US Crypto Policy Shift Sparks Influx of Businesses
Government officials champion a new era for digital assets, encouraging companies to establish operations domestically.
Key Development
SEC Chair Paul Atkins urged a return of crypto enterprises to American soil, signaling a supportive regulatory climate. “Reshore the crypto businesses that fled,” Atkins stated at a policy institute event, aligning with the Trump administration’s goal to position the U.S. as a global digital asset leader.
SEC Chair Paul Atkins called for crypto businesses to return to the US.Treasury Secretary Scott Bessent declared the U.S. in a “golden age of crypto,” directly inviting innovation. “Start your companies here. Launch your protocols here. And hire your workers here,” Bessent encouraged builders.
Project Crypto Aims to Modernize Digital Asset Rules
The SEC has launched “Project Crypto,” an initiative to update regulations for the evolving digital finance landscape. This effort stems from recommendations by the President’s Working Group on Digital Asset Markets.
The SEC's "Project Crypto" aims to clarify digital asset regulations.Atkins proposed streamlining licensing for brokerages to handle multiple asset classes and establishing a clear market structure that distinguishes commodities from securities. He also advocated for regulatory exemptions for early-stage crypto projects to foster innovation without the threat of legal repercussions.
Corporate Adoption Signals Growing Interest
A Deloitte survey indicates significant long-term interest in cryptocurrency among chief financial officers. Nearly all CFOs at billion-dollar firms anticipate using crypto, with 23% expecting treasury departments to engage in crypto investments or payments within two years.
CFOs see long-term value in cryptocurrency adoption.Despite this outlook, concerns regarding price volatility, accounting complexity, and regulatory uncertainty persist among finance leaders.
UK Regulator Lifts Ban on Crypto ETNs
The United Kingdom’s Financial Conduct Authority (FCA) has removed its prohibition on retail investors accessing cryptocurrency exchange-traded notes (cETNs). Companies can now offer these products, with the changes taking effect October 8. This move follows an initial ban in January 2021.
The UK's FCA has reversed its ban on crypto ETNs for retail investors.“Since we restricted retail access to cETNs, the market has evolved, and products have become more mainstream and better understood,” explained David Geale, FCA executive director of payments and digital finance.
CoinDCX Employee Arrested in Hack Investigation
An employee of cryptocurrency exchange CoinDCX was reportedly apprehended in India in connection with a $44 million hack in mid-July. Software engineer Rahul Agarwal was detained after allegations that hackers accessed his credentials to steal exchange assets.
An employee of CoinDCX has been arrested in connection with a major hack.During questioning, Agarwal denied involvement in the theft but acknowledged holding part-time positions with other clients.
Market Movers and Shakers
This week, Bitcoin traded at $113,936, Ether at $3,527, and XRP at $3.01, with the total market capitalization reaching $3.71 trillion. Among the top 100 cryptocurrencies, Four (FORM) saw a 12.96% increase, followed by Toncoin (TON) at 11.49%, and Story (IP) at 10.00%. Conversely, Fartcoin (FARTCOIN) dropped 30.55%, Bonk (BONK) fell 28.08%, and Virtuals Protocol (VIRTUAL) declined 23.03%.
Quote
“We believe that we’ll be able to accumulate more Ether — per fully diluted share — much faster than any other Ethereum-based project, or certainly faster than the Bitcoin-based projects.”
—Joe Lubin, CEO of Consensys and chairman of SharpLink Gaming
Prediction
XRP’s price shows potential for a 20% rally in August, indicated by bullish divergence on its four-hour chart. This pattern suggests that selling pressure may be waning, potentially leading to a trend reversal.
FUD Watch
Cryptocurrency hacks in July totaled over $142 million across 17 incidents, with the CoinDCX exploit being the most substantial. This marks a 27% increase from June, though it remains significantly lower than the $266 million lost in July of the previous year.
Trial for Tornado Cash Co-Founder Continues
Jurors are deliberating the fate of Roman Storm, a co-founder of the cryptocurrency mixing service Tornado Cash. Prosecutors allege Storm conspired to launder money and violated U.S. sanctions, with potential penalties of up to 40 years in prison. The case could establish a precedent for developer liability concerning decentralized software used for illicit purposes.
Indonesia Updates Crypto Tax Regulations
The Indonesian government has revised its tax policies for the crypto sector, increasing levies for traders and miners while eliminating value-added tax for buyers. The income tax on crypto asset sales via domestic exchanges has risen from 0.1% to 0.21%, with steeper increases for sales on foreign exchanges.
Key Magazine Stories
Ethereum is charting a course to achieve 10,000 transactions per second using ZK technology, detailing how zkEVMs and real-time proving will scale the network globally. Meanwhile, an “Asia Express” report highlights China’s commentary on U.S. crypto policies and the infrastructure shared between Huione and emerging Telegram dark markets. Additionally, AI research reveals that artificial intelligences can embed hidden messages, potentially influencing their preferences, such as developing an affinity for owls or other ideologies.
