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framework

a16z Crypto proposed five recommendations for market regulation: the framework should not be overly conservative, and the CFTC should implement unified regulation

Miles Jennings, the policy head and general counsel of a16z Crypto, and others wrote "Getting prediction market regulation right," which points out that the current push by the Commodity Futures Trading Commission (CFTC) to reform the regulatory framework for prediction markets is at a critical juncture, as prediction markets are transitioning from niche products to important infrastructure.With the integration of AI and blockchain-driven new risk management models, prediction markets can enable AI agents to automatically hedge risks, adjust on-chain event contract positions in real-time, and play a core role in risk management, information aggregation, and authenticity judgment. a16z Crypto believes that if the regulatory framework is too conservative, it will limit the development potential of prediction markets. Therefore, they have submitted a comment letter providing opinions on key issues such as the application of statutory core principles and CFTC regulations in prediction markets, and public interest considerations related to event contracts. They also proposed five regulatory recommendations for prediction markets, including: the CFTC implementing unified regulatory authority over event contracts, optimizing contract dispute resolution mechanisms, strengthening monitoring of insider trading and market manipulation, re-evaluating "special rules," and exploring clearer compliance pathways for on-chain prediction markets.

DeFi community jointly writes to the SEC requesting the establishment of rules to clarify the regulatory framework

The DeFi Education Fund, along with Aave Labs, Uniswap Labs, Paradigm, Andreessen Horowitz, and other organizations, has sent a letter to the U.S. SEC in response to the recent statement released by the trading and markets division regarding the registration of "non-custodial user interface" brokers for crypto asset securities.The signatories support the statement that the "non-custodial user interface," which only provides a technical entry point and allows users to manage their assets independently, should be excluded from broker registration. They also urge the SEC to establish clearer and more sustainable definitions of "broker" through formal rulemaking, to avoid incorrectly categorizing neutral software tool providers, validators, RPC/API, oracles, cloud services, and other infrastructure under broker regulations. This would provide long-term legal certainty for blockchain infrastructure innovation while ensuring investor protection.Previously, the SEC's trading and markets division indicated that some DeFi trading interfaces do not need to register as brokers, allowing for policy space for related applications. Supporters believe that the new regulations could cover infrastructure participants such as validators, APIs, and oracles. Currently, the U.S. crypto market legislation, the CLARITY Act, is stalled in the Senate.

The UK Financial Conduct Authority is seeking feedback on the 2027 cryptocurrency regulatory framework

According to Cointelegraph, the UK's Financial Conduct Authority (FCA) has announced that it is seeking industry feedback on guidance for the future regulatory framework for crypto assets in the UK, aimed at facilitating the implementation of a comprehensive regulatory framework that will take effect on October 25, 2027.According to the announcement, this consultation will last until June 3, 2026, and aims to help businesses understand the impact of the new regulations on their operations, providing compliance guidance for key areas such as stablecoin issuance, crypto trading, custody, and staking.The FCA stated that it hopes to establish a "competitive and sustainable" crypto market, allowing compliant institutions to better serve UK users. The FCA also disclosed that the application process for relevant crypto business licenses is expected to open in September 2026 and continue until February 2027.All institutions providing crypto asset services will need to obtain authorization under the Financial Services and Markets Act (FSMA) in the future, and previous registration under anti-money laundering frameworks will not automatically exempt them. This guidance consultation is seen as an important step in the UK's gradual improvement of its crypto regulatory system, marking an accelerated transition from partial regulation to a comprehensive licensing system.

JPMorgan warns: Stablecoins may become tools for regulatory arbitrage and need to be included in a bank-level regulatory framework

JPMorgan CFO Jeremy Barnum stated during the earnings call that if regulatory rules are not aligned with traditional bank deposits, stablecoins may evolve into a "regulatory arbitrage" tool. He pointed out that some stablecoin models already exhibit deposit-like characteristics, such as providing incentives similar to yields, but are not subject to banking regulatory requirements like capital, liquidity, and consumer protection, which could create an unfair competitive environment. "If the same products are not regulated equally, it will open up arbitrage opportunities," Barnum said.Currently, U.S. legislation is pushing for a cryptocurrency regulatory framework, including the Clarity Act, to clarify the regulatory division of labor between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, and to regulate the development of the stablecoin market. Additionally, whether to allow stablecoins to distribute reserve earnings to users has become a point of contention. Cryptocurrency companies, including Coinbase, support "interest-bearing stablecoins," while banks believe this would bring them closer to deposit products but lack corresponding regulatory constraints. JPMorgan expressed support for regulatory clarity but emphasized that "regulatory consistency" takes precedence over speed. At the same time, the bank is advancing product layouts, including JPM Coin and tokenized deposits, through its blockchain division Kinexys to modernize the payment system.
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