Introduction

This report focuses on the key policy and macroeconomic developments in the Web3 sector from February 21 to February 27, 2025. The week saw important regulatory and market shifts. On February 21, under the MiCA (Markets in Crypto-Assets) regulatory framework, the first 10 companies were approved to issue stablecoins in the European Union, accelerating the path toward stablecoin compliance in the European market. On February 25, a report from the U.S. Chamber of Commerce showed a significant drop in the Consumer Confidence Index, reflecting growing uncertainty in the broader economic landscape. On the same day, South Dakota vetoed a Bitcoin Reserve Bill, while on February 26, Oklahoma’s Strategic Bitcoin Reserve Bill (HB 1203) passed the House Committee and moved to the full voting stage, highlighting the differing stances and ongoing debates among U.S. states regarding crypto policy. Additionally, on February 26, Hong Kong is preparing to release its second virtual asset policy declaration, aiming to enhance the regulatory framework while encouraging innovation. These developments suggest that the Web3 industry is experiencing major shifts in the global regulatory and market environment, and stakeholders should stay informed on policy trends to navigate emerging opportunities and challenges.

Abstract

• February 21 – 10 companies approved to issue stablecoins in the EU under the MiCA framework.
• February 25 – Significant drop in the U.S. Consumer Confidence Index for February.
• February 25 – South Dakota vetoes Bitcoin Reserve Bill.
• February 26 – Oklahoma’s Strategic Bitcoin Reserve Bill passes House Committee and advances to full vote.
• February 26 – Hong Kong set to release second virtual asset policy declaration, focusing on regulatory strength and innovation.

Key Events

February 21 – 10 Companies Approved to Issue Stablecoins in the EU Under the MiCA Regulatory Framework

Patrick Hansen, Senior Director of EU Strategy and Policy at Circle, announced that 10 companies have been authorized to issue stablecoins within the European Union under the MiCA (Markets in Crypto-Assets) regulatory framework. The approved companies include Banking Circle, stablecoin issuer Circle, Crypto.com, Fiat Republic, Membrane Finance, Quantoz Payments, Schuman Financial, Société Générale, StabIR, and Stable Mint. These companies have launched 10 stablecoins pegged to the euro and 5 stablecoins pegged to the U.S. dollar. Notably, Tether was not among the approved entities.

This marks a significant milestone in the EU’s cryptocurrency regulatory framework, signaling its transition into the implementation phase. The new regulations could have broad implications for the industry. The entry requirements under MiCA might prompt more projects to realign their compliance strategies, and the growing demand for services like on-chain auditing and asset custody could lead to a substantial expansion of the market—potentially worth billions of euros. As the world’s first fully implemented crypto regulatory framework, MiCA could serve as a model for other regions, although its success will depend on both market reception and the strength of enforcement.[1]

February 25 – U.S. Consumer Confidence Index Sees Sharp Decline in February

On February 25, the Conference Board released data showing a significant drop in the U.S. Consumer Confidence Index, indicating heightened concerns about the economic outlook. The index fell to 98.3 in February, down from 105.3 in January—a 7-point decrease. This is not only lower than the expected 102.3 but also marks the lowest level since June 2024 and the largest month-on-month decline since August 2021. This is the third consecutive month of decline for the index. If consumer confidence continues to decrease, it could dampen spending, potentially slowing overall economic growth. It will be important to monitor upcoming policy adjustments and further economic indicators to assess the situation.[2]

February 25 – South Dakota Rejects Bitcoin Reserve Bill

On February 24, the South Dakota House Commerce and Energy Committee decided to postpone the review of HB 1202, a bill initially proposed to allow the state government to add Bitcoin to its financial reserves. With the legislative session lasting only 40 days and the bill pushed to the “41st day,” this procedural move effectively equates to a veto. The proposal had sparked significant debate: proponents argued that Bitcoin could serve as a hedge against inflation, while critics expressed concerns over its price volatility potentially destabilizing the state’s finances.

South Dakota has become the first state in 2025 to reject a Bitcoin reserve plan, in stark contrast to recent approvals of similar bills in Texas and Florida. This decision may prompt conservative states like Wyoming and Utah, which were considering similar proposals, to rethink the political and financial risks involved. Moreover, the potential $1.7 billion Bitcoin allocation for state pension and trust funds is now temporarily halted, which could delay the expansion of institutional crypto custody services. This situation underscores the growing divide in cryptocurrency regulation among U.S. states, with technology-driven economies leaning toward more open policies, while agriculture- and energy-based states remain cautious.[3]

February 26 – Oklahoma’s Strategic Bitcoin Reserve Bill (HB 1203) Advances to Full Vote

On February 26, the Oklahoma House Financial Committee voted in favor of the Strategic Bitcoin Reserve Bill (HB 1203), which would permit the state fund to allocate up to 10% of its financial reserves in Bitcoin (BTC). The bill has now been moved to the full House for a vote, and if passed, it will come into effect in the 2026 fiscal year. If enBilled, it would make Oklahoma the first U.S. state to adopt a policy allowing large-scale government investments in digital assets, potentially setting off a ripple effect.

Firstly, a significant portion of Oklahoma’s state reserves could flow into the crypto market, which would directly increase institutional Bitcoin holdings. Secondly, the legislative framework could serve as a model for other states, with Arizona already researching similar proposals. Thirdly, the bill mandates that digital assets be listed on regulated exchanges and rank among the top five by market cap, which could drive platforms like Gate.io to expedite their compliance efforts.[4]

February 26 – Hong Kong Set to Release Second Virtual Asset Policy Declaration, Strengthening Regulation and Fostering Innovation

In the 2025-2026 Budget announced by Hong Kong’s Financial Secretary, the government revealed plans to release a second policy declaration on virtual assets. This initiative aims to combine the advantages of traditional financial services with the innovative potential of virtual asset technologies, enhancing the security and flexibility of real-world economic Billivities.

Additionally, the government plans to consult on a licensing framework for over-the-counter (OTC) trading and custodial services for virtual assets later this year. A draft regulatory bill for stablecoin issuers has also been submitted to the Legislative Council, and once approved, the Hong Kong Monetary Authority (HKMA) will promptly process the related licensing applications. These steps are designed to encourage both local and international companies to explore innovative applications of virtual asset technologies, solidifying Hong Kong’s position as a global leader in the virtual asset ecosystem.[5]

Conclusion

Between February 21 and 28, 2025, several key events in the cryptocurrency market and macroeconomic landscape had a significant impact on industry trends. Under the MiCA regulatory framework, the first 10 companies were approved to issue stablecoins in the EU, including Banking Circle, Circle, and Fiat Republic. Meanwhile, the U.S. Consumer Confidence Index saw a sharp decline, highlighting growing macroeconomic uncertainty. In the U.S., South Dakota vetoed the Bitcoin Reserve Bill, while Oklahoma’s Strategic Bitcoin Reserve Bill passed the House Committee and moved to the full vote stage. Additionally, Hong Kong is set to release its second virtual asset policy declaration, aiming to strengthen regulation and foster innovation. These events signal profound changes in both the global regulatory and market environment for the cryptocurrency industry.


References:

1. X,https://x.com/paddi_hansen/status/1892182713345737006
2. CNBC,https://www.cnbc.com/2025/02/25/february-consumer-confidence-comes-in-lighter-than-expected-in-latest-sign-of-slowing-economy.html
3. South Dakota Legislature,https://mylrc.sdlegislature.gov/api/Documents/282760.pdf
4. X,https://x.com/solidintel_x/status/1894666500193095886
5. Rthk hk,https://news.rthk.hk/rthk/ch/component/k2/1793233-20250226.htm

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