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Multiple CFTC officials who questioned the regulation of the prediction market have been suspended and forced to resign

According to Cointelegraph, an investigative report released by The New York Times on Sunday revealed that several senior officials from the CFTC, who had raised regulatory concerns about Polymarket, Crypto.com, and Gemini affiliates, were subsequently suspended, subjected to internal investigations, and forced to resign. The three companies mentioned have been accused of having business ties to the Trump family.The report stated that then-CFTC acting chair Caroline Pham and her senior advisors intervened to assist the aforementioned companies in obtaining the necessary approvals. By the end of 2025, five officials who questioned or enforced cryptocurrency regulatory laws were placed on administrative leave and internal investigation, without being informed of the specific reasons. After leaving, Pham joined the cryptocurrency company MoonPay, which has a partnership with Polymarket, while her senior advisor Brigitte Weyls became the legal counsel for Gemini Titan—whose application was approved with her involvement.On the enforcement front, the CFTC has withdrawn at least five cryptocurrency investigations, with the number of enforcement actions plummeting from over 80 during the Biden administration to just two during Trump's term. In response, a White House spokesperson denied any conflict of interest, stating that "President Trump only acts in the best interest of the American public."

On-chain analysis questions the U.S. accusations of "Iranian cryptocurrency assets," with some seized wallets possibly related to actors from other countries

According to Cointelegraph, Nominis analysis indicates that some of the "Iran-related" crypto wallets recently seized and frozen by the U.S. OFAC may not exhibit on-chain behavior characteristics consistent with the past operational patterns of the Islamic Revolutionary Guard Corps (IRGC), suggesting the involvement of other state-level actors.Previously, the U.S. Treasury stated that over $340 million, totaling nearly $500 million in Iran-related crypto assets, had been frozen in the "Operation Economic Fury." Nominis CEO Snir Levi noted that historically, IRGC-related wallets typically spread funds across multiple addresses, maintain low balances in single wallets, avoid long-term holdings, and employ complex operations to reduce the risk of being frozen; however, the wallets that were seized this time show significant differences in their funding structure and behavior patterns.He believes this raises a critical question: how much of the frozen $340 million in assets is directly controlled by the IRGC, and how much involves broader infrastructures that may even overlap with financial networks of other countries.Levi also pointed out that organizations, including the IRGC and potential state-level actors from China, are continuously upgrading their use of blockchain infrastructure, and traditional static risk control labels are no longer sufficient; behavioral analysis and address clustering are becoming increasingly critical.

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.
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