Russia’s State Duma has completed the final readings that bring the country’s long-awaited crypto regulatory bill one step closer to becoming law, approving draft legislation that would create a comprehensive framework for digital assets and define how regulated intermediaries can operate.

According to official parliamentary records, lawmakers approved bill No. 1194918-8, titled “On Digital Currency and Digital Rights,” in its second and third readings on Tuesday. The measure is now set to move to Russia’s upper house, the Federation Council, and then to President Vladimir Putin for signature before it can take effect.

Key takeaways

• The bill would establish rules for a regulated crypto market, including exchanges, brokers, asset managers, and custodians.
• The Bank of Russia would be given wide authority to supervise the framework and decide which crypto assets can be offered via licensed intermediaries.
• Crypto use for payments inside Russia would remain prohibited, while the bill allows digital assets to be used in foreign trade operations.
• Non-qualified investors would face purchase and cross-border transfer limits, with higher thresholds for qualified investors.
• If enacted, most provisions would begin on Sept. 1, 2026, with a compliance transition period lasting until July 1, 2027.

Bank of Russia oversight takes center stage

A central feature of the proposed framework is the role assigned to the Bank of Russia. Under the bill, the central bank would oversee the regulated market, including the power to determine which crypto assets are eligible to be offered through licensed intermediaries and to publish implementing regulations.

The bill also lays out five categories of participants that would operate within the new rules: crypto exchanges, brokers, asset managers, custodians, and exchange service providers. By defining who can buy, sell, hold, and exchange crypto assets, lawmakers aim to formalize the market structure and reduce reliance on informal or unlicensed activity.

For investors, the bill differentiates between “qualified” and “non-qualified” participants. Non-qualified investors would be subject to an annual ceiling of 300,000 rubles (about $3,800) on purchases made through a single intermediary, and a 100,000-ruble annual limit on transfers abroad. Qualified investors would have annual purchase limits of 3 million rubles and annual cross-border transfer limits of 1 million rubles.

Payments at home remain blocked, cross-border use allowed

While the bill expands the legal perimeter around crypto markets, it also preserves a key restriction: it would continue to ban the use of crypto assets to pay for goods and services within Russia.

At the same time, lawmakers chose to make room for digital assets in international commerce. The legislation would allow crypto assets to be used in foreign trade operations, aligning with Russia’s broader push to facilitate cross-border settlement alternatives outside conventional payment rails.

Timeline: broad provisions from September 2026, transition through 2027

Most of the bill’s provisions are scheduled to take effect on Sept. 1, 2026, contingent on presidential approval. A transition period runs through July 1, 2027, designed to give market participants time to adapt to the new compliance requirements.

After the transition window closes, the bill indicates that crypto transactions would need to be executed through regulated organizations. It also states that banks would have to reject transactions that do not comply with the framework laid out in the law.

Russia’s legislative push does not stop at market rules. Lawmakers are also drafting related measures, including proposals on taxation and penalties for violations. A separate tax bill has already passed its first reading, while expectations are that penalty provisions would be considered before the transition period ends.

Industry activity appears to be moving alongside the policy work. Earlier coverage from Cointelegraph noted developments involving Russia’s banking sector, including Alfa-Bank testing crypto trading.

Legal framework is not the finish line

Even if the bill becomes law, implementation would still depend heavily on the regulatory follow-through and supporting infrastructure. Olga Goncharova, head of the Digital Financial Assets and Digital Currencies Expert Center at the Association of Russian Banks, told Cointelegraph that the measure creates a legal foundation but requires “extensive follow-up regulation” before the market can function smoothly.

“The law itself is only the beginning,” Goncharova said, adding that practical effectiveness depends on mechanisms that are still being developed by the banking community together with the Bank of Russia.

According to Goncharova, the central bank plans to issue around 80 additional regulatory acts by the end of the year. These would be intended to specify how the framework operates in practice, particularly around compliance expectations for institutions and market participants.

She also pointed to work on operational infrastructure needed for a regulated environment, including development of a domestic Travel Rule system, blockchain node infrastructure, and crypto analytics tools. These elements would be important for monitoring transactions, reporting, and ensuring that regulated intermediaries can meet the requirements that come with licensing and oversight.

The broader regulatory trajectory will also need to align with licensing and supervisory expectations for custody services. Earlier Cointelegraph reporting referenced that custodians face scrutiny even under the EU’s MiCA regime, underscoring that custody regulation is typically a key test case for any emerging framework.

With the State Duma’s approval now secured, the next critical moment is whether the Federation Council and President Vladimir Putin sign the bill. Investors and market participants should watch closely for the Bank of Russia’s forthcoming regulatory acts—especially details on asset eligibility, licensing requirements, and how banks will operationalize the transaction rejection rules once the transition period ends.

Ionic Digital has secured SEC approval for its registration statement, clearing the final regulatory hurdle before its planned Nasdaq direct listing on July 28.

According to a company statement issued Monday, the digital infrastructure operator expects its Class A common stock to begin trading on the Nasdaq Global Select Market under the ticker IOND, subject to Nasdaq’s final listing requirements.

The company is entering public markets through a direct listing instead of a traditional initial public offering. Under that structure, Ionic will not issue new shares or raise fresh capital from the transaction. Existing registered shareholders will instead be able to sell their holdings on the public market once trading begins.

For many investors, the listing represents the first opportunity to trade shares received through the bankruptcy restructuring of crypto lender Celsius Network. Ionic Digital was created in January 2024 to hold Bitcoin mining assets transferred from the Celsius estate after a U.S. bankruptcy court approved the lender’s restructuring plan.

Former Celsius creditors became shareholders after receiving about 37 million Class A shares under the bankruptcy plan. As previously reported by crypto.news, Celsius later continued distributing funds through additional payout rounds, while some creditors also became eligible to receive equity in Ionic Digital.

Unlike a conventional IPO, a direct listing does not involve underwriters setting an offering price. Instead, Nasdaq determines the opening price using buy and sell orders collected before trading begins. Ionic also stated in earlier SEC filings that direct listings can experience higher price volatility because existing shareholders gain a public venue to sell shares without the price stabilization mechanisms commonly associated with underwritten offerings.

Ionic expands beyond Bitcoin mining

Although Ionic began as a Bitcoin mining company, it has increasingly repositioned itself around digital infrastructure supporting artificial intelligence and high-performance computing workloads.

Earlier this month, the company filed its Form S-1 registration statement with the SEC. Before pursuing the listing, Ionic completed a roughly $400 million private equity financing that the company said would fund general corporate purposes, including continued investment in digital infrastructure and data center development.

According to earlier SEC filings, the financing implied a pre-money equity valuation of approximately $2 billion. CEO Andy Stewart previously said the funding strengthened the company’s capital base as it continued building its digital infrastructure platform.

The company’s strategy now extends well beyond cryptocurrency mining. Its Cedarvale campus in Ward County, Texas, has become the centerpiece of that transition after portions of the site were repurposed to support AI and high-performance computing infrastructure.

Earlier company disclosures said the Ward County property includes approximately 234 megawatts of installed capacity. Mining equipment at the site was decommissioned during late 2025 as Ionic prepared the facility for AI infrastructure under a long-term agreement with AI cloud provider Nscale.

According to previous company filings, the lease spans 126 months and is expected to generate about $1.95 billion in contracted revenue, with additional expansion possible if further capacity receives regulatory approval.

During the first quarter of 2026, Ionic reported $44 million in digital infrastructure leasing revenue, while Bitcoin mining revenue declined 82% year over year to $7.4 million from $41.1 million.

The company has also stated that revenue from AI and other high-performance computing services is eventually expected to exceed revenue generated through Bitcoin mining.

Mining companies are transitioning to AI

Ionic’s repositioning comes as several publicly traded Bitcoin miners invest more heavily in AI-focused data centers while mining profitability remains under pressure.

As previously reported by crypto.news, Bitcoin miners generated about $1.086 billion in revenue during May, the strongest monthly performance since January. However, lower Bitcoin prices later reduced mining profitability as hashprice declined and network hashrate eased, prompting some operators to scale back less efficient mining equipment.

Industry participants have increasingly turned toward AI infrastructure because many mining companies already control large power supplies, cooling systems and data center facilities that can be adapted for high-performance computing workloads.

IREN has followed a similar strategy. Earlier this year, the company completed its acquisition of Spain-based Nostrum Group, adding roughly 490 megawatts of secured grid-connected power to support European AI cloud expansion. IREN also reported that AI cloud revenue increased during its latest quarter even as Bitcoin mining revenue declined.

HIVE Digital and Bitdeer have also announced projects converting existing mining facilities into AI computing infrastructure, further illustrating how miners are seeking additional revenue streams beyond cryptocurrency production.

For Ionic, however, the upcoming Nasdaq debut represents more than another mining company entering public markets. 

It also provides former Celsius creditors with a long-awaited opportunity to trade shares received through one of the cryptocurrency industry’s largest bankruptcy restructurings while giving investors a chance to evaluate a business increasingly focused on AI infrastructure rather than Bitcoin mining alone.

US lawmakers used a House Agriculture Subcommittee hearing this week to press the Commodity Futures Trading Commission (CFTC) on oversight of sports event prediction market platforms—while also pointing to a pending Senate effort, the Digital Asset Market Clarity (CLARITY) Act, as a potential source of clearer authority and funding.

At the hearing titled “Examining Customer Protections and Market Integrity in Sports Event Prediction Markets,” Carl Kennedy, a partner at law firm Katten Muchin Rosenman, argued that the CFTC may be unable to fully regulate and enforce rules for rapidly expanding prediction markets, citing staffing constraints. Kennedy said the CLARITY Act could expand the agency’s jurisdiction beyond digital assets and help it address the “explosive growth” of prediction markets.

Key takeaways

• Carl Kennedy told the House Agriculture Subcommittee that the CFTC is likely “short-staffed” to effectively oversee prediction market platforms.
• Kennedy said the CLARITY Act could grant the CFTC additional authority covering not only digital assets but also the fast-growing prediction market sector.
• CFTC Chair Michael Selig has argued the agency has “exclusive jurisdiction” over event contracts on major prediction platforms, treating them as “swaps.”
• State regulators have increasingly challenged that federal position, including through lawsuits and court disputes involving platforms such as Kalshi and Polymarket.
• Senate supporters of the CLARITY Act expect the bill text to be released soon, but details on prediction market provisions were not publicly available as of Tuesday.

Why lawmakers are focusing on prediction market oversight

The hearing, chaired around customer protections and market integrity in sports event prediction markets, highlighted how the legal and regulatory question has shifted from whether prediction platforms can operate to who is responsible for regulating them.

Kennedy’s core point was that even if the CFTC has jurisdiction, it may not have the resources to supervise new and complex markets at the pace they are growing. He suggested that an expanded mandate under the CLARITY Act would need to be paired with additional capacity so the agency can handle oversight and enforcement across cash markets and crypto as well as prediction markets.

“With additional resources… to address these new asset classes in the cash markets and crypto… as well as to deal with the explosive growth of prediction markets, I think that the CFTC certainly should receive additional resources,” Kennedy said during the Tuesday hearing.

The subcommittee discussion also reflected that prediction markets—often built on event contracts linked to real-world outcomes—have become a regulatory stress test for existing derivatives rules, especially as platforms attract broader participation.

The CFTC’s “exclusive jurisdiction” position under scrutiny

Legal and regulatory experts at the hearing referenced the CFTC’s approach under Chair Michael Selig, who was confirmed by the Senate in December and is the only Senate-confirmed member heading the commission in a leadership panel that would normally include five commissioners.

Since taking the role, Selig has taken the position that the CFTC has “exclusive jurisdiction” over prediction market companies. The argument is that the event contracts on these platforms fall under the CFTC’s authority because they can be classified as “swaps.”

This stance has drawn criticism—particularly from Democratic senators—who have described it as an “assault” on state authority to regulate prediction markets.

That federal-versus-state tension has produced a growing body of litigation. Some states have pursued lawsuits against platforms including Kalshi and Polymarket over what they see as state-level sports betting concerns.

State court clashes and the path toward the Supreme Court

One recent flashpoint involved a dispute where the CFTC chair’s position came into direct conflict with a state court ruling. Last week, Selig ordered Kalshi to ignore a Michigan court decision, according to prior coverage, with Kalshi arguing that the directive placed it in an “impossible position” between federal and state authorities.

More broadly, experts have suggested that the legal conflict between state regulators and the CFTC could eventually end up before the US Supreme Court. That possibility centers on the same foundational question raised by lawmakers: whether the CFTC’s reading of its jurisdiction leaves room for states to regulate event contracting tied to sports and related forms of wagering.

For market participants, this matters because jurisdiction affects compliance obligations, product design decisions, and the legal risk profile of operating in different states. For consumers, it affects who sets the rules for customer protections and how those rules are enforced—particularly when the platforms operate nationwide.

What the CLARITY Act could change—and what remains unclear

Much of Tuesday’s discussion pointed toward the CLARITY Act as the most significant potential legislative change on the horizon. Republican senators pushing for a vote before August recess have indicated they expect to release the bill’s text soon.

As of Tuesday, details of how the CLARITY Act would address prediction markets, ethics provisions, and other concerns raised by lawyers were not yet public.

However, earlier reporting indicates there is active political pressure to shape the bill’s scope. In June, gambling industry groups petitioned the Senate to add language to CLARITY that would explicitly prohibit event contracts tied to sports and casino-style gaming. Separately, reports cited by earlier coverage said the White House had confirmed that the Trump administration agreed to ethics provisions described as comprehensive, while also accommodating Democrats’ concerns.

That mix—requests for tighter boundaries around wagering-linked event contracts alongside broader ethics requirements—underscores that CLARITY is not only about regulatory authority for digital assets. Kennedy’s remarks at the hearing framed the bill as potentially relevant to prediction markets as a category, particularly in relation to customer protections and market integrity.

For traders, platform operators, and state regulators, the immediate watch item is the CLARITY Act’s released text and how it addresses the core jurisdiction conflict: whether it expands and clarifies federal oversight for event contracts, and whether it limits or displaces state enforcement where prediction markets intersect with sports wagering. Until the bill language is published, the questions raised in court and in Congress—about who regulates, who enforces, and how resources match the scale of these markets—are likely to keep escalating.

Balaji Srinivasan’s Network School, a community of “digital nomads,” is eyeing a new campus in Kazakhstan after its Forest City campus had its business license revoked over alleged premises-use violations. 

A memorandum of understanding was signed between Kazakhstan’s Minister of Digital Development, Innovation and Aerospace Industry, Zhaslan Madiyev and Srinivasan to establish the first Network School campus in Kazakhstan, according to a statement from the ministry. 

The Kazakhstan agreement gives the Network School a potential new base after its Johor operation was ordered to cease operations effective Wednesday. Kazakhstan has been positioning itself as an emerging technology hub, including plans for Central Asia’s first “crypto city” in Alatau. 

“Ironically, this whole drama with Balaji literally validated the network state thesis,” said Dragonfly Capital managing partner Haseeb Qureshi. “The whole idea of a network state is taking a dense group of talent and capital, and collectively negotiating with states. The Malaysia drama set up Balaji to negotiate better terms with another state to copy and paste the network there. “

“Our new campus will become a haven for global techno-optimism, with expedited visas, streamlined redomiciliation, and active recruitment of talent,” Srinivasan said Tuesday.

On Tuesday, the Iskandar Puteri City Council (MBIP) revoked the business license of NSO Malaysia Sdn Bhd, which operates the Network School, alleging the company breached licensing conditions and premises usage requirements. 

This led to the Malaysia Digital Economy Corporation (MDEC) announcing it is taking immediate steps to revoke the Malaysia Digital status of NSO Malaysia, which requires companies under the program to follow all local and federal laws. 

Malaysia Digital is a recognition awarded to qualified technology and digital companies, providing them with tax incentives, freedom of ownership and allowing the employment of local and foreign workers, among other incentives. 

Meanwhile, Onn Hafiz Ghazi, Chief Minister of Johor State, has urged Malaysia’s federal authorities to continue investigating whether the Network School violated immigration laws. 

Related: Balaji seeks Malaysia deal, threatens exit after Network School probe 

“This matter cannot be taken lightly, especially since Johor is a strategic entry point for the country bordering Singapore. Any weaknesses or abuse of the immigration system must be addressed promptly, firmly, and without compromise,” said Onn. 

On Friday, Srinivasan denied reports that the Network School was shutting down, claiming that it had received two notices, with one notice requiring it to “change the text of a sign” and the other regarding a coworking site, created by joining two adjacent units, that had a valid license on one side, not on the other. 

“We have a remedial period for both issues, and will remediate them shortly. But our members are otherwise unaffected,” he said. 

Cointelegraph reached out to Srinivasan and Network School for comment. 

Magazine: Binance & OKX users face $1,900 fines in Vietnam, Coinbase in China? Asia Express

Crypto companies already licensed under the European Union’s Markets in Crypto-Assets Regulation (MiCA) could still exit the market as compliance costs mount, according to Gate Europe’s CEO.

Giovanni Cunti told Cointelegraph’s Chain Reaction on Monday that stricter regulatory requirements have made it increasingly difficult for new entrants to compete and that some licensed firms could ultimately be unable to absorb the ongoing costs of operating under the framework.

“I think there are going to be quite a few more of the ones that acquire MiCA license that will not be capable to sustain the cost and the resources that are needed to carry on this business in the long term,” Cunti said.

MiCA is the EU’s regulatory framework for crypto assets. The bloc’s 18-month transition period ended on July 1, requiring crypto firms serving EU customers to operate under authorization or cease offering regulated services.

The deadline prompted several exchanges to restrict or withdraw services in parts of Europe while licensed firms began operating under the new regime. Binance, the world’s largest crypto exchange by trading volume, was not able to secure a MiCA license before the deadline.

Compliance costs reshape Europe’s crypto market

Cunti also warned that MiCA’s stricter regulatory requirements could drive some crypto startups and projects outside Europe. While the framework has strengthened investor protections, he said it leaves less room for innovation than jurisdictions with lighter rules.

He said some projects may choose to launch in jurisdictions with less restrictive regulatory requirements instead of navigating the bloc’s compliance regime.

“We may need to be prepared that some projects, possibly some important projects, may be looking at other jurisdictions with different guidelines,” he said.

Related: ESMA MiCA warning puts Binance EU service changes under scrutiny

To be sure, the number of companies authorized under MiCA continues to grow, albeit at a slower pace. 

On Friday, the European Securities and Markets Authority added 14 crypto-asset service providers (CASPs) to its register, bringing the total to 294 after adding 37 firms in ESMA’s first update following the July 1 transition deadline.

Cunti said the higher regulatory burden is reshaping Europe’s competitive landscape, but the shrunken market also presents an opportunity for those remaining crypto service providers. 

“There was a market with thousands of operators, and now there is a market with only hundreds,” Cunti said.

“So definitely there is a big opportunity for all of us. There is an ongoing migration because customers do not want to lose access to this market,” he added. 

Magazine: The British Virgin Islands are a top crypto hub no one ever talks about: Here’s why

Lending protocol Morpho has launched Morpho Midnight on Base, adding fixed-rate, fixed-term loans to its onchain credit network alongside the variable-rate markets offered through Morpho Blue. 

In an announcement sent to Cointelegraph, Morpho said the offer-driven protocol lets lenders and borrowers propose their own interest rates, maturities and other loan terms instead of relying on a protocol-defined utilization curve. Loans are issued as fixed obligations, with terms set through competing offers rather than algorithmic pool pricing. 

Predictable rates and defined maturities are standard features of traditional credit markets. However, they remain uncommon in decentralized finance (DeFi), where borrowing costs generally fluctuate based on market utilization. Fixed terms could make onchain lending more attractive to institutions and businesses that need to manage funding costs, returns and risk exposure in advance. 

A Morpho spokesperson told Cointelegraph that Midnight is live on the Base mainnet, initially supporting cbBTC and USDC across multiple maturity dates. The spokesperson said Morpho deliberately kept the launch contained as part of a progressive rollout that prioritizes security.

The spokesperson said crypto-native lenders, borrowers and curators already active on Morpho Blue had shown interest in Midnight. Several unidentified enterprises and institutions are also building products on the protocol in beta, with announcements expected as those products go live.

Morpho’s fixed-rate lending plans take shape

Morpho first outlined the fixed-rate system in 2025 under a broader “Morpho V2” roadmap. It described an intent-based, peer-to-peer marketplace where users could submit custom offers, price loans through market demand and keep capital earning variable yield until a fixed-rate offer was matched. 

In April, Morpho named the fixed-rate protocol Midnight and clarified that it was not a replacement for Morpho Blue. While Blue provides open-ended, variable-rate lending pools, Midnight externalizes loan risk, interest rate and duration to market participants. 

The protocol then released Midnight’s whitepaper and codebase in May, saying that its “offered capital” model was intended to avoid a recurring problem for fixed-rate DeFi protocols: liquidity being locked or fragmentation across maturity dates.

Related: Grayscale plans regular cash payouts from ETH, SOL staking rewards

Midnight’s launch follows Morpho’s $175 million funding round in June, led by Paradigm, Andreessen Horowitz’s a16z crypto and Ribbit Capital. At the time, Morpho said it planned to expand integrations with banks, asset managers and large platforms while adding features associated with traditional credit markets. 

Morpho’s infrastructure already underpins variable-rate lending products distributed through major crypto platforms. In April, Coinbase launched Morpho-powered USDC loans for United Kingdom users, allowing them to borrow against Bitcoin (BTC), Ether (ETH) and cbETH on Base. 

The loans carried variable rates and no fixed repayment schedule, illustrating the open-ended borrowing model that Midnight intends to complement. 

Magazine: Ethereum’s EEZ could pull other blockchains into its orbit