Regulatory Battles and Project Progress (Issue 1 · Week 29, 2026)

01Event Overview

On July 11, 2026, the market value of the Robinhood Chain soared to $200 million due to the CASHCAT cat coin incident, highlighting the competition for user traffic in the cold launch phase of compliant chains. During the same period, Circle faced criminal charges for refusing to freeze $380,000 in fraudulent assets, triggering a compliance crisis surrounding stablecoins. The transition period for the EU’s MiCA regulations ended on July 1, leading to the closure of platforms such as AscendEX and subsequent withdrawals by users, thereby intensifying regulatory pressure significantly.

02Course of the incident

• [2026-07-09] Wisconsin and New York State filed criminal charges against Circle for refusing to freeze fraudulent assets, sparking a fierce debate over the technical architecture of stablecoins and their legal obligations.
• [2026-07-10] The implementation of the EU’s MiCA regulations has fueled the rise of compliant stablecoins. Circle’s EURC received a license in France, with both on-chain activity and the number of new addresses reaching four-year highs.
• [2026-07-10] Gate US obtained an additional currency transmission license in Florida, bringing its total state-level licenses to 36 and expanding its compliance footprint to 47 jurisdictions across the United States.
• [2026-07-11] While Robinhood Chain focused on RWA, the CASHCAT token took the lead. The company’s CEO quickly changed strategy to take advantage of the situation, using cost-free traffic to push the token’s market value up to $200 million.
• [2026-07-13] Progmat, a subsidiary of Mitsubishi UFJ, migrated $3 billion worth of securities tokens to Avalanche, utilizing subnet architecture to balance regulation and efficiency—marking a shift from pilot projects to actual deployment of RWA solutions.
• [2026-07-15] Pump.fun generated millions in daily revenue but struggled to cope with the release of 82.5 billion tokens. The repurchase rate dropped sharply from 100% to 50%, sparking controversy. Compliance issues and its ties to gambling operations added pressure during the bear market.

03Impact Analysis

04Impact Analysis

05Market Prices

Stricter and looser regulatory requirements directly reshape the logic behind asset pricing. On July 13, 2026, the CASHCAT token on the Robinhood Chain took advantage of its initial launch to see its market value soar to $200 million, demonstrating the extreme amplifying effect of traffic on specific asset prices under a compliant framework. On the same day, the market size for tokenized RWA assets focused on by LayerZero and Centrifuge reached $33 billion, reflecting institutional capital’s recognition of the value of compliant underlying assets. However, regulatory pressures also led to selling pressure—on July 15, 2026, Pump.fun faced the unlocking of 82.5 billion tokens, with the buyback ratio dropping sharply from 100% to 50%, exacerbating downward market risks.

06Regulatory Responses

Global regulation entered a phase of strict enforcement, leading to increased differentiation. On July 1, 2026, the transition period for the EU’s MiCA regulation came to an end. The head of AMLA warned that large-scale withdrawals by customers would place virtual asset service providers under severe anti-money laundering pressures, prompting regulators to enhance their analytical capabilities. On the same day, AscendEX was shut down for failing to meet MiCA standards, leaving users facing manual audits and frozen funds. In the United States, on July 9, 2026, Wisconsin and New York State filed criminal charges against Circle for refusing to freeze fraudulent assets, triggering a compliance crisis for stablecoins. Meanwhile, compliance access accelerated—on July 10, 2026, Gate US obtained a license in Florida, expanding its compliant operations to 47 U.S. jurisdictions; Polymarket applied for an FCM license in the U.S. to offer margin trading in a compliant manner.

07Ecological Impact

The industry is accelerating its transformation from an unregulated environment to one governed by formal rules. On July 9, 2026, giants like Samsung acquired licensed institutions at low costs to speed up the compliance of crypto infrastructure. On July 10, 2026, the EURC token issued by Circle received approval in France, with both on-chain activity and the number of new addresses reaching four-year highs, contributing to the rise of compliant stablecoins. On July 13, 2026, Progmat, part of Mitsubishi UFJ, migrated $3 billion worth of securities tokens to Avalanche, marking a shift of RWA applications from pilot projects to actual use cases. In Japan, on July 13, 2026, SBI invested nearly $500 million in building a full-chain ecosystem, with Lawson piloting stablecoin payments to create a zaibatsu-level compliant framework. On July 14, 2026, Optimism and OKX discussed blockchain compliance and risk management strategies to foster its development as financial infrastructure.

08Key points to watch going forward

1. Runaway withdrawal risks post-EU MiCA transition: The 18-month grace period ended on July 1, 2026. It is necessary to monitor whether virtual asset service providers face pressure from large-scale withdrawals. If signs of liquidity crunch emerge, regulators may enhance their anti-money laundering analysis capabilities.

2. Regulatory battles over stablecoin freezes: Wisconsin and New York State have filed criminal charges against Circle. It is important to keep an eye on court rulings and any adjustments to Circle’s technical architecture. If the freezing mechanism is forced to be restructured, it could lead to disputes over the legal obligations associated with stablecoins.

3. Implementation of RWA tokenization in Japan: Progmat has migrated $3 billion worth of securities tokens to Avalanche. Future migration volumes and the performance of the subnet architecture in balancing regulation and efficiency need to be monitored to assess the actual effectiveness of compliant tokenization.

4. Progress in exchange licensing expansion: With its new license in Florida, Gate US now operates legally in 47 jurisdictions across the U.S. It is essential to continue tracking the progress of its applications in remaining jurisdictions as well as changes in its compliance-related operating costs.

09Related Reads

1. “Half a year of preparation for compliance, yet a cat triggers a $200 million market value drop”
2. “Refusing to freeze assets worth $380,000 leads to criminal charges; stablecoin compliance crisis erupts”
3. “Compliance failures result in shutdown: AscendEX’s withdrawal process stuck in manual review hell”
4. “MiCA’s implementation sparks a compliance wave: EURC’s on-chain data reaches four-year high”
5. “Gate US gets approval from Florida; U.S. compliance coverage expands to 47 jurisdictions”
6. “$3 billion in assets brought onto the blockchain: Japan sets new standards for compliant tokenization”
7. “Earning millions daily can’t overcome selling pressure; PUMP’s reduced buybacks raise compliance concerns”
8. “$33 billion RWA market: LayerZero and Centrifuge tackle the paradox of compliance speed”
9. “End of MiCA’s transition period: User withdrawals trigger compliance crisis”
10. “Polymarket applies for U.S. FCM license to offer compliant margin trading”
11. “Valuation cuts by 90%; giants rush to acquire compliance licenses amid bear market”
12. “Key figures back it up, SBI invests $500 million, Rosen opens doors: Japan seizes compliance benefits first”
13. “Optimism and OKX discuss blockchain compliance and risk control”