CFA Report Pegs US Crypto Fraud Losses at $80.7B

The Federal Reserve, along with other U.S. government agencies, has proposed a rulemaking to regulate how American crypto firms handle customer identification and prevent money laundering following the legalization of stablecoins. The proposed rulemaking requires digital asset service providers to verify customers' information and ensure they are not aiding criminal activities.

Ireland's new National Risk Assessment highlights the misuse of crypto-assets as a growing threat, prompting a 30-point action plan to strengthen the country's response to financial crime. The plan includes enhanced safeguards around crypto-assets and digital finance, with specific measures aimed at ensuring legitimate sources of funds for regulated businesses.

CME Group plans to sue the Commodity Futures Trading Commission over its approval of crypto perpetual futures, arguing they should be classified as swaps under the Dodd-Frank Act. Outgoing CEO Terry Duffy criticized the CFTC for clearing the novel instrument quickly, expressing concerns about risks in the market.

Customers affected by FTX's collapse are monitoring SpaceX's post-IPO performance, hoping for increased recoveries from the bankruptcy proceedings. FTX's estate has distributed $10.3 billion to customers, with projections indicating potential surplus for creditors, including from FTX's investment in SpaceX via K5 Global.

Fidelity Investments is launching the Fidelity Reserves Digital Fund, compliant with the GENIUS Act, to cater to stablecoin issuers and institutional investors. This move follows State Street's introduction of a similar product, reflecting the growing competition among traditional financial firms in the stablecoin market.

Trace Finance, a financial infrastructure company facilitating cross-border transactions, secured $32 million in a Series A funding round led by CoinFund. The company focuses on pairing stablecoins with traditional banking compliance to cater to institutional demand for regulated platforms.

Satori Finance, a decentralized perpetual futures exchange funded by Coinbase Ventures and Jump Capital, is shutting down due to financial strain caused by the declining crypto market. The platform will be operational for another month before ceasing operations on July 16.

The Federal Reserve maintained its benchmark interest rate at 3.5% to 3.75%, citing economic expansion despite uncertainty from the Middle East conflict. Bitcoin, Ethereum, and Solana prices fluctuated following the announcement, with Bitcoin down 1% but still 5% higher over the week.

The Digital Asset Tax Act signed into law in Illinois will impose a 0.2% tax on crypto activities starting January 1, 2027. The Crypto Council for Innovation expressed concerns about the punitive nature of the tax, which could drive innovation out of the state.

Moody's Ratings is expanding its credit ratings to Solana (SOL) through a partnership with Alphaledger, allowing for direct embedding of assessments into blockchain-based assets. This move follows a successful pilot project demonstrating the attachment of municipal bond ratings to tokenized securities on Solana last year. Financial firms are increasingly focusing on integrating traditional asset infrastructure onto blockchain platforms as tokenization gains traction in the finance industry.