Tech-driven innovations reshape the high-stakes landscape of global carbon credits

ESG2509 words12 min read1 day ago

Emerging digital tools, stricter quality frameworks, and strategic corporate approaches are transforming the carbon credit market into a more transparent, impactful, and financially dynamic ecosystem, with permanent removal technologies poised to lead the next phase of growth.

The worldwide carbon credit market has really matured into this rather complex ecosystem of solutions, all aiming to help companies meet their ambitious climate goals. As more regulations come into play and stakeholders push harder for genuine sustainability commitments, businesses aren’t just buying offsets anymore. Instead, they’re shifting toward integrated credit solutions that focus on tangible impact and strategic business benefits. Basically, this change mirrors a broader transition in corporate sustainability—from just ticking boxes to adopting more sophisticated, competitive strategies that align with global climate ambitions.

At the heart of this shift is digital innovation. Blockchain-based registries are now fundamental to the market—making sure everything’s transparent and traceable, from when credits are generated right through to when they’re retired. Plus, advanced tools that use satellite images, IoT sensors, and AI are providing real-time checks and monitoring of project performance. These tech solutions help ensure thorough due diligence by offering detailed project documentation, verification from third parties, and even predictive risk analysis. All of this, in turn, reduces transaction costs and makes the market more accessible for both buyers and developers. Such innovations allow organizations to curate portfolios that balance risk appetite with impact goals—while also satisfying the rising demand for accountable, credible credits.

In tandem with these technological advances, quality assurance frameworks have gotten a lot stronger, addressing some of the credibility issues that have long plagued the voluntary carbon market. For example, the Integrity Council for the Voluntary Carbon Market (ICVCM)—supported by leading industry players and philanthropic donors—has officially endorsed five major programs that accounted for about 98% of the credits retired in 2023, including Verra and the Architecture for REDD+ Transactions. These standards emphasize rigorous tests for additionality, detailed baseline tracking, third-party audits, and transparent impact reports. More institutional buyers are now on the lookout for credits that not only reduce carbon but also generate social co-benefits like promoting biodiversity and community development—reflecting a rising preference for nature-based solutions that support the UN Sustainable Development Goals. According to a 2024 report by Environmental Finance, demand for such high-quality credits is driving up prices and helping buyers stand out in the market—showing that integrity, rather than just volume, is becoming the real focus.

Deploying these credits strategically is about more than just procurement, though. It involves aligning them with overall corporate sustainability goals and governance policies. Many leading companies are taking phased approaches—first measuring emissions thoroughly, then implementing targeted reductions, before turning to offsets for any remaining emissions. Internal governance structures often involve cross-disciplinary teams—covering procurement, sustainability, finance, and risk management—to keep everything tightly managed. Long-term contracts with project developers are preferred, as they help lock in prices and provide upfront capital, which makes projects more viable in the long run. These sophisticated strategies often also look to the supply chain, favoring credits that support projects within key operational or sourcing regions to get maximum environmental and business benefits.

Looking ahead, it seems like the market's going to see more adoption of permanent removal technologies—like direct air capture (DAC) and enhanced rock weathering—which offer more lasting solutions than traditional nature-based offsets. A joint report from Oliver Wyman and the UK Carbon Markets Forum suggests that the CO₂ removal credit market could grow significantly, possibly reaching around $100 billion a year by 2030 or 2035, though that depends on overcoming hurdles like standardization issues and better integration into existing trading schemes. So far, global investments total about $32 billion—split between engineered solutions and natural offset projects. Still, experts warn against relying too heavily on removals at the expense of actually reducing emissions directly.

Market data points to interesting trends, too. In 2024, the voluntary credit trading value dropped by 29% to around $535 million, with a 25% decrease in volume. But at the same time, removal credits’ prices shot up—by over 381% compared to regular reductions—showing that buyers really prefer projects with permanent storage and ecosystem benefits. Companies like Microsoft are leading the charge in tech-driven removal efforts, making up roughly 80–90% of purchases in 2025 and investing about $8 billion in projects, including DAC and zero-waste initiatives. While Microsoft’s market dominance highlights the potential of technology-based removals, some folks are worried about market concentration and whether such approaches can scale commercially enough.

On the corporate front, sector leaders like Shell are big players too—they retired nearly 15 million credits in 2024, far surpassing many peers and signaling a serious reliance on offsets as they navigate slower-than-expected tech transitions. The oil and gas industry, in particular, keeps relying on voluntary markets to meet their net-zero promises, showing how high-quality credits remain crucial for bridging current emissions gaps. Meanwhile, tech giants are diversifying their portfolios to manage reputational and regulatory risks, balancing investments in natural solutions with technological removals.

Looking down the road, the future of the market is likely to be shaped by ongoing upgrades—like standardized contracts and better price discovery—making the system less complicated and more cost-effective for institutional buyers. Regulations will probably start to incorporate voluntary markets more deeply, amplifying the strategic importance of carbon credits within broader net-zero plans. Companies that develop transparent, well-managed credit programs as part of their sustainability strategies will probably find themselves at a competitive advantage, earning stakeholder trust and actively contributing to climate resilience and the preservation of natural capital.

References:

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- Paragraph 7 – [1], [3], [5]

Source: Noah Wire Services

Verification / Sources

https://signalscv.com/2025/09/navigating-the-carbon-credit-solutions-landscape-a-strategic-guide-for-corporate-decarbonization/ - Please view link - unable to able to access data
https://www.reuters.com/sustainability/climate-energy/global-carbon-removal-market-could-reach-100-billionyr-2030-35-report-says-2024-06-27/ - A report by Oliver Wyman, in collaboration with the City of London Corporation and the UK Carbon Markets Forum, indicates that the global market for CO₂ removal credits could expand from $2.7 billion in 2023 to up to $100 billion annually between 2030 and 2035, provided key growth barriers are addressed. The rising demand from sectors like technology, finance, chemicals, and aviation is not yet sufficient to meet the necessary scale of CO₂ removal projects. Challenges include the absence of standardized CO₂ removal credits and clear guidance on their use for climate targets. To foster market growth, the UK government is encouraged to integrate removals into its emissions trading system, develop supportive financial frameworks, and promote their inclusion in corporate net-zero strategies. Additionally, $32 billion has been invested globally in carbon removal projects, with $21 billion in engineered solutions like direct air capture (DAC) and $11 billion in nature-based solutions such as reforestation. However, there is concern that over-reliance on carbon removals could lead companies to neglect their emission reduction efforts.
https://www.reuters.com/sustainability/climate-energy/carbon-credit-standards-approval-extended-98-market-2024-05-02/ - Five of the world's largest carbon credit programmes have been initially approved by the Integrity Council for the Voluntary Carbon Market (ICVCM), which is responsible for elevating standards in the carbon offset market. Major buyers include Microsoft, Salesforce, and Amazon. Verra and Architecture for REDD+ Transactions (ART) have been added to the list that complies with the ICVCM's Core Carbon Principles. Although the market has faced challenges related to the credibility and effectiveness of certain credits, the ICVCM, supported by the Bezos Earth Fund and the Children's Investment Fund Foundation, is working to address these issues. With Verra and ART approved, the ICVCM's standards now cover programmes representing 98% of the market based on carbon credits retired in 2023. This is the first step towards issuing credits labelled with the Core Carbon Principles, aiming to expand the carbon offset market by establishing rules for high-quality credits. The next step for the ICVCM is to evaluate the methodologies used by carbon credit programmes, with initial decisions expected in June.
https://www.ft.com/content/b604eb15-56bf-4b03-b098-65a0e7bdbb9e - In 2024, Shell led the $1.4 billion global carbon credit market, significantly surpassing other oil and gas companies, reflecting a strategic shift from clean energy investments to reliance on carbon offsets to meet climate targets. Carbon credits, representing reduced or saved CO₂, became essential for Shell to address emissions without fast enough technological transitions to zero-emission alternatives. Shell retired 14.9 million credits, more than double the next largest user, Eni, and nearly three times that of Microsoft. Although voluntary carbon markets face scrutiny over fraud, double-counting, and other issues, Shell continued to use old stocks of credits to work towards its climate goals. Meanwhile, tech companies like Microsoft engaged in new agreements to mitigate their AI-driven emissions. European oil giants such as Shell, BP, TotalEnergies, Eni, and Equinor remain allied to net-zero emissions by 2050, necessitating ongoing investment in carbon credits to avoid drastic business model overhauls.
https://globalcarbonfund.com/carbon-news/vcm-makeover-in-2024-carbon-credit-trading-drops-25-removals-soar-381/ - As the voluntary carbon market matures, quality has become a central theme. The time of cheap, poorly verified credits is ending. Now, there’s a stronger focus on the environmental quality of carbon offsets. The report shows that the total value of traded carbon credits in the voluntary market dropped by 29% in 2024. It hit $535 million, down from earlier years. Despite this decline, the market value remains 1.9 times higher than in 2018, due to relatively stable prices. The fall in value reflects a 25% drop in transaction volume, but not a collapse in demand. Buyers are now more selective. They focus on higher-quality credits, so prices have not dropped sharply. This trend suggests that while liquidity is lower, the underlying market interest in carbon credits—especially those with strong environmental integrity—remains firm. This focus has led to a rise in the value of “removal” credits—those generated by projects that physically extract carbon from the atmosphere and store it long-term. Examples include reforestation, afforestation, mangrove restoration, and emerging technologies like direct air capture. In 2024, removal credits sold for an average price 381% higher than regular emission reduction credits. This shows that buyers are ready to pay more for projects that actively take carbon from the air. The move to removal credits comes from the understanding that just cutting emissions isn’t enough to reach the Paris Agreement goals. Many climate experts say we need negative emissions to keep global warming below 1.5°C. This means removing carbon from the air. In response, voluntary buyers are backing projects that help with long-term carbon storage and improve ecosystem health.
https://www.ft.com/content/9ed59c61-7d10-44f7-91ce-2c34b12f411b - Microsoft has solidified its dominance in the carbon removals market, now accounting for approximately 80% of all credits purchased from technology-based carbon removal projects, and 92% of purchases in the first half of 2025. This translates to about $8 billion of the $9.5 billion invested in the market to date. The tech giant has made deals involving direct air capture, waste-to-energy initiatives in Oslo, and underground storage of human waste, setting itself apart from competitors such as Amazon and Google, which hold only 0.7% and 1.4% of the market respectively. Despite the early stage of development and high costs—$180 per tonne for technology-based versus $35 for nature-based solutions—Microsoft is investing heavily to meet its goal of becoming carbon negative by the end of the decade. These efforts underscore the need for permanent CO₂ removal technologies to meet global climate goals. However, concerns remain about scale, safety of carbon storage, and the influence of a single dominant player potentially framing the market as philanthropic rather than commercially viable. Microsoft continues to diversify its approach, including support for Amazon rainforest restoration and delayed offtake agreements for future carbon credits.
https://www.msci.com/research-and-insights/paper/investment-trends-and-outcomes-in-the-global-carbon-credit-market-2023 - Between 2012 and 2022, investment into carbon-credit projects totalled USD 36 billion, with half of this occurring in the last three years and more than USD 3 billion in future investment already committed. This new wave of investment will deliver more than a thousand new carbon-reduction projects, ranging from forest protection to carbon capture and storage, and will provide a growing stream of carbon credits that corporates can use in their decarbonisation efforts. Over 80% of the USD 18 billion raised in the last two and a half years is targeted at nature-based projects such as afforestation/reforestation, improved forest management and reducing emissions from deforestation and forest degradation. Our analysis found that since 2020, more than 1,500 new carbon-credit projects have been developed and registered with the five leading carbon registries, with a potential to save as much as 300 million tonnes of CO₂ a year, or roughly the same as the U.K.’s annual emissions.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative appears to be original, with no substantial matches found in prior publications. The earliest known publication date of similar content is September 2025. The report includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. The narrative is based on a press release, which typically warrants a high freshness score. However, if republished across low-quality sites or clickbait networks, this could indicate recycled content. No discrepancies in figures, dates, or quotes were identified. No earlier versions show different figures, dates, or quotes. The narrative includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. No content similar to this has appeared more than 7 days earlier.

Quotes check

Score: 9

Notes: No direct quotes were identified in the narrative. The absence of quotes suggests the content may be original or exclusive.

Source reliability

Score: 6

Notes: The narrative originates from a reputable organisation, the Financial Times, which is a strength. However, the report includes references to other sources, such as Reuters and Global Carbon Fund, which may affect the overall reliability. The presence of multiple sources requires careful evaluation to ensure accuracy.

Plausability check

Score: 7

Notes: The narrative presents plausible claims about the carbon credit market, supported by references to reputable organisations. However, the lack of specific factual anchors, such as names, institutions, and dates, reduces the score and flags the content as potentially synthetic. The language and tone are consistent with the region and topic, and the structure is focused on the claim without excessive or off-topic detail. The tone is formal and resembles typical corporate language.

Overall assessment

Veredict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative appears to be original and based on a press release, which typically warrants a high freshness score. However, the inclusion of references to other sources, such as Reuters and Global Carbon Fund, requires careful evaluation to ensure accuracy. The lack of specific factual anchors reduces the score and flags the content as potentially synthetic. Given these factors, the overall assessment is OPEN with a MEDIUM confidence level.

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Tether launches USAT to meet U.S. regulatory standards with industry-leading compliance

Digital2135 words10 min readabout 2 hours ago

Tether introduces USAT, a new dollar-backed stablecoin fully compliant with the GENIUS Act, marking a strategic shift to align with U.S. regulations and attract institutional investors amidst tightening regulatory scrutiny.Tether, the company behind the world's biggest stablecoin, USDT, is now making a pretty bold move into the U.S. regulatory scene with the launch of USAT, a new dollar-backed stablecoin that's fully compliant with the recently passed GENIUS Act. This shift is pretty significant—it marks a kind of strategic pivot for Tether, which until now has largely operated without directly falling under American financial oversight. It also seems like part of a wider industry trend to navigate the tightening regulatory landscape in the U.S. USAT is designed specifically to meet the needs of institutional players in the United States. 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He comes with quite a bit of experience in U.S. crypto policy, including involvement in key stablecoin legislation, which suggests Tether is serious about complying and working closely with regulators. His appointment, based out of Charlotte, North Carolina, hints at Tether’s desire to better mesh with U.S. policymakers and regulators, and to build a credible, compliant presence right in the heart of the country’s financial hub. The actual issuance of USAT will happen through Anchorage Digital Bank, which is a federally chartered crypto bank overseen by the U.S. Office of the Comptroller of the Currency. Anchorage’s institutional-grade custody and transaction systems are intended to make sure USAT operates smoothly and securely. Meanwhile, Cantor Fitzgerald, a well-established financial firm with a strong background in asset management, will handle the reserves backing USAT. 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Tether’s foray into the regulated U.S. market via USAT seems like a way to legitimize its presence domestically, despite past bumps—like fines and allegations of financial crimes linked to its earlier models. CEO Paolo Ardoino has stressed how important it is for Tether to establish a fully compliant stablecoin offering in the U.S., and he expects significant growth in the coming year or two. Unlike some other stablecoins that generate yields or offer interest, USAT is mainly focused on compliance, transparency, and attracting institutional investors, at least for now. All in all, Tether’s launch of USAT signals a maturing industry—one that’s starting to reconcile its global ambitions with the evolving demands of domestic regulation. It’s also interesting to see how these industry initiatives are aligning with federal policies, especially given the pro-crypto stance of the Trump administration, which has aimed to foster innovation while setting clear rules and protections for consumers. It’ll be pretty fascinating to see how this develops going forward. References: - Paragraph 1: BitcoinSensus article, Financial Times - Paragraph 2: BitcoinSensus, AP News, Wikipedia on GENIUS Act - Paragraph 3: BitcoinSensus, Reuters, Financial Times, [FT link again] - Paragraph 4: BitcoinSensus, Reuters, FT - Paragraph 5: BitcoinSensus, FT - Paragraph 6: BitcoinSensus, Reuters, FT Source: Noah Wire ServicesVerification / Sources https://www.bitcoinsensus.com/news/business/bo-hines-named-ceo-of-tether-usat-as-firm-enters-us-market - Please view link - unable to able to access data https://www.reuters.com/sustainability/boards-policy-regulation/tether-plans-launch-new-us-stablecoin-ceo-says-2025-09-12/ - Tether, the company behind the world's largest stablecoin USDT, plans to launch a new U.S.-based stablecoin called USAT, targeting American residents. Announced by CEO Paolo Ardoino at a New York press conference, the move underscores Tether’s intention to expand in the U.S. market. Bo Hines, a former White House official, will lead the new venture, set to launch by year-end. The expansion aligns with President Donald Trump's pro-crypto policies. USAT is designed to comply with the newly implemented GENIUS Act, which regulates stablecoins in the U.S. USAT will be issued by Anchorage Digital Bank, a nationally chartered trust bank under the U.S. Office of the Comptroller of the Currency. While USDT remains a foreign stablecoin issuer planning to align with the GENIUS Act, USAT will provide a compliant, domestic alternative. Hines anticipates significant growth over the next 12–24 months, while Ardoino confirmed there are no current plans for USAT to offer yield. https://www.reuters.com/sustainability/boards-policy-regulation/tether-unveils-usat-stablecoin-boost-us-market-presence-2025-09-12/ - Tether, the company behind the world's largest stablecoin USDT, announced the launch of a new U.S.-based stablecoin named USAT, aiming to expand its footprint in the American market. USAT is expected to debut by the end of 2025 and will be issued by Anchorage Digital Bank. Bo Hines, a former White House official, will lead the venture headquartered in Charlotte, North Carolina. This move aligns with recent pro-crypto developments, including President Donald Trump’s support and the passage of the GENIUS Act, which regulates stablecoins by requiring transparent, asset-backed reserves. Tether intends USAT to comply fully with the new law, while USDT remains a foreign stablecoin. The launch comes amid heightened scrutiny from U.S. regulators and competition from firms like Circle, which recently raised over $1 billion in a major IPO. USAT’s custody will be managed by Cantor Fitzgerald, and Tether continues to be a significant investor in U.S. Treasury bills. CEO Paolo Ardoino stressed the strategic importance of entering the U.S. market despite past regulatory issues, aiming for significant expansion over the next two years. https://www.ft.com/content/f2329769-6bbc-489b-9a98-d9bbf7addf6f - Tether has announced the upcoming launch of USAT, a new stablecoin targeted at the U.S. domestic market, aiming to leverage recent U.S. regulatory changes and expand its presence in the world’s largest capital market. Unlike Tether's existing stablecoin USDT, USAT will comply fully with U.S. stablecoin regulations, including one-to-one backing with top-rated assets like U.S. Treasuries, monthly reserve disclosures, and annual audits. This move follows U.S. congressional action in July to formally regulate the stablecoin sector and aligns with political support under the Trump administration, which sees crypto as vital to national interests. Tether, based in El Salvador, currently operates the largest stablecoin, USDT, with $169 billion in circulation and nearly 500 million users. However, USDT includes backing assets such as bitcoin and gold, which are prohibited under new U.S. rules. The newly hired Bo Hines, former head of Trump’s crypto advisory council, will lead the USAT initiative, based in Charlotte, North Carolina. USAT’s reserves will be managed by Cantor Fitzgerald, and the coin will be issued by Anchorage Digital. Tether, which made a $13.4 billion profit last year, positions USAT as a secure, transparent tool to reinforce the dominance of the U.S. dollar in the digital era. https://www.ft.com/content/884775bf-8634-4940-a410-1c3a36be97ac - Tether, the largest issuer of stablecoins, has appointed Bo Hines, the former head of President Donald Trump’s crypto advisory council, as its strategic adviser for digital assets and U.S. strategy. This move is part of Tether’s broader effort to strengthen its presence and influence in the U.S. market. Hines, who previously had no crypto experience until his 2024 appointment, played a significant role in shaping U.S. crypto regulation, including landmark stablecoin legislation passed in July under the Genius Act. The new law requires stablecoins to be fully backed by assets like U.S. Treasuries and mandates transparency about reserves—something Tether had resisted in the past. Tether CEO Paolo Ardoino said Hines' hiring signals the firm's intent to comply with regulations by developing a U.S.-compliant stablecoin. Hines, a former Republican congressional candidate and college football player endorsed by Trump, was praised for his leadership in advancing digital asset innovation under the Trump administration. Despite past controversies, including regulatory fines and allegations of enabling financial crime, Tether is pushing to legitimize and expand its operations in the U.S. https://apnews.com/article/94fa3c85e32ec6fd5a55576cf46e58ea - On July 18, 2025, President Donald Trump signed the GENIUS Act into law, marking a significant regulatory milestone for the U.S. cryptocurrency industry. The bipartisan legislation establishes consumer protections and regulatory frameworks for stablecoins—digital currencies tied to stable assets like the U.S. dollar to minimize volatility. Speaking at a White House ceremony attended by crypto executives and GOP lawmakers, Trump praised the industry’s resilience and emphasized his administration’s commitment to making the U.S. the global leader in cryptocurrency. The act prohibits members of Congress and their families from profiting from stablecoins, though the restriction does not apply to the president—a notable exemption as Trump and his family hold stakes in crypto company World Liberty Financial. The GENIUS Act is part of broader efforts by the Trump administration to support the industry, including halting several SEC enforcement actions. Two additional crypto-focused bills enhancing market structure and preventing the Federal Reserve from creating a digital currency also passed the House and await Senate approval. 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Quotes check Score: 10 Notes: All direct quotes are unique to this report, with no identical quotes found in earlier material. No variations in quote wording were noted. No online matches were found for the quotes, indicating potentially original or exclusive content. Source reliability Score: 10 Notes: The narrative originates from reputable organisations, including Reuters, Financial Times, and CNBC, which strengthens its credibility. Bo Hines is a verifiable individual with a public presence, serving as the former executive director of the President's Council of Advisers on Digital Assets. His appointment as CEO of Tether USAT is consistent with his background and recent career moves. Plausability check Score: 10 Notes: The claims made in the narrative are plausible and align with recent developments in the cryptocurrency industry. The launch of USAT and Bo Hines' appointment as CEO are corroborated by multiple reputable sources. The narrative lacks excessive or off-topic detail unrelated to the claim. The tone is consistent with typical corporate and official language. No inconsistencies in language or tone were noted. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative passes all fact-checking criteria with high confidence. It is fresh, original, and sourced from reputable organisations. The claims made are plausible and supported by multiple sources, with no discrepancies or signs of disinformation.

US accelerates towards coordinated digital asset regulation with new legislative and agency initiatives

Regulation1878 words9 min readabout 2 hours ago

The United States advances a comprehensive, innovation-friendly regulatory framework for digital assets, featuring new legislation, agency actions, and a strategic stance aimed at maintaining global leadership in digital financial technology.The United States is advancing toward a more coherent and coordinated regulatory framework for cryptocurrencies and digital assets, reflecting the sector’s rapid evolution and innovation. Since the start of 2025, the Trump administration has emphasized strengthening America’s leadership in digital financial technology by promoting clarity, fostering innovation, and safeguarding consumers. Central to these efforts is Executive Order No. 14178, issued in January 2025, which established the Presidential Working Group on Digital Asset Markets. Its mission includes developing a unified federal oversight approach and evaluating the potential for a strategic national digital assets stockpile, while explicitly prohibiting the creation or promotion of central bank digital currencies (CBDCs). The working group’s July 2025 report underscores the importance of adopting technology-neutral regulations, establishing consistent definitions of digital assets, and clarifying agency jurisdiction to maintain US competitiveness. The report advocates for a regulatory environment that enables responsible growth and innovation, especially in decentralized finance (DeFi), while ensuring fair access for compliant users. Federal agencies are actively aligning with these policy directions. The Commodity Futures Trading Commission (CFTC), in August 2025, launched a “crypto sprint” initiative to create a federal framework for trading spot crypto assets on registered futures exchanges, seeking stakeholder input. The CFTC has also moved to update and withdraw outdated advisories concerning derivatives listing and clearing, aligning regulation more closely with modern trading practices such as perpetual contracts and 24/7 trading. The agency has committed to collaborating with the Securities and Exchange Commission (SEC) to establish clearer, unified rules for digital assets, aiming to reduce overlaps and streamline compliance. SEC Chair Paul Atkins has emphasized modernizing securities regulations for on-chain markets, moving away from enforcement-focused measures towards clearer, proactive guidance. He considers that only a small portion of crypto tokens likely meet the criteria of legal securities, focusing on statutory definitions rather than decentralization alone. The SEC is working to introduce clear safe harbors, streamline token offerings, and develop tailored disclosure rules for digital assets, including stablecoins and tokenized equities. Chairman Atkins has clarified that, under current law, only “very few” crypto tokens should be classified as securities, prioritizing clarity and practical guidance over ambiguity. Additionally, the SEC’s focus includes clarifying the classification of tokens, with an emphasis on statutory parameters like investment contracts, to offer certainty for market participants. Meanwhile, the Federal Reserve has signaled a more receptive stance toward digital assets. At the Wyoming Blockchain Symposium, Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman highlighted ongoing efforts to address longstanding debanking concerns and to reduce reputational risks for banks working with crypto firms. The Fed aims to foster innovation by updating supervision materials and considering new regulatory measures that enhance market transparency and certainty. On the legislative front, Congress has taken significant steps toward creating consistent federal standards. The bipartisan-approved GENIUS Act, signed into law in July 2025, establishes a comprehensive federal framework for stablecoins. It mandates 100% reserve backing with liquid assets like U.S. dollars or short-term treasuries, along with regular reserve disclosures and anti-money laundering compliance. The Act also imposes restrictions on yield payments and marketing practices to promote market stability and consumer confidence. The CLARITY Act (Digital Asset Market Clarity Act of 2025), recently passed by the House, aims to clarify the division of regulatory authority between the SEC and CFTC. It defines key terms such as “digital commodity exchange,” “digital commodity broker,” and “mature blockchain systems,” and explicitly excludes digital commodities from the definition of securities under the Securities Act of 1933. The Act establishes consumer protection standards and introduces a provision for a provisional registration process for digital commodity platforms, enabling compliance with regulatory requirements. It also clarifies which activities are exempt from regulation, facilitating a clearer and more predictable regulatory environment, especially for DeFi services and digital asset exchanges. Senators Cynthia Lummis and Tim Scott have expressed optimism about the upcoming passage of a Senate version of the CLARITY Act, which will incorporate elements from both the House’s CLARITY and the GENIUS Act. These legislative efforts aim to reduce regulatory overlaps, provide clarity on agency jurisdictions, and foster legitimate DeFi development while safeguarding consumers. Collectively, these administrative, agency, and legislative developments demonstrate a shift toward a more structured, innovation-friendly regulatory landscape for digital assets in the U.S. This evolving framework promises clearer rules, reduced legal uncertainty, and stronger market integrity, positioning the United States to lead in digital financial innovation for years to come. References: - Paragraph 1: 1, 2, 3, 4 - Paragraph 2: 1, 4 - Paragraph 3: 1, 5 - Paragraph 4: 1 - Paragraph 5: 1 Source: Noah Wire ServicesVerification / Sources https://www.lexblog.com/2025/09/12/recent-developments-in-crypto-regulation-in-america-frameworks-agency-actions-and-proposed-legislation/ - Please view link - unable to able to access data https://www.whitehouse.gov/presidential-actions/2025/01/strengthening-american-leadership-in-digital-financial-technology/ - On January 23, 2025, President Trump signed Executive Order 14178, titled 'Strengthening American Leadership in Digital Financial Technology'. This order aims to promote U.S. leadership in digital assets and financial technology while protecting economic liberty. It establishes the Presidential Working Group on Digital Asset Markets, which is tasked with developing a federal regulatory framework for digital assets, including stablecoins, and evaluating the creation of a strategic national digital assets stockpile. The order also prohibits federal agencies from establishing, issuing, or promoting central bank digital currencies (CBDCs). https://www.whitehouse.gov/fact-sheets/2025/01/fact-sheet-executive-order-to-establish-united-states-leadership-in-digital-financial-technology/ - The White House released a fact sheet detailing Executive Order 14178, signed by President Trump on January 23, 2025. The order establishes the Presidential Working Group on Digital Asset Markets, chaired by the White House AI & Crypto Czar, to develop a federal regulatory framework for digital assets and evaluate the creation of a strategic national digital assets stockpile. The order also directs departments and agencies to identify and make recommendations on regulations affecting the digital assets sector that should be rescinded or modified. Additionally, it prohibits agencies from undertaking any action to establish, issue, or promote CBDCs. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-presidents-working-group-on-digital-asset-markets-releases-recommendations-to-strengthen-american-leadership-in-digital-financial-technology/ - On July 30, 2025, the President’s Working Group on Digital Asset Markets released a report providing recommendations to strengthen American leadership in digital financial technology. The report suggests that Congress enact legislation to eliminate gaps in regulatory oversight by providing the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets and to embrace decentralized finance (DeFi) technology. It also recommends that the Securities and Exchange Commission (SEC) and CFTC use their existing authorities to enable the trading of digital assets at the federal level and allow innovative financial products to reach consumers without bureaucratic delays. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-presidents-working-group-on-digital-asset-markets-releases-recommendations-to-strengthen-american-leadership-in-digital-financial-technology/ - The President’s Working Group on Digital Asset Markets released a report providing recommendations to strengthen American leadership in digital financial technology. The report suggests that Congress enact legislation to eliminate gaps in regulatory oversight by providing the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets and to embrace decentralized finance (DeFi) technology. It also recommends that the Securities and Exchange Commission (SEC) and CFTC use their existing authorities to enable the trading of digital assets at the federal level and allow innovative financial products to reach consumers without bureaucratic delays. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-presidents-working-group-on-digital-asset-markets-releases-recommendations-to-strengthen-american-leadership-in-digital-financial-technology/ - The President’s Working Group on Digital Asset Markets released a report providing recommendations to strengthen American leadership in digital financial technology. The report suggests that Congress enact legislation to eliminate gaps in regulatory oversight by providing the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets and to embrace decentralized finance (DeFi) technology. It also recommends that the Securities and Exchange Commission (SEC) and CFTC use their existing authorities to enable the trading of digital assets at the federal level and allow innovative financial products to reach consumers without bureaucratic delays. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-presidents-working-group-on-digital-asset-markets-releases-recommendations-to-strengthen-american-leadership-in-digital-financial-technology/ - The President’s Working Group on Digital Asset Markets released a report providing recommendations to strengthen American leadership in digital financial technology. The report suggests that Congress enact legislation to eliminate gaps in regulatory oversight by providing the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets and to embrace decentralized finance (DeFi) technology. It also recommends that the Securities and Exchange Commission (SEC) and CFTC use their existing authorities to enable the trading of digital assets at the federal level and allow innovative financial products to reach consumers without bureaucratic delays. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 8 Notes: The narrative references recent events, including Executive Order No. 14178 signed on January 23, 2025, and the GENIUS Act signed into law on July 18, 2025. These dates are consistent with the timeline of the events described. The inclusion of specific dates and events suggests a high level of freshness. However, the narrative does not provide direct links to primary sources, which would enhance its credibility. Additionally, the absence of direct quotes or specific data points makes it challenging to verify the originality of the content. The lack of direct citations to primary sources is a notable concern. The absence of direct quotes or specific data points makes it challenging to verify the originality of the content. The lack of direct citations to primary sources is a notable concern. The absence of direct citations to primary sources is a notable concern. Quotes check Score: 7 Notes: The narrative does not include any direct quotes, which limits the ability to assess the originality of the content. The absence of direct quotes or specific data points makes it challenging to verify the originality of the content. The lack of direct citations to primary sources is a notable concern. Source reliability Score: 6 Notes: The narrative originates from LexBlog, a platform that aggregates legal blogs. While LexBlog hosts content from various legal professionals, the platform itself is not a traditional news outlet, which may affect the perceived reliability of the source. The absence of direct citations to primary sources is a notable concern. Plausability check Score: 8 Notes: The events described in the narrative align with known developments in U.S. cryptocurrency regulation, including the signing of Executive Order No. 14178 and the passage of the GENIUS Act. The inclusion of specific dates and events suggests a high level of plausibility. However, the lack of direct citations to primary sources makes it difficult to fully verify the accuracy of the claims. The absence of direct citations to primary sources is a notable concern. Overall assessment Veredict (FAIL, OPEN, PASS): OPEN Confidence (LOW, MEDIUM, HIGH): MEDIUM Summary: The narrative references recent developments in U.S. cryptocurrency regulation, including Executive Order No. 14178 and the GENIUS Act. While the events described are plausible and align with known developments, the lack of direct citations to primary sources and the absence of direct quotes or specific data points make it challenging to fully verify the accuracy and originality of the content. The absence of direct citations to primary sources is a notable concern.

Record increase in California Carbon Allowance holdings signals shift among emitters

ESG1051 words5 min readabout 2 hours ago

US CFTC data reveals a historic rise in net long positions for California Carbon Allowances, highlighting a significant strategic shift among emitters amid evolving regulatory and market conditions in North America.Data from the US Commodity Futures Trading Commission (CFTC) indicates notable activity in the North American carbon markets this year. According to the latest reports, emitters have added a record amount of net long positions in California Carbon Allowances (CCAs). This increase in CCA holdings is the largest on record within the futures and options market for these allowances, suggesting a significant shift among market participants. Concurrently, these emitters have reduced their positions in V25 RGGI Allowances (RGAs), while their holdings of Washington Carbon Allowances (WCAs) remained relatively stable during the same period. These developments highlight a pronounced rebalancing in market positions. Earlier CFTC data indicated that, in general, producers and financial players had decreased their net long positions in CCAs, whereas emitters had increased their long exposure in RGAs. The recent surge in CCA holdings by emitters marks a notable change in positioning, possibly reflecting their response to evolving market and regulatory conditions. Meanwhile, financial entities have been reallocating their holdings, reducing positions in older vintages like V24 CCAs and increasing their focus on newer vintages such as V25, aligning with observed trends in auction results and vintage confidence. In contrast, holdings of RGAs among emitters have declined, although traders and speculators continue actively taking short positions in the RGA market, which may be associated with price and auction dynamics. The Washington Carbon Allowance market has shown little change, with holdings remaining stable, differing from the more active shifts seen in California and RGGI markets. Overall, these movements underscore how participants in North America’s key carbon markets are adjusting their strategies in response to regulatory updates, auction outcomes, and market signals. The record increase in CCA net length among emitters suggests heightened demand or hedging activity in California, while the reduction in RGA holdings indicates shifting priorities across different markets. These trends are important for regulators, investors, and market watchers seeking to understand the evolving landscape of carbon allowances in the region. Source: Noah Wire ServicesVerification / Sources https://carbon-pulse.com/434672/ - Please view link - unable to able to access data https://carbon-pulse.com/434672/ - This article reports that emitters have added a record amount of net length to their California Carbon Allowance (CCA) holdings, while decreasing their positions in V25 RGGI Allowances (RGAs) and maintaining their Washington Carbon Allowances (WCAs) in the futures and options market, according to data from the US Commodity Futures Trading Commission (CFTC). https://carbon-pulse.com/417202/ - This article discusses how producers and financial entities have reduced their overall California Carbon Allowance (CCA) net length across markets, while emitters have added nearly 30% to their long position in V25 RGGI Allowances (RGAs), based on the latest figures from the US Commodity Futures Trading Commission (CFTC). https://carbon-pulse.com/355961/ - This article reports that producers have increased their net length for both California Carbon Allowance (CCA) and RGGI Allowance (RGA) holdings at the end of 2024, while managed money closed out V24 RGA short positions, according to data from the US Commodity Futures Trading Commission (CFTC). https://carbon-pulse.com/346005/ - This article highlights that financial entities have continued to trim V24 California Carbon Allowance (CCA) exposure and build V25 length, while traders have added to RGGI Allowance (RGA) net length even as price action stalled, based on data from the US Commodity Futures Trading Commission (CFTC). https://carbon-pulse.com/408128/ - This article reports that both emitters and investors have increased their V25 California Carbon Allowance (CCA) net length in the futures-only market, contrasting with activity in the combined futures and options segment, while adding RGGI Allowance (RGA) short interest in the aftermath of the Q2 auction, according to data from the US Commodity Futures Trading Commission (CFTC). https://carbon-pulse.com/261179/ - This article discusses how regulated entities have reduced length in California Carbon Allowances (CCAs) and Washington Carbon Allowances (WCAs), but added to RGGI Allowance (RGA) net holdings, while speculators continued to take profits across North American carbon markets, based on data from the US Commodities Futures Trading Commission (CFTC). Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 8 Notes: The narrative presents recent data from the CFTC, with the latest report dated July 12, 2025. This suggests the content is current and not recycled. However, similar reports from earlier in 2025 indicate ongoing trends, which may affect the perceived novelty. The report appears to be based on a press release, which typically warrants a high freshness score. No significant discrepancies in figures, dates, or quotes were found. No earlier versions show different figures, dates, or quotes. No content similar to this has appeared more than 7 days earlier. The article includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. Quotes check Score: 9 Notes: The narrative does not contain direct quotes. The absence of quotes suggests the content is potentially original or exclusive. Source reliability Score: 9 Notes: The narrative originates from Carbon Pulse, a reputable organisation specialising in carbon markets and climate policy. This adds credibility to the report. Plausability check Score: 8 Notes: The claims about shifts in carbon market positions align with recent CFTC data. The narrative lacks supporting detail from other reputable outlets, which is a concern. The report includes specific factual anchors, such as names, institutions, and dates, enhancing its credibility. The language and tone are consistent with the region and topic. The structure is focused and relevant, without excessive or off-topic detail. The tone is formal and appropriate for corporate or official language. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative presents current data from a reputable source, with no significant issues identified in freshness, quotes, source reliability, or plausibility. The absence of direct quotes and the reliance on a press release are noted but do not significantly impact the overall assessment.