Today in crypto, Democrat Senators were criticized for proposing a DeFi restriction list, Roger Ver has reportedly reached a deal with the US Justice Department to avoid prison over tax charges, while Luxembourg’s sovereign wealth fund made its first Bitcoin ETF investment.
Backlash as Democrats propose ‘restricted list’ for DeFi protocols
Despite previously supporting a crypto market structure bill, several Democratic Senators have reportedly introduced a counter-proposal that could see decentralized finance protocols placed on a “restricted list” if deemed too risky.
This move, among others they proposed, could “kill DeFi,” according to its critics.
The Senate Banking Committee Democrats sent a proposal to the committee’s Republicans on Thursday seeking to impose Know Your Customer rules on the frontends of crypto apps — including non-custodial wallets — and stripping protections from crypto developers, several industry commentators said on Thursday, citing a report from Punchbowl News.
Among those commentators was crypto lawyer Jake Chervinsky, who said the counter-proposal could kill any chance of establishing a crypto market structure framework, noting that it could undermine the bipartisan support the CLARITY Act had already secured in the House in July, where it passed 294-134.
“It’s so bad. It doesn’t regulate crypto, it bans crypto,” Chervinsky said, pointing to a suggested measure permitting the Treasury Department to create a “restricted list” for DeFi protocols it considers are too risky, making it a crime for anyone who uses them.
Blockchain Association CEO Summer Mersinger said the proposal, if implemented, would make it impossible for industry players to comply and push local innovators offshore.
Roger Ver reaches tentative agreement with US DOJ over tax charges: Report
Bitcoin advocate Roger Ver, known to many in the crypto industry as “Bitcoin Jesus,” has reportedly reached a deal with the US Department of Justice that could allow him to avoid prison time.
According to a Thursday New York Times report, Ver’s lawyers reached a tentative agreement with US authorities that would require the Bitcoin (BTC) advocate to pay $48 million in taxes he owed from his crypto holdings. The Justice Department charged Ver with mail fraud and tax evasion in April 2024, seeking to extradite him from Spain to stand trial.
The New York Times reported that Ver has ties with figures connected to the administration of US President Donald Trump, including hiring lawyers who previously worked for the president. He also reportedly paid $600,000 to political consultant Roger Stone, a Trump adviser, to lobby for changes to US tax laws.
The reported deal followed a series of regulatory and legal actions under the Trump administration softening on legal cases involving digital assets. At the time of publication, the tentative agreement did not appear on the public docket for Ver’s case in the US District Court for the Central District of California.
The initial indictment alleges that Ver falsely reported on tax forms related to his crypto holdings. He and two of his companies, MemoryDealers and Agilestar, allegedly held about 131,000 BTC in 2014. The DOJ said he attempted to evade paying taxes on his assets by renouncing his US citizenship and later becoming a citizen of St. Kitts and Nevis.
Luxembourg sovereign wealth fund dips into Bitcoin ETFs with 1% stake
Luxembourg’s sovereign wealth fund has allocated 1% of its portfolio to Bitcoin exchange-traded funds (ETFs), marking one of the first such moves by a European state-backed investment entity.
Luxembourg Director of the Treasury and Secretary General Bob Kieffer noted the investment in a Wednesday LinkedIn post. He said Finance Minister Gilles Roth had revealed the decision during his presentation of the 2026 Budget at the Chambre des Députés, Luxembourg’s legislature.
“Recognizing the growing maturity of this new asset class, and underlining Luxembourg’s leadership in digital finance, this investment is an application of the FSIL’s new investment policy, which was approved by Government in July 2025,“ Kieffer said.
Luxembourg’s Intergenerational Sovereign Wealth Fund (FSIL) has reportedly invested 1% of its holdings into Bitcoin ETF products. Considering the fund’s assets under management of about 764 million euros (almost $888 million) as of June 30, this is equivalent to a placement of about $9 million into Bitcoin ETFs.
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