of regulators and government officials have attempted to introduce a legal framework around stablecoins. Recently, Japan passed comprehensive legislation around the issuance of stablecoins. In the United States, Senators Lummis (R-WY) and Gillibrand (D-NY) recently introduced a bill into the US Congress that would, among other things, set requirements for the amount of backing assets stablecoin issuers would be required to…