US Signals Friendlier Crypto Regulation as Firms Return; UK Lifts Ban on Crypto ETNs

US officials are signaling a more welcoming approach to cryptocurrency regulation, prompting some digital asset companies to relocate or expand operations in the United States. In a speech at the America First Policy Institute, SEC Chair Paul Atkins called for the US to "reshore the crypto businesses that fled," reflecting a broader push by the Trump administration to position the country as a hub for digital assets. Treasury Secretary Scott Bessent described the current period as the "golden age of crypto" and encouraged companies to launch and hire domestically.

The US Securities and Exchange Commission has also announced "Project Crypto," an initiative aimed at modernizing digital asset regulations. Atkins said the project responds to recommendations from the President's Working Group on Digital Asset Markets and includes proposals to ease licensing rules and clarify the distinction between commodities and securities. He suggested regulatory exemptions or grace periods for early-stage crypto projects to support innovation without excessive legal risk.

A recent Deloitte survey of 200 chief financial officers at billion-dollar firms found that 99% expect to use cryptocurrency for business in the long term, with 23% planning to do so within two years. However, concerns about price volatility, accounting complexity, and regulatory uncertainty remain significant barriers to adoption.

In the United Kingdom, the Financial Conduct Authority (FCA) has lifted its ban on retail access to cryptocurrency exchange-traded notes (cETNs), effective October 8. FCA executive director David Geale said the market has evolved since the ban was imposed in 2021, with products now "more mainstream and better understood."

Elsewhere, an employee of Indian crypto exchange CoinDCX was arrested following a $44 million hack, with authorities alleging his credentials were compromised to facilitate the breach. Global crypto hacks in July totaled at least $142 million across 17 incidents, according to blockchain security firm PeckShield, representing a 27% increase from June but less than the same period last year.

Meanwhile, XRP is showing technical signs of a potential 20% price rebound by the end of August, while Indonesia has raised taxes on crypto sales and mining activities. In the US, the trial of Tornado Cash co-founder Roman Storm has concluded closing arguments, with a verdict pending in a case that could set a precedent for developer liability in decentralized finance.