Last week, TRM’s policy team — Ari Redbord, Angela Ang, and Isabella Chase — gathered for the Q2 2025 edition of our Quarterly Crypto Policy Roundtable, dissecting another quarter of fast-moving developments in crypto regulation, enforcement, and financial crime.
Read on for highlights from their discussion — spanning US stablecoin legislation on the brink of passage, new rules in Hong Kong, Europe’s continued MiCA rollout, and the growing threat of wrench attacks — or watch the full recording below.
United States: Stablecoins and market structure in focus
Momentum in Washington is finally building for significant crypto legislation. Ari shared that two major bills — the Stable Bill in the House and the GENIUS Act in the Senate — are advancing through Congress. Both aim to establish clearer rules for stablecoin issuance, reserve requirements, and AML obligations, raising hopes that a unified “Stable GENIUS Act” might soon emerge.
At the same time, the CLARITY Act continues to work its way through the legislative process, aiming to define market structure and clarify jurisdictional boundaries between the SEC, overseeing crypto securities, and the CFTC, overseeing crypto commodities. Ari described the 14-hour markup session on the CLARITY Act as emblematic of both Congress’s growing seriousness and the complexity of the issues at stake.
Despite these advances, Ari cautioned that the US still lags behind other jurisdictions in providing regulatory certainty for crypto businesses.
APAC: Regulatory implementation continues apace
Across Asia-Pacific, regulators continue to strike a delicate balance between fostering innovation and maintaining oversight.
In Hong Kong, lawmakers have finalized a new Stablecoin Ordinance set to take effect on August 1. The law creates a framework for stablecoin issuance and retail distribution, while Hong Kong’s Securities and Futures Commission has also authorized regulated trading platforms to offer staking services — an important first step under the city’s ASPIRe Roadmap.
Meanwhile, Singapore is introducing additional crypto licensing obligations under the Financial Services and Markets Act (FSMA). From June 30, Singapore-incorporated digital token service providers offering services to overseas clients must be licensed by the Monetary Authority of Singapore. Angela explained that this does not represent a fundamental shift in Singapore’s stance on crypto. Instead, the intent of the FSMA is to prevent entities from using Singapore as a base to avoid regulation while targeting foreign markets.
Elsewhere in the region, crypto policy discussions continue in Australia, Taiwan, and India, with many regulators watching developments in the US for cues on stablecoins and market structure.
Europe and UK: Building the regulatory architecture
In Europe and the UK, policymakers remain focused on finalizing comprehensive crypto frameworks.
In the UK, regulators are racing toward a planned 2026 launch of the country’s crypto regime. Isabella Chase highlighted recent work on a draft Statutory Instrument to amend the Financial Services and Markets Act (FSMA) to formally integrate crypto assets. The FCA has been active, releasing discussion papers on crypto trading platforms, staking, lending, and prudential requirements, and proposing to lift the ban on retail trading of crypto ETNs, potentially opening up new products to individual investors.
Meanwhile, MiCA implementation continues to accelerate across the EU. The number of fully authorized CASPs nearly doubled this quarter, rising from 17 to 31. However, uncertainties remain. The European Banking Authority recently issued a no-action letter deferring PSD2 licensing requirements for e-money token issuers until March 2026, while the European Data Protection Board has stirred debate with draft guidance suggesting that blockchain data might need to be deleted if they contain personal data that is subsequently breached.
Isabella underscored that businesses are grappling with how to align global operations with overlapping national requirements, particularly around entity structures and cross-border services.
Stablecoins: Promise and complexity
As evidenced by regional developments, few topics dominated this quarter’s discussion like stablecoins. Angela noted that around the world, regulators are drafting bespoke stablecoin frameworks, driven by the view that stablecoins could become true mediums of exchange on public blockchains due to their stability in value.
Yet even as principles converge around issues like timely redemption and high-quality reserves, regulatory fragmentation persists. Angela and Isabella both stressed that interoperability remains a significant hurdle, with jurisdictional frameworks diverging to suit national objectives and market circumstances.
Isabella added that regulators are increasingly focused on defining roles and responsibilities within the stablecoin ecosystem to combat financial crime, emphasizing the importance of data sharing and public-private partnerships as stablecoins become more embedded in global commerce.
Wrench attacks: The growing physical threat
A sobering theme this quarter was the alarming rise in violent crimes targeting crypto holders, known as “wrench attacks.” Ari described these attacks as a fusion of cybercrime’s speed with the brutality of physical violence. In the US, recent incidents have included kidnappings and home invasions where victims were forced to transfer crypto under duress. Angela and Isabella both noted that wrench attacks were not exclusive to the US, with similar incidents happening in Europe and Singapore.
The team highlighted the urgent need for both digital and physical security measures, greater law enforcement awareness, and public education to combat these crimes. As crypto continues to grow in value and mainstream adoption, Ari warned that it’s likely to attract organized criminal networks seeking quick, high-value payouts.
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Looking ahead
As Q3 begins, the TRM policy team expects another intense period of developments. Angela will be watching the rollout of Hong Kong’s stablecoin framework, as well as legislative updates from around the region. Ari remains focused on Capitol Hill, where stablecoin and market structure bills are moving forward, while also tracking crypto regulation in emerging regions like Africa, where Nigeria recently classified crypto as securities. Isabella is monitoring key UK and EU consultation outcomes on market abuse, stablecoins, and financial crime, including a crypto threat assessment expected soon from the UK’s Office of Financial Sanctions Implementation (OFSI).
The team also reflected on how crypto policy is undeniably global. Discussions each quarter reveal just how intertwined policy and industry developments are. This means businesses and regulators alike must grapple with the challenge of administering and complying with local regulations while maintaining interoperability across jurisdictions.
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