Elliptic

🇺🇸 The GENIUS Act went from executive order to signed law in six months, without a crisis forcing it. That's almost unheard of in Washington. Elliptic's VP of Strategic Advisory Peter Phelan spent years at the Treasury and ran risk and controls at Citi. In his new piece, he argues that digital assets are changing how the US regulates. Specifically, rules are giving way to outcomes, periodic validation is giving way to continuous monitoring and agencies that used to work in silos are starting to coordinate. Companies handling cryptoassets in any capacity can stay ahead by building #compliance programs for that new way of regulating. https://hubs.la/Q04rkR2z0

🏦 A bank doesn't need a separate compliance playbook to manage stablecoin risk. By and large, stablecoins map to risk categories you already assess every day. Our new article breaks down how banks should approach stablecoin compliance: https://lnkd.in/exvK99xy

A7A5 has failed. The ruble stablecoin, backed by a sanctioned Russian state bank, moved over $100 billion evading Western sanctions in its first year. Today, it's down 96%. While its smart contracts continue to function, the token is only useful if it can be converted. When the US, UK and EU sanctioned the network behind A7A5, the token began carrying a visible sanctioned history. Mainstream exchanges screen every deposit, and blockchain analytics make those funds visible, after which they can be frozen or blocked. A7A5 itself may be unfreezable, but that doesn't matter if its entry or exit points don't work. https://hubs.la/Q04r6D080

Elliptic is working with the on-chain confidentiality protocol Zama to bring risk screening to its confidential financial applications. The first is a confidential USDC vault that has already drawn tens of million of dollars in deposits. Zama uses fully homomorphic encryption (FHE) to keep transaction amounts private on public blockchains while keeping activity auditable. Elliptic screens wallets for risk so high-risk actors are kept out at the point of entry, without exposing balances, amounts or other sensitive financial information. The result is confidential finance that is compliant by design. Institutions get the risk controls they expect from regulated markets, and users keep the confidentiality that makes on-chain finance viable for real financial activity. https://lnkd.in/eVgBtSGa

The latest edition of Elliptic Connect is here. 📩 This month's highlights: 📖 Our new Typologies for Financial Institutions report: how crypto-related financial crime reaches institutions through everyday customers, and why managing it means extending your existing risk framework, not building a separate one. 🚀 Continuous Monitoring is here, cutting time on manual rescreening and alert triage by up to 75%. 🏆 Our Founder and Chief Strategy Officer, James Smith, has been named to Stablecon's Stablecoins Most Influential 2026. 📖 Plus from our team: AI accountability in compliance, WebX Tokyo and Japan's readiness for on-chain finance, Bitcoin ATM scams, and the UK's final stablecoin rules. Subscribe now to receive every edition as soon as it's available!

Japan built its crypto regulatory foundation early, and it shows. At WebX 2026 (July 13-14), our APAC Head Policy and Regulatory Affairs June Lau found a market past the basic questions and onto the harder ones: how stablecoins connect to existing payment rails, where tokenization actually delivers value and whether institutions are using the blockchain analytics that foundation requires. Her read: the framework is largely in place. Whether the controls have kept pace is the open question. Read her full take from WebX: https://hubs.la/Q04qrJ980

Crypto ATM exposure can reach a bank in two ways: 1) On the fiat side, a scam victim usually shows up as an unusual cash withdrawal at the branch, which trained staff can spot. 2) On the blockchain side, crypto ATM operators are identifiable on-chain. A bank can screen its crypto-active customers and counterparties for exposure to crypto ATMs, and help trace the funds once law enforcement takes a case. Our new article covers both the withdrawal red flags at the branch and the on-chain analytics that turns "not our machine" into a risk a bank can actually see and act on. https://hubs.la/Q04qf9nv0

JUST IN: Zama Partners with Elliptic to Make Confidential Finance Compliant by Design. For years, institutions have faced a trade-off: keep sensitive financial data confidential, or meet the compliance requirements of regulated markets. With Zama, they no longer have to choose. Confidential finance on Zama keeps balances and transfer amounts encrypted while the network stays public and auditable. And with wallet risk screening powered by Elliptic, now live in the Zama App, institutions can identify high-risk counterparties without exposing any sensitive financial data. The result: institutions can now deploy capital onchain, confidentially and compliantly. Not private blockchains. Not anonymity tools. Public blockchain infrastructure built for regulated markets. Compliant confidential finance is not a compromise. It is the foundation institutions have been waiting for. Read more: https://lnkd.in/egQc5yk7

🤖 Regulators from Dubai to London to Hong Kong are redrawing financial supervision for the age of AI. The question they keep returning to is accountability, meaning who answers for what AI systems decide. Read about it in our latest crypto regulatory affairs, from the desk of Elliptic's David Carlisle. https://hubs.la/Q04p-4cz0

🌎 The Financial Action Task Force (FATF) has identified at least 84 public-private partnerships fighting financial crime around the world. Its July report also found that most of these partnerships stop short of the operational, case-level work that actually disrupts criminal networks. The report singles out the cryptoasset industry as under-integrated. In our latest analysis, Dr. Kelly Coulter looks at what it takes to reach the operational end of that spectrum, drawing on Elliptic's work with UK agencies in the Crypto Cash Fusion Cell and with the RCMP training law enforcement across the Asia-Pacific. https://hubs.la/Q04pZWgR0