Global Regulatory Shakeup: SEC Advances New Rules as EU’s MiCA Takes Full Effect

Regulation

The SEC is advancing its “Regulation Crypto” agenda, targeting three rulemaking proposals in July covering token offerings, broker-dealer custody, and market structure for trading venues, part of a push toward clearer digital asset compliance frameworks and a possible safe harbor for DeFi projects. Sam Waldon, Principal Deputy Director of the SEC’s Division of Enforcement, will depart July 31 after more than 14 years. Commissioner Hester Peirce warned that crypto vaults and on-chain lending strategies could fall under securities laws depending on how they are structured. New California crypto regulations also took effect July 1.

Security

Ostium, an Arbitrum-based perpetuals exchange, was hacked this month for an estimated \$18-24 million after a compromised private key let attackers submit fake oracle price reports, opening a synthetic position at an artificially low price before selling at market for profit. Industry-wide, H1 2026 hack incidents hit a record 207, though losses fell below \$1 billion; roughly 76% of stolen funds came from infrastructure and operational compromises rather than smart-contract bugs, underscoring the importance of access-control weaknesses and signing-system security, and reinforcing that institutional-grade custody security must cover operations and credential management, not just code audits.

Markets

Bitcoin and Ethereum extended declines this week; the overall crypto market fell 1.3% to \$2.3 trillion on July 24 as the Fear and Greed Index dropped to 28, even as DeFi tokens surged 9.8%. Bitcoin had earlier dipped toward \$64,600 after reports of strikes on Saudi tankers pushed oil above $100 and triggered risk-off sentiment; offsetting that, US spot Bitcoin ETFs logged six straight days of inflows and progress on the Digital Asset Market Clarity Act supported demand. Mining stocks such as Hut 8 and Riot Platforms outperformed a falling Nasdaq on bets miners will pivot capacity toward AI data centers.

International

The EU’s MiCA regime is now in full effect: as of July 1, legacy VASP licenses expired, requiring crypto-asset service providers to hold full CASP authorization to operate across all 27 member states, covering stablecoins, trading, and custody, a milestone for digital asset compliance across the bloc. In Hong Kong, a Standard Chartered-led HKD stablecoin could begin trading as early as July 31; the HKMA’s licensing regime requires minimum paid-up capital, high-quality liquid reserves, and strict AML compliance and risk controls, a compliance bar institutions must clear before entering the market. For institutions building cross-border compliance programs, MPC self-custody solutions are increasingly the infrastructure of choice for balancing security with flexible regulatory fit.

About Safeheron

Safeheron is a security infrastructure provider focused on institutional-grade digital asset custody. Built on MPC (multi-party computation) technology, Safeheron gives exchanges, market makers, funds, and enterprise clients seedless, single-point-of-failure-free private key management and risk controls, helping them manage digital assets securely within a compliant framework. The team is made up of engineers with deep experience in cryptography and financial security, tracking global regulatory and security developments to bring institutional clients expertise in custody security and compliance.