{"id":17884,"date":"2025-11-11T15:03:04","date_gmt":"2025-11-11T14:03:04","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=17884"},"modified":"2025-11-11T15:03:04","modified_gmt":"2025-11-11T14:03:04","slug":"brazil-introduces-fresh-regulations-for-cryptocurrency-firms","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/11\/11\/brazil-introduces-fresh-regulations-for-cryptocurrency-firms\/","title":{"rendered":"Brazil Introduces Fresh Regulations for Cryptocurrency Firms"},"content":{"rendered":"

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In the realm of cryptocurrency today, a novel framework from Brazil’s central bank subjects crypto enterprises to banking-like supervision, expanding Anti-Money Laundering (AML) and foreign exchange (FX) regulations to stablecoins. Additionally, a draft crypto proposal was unveiled by a US Senate committee, and US regulatory bodies have authorized crypto funds to engage in staking.<\/p>\n

Brazil designates stablecoin transactions as foreign exchange under updated regulations<\/h2>\n

The central bank of Brazil has finalized regulations that place crypto firms under banking-like supervision<\/a>, categorizing stablecoin payments and specific self-custody wallet transfers as foreign-exchange activities.\u00a0<\/p>\n

Through Resolutions 519, 520, and 521, published on Monday, the Banco Central do Brasil (BCB) established<\/a> operational norms and authorization processes for what it designates as Sociedades Prestadoras de Servi\u00e7os de Ativos Virtuais (SPSAVs), a fresh category of licensed virtual-asset service entities functioning in the nation.\u00a0<\/p>\n

The framework broadens current regulations regarding consumer protection, transparency, and AML to include crypto brokers, custodians, and intermediaries.\u00a0<\/p>\n

The regulations will come into effect on February 2, 2026, with obligatory reporting for capital-market and cross-border transactions slated to commence on May 4, 2026.<\/p>\n

The regulations additionally encompass transfers to and from self-custodied wallets when facilitated by a service provider. This stipulates that providers need to verify the wallet owner and uphold processes that assure the provenance and destination of the assets, even if the transfer itself isn’t cross-border.\u00a0<\/p>\n

Senate Ag unveils draft crypto market legislation<\/h2>\n

The US Senate Agriculture Committee unveiled its long-anticipated discussion draft of crypto market structure legislation on Monday, bringing Congress closer to enacting regulations defining how the cryptocurrency sector will be governed.<\/p>\n

The draft featured brackets around bill sections that lawmakers are still negotiating, with Democrats indicating that the Committee lacks jurisdiction over specific elements and expressing interest in collaborating with the Senate Banking Committee to “address matters concerning noncontrolling blockchain developers and blockchain services providers.”<\/p>\n

The proposed legislation seeks to clarify the boundaries of the Commodity Futures Trading Commission and the Securities and Exchange Commission’s authority to oversee the crypto market. The Agriculture Committee holds jurisdiction over the CFTC, while the Senate Banking Committee addresses parts of the bill related to securities regulations, as it oversees the SEC.\u00a0<\/p>\n

An excerpt from a bracketed segment of the draft legislation delineates how the CFTC and SEC should collaboratively issue regulations regarding cryptocurrency. Source:\u00a0<\/em>Senate Agriculture Committee<\/em><\/a><\/figcaption><\/figure>\n

Democratic Senator Cory Booker, who worked alongside Republican Agriculture Chair John Boozman on the draft, remarked that the discussion document \u201cwould confer new authority upon the CFTC to regulate the digital commodity spot market, introduce new protections for retail consumers, and ensure the agency is equipped with the personnel and resources needed to oversee this expanding market.\u201d<\/p>\n

US permits crypto ETFs and trusts to gain staking rewards<\/h2>\n

The US Internal Revenue Service (IRS), the nation\u2019s tax-collection agency under the Department of the Treasury, has revised its guidelines<\/a> for cryptocurrency exchange-traded products (ETPs) to incorporate a safe harbor for trusts to stake digital tokens.<\/p>\n

Treasury Secretary Scott Bessent stated in a Monday X post that the agencies released<\/a> guidance providing crypto ETPs “a defined pathway to stake digital assets and distribute staking rewards to their retail investors.\u201d<\/p>\n

According to the guidelines available<\/a> on the IRS website, federal agencies would permit crypto trusts to engage in staking, provided they are listed on a national securities exchange, possess only cash and \u201cunits of a single type of digital asset,\u201d held by a custodian, while mitigating specific risks for investors.<\/p>\n

\u201cThe effect on staking adoption should be substantial,\u201d noted<\/a> Bill Hughes, senior legal counsel at Consensys, in a Monday X post.<\/p>\n

\u201cThis safe harbor offers much-needed regulatory and tax clarity for institutional instruments like crypto ETFs and trusts, enabling them to engage in staking while remaining compliant,\u201d Hughes mentioned. \u201cIt effectively eliminates a significant legal hurdle that had deterred fund sponsors, custodians, and asset managers from integrating staking yield into regulated investment products.\u201d<\/p>\n

The guidance followed the US Securities and Exchange Commission (SEC) granting approval in September for generic listing standards<\/a>, paving the way for the approval of crypto exchange-traded funds. The IRS and Treasury referenced the SEC rule change as part of the updated guidance.<\/p>\n