Crypto Compass by BitcoinWalletSG #113

Hello Fam,

The U.S. is making significant strides toward a more crypto-friendly environment, with clearer regulations, institutional adoption, and policies like the Strategic Bitcoin Reserve reinforcing long-term confidence. From stablecoin legislation to revised SEC oversight, the regulatory landscape is evolving to integrate digital assets into the financial system.

However, alongside this progress, security threats remain a serious concern, as seen in the recent hacks of X accounts, including Kaito’s founder. Scammers often exploit these breaches to spread phishing links or promote scam tokens, tricking unsuspecting investors. Stay vigilant—always verify information before clicking links or making transactions to avoid falling victim to these attacks.

SEC Considers Revising Crypto Asset Custody Regulations

The U.S. Securities and Exchange Commission (SEC) is reviewing Biden-era regulations that imposed stricter standards on investment advisors handling cryptocurrencies and digital assets. Interim SEC Chief Mark Uyeda suggested potential revisions to custody rules and reporting requirements for mutual funds and ETFs, aiming for a more cost-effective and business-friendly regulatory approach. This shift reflects the pro-crypto stance of the current administration, signaling a move toward reducing regulatory burdens and fostering greater institutional participation in the crypto space. If rolled back, these changes could ease compliance challenges for financial firms managing digital assets.

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Congress Advances Major Cryptocurrency Legislation

The Senate Banking Committee has passed a landmark digital assets bill, creating a regulatory framework for stablecoins and signaling a major shift in Washington’s approach to cryptocurrency. The legislation aims to integrate digital assets into the U.S. financial system, ensuring clear rules for issuers, investor protections, and oversight mechanisms to prevent illicit activities. This bipartisan effort comes as institutional adoption of stablecoins grows, with regulators recognizing their role in global dollar dominance. The bill now moves to the full Senate, where further debate will shape its final implementation. If passed, it could provide the regulatory clarity long sought by the crypto industry.

Canary Capital Files for Sui Cryptocurrency ETF

Canary Capital Group has filed for an ETF tracking the spot price of Sui, making it the first proposed Sui ETF in the U.S. This filing adds to the firm's six pending crypto ETF applications with the SEC, highlighting growing institutional interest in expanding beyond Bitcoin and Ethereum-based ETFs. The move reflects increased optimism for broader crypto ETF approvals under the current administration, which has shown a more favorable stance toward digital asset regulation. If approved, the Sui ETF would provide investors with regulated exposure to the Sui ecosystem, further legitimizing the altcoin market in traditional finance.

Happenings of the week

• Goldman Sachs acknowledges crypto for the 1st time in shareholder letter

• South Korea’s central bank rejects Bitcoin as a reserve asset

• Gold ETFs see higher inflows than BTC ETFs amid rally

• Strategy’s stock called ‘altcoin of tradfi’ by Bitwise strategist

Kaito and Founder’s X Accounts Hacked

The X accounts of Kaito, a Web3 information platform, and its founder Yu Hu were hacked on March 15, 2025, leading to false reports about token supply issues. The posts falsely warned of "irregular activity" in wallets linked to Kaito AI, causing the KAITO token to drop nearly 10% before recovering. Kaito confirmed that wallets remained secure, and Hu regained control of his account, stating an investigation was underway. The incident mirrors other recent social media hacks targeting crypto projects, raising concerns over security vulnerabilities in X accounts.

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