The Federal Reserve and California Department of Financial Protection and Innovation announced a cease and desist order against Silvergate Capital Corp., which had announced in March that it planned to shut down and voluntarily liquidate.

The CFTC issued a staff advisory on the risks of derivatives clearing organizations handling cryptocurrency-related products. In response, CFTC Commissioner Kristin Johnson said that she wants the agency to consider new regulations for these firms. She explained, “[W]e may be exposing the most vulnerable investors — investors entering our markets with hard-earned cash from a long day's work — to platforms with higher risk management exposures and lower customer protections.”

The SEC announced that it has settled charges with former Coinbase product manager Ishan Wahi and his brother over 2022 allegations of insider trading on cryptocurrencies traded by Coinbase.

The European Parliament Economic and Monetary Affairs Committee released a study following the April adoption of the Market in Crypto Assets Regulation. The study sought to identify challenges related to the adoption of the package and whether additional laws are needed to fill gaps. It proposed a default designation of all cryptocurrency assets as securities unless otherwise designated by regulators. The study says doing so “shifts the onus of gathering the technical facts and arguing the scope of regulation” to industry rather than regulators.

Cryptocurrency exchange Gemini and lender Genesis have filed for dismissal of an SEC lawsuit which claims that Gemini Earn violated securities regulations by offering unregistered securities. The companies argue that Gemini Earn should not be classified as a security. Additionally, Gemini announced on May 25 that it has chosen to headquarter its European operations in Dublin after facing challenges with regulation in the U.S.

The deal lawmakers reached to increase the debt ceiling does not include a proposed tax on the energy usage of cryptocurrency miners, according to Rep. Warren Davidson (R-OH). President Biden reportedly wanted the deal to include tax increases for corporations, high-income individuals, and others including crypto miners, but the draft includes no mention of crypto- or mining-related taxes. Davidson tweeted that this is “one of the victories” of the deal.

The French Senate has reached an agreement on a bill to regulate promotions by influencers. The agreement reportedly loosens the proposed restrictions on influencer marketing for French cryptocurrency companies by allowing influencer marketing to be used by companies which are registered with the Financial Markets Authority. A previous version of the bill only allowed influencer marketing to be used by licensed crypto companies, of which there are currently none in France.

Crypto startup Prometheum Ember Capital, a New York-based firm founded in 2021, has announced that it has received the first Special Purpose Broker-Dealer license under SEC guidelines. This will allow the firm to custody digital asset securities, but it is not permitted to support BTC.

The International Organization of Securities Commissions has released the first regulatory framework for crypto asset exchanges across national jurisdictions. The framework addresses conflicts of interest, misuse of client assets, and insider trading. The organization said that the collapse of FTX last year underscored the need for rules like this.