The Daily: Sen. Warren slams SEC over Justin Sun case amid Trump's crypto ties, Binance rejects 'demonstrably false' Iran sanctions probe, and more

The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.

Happy Friday! Bitcoin (BTC) slipped back below $70,000 as spot ETF flows reversed, with analysts warning that war-driven volatility and fragile sentiment are keeping the market in a delicate balance.

In today's newsletter, Sen. Elizabeth Warren slams the SEC's decision to drop claims against Tron founder Justin Sun, Binance rejects a "demonstrably false" Iran sanctions probe, Vancouver city staff ask the council to drop its bitcoin reserve motion, and more.

Meanwhile, Coinbase CEO Brian Armstrong and other execs face a shareholder lawsuit over custody disclosures and alleged compliance failures.

P.S. Don't forget to check out The Funding, a biweekly rundown of crypto VC trends. It's a great read — and just like The Daily, it's free to subscribe!

Elizabeth Warren blasts SEC over Justin Sun case, warns crypto bills must address Trump's 'crypto corruption'

Sen. Elizabeth Warren sharply criticized the Securities and Exchange Commission for its decision to drop claims against Tron founder Justin Sun, questioning the agency's independence as Congress debates crypto legislation.

• "Last month, SEC Chair Atkins denied in front of Congress that the Trump Administration is giving a free pass to crypto billionaires with ties to Donald Trump," Warren wrote in a statement.
• Warren said that Sun previously invested about $90 million in Trump-related crypto projects before the SEC agreed to drop its case against him.
• "The SEC should not be a lap dog for Trump's billionaire buddies, and any crypto legislation moving through Congress must stop the President's crypto corruption," she added.
• The SEC dismissed claims against Sun and the Tron Foundation on Thursday, while BitTorrent developer Rainberry agreed to pay a $10 million civil penalty to settle related allegations.

Binance says Blumenthal Iran sanctions probe relies on 'demonstrably false' reporting

Binance accused Sen. Richard Blumenthal of relying on "demonstrably false" media reports when opening an inquiry into alleged Iran sanctions violations at the crypto exchange.

• The senator launched the probe last month after reports alleged Binance partners Hexa Whale and Blessed Trust helped facilitate transactions linked to Iranian government entities.
• Binance said an internal investigation found only indirect exposure to Iran-linked wallet addresses, adding that it cut ties with both partners following a probe prompted by law enforcement inquiries.
• The exchange emphasized that it has strengthened compliance tools and reduced exposure to illicit wallets and major Iranian crypto exchanges by more than 97% in recent years.

Bitcoin not an 'allowable asset': Vancouver city staff asks council to drop BTC reserve motion

Vancouver city staff advised the council to rescind a motion to make the city "bitcoin-friendly" after concluding the asset is "not an allowable investment" under the Vancouver Charter.

• The motion, introduced by Mayor Ken Sim in 2024, proposed allocating part of the city's financial reserves to bitcoin to help protect purchasing power.
• Vancouver City Council had previously approved a feasibility review of a potential bitcoin reserve and asked staff to report back by early 2025.
• Provincial officials previously said local governments in British Columbia are not permitted to hold crypto reserves due to concerns about "undue risk."

Dubai regulator orders KuCoin to halt 'unlicensed' crypto services

Dubai's Virtual Assets Regulatory Authority ordered four entities operating under the KuCoin brand to halt "unlicensed" crypto activities in or from the emirate.

• The regulator said KuCoin does not hold authorization under Dubai's virtual asset laws and accused the crypto exchange of misrepresenting its licensing status.
• VARA also barred KuCoin from promoting, marketing, or soliciting crypto services in Dubai and warned residents about the risks of engaging with unregulated entities.
• The action follows a separate regulatory move last month, where Austria's Financial Market Authority restricted KuCoin's EU subsidiary from onboarding new clients.

Vitalik Buterin calls for bolder experimentation in Ethereum's app layer

Vitalik Buterin urged developers to experiment more aggressively at Ethereum's application layer while preserving the network's core principles of censorship resistance, open-source development, privacy, and security.

• Buterin argued Ethereum's next wave of innovation could come from redesigning the app stack around privacy, new oracle models, and more generalized DeFi primitives.
• The Ethereum co-founder also encouraged builders to explore AI-driven interfaces and ensure Layer 2 networks remain additive to the ecosystem's core infrastructure rather than duplicative.

Looking ahead to next week

• U.S. CPI inflation data are due on Wednesday. U.S. jobless claims figures are out on Thursday. UK and U.S. GDP numbers are scheduled for Friday.
• Bank of England Governor Andrew Bailey will speak on Thursday.
• Optimism, Axie Infinity, Movement, Magic Eden, Linea, and Aerodrome Finance are among the crypto projects set for token unlocks.
• The Bitcoin & Digital Asset Summit 2026 kicks off in Toronto.

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