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Washington State Broadly Criminalizes All Malicious Deepfakes, Expanding on Existing Deepfake Regulation

Texas Legislative Update: HB 21 Changes Property Tax Exemption For Housing Finance Corporations

State of the Unions – a Roundtable Series on Recent Developments in Labor Law

ADventures in Law

NAD Provides More Guidance on Obligations with Influencers Who Are Gifted Free Product

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<a href="#digital">Digital Asset Companies Announce Partnerships, Integrations, Product Launches</a>

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<a href="#stablecoin">Stablecoin Issuers Announce IPO, Strategic Partnerships, Tech Integrations</a>

<a href="#crypto">Crypto Companies Launch New Digital Asset Investment Products</a>

<a href="#protocol">SEC Publishes Statement on Certain Protocol Staking Activities</a>

<a href="#cryptobills">SEC, DOL Withdraw Prior Crypto Guidance; Crypto Bills Advance in Congress</a>

<a href="#hongkong">Hong Kong Passes Stablecoins Bill; UK Issues Crypto Consultation Papers</a>

<a href="#sec">SEC and DOJ Actions Target Crypto Fraud Schemes, Criminal Enterprises</a>

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Digital Asset Companies Announce Partnerships, Integrations, Product Launches

By <a href="https://www.bakerlaw.com/RobertAMusiala">Robert A. Musiala Jr.</a>

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A major U.S. cryptocurrency exchange recently announced that it has completed a “proof of reserves” (PoR) report covering the exchange’s client holdings in BTC, ETH, SOL, USDC, USDT, XRP and ADA. According to a press release by the exchange, “[t]his rigorous verification process confirms we hold sufficient assets to fully back client balances. We don’t just ask you to trust us – we ask you to cryptographically verify our custody of your cryptoassets.”

In another recent announcement, institutional crypto exchange EDX Markets announced a partnership with BlockFills, a crypto trading and technology firm, to enhance EDX’s institutional crypto trading capabilities. According to a press release, the partnership will enable reduced counterparty risk, high-frequency trading, larger trades and tighter spreads for institutional clients.

In a third recent press release, crypto exchange KuCoin announced “a strategic integration with AEON, a next-generation Web3 payment protocol, to further enhance our Web3 Mobile payment capabilities across both online and offline retail environments.” The integration will allow users of the exchange’s KuCoin Pay product to “seamlessly pay for goods and services across a wider range of real-life scenarios—including e-commerce, in-store purchases, and everyday spending—using leading cryptocurrencies such as USDT, USDC, ETH, TON, and BNB.”

Another recently announced integration involves a leading digital asset infrastructure provider joining Lynq, a “real-time yield-bearing settlement network for digital assets.” According to a press release, the infrastructure provider will participate in Lynq’s “growing consortium of early adopters,” which includes several well-known crypto and traditional financial services firms.

In a final notable press release, Ledger, a major cold-storage hardware provider, announced plans to make its crypto debit card, CL Card, available to U.S. users. According to a press release, the CL Card operates on the network of one of the world’s largest payment card issuers and allows users to maintain their crypto funds in self-custody while still being accessible for everyday spending.

For more information, please refer to the following links:

<a href="https://blog.kraken.com/news/kraken-por-march-2025">[] completes newest Proof of Reserves, raising the bar for crypto platform transparency</a>

<a href="https://edxmarkets.com/edx-and-blockfills-a-strategic-partnership-for-scalable-crypto-trading/?utm_content=332878739&amp;utm_medium=social&amp;utm_source=linkedin&amp;hss_channel=lcp-89585029">EDX and BlockFills: A Strategic Partnership for Scalable Crypto Trading</a>

<a href="https://www.prnewswire.com/news-releases/kucoin-pay-integrates-with-aeon-to-revolutionize-web3-mobile-payments-in-retail-302459766.html">KuCoin Pay Integrates with AEON to Revolutionize Web3 Mobile Payments in Retail</a>

<a href="https://www.businesswire.com/news/home/20250522872373/en/Fireblocks-Integrates-with-Lynq-the-Real-Time-Yield-Bearing-Settlement-Network-as-a-Launch-Partner">[] Integrates with Lynq, the Real-Time Yield-Bearing Settlement Network, as a Launch Partner</a>

<a href="https://www.ledger.com/blog-the-cl-card-comes-to-the-us">Spend Your Crypto with Ledger: The CL Card Comes to the US</a>

Stablecoin Issuers Announce IPO, Strategic Partnerships, Tech Integrations

By <a href="https://www.bakerlaw.com/professionals/jonathan-cardenas/">Jonathan Cardenas</a>

A global financial technology company and issuer of the USDC stablecoin has announced the launch of its initial public offering (IPO) on the New York Stock Exchange under the ticker symbol CRCL. According to the company’s Form S-1 registration statement, the IPO will involve the sale of 24 million shares of the company’s Class A common stock, which is expected to be priced at between $24.00 and $26.00 per share. The company will offer 9.6 million shares, and its selling stockholders will offer 14.4 million shares, of the company’s Class A common stock.

The Wyoming Stable Token Commission (Commission) has announced that it has entered into a strategic partnership with a digital assets-focused open-source intelligence company to support the launch of the Wyoming Stable Token (WYST). The Commission was tasked with the issuance of WYST pursuant to the Wyoming Stable Token Act. WYST is described as the “first fully-reserved, fiat-backed stable token issued by a U.S. public entity” and is expected to launch in July 2025.

A Singapore-based stablecoin payment infrastructure company has announced the launch of its Singapore dollar-backed stablecoin, XSGD, on the XRP Ledger (XRPL) in partnership with a major U.S.-based cross-border payments company. According to a press release, XSGD’s launch on XRPL will expand XSGD access to developers, fintechs and financial institutions. The company will launch a second phase of its rollout on XRPL in June 2025 with a focus on institutional use cases.

Finally, the issuer of the USD1 stablecoin has announced a collaboration with a decentralized blockchain oracle network. According to a press release, the company has integrated the oracle network’s cross-chain interoperability protocol to enable transfers of the USD1 stablecoin across leading blockchain networks, including the Ethereum and BNB Chain networks. The press release notes that the company’s partnership with the oracle network will “accelerate and improve USD1’s utility for cross-border payments.”

<a href="https://www.cnbc.com/2025/05/27/stablecoin-issuer-circle-kicks-off-its-ipo-targeting-a-nearly-6-billion-valuation.html" target="_blank" rel="noreferrer noopener">Stablecoin issuer </a>[]<a href="https://www.cnbc.com/2025/05/27/stablecoin-issuer-circle-kicks-off-its-ipo-targeting-a-nearly-6-billion-valuation.html" target="_blank" rel="noreferrer noopener"> kicks off its IPO, targeting a nearly $6 billion valuation</a>

<a href="https://inca.digital/news/wyoming-stable-token-commision-partnership/" target="_blank" rel="noreferrer noopener">Wyoming Stable Token Commission Partners with [] to Enhance Security and Transparency for State-Issued Stable Token</a>

<a href="https://www.cryptotimes.io/2025/05/20/xrp-ledger-welcomes-straitsx-xsgd-stablecoin-launch/#google_vignette" target="_blank" rel="noreferrer noopener">XRP Ledger Welcomes [] XSGD Stablecoin Launch</a>

<a href="https://www.prnewswire.com/news-releases/record-breaking-world-liberty-financial-usd1-stablecoin-unlocks-cross-chain-capabilities-with-chainlink-302458003.html" target="_blank" rel="noreferrer noopener">Record-Breaking World [] USD1 Stablecoin Unlocks Cross-Chain Capabilities with Chainlink</a>

Crypto Companies Launch New Digital Asset Investment Products

By <a href="https://www.bakerlaw.com/professionals/jonathan-cardenas/">Jonathan Cardenas</a><a href="https://www.bakerlaw.com/VeronicaReynolds"></a>

A major U.S.-based cryptocurrency exchange recently announced that it has entered into a strategic partnership with a Switzerland-based issuer of tokenized assets and a Switzerland-based blockchain foundation to provide investors with access to tokenized U.S. equities. According to a press release, the issuer will deploy Solana Program Library-based digital representations of U.S.-listed stocks and exchange-traded funds on the Solana blockchain and will make these tokenized assets available to eligible non-U.S. clients of the crypto exchange directly through the crypto exchange’s app.

The same crypto exchange also recently announced that it has launched a crypto derivatives offering in Europe, including perpetual and fixed maturity contracts, in compliance with the Markets in Financial Instruments Directive (MiFID II). The exchange will offer these crypto derivatives through a Cyprus-based MiFID II-regulated entity.

In related news, a major Singapore-based crypto exchange announced that it has acquired an MiFID license to expand its investment services offerings across Europe. The exchange acquired the MiFID license following its receipt of regulatory approval to acquire a Cyprus Securities and Exchange Commission-licensed investment services provider. According to a press release, the exchange’s MiFID license will complement its European Union Markets in Crypto-Assets Regulation license and will enable the exchange to offer a regulated suite of financial products to eligible users in the European Economic Area.

According to recent reports, a United Kingdom-based crypto investment firm has announced that it has made an equity investment in a Switzerland-based structured investment solutions provider. The investment will enable the two firms to collaborate on the launch of digital asset-linked structured products and exchange-traded products, including crypto index strategies, institutional advisory and treasury services, and advanced derivatives and hedging tools.

In a final notable item, a U.S.-registered investment adviser and commodity pool operator has announced the introduction of two new XRP-linked exchange-traded funds (ETFs) on a major U.S. stock exchange. The XRP-linked ETFs are designed to provide investors with exposure to XRP markets and XRP price movements through conventional brokerage accounts rather than through direct management of the underlying crypto-asset.

<a href="https://www.businesswire.com/news/home/20250522493630/en/Kraken-Partners-with-Backed-to-Launch-xStocks-on-Solana-Bringing-Tokenized-Equities-to-the-Masses" target="_blank" rel="noreferrer noopener">[] Partners with Backed to Launch xStocks on Solana, Bringing Tokenized Equities to the Masses</a>

<a href="https://www.businesswire.com/news/home/20250520169459/en/Kraken-Launches-Europes-Largest-Regulated-Futures-Offering-Strengthening-Market-Leading-Position-in-Region">[] Launches Europe’s Largest Regulated Futures Offering, Strengthening Market-Leading Position in Region</a>

<a href="https://crypto.com/en/company-news/cryptocom-secures-mifid-licence-to-expand-traditional-investment-services-offering-across-europe">[] Secures MiFID Licence to Expand Traditional Investment Services Offering Across Europe</a>

<a href="https://decrypt.co/320214/gsr-invests-in-maverix-securities-to-support-the-launch-of-regulated-digital-asset-structured-products">[] Invests in Maverix Securities to Support the Launch of Regulated Digital Asset Structured Products</a>

<a href="https://news.bitcoin.com/xrp-futures-heat-up-as-nasdaq-welcomes-xrpi-and-xrpt-in-major-etf-debut/">XRP Futures Heat up as Nasdaq Welcomes XRPI and XRPT in Major ETF Debut</a>

SEC Publishes Statement on Certain Protocol Staking Activities

On May 29, the U.S. Securities and Exchange Commission (SEC) Division of Corporation Finance (Division) published its Statement on Certain Protocol Staking Activities. The statement addresses the Division’s views on certain activities known as “staking” on networks that use proof-of-stake (PoS) as a consensus mechanism (PoS Networks). The statement refers to crypto assets that are used to participate in and/or earned for participating in a network’s consensus mechanism, or otherwise used to maintain and/or earned for maintaining network security, as “Covered Crypto Assets” and refers to their staking on PoS Networks as “Protocol Staking.” The statement provides detailed descriptions of the activities involved in Protocol Staking and the use of Covered Crypto Assets in such activities.

The statement further defines “Protocol Staking Activities” as (1) staking Covered Crypto Assets on a PoS Network; (2) the activities undertaken by third parties involved in the Protocol Staking process ‒ including, but not limited to, third-party Node Operators, Validators, Custodians, Delegates and Nominators (Service Providers) ‒ including their roles in connection with the earning and distribution of rewards; and (3) providing “Ancillary Services” as defined in the statement. The statement defines and discusses four specific types of Protocol Staking Activities in detail: “Self (or Solo) Staking,” “Self-Custodial Staking Directly with a Third Party,” “Custodial Arrangements” and “Ancillary Services.” In each instance, the statement notes the Division’s views that the activities do not involve the offer and sale of securities within the meaning of Section 2(a)(1) of the Securities Act of 1933 (Securities Act) or Section 3(a)(10) of the Securities Exchange Act of 1934 (Exchange Act) and do not meet the “investment contract” test set forth in SEC v. W.J. Howey Co.

SEC Commissioners Hester M. Peirce and Caroline A. Crenshaw each published their own comments on the statement. Peirce, who leads the SEC’s Crypto Task Force, said the “statement provides welcome clarity for stakers and ‘staking-as-a-service’ providers in the United States” and welcomed feedback. Crenshaw criticized the statement, noting, among other things, that courts in recent SEC enforcement actions ruled that staking services were properly alleged to be investment contracts.

<a href="https://www.sec.gov/newsroom/speeches-statements/statement-certain-protocol-staking-activities-052925">Statement on Certain Protocol Staking Activities</a>

<a href="https://www.sec.gov/newsroom/speeches-statements/peirce-statement-protocol-staking-052925">Providing Security is not a “Security” – Division of Corporation Finance’s Statement on Protocol Staking</a>

<a href="https://www.sec.gov/newsroom/speeches-statements/crenshaw-statement-protocol-staking-052925">Response to Staff Statement on Protocol Staking Activities: Stake it Till You Make It?</a>

SEC, DOL Withdraw Prior Crypto Guidance; Crypto Bills Advance in Congress

U.S. federal agencies continue to withdraw or rescind previously issued crypto guidance. On May 15, the U.S. Securities and Exchange Commission (SEC) Division of Trading and Markets published a statement providing notice that the SEC Division staff is withdrawing a <a href="https://www.sec.gov/newsroom/speeches-statements/joint-staff-statement-broker-dealer-custody-digital-asset-securities">joint staff statement</a>, issued on July 8, 2019, addressing broker-dealer custody of digital asset securities. In a similar action, on May 28, the U.S. Department of Labor published a press release providing notice that it has rescinded a 2022 compliance release “that previously discouraged fiduciaries from including cryptocurrency options in 401(k) retirement plans.”

In another SEC action, on May 29, the SEC voluntarily dismissed its lawsuit against a major U.S. cryptocurrency exchange and its foreign-based holding company. According to the joint stipulation to dismiss filed with the court, the SEC said dismissal of the litigation was appropriate “in the exercise of its discretion and as a policy matter.”

In legislative developments, on May 19, the U.S. Senate voted to close debate on the pending stablecoin bill, referred to as the GENIUS Act. The bill will now advance to the Senate floor. On the same day, the Congressional Research Service published a <a href="https://www.congress.gov/crs-product/IN12553">three-page summary</a> of the bill. And on May 29, House Committee on Financial Services Chairman French Hill, R-Ark., introduced the Digital Asset Market Clarity (CLARITY) Act, which would establish a regulatory framework for digital assets in the U.S. A press release by the House Committee on Financial Services includes links to the <a href="https://financialservices.house.gov/uploadedfiles/052925_clarity_act.pdf">full text</a> of the bill and a <a href="https://financialservices.house.gov/uploadedfiles/2025-05-29_-_comms_one-pager_-_clarity_act_of_2025_-_final.pdf">one-page summary</a>.

<a href="https://www.sec.gov/newsroom/speeches-statements/withdrawal-joint-staff-statement-broker-dealer-custody-digital-asset-securities">Withdrawal of Joint Staff Statement on Broker-Dealer Custody of Digital Asset Securities</a>

<a href="https://www.dol.gov/newsroom/releases/ebsa/ebsa20250528">US Department of Labor rescinds 2022 guidance on Cryptocurrency in 401(k) Plans</a>

<a href="https://www.law360.com/fintech/articles/2346867?nl_pk=269c598f-8e37-49e3-bf43-b88e05d4215b&amp;utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=fintech&amp;utm_content=2346867&amp;read_main=1&amp;nlsidx=0&amp;nlaidx=0">SEC Drops [] Suit in Latest Crypto Reversal</a>

<a href="https://www.law360.com/fintech/articles/2342401?nl_pk=269c598f-8e37-49e3-bf43-b88e05d4215b&amp;ab_exp_id=nl_subject&amp;ab_exp_var=a&amp;utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=fintech&amp;utm_content=2025-05-20&amp;read_main=1&amp;nlsidx=0&amp;nlaidx=0">Senate Advances Stablecoin Bill After Dem Backers Return</a>

<a href="https://www.congress.gov/crs-product/IN12553">CRS: Stablecoin Legislation: An Overview of S. 1582, GENIUS Act of 2025</a>

<a href="https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=409749">Chairman Hill Unveils Bipartisan Digital Asset Market Structure Legislation</a>

Hong Kong Passes Stablecoins Bill; UK Issues Crypto Consultation Papers

On May 21, the Legislative Council of Hong Kong passed the Stablecoins Bill, which establishes a licensing regime for issuers of fiat-referenced stablecoins (FRS) in Hong Kong. Upon implementation of the Stablecoins Ordinance, issuers of FRS in Hong Kong will be required to obtain a license from the Hong Kong Monetary Authority. According to a recent statement, the legislation is intended to “advance the development of Web3 in Asia and globally, with Hong Kong at the center.”

The Bank for International Settlements (BIS) recently released a working paper on the verifiability of “total value locked” (TVL) in decentralized finance (DeFi) protocols. According to the authors of the working paper, TVL measures the aggregate value of crypto-assets deposited in DeFi protocols but is currently not well understood due to limitations on calculation methods, which the authors identify as including a lack of standardization and reliance on self-reports from DeFi community members. The authors of the working paper propose that TVL measurement be standardized and introduce a “verifiable Total Value Locked” metric to measure TVL on the basis of on-chain data and standard balance queries.

On May 28, United Kingdom financial regulator released consultation papers titled “Stablecoin Issuance and Cryptoasset Custody” (CP25/14) and “A prudential regime for cryptoasset firms” (CP25/15). The consultation papers follow His Majesty’s Treasury’s draft statutory instrument and accompanying policy note of April 2025 related to the UK’s forthcoming financial services regulatory regime for crypto-assets. The consultation papers call for public comment on the proposed regulation of the issuance of “qualifying stablecoins” and of the safeguarding of “qualifying cryptoassets.”

<a href="https://www.hkma.gov.hk/eng/news-and-media/press-releases/2025/05/20250521-3">Government welcomes passage of the Stablecoins Bill</a>

<a href="https://www.legco.gov.hk/yr2025/english/ord/2025ord017-e.pdf">Stablecoins Ordinance</a>

<a href="https://www.fca.org.uk/publication/consultation/cp25-14.pdf">Consultation Paper CP25/14*** Stablecoin Issuance and Cryptoasset Custody</a>

<a href="https://www.fca.org.uk/publication/consultation/cp25-15.pdf">Consultation Paper CP25/15*** A prudential regime for cryptoasset firms</a>

<a href="https://www.bis.org/publ/work1268.pdf">BIS Working Papers No 1268 Towards verifiability of total value locked (TVL) in decentralized finance</a>

SEC and DOJ Actions Target Crypto Fraud Schemes, Criminal Enterprises

A recent press release by the U.S. Securities and Exchange Commission (SEC) announced that the SEC has charged Unicoin Inc. and three of its executives “for false and misleading statements in an offering of certificates that purportedly conveyed rights to receive crypto assets called Unicoin tokens and an offering of Unicoin, Inc.’s common stock.” According to the press release, the SEC alleges Unicoin and its executives “exploited thousands of investors with fictitious promises that its tokens, when issued, would be backed by real-world assets including an international portfolio of valuable real estate holdings,” when in fact “the real estate assets were worth a mere fraction of what the company claimed, and the majority of the company’s sales of rights certificates were illusory.”

In a separate action, the U.S. Department of Justice (DOJ) recently announced charges against 12 defendants “for allegedly participating in a cyber-enabled racketeering conspiracy throughout the United States and abroad that netted them more than $263 million.” The DOJ press release notes the criminal enterprise included various roles such as “database hackers, organizers, target identifiers, callers, money launderers, and residential burglars targeting hardware virtual currency wallets.” According to the press release, in one instance the defendants fraudulently obtained 4,100 BTC from a single victim – worth more than $230 million at the time. The press release further notes that “members of the enterprise laundered stolen cryptocurrency proceeds by moving the funds through various mixers and exchanges using ‘peel chains,’ pass-through wallets, and virtual private networks to mask their true identities.”

<a href="https://www.sec.gov/newsroom/press-releases/2025-75">Unicoin, Top Executives Charged in Offering Fraud That Raised More than $100 Million from Thousands of Investors</a>

<a href="https://www.justice.gov/usao-dc/pr/additional-12-defendants-charged-rico-conspiracy-over-263-million-cryptocurrency-thefts">Additional 12 Defendants Charged in RICO Conspiracy for over $263 Million Cryptocurrency Thefts, Money Laundering, Home Break-Ins</a>

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Weekly Blockchain Blog – June 2, 2025

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