Sam Bankman-Fried will remain in federal custody under the 25-year prison term imposed after the collapse of crypto exchange FTX, after a US appeals court declined to overturn his conviction. A unanimous three-judge panel of the US Court of Appeals for the Second Circuit rejected his appeal, calling the government's case "conservatively stated" and "robust," Reuters reported. The ruling leaves intact the 2024 sentence tied to fraud and conspiracy charges stemming from FTX's multibillion-dollar failure. In written remarks cited in coverage, Judge Barrington Parker highlighted the gap between Bankman-Fried's public assurances and the conduct alleged at trial. The opinion said that while he told customers, investors and regulators that client funds were safe, he used FTX as "his own personal piggy bank," including spending customer money on real estate, political contributions and investments. The setback on appeal does not end his bid for relief. Bankman-Fried is also pursuing clemency through the presidential pardon process. Cointelegraph previously reported that a formal pardon request was submitted and appeared in early June on the US Department of Justice Office of the Pardon Attorney website. Bankman-Fried told Fox Business he is "absolutely" seeking a pardon. Public comments suggest the path may be steep. Reporting referenced in the article said President Donald Trump told The New York Times in January that he had no plans to pardon Bankman-Fried. A White House spokesperson declined to comment on the request, while Bloomberg pointed back to Trump's earlier remarks after the application became public. Trump has issued high-profile pardons, including for Ross Ulbricht, founder of the darknet marketplace Silk Road. Ulbricht had been serving two life sentences plus 40 years before receiving a pardon in January 2025. The comparison is frequently raised in discussions of political feasibility, though the two cases carry different narratives and political dynamics. For the broader crypto legal landscape, the Second Circuit decision reinforces that major exchange failures and related conduct can be treated as criminal matters capable of withstanding appellate review. With the conviction affirmed, additional relief through the courts appears limited, shifting attention toward the discretionary clemency track and any signals about the president's stance as the DOJ pardon process continues.

A Tennessee man has been indicted in connection with an alleged cryptocurrency Ponzi scheme that prosecutors say siphoned millions of dollars from investors.

Japan's lower house approved legislation on Thursday that would reclassify cryptocurrencies as financial instruments under the Financial Instruments and Exchange Act. The proposal would shift crypto regulation out of the Payment Services Act and into the same framework used for stocks, bonds, and investment trusts. The measure has not become law. It now moves to the upper house, where passage is broadly expected. If enacted, the new framework could enable regulated spot crypto ETFs. Representatives tied to the Tokyo Stock Exchange have indicated that crypto ETFs could begin listing as early as 2027 once the rule set is finalized. On taxation, Japan's 2026 Tax Reform Outline would move crypto gains to a flat 20% rate starting in 2028, replacing the current progressive "miscellaneous income" treatment that can climb to 55%. Why it matters: A clearer securities rulebook could expand regulated access and support greater institutional participation if the reform is enacted. Market sentiment: Cautiously bullish, policy-driven. The lower house vote signals momentum toward a securities-style regime, even as final approval remains pending. Historical reference: The EU Council adopted MiCA in May 2023, placing cryptoasset issuers and service providers under a unified EU framework. Legal clarity improved, but investor focus shifted toward licensing requirements and compliance costs (Consilium). Japan's proposal differs in that it is still pending and pairs regulatory changes with a separate tax shift and an ETF pathway. Ripple effects: If the upper house passes the bill, brokers and exchanges may begin aligning product roadmaps to the new regime. Tax treatment closer to traditional assets could also make crypto exposure easier for local investors to assess. Opportunities and risks: Opportunities: A scheduled or successful upper house vote could be read as an adoption signal for Japan-regulated crypto access. If final rules spell out ETF listing mechanics, activity among domestic securities firms may become the clearest indicator of market participation. Risks: Any delay in the upper house would increase timing uncertainty, making it prudent to wait for final legal text. Stricter disclosure requirements or tougher penalties for unregistered business activity could raise compliance burdens, potentially pushing back product launches.

Japan's lower house approved legislation on Thursday that would treat cryptocurrencies as financial instruments under the country's securities regime, a shift that could pave the way for regulated spot ETFs and a uniform 20% capital gains tax. The bill amends the Financial Instruments and Exchange Act (FIEA), moving crypto oversight from the Payment Services Act into the same legal framework used for stocks, bonds, and investment trusts, Bloomberg reported. It now goes to the upper house, where approval is broadly expected. The changes are not yet in force. Under the current system, digital assets are largely handled as payment instruments, with lighter disclosure and investor-protection requirements than traditional securities. If brought under the FIEA, crypto issuers and related parties would be subject to securities-style disclosure obligations, custody standards, and insider trading rules comparable to those applied to listed equities. Tokyo Stock Exchange representatives have said crypto ETFs could begin listing as early as 2027 once the framework is finalized. Large securities firms are already preparing: SBI Securities and Rakuten Securities have stated they intend to offer crypto investment trusts after rules are finalized, while 11 other firms—including Nomura, Daiwa, and Mizuho—have indicated they may enter the market. “We aim to foster more innovation by creating a sound trading environment,” Masato Yoshizawa of Japan's Financial Services Agency told Bloomberg. Koichi Kano, Japan head at Singapore-based crypto market maker QCP Group, said the bill offers “long-awaited clarity for market participants.” Tax, disclosure, and enforcement measures are also central to the proposal. Japan's 2026 Tax Reform Outline calls for crypto gains to be taxed at a flat 20%, replacing a progressive miscellaneous-income system that can reach 55%. That tax change is expected to take effect in 2028. Aligning the rate with equities and bonds would address a long-cited structural disadvantage for institutional adoption. Exchanges would face expanded disclosure requirements across 105 tokens currently approved for domestic trading. Penalties would rise for operating an unregistered crypto business: the maximum prison term for unregistered sellers would increase from three years to 10 years. The bill would also extend insider trading enforcement to crypto for the first time. Parties with access to material nonpublic information—including issuers, exchange operators, and those aware of pending listings, delistings, or major technical incidents—would face restrictions similar to those governing public equities. Hinza Asif, president of the Asia Web3 Alliance, told Bloomberg stronger enforcement “could help create a more trusted environment” for new entrants. Industry feedback has been mixed. In FSA working group discussions, some representatives cautioned that compliance demands could be too onerous, noting roughly 90% of domestic exchanges are operating at a loss. Some committee members called the proposals “too heavy-handed” and urged regulators to balance investor protection with market viability. Stablecoins are excluded from the FIEA reclassification and will remain regulated under the Payment Services Act as electronic payment instruments. The carveout reflects Japan's parallel approach to stablecoin infrastructure. Earlier this week, MUFG, SMBC, and Mizuho announced plans for joint stablecoin transactions aimed at live deployment in fiscal 2026. Implementation is expected within about one year after the bill becomes law, pointing to fiscal 2027 for the new FIEA-based crypto regime. The 20% tax rate would follow separately under the 2026 Tax Reform Outline and begin in 2028. When Japan's cabinet approved the measure in April, Finance Minister Satsuki Katayama described it as a step to expand the supply of growth capital while ensuring market fairness, transparency, and investor protection. The upper house has not yet scheduled a vote.

BREAKING: The European Central Bank has raised interest rates, becoming the first major G7 central bank to tighten policy in the current cycle. The deposit rate is now 2.25%, the main refinancing rate 2.40%, and the marginal lending facility 2.65%. The Iran war has pushed eurozone inflation above 3%, prompting the ECB to unwind two years of rate cuts in a single meeting. Europe is now in tightening mode, with markets turning attention to whether the Federal Reserve follows next. #Gold #PreciousMetals #Macro

Zimbabwe has rolled out its first formal framework for virtual assets, effectively bringing a long-running underground crypto market into the regulatory perimeter. Under the new rules, any business involved with virtual assets must register with the country's financial intelligence unit and pay an annual fee of $500. Operating without registration is now an offense. The move follows years of informal activity after Harare barred banks from dealing with crypto in 2018, a step that pushed trading onto peer-to-peer channels and social media. That market expanded through repeated currency crises and bouts of hyperinflation. Local traders described the shift as a relief, Reuters reported, saying it reduces the need to operate in the shadows. Regulators across the region are also stepping up attention as African on-chain transaction volume reached $205 billion last year.

Zimbabwe Finance Minister Mthuli Ncube issued guidelines requiring crypto businesses offering buying, selling, transfers, or custody to register annually with the Financial Intelligence Unit and pay a 500 fee, with unregistered activity deemed a violation. The move is Zimbabwe’s first dedicated crypto regulatory framework after years of legal uncertainty.

The U.S. Securities and Exchange Commission has moved to unwind two long-standing pillars of U.S. equity market structure—changes that could make it easier for tokenized U.S. stocks to trade via decentralized finance, though the proposal does not amount to an approval. On June 11, the SEC proposed rescinding Rules 611 and 610(e) of Regulation NMS, in place since 2005, along with related definitions in Rule 600 and other conforming edits. Rule 611 prohibits "trade-throughs," preventing a venue from executing at an inferior price when a better protected quote is available elsewhere. Rule 610(e) restricts trading centers from displaying quotes that lock or cross the national best bid and offer. The proposal will be open for public comment for 60 days after publication in the Federal Register. Market participants say the potential rollback matters for tokenized equities because Reg NMS was built around centralized matching engines and order routing. DeFi liquidity, dominated by automated market makers (AMMs) that price trades via bonding curves and pooled liquidity, does not map neatly onto a protected-quote regime. Galaxy Digital's Alex Thorn has argued the mismatch helps explain why tokenized U.S. equities have struggled to gain traction in DeFi. In his view, AMMs cannot comply with Rule 611 "by construction" because they execute at the pool price with slippage at block-time intervals, without the ability to continuously monitor protected quotes across venues or route orders like traditional brokers. He added that Rule 610(e) can pose similar issues, as AMM prices move with order flow and may lock or cross displayed quotes. If the SEC removes these guardrails, attention could shift toward broker-level best-execution obligations, such as FINRA Rule 5310, which requires brokers to seek the most favorable terms reasonably available for customer orders. Observers say that framework may be more compatible with tokenized markets than a trade-by-trade protected-quote approach. Even so, major hurdles would remain for tokenized stocks, including exchange registration or alternative trading system (ATS) compliance, clearing and settlement logistics, and ensuring tokenized shares carry the full set of investor rights, including dividends and voting. Separately, the SEC has been exploring an innovation exemption that could explicitly allow tokenized public stocks to trade on blockchain platforms, potentially conditioned on tokens providing the same shareholder rights as ordinary shares. Commissioner Hester Peirce has indicated any such relief would likely be narrow, aimed at tokenized versions of existing public equities rather than synthetic instruments that do not confer shareholder rights. The SEC's proposal initiates a rulemaking process rather than authorizing tokenized-stock trading. While it could remove a meaningful market-structure barrier for DeFi-based trading of U.S. equities, the ultimate impact will depend on public feedback, subsequent SEC action, and whether tokenized shares can clear substantial legal and operational requirements.