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The combination of significant capital invested in digital asset markets and the lack of formal clarity in the law governing cryptoassets has led market participants to largely adopt practical but untested means of structuring cryptoasset transactions in the context of existing legal frameworks. With recent price volatility and signs of distress at some cryptoasset institutions, it remains to be seen whether legislation that has been proposed to clarify the law surrounding cryptoassets will be enacted in time to address the legal and practical concerns of such market participants. Therefore, significant care must be exercised when dealing with cryptoassets in a distressed scenario.

"The Digital Asset Anti-Money Laundering Act is a direct attack on technological progress and also a direct attack on our personal privacy and autonomy. Make no mistake, while proposed as a solution to potential money laundering and terrorist financing, the bill is in fact a repudiation of liberal values and a move towards the types of surveillance and control prized by authoritarians like Vladimir Putin, Xi Jinping, and Kim Jong-un. Unfortunately, the bill cannot be improved; it can only be opposed in its entirety. Coin Center will do everything in its power to protect the rights of Americans and defeat this unwarranted attack on individual privacy and autonomy."

The Hong Kong Monetary Authority (HKMA) has issued new guidance for authorized institutions engaged in digital asset-related activities. Key areas covered include governance and risk management, segregation and safeguarding of client digital assets, delegation and outsourcing, disclosure requirements, record-keeping, reconciliation, and compliance with anti-money laundering and counter-financing of terrorism regulations.