In today's crypto news, we see a continued trend of major players entering the crypto space, regulatory shifts, and the ongoing challenge of privacy and security.
Stripe's private testnet launch of its payments-focused blockchain, Tempo, signals a significant shift in the crypto landscape. Designed for stablecoin payments, Tempo's entrance could potentially expand the overall crypto market and bring more users on-chain, highlighting the growing institutional interest in blockchain technology.
Meanwhile, Qubic's attempts to 51% attack the privacy blockchain Monero underline the ongoing security challenges in the crypto space. The Monero community's exploration of defensive measures, such as the introduction of masternodes, underscores the importance of robust security protocols in maintaining blockchain integrity.
On the regulatory front, Rex Shares' unique approach to expedite the launch of its unconventional ETFs, including a Dogecoin ETF, demonstrates how regulatory navigation can impact market entry. However, the C-corporation structure has significant tax implications, highlighting the need for careful consideration of regulatory compliance in fund structuring.
The rise of cryptocurrency-related abductions in France and globally is a sobering reminder of the darker side of crypto's anonymity and portability. As the crypto market continues to grow, it's crucial for legal and financial professionals to stay abreast of these risks and develop robust security measures to protect their clients.
In the US, Nasdaq's new requirement for shareholder votes prior to stock issuances used for cryptocurrency purchases adds another layer of scrutiny to the burgeoning "crypto-treasury" trend. This development emphasizes the need for companies considering such moves to factor in these exchange rules in their planning.
These developments underscore the evolving nature of the crypto space, with major players entering the market, ongoing security challenges, and regulatory shifts shaping its future. As legal and financial professionals navigate this landscape, staying informed and strategic will be key to successfully leveraging the opportunities and mitigating the risks inherent in this dynamic sector.
The following article summaries have been sourced from Decrypt, CryptoSlate, NewsBTC, and Crypto Briefing. Each summary includes a direct link to the original source.
Qubic, the AI protocol that attempted a 51% attack on privacy coin Monero, has released its AI model, AIGarth, which has been widely criticized for its inability to solve basic math problems. The AI model, also known as ANNA, has been publicized via a social media account, where it has been responding to users' queries, often nonsensically or with incorrect mathematical solutions. Despite the ridicule, Qubic's founder, Sergey Ivancheglo, defends AIGarth's errors as part of its learning process, arguing that the model uses intelligence rather than memory to solve problems, unlike most humans who have memorized basic math principles.
AIGarth is being trained through a unique method, where miners on Qubic use their computational power to generate artificial neural networks (ANN) to compress and decompress data. An ANN called Teacher then analyzes the performance of the generated networks and modifies them to improve their efficiency. Qubic's ultimate goal is to create a succession of Teachers, leading to what it calls "true AI," or artificial general intelligence. Despite these ambitious plans, Qubic's token has seen a 7.7% drop to a $266 million market cap over the past week, following AIGarth's public failures.
Meanwhile, Qubic continues to make headlines with its attempts to 51% attack the privacy blockchain Monero. Qubic, a proof-of-work blockchain, splits its resources between mining Monero and training its AIGarth model, in a process it calls "Useful Proof-of-Work." The Monero community is currently exploring ways to defend itself against Qubic’s ongoing attacks, including the potential introduction of masternodes. However, Ivancheglo believes Monero’s only options are to transition to a proof-of-stake consensus mechanism or eventually fall under Qubic’s control.
Stripe, in collaboration with Paradigm, has announced the private testnet launch of its payments-focused blockchain, Tempo. The blockchain, which is designed specifically for stablecoin payments, aims to handle over 100,000 transactions per second with sub-second finality. It also features Ethereum Virtual Machine (EVM) compatibility and a model that allows fees to be paid in any stablecoin. The intended use cases for Tempo include global payouts, payroll, remittances, micro-transactions, tokenized deposits, embedded accounts, and agentic payments. Stripe CEO Patrick Collison expressed hope that Tempo will simplify on-chain transactions for these use cases.
The launch of Tempo is significant as it signifies the entrance of major players into the crypto space. The blockchain's design is optimized for payments, a major real-world use case for cryptocurrencies. This is in contrast to many of today's big chains, which are optimized for trading. If successful, Tempo could make on-chain dollars the default medium for payouts and commerce. This could potentially expand the overall crypto market and bring more users on-chain. However, this does not necessarily imply that the value of your favorite L1 blockchain's token will increase.
French authorities have detained seven individuals in connection with the kidnapping of a 20-year-old Swiss man, marking the latest incident in a rising trend of cryptocurrency-related abductions in the country. The victim was rescued in Valence during a special operation involving 150 gendarmes. The case is part of a series of "wrench attacks" in France, where kidnappers target affluent crypto traders, executives, or their families to extort digital assets. Security experts have warned that France is now the European epicenter for such incidents, with at least 10 wrench attacks recorded in 2025, nearly a quarter of the 48 reported globally this year.
However, this issue extends beyond France, as criminal groups worldwide are capitalizing on the anonymity and portability of cryptocurrencies to extort victims. Both those involved in the crypto industry and other wealthy individuals are targeted, with kidnappers demanding ransoms in crypto. Incidents include the kidnapping and subsequent murder of Chinese-Filipino steel magnate Anson Que after a $20 million crypto ransom demand, and a Spanish businessman in Brazil who was drugged and held for five days while criminals demanded a $50 million ransom.
Rex Shares, an asset management firm, is planning to introduce a series of unconventional exchange-traded funds (ETFs) to the US markets, including a Dogecoin ETF. The firm filed a prospectus with the Securities and Exchange Commission (SEC) on September 3 for the REX-Osprey Dogecoin ETF, which will trade under the ticker DOJE. The filing also referred to similar products linked to other cryptocurrencies such as XRP, Solana, Ethereum, Bitcoin, BONK, and TRUMP tokens. Bloomberg ETF analyst Eric Balchunas noted that the filing indicates a potential launch of these products in the coming days.
Rex Shares has taken a unique regulatory approach to expedite the launch of these ETFs. The proposed products are registered under the Investment Company Act of 1940 and structured as C-corporations, which allows the firm to bypass the standard exchange rule approval process. This model also enables the firm to gain exposure to digital assets through a Cayman Islands subsidiary. However, the C-corporation structure has significant tax implications for investors, as it results in taxation at the fund level and any subsequent investor payouts are also taxable. Despite the potential tax drawbacks, Rex Shares' decision suggests that the speed to market and flexibility outweigh these concerns.
Nasdaq has introduced a new requirement for shareholder votes prior to stock issuances used for cryptocurrency purchases. This new rule is seen as an added checkpoint for public companies that sell equity or convertibles to buy tokens for their balance sheets. This development is in line with Nasdaq’s Rule 5635, which already mandates shareholder approval in several situations such as private placements reaching the 20 percent threshold and certain change-of-control or acquisition structures. Nasdaq's enforcement arm has emphasized its mandate to ensure compliance with exchange rules and federal securities laws.
The timing of this new rule is significant given the recent surge in "crypto-treasury" pivots that have reshaped small-cap capital markets. Architect Partners has tracked 184 public companies that have disclosed plans to raise over $132 billion for token purchases, many of which are listed on Nasdaq. The new rule has had an immediate impact on the market, with crypto-treasury stocks falling during Thursday's session as investors consider the implications of added procedural steps and timing risk. However, the appetite for pure-play exposure remains strong, as evidenced by American Bitcoin's successful debut on Nasdaq.
The regulatory landscape is also shifting, with the SEC releasing a rulemaking agenda that suggests a broader framework for digital assets. Proposed legislation in the House and Senate would clarify jurisdiction between the SEC and CFTC and set timelines for implementing new rules. Nasdaq's new rule does not ban crypto treasuries but adds an additional layer of scrutiny by requiring many financings to go through a vote, which could impact deal cadence and pricing outcomes. Companies considering PIPEs, convertibles, or related-party structures will need to factor in these exchange rules in their planning.
Chinese Bitcoin mining firm, Cango, has reported a significant increase in Bitcoin production in Q2 2025, despite higher expenses leading to a substantial net loss. The company mined 1,404.4 BTC between April and June, bringing its total production since inception to 3,879.2 BTC. The average cost per coin, excluding depreciation, was $83,091, with the total cost reaching $98,636 after accounting for additional expenses. The increased output resulted in quarterly revenues of RMB 1 billion ($139.8 million), with Bitcoin mining contributing RMB 989.4 million ($138.1 million). However, the company reported a net loss of RMB 2.1 billion ($295.4 million), a significant downturn from the net profit of RMB 86 million in the same period the previous year.
In the same quarter, Cango increased its mining capacity to 50 EH/s through an 18 EH/s acquisition, which boosted July production by 44% to 650.5 BTC compared with June. CEO Paul Yu described the quarter as a turning point for the company, attributing the success to a shift to an asset-light model. This model, which focuses on acquiring plug-and-play mining rigs rather than heavy infrastructure, has allowed the company to scale faster and maintain flexibility. Cango is also expanding its operations beyond China, acquiring a 50-megawatt mining facility in Georgia, USA, in August. The move is aimed at mitigating energy price volatility and strengthening long-term infrastructure. The company plans to use the site as a model for future expansions, integrating renewable storage systems and developing a platform that balances Bitcoin mining, high-performance computing, and green-power trading.
The first US exchange-traded fund (ETF) offering exposure to Dogecoin (DOGE) could be launched as early as next week. The ETF Opportunities Trust filed a post-effective amendment setting September 9, 2025, as the effective date for a suite of single-coin funds, including the REX-Osprey DOGE ETF (ticker: DOJE). The filing also mentioned proposed TRUMP, BTC, XRP, and BONK funds. Market expectations were heightened by a teaser from the issuer, REX Shares, which stated that DOJE would be the first ETF to provide investors exposure to the performance of Dogecoin.
The DOJE ETF is viable due to its structure. It sits within a '40-Act open-end ETF registration under the ETF Opportunities Trust, the same framework REX-Osprey used to list its Solana fund (SSK) earlier this summer. The fund may use derivatives and a wholly owned Cayman subsidiary to hold positions, subject to a 25% cap to preserve RIC tax treatment. The SSK fund, which listed in early July, quickly gathered assets and trading activity, crossing $100 million AUM within weeks. The September 9 effectiveness designation supports the "next week" launch expectation.
ETFs can influence spot markets through primary-market creations and redemptions when net inflows require the sponsor to source the underlying exposure. Solana's spot price rose roughly 34% after SSK's launch, with SSK racing to $100 million+ AUM in its early weeks. This precedent could be relevant for DOGE if DOJE lists and attracts sustained creations. In such a scenario, the fund complex would need to acquire DOGE coins or DOGE-linked exposures to meet primary-market demand, potentially tightening available float at the margin. At press time, DOGE traded at $0.216.
Public companies now hold over 1 million Bitcoin ($BTC), marking a significant milestone for the corporate Bitcoin sector. According to data from BitcoinTreasuries, publicly traded companies now have over $111 billion in $BTC assets. The leading company is Strategy, owned by Michael Saylor, with 636K $BTC, followed by MARA Holdings with 52K $BTC. While MARA has transitioned from a mining company into the treasury world, many mining firms chose to liquidate their $BTC holdings during the 2022 bear market. However, the most substantial holders for $BTC continue to be exchanges and ETFs, holding a combined 1.62M BTC.
The article also highlights three promising crypto projects: Bitcoin Hyper ($HYPER), Snorter ($SNORT), and Ethereum ($ETH). Bitcoin Hyper is a Layer-2 solution for the Bitcoin network that uses a Solana Virtual Machine (SVM) with ZK rollups to increase payment speeds and lower transaction fees. Snorter Token powers Snorter Bot, a Solana meme coin sniping bot that trades crypto automatically. Ethereum, the world's second-largest cryptocurrency, is a decentralized blockchain that allows for the execution of verified on-chain code and powers an entire ecosystem of dApps.
Despite current uncertainty in the $BTC market, large Bitcoin holders like Strategy are committed to weathering the low moments and reaping the rewards when it rises again. The continued expansion of Bitcoin treasuries is expected to attract more retail and institutional investors to invest in $BTC, bringing more capital into the crypto space as a whole. As with all crypto investments, potential investors are advised to conduct thorough research and only invest what they are prepared to lose.
American Bitcoin, a mining company linked to President Donald Trump's sons, Eric and Donald Trump Jr., concluded its first day of trading on the Nasdaq with a 16.75% increase, closing at just over $8. The stock saw further gains in after-hours trading, rising an additional 6% to $8.50. The company, which was formed through a merger with Gryphon Digital Mining, experienced significant price volatility on its debut day, with the stock price swinging from a high of $13.21 to a low of $6.70. Despite this, Eric Trump's 7.5% stake in the company was estimated to be worth around $548 million by the end of the session.
The company plans to adopt a dual strategy of mining and buying Bitcoin, depending on which approach is more profitable at any given time. The company's treasury currently holds 2,443 BTC, making it the 25th-largest Bitcoin holder among public companies. With Bitcoin trading above $112,000, this holding is valued at approximately $275 million. Eric Trump stated that the company aims to maximize shareholder value by balancing mining output and market purchases.
The launch of American Bitcoin has raised questions about whether the company benefits from President Trump's crypto-friendly stance. Eric Trump denied that his family is profiting from political ties, stating that his father has "nothing to do with this business." The company's debut came shortly after another Trump-linked venture, World Liberty Financial (WLFI), listed its tokens on exchanges. However, WLFI's performance has been weak, with its value dropping 30% from its debut price. Despite this, American Bitcoin's opening has given the Trump family another significant position in the crypto sector.
The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are exploring ways to allow perpetual contracts to trade on US platforms. This is part of a broader initiative to harmonize regulations and bring back crypto-style products to the US markets. The agencies announced a joint roundtable on regulatory harmonization, set for September 29, to focus on reintroducing novel products to the US markets. The move is aimed at addressing regulatory uncertainties that have pushed financial innovation overseas.
The key areas of focus include expanding trading hours for certain markets, providing clarity on prediction markets and event contracts, and developing frameworks to bring perpetual contracts onshore. The agencies are also considering portfolio margining opportunities to reduce capital inefficiencies and are contemplating innovation exemptions for decentralized finance (DeFi) protocols. The regulators are open to creating safe harbors that would allow market participants to engage in peer-to-peer trading of spot crypto assets and derivatives over DeFi protocols, while still maintaining investor protections. The SEC and CFTC recently released guidance that enables US-registered exchanges to offer spot trading of specific crypto tokens, positioning the US as a potential hub for crypto market activities.
Crypto protocol Hyperliquid has announced plans to slash spot trading fees by 80% and initiate an on-chain validator vote for its USDH stablecoin ticker, according to a statement released on Discord. The protocol aims to enhance liquidity and user experience by reducing taker fees, maker rebates, and user volume contributions for spot pairs between two spot quote assets in its upcoming network upgrade.
The USDH ticker, currently owned by Hyperliquid, will be made available through an on-chain validator voting process. Teams interested in acquiring the ticker will need to submit proposals, including their deployment address, and participate in a spot deploy gas auction. Validators will use Hyperliquid L1 transactions to approve a user address for purchasing the USDH ticker, following a similar mechanism used for delisting votes. Hyperliquid is seeking teams that can develop a compliant USD stablecoin that aligns with its platform. Future plans also include making spot quote assets permissionless, starting with a testnet implementation, with staking requirements and slashing criteria to be announced later.
Tether, the leading stablecoin issuer, is reportedly considering investments in the gold mining industry as part of its diversification strategy. The company, which operates both USDT and XAUt tokens, is said to have engaged with mining and investment groups, including Terranova Resources, to discuss potential investment opportunities. However, no agreement has been reached yet. This comes after Tether spent around $82 million to acquire a controlling stake of nearly 38% in Elemental Altus Royalties Corp, a Toronto-listed gold royalty company. The acquisition was completed in June through share purchases from existing shareholders.
Tether CEO Paolo Ardoino has been vocal about his support for gold, describing it as a safer and more reliable asset than any national currency. He has even referred to gold as "natural Bitcoin," stating that while many Bitcoiners consider Bitcoin to be "digital gold," he personally views gold as "Bitcoin in nature." Tether currently holds $8.7 billion in gold bars stored in a Zurich vault as collateral for one of its stablecoins. The company also issues USDT, the largest dollar-pegged stablecoin with a market capitalization of about $168 billion. In the second quarter of the year, Tether reported a net profit of $4.9 billion, fueled by gains in Bitcoin and gold.
