Senate Republicans Draft New Crypto Rules Inspired by House CLARITY Act

Senate Republicans have introduced a draft bill aimed at creating a more defined structure for regulating digital assets, building on the House-approved CLARITY Act, according to Cointelegraph. The proposal, known as the Responsible Financial Innovation Act, was put forward by Senators Tim Scott and Cynthia Lummis. It focuses on bridging regulatory gaps by enhancing coordination between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The bill also updates disclosure requirements under the 1933 Securities Act, addressing the limitations of existing rules when applied to digital assets. A notable addition is the introduction of a category called “ancillary assets,” which refers to digital tokens that are not classified as securities. This change aims to separate such assets from traditional securities to ensure more precise oversight.

Lawmakers hope to finalise the legislation before the October congressional recess, signaling increasing urgency to bring clarity to crypto regulations. The House version of the CLARITY Act passed with bipartisan support, but the Senate’s proposed amendments may lead to further debate and negotiation. With the Senate closely divided, gaining a broad consensus could be challenging.

Cointelegraph reports that the sponsors of the bill believe this framework will help establish clearer rules for the crypto market while reinforcing the United States’ role as a leader in digital asset innovation. 

UK Plans Ransomware Payment Ban for Critical Services

According to Cointelegraph, the UK government is preparing new rules to ban public sector bodies and operators of critical national infrastructure from paying ransomware demands. This move, which expands an existing policy that already applies to government departments, would cover essential services like healthcare, energy, and local councils. The aim is to reduce incentives for cybercriminals and strengthen the country’s defences against attacks.

The proposal includes a mandatory reporting system that would require victims of ransomware to notify authorities within 72 hours of an incident, followed by a detailed report within 28 days. Organisations outside the ban’s scope would also need to report any intention to pay. The government believes that cutting off financial rewards will disrupt the ransomware business model and make the UK a less attractive target for attackers.

Cointelegraph notes that the ban has been shaped by public consultations, where a majority of respondents supported the idea of restricting payments. 

Recent ransomware incidents targeting critical services, such as attacks on the British Library and healthcare systems, have highlighted the urgency of stronger cybersecurity measures. Authorities view this policy as a step toward protecting essential services and sending a clear signal that paying ransoms is no longer an option.

US Moves to Seize $7.1 Million in Crypto from Fraudulent Oil and Gas Scheme

The US federal prosecutors in Seattle have filed a civil action to seize $7.1 million worth of cryptocurrency linked to an alleged oil and gas investment scam. According to Cointelegraph, Homeland Security officials initially confiscated the funds in December 2024, with the goal of returning them to defrauded investors. The fraudulent scheme reportedly operated between June 2022 and July 2024, collecting nearly $97 million from victims.

Acting US Attorney for Seattle Teal Luthy Miller stated that the perpetrators laundered stolen funds through multiple cryptocurrency accounts, many of which are linked to individuals in Russia and Nigeria. Prosecutors allege that the victims’ money was converted into digital assets like Bitcoin, Tether, USDC, and Ether before being moved to international exchanges, including Binance.

One suspect, Geoffrey Auyeung, was indicted in August 2024 for laundering a large portion of the stolen funds. Cointelegraph reported, Authorities claim that he bought crypto with the proceeds and funnelled most of it overseas. Nearly $2.3 million was seized from his bank accounts during his arrest. The Justice Department says victims were misled into believing they were investing in oil tank storage facilities intended for rental profits, but the scammers vanished once payments were made. So far, losses of at least $17.9 million have been confirmed, with more victims expected to come forward.

If approved, the $7.1 million forfeiture will raise the total recovered amount to $9.4 million, which will be distributed among verified victims.