This Week in Crypto: Australia Moves Closer to Crypto Licensing

This week in crypto, regulatory momentum in Australia took centre stage as lawmakers moved closer to introducing a formal licensing framework for digital asset platforms. At the same time, institutional investors continue to show strong conviction despite recent market volatility, while global regulators work toward clearer definitions for crypto assets. Alongside these developments, innovation across Web3 is accelerating, particularly at the intersection of artificial intelligence and payments.

Australia is moving closer to implementing a comprehensive regulatory framework for digital assets, with the Senate Economics Legislation Committee formally backing the Corporations Amendment (Digital Assets Framework) Bill 2025. The recommendation marks a key milestone, pushing the legislation beyond consultation and into the next stage of the parliamentary process, where it will proceed to debate and a final vote. The proposed framework would bring crypto exchanges and tokenisation platforms under the Australian Financial Services Licence regime, aligning them more closely with traditional financial service providers.

If passed, licensed platforms would be required to meet ASIC-defined custody and settlement standards, comply with tailored disclosure requirements for retail clients, and operate under clear governance and conduct obligations. The legislation is designed to address regulatory gaps exposed by past industry failures, particularly around platforms that hold customer assets, while introducing a proportional approach that exempts smaller providers with annual transaction volumes under AUD $10 million, alongside certain public blockchain infrastructure providers. With a potential transition period for compliance, the latest development signals that Australia is moving beyond consultation and closer to implementing a formal licensing regime.

Beyond Australia, institutional sentiment remains firmly positive despite ongoing geopolitical tensions and market fluctuations. A recent survey by Coinbase and EY-Parthenon found that 73% of institutional investors plan to increase their exposure to digital assets in 2026, while 74% expect prices to rise over the next 12 months, reinforcing confidence in the long-term outlook for the asset class.

A key trend emerging from the survey is the growing importance of real-world blockchain applications. Stablecoins and tokenised real-world assets are gaining traction, with 85% of respondents either using or planning to use stablecoins for payments, settlement, and treasury management. This shift reflects a broader transition toward practical financial use cases, reinforcing crypto’s role as emerging infrastructure within the global financial system.

Macroeconomic conditions continue to play a significant role in shaping market sentiment. The US Federal Reserve held interest rates steady at 3.5–3.75% as it monitors the economic impact of ongoing geopolitical tensions in the Middle East. While the decision provides short-term stability, uncertainty across global markets continues to influence risk assets, including cryptocurrencies, highlighting the growing connection between macroeconomic policy and digital asset performance.

In the United States, regulators are taking steps toward providing greater clarity for the crypto industry. The Securities and Exchange Commission, in coordination with the Commodity Futures Trading Commission, signalled it will clarify how “non-security crypto assets” are treated under federal securities laws. This comes as lawmakers continue to negotiate a broader digital asset market structure bill, which is expected to expand the CFTC’s authority over cryptocurrencies.

Further guidance from SEC Chair Paul Atkins also addressed nonfungible tokens, stating that NFTs are generally considered collectibles rather than investment contracts. This suggests that most NFTs would not fall under securities regulations, offering greater clarity for developers, creators, and platforms operating within the space. Together, these developments indicate gradual progress toward a more defined regulatory environment in the United States, which could reduce uncertainty and support continued institutional participation.

Innovation across Web3 continues to evolve rapidly, particularly in the area of AI-driven payments. Visa introduced new infrastructure that enables AI agents to make same-day payments using programmatic card functionality, removing the need for traditional API keys and reducing associated security risks. At the same time, the Stripe-backed Tempo blockchain launched on mainnet, offering a payments-focused network designed to support high-throughput stablecoin transactions.

These developments highlight a growing trend toward machine-to-machine transactions, where AI agents can autonomously execute payments on behalf of users or systems. As stablecoin adoption increases and payment infrastructure matures, AI-driven financial interactions could become a key component of the next phase of Web3 development.

The industry continues to evolve across regulation, institutional adoption, and technological innovation. Australia’s proposed licensing framework marks a significant step toward clearer oversight, while institutional investors remain committed to expanding their exposure to digital assets. At the same time, regulatory progress in the United States and advancements in AI-powered payments point to a future where crypto is more deeply integrated into global financial systems.

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