Last week, the crypto market saw a flurry of regulatory developments, major funding rounds and notable industry movements from various regions. From the SEC’s upcoming innovation exemption to Tether’s possible $20 billion raise, and Ethereum’s next big upgrade, the world of crypto is changing rapidly. Here’s a round-up of the highlights that defined the crypto industry last week.
SEC Prepares Innovation Exemption
The United States Securities and Exchange Commission (SEC) is set to roll out what could be one of the major shifts in crypto oversight to date. Chairman Paul Atkins confirmed that by year’s end, the agency aims to implement an “innovation exemption”. It is intended to allow crypto companies to launch new products without being subject to immediately burdensome or conflicting regulatory requirements.
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JUST IN: 🇺🇸 SEC to create new rules to allow crypto companies to launch products in the US without complying with previous regulatory requirements.
Calling it an "innovation exemption" 🙌 pic.twitter.com/k2fKSXMAVp
— Bitcoin Magazine (@BitcoinMagazine) September 23, 2025
SEC Chairman Paul Atkins called the new initiative a development platform. The measure will allow companies to test products quickly. Both registrants and non-registrants were able to operate under conditional relief. The plan could help draw in innovators who often consider moving abroad.
Atkins emphasized that the SEC is looking to coordinate with the CFTC under “Project Crypto.” The two agencies want safer guardrails without slowing market growth. According to him, the exemption will provide confidence to businesses to launch without delay. He noted that the broader goal is to position the U.S. as the global crypto hub.
CFTC Moves Toward Stablecoin Integration
The CFTC is investigating tokenized collateral and evaluating the use of stablecoins in US derivatives markets. Stablecoins already have a $300 billion global market cap and have grown from niche instruments to key players in financial infrastructure. Industry leaders claim that programmable money promotes transparency and efficiency. The use of stablecoins could mitigate the risk and allow for faster settlements. Washington now considers these instruments to be key to US competitiveness.
Tether Pursues Record Fundraising
Tether Holdings began discussions for a major private placement. The stablecoin issuer may raise between $15 billion $20 billion. The deal would value the company close to $500 billion. Cantor Fitzgerald is advising on the process. The talks are still in an early stage, but they are capturing investor interest. Sources said Tether wants to sell new shares rather than secondary sales. The valuation would place the firm in the position of one of the largest private companies in the world. Tether CEO Paolo Ardoino confirmed that the company is considering a small pool of potential backers.
European Banks Form Euro Stablecoin Consortium
Nine major European banks, including ING, UniCredit, and CaixaBank, have united to launch a euro-denominated stablecoin. The initiative is within the framework of Europe’s MiCA, and approval of the Dutch Central Bank will be necessary.
💥BREAKING
NINE EUROPEAN BANKS ARE TEAMING UP TO LAUNCH A MICA COMPLIANT EURO STABLECOIN, WITH A TARGET DEBUT IN 2026.
TRADITIONAL FINANCE IS LOCKING IN ON DIGITAL MONEY FOR THE EUROZONE. ⚡️ pic.twitter.com/W967MJW3gR
— DustyBC Crypto (@TheDustyBC) September 25, 2025
The consortium hopes to release the product by late 2026. The stablecoin will enable 24/7 cross-border payments as well as programmable finance. ING’s Floris Lugt emphasised the need for industry-wide standards. The project is part of Europe’s attempt to remain competitive in the digital realm of finance.
Coinbase Expands with XSGD Stablecoin
Coinbase collaborated with StraitsX to list the XSGD stablecoin worldwide. The coin is backed one-to-one with the Singapore dollar and will be available on Coinbase and Coinbase Advanced starting September 30. The launch marks an important expansion into Coinbase’s Asia-Pacific strategy. The token will also launch on Base, Coinbase’s Ethereum Layer 2 network. Users will be provided with cheap decentralized trading options. Liquidity pools will support XSGD/USDC pairs at decentralized exchanges. The move displays how regional stablecoins are becoming global tools.
South Korea Establishes Digital Asset Task Force
The ruling Democratic Party of South Korea established a task force on digital assets. Leaders plan to pass some new laws during this year’s regular and year-end sessions. The initiative will join hands with the Financial Services Commission, the Financial Supervisory Service, and the Bank of Korea. The idea is to protect monetary sovereignty, officials say.
In addition, the framework will include the issuance of stablecoins and their management. Lawmakers want to regulate distribution channels as well. Task Force Chair Han Jung-ae pointed out the need for clear rules. Exchanges and fintech firms are expected to play a key role in determining the outcome.
Kazakhstan Launches Tenge-Pegged Stablecoin
The government of Kazakhstan announced a national stablecoin pilot project. The Evo (KZTE) token is pegged to the tenge. The National Bank is spearheading the move with Intebix exchange and Eurasian Bank. Mastercard is working to incorporate the token into payment networks across the globe.
The National Bank of Kazakhstan has announced the launch of a national stablecoin pilot project, Evo (KZTE), pegged to the local currency, the tenge. The stablecoin is jointly issued by crypto exchange Intebix and local lender Eurasian Bank, built on the Solana blockchain, with…
— Wu Blockchain (@WuBlockchain) September 23, 2025
Moreover, the stablecoin will be based on the Solana blockchain. It’s part of the central bank’s sandbox program. Officials want to overcome the gap between local finance and international digital markets.
UAE Signs International Crypto Tax Agreement
The UAE Ministry of Finance joined the Crypto-Asset Reporting Framework. The agreement outlines new global tax reporting requirements. The country will start implementing the framework starting in 2027, and data sharing with international authorities will follow in 2028.
Moreover, the ministry also launched an eight-week industry consultation. Service providers are invited to provide feedback regarding implementation. Officials hope the rules will align with international compliance standards. The UAE strives to continue to be an attractive hub while also fulfilling global expectations.
Ethereum Gears Up for Fusaka Fork
Ethereum developers are bracing for the Fusaka upgrade slated for December 3rd. Vitalik Buterin called it a major leap. The important feature is PeerDAS, which will reduce the blob congestion. Analysts expect transaction fees to drop below $0.10.
Fusaka will fix this.
But also, safety first is of the utmost importance for Fusaka. The core feature, PeerDAS, is trying to do something pretty unprecedented: have a live blockchain that does not require any single node to download the full data.
The way PeerDAS works is that… https://t.co/go6QsqjaFC
— vitalik.eth (@VitalikButerin) September 24, 2025
PeerDAS allows nodes to verify data without having to download entire blocks of data. This system is based on probabilistic verification and erasure coding. Developers are still cautious since the technology is new. The upgrade could eventually increase both L2 and L1 scaling capacity.
AgriFORCE to Relaunch as AVAX One
AgriFORCE Growing Systems is set to rebrand as AVAX One. The Nasdaq-listed firm is planning to raise $550 million for Avalanche token strategies. Advisors include Anthony Scaramucci, of SkyBridge Capital, and Brett Tejpaul of Coinbase Institutional. The plan would make AVAX one of the first U.S. public companies dedicated to Avalanche.
The company wants to stockpile $700 million worth of AVAX and, in the long term, acquire fintech companies and migrate them to Avalanche. The raise includes a $300 million PIPE and $250 million in equity-linked financing. More than 50 institutions, including Kraken and Galaxy Digital, are backing the plan.
WLFI Announces Debit Card and Token Burn
World Liberty Financial will soon be launching its own debit card. Co-founder Zak Folkman unveiled the news during Korea Blockchain Week. The card will be connected with Apple Pay and integrate the USD1 stablecoin. A payments and trading retail app is also under development. In addition, WLFI repurchased 3.814 million WLFI tokens. The purchase cost was $798,000. The firm then burned 6.923 million tokens, consisting of the buyback and fee revenue. Executives said the move bolsters the token’s long-term stability.
Interpol Seizes $97 Million in Global Operation
Interpol confiscated $97 million in assets as part of Operation HAECHI VI. The crackdown covered 40 countries between April and August, freezing 400 wallets and blocking 68,000 accounts. Fraud, phishing, and money laundering were the primary targets. Portuguese police detain 45 suspects connected with social security fraud. International cooperation was crucial, according to the officials. Interpol’s Theos Badege drew attention to the recovery of stolen funds. The operation illustrates the way in which global policing has adapted to cybercrime.
UK and US Form Transatlantic Taskforce
The U.K. and U.S. formed a joint task force for digital assets. The group will be looking at capital markets and crypto rules. The announcement came just before the U.K. reopens Bitcoin ETNs to retail investors. Officials said the goal of the cooperation was to align global standards.
🇺🇸🤝🇬🇧 Big move in global crypto regulation!
The US and UK just launched the Transatlantic Taskforce for Markets of the Future – aiming to reduce barriers, align rules, and coordinate oversight for digital assets.
A joint report is expected within 180 days. Could this mark the… pic.twitter.com/g8U3u8TZYs
— Lynneri (@lynneri_) September 23, 2025
The development was praised by industry experts. Riccardo Tordera, from The Payments Association, said the government had listened to industry calls. The task force will discuss possible joint opportunities in market infrastructure. Industry experts view it as a step towards a common transatlantic policy.
Japan’s Metaplanet Expands Bitcoin Holdings
Metaplanet added 5,419 BTC to its Bitcoin reserves. The cost of the purchase was approximately $632 million at $116,724 for each coin. Currently, the company holds a total of 25,555 BTC at an average acquisition cost of $106,065. The firm has invested a total of almost $2.71 billion in Bitcoin, and executives continue to view Bitcoin as a core treasury asset.
Strategy Adds Another $100 Million in Bitcoin
Michael Saylor’s Strategy purchased 850 BTC. The total cost of the buy was $99.7 million for an average of $117,344 per coin. Strategy now has a total of 639,835 BTC, with its total investment valuing around $47.3 billion. However, the firm has slowed down its pace of acquisitions. September purchases hit 3,330 BTC, down significantly from August. Despite the slowdown, Strategy is the largest corporate holder of Bitcoin.
First Ethereum Staking ETF Launches in U.S.
REX Shares and Osprey Funds launched the first Ethereum staking ETF, REX-ESK. This product combines ETH exposure with staking rewards. Investors receive rewards monthly without performance fees. The fund is regulated by the Investment Company Act of 1940.
Pleased to welcome a new REX-Osprey ETF our U.S. market: REX-Osprey ETH + Staking ETF! $ESK
Learn more about REX-Osprey's #CboeListed ETFs: https://t.co/qlimuVSdU2@REXShares @OspreyFunds pic.twitter.com/D1pXYOpGfv
— Cboe (@CBOE) September 25, 2025
Moreover, ESK uses directly staked ETH and exchange-traded staking products. Rewards flow directly to the investors instead of managers. The design makes it easier for people to access Ethereum staking yields. The ETF could attract traditional investors looking for crypto income.
YZi Labs May Open Fund to Outside Investors
Changpeng Zhao’s YZi Labs is considering external capital. The firm currently oversees Zhao’s private businesses. Ella Zhang, head of YZi Labs, added that the decision needs more expertise. She mentioned AI and biotech as areas leading up to expansion. The fund primarily invests in crypto, robotics, and new technologies. Startups are often approaching YZi Labs to seek seed funding. The firm was established in early 2025 as a rebrand of Binance Labs.
Thai Police Break Up Crypto Scam Ring
Thai police dismantled a scam network operating from Pattaya. Authorities said the group defrauded almost 900 South Koreans with losses totaling approximately $15 million. The ring employed romance scams and bogus officials to deceive victims. Police arrested 25 members in the operation. Some of the suspects have already been extradited to South Korea, while the ringleader is still in custody in Thailand. Investigators are still trying to trace money laundering channels used by the group.
SBF Resurfaces with Online Message
Sam Bankman-Fried briefly reappeared online with a single message. A “gm” posted on his account garnered 6.5 million views but was later confirmed to have been sent by a friend. The post has sparked speculation and moved markets.
[No, SBF is not posting himself from prison. I'm a friend posting on his behalf.]
— SBF (@SBF_FTX) September 24, 2025
For instance, FTT rose more than 50% before stabilizing. Analysts debated whether it suggested a campaign for a pardon. Arthur Hayes made a joke about a new memecoin. Furthermore, the timing comes before FTX begins its $1.6 billion creditor payouts.
Kraken Secures $500M in Funding Amid IPO Buzz
Kraken raised $500 million at a $15 billion valuation, fueling speculation of a possible public offering. The exchange hasn’t yet filed an S-1 with the SEC, but it appears to be on its way to an IPO. Sethi, who joined Kraken after Jesse Powell stepped down, led its growth over the past year. Kraken currently ranks in the top 15 global exchanges.
Senate to Review Crypto Tax Rules in October Hearing
The US Senate Finance Committee is scheduled to hold a hearing on October 1 to discuss crypto tax policies. Coinbase, Coin Center, and Tax Law leaders will testify during the session. Senator Mike Crapo said the meeting will take place at the Dirksen Senate Office Building. As virtual assets increase, lawmakers are calling for greater transparency in tax policy. Earlier, Senator Lummis and the White House both called for new guidelines for mining, staking, and small transactions.
Digital Asset Investment Products Market Overview
Last week, U.S.-listed spot Bitcoin and Ethereum ETFs experienced total outflows of $1.7 billion. The shift came after increased volatility in the market, with Bitcoin and Ethereum falling more than 8%. Data from SoSoValue confirmed $903 million out of Bitcoin ETFs, and Ethereum products lost $796 million, the largest outflow of the week to date.
During the trading week of September 22 to 26 (ET), Bitcoin spot ETFs saw net outflows of $903 million, ending a four-week streak of inflows. Ethereum spot ETFs recorded net outflows of $796 million, with all nine funds posting redemptions.https://t.co/YcNXWVZGwE pic.twitter.com/Mgwh2QKKtr
— Wu Blockchain (@WuBlockchain) September 28, 2025
Institutions responded to the combination of rising inflation, economic slowdown, and unclear U.S. policy by decreasing exposure to volatile crypto assets. The pullback was a break from the constant inflows that had been observed in recent months. Many funds are now taking a more defensive stance in their investments.
Meanwhile, interest is turning to new ETFs linked to Solana and XRP. These alternatives are capturing the attention of investors who are looking for exposure away from Bitcoin and Ethereum in a tighter, more cautious market environment.
Bitcoin Price Performance
Bitcoin traded on a bearish sentiment last week following the broad market retreat. BTC traded between $108,700 and $114,000. Despite the volatility, the leading asset recovered at the end of the week, minimizing the weekly loss to 1%. Moreover, its market cap and trading volume declined to $2.20 trillion and $40 billion, respectively.
Looking at Bitcoin’s weekly chart, the asset trades in a bearish sentiment as red candlesticks overwhelm the chart. The MACD line has dropped below the signal line, with the histogram printing red bars, which indicates that the sellers have the upper hand at the moment.
In addition, the Relative Strength Index (RSI) is hovering around 55 levels, indicating a neutral sentiment in Bitcoin’s price. Despite the overall sentiment leaning on the bearish side, BTC could reverse the downtrend if the buyers take the lead. With a firm resistance noted at the $117k region, a break above this point could lead to a retest of the ATH.
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