27 terms, in alphabetical order. Each entry is a short definition followed by links to the ChainBrief reporting that shows the idea in action. For who makes the rules, see our Who's Who in crypto regulation, and for side-by-side comparisons see Compare.
Automated market maker (AMM) · Blockchain node · Bridge (cross-chain bridge) · CASP (crypto-asset service provider) · Centralized exchange (CEX) · CLARITY Act · Cloture · Cost basis and Form 1099-DA · Custodian · Event contract (prediction market) · Exemptive relief · GENIUS Act · Harvest now, decrypt later · Layer 2 (L2) and sequencer · Mixer · Multisig (multi-signature) · National trust bank charter · Perpetual futures (perps) · Pig butchering · Safe harbor · Sanctions designation (SDN list) · Self-hosted wallet · Spot ETF · Stablecoin · Tokenization · Virtual asset service provider (VASP) · Wrapped token
Automated market maker (AMM)
A trading venue that prices assets with a mathematical formula and a pool of tokens instead of matching buy and sell orders from a list. Anyone can trade against the pool, and anyone can supply tokens to it in exchange for a share of the fees. AMMs are the engine behind most decentralized exchanges, and they are the venues the SEC's tokenized-stock relief was written for. See the SEC's tokenized-stock framework.
Blockchain node
A computer that runs a blockchain's software, stores a copy of its ledger, and checks new transactions against the network's rules. Nodes are what make a blockchain verifiable without a central operator. Different node types do different jobs, from fully validating every block to just serving data to applications. See our node explainer.
Bridge (cross-chain bridge)
A system that lets value move between two blockchains, usually by locking an asset on one chain and issuing a matching claim on the other. Because a bridge typically concentrates a lot of value behind one set of keys or one contract, bridges have been a recurring target for large hacks. Some newer designs, such as Sui's Hashi, try to avoid bridging by leaving the original asset where it is.
CASP (crypto-asset service provider)
The EU's legal term, under MiCA, for a business that provides crypto services to customers. The services include holding crypto for clients, operating a trading platform, exchanging crypto for money or for other crypto, executing or passing on orders, placing tokens, giving advice, managing portfolios, and transferring crypto for clients. A CASP must be authorized by a national regulator and can then serve customers across the European Economic Area. Everyday words such as exchange, broker and custodian describe what a firm does; CASP is the license category. See our MiCA explainer.
Centralized exchange (CEX)
An industry term for a trading platform run by a company that holds customers' funds and matches orders on its own system, as opposed to a decentralized exchange, where users trade from their own wallets through smart contracts (see automated market maker). It is a label, not a legal category. Under MiCA, a centralized exchange serving EU customers is generally a CASP authorized for several services at once, such as custody, operating a trading platform and exchange. See our MiCA explainer.
CLARITY Act
The crypto market-structure bill meant to settle which U.S. agency oversees which digital assets, chiefly by dividing authority between the SEC and the CFTC. Its Senate cloture vote failed 49-50 on September 15, 2026, and the agencies said they would proceed with their own rules. See what happened next and whether CLARITY is dead. Compare: SEC vs. CFTC.
Cloture
The Senate procedure for ending debate on a bill so it can come to a vote. Cloture on most legislation takes 60 votes, which is why a bill with a simple majority of support can still stall. See our cloture explainer.
Cost basis and Form 1099-DA
Cost basis is what you originally paid for an asset, and it determines your taxable gain or loss when you sell. Form 1099-DA is the IRS form on which crypto exchanges now report customers' sale proceeds, but the reporting gap that matters is that exchanges are not required to report cost basis, leaving filers to reconcile it themselves. See our 1099-DA breakdown.
Custodian
A regulated firm that holds assets on behalf of someone else and is responsible for safeguarding them. In crypto, custodians hold digital assets, and for stablecoins they often hold the reserve assets, such as Treasuries, behind the token. Who the custodian is, and what it checks, is a recurring oversight question, as in the Senate letter to Tether's U.S. custodian. In the EU, holding crypto for clients is one of the services a CASP can be authorized to provide under MiCA.
Event contract (prediction market)
A contract that pays out depending on whether a real-world event happens, such as an election result or a game outcome. Platforms like Kalshi and Polymarket list these, and the legal fight is over whether they are federally regulated derivatives or unlicensed gambling. See the CFTC's reversal on prediction markets.
Exemptive relief
A tool the SEC uses to exempt a defined activity from rules that would otherwise apply, without going through full notice-and-comment rulemaking. It is fast and flexible, but a future SEC can narrow or revoke it without Congress. See our exemptive-relief explainer.
GENIUS Act
The federal law creating a framework for payment stablecoins, covering reserves, redemption, and who may issue them. It takes effect January 18, 2027, or 120 days after final implementing rules, whichever comes first. See the Fed's proposed rulebook. Compare: GENIUS Act vs. MiCA.
Harvest now, decrypt later
A strategy in which an attacker records encrypted or exposed data today, planning to break it once quantum computers are powerful enough. For Bitcoin, the concern is addresses whose public keys are already visible on-chain. See the EU's quantum warning.
Layer 2 (L2) and sequencer
A layer-2 is a separate network that processes transactions off a base blockchain, such as Ethereum, and posts results back to it. The sequencer is the component that orders those transactions, and many L2s still run a single, centralized one. See the debate over which L2s deserve to exist.
Mixer
A service that pools and re-sends cryptocurrency so that the link between sender and recipient is harder to trace. Regulators cite mixers' use in laundering stolen funds, while privacy advocates note lawful uses. See FinCEN's profile for the October 2026 withdrawal of its mixing proposal.
Multisig (multi-signature)
A wallet or vault that requires more than one key to approve a transaction, such as two of two or three of five. It removes the single point of failure of one key, but concentrates trust in whoever holds the required keys. See how Hashi's vault uses one.
National trust bank charter
A federal charter from the OCC that lets a company custody assets under federal oversight but not take deposits or make loans like a commercial bank. Several crypto firms have sought one. See the charter race and the OCC's profile. Compare: trust charter vs. bank charter vs. state license.
Perpetual futures (perps)
A derivative that tracks an asset's price with no expiry date, kept near the spot price through periodic funding payments between traders. They dominate crypto derivatives volume, and 'perp DEXs' offer them on decentralized platforms. See our piece on Aster.
Pig butchering
A long-con scam in which a fraudster builds a relationship, often romantic, over weeks or months before steering the victim into a fake investment platform. FinCEN tied nearly $13 billion in activity to suspected digital-asset investment scams. See the FinCEN analysis.
Safe harbor
A rule providing that if you meet stated conditions, you are treated as compliant. The SEC's proposed Regulation Crypto Assets includes a conditional safe harbor under which a crypto asset can fall outside the 'investment contract' definition. See the SEC proposal.
Sanctions designation (SDN list)
When a government names a person, company, or network as a sanctions target, freezing its assets and barring others from dealing with it. In the U.S., OFAC maintains the Specially Designated Nationals (SDN) list, and has included digital-currency addresses on it. See OFAC's profile and the U.K.'s latest crypto sanctions.
Self-hosted wallet
A wallet you control yourself, rather than one held for you by an exchange or custodian. Also called an unhosted or non-custodial wallet. FinCEN once proposed identity-verification and reporting rules for certain transfers involving them, and withdrew that proposal in October 2026. See FinCEN's profile. Compare: hardware vs. software vs. custodial wallets.
Spot ETF
An exchange-traded fund that holds the actual underlying asset, such as bitcoin, rather than futures contracts on it. Shares trade on a stock exchange, so investors get price exposure without holding the asset directly. See U.S. spot bitcoin ETF flows and Thailand's new listings. Compare: spot ETF vs. staking ETF.
Stablecoin
A cryptocurrency designed to hold a steady value, usually one U.S. dollar, typically by being backed by reserve assets. Stablecoins are widely used for trading, payments, and remittances. See why they are becoming financial infrastructure and their role in Latin American remittances. Compare: GENIUS Act vs. MiCA.
Tokenization
Representing a real-world asset, such as a stock, bond, or fund share, as a token on a blockchain. Done properly the token carries the legal rights of the underlying asset, which is different from a synthetic token that merely tracks its price. See the state of the tokenization market.
Virtual asset service provider (VASP)
The term the Financial Action Task Force, the global anti-money-laundering standard setter, uses for businesses that exchange, transfer, safekeep or administer virtual assets, or provide related financial services. Many countries, including EU members before MiCA, registered crypto firms as VASPs under anti-money-laundering rules. A VASP registration is not a MiCA authorization; the EU's equivalent license category is the CASP. See our MiCA explainer.
Wrapped token
A token on one blockchain that represents an asset from another, backed by that asset held in reserve, such as a bitcoin-backed token on Ethereum. The token is only as trustworthy as whoever holds the backing asset. See Hashi's alternative design.
Frequently asked
What is the best way to use this glossary?
Each entry gives a short, plain-language definition and links to the ChainBrief articles that show the term in action. Use the alphabetical list to find a term, then follow its links for the full news context.
How often is the glossary updated?
We add terms as new concepts show up in our reporting and revise entries when laws, dates, or facts change. The page shows the date it was last reviewed.
Is this financial or legal advice?
No. These are general educational definitions. Nothing on ChainBrief.news is financial, legal, or tax advice.