Web3 Reg News: Converging Crypto and Legacy Finance

April 16, 2026 – April 30, 2026

The second half of April has seen varying approaches to crypto regulation with many roadblocks to progress appearing. While some are taking decisive steps to implement institutional oversight, others are encountering fierce political and operational friction or have notably not provided the regulatory clarify the market needs. Concurrently, in the United States, strict state-level crackdowns on physical crypto infrastructure contrast sharply with coordinated federal lobbying efforts for market clarity. In China, the draft of a proposed financial law makes little mention of digital assets, leaving the potential for friction between traditional and emerging financial opportunities. In North Africa, Morocco is advancing comprehensive legislation to formalize its digital asset sector, pivoting from its previous bans to establish regulated market infrastructure. Conversely, legislative momentum has stalled in Eastern Europe as Poland wrestles with political vetoes, jeopardizing its alignment with broader European standards. Across these varied developments, despite some resistance, the importance of regulation continues to be argued, whether from the side of the government or the industry as a whole, or sometimes even both.

• Lacking Clarity and Industry Advocacy

U.S. Crypto Firms Demand Action on Clarity Act 

Amidst ongoing friction between digital asset developers and traditional banking regulators, a coalition of over 100 cryptocurrency firms and trade organizations have submitted a formal letter to the U.S. Senate Banking Committee. The coalition is heavily lobbying lawmakers to advance a markup for the Digital Asset Market CLARITY Act, a piece of market structure legislation designed to establish definitive, unified federal rules for the digital asset space. The push reflects deep institutional frustration with the current fragmented regulatory environment and perceived stall tactics heavily backed by traditional banking interests. As the 2026 legislative calendar grows shorter, the industry is fiercely advocating for statutory certainty to ensure the U.S. can effectively support digital asset infrastructure safely within traditional financial guardrails.

China Concludes Consultation on Financial Law

On April 19, China concluded its one-month public consultation on the draft ‘Financial Law of the People's Republic of China’. While the draft heavily fortifies traditional regulatory infrastructure - granting financial authorities the power to access communication records, directly freeze suspected illicit funds, and impose travel bans during investigations - it gives little insight into the future treatment of the digital asset sector. Industry experts have pointed out that the draft minimally addresses the legal status of digital currencies or the distinct regulatory boundaries for crypto assets. This omission could result in friction between traditional market enforcement and the dynamic regulatory clarity required for emerging financial formats.

• Legislative Roadblocks & Enforcement

Poland Stalls on Crucial MiCA Alignment 

Efforts to modernize digital asset oversight in Poland have once again stumbled after the Polish parliament failed to overturn a presidential veto on a comprehensive crypto regulation bill. Falling short of the necessary votes to bypass the veto, the country remains without clear operational rules for digital assets. This political impasse leaves the Polish Financial Supervision Authority without the legal instruments to properly oversee the market, making Poland a glaring exception in the EU's push to adopt the Markets in Crypto-Assets (MiCA) framework. The absence of up-to-date and effective regulation poses a risk to the country’s crypto development as the potential for fraud is heightened and other countries begin to penalise those that don’t meet suitable standards.

Tennessee Enacts Strict Ban on Crypto ATMs 

Demonstrating a sharp regulatory crackdown on physical retail crypto infrastructure, Tennessee passed legislation late this month to outright ban the operation of cryptocurrency ATMs within the state. Scheduled to take effect on July 1, 2026, the law targets the physical kiosks due to escalating concerns from the Tennessee Department of Commerce and Insurance regarding their utilization in consumer fraud and illicit financial transfers: iInvestigations have found that crypto ATMs have been used by bad actors when scamming people, particularly the elderly, out of their money. By following states like Indiana in outlawing the technology, Tennessee is signaling a zero-tolerance approach to high-risk, lightly regulated fiat-to-crypto off-ramps.

• Intentions & Structural Overhauls

Morocco Advances Historic Regulatory Framework 

In a significant departure from its previous prohibition, Morocco is moving closer to establishing a formal regulatory framework for digital assets, with a comprehensive draft law currently under review by the government's general secretariat. Developing through coordination with Bank Al-Maghrib, the Ministry of Economy and Finance and the Moroccan Capital Market Authority, the legislation aims to introduce strong licensing and supervisory requirements for Crypto-Asset Service Providers. Driven heavily by recommendations from the Financial Action Task Force, the legislation prioritizes robust governance standards to mitigate risks associated with money laundering and terrorist financing. Supporting the issuance of stablecoins backed by underlying assets, as well as utility tokens, Morocco is aiming to ensure market integrity without stifling technological innovation