Crypto Weekly Market Wrap 8th September: SEC Oversight Plans, WLFI Controversy and Major Institutional Moves

The crypto space last week saw bold moves and firestorms in the regulation, trading, and corporate strategy fronts. Michael Saylor’s firm set itself up for a possible S&P 500 listing, and Japan Post Bank announced plans to introduce a digital yen by 2026. The SEC laid out a 2025 regulatory roadmap, Polymarket received CFTC approval to operate in the U.S., Coinbase launched a hybrid index, and Gemini filed for an IPO. In the section below, we will discuss this crypto weekly market wrap on 8th September in greater detail.

TRON Tumbles as Justin Sun Faces Token Freeze

TRON’s TRX token experienced a dramatic sell-off following World Liberty Financial freezing Justin Sun’s wallet. The value of the token dropped 10%, erasing almost $2 billion. This move occurred after Sun transferred $9 million worth of WLFI tokens, causing panicked conditions in the market.

WLFI, which is associated with the Trump family, had frozen 272 wallets in the crackdown on market manipulation. Interestingly, WLFI’s token rose 24% after the freeze, adding to the confrontation over the question of centralization and insider activities. Critics questioned whether retail traders had again been used to provide exit liquidity.

Sun said he was an early adopter and holds a $75 million stake in WLFI. Despite the freezing of the wallet, he pledged to purchase $10 million in WLFI and $10 million in ALTS. He said he had not been responsible for the WLFI price crash and termed the wallet freeze unfair.

To the World Liberty Financials team and the global community,

As one of the early major investors in World Liberty Financials, I have contributed not only capital but also my trust and support for the future of this project. My goal has always been to grow alongside the team…

— H.E. Justin Sun 👨‍🚀 (Astronaut Version) (@justinsuntron) September 5, 2025

Polymarket Clears Path for U.S. Return

Polymarket got regulatory clearance from CFTC to re-enter the U.S. market. The agency granted a no-action letter, waiving penalties based on past problems with reporting the information. This was a big success after years of regulatory uncertainties.

Polymarket left the U.S. in 2022 after it settled charges for running an unregistered platform. After acquiring QCX in a $112 million deal, the firm developed a compliant framework. The CFTC decision officially acknowledged this structure. The new setup will allow Polymarket to offer compliant event contracts to users in the U.S. again. In July, the CFTC and DOJ both dropped investigations, clearing the path for this return.

SEC Prepares for New Crypto Oversight Measures

The SEC unveiled their Spring 2025 regulatory agenda with an emphasis on crypto-specific regulation for the first time. Chair Paul Atkins affirmed the agency is looking to focus on digital asset clarity and updated market oversight.

The SEC plans to implement two initiatives in April of 2026. The first is providing clear guidelines with regard to issuing and selling crypto assets. The second is to adapt existing exchange rules for how digital assets trade on platforms. Additionally, the SEC will redefine some terms, such as ‘dealer’ and ‘broker,’ that will reflect the changing landscape of crypto. These offered changes are supposed to help build institutional confidence and guide towards greater adoption.

Strategy Meets S&P 500 Criteria

Michael Saylor’s company, Strategy, has passed all the criteria to gain inclusion in the S&P 500. The firm posted an unrealized gain of $14 billion, which met the last requirement of consistent profitability. Strategy shifted from software to hoarding Bitcoins, with more than 636,000 BTC. With stock up 161% over the last year, S&P inclusion could create $16bn of index fund demand.

Out of 26 contenders, Strategy tops with the greatest liquidity-adjusted float. If accepted, this move would indirectly expose institutional investors to Bitcoin through index-tracking strategies.

Japan Post Bank Targets 2026 Digital Currency Launch

Japan Post Bank is planning to introduce a digital deposit token, DCJPY, by 2026. The token will be pegged 1:1 with the yen, and run on a permissioned blockchain built by DeCurret DCP. The project, which is backed by MUFG, will enable users to convert deposits to tokens that are blockchain-based tokens. Settlement times for securities will be significantly cut, from days to seconds.

💥BREAKING:

🇺🇸 JAPAN POST BANK TO LAUNCH DIGITAL CURRENCY IN 2026 – NIKKEI

GLOBAL ADOPTION! 🚀 pic.twitter.com/Mz32jPBJXt

— Crypto Rover (@rovercrc) August 31, 2025

Trials have already shown the potential of DCJPY in the areas of NFTs, cross-border payments, and subsidies. Local governments are eyeing the token for public service disbursement, indicating wide applicability.

Limited Stablecoin Licenses in Hong Kong

The Hong Kong Monetary Authority received 77 applications for stablecoin licenses, but will only issue a handful in the beginning. Applicants include banks, tech companies, and Web3 companies. Officials emphasized that showing interest does not mean approval. Lawmakers noted the regulatory bar is still high, with the first license potentially coming in early 2026.

Meanwhile, the Legislative Council will push for regulations covering OTC transactions. The government is looking forward to regulated digital assets playing an increasing role in the national reserves and economic planning.

South Korea to Begin Sharing Crypto Tax Data

South Korea will implement the Crypto-Asset Reporting Framework of the Organisation for Economic Cooperation and Development by 2027. This initiative will permit foreign tax authorities to have access to the data of investors trading in Korea. Likewise, South Korea will have access to the transactions of the domestic residents on the overseas exchanges. From next year, all transaction information will be subject to reporting.

The move is to bring a measure of transparency and to curb tax evasion. Exchanges such as Upbit and Bithumb must comply by having systems in place that facilitate international information sharing.

Japan FSA Proposes Stronger Crypto Regulations

Japan’s Financial Services Agency proposed shifting the supervision of cryptocurrencies to the Financial Instruments and Exchange Act. The new regulation would displace the Payment Services Act. The FSA pointed to issues such as poor disclosure, fraud, and unlicensed operations in the current system. 

🇯🇵 Japan may soon tighten #crypto rules.

The FSA has recommended shifting oversight of digital assets from the Payment Services Act to the stricter Financial Instruments and Exchange Act.

Why it matters:
•Stronger investor protection
•Aligned with securities frameworks… pic.twitter.com/J6HAwkHj7l

— SWFT Blockchain (@SwftCoin) September 4, 2025

The objective is to bring securities-level scrutiny to better protect investors. Japan’s Financial System Council will review this proposal, and if accepted, it will mark a move to treat cryptocurrencies in the same way as traditional financial instruments.

Kazakhstan Approves Stablecoin Payment Pilot

Kazakhstan’s financial regulator launched a pilot program for paying regulatory fees in stablecoins. Bybit Kazakhstan joined the program following the signing of the MoU with the Astana Financial Services Authority. Payments will be made via USD-pegged stablecoins via authorized payment agents. This pilot represents a pragmatic step toward incorporating stablecoins in government transactions. The pilot supports Kazakhstan’s broader fintech strategy. It showcases how traditional regulatory systems can adapt to blockchain-based financial tools.

India to Enforce OECD Crypto Tax Rules by 2027

India will implement the Crypto-Asset Reporting Framework of the Organisation for Economic Cooperation and Development (OECD) from April 2027. This rule is aimed at residents’ holdings in foreign digital assets and platforms.

The system will include transactions that deal with exchanges, NFTs, and stablecoins. It aims to close loopholes in the country’s $172 billion crypto market through taxes. With more than 100 million users expected by 2025, this regulation is looking to increase supervision. Authorities are hoping the move will lead to better compliance and greater transparency.

Metaplanet Boosts Bitcoin Holdings to 20,000 BTC

Metaplanet announced the purchase of 1,009 BTC for $112 million. This move brought its total Bitcoin holdings to 20,000 BTC. The company spent about $2 billion purchasing the reserve. It announced plans to purchase as many as 210,000 BTC by 2027. Executives pointed to the low-interest-rate environment in Japan as ideal for crypto accumulation. The company plans to become the second-largest Corporate holder of Bitcoin after Strategy.

*Metaplanet Acquires Additional 1,009 $BTC, Total Holdings Reach 20,000 BTC* pic.twitter.com/kwvUkQaFth

— Metaplanet Inc. (@Metaplanet_JP) September 1, 2025

Yunfeng Financial Buys $44 Million in Ethereum

Yunfeng Financial, which is associated with Jack Ma, purchased 10,000 ETH for $44 million. The purchase was made from internal reserves and will be listed as an investment asset. The aim of the firm is to diversify its treasury through crypto. The board endorsed ETH as a long-term strategic reserve asset.

Pump.fun Launches New Incentive System

Solana’s meme token launchpad, Pump.fun, introduced “Project Ascend” to promote sustainability among token creators. The update adjusts creator fees according to the market cap. Under the new model, the tokens at the early stages of transactions will incur higher fees. As projects scale, fees will be reduced to aid with scaling.

The goal here is to attract long-term developers and minimize speculative token launches. The platform aims the system will help create a healthier ecosystem. Protocol and liquidity fees remain unchanged, preserving trader incentives. The update responds to earlier complaints and improves project-level economics.

Tether Eyes Investment in the Gold Sector

Tether is planning to invest in gold mining and refining companies. This represents a transition from the possession of gold to the ownership of shares in its production. Currently, Tether holds bullion worth $8 billion stored in Zurich. It also offers Tether Gold, a token that’s backed by physical gold. This growth comes in line with Tether’s ambitions to provide a bridge between crypto and the real world.

UK Proposes Tougher Crypto Compliance Rules

The UK Treasury published draft rules for a boost to anti-money laundering rules for crypto. The changes proposed extend the definition of “controllers” in crypto firms. New thresholds reduce the reporting limit from 25% ownership to 10%, allowing regulators more oversight of influential people.

HM Treasury have published a new policy paper — "Proposed amendments to the Money Laundering Regulations – draft SI and policy note" — inviting feedback on the proposed amendments via a consultation, which closes 30 September 2025.

The topic areas that HM Treasury calls out in… pic.twitter.com/tKagwxIltH

— CryptoUK 🇬🇧 (@CryptoUKAssoc) September 3, 2025

The rules also entail greater depth checks on banking partners overseas. Firms must take care not to work with shell banks, closing important compliance gaps. These updates are in an effort to make crypto companies compatible with traditional financial institutions. The changes facilitate transparency and lessen the risk of financial crimes.

Coinbase Set to Launch Mixed Futures Product

Coinbase launched a new index of futures products that’s a mix of crypto ETFs and major tech stocks. The product, which is set to launch on September 22, consists of BlackRock’s IBIT and the “Magnificent 7” stocks. Each component will be weighted 10% in the index. Coinbase’s own stock, iShares Ethereum Trust, will also be included. The futures will be cash-settled and then rebalanced on a quarterly basis. This hybrid product gives investors the ability to gain exposure to diversification in a single contract. In the initial, institutions will follow the retail access.

Gemini Reveals IPO Plan

Gemini has confirmed that it will raise $317 million in its U.S. IPO. The exchange is aimed at a valuation of $2.22 billion, much lower than previous estimates. It intends to sell 16.67 million shares at a price between $17 and $19. Gemini will list on Nasdaq under the ticker GEMI. The exchange has more than $18 billion in custody and 523,000 monthly active users. However, losses grew to $282 million for H1 2025. Despite falling revenue, the volume of trading increased sharply from $16.6 billion to $24.8 billion. This IPO represents the entry of Gemini into the public crypto exchange space.

SharpLink Expands Ethereum Treasury

SharpLink Gaming added 39,008 ETH worth $176.75 million. The purchase brought its total Ethereum holdings to more than 837,000 tokens. The company purchased the ETH between August 25 and August 31 at an average of $4,531 per token. This followed days after the larger buy in August. SharpLink adopted Ethereum as a treasury asset in July 2025. It seeks to capitalize on low staking costs and high returns. The firm has plans to stake ETH on Linea following the launch of its mainnet. SharpLink also received more than 2,300 ETH in staking rewards in the period since June.

Digital Asset Investment Products Market Overview

Digital asset investment products recorded $352m in outflows last week as trading volumes dropped by 27%, according to the CoinShares report. The dip followed weaker payroll figures and expectations of a September rate cut in the United States. Despite this, inflows for the year remain strong at $35.2bn, which is ahead of last year’s pace.

Regional flows showed clear divergence. The United States logged $440m in outflows, while Germany registered $85.1m in inflows. Hong Kong also contributed positively with inflows of $8.1m during the same period. Among individual assets, Bitcoin stood out with inflows of $524m. Ethereum struggled with $912m in outflows, marking a full week of daily declines. Solana achieved its 21st consecutive week of inflows, while XRP accumulated $1.22bn year-to-date.

Bitcoin Price Performance

Bitcoin’s positive trend last week led to a gain of more than 3%. The asset surged from the $107k region to climb above the $112k mark before facing a pullback again. This bullish sentiment pushed the market cap and trading volume to $2.24 trillion and $36 billion, respectively.

Looking at the technical indicators, the asset could be heading to challenge the resistance at the $115k level. The Relative Strength Index (RSI) has steadily climbed from the oversold region and currently hovers around 51 levels, indicating a neutral market sentiment. Should the bulls continue taking the lead, BTC’s price could display another rally in the coming sessions.