Stay in the loop with our weekly crypto digest as we get you up to speed on the hottest trends and events in the crypto space.
Here’s what happened in crypto this week:
Dubai Officially Approves First Crypto Options License
Dubai’s Virtual Asset Regulatory Authority (VARA) has officially approved Bitcoin and crypto options for retail investors through Laser Digital.
With its tax-free status, clear regulation, and growing ecosystem of over 600 crypto firms, Dubai is positioning itself as a key hub for digital assets.
Laser Digital will offer basic Bitcoin options under strict oversight to enhance security and liquidity.
China To Allow Launch Of Its First Crypto Stablecoin
As part of an initiative to internationalize the renminbi (Chinese Yuan) and enhance its competitiveness against the US dollar, China is poised to launch its first stablecoin. Meanwhile, the US is making significant progress toward its mission of becoming the crypto capital of the world.
According to a report from the Financial Times, Hong Kong has emerged as a testing ground for cryptocurrency, particularly given the strict bans on the mainland.
Recently, the territory passed legislation allowing licensed businesses to issue tokens backed by any fiat currency. However, the Hong Kong Monetary Authority (HKMA) has taken a cautious stance, indicating that only a limited number of licenses will be issued starting next year.
Policymakers in China have increasingly turned their attention to stablecoins, recognizing the growing dominance of dollar-backed tokens in the global economy.
Tornado Cash Creator Roman Storm Found Guilty On Money Transmitting Charges
Roman Storm, co-founder of Tornado Cash, was found guilty of conspiracy to operate an unlicensed money transmitting business but acquitted on sanctions violation charges.
The jury in Manhattan convicted Storm on the money transmitting charge, highlighting concerns over unregulated crypto services facilitating illicit funds. This could set a precedent for how developers are held liable for their platforms’ misuse.
Being cleared on sanctions evasion suggests the court did not find sufficient evidence linking Storm directly to violations involving entities like North Korea’s Lazarus Group.
This case underscores the tension between innovation and regulation in crypto. Developers might face tighter scrutiny, especially for privacy-focused tools, as authorities push compliance boundaries.
Trump Signs Executive Order Allowing 401(k) Investors To Access Alternative Assets For Better Returns And Diversification
President Donald Trump just signed an executive order opening 401(k) retirement plans to alternative assets like crypto, private equity, and real estate, aiming for better returns and diversification for American investors.
This means millions of Americans saving for retirement through 401(k) accounts could have the option of putting their money in higher-risk private equity and cryptocurrency investments.
This order targets the massive $12.5 trillion 401(k) market, directing the Labor Secretary to revisit fiduciary rules on private market investments under ERISA (Employee Retirement Income Security Act of 1974).
There is no immediate change in how people invest part of their work earnings. Federal agencies would need to rewrite rules and regulations to allow the expanded choices, and that would take months or more to complete. But once done, employers could offer a broader array of mutual funds and investments to workers, according to the White House.
SEC And Ripple Officially End Legal Battle Following Joint Dismissal Of Appeals
The US Securities and Exchange Commission (SEC) and Ripple Labs’ lawyers have jointly agreed to withdraw the appeal to the Second Circuit Court of Appeals. A joint motion to dismiss submitted shows that both parties will bear their own costs.
Previously, Ripple Labs CEO Brad Garlinghouse announced in June that the company intended to withdraw its cross-appeal, stating the need to ‘turn the page and focus on building the value internet.’
Now, both parties have abandoned the appeal, and Judge Analisa Torres’ mixed ruling in 2023 will become the final judgment.
This landmark decision sets a precedent for institutional treatment and paves the way for potential exchange relistings and wider adoption.
Chainlink has partnered with Intercontinental Exchange (ICE), the parent of NYSE, to deliver high-quality forex and precious metals data on-chain, bridging traditional finance with blockchain for DeFi and tokenized asset growth.
This collaboration integrates ICE’s Consolidated Feed into Chainlink Data Streams, providing reliable FX and metals rates to over 2,000 apps in Chainlink’s ecosystem, including major banks and asset managers.
With tokenized real-world assets projected to hit $30.1 trillion, this move positions Chainlink and ICE to drive innovation in digital markets by enhancing data reliability for on-chain finance.
Paxos Says It Is Applying For Trust Bank License With US OCC
Paxos, a key player in blockchain and stablecoin issuance, has announced its application for a trust bank license with the US Office of the Comptroller of the Currency (OCC), aiming for federal regulation status.
Paxos is pushing to solidify its standing in the US financial system by seeking a national trust bank charter. If approved, it would place it among a select few crypto-native firms under federal oversight.
This application aligns with Paxos’ history of regulatory engagement, having already secured a provisional trust charter in 2021.
Canary Files For Staked INJ ETF With CBOE
Canary Capital has filed with the CBOE BZX Exchange to list a staked Injective ($INJ) exchange-traded fund (ETF), a potential first for US markets, offering regulated exposure to staked Injective tokens.
The filing, documented as SR-CboeBZX-2025-115, marks a significant move by Canary Capital to bring a staked $INJ ETF to the US via CBOE, one of the largest equities exchanges.
This follows Canary’s initial SEC Form S-1 filing, showing a two-step process toward institutional adoption of Injective’s decentralized finance (DeFi) offerings in traditional finance spaces.
Grayscale Cardano And Hedera Trust ETFs Registered In Delaware
Grayscale has registered trusts for Cardano (ADA) and Hedera (HBAR) in Delaware, hinting at potential exchange-traded funds (ETFs). This signals growing institutional interest in these altcoins, though registration does not guarantee product launches.
These registrations spark speculation about future ETF offerings, especially with the Securities and Exchange Commission (SEC) acknowledging a Hedera ETF filing earlier.
Cardano’s research-driven scalability and Hedera’s hashgraph efficiency highlight their enterprise potential, signaling Grayscale’s confidence in diversified crypto portfolios.
Coinbase Ventures Buys TON Tokens ‘Directly From Telegram,’ Says TON Foundation Executive
Coinbase Ventures has reportedly purchased $TON tokens directly from Telegram, according to a TON Foundation executive. This move signals growing institutional interest in The Open Network blockchain, tied to Telegram’s massive user base.
The undisclosed investment expands Coinbase’s involvement in TON, a Telegram-backed blockchain previously facing regulatory challenges but now focused on DeFi and Web3 growth.
Analysts note institutional interest in altcoins like TON may boost credibility, but market success depends on broader crypto conditions and TON’s technical execution.
Circle To Launch Arc, A Layer-1 Blockchain Dedicated To Stablecoins
Circle, the issuer of USDC, is reportedly launching Arc, a new Layer-1 blockchain specifically designed for stablecoins, aiming to enhance efficiency and cross-chain liquidity for digital currencies.
Circle’s Arc blockchain could redefine stablecoin infrastructure, focusing on optimized transactions and native support for USDC. This aligns with their recent pushes for cross-chain solutions like Circle Gateway.
Arc could also challenge existing Layer-1s by prioritizing stablecoin use cases, potentially reducing friction in payments and DeFi, and bolstering Circle’s position amid growing regulatory clarity post-GENIUS Act.
Do Kwon To Plead Guilty To US conspiracy, Fraud Charges In $40 Billion Terra Collapse
Do Kwon, co-founder of Terraform Labs, will plead guilty to two criminal charges of conspiracy to defraud and wire fraud related to the 2022 collapse of his terrausd (UST) and luna (LUNA) cryptocurrencies that erased an estimated $40 billion in value.
The South Korean entrepreneur had pleaded not guilty in January to a nine-count indictment alleging securities fraud, wire fraud, commodities fraud, and money laundering conspiracy.
Prosecutors accused Kwon of misleading investors by falsely claiming an algorithm maintained UST’s $1 peg after its May 2022 depegging, while secretly arranging millions in token purchases to artificially inflate its price. These alleged misrepresentations helped drive LUNA’s value to $50 billion by spring 2022. Kwon agreed to an $80 million civil fine and crypto transaction ban in a 2024 SEC settlement.
US Inflation Remains At 2.7%
The US annual Consumer Price Index (CPI) came in at 2.7%, compared with economists’ estimates of 2.8%. The Core CPI, which excludes highly volatile sectors such as energy and food, registered 3.1%, beating forecasts by 0.1 percentage point.
Analysts see the data as a positive signal for crypto market bulls, as it may prompt the US Federal Reserve to cut interest rates at its upcoming September Federal Open Market Committee meeting.
The Fed targets a healthy inflation rate of around 2%, and the latest figures have been edging closer to that level in recent months.
It is worth noting that CPI figures are not the only factor the Fed considers when deciding on a possible rate cut; the latest US jobs report showed the economy weaker than expected, increasing the likelihood of lowering the benchmark rate.
Final Thoughts
So that’s it for this week!
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Have a fantastic week ahead!
