Crypto Chaos: SEC Rules, Tariff Turmoil, Circle’s Bold IPO Move Explained

SEC Revisits Crypto Guidance and stablecoin Rules

The U.S. Securities and Exchange Commission (SEC) is reevaluating its stance on digital assets. Acting Chair Mark T. Uyeda directed the agency to review past statements on cryptocurrency investments and securities laws. This move aligns with Executive Order 14192, wich aims to reduce regulations.

The SEC will reassess how it determines if digital assets are securities under the Howey test. They’ll also look at a 2021 warning about Bitcoin (BTC) futures in mutual funds due to their volatility.Other documents under review include 2022 guidance on crypto risks and trading alerts from 2021 and 2020.

Meanwhile, the SEC clarified that “Covered Stablecoins” are not under its jurisdiction. Thes are USD-pegged tokens, like Tether (USDT) and USDC, that maintain a 1:1 value with the U.S.dollar and are redeemable for USD.

CircleS IPO Plans in Flux

circle,the company behind USD Coin (USDC),filed for an Initial Public Offering (IPO). It plans to list its Class A common stock on the New York Stock Exchange under “CRCL.” However, economic uncertainties have led Circle to reassess its IPO timeline.

Experts are watching how this IPO might affect institutional adoption and stablecoin markets. JPMorgan Chase & co. and Citigroup Inc. are preparing as lead underwriters, but the Wall Street Journal reported the delay.

Market Reactions to Tariffs and Funding Rates

Markets reacted negatively to President Trump’s tariff announcements. U.S. small caps led a broad equity sell-off, and the crypto market weakened.The U.S. dollar declined, and the yield curve flattened, signaling recession fears.

Crypto funding rates dropped below 0.005%, showing bearish sentiment. Liquidation rates fell 42%, and trading volumes dropped 22.71% to $247.6 billion. Traders are cautious, hedging and staying on the sidelines.

CLS Global Faces Legal Consequences

A federal court in Boston sentenced CLS Global for manipulating trading volumes of the NexFundAI token. This token was part of an FBI sting operation called “Operation token Mirrors,” launched in March 2024.