Blockchain analytics firm Chainalysis reported on March 5 that addresses classified as illicit received at least $154 billion in cryptocurrency in 2025, a 162% year-over-year increase driven largely by a 694% jump in value sent to sanctioned entities. The firm noted this figure represents a lower-bound estimate based on currently identified illicit addresses, with sanctioned entities tied to geopolitical conflicts and state-backed financial networks playing a major role in the rise. Despite the increase, illicit volumes remained below 1% of total on-chain activity, with stablecoins now accounting for 84% of illicit transaction volume, the report said.

The Florida Senate passed Senate Bill 314 on March 7 by a 37-0 vote, creating a state regulatory framework for payment stablecoin issuance and sending the bill, along with companion House Bill 175, to Governor Ron DeSantis for signature within 30 days, BlockBeats reports. Modeled on the federal GENIUS Act enacted in July last year, the legislation sets consumer protection and financial stability guidelines, amends the state's Anti-Money Laundering Act to bring stablecoins under supervision, and clarifies that specified payment stablecoins are not securities. The bill requires out-of-state qualified issuers to file written notice with the state financial regulator, with some stablecoins overseen solely by the Office of Financial Regulation and others co-regulated by the federal OCC, and bars issuers from paying interest to holders when federal law prohibits such payments. Companion bill CS/CS/SB 1440 was enacted the same day to expand confidentiality protections for information related to virtual currency businesses, qualified payment stablecoin issuers and other entities, including trade secrets and nonpublic data.

The Florida Senate passed Senate Bill 314 by a 37-0 vote on Thursday to establish a state regulatory framework for payment stablecoin issuance, The Block reports. The measure, paired with House Bill 175 and sent to Governor Ron DeSantis for signing within 30 days, is modeled on the federal GENIUS Act signed in July last year and incorporates consumer protection and financial stability guidelines. Key provisions include amending the Florida Money Services Business Anti-Money Laundering Act to bring stablecoin issuers under regulatory oversight, clarifying that certain payment stablecoins are not securities, requiring out-of-state qualified issuers to notify the Florida Office of Financial Regulation, and assigning regulatory authority either solely to the state OFR or jointly with the federal OCC. The bill also bars payment stablecoin issuers from paying interest to holders when such payments are prohibited under federal law, and lawmakers passed companion bill CS/CS/SB 1440 the same day to expand confidentiality protections for virtual currency businesses, qualified payment stablecoin issuers and related entities.

The CLARITY Act, a bill addressing crypto assets and related services, could clear Congress before July, Kristin Smith, President of the Solana Policy Institute, said on Fortune's Crypto Playbook. Lawmakers are urging the Senate Banking Committee to complete its review by March or April to allow a full Senate vote before the July recess, Fortune reports. Smith noted that traditional financial institutions and crypto firms are negotiating together for the first time, and that President Trump has used social media to pressure banks, raising the likelihood the bill will advance and establish clearer rules for integrating crypto assets into the broader financial system.

London-based investor Christopher Harborne, estimated to own about 12% of stablecoin issuer Tether, donated more than £12 million in total to Reform UK as of March 7, UK Electoral Commission filings show. The disclosure reveals that Harborne provided an additional £3 million to the party in November, following a previously reported £9 million contribution last year. Under Nigel Farage's leadership, Reform UK has pledged to turn the UK into a "premier hub" for crypto, proposing to cut capital gains tax on cryptocurrencies from around 18% to 10%, and in 2025 became the first UK party to accept political donations in Bitcoin and other digital assets. In January, seven parliamentary committee chairs called on the government to prohibit cryptocurrency donations to political campaigns, arguing such assets could hide the origins of funds and increase the risk of foreign interference in elections.

The CLARITY Act, a bill addressing crypto asset regulation, may clear Congress before July, Kristin Smith, President of the Solana Policy Institute, told Fortune Crypto Playbook. Smith said lawmakers, key senators and the White House remain actively engaged, pushing the Senate Banking Committee to complete its review by March or April for a full Senate vote before the July recess, despite Coinbase CEO Brian Armstrong withdrawing his support in January. Traditional financial institutions and crypto firms are directly involved in negotiations for the first time, while President Trump has used social media to pressure banks, developments Smith said increase the likelihood of the bill passing and establishing rules for integrating crypto assets into the mainstream financial system.

Kristin Smith, President of the Solana Policy Institute, said on March 7 that negotiations over the Clarity Act have entered a critical phase, with senior White House officials including presidential aide David Sacks now directly engaged in seeking compromises, and traditional financial institutions participating in discussions for the first time, BlockBeats reports. She noted that resistance following Coinbase CEO Brian Armstrong's withdrawal of support and banking sector controversy, combined with the bill's complexity, point to a lengthy legislative process. Smith said that while Elizabeth Warren remains opposed, backing from key Democrats such as Chuck Schumer and sustained pressure from President Trump are altering passage odds, with prediction markets showing higher expectations for crypto legislation this year after Trump urged banks to concede in a Wednesday post on Truth Social. She added that if the Senate Banking Committee completes its review in March or April, the bill could move forward before the July recess, otherwise the next legislative window is expected in autumn.

A federal judge in the U.S. District Court for the Southern District of New York has approved class certification in a market manipulation lawsuit targeting Tether and Bitfinex, ChainCatcher reports. The ruling divides plaintiffs into two certified classes: spot market investors and futures traders. The complaint alleges Tether and Bitfinex used USDT issuance to manipulate cryptocurrency prices between 2017 and 2019, causing investors who bought BTC and ETH during that period to incur losses potentially reaching hundreds of billions of dollars.

The White House released Trump's Cyber Strategy for America, which designates cryptocurrencies and blockchain as strategic technologies the U.S. aims to secure and lead. The strategy categorizes crypto within a pillar on emerging technologies alongside AI and postquantum cybersecurity, and calls for removing burdensome regulations that slow innovation. Bitcoin and blockchain are described as strategic technology infrastructure, with the document noting Bitcoin is becoming a strategic asset for the United States.