Russia Evades Sanctions with Crypto as US Debates Crypto Regulation

Between July 2–9, Russian firms increased the use of crypto to bypass Western sanctions, alongside gold and internal netting schemes. Moscow plans a state-backed “Transparent Blockchain” by year-end. In the US, law makers branded “Crypto Week” will vote on stablecoin regulation, a CBDC ban and clearer digital asset rules. On July 9, the Senate Banking Committee held a hearing on crypto regulation, debating guiding principles for Web3 markets without an actual bill. Republicans pushed pro-crypto witnesses, while Democrats demanded stronger investor protections and AML compliance. The controversial CLARITY Act would grant the CFTC primary oversight and exempt certain tokens. Lobbying intensified: Coinbase spent six figures on ads, and over 65 founders urged support for CLARITY to maintain US leadership. Market players also moved: a crypto asset manager backed by major institutions launched a Nasdaq SPAC to raise over $1 billion in BTC, ETH and SOL. An 80,000 BTC whale wallet awoke after 14 years but did not sell, fueling speculation. Trump Media & Technology Group filed for a multi-token ETF, sparking a CRO rally. Donald Trump Jr.’s Thumzup Media acquired shares, planning to add crypto to its treasury. TRON pledged $100 million to the $TRUMP memecoin, and Bybit listed the USD1 stablecoin from World Liberty Finance—while Falcon USD (USDF) briefly de-pegged amid reserve concerns. In New York, Tornado Cash co-founder Roman Storm faces a money-laundering trial starting July 14, with sanctions evidence limited. These events underscore ongoing market volatility and regulatory uncertainty. Bitcoin traded near $109,000 and Ethereum around $2,580, with total market cap down 2.4% but sentiment cautiously bullish. Calls for tighter crypto regulation persist amid this flurry of activity.