In the face of potential U.S. government shutdown, the crypto market has demonstrated resilience, with Solana, Dogecoin, and Cardano outpacing the broader market. This suggests a maturing market, less susceptible to external shocks. The upcoming Federal Open Markets Committee (FOMC) meeting could impact risk-on assets like crypto, but the market seems to be discounting this risk. This could signal a shift in the perception of crypto as an alternative asset class, decoupled from traditional market forces.
The recent surge in institutional interest in XRP and Solana futures, with open interest surpassing $1 billion, represents a significant broadening of the "regulated stack". This trend could facilitate the migration of liquidity to regulated exchanges like CME, making it easier for traditional desks to justify allocations to cryptocurrencies.
The White House's withdrawal of Brian Quintenz's nomination to chair the Commodity Futures Trading Commission (CFTC) highlights the complex dynamics between traditional finance, digital assets, and regulatory bodies. The next nominee will need to balance investor protection with maintaining U.S. competitiveness, particularly as lawmakers consider giving the CFTC direct authority over cryptocurrency.
Meanwhile, the investigation into the loss of former SEC Chair Gary Gensler's texts during a period of aggressive enforcement against crypto firms underscores the need for regulatory transparency and consistency. As the SEC's role evolves under Paul Atkins, a crypto advocate, it will be critical to maintain open lines of communication with the industry.
Finally, the aggressive Bitcoin accumulation by Tokyo-based firm Metaplanet, now the fourth-largest corporate holder of Bitcoin, signals a growing trend of corporate crypto strategies. This is further supported by the IRS's recent guidelines excluding unrealized gains on Bitcoin from the corporate alternative minimum tax, which could encourage more corporations to build Bitcoin treasuries.
In summary, the crypto market is maturing, with increased institutional interest and regulatory clarity. However, the dynamics between traditional finance, digital assets, and regulatory bodies continue to evolve, requiring legal and financial professionals to stay informed and adaptable.
The following article summaries have been sourced from Decrypt, CryptoSlate, NewsBTC, and Crypto Briefing. Each summary includes a direct link to the original source.
Cryptocurrencies Solana, Dogecoin, and Cardano experienced significant gains on Wednesday, outpacing the broader crypto market. Despite the U.S. Congress failing to pass a resolution to avoid a government shutdown, the crypto market appeared unaffected. Bitcoin exceeded $117,000 for the first time in approximately two weeks, while anticipation grows for a potential 25-basis point rate cut by the Federal Open Markets Committee (FOMC) in October. According to CoinGecko, the overall crypto market capitalization increased by 3.3%, with Solana, Dogecoin, and Cardano posting gains of 6.3%, 7.7%, and 6.6% respectively.
While some analysts had previously suggested that a government shutdown could cause volatility in the crypto markets, others believed any dip would be temporary and could present a buying opportunity. The FOMC's upcoming meeting at the end of October will consider potential adjustments to federal interest rates, which typically impact risk-on assets like equities and crypto. Meanwhile, Bitcoin and Ethereum have seen increases of nearly 4% and 5% respectively. The broader financial market also seemed to disregard the potential shutdown, with the S&P 500 closing near a monthly high on Tuesday.
Analysts have expressed certainty regarding the approval of ETFs linked to assets like Solana, which has positively impacted Solana exchange-traded products already trading. Digital asset manager CoinShares reported inflows of $291 million last week. The recently listed Rex-Osprey SOL + Staking ETF has already attracted $21.5 million worth of inflows this week, with the fund now managing assets worth $349 million.
The White House has unexpectedly withdrawn Brian Quintenz's nomination to chair the Commodity Futures Trading Commission (CFTC), according to Politico. The decision comes less than eight months after former President Donald Trump nominated the ex-commissioner for the role. Quintenz, who later joined venture capital firm Andreessen Horowitz, had support from both traditional finance and the digital asset sector. However, his candidacy faced opposition due to a public dispute with crypto billionaires Tyler and Cameron Winklevoss, and his advisory role at prediction market firm Kalshi.
The Winklevoss twins, co-founders of the Gemini exchange, had urged Trump to reconsider Quintenz's nomination, arguing that he was not aligned with the president's crypto agenda. Gemini has had ongoing issues with the CFTC since 2017, culminating in a $5 million settlement in January this year over allegations of false and misleading statements. The nomination process was further complicated when Quintenz released private texts from Tyler Winklevoss, in which the Gemini co-founder claimed the CFTC had treated his company unfairly. Despite these challenges, industry insiders note that such nominations are rarely decided by a single incident, and factors such as political alignment and industry relationships are equally important.
In the interim, the CFTC will continue to be led by acting Chair Caroline Pham, who has indicated she will step down once a permanent chair is confirmed. The next nominee will need to balance investor protection with maintaining U.S. competitiveness, and apply the same rigor to digital assets as to traditional markets. The CFTC's role has expanded beyond its traditional oversight of commodity markets, with lawmakers considering giving the agency direct authority over cryptocurrency, which would make it one of the most influential financial regulators in Washington.
House Republicans are investigating the loss of nearly a year's worth of text messages from the smartphone of former Securities and Exchange Commission (SEC) Chair, Gary Gensler. The texts were permanently deleted due to agency errors, prompting an oversight investigation into regulatory lapses. The missing communications span from October 2022 through September 2023, a period marked by the SEC's aggressive enforcement push against crypto firms. The Office of the Inspector General report released last month found that despite repeated warnings, IT staff took no action for 62 days, leading to the permanent deletion of the messages.
The House Financial Services Committee, led by Chairman French Hill, has informed current SEC Chair Paul Atkins of the investigation. The committee's letter highlighted that the SEC collected over $400 million in fiscal year 2023 alone from firms for recordkeeping violations, suggesting a double standard. The letter also noted that while Gensler's staff claimed he "usually texted for administrative reasons," the Inspector General review found "multiple instances of substantive, mission-related communications" between Gensler and other senior officials. Coinbase CLO Paul Grewal tweeted that a district court has ordered all parties to appear on October 8 to address the deletion of the texts.
During Gensler's tenure, the SEC launched an industry-wide regulatory assault on crypto firms, authorizing over 100 enforcement actions against major exchanges including Coinbase, Kraken, and Binance. Gensler's approach to the crypto sector was criticized, with him declaring in a June 2023 CNBC interview, "we don't need more digital currency" beyond the U.S. dollar. The SEC is now led by Paul Atkins, a crypto advocate, who has launched "Project Crypto," an initiative to relax regulations on digital assets.
The Chicago Mercantile Exchange's (CME) cryptocurrency business, which was once dominated by Bitcoin, has seen a significant shift with the introduction of XRP and Solana futures. In a short span of time, the open interest for these two futures surpassed $1 billion, a milestone that took Bitcoin and Ethereum much longer to achieve. This threshold is significant as it indicates that institutions are taking these assets seriously in derivatives. The rapid pace at which XRP and Solana futures have crossed this mark suggests a strong institutional demand, rather than just speculative activity.
This development also indicates a broadening of the "regulated stack". Previously, traders seeking to leverage or run basis strategies beyond Bitcoin and Ethereum were forced to use offshore platforms like Binance or OKX. However, CME's introduction of Solana and XRP futures has brought some of this business into its clearinghouse, where collateral rules and accounting treatments are more favorable to funds. This migration of liquidity to CME makes it easier for traditional desks to justify allocations to cryptocurrencies. With the infrastructure now in place, CME could potentially list Solana and XRP options, just as it did with Bitcoin and Ethereum. This would enable the creation of structured products, risk-transfer trades, and possibly even fuel for ETFs.
Metaplanet, a Tokyo-based firm, has become one of the world's largest corporate holders of Bitcoin, with holdings exceeding 30,000 BTC. This milestone was achieved after a series of aggressive purchases, including the addition of 5,268 BTC to its balance sheet at an average price of $116,870, costing around $616 million. This transaction followed a late-September acquisition of 5,419 BTC, the company's largest single buy. These purchases have pushed Metaplanet's total holdings to 30,823 BTC, accumulated at an average cost of $107,912. This surpasses the company's initial target of 10,000 BTC and places Metaplanet as the fourth-largest corporate holder of Bitcoin worldwide.
Metaplanet's aggressive Bitcoin accumulation is matched by its revenue growth. The firm's Bitcoin Income Generation unit reported a Q3 revenue of ¥2.44 billion (~$16.5 million), a 115.7% increase from the previous quarter. As a result, the company has doubled its full-year revenue forecast from ¥3.4 billion (~$23 million) to ¥6.8 billion (~$46 million). Operating profit projections have also been revised upwards from ¥2.5 billion (~$17 million) to ¥4.7 billion (~$32 million), marking an 88% increase from prior estimates. The company's strong financial performance and aggressive accumulation strategy have attracted the attention of global asset managers, with Capital Group, a US firm overseeing $2.6 trillion in assets, becoming Metaplanet's largest shareholder.
David Schwartz, a long-standing figure at Ripple, has announced his decision to step down as the company's Chief Technology Officer after more than thirteen years. Schwartz, who has been a prominent voice in the XRP community, stated that his decision came after a "personal inflection moment" following years of work in the technology sector. He plans to step back from his daily duties at Ripple by the end of the year, but he assured the community that he will not be leaving entirely.
Schwartz intends to run his own XRP Ledger (XRPL) node and share its output data with the larger community. He also plans to explore new XRP use cases beyond Ripple's current focus, hinting at future announcements. To ensure a smooth transition, Schwartz will remain connected to Ripple as Emeritus CTO and has accepted a position on the company's Board of Directors. Despite his resignation, XRP's value rose by more than 3%, nearing the $3 mark, indicating that the news did not negatively impact XRP traders. However, XRP's current trading value is still below its historical peak of $3.84, suggesting potential for future growth.
Bitcoin has managed to reclaim the $115,000 level, indicating a resurgence of bullish momentum after weeks of uncertainty. This comes as traders push back against selling pressure, fostering renewed optimism across the market. However, some analysts warn that despite the recent upside, Bitcoin may still face the risk of a deeper correction as the broader structure remains fragile. The market could be exposed to volatility and downside pressure if Bitcoin fails to hold above $115,000.
Adding to the concerns is the ongoing Bitcoin sales by Galaxy Digital. Even as Bitcoin rises, these sales underscore the complex dynamics at play and temper the optimism around the recent rally. According to top analyst Darkfost, 1,190 BTC were sent mainly to Binance, most likely to be sold. This transaction, worth more than $135 million, indicates that large-scale institutional selling continues even as bulls strive to sustain momentum above $115,000. These heavy sales create an overhang of supply that traders must absorb before a convincing uptrend can take hold.
Bitcoin is currently trading near $116,200 after a sharp rebound from last week’s lows around $109,000. The 8-hour chart shows renewed bullish momentum, with the price now pressing toward the key resistance zone at $117,500. However, the market still faces a pivotal test. A decisive close above $117,500 could invite stronger buying pressure, potentially leading to a run toward $120,000 and possibly retesting the yearly highs near $125,000. Conversely, rejection at this level could trigger profit-taking, dragging the price back toward $114,000 or even $112,000.
Bitcoin and Ethereum are experiencing a rally, with Bitcoin surpassing $116K and Ethereum trading near $4.3K. Amid this, Tapzi, a new cryptocurrency, is gaining attention for its potential to offer 185% returns to early investors who join the presale. Unlike many new coins, Tapzi is focusing on structure, scarcity, and use case, a disciplined approach that is attracting interest. The presale of Tapzi is progressing rapidly, with nearly 42% of the presale already sold. The coin's total supply is capped at 5B, with only 20% allocated for the presale, offering a limited entry point for early participants.
The pricing and unlocking of Tapzi tokens are structured in stages, with potential 3x gains for early buyers before the token even lists. At launch, only 25% of presale tokens vest immediately, with the rest unlocking gradually over the next three months. Team and development allocations are locked for six months and then distributed over 18 months. This staggered vesting is designed to control token inflation and prevent sudden sell pressure. Tapzi's approach prioritizes predictability over volatility, appealing to more sophisticated investors.
Tapzi's core offering is a Web3 gaming hub built on the Binance Smart Chain, where players stake Tapzi tokens to compete in games such as chess and checkers. The tokens also serve as the prize for these games. To enhance user retention and lower entry barriers, Tapzi introduces gasless gameplay, developer SDKs & staking modules for new game launches, and prize-pool mechanics that grow with user engagement. With Web3 gaming projected to grow from $25B today to $300B by 2030, Tapzi is positioning itself to bridge the gap between mainstream gamers and blockchain-native reward economies.
The NewsBTC article introduces Christian, a dedicated and skilled crypto journalist who has a knack for breaking down complex cryptocurrency concepts into understandable pieces. Christian's journey with the written word started long before the advent of Bitcoin, having honed his craft as a feature writer for his college paper. His love for storytelling led him to work in various journalistic roles in Canada, South Korea, and his home country, the Philippines. His interest in cryptocurrency led him to NewsBTC, where he's become a trusted source for all things crypto.
Christian's life outside of work is as dynamic as his career. He is a motorbike enthusiast who enjoys the thrill of the open road on his 320-cc Yamaha R3. He also has a soft spot for his pets, two cats and a dog, who he believes help him write better articles. Christian is a self-proclaimed foodie and believes a good meal is the secret ingredient to a great article. After a long day of crypto reporting, he unwinds with some rum mixed with milk while watching comedy films. Looking ahead, Christian is optimistic about his future with NewsBTC, valuing the opportunity to share his expertise and passion with a community he respects.
CoinShares, a digital asset investment firm, has announced its plan to acquire Bastion Asset Management. This acquisition is part of CoinShares' strategy to enhance its actively managed crypto investment offerings, with a particular focus on the US market. Bastion, a UK-based FCA-regulated investment manager, is known for its systematic, market-neutral crypto strategies. These strategies will be integrated into CoinShares' existing suite of digital asset investment options.
The acquisition will enable CoinShares to launch actively managed crypto funds in the US, leveraging Bastion’s expertise in market-neutral strategies. As part of the deal, which is still subject to UK regulatory approval, Bastion’s CEO and CIO will join CoinShares. This move is expected to further strengthen CoinShares' capabilities in active crypto fund management.
The US Internal Revenue Service (IRS) and Treasury have issued new guidelines that exclude unrealized gains on Bitcoin from the corporate alternative minimum tax (CAMT). This means that companies like Strategy, a publicly traded software firm and significant Bitcoin treasury holder, will not face CAMT liability on their digital asset holdings. This development alleviates tax concerns and prevents the potential pressure on corporations to conduct forced asset sales due to tax assessments on unrealized gains.
The ruling, as noted by Senator Cynthia Lummis, eliminates the risk of taxing phantom gains and supports US firms that are building Bitcoin treasuries. This change is in line with wider efforts to encourage crypto innovation in the US under the Trump administration. The relief from CAMT allows companies with substantial Bitcoin reserves to continue their accumulation without disruptions caused by tax implications. This guidance indicates a more favorable climate for corporate crypto strategies as digital assets are increasingly adopted as treasury reserve assets.
Bitwise Europe has introduced a physically backed Avalanche Staking Exchange-Traded Product (ETP) on Deutsche Börse Xetra, a prominent German stock exchange platform. The ETP, known as AVNB, offers institutional investors exposure to Avalanche's native token, AVAX, along with integrated staking rewards. AVAX is used for transaction fees and staking within Avalanche's layer 1 blockchain ecosystem, which is known for its scalability and energy efficiency.
The launch of the Avalanche Staking ETP is part of Bitwise's broader strategy to provide regulated, physically backed options for institutional crypto exposure in Europe. European exchanges, including Deutsche Börse, are listing more staking-focused ETPs to cater to the demand from professional investors for yield-generating crypto products. The inclusion of Avalanche in new institutional products signifies the growing interest in scalable blockchains for real-world applications, given its focus on high-performance features.
