Coinbase has pulled its support for a major Senate cryptocurrency bill due to unresolved policy issues, particularly regarding tokenized equities and DeFi. The Senate Banking Committee postponed a markup hearing as concerns about the bill's provisions and timing pressures prompted Coinbase CEO Brian Armstrong to voice his opposition.

The Federal Reserve has rescinded its 2023 policy that heavily restricted certain "novel" cryptocurrency activities. The Fed believes that similar activities with comparable risks should follow the same regulatory framework, indicating a shift towards more nuanced regulation in the crypto space.

SEC Chair Paul Atkins has announced a shift towards a more friendly regulatory approach to cryptocurrency, moving away from the previous administration's stringent policies. He plans to utilize existing frameworks to create standards for digital assets and promote innovation while ensuring investor protection. Atkins emphasizes collaboration with lawmakers to develop supportive regulations for the crypto industry.

A new U.S. Justice Department memo indicates a significant policy shift that may offer relief to cryptocurrency firms by easing enforcement actions against them. This change, contrasting with the previous administration's strict approach, focuses on prosecuting harmful practices rather than regulating the industry broadly, prompting concerns about potential misconduct among crypto platforms.