Blab Crypto
U.S. and Global Crypto Regimes Advance Amid Enforcement Actions in May 2026
The digital‑asset landscape is tightening its reins as lawmakers and regulators move from the local to the global stage. In May 2026, a flurry of enforcement actions and regulatory announcements underscored a worldwide push to bring crypto markets under clearer, more consistent oversight.
The first major U.S. shift came from Illinois, which became the nation’s pioneer in taxing crypto activity. On June 1, the state legislature enacted SB 3019, a 0.2 % privilege tax on transactions that occur in Illinois or are tied to Illinois by IP address or mailing address. Brokers must register with the Department of Revenue by January 1, 2027, or face a Class 3 felony. Governor JB Pritzker is expected to sign the bill, marking a significant step toward treating digital‑asset trades like traditional securities.
Meanwhile, federal regulators moved to clarify and expand the scope of crypto products under U.S. oversight. The Commodity Futures Trading Commission (CFTC) approved the BTCPERP perpetual futures contract on May 29, authorizing KalshiEX, LLC to trade the product as a futures instrument linked to Bitcoin’s spot price. That same day, the CFTC’s Market Participants Division announced that similar crypto‑asset perpetual contracts could qualify as foreign futures under Regulation 30.1, a development that may broaden the range of offerings eligible for federal regulation.
On the legislative front, the Senate Banking Committee advanced the Digital Asset Market Clarity Act of 2025 (CLARITY Act) on May 14, passing it 15‑9. The bill, now on the Senate calendar, seeks a comprehensive regulatory framework for digital assets. Although the committee vote clears the bill for floor debate, a 60‑vote threshold still stands before it can become law.
CFTC Chair Michael Selig announced on May 5 that the agency is considering rulemaking to protect non‑custodial crypto‑software developers. The move follows a March 2026 no‑action letter that exempted Phantom Technologies, a self‑custodial wallet provider, from broker‑dealer registration under specific conditions.
In the brokerage arena, FINRA granted Securitize’s subsidiary, Securitize Markets, approval on May 4 to act as a broker‑dealer capable of custodying tokenized securities and underwriting tokenized IPOs. The approval consolidates functions that previously required separate intermediaries, paving the way for on‑chain settlement between tokenized stocks and stablecoins.
The Securities and Exchange Commission (SEC) also advanced its own clearance agenda. On May 27, it gave Paxos Securities Settlement Company, LLC temporary registration as a clearing agency for an 18‑month period, allowing Paxos a ramp‑up phase before a full registration review.
State‑level moves continued across the country. South Carolina’s Governor Henry McMaster signed S. 163 into law on May 19, exempting certain crypto activities from money‑transmitter licensing, barring state agencies from testing Federal Reserve CBDCs, and shielding mining operations from local restrictions. Minnesota’s Governor Tim Walz signed HF 3709 on May 15, permitting banks and credit unions to offer virtual‑currency custody services effective August 1, 2026, provided they maintain written risk‑management policies and segregate customer assets.
Internationally, the European Commission opened a consultation on May 20 to review MiCA, seeking feedback on issuer rules, asset‑referenced tokens, e‑money tokens, and service‑provider obligations until August 31. Brazil’s central bank issued Resolution No. 561 on May 1, excluding cryptocurrencies from its regulated cross‑border payments framework while leaving crypto transfers legal. In South Korea, a court granted Bithumb a stay on a six‑month business suspension on May 1, allowing the company to continue operations while its administrative challenge proceeds.
The Bank of Italy called on the EU to consider a tokenized extension of SEPA on May 5, warning that stablecoins and tokenized deposits could fragment Europe’s financial system if left outside existing payment rails. Hong Kong’s Financial Services and Treasury Bureau and the Securities and Futures Commission published consultation conclusions on May 26 regarding regimes for virtual‑asset advisory and management service providers, aligning advisory activity with Type 4 regulated activity and management activity with Type 9 under the Securities and Futures Ordinance.
The UK’s Financial Conduct Authority and Bank of England opened a joint consultation on May 18 to gather industry feedback on tokenized wholesale markets, covering prudential treatment, collateral, and settlement instruments. The Prudential Regulation Authority issued two letters on the same day, reiterating expectations for banks and investment firms on tokenized assets and permitting deposit‑takers to experiment with stablecoins and tokenized deposits through a separate, insolvency‑remote entity.
Poland approved a MiCA implementation bill on May 15 amid an investigation into Zondacrypto, the country’s largest exchange, where users reportedly could not withdraw funds and losses exceeded 350 million zlotys. The European Central Bank’s Isabel Schnabel called on June 1 for central banks to respond to stablecoin risks with regulation and CBDCs, citing potential run risk and monetary‑policy implications.
Dubai’s Virtual Assets Regulatory Authority issued a circular on May 22 requiring VASPs to assess proliferation‑financing risks within 30 days, strengthening sanctions and transaction‑screening controls.
May’s enforcement actions further illustrated the tightening regulatory environment: a California man pleaded guilty to a bitcoin robbery conspiracy; the DOJ’s Scam Center Strike Force froze $3.8 million in crypto; the CFTC joined Gemini in a motion for relief from a 2022 judgment; OFAC sanctioned Iran’s Nobitex; a New York AG settled with Uphold over a failed yield product; the SEC charged Texas resident Nathan Fuller for a $12.3 million fraud; a Missouri AG sued CoinFlip for hidden fees; and an Ohio court sentenced a crypto Ponzi operator.
Across the globe, regulators are expanding oversight of market infrastructure and individual actors while signaling a growing willingness to address cross‑border and technology‑specific risks in the digital‑asset ecosystem. The month’s developments underscore a trend toward clearer, more consistent regulatory frameworks that aim to protect investors and maintain financial stability in an increasingly complex crypto landscape.
The first major U.S. shift came from Illinois, which became the nation’s pioneer in taxing crypto activity. On June 1, the state legislature enacted SB 3019, a 0.2 % privilege tax on transactions that occur in Illinois or are tied to Illinois by IP address or mailing address. Brokers must register with the Department of Revenue by January 1, 2027, or face a Class 3 felony. Governor JB Pritzker is expected to sign the bill, marking a significant step toward treating digital‑asset trades like traditional securities.
Meanwhile, federal regulators moved to clarify and expand the scope of crypto products under U.S. oversight. The Commodity Futures Trading Commission (CFTC) approved the BTCPERP perpetual futures contract on May 29, authorizing KalshiEX, LLC to trade the product as a futures instrument linked to Bitcoin’s spot price. That same day, the CFTC’s Market Participants Division announced that similar crypto‑asset perpetual contracts could qualify as foreign futures under Regulation 30.1, a development that may broaden the range of offerings eligible for federal regulation.
On the legislative front, the Senate Banking Committee advanced the Digital Asset Market Clarity Act of 2025 (CLARITY Act) on May 14, passing it 15‑9. The bill, now on the Senate calendar, seeks a comprehensive regulatory framework for digital assets. Although the committee vote clears the bill for floor debate, a 60‑vote threshold still stands before it can become law.
CFTC Chair Michael Selig announced on May 5 that the agency is considering rulemaking to protect non‑custodial crypto‑software developers. The move follows a March 2026 no‑action letter that exempted Phantom Technologies, a self‑custodial wallet provider, from broker‑dealer registration under specific conditions.
In the brokerage arena, FINRA granted Securitize’s subsidiary, Securitize Markets, approval on May 4 to act as a broker‑dealer capable of custodying tokenized securities and underwriting tokenized IPOs. The approval consolidates functions that previously required separate intermediaries, paving the way for on‑chain settlement between tokenized stocks and stablecoins.
The Securities and Exchange Commission (SEC) also advanced its own clearance agenda. On May 27, it gave Paxos Securities Settlement Company, LLC temporary registration as a clearing agency for an 18‑month period, allowing Paxos a ramp‑up phase before a full registration review.
State‑level moves continued across the country. South Carolina’s Governor Henry McMaster signed S. 163 into law on May 19, exempting certain crypto activities from money‑transmitter licensing, barring state agencies from testing Federal Reserve CBDCs, and shielding mining operations from local restrictions. Minnesota’s Governor Tim Walz signed HF 3709 on May 15, permitting banks and credit unions to offer virtual‑currency custody services effective August 1, 2026, provided they maintain written risk‑management policies and segregate customer assets.
Internationally, the European Commission opened a consultation on May 20 to review MiCA, seeking feedback on issuer rules, asset‑referenced tokens, e‑money tokens, and service‑provider obligations until August 31. Brazil’s central bank issued Resolution No. 561 on May 1, excluding cryptocurrencies from its regulated cross‑border payments framework while leaving crypto transfers legal. In South Korea, a court granted Bithumb a stay on a six‑month business suspension on May 1, allowing the company to continue operations while its administrative challenge proceeds.
The Bank of Italy called on the EU to consider a tokenized extension of SEPA on May 5, warning that stablecoins and tokenized deposits could fragment Europe’s financial system if left outside existing payment rails. Hong Kong’s Financial Services and Treasury Bureau and the Securities and Futures Commission published consultation conclusions on May 26 regarding regimes for virtual‑asset advisory and management service providers, aligning advisory activity with Type 4 regulated activity and management activity with Type 9 under the Securities and Futures Ordinance.
The UK’s Financial Conduct Authority and Bank of England opened a joint consultation on May 18 to gather industry feedback on tokenized wholesale markets, covering prudential treatment, collateral, and settlement instruments. The Prudential Regulation Authority issued two letters on the same day, reiterating expectations for banks and investment firms on tokenized assets and permitting deposit‑takers to experiment with stablecoins and tokenized deposits through a separate, insolvency‑remote entity.
Poland approved a MiCA implementation bill on May 15 amid an investigation into Zondacrypto, the country’s largest exchange, where users reportedly could not withdraw funds and losses exceeded 350 million zlotys. The European Central Bank’s Isabel Schnabel called on June 1 for central banks to respond to stablecoin risks with regulation and CBDCs, citing potential run risk and monetary‑policy implications.
Dubai’s Virtual Assets Regulatory Authority issued a circular on May 22 requiring VASPs to assess proliferation‑financing risks within 30 days, strengthening sanctions and transaction‑screening controls.
May’s enforcement actions further illustrated the tightening regulatory environment: a California man pleaded guilty to a bitcoin robbery conspiracy; the DOJ’s Scam Center Strike Force froze $3.8 million in crypto; the CFTC joined Gemini in a motion for relief from a 2022 judgment; OFAC sanctioned Iran’s Nobitex; a New York AG settled with Uphold over a failed yield product; the SEC charged Texas resident Nathan Fuller for a $12.3 million fraud; a Missouri AG sued CoinFlip for hidden fees; and an Ohio court sentenced a crypto Ponzi operator.
Across the globe, regulators are expanding oversight of market infrastructure and individual actors while signaling a growing willingness to address cross‑border and technology‑specific risks in the digital‑asset ecosystem. The month’s developments underscore a trend toward clearer, more consistent regulatory frameworks that aim to protect investors and maintain financial stability in an increasingly complex crypto landscape.
