Today's Highlights
💳Gate officially launches Gate Money, building a one-stop financial services portal on its global compliance framework
🏦Rain seeks a national trust bank charter to bypass third-party banks
⚖️The U.S. Department of Justice cites the Bitcoin Fog ruling, potentially undermining Roman Storm's motion for acquittal
🧊Tether sued over freezing US$2.76 million in stablecoins
🚨U.S. Senate investigation finds USDT is a key liquidity channel for Iran's "shadow banking," and Gulf VASPs may face stricter compliance scrutiny
Gate officially launches Gate Money, building a one-stop financial services portal on its global compliance framework
On October 7, Dr. Han, founder and CEO of Gate, delivered a keynote speech on the main stage of the TOKEN2049 event in Singapore, announcing the launch of Gate Money. The service further connects fiat currency, digital assets, equities, payments and asset management, providing users with financial services covering scenarios such as asset holding, receiving payments, transfers, payments, exchange and yield. Gate stated that the launch of Gate Money is built on the global compliance framework and financial infrastructure that Gate has continued to develop.
Business impact
Gate Money bundles fiat currency, digital assets, equities, payments and asset management into a single portal, effectively extending Gate from a trading platform into a one-stop account system for holding, receiving and making payments, exchange and yield. The legal relationship between users and the platform therefore expands from mere trade matching to contractual and custodial arrangements for multiple types of financial services. For users and partners who hold assets within the Gate system or use its payment or yield products, which jurisdiction's licensing, custody and disclosure rules specifically apply depends on the entities and market-access arrangements corresponding to each functional module when implemented; the report does not disclose these details. Which services are open to which regions and which licensed entity provides them remain unclear.
In practice, the following can be checked in sequence:
• Identify the licensed entity corresponding to the function used and the applicable custody and disclosure arrangements.
Source: PANews · 2026/10/7 18:20
Rain seeks a nationwide trust bank charter to bypass third-party banks
Rain, a stablecoin payments company, has submitted an application to establish a trust bank in New York that would directly custody digital assets and U.S. dollars, manage stablecoin reserves, and handle the issuance and redemption of U.S. dollar-backed tokens. The charter application is part of the trust bank establishment process under the dual state and federal banking regulatory framework in the United States and is currently at the application stage; the report did not disclose the receiving agency, the filing date or the approval timetable. If approved, Rain would no longer rely on third-party banks for reserve custody and token minting and redemption, but whether the charter will be obtained and the specific scope of nationwide operating authority remain uncertain.
Business impact
The application concerns the bank charter link in the stablecoin issuance and payment chain. Once approved, Rain would, as a licensed trust bank, custody reserve assets itself and handle token issuance and redemption, thereby reducing its reliance on partner banks. For stablecoin issuers that likewise use third-party bank custody for reserves, whether they hold their own charter will directly affect their reserve management arrangements and the stability of their redemption paths. The application is currently pending, and the report did not explain whether it will be approved or how the business scope would be defined after approval.
In practical business terms, the following can be checked in sequence:
• Confirm whether your own business involves stablecoin reserve custody or token issuance and redemption.
• Check the proposed trust bank business scope and licensing conditions in the application.
• Track the receiving agency and approval progress of the charter application.
Source: CoinDesk · 2026/10/7 17:09
U.S. Department of Justice cites Bitcoin Fog ruling, potentially undermining Roman Storm's motion for acquittal
In the Roman Storm case, the U.S. Department of Justice cited a recent appellate court ruling in Bitcoin Fog, arguing that the ruling supports its position that Tornado Cash's activities in Manhattan are sufficient to establish venue for some of the charges against Storm in New York. Storm had previously filed a motion for acquittal on the relevant charges, and the prosecution's argument directly targets the venue dispute on which that motion relies. The case is currently at the pretrial stage in a New York federal court, and the court has not yet ruled on the motion. If accepted, this argument would affect Storm's path to seeking acquittal on some charges, but whether venue is ultimately established still depends on the court's determination of the factual connection between the two cases.
Business impact
The venue dispute directly determines whether some of the charges Storm faces in New York can proceed, and the prosecution uses the Bitcoin Fog ruling as an analogy, the core being to establish a solid connection between Tornado Cash's activities in Manhattan and the New York jurisdiction. For teams providing mixing, privacy or money-transfer services in the United States, the direction of this argument bears on where their business activities may be deemed prosecutable, which in turn affects the choice of server deployment, user reach and transaction processing locations. The court has not yet ruled, and the extent to which the Bitcoin Fog ruling can be applied to the facts of Tornado Cash remains uncertain.
In practice, the following can be checked in sequence:
• Confirm whether one's own business activities involve a connection to the New York jurisdiction.
• Compare the venue determination standard in the Bitcoin Fog ruling.
• Track the court's ruling on the motion in the Storm case.
Source: Cointelegraph · 2026/10/7 15:10
Tether sued over freezing US$2.76 million in stablecoins
A payment company has filed suit against Tether, alleging that Tether froze the company's fund wallet on its own initiative on the basis of a Brazilian investigation wholly unrelated to the company, and refused to unfreeze the funds for more than a year while profiting from the reserves. The plaintiff argues that Tether's freeze was not based on any legal proceeding against the payment company, but on a Brazilian investigation with which the payment company has no connection. The amount involved is US$2.76 million in stablecoins. The case has now entered litigation; Tether has not yet made a public response to the allegations, and the court has not ruled. The core issue in the case is the scope of a stablecoin issuer's power to unilaterally freeze user wallets, and who is entitled to the reserve income earned during the freeze period.
Business impact
This lawsuit directly touches the contractual and custodial relationship between a stablecoin issuer and holders: Tether asserts a right to freeze wallets under its terms of service, while the plaintiff contends that this right was used for a third-party investigation unrelated to itself and that the income generated by the reserves during the freeze period has not been returned. For enterprises holding stablecoins offshore, whether effective remedies can be obtained after a wallet is frozen, and who is entitled to the fund income during the freeze period, currently still depend on the specific wording of the issuer's terms and the court's determination of the unilateral freeze right; this case has not yet produced a judicial rule that can be cited.
In practice, the following can be checked in sequence:
• Check whether the stablecoins you hold are subject to the issuer's unilateral freeze clauses.
• Confirm the specific provisions in the terms of service regarding freeze trigger conditions and unfreeze procedures.
• Assess the attribution of reserve income and the recovery paths during the period in which the wallet is frozen.
Source: Decrypt · 2026/10/7 03:46 The Block · 2026/10/7 01:54
US Senate investigation indicates that USDT has become an important liquidity channel for Iran's "shadow banking," and Gulf VASPs may face stricter compliance scrutiny
A recent investigation by the US Senate Permanent Subcommittee on Investigations (PSI) identified stablecoins, particularly USDT, as an important liquidity channel for Iran's "shadow banking" system. According to Bitcoin.com, the investigation's findings may further increase sanctions compliance pressure on licensed virtual asset service providers (VASPs) in the Gulf Cooperation Council (GCC) region. Given the Gulf region's geographical proximity to Iran and frequent cross-border trade, local exchanges, OTC platforms and payment service providers may need to strengthen measures such as wallet attribution identification, counterparty review and KYC. Soham Jethani, a partner at Septten Law Firm, stated that even if merchants ultimately receive local fiat currency, this does not exempt them from potential sanctions risk, and liability may arise at multiple points in the payment chain.
Business impact
This investigation brings USDT's liquidity role in Iran's shadow banking system to the fore. Those directly affected are licensed exchanges, OTC platforms and payment service providers in the GCC region: even if they serve only local merchants, as long as any link in the funds chain is connected to a sanctioned entity or wallet, they may be held accountable under US sanctions rules, and the fact that the receiving end is in local fiat currency does not constitute a basis for exemption. In business terms, the strength of wallet attribution identification, counterparty review and KYC will determine whether institutions can demonstrate that they have fulfilled their screening obligations, and multiple links in the payment chain may each bear liability. At present, the PSI's investigation conclusions have not yet been translated into a specific sanctions list or enforcement guidance; which wallet addresses and which transaction patterns will be identified as high-risk still depends on subsequent action by the US Department of the Treasury or regulatory authorities.
In implementing this in business operations, the following may be checked in sequence:
• Confirm whether you are a licensed VASP in the GCC region and fall within the scope of concern of this investigation.
• Verify whether existing KYC and wallet attribution identification processes can cover the USDT cross-border payment chain.
• Confirm whether counterparty review extends to the intermediate links of the payment chain.
Source: PANews · 2026/10/7 18:12
This daily report was compiled with AI assistance based on publicly available information and is provided for reference only. It does not constitute legal advice or recommendations.
