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Keep up with the latest crypto regulation news

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Upcoming Key Events in Crypto Market on January 15

According to BlockBeats, the crypto market is set to experience two significant events on January 15. The first involves the U.S. Senate Banking Committee, which will vote on the CLARITY Act. This legislation aims to combat fraudulent and deceptive trading practices, false trading volumes, and mandates proof of reserves, potentially addressing longstanding regulatory issues in the cryptocurrency sector.Additionally, January 15 marks BitMine's shareholder day, where shareholders will vote on a proposal to increase the number of shares from 500 million to 50 billion. If approved, BitMine will secure additional funds to purchase ETH, potentially boosting expectations for ETH prices.
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India Tightens Regulations for Crypto Platforms with New Guidelines

According to Cointelegraph, India's Financial Intelligence Unit (FIU) has introduced new guidelines aimed at strengthening the onboarding process for users on cryptocurrency platforms. These regulations require crypto exchanges to implement more stringent verification methods, including live selfie pictures and geographic location checks. The Times of India reports that the selfie verification process involves software that monitors users' eye and head movements to prevent AI deep fakes from circumventing the know-your-customer (KYC) protocols. Additionally, exchanges are mandated to collect geolocation data and IP addresses during account creation, along with a timestamp of the account setup. To comply with anti-money laundering (AML) requirements, exchanges must verify user bank accounts by initiating a small transaction. Users are also required to provide additional government-issued photo identification and verify their email and mobile numbers to establish an account with a registered crypto exchange. These measures reflect India's regulatory approach to cryptocurrencies and digital assets, considering the country's vast market potential with a population exceeding 1.4 billion. The influx of Indian users into the crypto space could potentially lead to increased investment opportunities. In related developments, India's Income Tax Department (ITD) officials met with parliamentary lawmakers to discuss the challenges posed by cryptocurrencies and decentralized finance platforms in tax enforcement. The ITD highlighted that decentralized exchanges, anonymous wallets, and the cross-border nature of crypto transactions complicate taxation efforts. Jurisdictional differences in tax regulations further hinder efficient taxation of cryptocurrencies. Under India's Income Tax Act, gains from cryptocurrency sales are taxed at a rate of 30%, with deductions limited to the cost basis against the gains. Crypto traders in India are unable to offset gains with losses from other transactions, as tax loss harvesting is not permitted. These discussions underscore the ongoing complexities in regulating and taxing the rapidly evolving crypto landscape in India.
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Goldman Sachs: Regulatory Clarity Is Key to Institutional Adoption of Crypto Assets

Regulatory improvements will be critical to unlocking broader institutional adoption of crypto assets, according to analysts at Goldman Sachs, who pointed to U.S. market structure legislation as a central catalyst.In a report cited by Odaily, a Goldman Sachs research team led by James Yaro said clearer regulation would benefit both buy-side and sell-side financial institutions, while also enabling new use cases for crypto assets beyond speculative trading.Clarity Act seen as pivotal catalystThe analysts highlighted the U.S. Digital Asset Market Clarity Act, commonly referred to as the Clarity Act, which is currently advancing through Congress.According to the report, the legislation is expected to:Establish a clear regulatory framework for tokenized assets and decentralized finance (DeFi)Define the respective jurisdictions of the U.S. Securities and Exchange Commission and the Commodity Futures Trading CommissionReduce regulatory ambiguity that has constrained institutional participationSuch clarity, Goldman Sachs said, is essential for unlocking institutional capital and allowing compliant engagement by banks, asset managers, and market infrastructure providers.Timing risks tied to U.S. midterm electionsGoldman Sachs cautioned that timing is critical, noting that the Clarity Act would ideally need to be passed by the first half of 2026.Failure to do so could introduce delays linked to the U.S. midterm elections in November, which may complicate legislative momentum and increase political uncertainty around crypto regulation.Senate Banking Committee signals progressEarlier, Tim Scott, the Republican chairman of the Senate Banking Committee, said the committee plans to revise the Clarity Act and move it toward a formal vote in the near term.That signal has been viewed by market participants as an important step toward advancing comprehensive crypto market structure legislation.Short-term headwinds, long-term accelerationIndustry experts cited in the report noted that market adjustments toward the end of 2025 may temper short-term adoption, as institutions remain cautious amid volatility and policy uncertainty.However, they argued that successful passage and implementation of the Clarity Act could significantly accelerate genuine institutional entry, shifting crypto adoption from tactical exposure toward deeper integration across payments, settlement, and financial infrastructure.
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CLARITY Crypto Market Structure Bill Hinges on Bipartisan Senate Support, Galaxy Says

The future of the Digital Asset Market Clarity Act of 2025, commonly known as the CLARITY market structure bill, depends on securing bipartisan backing within the United States Senate Banking Committee, according to Alex Thorn, head of research at Galaxy.Speaking to Cointelegraph, Thorn said the legislation will require at least 60 votes in the U.S. Senate to advance, meaning Republicans must secure the support of seven to ten Democratic senators.Democratic support seen as decisiveThorn noted that if Republicans can win over four Democratic members of the Senate Banking Committee, it would significantly improve the bill’s chances.In that scenario, Thorn expects that all 17 Democratic senators who previously supported the GENIUS Act — a stablecoin-focused regulatory framework — would likely align with Republicans to move the CLARITY bill forward.“Without strong bipartisan backing at the committee level, the probability of passage in 2026 drops sharply,” Thorn said.Why market structure legislation mattersA comprehensive crypto market structure framework could provide long-awaited regulatory clarity in the U.S., particularly around:Jurisdictional boundaries between regulatorsToken classificationExchange and custody requirementsSuch clarity could accelerate institutional adoption, as many large investors remain cautious due to regulatory uncertainty and the risk of sudden policy reversals.Limited long-term downside if bill stallsThorn also addressed the potential consequences if the CLARITY Act fails to advance in the Senate. He argued that the structural impact on the crypto industry would be limited, as several major policy goals have already been achieved amid a broader pro-crypto shift in U.S. regulatory posture.However, he cautioned that short-term investor sentiment could suffer, particularly if the bill stalls ahead of a key procedural window.Failure to advance the bill by Jan. 15 could complicate prospects for another vote in 2026, given the uncertainty surrounding the U.S. midterm elections.Midterm elections loom over timingPolicy analysts warn that political dynamics could significantly delay crypto legislation.Investment bank TD Cowen recently cautioned that crypto market structure legislation may not pass until 2027, and could take effect as late as 2029, if Democratic lawmakers succeed in pushing the vote beyond the midterms and regain control of at least one chamber of Congress.Meanwhile, billionaire hedge fund manager Ray Dalio has warned that Trump-era regulatory policies benefiting crypto, artificial intelligence, and the broader technology sector could be reversed if Republicans lose control of either chamber in the 2026 midterm elections.OutlookTaken together, the analysis underscores that the CLARITY Act’s fate is less about technical consensus and more about political alignment. While failure would not derail the crypto industry structurally, passage could meaningfully accelerate institutional participation — making the coming weeks a critical test for U.S. crypto regulation.
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UK Sets Timeline for New Cryptocurrency Licensing Regime

According to PANews, the UK Financial Conduct Authority (FCA) has outlined a timeline for the implementation of a new cryptocurrency licensing regime. Starting this fall, crypto asset service providers (CASPs) can apply to enter the UK market, with the application period expected to commence in September 2026. The FCA will confirm the exact timeline in due course, and a limited application window will be available before the new system takes effect on October 25, 2027. Under the plan, companies offering regulated crypto asset services in the UK, including those currently registered under anti-money laundering regulations and payment-related frameworks, will need authorization under the Financial Services and Markets Act (FSMA). Firms already authorized by the FCA for other regulated activities must amend their existing permissions before the new regime is implemented. Crypto companies relying on other authorized firms to approve financial promotions will need direct FCA authorization to market their products in the UK. The FCA requires crypto asset service companies to apply within a fixed window, lasting at least 28 days and ending no later than 28 days before the new regime begins. Applications submitted during this period are expected to be decided before the new system is in place. The legislative draft includes 'transitional provisions,' allowing companies to continue operations during the application assessment period. Companies that miss the application window or are not authorized by the time the new regime starts can operate existing products under transitional rules but are restricted from launching new products. Late applicants can still apply, but the FCA warns that the evaluation process may take longer.
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New York Legislation Targets Prediction Markets with Event Contract Restrictions

According to Cointelegraph, New York Assemblyman Clyde Vanel has reintroduced a bill to the state's lower house aiming to limit the types of event contracts that prediction markets like Kalshi and Polymarket can offer. The legislation, known as the Oversight and Regulation of Activity for Contracts Linked to Events, or ORACLE Act, was initially introduced in November and seeks to prohibit certain markets related to politics, sports, the stock market, and other areas. Prediction markets have seen a surge in popularity over the past year, offering bets on various events. Notably, sports markets have become significant revenue generators, with research from Foresight Ventures indicating that up to 90% of Kalshi's volume is tied to sports. The proposed bill would ban sports event contracts linked to specific match outcomes, such as NFL games during the season, while still permitting bets on broader outcomes like the Super Bowl winner. Additionally, the legislation aims to eliminate 'prop betting,' which involves contracts focusing on specific game details, such as the first scoring team or wagers on individual players. Prediction market platforms have encountered regulatory challenges in several states, with authorities asserting that these platforms require gambling licenses to operate. Kalshi has notably taken legal action against multiple state gambling regulators, including the New York State Gaming Commission, arguing that its operations are governed by federal law. Vanel's bill also seeks to prohibit prediction markets related to politics, deaths, or catastrophic events. Markets that allow bets on elections or government actions, such as predicting the winning political party in U.S. midterms, would be banned, as would markets concerning war, emergencies, disasters, mass shootings, terrorism, or public health crises. Furthermore, the bill targets 'death markets,' which permit wagers on the death or killing of individuals, along with markets that speculate on the price of publicly traded companies. Platforms would be required to offer users options to self-exclude and limit their time and financial expenditure on the platform. Any market continuing operations in New York after being ordered to cease would face fines of $1 million per day until compliance is achieved.
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