Crypto Crackdown: US Sanctions Iranian Exchange, CFTC Eases Rules, SEC Greenlights Tokenized Stocks

US authorities on Thursday imposed sanctions on Iranian cryptocurrency exchange BitBank, alleging it processed Bitcoin payments from ships transiting the Strait of Hormuz. The Treasury Department’s Office of Foreign Assets Control (OFAC) claimed that the Hormuz Safe Marine Services Authority used BitBank to funnel payments to the Islamic Revolutionary Guard Corps (IRGC) as of June. According to the Treasury, this operation is part of a broader network orchestrated by Iranian financier Babak Zanjani to move hundreds of millions of dollars in Bitcoin to the IRGC.

In a separate development, the Commodity Futures Trading Commission (CFTC) broadened its relief for providers of passive trading software. This move aims to reduce regulatory burdens for certain automated trading tools that do not actively manage client funds or execute discretionary trades. Meanwhile, the Securities and Exchange Commission (SEC) approved a temporary framework allowing the trading of tokenized US stocks onchain. This pilot program could pave the way for greater integration of traditional equities with blockchain technology, potentially enhancing liquidity and accessibility.