Weekly Crypto Regulation Roundup: From Samourai’s Courtroom Reckoning to Mamdani’s Win and Lummis’ Bitcoin Push

The past week in crypto regulation has presented a dynamic landscape, marked by significant legal battles, evolving political stances, and critical policy debates that underscore the ongoing intersection of digital assets with traditional finance and governance. From the serious legal challenges faced by the founders of Samourai Wallet to the potentially impactful mayoral victory of Zohran Mamdani in New York City and Senator Cynthia Lummis’s renewed advocacy for a U.S. Bitcoin Reserve, the global conversation around digital assets continues to deepen and diversify.

Samourai Wallet Founders Face Legal Scrutiny and Potential Prison Sentences

The co-founders of Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, are confronting severe legal repercussions as U.S. prosecutors seek maximum five-year prison terms. They stand accused of operating an unlicensed money-transmitting business and facilitating extensive money laundering. Authorities contend that Rodriguez and Hill actively “solicited and encouraged criminals” to utilize Samourai’s crypto-mixing services to obscure illicit proceeds.

This case is a pivotal moment in the government’s widening crackdown on privacy tools within the cryptocurrency space. It has ignited concerns among developers and advocates of open-source software, who fear that merely building technology enhancing anonymity could render them targets for enforcement. The Department of Justice’s approach increasingly equates privacy-enhancing services with financial crime, signaling a broadened regulatory scope that now extends beyond centralized exchanges to the very developers of underlying code.

Zohran Mamdani’s NYC Mayoral Victory and Shifting Crypto Oversight

In New York City, the mayoral victory of Zohran Mamdani is poised to influence the city’s cryptocurrency policy. Known for his support of consumer protections following major industry collapses like FTX and Terra, Mamdani has also expressed backing for a moratorium on proof-of-work mining that relies on on-site energy generation.

Mamdani has also proposed a crypto transaction tax, estimated to generate over $158 million annually. His win, which was accurately predicted by Polymarket traders with 92% precision, suggests an expectation among investors for a more stringent regulatory environment in the city. While New York’s economy increasingly integrates crypto, Mamdani’s stance indicates a potential prioritization of environmental and consumer concerns over unrestrained innovation in the digital asset sector.

Senator Lummis Revives Debate on a U.S. Bitcoin Reserve

In Washington, Senator Cynthia Lummis has rekindled discussions by advocating for a Strategic Bitcoin Reserve as a means to help address the escalating U.S. national debt. Lummis has described this idea as “the only solution” capable of counterbalancing the nation’s fiscal burden, arguing that Bitcoin’s long-term appreciation could bolster the national balance sheet. She has commended former President Trump’s openness to the concept and affirmed that the Treasury and White House are exploring structural options beyond traditional gold revaluation.

Such a development, though currently theoretical, would represent a historic shift, integrating Bitcoin into the U.S. sovereign financial framework for the first time. The proposal envisions a budget-neutral approach, potentially utilizing Bitcoin seized in criminal cases and other non-taxpayer-funded methods to build the reserve.

Coinbase Navigates Regulatory Challenges in Europe and the U.S.

Coinbase has faced regulatory scrutiny on multiple fronts this week. In Europe, Coinbase Europe Limited, the exchange’s Irish arm, was hit with a €21.5 million ($24.7 million) fine by the Central Bank of Ireland. This sanction was due to “critical compliance lapses” in its anti-money laundering (AML) systems. Reports indicate that between 2021 and 2022, approximately 31% of customer transactions, totaling over €176 billion, went unscreened due to coding failures.

Concurrently, in the U.S., Coinbase has urged the Treasury Department to prevent regulatory overreach during the implementation of the GENIUS Act. The exchange warned that excessive rulemaking could impede innovation and encourage talent migration offshore. Coinbase specifically advocated for the exclusion of developers, validators, and open-source protocols from regulatory classification and proposed treating payment stablecoins as cash equivalents to streamline taxation and accounting. Coinbase’s dual regulatory battles highlight its complex role bridging compliance and innovation within the evolving crypto industry.

Trump’s Solana Initiative and Post-Election Dynamics

Amidst ongoing political discourse, President Donald Trump’s crypto initiative, World Liberty Financial (WLFI), announced a significant expansion onto the Solana blockchain. This move involves strategic partnerships with Bonk and Raydium, integrating WLFI’s USD1 stablecoin into Solana’s decentralized finance (DeFi) ecosystem.

This initiative is seen as part of a broader mission to “rebuild Solana” and highlights USD1’s role as a native settlement layer for traders and creators. These partnerships suggest a renewed U.S. push to establish technological leadership in decentralized finance, even as regulatory scrutiny intensifies. The administration’s pro-crypto stance and consideration of various cryptocurrencies, including Solana, for a strategic reserve, signal a changing landscape for digital assets within U.S. policy.

The Week Ahead for Crypto Regulation

The past week has unequivocally demonstrated that cryptocurrency regulation is now a central topic in mainstream political and economic discussions. From the progressive regulatory posture taking shape in New York City to Washington’s ambitious proposals for Bitcoin integration into national reserves, and Europe’s tightening compliance measures, the scope and impact of digital asset governance are expanding.

As policymakers, developers, and traditional financial institutions continue to engage with and respond to the unique characteristics of cryptocurrency, a key question for the coming months will be how crypto’s foundational ideals of decentralization and open innovation can adapt and thrive within the realities of state power and evolving financial governance frameworks.