Crypto Weekly Market Wrap 4th August: Policy Shifts, Institutional Moves & Ethereum Milestone

The crypto market faced sharp shifts last week as macro factors weighed on prices and sentiment. The White House outlined a national digital asset strategy, aiming for global leadership. Ethereum revealed a 10-year development roadmap while hitting a $10 billion reserve. Meanwhile, institutional interest grew, digital assets shifted inflows, and several regulatory developments occurred. In the section below, let’s take a deeper look at the crypto weekly market wrap of 4th August.

White House Unveils Strategic Crypto Blueprint

On July 30, the White House published a 160-page policy report regarding Executive Order 14178. The report advises on coordinated regulation and clarity in law. It proposes strengthened CFTC powers and urges support of the CLARITY Act.

In addition, the plan proposes a federal system of stablecoin through the GENIUS Act. It also advocates a bill to prevent a central bank digital currency through the Anti-CBDC Surveillance State Act. Officials are requesting safe harbor protection of innovation and sandboxes in new forms of business like DeFi.

Furthermore, the plan instructs the IRS to work towards reforming cryptocurrency taxation, particularly staking, mining, and small transaction amounts. It also highlights the technology-neutral risk assessment in banking regulation. The administration has listed self-custody and decentralization as high priorities with respect to its crypto projections.

SEC Introduces “Project Crypto” for Regulatory Reform

Chairman Paul Atkins of the SEC launched a national strategy on August 1 to update securities law in the digital asset Project Crypto. The idea behind the initiative is to define any crypto asset and token offering in law. The initiative proposes exemptions to the rules for tokenized securities, airdrop,s and decentralized finance protocols. It also promotes reshoring blockchain innovation and less confusion in classifications in terms of jurisdiction.

We will make sure the next chapter of financial innovation is written right here in America.
Watch highlights from my speech launching Project Crypto at @A1Policy. https://t.co/SJeuPRGBhs pic.twitter.com/CmsQpXvB4k

— Paul Atkins (@SECPaulSAtkins) August 1, 2025

Moreover, it will follow the instructions of the SEC Crypto Task Force headed by Commissioner Hester Peirce. This aligns with the suggestions of the President’s Working Group and will be according to the goals of the overall financial reform.

Ethereum Charts a New Decade Ahead

The 10th anniversary of Ethereum was met with a significant development update. Researcher Justin Drake presented the performance and decentralization-favoring roadmap of Lean Ethereum. One of the roadmaps is the scaling of Ethereum to a level of 10,000 TPS at the base layer and 1 million TPS on Layer 2s.

The strategic corporate holdings of Ethereum have soared to a benchmark of over $10 billion on July 30. Corporations are currently in possession of 2.73 million ETH. Companies such as SharpLink Gaming and BitMine Immersion Technologies were equally involved in such acquisitions. Moreover, the growth is a fivefold increase compared to corporate ETH reserves in April. Such a scaling and adoption roadmap means Ethereum is in a strong position to have a major future role in the development of blockchain.

PayPal Expands Crypto Payments for Merchants

PayPal launched a new functionality, “Pay with Crypto”, to U.S. merchants. It uses over 100 cryptocurrencies to make cross-border payments. This will enable direct conversion and payment either to PYUSD or to the fiat currencies at a uniform rate of 0.99%. The service will enable merchants to eliminate cross-border charges by 90%. The system also saves extra bank and card processing fees, which is a great benefit to global sellers.

Tired: Paying high transaction fees for international payments.

Wired: Reducing costs up to 90% by offering pay with crypto for payments.

✅ Reduce international transaction fees by up to 90%
✅ Offer 100+ cryptocurrencies and eligible wallets at checkout
✅ Get immediate… pic.twitter.com/3XgOXW2Smr

— PayPal (@PayPal) July 28, 2025

More than 650 million users are now able to connect with this system through wallets such as MetaMask, Coinbase, Binance, Kraken, and OKX. Merchants can also get paid 4% interest on PYUSD held in PayPal accounts.

Tron Inc. Files $1B Offering for TRX Expansion

Tron Inc., trading on Nasdaq under the ticker TRON, filed for a $1 billion securities offering. The move complements its move to increase its reserves of TRX as part of its corporate strategy, akin to the Bitcoin strategy employed by MicroStrategy. The offering aims to raise money with bonds, equity, and other financial instruments. Tron will issue proceeds to buy more TRX and to have liquidity that goes beyond operating expenses. Tron Inc. has also witnessed its stock value skyrocket by over 1,300% since its reverse merger with SRM Entertainment.

Kraken Eyes $500M Raise Before IPO

Kraken, a crypto exchange platform, announced a fundraising round. It aims to obtain $500 million, valuing the platform at $15 billion. This is done in a bid to gear up for an IPO as soon as Q1 of 2026. In 2024, Kraken reported $1.5 billion in income; this was 128% more than it was in the previous year. The daily volumes now surpass $1 billion, and they are growing as a result of acquisitions and product expansion.

Kraken also acquired NinjaTrader in March 2025 to strengthen its derivatives offering. It also introduced a new application, Krak, that allows users to use 300+ fiat and cryptocurrencies in more than 110 countries. Such momentum is a sign of institutional trust.

SEC Approves In-Kind Redemptions for ETFs

SEC approved in-kind redemptions of both Spot Ethereum and Bitcoin ETFs. Fund managers will be able to swap ETF shares for crypto without cash settlements. Such a shift in rules lowers the trading expenses and enhances the efficiency of the market. It mirrors gold ETF mechanics and is a major step toward crypto’s institutional integration.

Looks like SEC just approved in-kind creation / redemption for all spot bitcoin and ether ETFs. pic.twitter.com/P8SEJv2Tk8

— Eric Balchunas (@EricBalchunas) July 29, 2025

The revision takes up the approvals on the options on ETF, FLEX contracts, and raising the position limits to 250,000. Investors such as BlackRock and Nasdaq, among others, believe that they will gain from increased participation.

South Korea Launches Virtual Asset Unit

On July 29, the Bank of Korea announced a major restructuring. It established a dedicated Virtual Asset Team and rebranded its Digital Currency Office. The Virtual Asset Team will monitor stablecoin markets and impose laws. Technical groups will work on deposit tokens, privacy protection, and infrastructure development. The purpose of these changes is to enhance the crypto preparedness of the Central Bank. South Korea is still in the process of bringing its financial system in line with blockchain innovations and global practices.

Indonesia Increases Crypto Tax Rates

On August 1, the Finance Ministry of Indonesia raised the cryptocurrency transaction taxes. The local sellers’ trading tax rate was raised to 0.21%, up from 0.1% and the foreign platforms’ sellers are subject to a 1% tax. The VAT charged on consumers was also abolished. Mining VAT was, however, increased to 2.2%, replacing the earlier 1.1%. In 2026, a special income tax of 0.1% on crypto mining will be abolished.

🇮🇩 Indonesia to raise crypto transaction taxes starting August 1:

• Tax on local exchange sellers: 0.21% (up from 0.1%)
• Tax on foreign exchange sellers: 1% (up from 0.2%)
• VAT on buyers scrapped
• Crypto mining VAT doubled to 2.2%
• Special mining income tax removed;… pic.twitter.com/JMYsRNpcCm

— Crypto News Hunters 🎯 (@CryptoNewsHntrs) July 30, 2025

Hong Kong Implements Stablecoin Licensing Rules

Hong Kong enacted its Stablecoin Ordinance on August 1. The legislation establishes conditions under which no one without the proper license can conduct business with stablecoins in the state. In the early phase, exchange shops remained operating in Hong Kong. With the enforcement still unclear, most are waiting for more guidelines. Stablecoins such as USDT and USDC can now only be legally issued to retail investors on licensed platforms. A licensing system to have trading in OTC is also under consultation and will close on August 29.

Philippine Government Integrates Polygon for Document Verification

The government of the Philippines launched a verification system based on Polygon. Records of document hashes are recorded on the platform to be validated publicly and deter the creation of forgeries by AI.

🇵🇭 LATEST: The Philippines is now using Polygon to verify key government budget documents fully on-chain.

Citizens can track docs via QR codes, with NFTs proving authenticity.

A big step for public transparency and blockchain-backed governance. pic.twitter.com/jbrNcOlIiD

— CryptosRus (@CryptosR_Us) August 1, 2025

This initiative, developed by the Department of Budget and Management, is to ensure that there is transparency in the handling of budgets. The implementation was done through a local company, Bayanichain. Although there was a brief outage of the network during the launch day, the system went live successfully. Authorities believe blockchain plays an essential role in the digital governance of the nation.

JD Chain Registers New Stablecoin Names

JD Chain, a blockchain subsidiary of JD.com, trademarked the names JCOIN and JOYCOIN. According to the market watchers, these will be fiat-backed stablecoins. JD Chain has experimented with fiat-secured stablecoins through the regulatory sandbox in Hong Kong. Now, the attention is given to cross-border payments, investment, and retail application cases. The expansion of the service will introduce JD Chain to competitive markets in stablecoins. Licensing by the HKMA sandbox assures the firm of its ability to stick to the rules.

OKX Debuts Derivatives Trading in UAE

OKX introduced regulated products to trade derivatives on crypto assets to the retail market in the UAE. The options, futures, and perpetuals available are supported up to 5x leverage. Moreover, the launch is based on the Innovation Pilot Framework of the Dubai Virtual Assets Regulatory Authority. It enables controlled conditions in which products can be launched. This step makes the UAE even stronger in terms of being a crypto innovation hub. OKX is still trying to expand its services in the emerging and regulated markets.

تنبيه لجميع المتداولين في 🇦🇪

تداول المشتقات أصبح متاح لجميع المتداولين بشكل مرخص على #OKX!

يمكنكم الآن تداول العقود الآجلة الدائمة والمنتهية وعقود الخيارات مع رافعة مالية تصل إلى 5x!

قم بإحالة أصدقاءك وابدا تداول المشتقات بالطريقة الصحيحة: https://t.co/NRTw09Rr6b pic.twitter.com/g6e7Xht9KJ

— OKX MENA (@OKXmena) July 28, 2025

Osaka Exchange Considers Crypto Futures Listing

Osaka Exchange, which is a subsidiary of Japan Exchange Group, is in talks about listing cryptocurrency derivatives. It also seeks to provide futures, options associated with digital assets. In case of success, related ETFs could be launched on the Tokyo Stock Exchange. The derivatives market emphasized by the Osaka Exchange serves the increasing institutional appetites of Japan towards crypto trading. The initiative will be able to benchmark with international trends in influencing crypto into traditional finance. Negotiations are at an initial phase of approval.

Coinbase and JPMorgan Launch Joint Crypto Features

Coinbase and JPMorganChase entered into a strategic partnership to enhance access to digital assets. The new features of the collaboration are new banking and reward transfers. The customers will be linked to their bank accounts with the Coinbase wallet, and the API provided by JPMorgan is secure. It will also allow them to exchange Chase Ultimate Rewards into crypto. The collaboration enables the use of credit cards as a source of funding starting in Fall 2025. Bank-to-wallet and reward will be available in 2026. The two companies also aim to make the process of building crypto user acquisition simpler for millions of users.

CoinDCX Denies Acquisition Talks After $44M Hack

CoinDCX rejected the rumor about an acquisition by Coinbase amid the security breach of $44M. Sumit Gupta, the CEO, made it clear that there were no talks or negotiations in process. The breach was carried out after one of the employees was tricked into committing employment fraud. CoinDCX was hacked, and the hackers had access to an internal liquidity wallet on the side of their tech partner.

CoinDCX Co-Founder Responds to Acquisition Rumors: Focused on Indian Crypto Market, Not Considering Sale

According to HashNews, CoinDCX co-founder Sumit Gupta addressed the rumors about Coinbase's potential acquisition of CoinDCX on the X platform. Sumit Gupta stated that…

— HashNews👩🏻‍🌾 (@HashNews01) July 29, 2025

The employee, Rahul Agarwal, was arrested by the authorities in Bengaluru. According to the investigators, cybercriminals used his company device to drain them through the Solana Jupiter aggregator. CoinDCX affirmed to the users that customer funds were secured in cold wallets. Internal systems were isolated, and a continuous investigation is in progress.

Interactive Brokers Weighs Stablecoin Plans

Interactive Brokers is considering launching a stablecoin and enabling 24/7 crypto funding. The firm expanded adoption among retail and institutional clients. Chairman Thomas Peterffy confirmed the company is reviewing design and issuance strategies. The brokerage already supports crypto trading through partners like Paxos and Zero Hash.

In addition, plans include accepting stablecoin deposits from vetted providers. The aim is to enable seamless digital asset movement outside traditional banking hours. Interactive Brokers reported 3.87 million accounts by June, up 32% year-over-year. Furthermore, its stock rose 47% in 2025, outperforming peers amid high volatility.

DeFi Advocacy Group Presses U.S. Senate for Changes

The DeFi Education Fund urged the Senate to revise its crypto market structure bill. It called for tech-neutral policies and protections for developers. Backed by firms like a16z Crypto, Uniswap, and Paradigm, the group emphasized self-custody rights. Developers of non-custodial code should not face regulation as intermediaries.

Furthermore, the group wants federal preemption over fragmented state rules. It warned that larger financial institutions could weaponize regulation to stifle DeFi. Senators welcomed the input as they finalize the Digital Asset Market Clarity Act. The bill remains a key legislative focus for shaping U.S. crypto policy.

Digital Asset Investment Products Market Overview

Last week, digital asset funds experienced a change whereby they recorded $223 million of outflows, according to the recent report by CoinShares. This happened to be the first weekly outflow after 15 weeks. The decline was made after hawkish signals from the Federal Reserve and a strong U.S. economic report.

📉 Last week, digital asset investment products saw outflows of US$223M for the first time in 15 weeks.@Bitcoin led the outflows with US$404M while @ethereum posted its 15th straight week of inflows with US$133M. XRP (@Ripple), @solana, and @SeiNetwork also attracted notable… pic.twitter.com/Tpo67w0w3w

— CoinShares (@CoinSharesCo) August 4, 2025

Bitcoin topped outflows at $404 million, although its YTD flows are still strong, standing at $20 billion. By contrast, Ethereum continued to record new capital amounting to $133 million, the 15th consecutive week. Other inflows were on XRP, Solana, and SEI that recorded $31.2million, $8.8 million, and $5.8 million, respectively. Aave and Sui posted smaller gains. The sentiment has now shifted, and profit-taking has also slowed the pace of most significant digital assets.

Bitcoin Price Performance

There was a lot of volatility in the crypto market last week, leading to a bearish sentiment. Bitcoin, which was trading at around $120k over the week, fell as low as $112k due to macroeconomic factors, including the new tariffs ordered by U.S. President Donald Trump. The price of Bitcoin declined by 3.50% over the last seven days. Moreover, its market cap and trading volume also dropped to $2.25 trillion and $48 billion.

Technical indicators on the weekly chart display a bearish sentiment as most head downwards. The RSI has dropped from the overbought region and currently hovers around 62 indexes. In addition, the MACD is shifting negative as the green bars on the histogram fade away. Should the current trend persist, BTC could decline further to test new support levels. However, with a shift in market dynamics and easing selling pressure, the price could retrace the $120k mark.