The UK Financial Conduct Authority (FCA) announced that seven crypto ATMs were seized, and two individuals were arrested on suspicion of running an illegal crypto exchange. The FCA said in a press release that the ATM seizures were part of an operation led by the FCA and the Metropolitan Police Service to search four premises across southwest London. The agency added a reminder that it is illegal to operate a crypto exchange or crypto ATM in the UK without FCA registration.

The EU’s new Anti-Money Laundering Authority (AMLA) issued a warning to crypto exchanges and service providers about stricter compliance requirements starting this month, with regulators planning to assess beneficial ownership. AMLA Chair Bruna Szego said in an interview that it is "essential" that the EU is "adequately protected from the risks of money laundering and terrorist financing stemming from this sector."

The SEC delayed its decision on in-kind redemptions for the Bitwise BTC ETF Trust and the Bitwise ETH ETF until September 8. Regulators have raised concerns about the complexity and security of in-kind redemptions, in which investors can redeem ETF shares for a fund's underlying tokens to avoid certain tax liabilities.

SEC Commissioner Hester Peirce advocated for the creation of a sandbox for crypto and blockchain technology during a speech in London, adding that she hopes to coordinate with the UK Financial Conduct Authority (FCA) on the issue. Peirce asserted that "The unique challenges and opportunities raised by blockchain technology and crypto assets and their borderless nature would lend themselves well to a mechanism for facilitating experiments and could help to identify where and how existing regulations might need to change in response."

Sen. Cynthia Lummis (R-WY) reacted to reports that the federal government has sold off over 80% of its BTC reserves, stating in a post on X that, “If true, this is a total strategic blunder and sets the United States back years in the bitcoin race.” The statement comes after data from the US Marshals Service showed that the government holds 29,988 BTC, instead of the expected 189,000 BTC.

Senate Banking Committee Ranking Member Elizabeth Warren (D-MA) warned in remarks at the Exchequer Club that the economic situation emerging from a mix of crypto and financial deregulation efforts by Republicans, in combination with tariffs and tax cuts, runs parallel to the events that led to the 2008 financial crisis. She also argued that the market structure legislation being considered in Congress "could sideline the SEC in overseeing the stock market, effectively destroying the $120 trillion golden egg that is America’s capital markets."

The House Ways and Means Committee Oversight Subcommittee held a hearing to discuss ways to modernize the tax code to address digital assets. Members discussed the tax treatment of staking, mining, and exchange-traded products (ETPs), as well as the idea of creating a de minimis exemption for small transactions. Some Republicans also voiced concern with the burdens of complying with the IRS’s new reporting requirements for digital assets, while Democrats criticized President Trump’s ties to the industry. In addition, Rep. Max Miller (R-OH) announced plans to introduce a legislative framework.

The House voted 217-212 to move forward with the three crypto bills being considered this week, after a group of Republican hardliners dropped their opposition to the GENIUS Act following Republican leaders’ promise to attach a measure banning a CBDC to the FY 2026 NDAA. The procedural vote tees the House up to adopt the bills in the coming days. House Speaker Mike Johnson (R-LA) said he expects to vote on the GENIUS Act today, while a vote on the CLARITY Act could be pushed to next week.

The EU sanctioned Simeon Boikov and Moldova-based platform A7 for using crypto to spread misinformation and interfere in elections. Boikov was designated for disseminating pro-Russian disinformation, including a fabricated video alleging voter fraud in Georgia in the 2024 US election. He received donations via cash-to-crypto services, darknet markets, and non-KYC Russian exchanges. The sanctions also target A7, a company linked to efforts to influence Moldova's 2024 presidential elections and other votes through direct vote-buying schemes.