Polymarket is introducing a broad set of market integrity rules across its DeFi platform and its CFTC-regulated U.S. exchange. The policy explicitly bans insider trading, spoofing, wash trading, and outcome manipulation, and targets trading based on confidential information or positional influence. The company says enforcement will be supported by layered surveillance and on-chain transparency measures. The move follows renewed scrutiny in recent weeks after unusually well-timed bets tied to reported U.S. strikes against Iran raised concerns that traders with privileged access may have profited from classified information.

The U.S. Securities and Exchange Commission has sent two draft rules to the White House Office of Management and Budget for review, covering disclosure requirements for the digital-asset sector and for hedge funds and private-equity funds. The digital-asset proposal features an "innovation exemption" that would allow eligible firms to operate for a set period without registering as regulated entities such as brokers or exchanges. A separate proposal would revise Form PF, the filing used to report fund performance and risk metrics. SEC Chair Paul Atkins previously pushed back the effective date of the Form PF-related updates to October 1 and said the agency would look for ways to ease disclosure burdens. (Bloomberg)

The U.S. Securities and Exchange Commission has submitted two proposed rules to the White House Office of Management and Budget for review, Bloomberg reported. One proposal focuses on disclosure requirements for the digital assets industry. It includes an "innovation exemption" that would allow eligible companies to avoid registering as regulated entities such as brokers or exchanges for a specified period. The second proposal revises Form PF, the reporting form used by hedge funds and private equity funds to disclose performance and risk information. SEC Chair Paul Atkins previously pushed the effective date of the new Form PF requirements to October 1 and said the agency will look for ways to reduce disclosure burdens.

PANews, March 23 — Bloomberg reported that the U.S. Securities and Exchange Commission has sent two draft proposals to the White House Office of Management and Budget for review. One proposal targets regulatory exemptions for digital assets, while the other focuses on disclosure requirements for hedge funds and private equity funds. SEC Chair Paul Atkins said the digital-asset package would create an "innovation exemption," allowing eligible firms to operate for a limited period without registering as brokers, exchanges, or other regulated entities. The private-funds proposal could revise Form PF, weighing the supervisory value of the reported data against the compliance burden on investment managers. The SEC previously pushed back the effective date of expanded Form PF disclosures backed by former Chair Gary Gensler to October 1.

A growing fight over whether stablecoin issuers and crypto platforms should be allowed to pay passive "rewards" is holding up the U.S. Senate's market structure package, the CLARITY Act, as lawmakers race to finish crypto rules ahead of an upcoming congressional deadline. The dispute sharpened in late March 2026, pitting banking groups against crypto firms. Banks are urging lawmakers to prohibit stablecoin yields that look like deposit interest, arguing that high payouts could siphon money away from traditional accounts. Crypto companies counter that restricting yield-bearing stablecoins would slow adoption and reduce market liquidity. The CLARITY Act, backed by the president and designed to establish a comprehensive U.S. crypto framework with clearer classifications for digital assets, has stalled after negotiations broke down over the yield question. Banking advocates point to the large rate gap: traditional savings accounts generally pay about 0.01% to 0.50% annually, while some crypto platforms offer roughly 3.5% to 4% on stablecoin deposits such as USDC. Banks warn the difference could accelerate deposit outflows from the banking system. At the center is whether dollar-pegged stablecoins should function primarily as payment and settlement tools, or whether they should be allowed to compete directly with bank accounts and money market funds by offering yield. A ban on passive rewards could also hit retail participation. Many users hold stablecoins to earn returns while waiting to trade; removing yield may weaken on-chain dollar demand and reduce liquidity across crypto venues. Exchanges could take a revenue hit as well. Coinbase, Kraken, and Gemini benefit from large stablecoin balances through interest-sharing arrangements and treasury strategies. If stablecoin deposits fall, platform revenue and overall activity could come under pressure. Even so, the industry may find workarounds. Crypto firms have previously reshaped reward programs under tighter rules, shifting from direct interest to activity-based incentives tied to trading, payments, or liquidity participation. Some yield programs could also migrate outside the United States if regulatory pressure rises, allowing global platforms to keep incentives in jurisdictions with different standards. Many market participants argue that regulatory clarity remains the bigger prize. By defining digital commodities and securities and potentially reducing enforcement risk, the CLARITY Act could support longer-term growth and innovation even if passive stablecoin rewards face new limits.

U.S. financial regulators have redrawn the lines for crypto supervision. On Tuesday, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued joint interpretive guidance that treats most digital assets as commodities or "digital tools," dialing back the SEC's enforcement-led posture. The shift quickly reignited conflict-of-interest allegations tied to World Liberty Financial, the DeFi lending project controlled by the Trump family, with critics arguing the new framework reduces disclosure and compliance burdens that previously applied. Key points - Token taxonomy: The SEC/CFTC framework classifies most crypto assets as commodities, generally removing them from securities-registration requirements. - Conflict concerns: Market observers say the change could advantage World Liberty Financial by easing disclosure and lockup-style constraints that would have applied under earlier interpretations. - Legislative bridge: SEC Chair Paul Atkins describes the guidance as a stopgap while Congress remains deadlocked on the Digital Asset Market Clarity Act. How the "token taxonomy" works At a Blockchain Summit in Washington, D.C., Atkins described the approach as a "token taxonomy," signaling a sharp turn from prior policy. Under the joint guidance, most digital assets—including payment tokens, NFTs labeled as "digital collectibles," and utility assets—are treated as distinct from securities. Only on-chain representations of traditional securities—such as tokenized stocks and bonds—remain squarely under the SEC's securities remit. The agencies cast the move as an "innovation first, enforcement second" operating stance. Why regulators moved now The timing tracks the administration's push for the Digital Asset Market Clarity Act, which has stalled in Congress amid disagreements, including over stablecoin interest provisions. By issuing guidance ahead of legislation, the SEC and CFTC effectively create a provisional safe harbor that resembles the bill's intended structure without requiring a vote. Supporters call it a bridge to regulatory certainty. Detractors say it sidelines the tougher oversight associated with the Gensler era and leaves markets reliant on agency discretion rather than statute. Scrutiny over World Liberty Financial The policy shift has amplified governance questions because a looser compliance regime could disproportionately benefit politically connected projects. Insiders point to World Liberty Financial as a likely near-term winner, since earlier interpretations were viewed as imposing stricter disclosure and lockup expectations on token-linked initiatives. Todd Baker, a senior fellow at Columbia Law School, said the framework appears designed to enable "profit-making but socially valueless" trading with limited federal oversight. The change also contrasts with recent enforcement history, when firms faced significant litigation risk—including lawsuits involving Gemini tied to internal governance and strategy changes. Under the new taxonomy, comparable actions against projects like World Liberty Financial may be harder to pursue so long as they do not tokenize existing securities. Competitiveness argument vs. two-tier fears Critics warn the guidance could create a two-tier system in which well-connected projects gain faster access to liquidity and fewer compliance hurdles. Industry supporters argue the recalibration is necessary for U.S. competitiveness. Cody Carbone of The Digital Chamber characterized it as a course correction as other jurisdictions continue to waver—citing South Korea's ongoing debate over whether to abolish crypto taxes to curb capital flight. Summer Mersinger of the Blockchain Association said SEC-CFTC coordination should help in the "near term," but the conflict-of-interest questions are unlikely to fade. For markets, the bigger issue is durability. Guidance can be reversed by a future chair. Only legislation can lock in the rules. Until the Digital Asset Market Clarity Act clears Congress, investors are effectively trading on administrative permission rather than settled law.

ChainCatcher, citing DeFiPrime, reports that the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have jointly issued Interpretive Release 3311412. The release characterizes most native tokens of decentralized networks as digital commodities, and states that staking, liquid staking derivatives (LSDs), wrapped tokens, and compliant airdrops are not securities offerings. Against that backdrop, the article lays out three fundraising and treasury structures it argues were previously impractical. The first is Liquid Genesis Staking Pools (LGSP), which use staked assets such as ETH and SOL and combine incentives from LSD yield with protocol token rewards. The second is Commodity PreParticipation Agreements (CPA), where contributors provide labor or capital in exchange for future network participation rights, rather than purchasing tokens in advance. The third is SeparationAccelerated Revenue Rights (SARR), which link a declining share of revenues to decentralization milestones, applying a "separation principle" designed to motivate teams to accelerate decentralization. The author says all three models can be assembled from existing smart contract building blocks and, in simulations, are able to support long-term protocol treasuries and ongoing team costs.

SEOUL — South Korean crypto exchange Coinone has added Portal To Bitcoin (PTB) to its delisting watchlist, citing shortcomings in required disclosures by the project's operators. The move has raised fresh investor concerns and reflects tighter oversight in Korea's digital-asset market. Coinone said Tuesday that PTB was designated for review after the issuer failed to provide information in a timely and appropriate manner. The exchange said key details were allegedly withheld or changes were made without adequate justification, developments that could materially affect the token's valuation. Coinone has initiated its regular assessment process. Korean exchanges apply strict listing standards that typically require extensive documentation, including token distribution plans and ongoing operational updates, along with transparent reporting of team changes and roadmap revisions. Coinone indicated PTB fell short of these baseline requirements. A watchlist designation functions as a formal warning. Projects are given time to remedy deficiencies, commonly 30 to 60 days; Coinone's review period for PTB is 45 days. Trading generally continues during the review, but under enhanced monitoring. Projects are expected to submit corrective plans and evidence of compliance, or risk permanent removal from the platform. The action comes as South Korea maintains one of the world's more stringent regulatory regimes for crypto trading. The Financial Services Commission (FSC) oversees exchanges, while the Specific Financial Information Act imposes broad compliance obligations, including anti-money laundering controls and investor-protection measures. Scrutiny increased further after the Virtual Asset User Protection Act took effect in July 2024, tightening issuer disclosure expectations and clarifying operating standards for exchanges. Coinone and peers have responded by increasing the frequency and depth of project reviews. Delisting standards vary by venue, though the frameworks are similar across major platforms. Coinone focuses heavily on disclosure compliance; it has delisted seven projects since 2023, each tied to transparency-related issues, reinforcing a pattern of enforcement. The watchlist decision weighed on PTB's market activity. Trading volume fell by about 40% after the announcement, and market capitalization also declined. PTB remains tradable on Coinone during the review period. Coinone said longer-term outcomes will depend on whether the project addresses core issues, including: - Full disclosure of token distribution plans - Clear communication on project developments - Formal documentation of operational changes - Regular updates to the exchange and community Historical outcomes are mixed: about 60% of watchlisted projects restore compliance, while roughly 40% ultimately face delisting. Successful remediation typically requires sustained engagement and clear proof of operational improvement. Coinone framed the move as part of its investor-protection and risk-management approach, prioritizing user safeguards over trading volume. Market participants are advised to follow official exchange updates, evaluate the project's response, and scrutinize the credibility of any corrective measures. Traders often reduce exposure to assets under review. The PTB case also underscores a broader market shift: globally, exchanges are tightening listing standards and increasing monitoring as regulatory compliance becomes a central determinant of market access. South Korea's approach is frequently watched by other jurisdictions and can influence international practices. Coinone's decision highlights the growing importance of transparency for token issuers operating in regulated exchange environments. The outcome will hinge on whether Portal To Bitcoin can demonstrate credible, timely compliance during the 45-day review. FAQ Q1: What does Coinone's delisting watchlist mean for PTB? PTB is under a 45-day review for alleged disclosure failures. Trading can continue during the period, but the project must resolve the issues to avoid delisting. Q2: Can investors still trade PTB on Coinone during the review? Yes. PTB remains available for buying and selling during the review, subject to ongoing monitoring and any future exchange notices. Q3: What disclosures did Coinone say were lacking? Coinone cited untimely disclosure of information that could materially impact value, including token distribution details and changes made without sufficient justification. Q4: How common are watchlist actions on Korean exchanges? They occur periodically as part of compliance monitoring. Major exchanges typically flag about 5–10 projects per year, with around 40% ending in permanent delisting. Q5: What happens if PTB fails to address Coinone's concerns? Coinone may permanently delist PTB. In that scenario, users would typically need to withdraw tokens to an external wallet. Disclaimer: This content is not trading advice. Bitcoinworld.co.in disclaims liability for investment decisions based on this information. Conduct independent research and/or consult a qualified professional before investing.