This report summarizes the key global developments in taxation and regulation within the crypto industry during the second half of February 2026.
On the tax front, the U.S. Indiana state’s Bitcoin Rights Act has been passed by both houses of the state legislature. The bill requires certain public retirement plans to provide investment options containing crypto assets, while prohibiting state and local governments from restricting individuals’ legal self-custody, use of crypto payments, mining or staking, and prohibiting the imposition of discriminatory taxes on crypto-related activities.
In terms of regulation, in the United States, a senator has launched a preliminary investigation into Binance over alleged $1.7 billion transaction; the Federal Reserve has proposed removing the reputation-risk supervisory standard to ease debanking pressure on crypto firms; the OCC has conditionally approved a national trust bank charter for Crypto.com; the SEC has reduced capital deduction requirements for broker-dealers holding payment stablecoins to 2%; and the CFTC Chairman has reaffirmed exclusive federal jurisdiction over prediction market event contracts. Elsewhere, an Indian court has asked authorities to clarify the legal status of cryptocurrencies; ESMA has warned that crypto perpetuals may be regulated as contracts for difference; and Austria’s FMA has barred KuCoin’s EU exchange from onboarding new customers or launching new products during a rectification period.
The Indiana General Assembly has passed Bill No. 1042, also known as the Bitcoin Rights Act, and has sent it to the governor for signature. The bill has cleared both the House and the Senate and completed final reconciliation between the two chambers. It now awaits the governor’s approval. If signed, the relevant provisions will take effect on July 1, 2026. The legislation provides that, except for actions taken by financial regulatory authorities, state and local governments may not prohibit individuals from using cryptocurrency for lawful payments, holding self-custodied wallets, or engaging in mining or staking activities. The bill also prohibits the imposition of discriminatory taxes on crypto-related activities that are not equally applied to other financial transactions. Access the original document.
U.S. Senator Richard Blumenthal initiated a preliminary investigation into Binance, alleging that the exchange processed approximately $1.7 billion in transactions involving sanctioned Iranian entities and supported Russia’s “shadow fleet” oil trade to evade sanctions. Binance denied the allegations, stating that it has strengthened its compliance measures and reported suspicious activities, and that its exposure to sanctioned and high-risk jurisdictions has decreased by approximately 97% since January 2024. Previously, Binance had faced scrutiny and fines over anti-money laundering and sanctions compliance issues. Access the original document.
While hearing a case concerning the freezing of bank accounts allegedly linked to cryptocurrency transactions, the Odisha High Court in India noted that the current legal and regulatory status of cryptocurrencies in India remains unclear, making it difficult to definitively determine their legality and regulatory classification. The Court therefore required the relevant Superintendent of Police to appear in person and directed that the local cybercrime head or an official familiar with blockchain technology, digital wallets, and the regulatory framework for virtual digital assets assist in providing clarification. The Court also instructed the attending officials to report on the current legal status of cryptocurrencies and whether any provisions prohibit their holding or trading. Access the original document.
The European Securities and Markets Authority (ESMA) issued a public statement noting that derivatives offering leveraged exposure to crypto assets, especially those marketed as “perpetual futures” or “perpetual contracts,” are highly likely to meet the definition of contracts for difference (CFDs) and therefore must comply with the EU’s existing CFD product intervention measures. These measures include leverage limits, mandatory risk warnings, margin close-out requirements, negative balance protection, and a ban on monetary and non-monetary incentives. ESMA emphasized that a product’s commercial name is not determinative and that firms must carefully assess its actual characteristics to ensure compliance. Click here to read the original article. Access the original document.
The Federal Reserve has issued a proposal for public comment to permanently remove “reputation risk” from its bank supervisory framework and instead focus on material financial risks. The proposal follows regulatory adjustments made in June 2025 and aims to address the issue of “de-banking.” Federal Reserve Vice Chair Michelle Bowman stated explicitly that closing accounts based on political views, religious beliefs, or lawful but unpopular businesses is illegal. If enacted, the proposal is expected to alleviate banks’ reluctance to engage with crypto enterprises arising from regulatory concerns. Access the original document.
The Office of the Comptroller of the Currency (OCC) has granted preliminary conditional approval to Foris Dax National Trust Bank, a subsidiary of Crypto.com, to establish a national trust bank. The approval will allow the entity to operate as a qualified custodian under the U.S. federal regulatory framework, subject to OCC supervision, and to provide services including digital asset custody, staking, and trade settlement. Once all preconditions are satisfied and final authorization is obtained, the bank may commence operations. The OCC has previously approved several crypto-related trust banks. Click here to read the original article. Access the original document.
Because key roles responsible for anti-money-laundering, counter-terrorist-financing and financial sanctions compliance have become vacant or are held by unsuitable personnel, the Austrian Financial Market Authority (FMA) has imposed a new-business ban on KuCoin EU Exchange GmbH, prohibiting it from carrying out any new business. During the remediation period, the company is forbidden from establishing any business relationships with new clients, or from entering into new contracts/launching new products within existing relationships. KuCoin EU obtained MiCA authorization in November 2025, permitting it to operate across the EU. Access the original document.
The U.S. Securities and Exchange Commission (SEC) has clarified that when broker-dealers hold stablecoins used for payments, such stablecoins may be treated as “ready market” assets, with only a 2% deduction from their asset value required in the calculation of net capital. This measure allows 98% of the stablecoin’s value to be directly included in net capital, substantially reducing the capital cost for broker-dealers holding stablecoins. Access the original document.
The Chair of the U.S. Commodity Futures Trading Commission (CFTC) reiterated that an amicus curiae brief has been submitted to the U.S. Court of Appeals for the Ninth Circuit, expressly opposing state government overreach in the Crypto.com case. He also reaffirmed that the CFTC holds exclusive jurisdiction over prediction markets (event contracts), which have been regulated by the CFTC for more than 20 years. If the CFTC’s position is upheld, state-level gambling prohibitions would be unlikely to apply directly to web3 prediction market platforms such as Crypto.com, thereby helping to reduce legal risks associated with interstate operations. Click here to read the original. Access the original document.
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