TL;DR

SEC exempts most liquid staking tokens; CFTC, FCA expand access; major ETF outflows despite corporate crypto buys.

Highlights

• SEC clarified most liquid staking tokens (e.g., stETH, JitoSOL) are not securities, easing ETF integration and protocol operations1.
• SEC launched “Project Crypto,” loosening stablecoin accounting rules and signaling broader regulatory reform for digital assets2.
• CFTC proposed allowing spot crypto trading on U.S. futures exchanges3; UK FCA to permit retail crypto ETNs from October20.
• MicroStrategy bought 21,021 BTC (~$2.5B)5; BitMine and SharpLink now hold over 1.3M ETH, intensifying corporate crypto treasury strategies6.
• Bitcoin rebounded above $115,000; Ethereum surged past $3,700; Solana hit $168 amid renewed risk appetite7.
• U.S. Bitcoin ETFs saw $812M in outflows; Ethereum ETFs had a record $465M outflow after BlackRock sold 101,975 ETH8.
• Ethena Labs’ USDe stablecoin surged 75% to $9.3B market cap, overtaking FDUSD; USDT supply on Solana reached $2B9.
• DeFi lender CrediX suffered a $4.5M exploit due to multisig compromise, freezing deposits and highlighting persistent protocol risks10.
• Bullish, a Peter Thiel-backed exchange, filed for a $629M NYSE IPO at a $4.2B valuation11.
• Blockstream launched Simplicity smart contracts on Liquid, with StarkWare collaboration for Bitcoin scaling12.
• Chainlink released real-time U.S. equities data streams across 37 blockchains, expanding tokenized RWA and DeFi use cases13.
• Coinbase Base network halted block production for 24 minutes14; Solana reported 500+ days uptime; Coinbase enabled PayPal crypto payments in Canada18.
• Binance accelerated new token launches and spot-listed Succinct’s PROVE; rival exchanges supported coordinated listings15.
• Phantom acquired SolSniper, expanding Solana wallet trading features; reflects trend toward integrated DeFi/trading platforms16.
• CrowdStrike reported North Korean operatives using AI to infiltrate 320+ firms and steal crypto19.

Commentary

Regulatory clarity dominated the session, with the SEC confirming that most liquid staking tokens are not securities1 and easing stablecoin accounting rules under “Project Crypto”2. This removes key hurdles for staking protocols, custodians, and ETF issuers, particularly for Ethereum and Solana -based products1. The CFTC’s move to open spot crypto trading on futures exchanges3, alongside the UK FCA’s reversal on retail crypto ETNs20, signals a coordinated push to expand regulated market access in both the U.S. and UK.

Despite positive regulatory signals, ETF flows turned sharply negative. Bitcoin ETFs saw $812M in outflows, and Ethereum ETFs posted a record $465M single-day withdrawal, led by BlackRock’s sale of 101,975 ETH8. These outflows contrast with strong corporate accumulation—MicroStrategy added $2.5B in BTC 5, while BitMine and SharpLink pushed combined ETH holdings above 1.3M6. This divergence suggests institutional and on-chain buyers remain active, while ETF investors are taking profits or repositioning8.

On-chain activity and infrastructure innovation remain robust. Ethena’s USDe stablecoin surged to $9.3B market cap, and USDT supply on Solana hit $2B, reflecting growing demand for stablecoins and yield products9. Chainlink ’s launch of real-time U.S. equities data streams across 37 blockchains13 and Blockstream’s Simplicity smart contracts on Liquid12 expand the range of DeFi and RWA applications. Meanwhile, Phantom’s acquisition of SolSniper16 and Binance’s aggressive token launches15 highlight competition for trader engagement on high-throughput chains.

Security and operational risks persist. DeFi lender CrediX was exploited for $4.5M due to multisig compromise10, and Coinbase ’s Base network experienced a 24-minute outage14. CrowdStrike ’s report on North Korean crypto thefts underscores ongoing cyber threats19. Traders should remain alert to protocol and infrastructure risks, even as regulatory and product developments drive new capital and users into the ecosystem.