Brazil's Congressional Committee on Science and Technology approved a bill on Feb. 5 that would ban the issuance and trading of algorithmic stablecoins such as Ethena's USDe and Frax, requiring all stablecoins issued in Brazil to be fully backed by reserve assets, CoinDesk reports citing Brazil's tax authority. The proposal classifies issuing uncollateralized stablecoins as financial fraud punishable by up to eight years in prison, while foreign-issued stablecoins like USDT and USDC could be offered only by companies authorized to operate in Brazil, with trading platforms responsible for ensuring issuers meet Brazilian regulatory standards. Data from Brazil's tax agency show stablecoins account for 90% of the country's cryptocurrency trading volume, and the bill must pass several additional committees and Senate review before becoming law.

U.S. Commodity Futures Trading Commission (CFTC) Chairman Mike Selig said on Feb. 5 he supports lawful innovation in prediction markets and believes clear rules are needed, BlockBeats reports. Earlier that day, the CFTC formally withdrew a Biden-era proposal that would have banned political event prediction contracts.

The U.S. Commodity Futures Trading Commission (CFTC) on Feb. 5 withdrew a Biden-era proposal that sought to prohibit political event prediction contracts and signaled plans to draft new rules governing such contracts, BlockBeats reports. The move comes as the CFTC seeks to broaden its authority over prediction markets amid widening jurisdictional contests in the United States, while U.S. states intensify regulatory pressure on such markets under gambling and financial oversight frameworks. Nevada's gambling regulator recently filed a complaint against Coinbase, alleging the platform offered unlicensed sports betting via event contracts, and such state-federal jurisdictional conflicts remain ongoing despite the CFTC's withdrawal.

President Trump is expected to sign a Bitcoin and broader cryptocurrency market structure bill by April, a White House official said, BlockBeats reports citing The Bitcoin Historian on Feb. 4. The legislation will address the regulatory framework for Bitcoin and digital asset markets.

Hong Kong's monetary authority has received 36 applications for stablecoin issuer licenses and aims to grant the first batch in March, Beijing Business Today reported on Feb. 4. The review will focus on risk management, including use cases, reserve asset allocation, and cross-border compliance; applicants with operations in mainland China, Singapore, London, or ASEAN must meet local regulatory requirements. Industry participants said the first licenses could support a compliant stablecoin ecosystem and cross-border payments, while the authority warned against illegal activities using "stablecoin" as a front and advised avoiding unlicensed products.

The Nevada Gaming Control Board has initiated a civil enforcement action against cryptocurrency exchange Coinbase over alleged unlicensed wagering activity in the state, according to a report by Cointelegraph. Coinbase is one of the largest cryptocurrency exchanges in the United States.

Senate Democrats are scheduled to hold a closed-door meeting on cryptocurrency market structure tomorrow, Cointelegraph reported, citing Fox Business journalist Eleanor Terrett. The meeting will be the first since the Senate Banking Committee postponed its markup of related legislation and comes amid ongoing congressional efforts to clarify U.S. regulatory frameworks for digital assets.