The U.S. Securities and Exchange Commission has rescinded a decades-old rule that barred parties from denying the agency’s allegations in enforcement settlements. The change ends a policy that had persisted since 1972 and signals a shift toward greater flexibility in how the SEC resolves—and potentially discloses—enforcement actions, including those affecting the crypto sector.

The SEC explained in its announcement that the no-deny policy created the impression that the agency was seeking to shield itself from criticism and did not reflect current enforcement practice. By removing the rule, the SEC said it would bring its settlement process in line with the approach used by the bulk of federal agencies, which do not maintain a comparable restriction on settlements.

“For more than 50 years, the Commission has conditioned settlement on a defendant’s promise not to publicly deny the Commission’s allegations. I am pleased that we are rescinding the no-deny policy today. This rescission ends the policy prohibiting such criticism by settling defendants,” SEC Chair Paul Atkins stated. The move follows a period of scrutiny over how crypto cases have been handled and how settlements are framed in public disclosures.

With the policy removed, the SEC indicated it will enjoy “more flexibility in settling enforcement actions.” The agency emphasized that it would not enforce existing no-deny provisions, though it may still require some defendants to admit to facts or liabilities as part of settlements on a case-by-case basis. The White House had been notified earlier in the month of the plan to rescind the rule, with the SEC submitting the rescission plan to the Office of Management and Budget for review.

Commissioner Hester Peirce supported the change in a separate statement, arguing that settlements that impose silence on non-governmental parties do not serve market integrity or investor protection. “Settlements shrouded in forced silence by the non-governmental party do not serve either the markets or the Commission’s investor-protection mission,” Peirce said.

As the policy shift takes effect, several contextual elements stand out for crypto markets and enforcement practices. Notably, the SEC has faced a steady stream of crypto-related actions in the past few years, with industry participants often criticizing the no-deny constraint as constraining legal rights and transparency in settlement disclosures. The agency’s crypto-related enforcement actions reached a high point in 2023, when dozens of actions were brought against crypto firms and settlements yielded hundreds of millions of dollars in penalties.

According to the broader regulatory narrative surrounding the sector, the move aligns with a trend toward more permissive public disclosures in settlements and a rebalancing of enforcement posture. The agency’s decision also unfolds within a wider ecosystem of U.S. policy and international standards, where firms monitor developments such as MiCA in the European Union and ongoing coordination among U.S. agencies on crypto regulation, licensing, and oversight. While the SEC is not adopting a blanket stance on admission or denial in all cases, the rescission invites attention to how settlements will be structured going forward and what information will be publicly reconciled as part of each resolution.

Key takeaways

• The SEC has rescinded its no-deny policy, ending a rule dating back to 1972 that barred defendants from denying allegations in settlements.
• The agency asserts greater flexibility in resolving enforcement actions, with no blanket requirement to deny or admit allegations in settlements.
• The SEC may still require some admissions of facts or liability on a case-by-case basis, signaling continued use of admissions in certain settlements.
• Historical context includes a notable Ripple Labs settlement and a record of crypto-related actions in the early 2020s, highlighting evolving enforcement strategies and industry responses.

Policy reversal and its practical implications for the crypto ecosystem

The rescission removes a long-standing constraint on how the SEC communicates settlements and how defendants articulate their positions in public disclosures. In practice, this change could affect the risk calculus for crypto firms negotiating settlements, particularly those that seek to limit public admissions or denials in order to maintain regulatory certainty for investors, partners, and banking relationships.

From a regulatory compliance perspective, the shift has several implications. First, it may alter how settlements are documented and disclosed, influencing due-diligence processes for banks, exchanges, and asset managers that rely on transparent and consistent enforcement histories. Second, the move interacts with ongoing licensing and oversight efforts by U.S. regulators, which increasingly emphasize clarity around liability, permissible conduct, and investor protection standards. Finally, the change dovetails with a global emphasis on clear governance and accountability in crypto markets, including how cross-border enforcement actions are coordinated and disclosed.

Historical context, enforcement strategy, and market impact

Several crypto actions have framed the enforcement landscape in recent years. The SEC’s crypto program has been characterized by a high volume of actions and settlements, with commentators noting the tension between aggressive regulatory posture and the need for transparent, predictable processes. A widely cited case from 2025—though not the only example—was a $50 million settlement with Ripple Labs that drew attention to the scope and terms of settlements in high-profile crypto matters. While the revised policy does not guarantee uniform outcomes across cases, it signals a shift toward more explicit public disclosures and potentially more nuanced settlements in which the government may permit or require admission of facts or liability where appropriate.

Industry observers have also pointed to ongoing debates about how settlements should balance investor protection with market openness. Commissioner Peirce’s remarks underscore concerns that silence in settlements can undermine regulatory integrity and market confidence. The SEC’s broader enforcement posture—particularly in the crypto arena—will likely continue to influence licensing decisions, collaboration with financial institutions, and the integration of crypto services within traditional banking rails.

Existing industry commentary suggests the rule’s removal may help reduce some of the friction encountered by firms negotiating settlements, while also preserving safeguards where admissions of facts or liability are warranted. In the regulatory context, the change may prompt lawmakers, watchdogs, and market participants to reassess how enforcement history is used in ongoing risk assessments, due diligence, and compliance programs.

According to Cointelegraph, the policy reversal reflects a broader shakeout in the approach to crypto enforcement and a recalibration of how settlements are framed for public accountability and investor protection. The move invites closer scrutiny of how the SEC will calibrate consent orders, admissions provisions, and the balance between rapid resolution and transparent disclosure, particularly for firms operating across multiple jurisdictions.

What comes next and how to monitor the trajectory

Key questions remain about how individual settlements will be structured going forward. Regulators will need to articulate when admissions will be required and how much emphasis will be placed on a defendant’s public statements as part of a resolution. Analysts and compliance teams should watch forthcoming enforcement actions and settlement agreements for changes in language, disclosures, and the presence or absence of admissions of facts or liability. Cross-agency coordination and potential impacts on licensing, enforcement priorities, and international cooperation will also merit close attention as market participants adapt to a recalibrated framework for enforcement settlements.

Institutions should reassess their internal policies on settlement disclosures, risk assessment, and communications with investors. The removal of the “gag” element could affect how inquiries from auditors, regulators, and counterparties are addressed, and may influence due-diligence practices in crypto product offerings, custody, and settlement services. As the regulatory landscape evolves, firms would do well to align their internal controls with the updated posture, ensuring that any admissions in settlements are consistent with risk appetite, disclosures, and investor protection standards.

Closing perspective: while the rescission broadens the toolset available in settlements, it also places renewed emphasis on regulatory clarity, lawful conduct, and transparent accountability. Stakeholders should monitor how this shift translates into practical terms for disclosure practices, enforcement outcomes, and the governance standards that underpin crypto market integrity in the United States.

Kevin Warsh is poised to be sworn in as the next chair of the U.S. Federal Reserve Board of Governors this Friday, a pick that could tilt policy toward a more accommodative stance in the eyes of President Donald Trump. The Senate voted to confirm Warsh largely along party lines, setting the stage for a leadership change that has already sparked debate about whether the Fed will lower interest rates in the near term despite current market expectations for a hold.

Trump has repeatedly argued that the central bank should be cutting rates, a drumbeat that has shaped both political rhetoric and investor sentiment. As Warsh steps into the chair’s role, market watchers will be watching not only for formal policy signals but also for how the new leadership interprets the Fed’s mandate in a way that could influence borrowing costs and risk asset pricing in the months ahead. The next major policy decision point remains the Federal Open Market Committee’s (FOMC) meeting scheduled for June 16, when traders will scrutinize new guidance in the context of a potentially shifting rate path.

Key takeaways

• Warsh is set to take the helm of the Federal Reserve, with expectations that his leadership could influence the direction of U.S. monetary policy.
• Markets express a cautious split: prediction markets place the odds of a rate cut before 2027 at roughly 38.2%, down from near certainty earlier this year.
• In contrast, the CME FedWatch tool continues to signal a high likelihood that the policy rate, currently 3.50%–3.75%, remains unchanged through the summer, with expectations of little to no movement into July.
• During Warsh’s confirmation process, concerns were raised about potential conflicts of interest, highlighted by remarks from lawmakers about his proximity to crypto and tech interests, underscoring the broader scrutiny of top financial regulators’ disclosures.
• With Warsh’s swearing-in imminent, lawmakers are pressing for timely CFTC nominations as part of a broader push to clarify U.S. market structure for digital assets and to address regulatory questions around prediction markets and crypto platforms.

Warsh’s ascent and policy outlook

Warsh’s confirmation signals a transition at the helm of U.S. central banking. While the Fed has navigated a complex inflation and growth backdrop in recent years, the new chair’s approach will be closely watched for how aggressively policy levers could be adjusted in response to evolving economic data. The immediate policy question, however, remains whether the Fed will pivot toward rate relief in the near term or maintain a cautious stance while inflation and growth readings come into sharper focus. The FOMC’s next meeting on June 16 will be a critical moment for readers seeking to gauge how a Warsh-led Fed might balance price stability with the need to support a slowing economy.

Market sentiment ahead of the swearing-in reflects a tension between political expectations and monetary policy signals. The president’s public commentary has consistently urged rate cuts, creating a frame in which Warsh’s chairmanship could be interpreted as a commitment to more dovish policy. Yet investors must weigh this against the Fed’s broader objective of inflation containment and the possibility that a new leadership approach could still hinge on incoming data, not political timing alone. That cross-currents dynamic is why traders will be attuned not just to the Chair’s statements, but to the committee’s communicate-and-respond style as data evolves.

Markets, bets, and the rate-path debate

Two analytical channels offer contrasting pictures of where policy might head. On the one hand, prediction markets have priced in a materially lower probability of an imminent rate cut, reflecting a more cautious or data-driven outlook. Kalshi’s market for a rate cut before 2027 shows roughly 38.2% odds, a significant pullback from February’s near-certainty levels. This reflects a broader recalibration among traders who treat rate-path expectations as sensitive to the incoming data and the Fed’s evolving narrative under a new leadership regime. For context, Kalshi’s rate-cut market is publicly accessible and used by participants to hedge or speculate on policy moves as the cycle unfolds. Kalshi.

Meanwhile, the CME Group’s FedWatch tool remains more sanguine about the status quo in the near term. The current reading assigns a 98.8% probability that the Fed does not change policy rates through June, with a similar likelihood (>94%) continuing through July. In practical terms, traders are still largely expecting rates to hold at 3.50%–3.75% at the next few meetings, even as a new Fed chair takes the helm. The juxtaposition highlights how markets can price in different trajectories depending on whether they prioritize the idea of a policy pivot or the commitment to a patient, data-responsive approach. CME FedWatch.

What this means for investors in the crypto and broader risk-asset space is nuanced. A potential shift toward easier financial conditions could buoy sentiment for higher-beta assets, including crypto, but the trajectory will still be tethered to inflation data, employment trends, and the Fed’s confidence in its inflation framework. Traders should watch for how Warsh’stone in forthcoming communications aligns with the data flow from upcoming inflation readings and growth indicators.

Disclosures, conflicts, and regulatory tensions

Warsh’s confirmation hearing touched on questions of conflicts of interest and insider risk. Massachusetts Senator Elizabeth Warren voiced concern that confirming Warsh could lead to favorable regulatory accommodations if connections to crypto or Wall Street circles were construed as a risk to impartial policy. Warsh had disclosed assets exceeding $100 million ahead of the hearing, including holdings in AI and crypto-related ventures, underscoring the ongoing scrutiny surrounding regulators’ personal investments. The discussion underscores a broader theme in crypto governance: the delicate balance between expertise, independence, and the perceived risk of regulatory capture. Cointelegraph coverage of the disclosure outlines the context of such concerns.

The same moment also features a country-wide focus on the U.S. commodities regulator, the CFTC, and its stance on new market structures for crypto. Since December, the CFTC has been led by Michael Selig, Trump’s nominee, who has taken a relatively aggressive posture toward predicting-market platforms like Kalshi and Polymarket, even as state authorities challenge advances in sports betting regulation. The leadership gap at the CFTC has left lawmakers pressing for a broader panel to address urgent regulatory issues as the Digital Asset Market Clarity Act (CLARITY) moves through the legislative process. Lawmakers on the House Committee on Agriculture urged Trump to nominate a full slate of CFTC commissioners to provide clarity and a steady hand on rulemaking as the crypto and prediction-market ecosystems continue to evolve. Cointelegraph coverage.

The regulatory storyline matters for crypto users, developers, and investors not only because it shapes how digital-asset markets may be structured in the future, but also because it frames the risk and compliance environment in which innovative platforms operate. Kalshi and similar prediction-market venues have become flashpoints for regulatory debates, with questions about whether such markets fall under securities, commodities, or a bespoke category for digital-asset-based markets. The CLARITY act’s fate and any CFTC decisions will influence market design, listing standards, and the degree of federal oversight that crypto markets face in the coming years.

What readers should watch next

As Warsh steps into the chair, all eyes will be on how the Fed’s policy narrative evolves in the face of incoming data and political expectations. The June 16 FOMC meeting will be the immediate inflection point, but the longer arc will hinge on how the new leadership interprets inflation signals and growth momentum. On the regulatory front, the pace of CFTC nominations and any progress on the CLARITY framework will shape the structural context for crypto markets and prediction platforms alike. For market participants, the tension between rate-path expectations and the regulatory timetable will frame how crypto and other risk assets move in the weeks and months ahead. Investors should stay tuned to official communications from the Fed and to updates on CFTC leadership and CLARITY-related discussions as the regulatory landscape continues to tighten around the digital asset space.

Bitmine Immersion Technologies added 71,672 Ethereum in one week, raising its holdings to 5.28 million ETH as the company moves closer to its 5% supply target.

Bitmine said its Ethereum holdings reached 5,278,462 ETH as of May 17 at 4:00 p.m. ET. The company valued the position at $2,191 per ETH and said the total represented 4.37% of Ethereum’s 120.7 million token supply.

Chairman Thomas “Tom” Lee said the company bought 71,672 ETH over the past week. He said “the recent pullback” below $2,200 made the asset attractive for Bitmine’s treasury plan.

The latest update shows Bitmine is now 87% of the way to its “Alchemy of 5%” target. The company wants to acquire 5% of Ethereum supply over time, making ETH its main treasury reserve asset.

How much Ethereum has Bitmine staked?

Bitmine also said it has staked 4,712,917 ETH, valued at about $10.3 billion using the same $2,191 ETH price. That means more than 89% of its 5.28 million ETH position is now staked.

Lee said annualized staking revenue has reached $289 million. He also said projected staking rewards could reach $324 million a year if Bitmine fully stakes its ETH through MAVAN and partner platforms, using a 2.80% seven-day annualized yield.

Additionally, Bitmine launched MAVAN, its Made in America Validator Network, as an institutional-grade staking platform. The company said the platform was first built for its own Ethereum treasury but may later serve institutions, custodians and ecosystem partners.

Earlier crypto.news coverage reported that Bitmine had already staked 4,712,917 ETH as of May 10, making it the largest ETH staker among public companies globally. That report also said the firm’s total crypto, cash and equity holdings stood at $13.4 billion at the time.

What is the wider Ethereum market context?

Bitmine remains the largest Ethereum treasury and the second-largest global crypto treasury behind Strategy, according to the company’s latest statement. The firm also held 202 Bitcoin, $685 million in cash, a $200 million Beast Industries stake and an $83 million Eightco stake.

The update comes while Ethereum faces wider market pressure. crypto.news reported that ETH fell near $2,100 after Lee linked selling pressure to rising oil prices, while ETF outflows, whale deposits and higher exchange reserves added more near-term pressure.

France-listed Bitcoin treasury company Capital B announced Monday that it acquired 192 BTC for 13 million euros ($15.2 million), bringing its total holdings to 3,135 BTC.

Capital B purchased its latest tranche at an average price of about $78,948 per Bitcoin, Alexandre Laizet, Bitcoin strategy director at Capital B, said on X.

The acquisition comes a week after the company announced a $17.8 million raise from strategic investors, including Blockstream CEO Adam Back and Paris-based asset manager TOBAM. Capital B also raised $1.28 million from Back on May 4.

Capital B is one of four crypto treasury companies to publicly disclose Bitcoin purchases in May so far.

Strategy, the largest publicly traded Bitcoin holder, announced it acquired $43 million last Monday, while Strive added $33 million in BTC on May 4 and The Smarter Web Company purchased $4.9 million in BTC.

The purchase reflects continued interest in Bitcoin treasury strategies by a handful of public companies, even as Bitcoin remains well below its October 2025 all-time high.

Capital B acquired 192 BTC. Source: Capital B

Capital B shares fall after Bitcoin acquisition announcement

Capital B shares fell around 2.4% after the announcement Monday and traded at about 0.62 euros at the time of writing.

The company’s shares are down 17% year-to-date and more than 68% over the past year, according to data from Yahoo Finance. 

Capital B shares price in euros, 1-year chart. Source: Yahoo Finance.

Capital B ranks as the 25th-largest Bitcoin treasury firm by holdings and as Europe’s second-largest following Germany’s Bitcoin Group SE, which holds 3,605 BTC, currently worth about $277 million, according to BitcoinTreasuries data. 

Related: Strategy’s Bitcoin engine faces $28B STRC ceiling: Delphi Digital

Some Bitcoin treasury firms turn defensive amid downturn

Other Bitcoin treasury companies are seeking to reduce the balance sheet risks associated with Bitcoin, which is currently down 39% from its $126,198 all-time high.

On April 24, Nasdaq-listed Bitcoin treasury company Nakamoto announced an actively managed Bitcoin derivatives program aimed at generating recurring income from volatility and hedging part of its corporate BTC holdings against downside exposure. The company reported it sold 284 Bitcoin (worth about $20 million at the time) in a March 30 filing. 

In February, Genius Group reported the sale of its remaining treasury holdings of 84 BTC for about $5.7 million to repay an $8.5 million debt obligation.

Magazine: Bitcoin vs. the quantum computer threat — Timeline and solutions (2025–2035)  

Tether’s undisclosed LemFi investment wires USDT into African and Asian remittance corridors, swapping slow SWIFT transfers for near‑instant, low‑fee stablecoin settlement.

Tether has announced a strategic investment in LemFi, a UK‑headquartered cross‑border financial platform used by African and Asian diaspora communities to send money home from the UK, US, Canada, and Europe. According to coverage from Foresight News relayed via ChainCatcher, the deal will see USDt embedded as a core settlement asset in LemFi’s main remittance corridors into Africa and Asia, although financial terms of the transaction were not disclosed.

USDT to sit at the core of LemFi’s remittance rails

LemFi already offers multi‑currency wallets and instant transfers to more than 30 countries, handling KYC, real‑time FX, and instant disbursement through its own infrastructure and partners. By wiring USDt into those existing pipes, the company can route transfers over stablecoin rails under the hood, while end users continue to interact in local currencies like naira or shilling on the front end.

For Tether, the LemFi deal is another step in a deliberate strategy to push USDT into high‑friction payments use cases, after earlier investments in t-0 Network and other settlement platforms aimed at turning international payments into something that “functions like local transactions.” In announcing a prior emerging‑markets investment, CEO Paolo Ardoino said such deals “underscore Tether’s commitment to advancing financial inclusion and economic empowerment in underserved regions,” language that clearly maps onto the LemFi expansion.

Replacing SWIFT’s delays with stablecoin settlement

The core pitch behind the partnership is that USDt can collapse settlement times in major remittance corridors from days to seconds while cutting costs, a model already demonstrated in other USDT‑powered payment deployments where SWIFT wires were replaced with stablecoin payouts. In those case studies, businesses reported settlement dropping to under one minute and payment costs falling by roughly 45%, benefits that are particularly acute for low‑income migrants sending frequent, small‑ticket transfers.

This latest move also fits into Tether’s broader attempt to use its more than $185 billion USDT float and roughly $15 billion in annual profit to build a surrounding ecosystem of real‑world infrastructure, ranging from payments networks to telecoms and even metals exposure. As Ardoino recently put it in an interview reported by Fortune, Tether is using its balance sheet to build “a business ecosystem that can survive a future breakdown” in legacy financial rails, effectively betting that stablecoins will become the default settlement layer for both consumer remittances and institutional flows.

From the perspective of the African and Asian diaspora that LemFi serves, integrating USDt into the back end of remittances could mean fewer failed transfers, more transparent FX, and faster access to funds back home, even if many users never directly touch a stablecoin wallet. If the LemFi integration scales, it will add yet another live corridor where USDT is not just a trading chip on exchanges but a working replacement for SWIFT‑era cross‑border banking.