Crypto Today: SEC Sets Stablecoin Rules, OKX Fined $1.2M, and Genius Group Sells Bitcoin Under Court Order

SEC Unveils Stablecoin Playbook—But Leaves Algorithmic Tokens in Limbo

The U.S. Securities and Exchange Commission (SEC) dropped a regulatory bombshell on April 4, 2025, rolling out fresh guidelines for stablecoins that could reshape the sector. Dubbed “covered stablecoins,” these tokens—fully backed by fiat reserves or ultra-safe, liquid assets and redeemable 1:1 with USD—are now classified as non-securities, dodging hefty reporting rules. Think Tether’s USDT or Circle’s USDC, if they play by the book: no co-mingling reserves with operational funds, no yield or interest for holders, and zero speculative investing with backing assets.

Current stablecoin market overview. Source: RWA.XYZ

But here’s the twist: algorithmic stablecoins—like Terra’s ill-fated UST—get no love. The SEC’s definition excludes tokens pegged via code or trading bots, leaving their status murky alongside synthetic dollars and yield-bearing fiat proxies. Industry voices, pushing for onchain interest-sharing, hit a wall—the SEC’s stance is strict: stability trumps innovation for now. Crypto X buzzed with reactions, some hailing clarity for fiat-backed coins, others decrying the “algo snub” as a brake on DeFi evolution.

Malta Slaps OKX with $1.2M Fine for Past AML Slip-Ups

OKX, a MiCA-licensed crypto heavyweight, took a €1.1 million ($1.2 million) hit from Malta’s Financial Intelligence Analysis Unit (FIAU) on April 3, 2025, over anti-money laundering (AML) breaches from 2023. The fine targets Okcoin Europe, OKX’s Malta-based arm, for “serious and systematic” failures flagged during an April 2023 audit. Despite OKX’s 18-month compliance glow-up—earning it a pioneering Markets in Crypto-Assets (MiCA) license in January—the FIAU couldn’t overlook its past sins.

An excerpt from FIAU’s penalty statement to Okcoin Europe. Source: FIAU

The regulator zeroed in on a shaky 2023 business risk assessment (BRA), riddled with methodological gaps that blinded OKX to threats like mixers, privacy coins, stablecoins, and DeFi token swaps. “They couldn’t properly assess or manage money laundering risks,” the FIAU stated, painting a picture of an exchange once out of its depth. OKX stayed mum on admitting fault but told Cointelegraph, “With this chapter behind us, we’re focused on building a secure, compliant platform globally.” The fine stings doubly amid EU probes into OKX’s alleged role in laundering $100 million from February’s Bybit hack (see prior coverage)—a shadow over its MiCA crown.

Genius Group Forced to Shed Bitcoin Under U.S. Court Pressure

Singapore’s Genius Group, an AI-driven edtech firm, is offloading Bitcoin thanks to a U.S. court order tied to a messy merger spat with Fatbrain AI. On March 13, 2025, a New York District Court issued a preliminary injunction (PI) and temporary restraining order (TRO), barring Genius from buying BTC, selling shares, or raising funds. The April 3 statement revealed the fallout: with its $150 million funding lifeline cut, Genius sold 10 BTC ($82,672 each) from its 440-coin treasury—worth over $23 million—to keep the lights on.

Source: Roger James Hamilton

“Genius is minimizing Bitcoin sales but expects to downsize its treasury further if the PI persists,” the firm warned. The injunction, linked to fraud allegations against Fatbrain execs post a March 2024 merger (see prior coverage), has sparked outrage from CEO Roger Hamilton, who claims it’s pushing the firm to break Singaporean law by halting employee share payments. Once aiming for a $120 million BTC reserve, Genius now fights to preserve its crypto vision amidst legal chaos—a stark pivot from its November 2024 Bitcoin bullishness.

The Bigger Picture

Today’s crypto pulse beats with regulation and reckoning. The SEC’s stablecoin rules offer clarity for fiat-backed players but dodge thornier innovations, hinting at a cautious 2025. OKX’s Malta fine, paired with EU scrutiny, tests its MiCA-fueled ambitions, while Genius Group’s Bitcoin sell-off underscores how legal tangles can derail crypto strategies. From DeFi to BTC treasuries, these moves ripple across the market—proof that in crypto, progress and pitfalls go hand in hand.