This week’s crypto market recap highlights the SEC’s regulatory review of digital asset guidance, Circle’s uncertain IPO timeline, and the impact of tariffs on market sentiment. The SEC is revisiting guidance on how securities laws apply to stablecoins, specifically focusing on “covered stablecoins” that maintain a 1:1 value ratio with the U.S. dollar. The agency clarified that these stablecoins are backed by liquid assets matching or exceeding redemption values, while excluding algorithmic and non-USD-pegged stablecoins. Circle, behind the USD Coin (USDC) stablecoin, is also facing uncertainty around its upcoming IPO. Market volatility due to economic uncertainties stemming from President Trump’s tariffs has led to a sell-off across various asset classes, with cryptocurrencies notably weakening. Trading volumes have plummeted and funding rates are at historically low levels, reflecting a cautious market sentiment. The FBI seized on this opportunity, sanctioning CLS Global for its involvement in manipulating trading volume of the NexFundAI token, highlighting ongoing efforts to combat fraudulent activity.