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Bitcoin spot ETFs swing to positive year-to-date flows after $2.39B weekly inflow

Bitcoin spot ETFs swing to positive year-to-date flows after $2.39B weekly inflow

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Bitcoin spot ETFs have swung from a $5.5 billion year-to-date deficit in June to a $925 million surplus, driven by $2.39 billion in inflows during a single week. This reversal signals renewed institutional demand after months of outflows and suggests the asset class momentum may be shifting ahead of potential regulatory developments.

  • Bitcoin ETFs posted $2.39 billion in net inflows during the week ending Saturday (September 26), the strongest weekly performance in months.
  • Cumulative year-to-date inflows for spot Bitcoin ETFs now stand at $925 million, reversing a $5.5 billion deficit recorded at the end of June.
  • Ethereum spot ETFs attracted $689.88 million in the same week, bringing their cumulative net inflows to $13.94 billion and erasing all prior-week losses.
  • $2.39B Net inflows to Bitcoin ETFs in week ending September 26
  • $925M Year-to-date net inflows for Bitcoin ETFs versus $5.5B deficit in June
  • $4.51B Record outflows from Bitcoin ETFs during June alone
  • $13.94B Cumulative net inflows to Ethereum spot ETFs through September

Spot Bitcoin exchange-traded funds have reversed months of investor withdrawal, turning year-to-date flows positive for the first time since early summer, according to CryptoPotato. The turnaround came after a week of strong inflows that began Wednesday (September 23) with nearly $1 billion entering the funds in a single trading session, a multi-month daily record. The momentum carried through the remainder of the week, though at a declining pace, with investors adding $714.75 million on Thursday (September 24), $346.98 million on Friday (September 25), $190.65 million on Saturday (September 26), and $134.47 million on Sunday (September 27). The cumulative total pushed year-to-date Bitcoin ETF flows into positive territory at $925 million, a striking reversal from the conditions prevailing in June.

Bitcoin ETF recovers from June’s record $4.51 billion outflow

The recovery gains weight when measured against the severity of the earlier decline. In June, Bitcoin ETFs suffered a record $4.51 billion in outflows, and May had seen a painful $2.43 billion leave the funds. Those two months combined created a $5.5 billion year-to-date deficit by the end of June, seemingly insurmountable for the remainder of 2026.

The narrative shifted sharply in July, though gains were modest at first with only $172 million in inflows.

August accelerated the recovery with $3.52 billion entering the funds, and September maintained momentum with $2.7 billion through the week ending Sunday (September 27). The weekly surge of $2.39 billion represents the strongest sustained inflow performance in recent months.

Ethereum ETFs post $689.88 million weekly inflow and hit new multi-month high

Ethereum spot ETFs matched the bullish sentiment, gaining $689.88 million during the same week and erasing all losses from the prior trading week by a wide margin. The inflows began strong on Wednesday (September 23) with $270 million and continued in positive territory through Sunday (September 27). The cumulative net inflows for Ethereum spot ETFs now stand at $13.94 billion, a new multi-month high.

The underlying Ethereum asset touched $2,800 during the week but was stopped there and now trades at around $100 lower.

Bitcoin remains 40% below all-time high despite institutional demand surge

The price-flow divergence has drawn attention from market observers. Bitcoin remains more than 40% away from its all-time high, yet spot cumulative ETF flows are only 10% away from their all-time highs, according to commentary posted Saturday (September 26) by Crypto Rover, a cryptocurrency analyst.

Institutional money is accumulating like never before and has shortened the bear market dramatically.

Crypto Rover, cryptocurrency analyst

The gap between ETF inflows and price appreciation suggests that institutional investors are positioning for upside before Bitcoin reaches new highs, potentially indicating confidence in further gains ahead.

The BlockWest read. The week’s inflows reveal that institutions have returned after a summer of uncertainty. With ETF flows approaching record cumulative levels while the asset price lags, allocators face a timing question: whether current positioning reflects genuine conviction about coming appreciation or merely profit-taking on a relief bounce from June’s lows. The next test comes if weekly inflows sustain above $1 billion.

The sustainability of these flows through early October will determine whether the summer reversal becomes a lasting trend. Crypto Rover’s assertion that institutional accumulation has accelerated will be tested by the next high-volume trading week and any material moves in Bitcoin’s price that might trigger fresh institutional positioning decisions.

SEC staff classify staking receipt tokens as digital tools, not securities

SEC staff classify staking receipt tokens as digital tools, not securities

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The SEC’s Division of Corporation Finance has told staff that tokens issued for staking ether are not securities, provided they function only as receipts for the underlying coin. The guidance arrives three years after the same agency fined Kraken $30 million over its US staking program, marking a sharp reversal in enforcement posture toward an activity that once drew lawsuits.

  • SEC staff published the FAQ guidance on Friday, September 25, 2026, covering staking receipt tokens and buybacks.
  • Kraken paid $30 million in February 2023 and shut its US staking service after advertising returns as high as 21%.
  • The Senate failed to pass the Clarity Act this month, leaving crypto oversight without a statutory split between the SEC and CFTC.
  • $30M Kraken’s 2023 settlement, the benchmark SEC staking case
  • 21% annual return Kraken advertised, cited in SEC’s original complaint
  • 16 digital commodities named in the March 17 interpretive release, including ETH
  • $2,685 ether’s price near the time of the guidance, per BeInCrypto

The BeInCrypto reported that the Division of Corporation Finance issued the FAQs on crypto assets on Friday, addressing how liquid staking tokens should be treated under federal securities law. Staking lets holders lock up coins to help secure a blockchain in exchange for rewards, and liquid staking services issue a tradable token as a receipt for the locked coins. The FAQs classify that receipt as a “digital tool” rather than a security, so long as the coin behind it is itself a digital commodity.

Staking receipt tokens win digital tool status under new SEC staff FAQs

The guidance leans on the March 17 interpretive release in which the SEC and the Commodity Futures Trading Commission jointly named 16 digital commodities. Ether, trading near $2,685 at the time, was among them. Because ETH already sits outside securities classification under that release, a token that merely evidences a deposit of staked ETH inherits the same treatment.

The FAQ document is explicit about what counts as a mere receipt. The token cannot alter the rights tied to the staked ETH, cannot add extra rewards, and the provider cannot lend, pledge or otherwise reuse the deposited coins.

Staff also addressed a separate scenario: liquid staking providers whose tokens derive value from the “programmatic operation of a crypto system,” rather than simply evidencing a deposit. Those tokens can instead be classified as digital commodities in their own right, the FAQ notes, a distinction that leaves room for disagreement over which category a given liquid staking product falls into.

Kraken’s 21% return pitch drew the $30 million penalty SEC now contrasts with receipts

The staff position stands in direct contrast to the SEC’s 2023 case against Kraken. The SEC’s February 2023 press release detailed how Kraken advertised annual returns as high as 21% through its staking-as-a-service program, conduct the agency said turned the offering into an unregistered securities sale. Kraken paid $30 million and ended its US retail staking service to settle the charges.

Whether it’s through staking-as-a-service, lending, or other means, crypto intermediaries, when offering investment contracts in exchange for investors’ tokens, need to provide the proper disclosures and safeguards required by our securities laws.

Gary Gensler, then SEC chair

Four months later the agency sued Coinbase, calling its staking program an unregistered securities offering. The SEC dropped the Coinbase suit in February 2025. Staff statements in May and August 2025 then concluded that protocol staking and liquid staking generally do not involve securities offerings, setting up Friday’s FAQ as the most detailed articulation of that shift.

Crenshaw’s dissent and the Clarity Act’s Senate failure leave the guidance unsettled

Not every commissioner endorses the new framework. Commissioner Caroline Crenshaw wrote a response titled “Caveat Liquid Staker” arguing the August 2025 statement rested on assumptions that may not match how real staking programs operate. The FAQs themselves carry no binding weight, stating plainly that they represent staff views the Commission has neither approved nor disapproved.

That caveat matters more now. The Clarity Act, a bill meant to divide crypto oversight between the SEC and CFTC by statute, failed in the Senate this month.

BeInCrypto reported in March that analysts believed regulators had already delivered most of what the bill promised through guidance and settlements rather than legislation. The gap those analysts flagged remains: staff guidance, unlike a law, can be withdrawn by a future SEC leadership without a congressional vote.

The BlockWest read. For liquid staking providers and the exchanges that list their tokens, the FAQ is a compliance green light rather than a legal shield. Any provider tempted to advertise fixed yields, the way Kraken did, risks re-triggering the same Howey analysis the SEC applied in 2023. Institutional allocators eyeing staked-ETH products should treat this as staff comfort, not statutory protection, until Congress or a future Commission vote locks it in.

The open question the FAQ does not resolve is which liquid staking tokens count as pure receipts versus digital commodities in their own right, a distinction staff left to facts and circumstances rather than a bright line. With the Clarity Act stalled in the Senate, that determination will keep falling to Division of Corporation Finance staff on a case by case basis until lawmakers revisit the bill or a new Commission majority reconsiders the FAQs altogether.

ShredPay joins Jack Henry network to offer stablecoin services to banks

ShredPay joins Jack Henry network to offer stablecoin services to banks

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ShredPay has joined Jack Henry’s Fintech Integration Network, giving banks and credit unions on Jack Henry’s core systems a technical pathway to stablecoin and digital-asset services. The move matters for BlockWest readers because it targets one of the persistent obstacles to bank-level stablecoin adoption: integration with existing account, payment and compliance infrastructure rather than demand for the product itself.

  • ShredPay joined Jack Henry’s Fintech Integration Network in an announcement dated September 21.
  • Integration runs through jXchange and SymXchange APIs, the interfaces Jack Henry uses to connect fintech products to core banking systems.
  • Jack Henry serves approximately 7,400 banks and credit unions combined, though none are automatically enrolled in ShredPay’s service.
  • 7,400 banks and credit unions served by Jack Henry’s core network
  • Sep 21 date the ShredPay-Jack Henry integration was announced

ShredPay, a stablecoin and digital-asset management platform, has become part of Jack Henry’s Fintech Integration Network. The partnership, announced September 21, gives financial institutions running Jack Henry’s core banking technology a route to connect with ShredPay’s stablecoin and digital-asset offerings. The story was first reported by NewsBTC.

This is an integration, not a blanket rollout. Jack Henry customers gain access to the option; they still have to choose to turn it on.

ShredPay Plugs In Through jXchange and SymXchange

The connection runs through jXchange and SymXchange, the application programming interfaces Jack Henry provides so third-party fintech products can talk to its core banking systems. These APIs handle the plumbing that links a bank’s existing account, payment and reporting infrastructure to outside services.

That plumbing is often the real obstacle to bank adoption of digital-asset tools. A bank may want stablecoin settlement capability, but building a custom connection into its core system for a single vendor is costly and slow. By building to Jack Henry’s existing integration layer, ShredPay avoids requiring each institution to engineer a bespoke connection from scratch.

Jack Henry’s 7,400-Institution Network Sets the Scale

Jack Henry serves roughly 7,400 banks and credit unions across its core banking platforms, a base large enough to make integration-layer access commercially significant even without guaranteed adoption. The figure describes the total pool of institutions technically reachable through the network, not a customer count for ShredPay itself.

Each of those 7,400 institutions makes its own decision on whether to activate ShredPay’s services. Getting into the integration layer used by a major core-banking provider is a distribution opportunity, not a signed deal.

The announcement frames the move as opening a technical and commercial path rather than delivering an immediate rollout across Jack Henry’s customer base. Neither ShredPay nor Jack Henry disclosed how many institutions, if any, have committed to adopting the integration so far.

What Comes Next for Bank-Level Stablecoin Adoption

Stablecoins are increasingly discussed by banks and fintechs as payment and settlement infrastructure rather than purely crypto-native assets. ShredPay’s entry into Jack Henry’s integration network is one more attempt to move that infrastructure into conventional banking workflows rather than keep it separate from core systems.

Whether any of Jack Henry’s 7,400 institutions actually adopt ShredPay’s service is the open question the announcement does not answer. Neither company has published an adoption timeline or named a first bank customer.

The BlockWest read. The story is less about ShredPay than about core-banking vendors becoming gatekeepers for stablecoin distribution. For allocators and bank technology committees, the integration lowers the cost of a pilot but does not remove the compliance and balance-sheet questions that come before any live deployment. Watch which of Jack Henry’s institutions moves first, since that decision will shape whether rivals build similar API bridges.

Neither ShredPay nor Jack Henry has named a launch institution or disclosed an adoption timeline, leaving the next concrete marker as whichever bank or credit union in the 7,400-member network first activates the service.

WisdomTree integrates MoonPay payment infrastructure into tokenized fund platform

WisdomTree integrates MoonPay payment infrastructure into tokenized fund platform

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WisdomTree has plugged MoonPay’s payment infrastructure directly into its WisdomTree Prime platform, giving retail users a more familiar way to buy tokenized fund shares. The move puts WisdomTree in a widening race among major asset managers to solve tokenization’s real bottleneck: getting ordinary investors past the on-ramp.

  • WisdomTree integrated MoonPay’s card and bank-transfer infrastructure into WisdomTree Prime, its tokenized-fund platform.
  • MoonPay’s ecosystem reaches more than 30 million registered accounts, all of which gain a new route to WisdomTree’s products.
  • The partnership includes access to WTGXX, WisdomTree’s Government Money Market Digital Fund, a regulated fund rather than a stablecoin.
  • 30M+ registered MoonPay accounts now able to reach WisdomTree’s tokenized funds
  • 2 large asset managers, including BlackRock and Franklin Templeton, chasing tokenized cash products

WisdomTree has integrated MoonPay’s payment infrastructure into its tokenized-fund platform, WisdomTree Prime, giving retail investors a more direct path into blockchain-based investment products, according to a WisdomTree press release. The partnership connects MoonPay’s card and bank-transfer rails to WisdomTree’s tokenized offerings, including its Government Money Market Digital Fund, ticker WTGXX. MoonPay says its ecosystem serves more than 30 million registered accounts, a base WisdomTree can now tap for distribution. The story was first reported by NewsBTC.

MoonPay’s Card And Bank Rails Now Plug Into WisdomTree Prime

Tokenization has been pitched for years as a way to modernize traditional finance, but moving ordinary users into tokenized products has remained the harder problem. Opening the right account, funding a crypto wallet and parsing blockchain settlement each add friction that keeps everyday investors away.

MoonPay’s role in the partnership is to remove that friction. Linking its card and bank-transfer infrastructure to WisdomTree Prime lets users onboard the way they would with a typical fintech app rather than a crypto exchange.

WTGXX Fund Is A Regulated Money Market Vehicle, Not A Stablecoin

The centerpiece of the expanded access is WTGXX, WisdomTree’s Government Money Market Digital Fund. The fund is a regulated money market product whose ownership records and distribution run on blockchain infrastructure, distinct from a stablecoin pegged to a fiat currency.

Money market funds have become one of the most active early use cases for tokenization because they are simple, highly liquid and backed by familiar short-term government assets. Layering blockchain infrastructure on top adds the potential for faster settlement, programmable ownership and easier integration with digital wallets, benefits that appeal to both issuers and holders.

BlackRock And Franklin Templeton Are Racing WisdomTree On Distribution

WisdomTree is not the only asset manager pursuing tokenized cash and Treasury products. BlackRock and Franklin Templeton are both experimenting with similar offerings.

With multiple firms now capable of tokenizing similar fund structures, the competitive edge is shifting from product design to distribution. WisdomTree’s wager is that plugging into MoonPay’s more than 30 million registered accounts gives it a wider on-ramp than rivals relying solely on crypto-native channels.

The BlockWest read. We think the real contest here is over who controls the on-ramp, not who tokenizes fastest. WisdomTree is betting that MoonPay’s consumer payment rails, not new blockchain features, will decide whether tokenized money market funds reach beyond crypto-native buyers. If that bet works, expect BlackRock and Franklin Templeton to pursue their own retail-payment partners rather than build further product variants.

WisdomTree has not disclosed a rollout timeline beyond the current integration, leaving open whether the MoonPay access will extend to other funds on the Prime platform or remain limited to WTGXX for now.

S&P Global acquires OpenZeppelin to build on-chain financial infrastructure

S&P Global acquires OpenZeppelin to build on-chain financial infrastructure

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S&P Global’s acquisition of OpenZeppelin signals a coordinated push to supply the data, risk assessment and technical expertise institutions need as financial markets migrate to blockchains operating 24/7. The deal follows S&P’s investment in crypto-data provider Kaiko and reflects a strategic bet that traditional financial infrastructure providers can dominate the emerging on-chain ecosystem.

  • S&P Global agreed to acquire smart contract security firm OpenZeppelin on September 17, with CEO Demian Brener remaining in charge as a separate business unit.
  • Kaiko received $110 million in Series B funding led by S&P Global three days before the OpenZeppelin deal, with participation from major financial firms including Nasdaq and Royal Bank of Canada.
  • OpenZeppelin’s open-source contracts have supported over $37 trillion in transferred value and completed more than 900 security engagements identifying over 10,000 vulnerabilities.
  • $37T Total transferred value supported by OpenZeppelin contracts to date
  • 900+ Security engagements completed by OpenZeppelin firm
  • $110M Series B funding raised by Kaiko, led by S&P Global
  • 250+ Financial institutions and regulators using Kaiko market data and infrastructure

S&P Global agreed to acquire OpenZeppelin, the smart contract security firm, according to a company announcement on September 17. The transaction gives the financial data and ratings company direct exposure to the software layer underpinning tokenized finance, stablecoins and decentralized applications. Financial terms were not disclosed, and the deal remains subject to closing conditions. The story was first reported by CryptoSlate.

OpenZeppelin Expands S&P’s On-Chain Technology Risk Capabilities

As institutions move financial products onto blockchains, they face a new category of risk: vulnerabilities in the smart contracts that issue, transfer and manage those assets. S&P said OpenZeppelin will expand its capabilities in what the company described as the “on-chain technology-risk layer,” including security assessments and benchmarks for digital assets. This adds a technical dimension to S&P’s existing financial-risk business, which already covers issuers, collateral and liquidity for tokenized products.

OpenZeppelin’s Contracts library is widely used across blockchain applications, while its security teams review code before deployment. The company has completed more than 900 security engagements and identified over 10,000 vulnerabilities. Chief Executive Demian Brener will remain in charge and report to S&P Global Ratings President Yann Le Pallec, with OpenZeppelin continuing to operate as a separate business unit.

Our digital assets strategy centers on bringing trusted data, benchmarks and transparent risk assessment to markets as they move onchain.

Yann Le Pallec, S&P Global Ratings President

S&P said the acquisition is not expected to materially affect near-term financial results, positioning it as an expansion of capabilities rather than a major revenue driver.

Kaiko Investment Precedes OpenZeppelin Acquisition by Three Days

On September 14, S&P Global led a strategic investment in crypto-data provider Kaiko, extending the company’s Series B funding to $110 million. DRW, Susquehanna, Royal Bank of Canada, Nasdaq, BNP Paribas and other financial firms participated in the round. Kaiko provides market data and infrastructure to more than 250 financial institutions, regulators and asset managers, connecting to over 150 exchanges to support trading and risk management across markets that operate around the clock.

The two investments position S&P to address the infrastructure requirements of 24/7 blockchain markets. S&P and Kaiko have already extended traditional financial benchmarks onto blockchain rails, bringing the iBoxx US Treasuries Index on-chain in March and combining their digital-asset benchmark businesses into the S&P Kaiko Digital Asset Indices earlier this month. Kaiko supplies crypto-native pricing data, S&P provides benchmarks and financial analysis, and OpenZeppelin now brings smart contract expertise, creating a vertically integrated offering for institutional users.

S&P’s Broader Buildout Addresses Always-On Market Infrastructure

The OpenZeppelin and Kaiko moves follow a series of product launches positioning S&P to serve markets that do not close. S&P Dow Jones Indices developed the S&P Digital Markets 50 Index combining 35 US-listed crypto-ecosystem companies with 15 cryptocurrencies, while Dinari worked with Chainlink to create a tokenized version on blockchain. S&P has also issued stablecoin stability assessments, provided a credit rating for DeFi protocol Sky and licensed the S&P 500 for tokenized products.

Always-on markets require continuous pricing, collateral valuations, benchmarks and risk controls to operate overnight and through weekends, while tokenized assets introduce software and smart contract risks alongside conventional financial ones.

As trading expands outside traditional exchange hours and more securities migrate onto blockchains, institutions may increasingly require a single provider capable of assessing both the asset itself and the technology that determines how it moves. S&P’s acquisition of OpenZeppelin and investment in Kaiko position the company to supply that comprehensive risk infrastructure to banks, asset managers and issuers expanding their blockchain operations.

The BlockWest read. S&P is not entering digital assets as a new venture capital play but rather extending its existing institutional franchise into markets that never close. The company’s leverage comes from relationships with banks and asset managers already paying for S&P’s data, indices and ratings. As long as regulatory frameworks allow tokenized products to flourish, S&P’s position as a trusted third-party risk assessor gives it durable competitive advantage over crypto-native competitors lacking institutional credibility.

S&P has said the OpenZeppelin acquisition remains subject to closing conditions, but no timeline or conditions have been publicly disclosed. Watch for filings and announcements revealing the acquisition’s completion, along with S&P’s concrete plans for integrating OpenZeppelin’s audit and engineering teams with its existing digital assets division.

SEC grants tokenized stock trading venues temporary exemption from exchange rules

SEC grants tokenized stock trading venues temporary exemption from exchange rules

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The SEC has created a pathway for tokenized stocks to trade on blockchain venues without triggering exchange registration requirements, marking the first formal regulatory framework for onchain equity trading in the US. The temporary exemption sets conditions around smart contract transparency, trading halts, and investor protections that shape how this nascent market can operate.

  • SEC issued an Innovation Exemption on September 17 allowing Tokenized Securities Venues temporary relief from exchange registration requirements.
  • Tokenized shares must provide identical rights to traditional stock, with trading volumes and available securities limited under the exemption.
  • Smart contracts must be publicly auditable and deployed on public, permissionless blockchains, with trading halts tied to primary exchange suspensions.
  • September 17 Date the SEC issued the Innovation Exemption for tokenized stock trading venues
  • Permissioned AMMs Trading mechanism allowed under the exemption for tokenized National Market System stocks

CryptoPotato reported that the US Securities and Exchange Commission introduced an Innovation Exemption designed to facilitate secondary trading of tokenized stocks on blockchain-based protocols. Issued on September 17 (Wednesday), the order grants Tokenized Securities Venues temporary, conditional relief from being classified as exchanges under the Securities Exchange Act. These venues can facilitate trading of tokenized National Market System stocks through permissioned automated market makers and liquidity pools, creating the first regulatory pathway for equities to trade natively on public blockchains.

Smart Contract Transparency and Chain Requirements Set Baseline Standards

The exemption requires that smart contracts deployed by TSVs be publicly auditable and operate exclusively on public, permissionless blockchains. This ensures that the underlying infrastructure supporting tokenized stock trading remains transparent and accessible to regulatory oversight. The requirement reflects the SEC’s intent to maintain visibility into how venues execute trades and manage liquidity pools.

Tokenized shares must provide holders with identical rights as equivalent traditional stocks under the exemption’s investor protection framework.

Trading Halts and Volume Caps Limit Initial Market Scope

Trading on these venues must halt whenever the underlying stock is suspended on its primary exchange, creating a direct link between onchain and traditional market operations. The exemption also imposes limits on trading volumes and the number of securities available through TSVs, constraining the initial size of the market. These guardrails reflect regulatory caution about allowing tokenized equity trading to scale without first demonstrating operational resilience and market integrity.

The SEC also granted conditional relief from dealer registration requirements to certain liquidity providers supplying tokenized stocks to permissioned pools.

SEC Invites Public Input on Permanent Framework

SEC Chairman Paul Atkins stated the exemption is temporary and exists while the Commission evaluates whether additional action is needed to facilitate onchain trading more broadly.

The Innovation Exemption, while temporary, would allow TSVs to trade tokenized NMS stock in a permissioned environment today while the Commission considers the need for additional action to facilitate onchain trading. As we take this important first step, we invite public comment on all aspects of the Innovation Exemption to help inform the Commission as it considers further changes.

Paul Atkins, SEC Chairman

The invitation for public comment signals that the SEC views this exemption as exploratory rather than final. The feedback process will inform whether the Commission moves toward permanent rules that either expand or restrict onchain equity trading. The temporary nature of the relief creates an explicit deadline by which the SEC expects to have gathered sufficient evidence and stakeholder input to determine the next regulatory step.

The BlockWest read. For institutional investors and asset tokenization platforms, this exemption resolves a critical blocking point: venues can now operate without years of regulatory uncertainty, but only within deliberately narrow bounds. The real test lies in whether trading volumes and asset count restrictions prove economically viable for venues, and whether they expose vulnerabilities that justify tightening rather than loosening the rules.

The SEC has set no explicit deadline for when this temporary exemption expires or when it will decide on permanent rules. Watch whether TSVs and liquidity providers actually launch under these conditions, and what trading activity and incident reports emerge over the coming months, since poor outcomes could accelerate stricter permanent rules rather than liberalization.

Coinbase and Ripple leaders call on SEC and CFTC to regulate without Congress

Coinbase and Ripple leaders call on SEC and CFTC to regulate without Congress

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A procedural vote failure on the Digital Asset Market Clarity Act signals that the crypto industry cannot rely on legislative solutions in the near term. Coinbase and Ripple leaders are now calling on the SEC and CFTC to use existing authority to create regulatory clarity without waiting for Congress.

  • The Senate fell short of the 60 votes needed to advance the CLARITY Act on Tuesday.
  • Coinbase co-founder Brian Armstrong said the industry cannot wait for Congress and expects the SEC and CFTC to establish rules using existing authority.
  • Ripple CEO Brad Garlinghouse blamed Democratic politics for the failure and called for a post-mortem on what went wrong.
  • 60 Votes required to advance the bill in the Senate procedural vote
  • ~12 Democrats seen as possible supporters before negotiations collapsed
  • 3 Republicans who voted against the measure: Collins, Hawley, and Moran
  • 1 Republican, Tillis, who voted no to preserve motion to reconsider option

The US Senate failed to advance the Digital Asset Market Clarity Act after a procedural vote on Tuesday (September 16) fell short of the 60 votes needed to move forward. According to CryptoPotato, the failure followed last-minute negotiations between Republicans and crypto-friendly Democrats that broke down over ethics rules and concerns about President Trump and his family’s involvement in the crypto industry. Around a dozen Democrats had been viewed as potential supporters, but they ultimately withheld their votes when talks produced no agreement.

Armstrong Signals Shift to Regulatory Path Over Legislative Strategy

Coinbase co-founder Brian Armstrong acknowledged the setback as “disappointing” but said the industry “cannot wait” for Congress to act. Armstrong stated that the SEC and CFTC already possess sufficient authority to establish clear rules and expects them to begin working on that foundation in earnest. He argued that clarity is coming to the crypto sector regardless of the bill’s fate.

Armstrong also noted that some concessions made during CLARITY negotiations were difficult for the industry to accept, potentially making the setback easier to absorb.

Ripple CEO Criticizes Democrats, Emphasizes Regulatory Optimism

Ripple CEO Brad Garlinghouse characterized the vote as personally stinging and said his team gave everything to advance the legislation.

This was an opportunity bigger than Ripple or one company – we did this for the industry, for consumers and to cement the US’s position as the crypto capital of the world and as a leader in the future of finance. Ultimately, consumers and US competitiveness got left behind.

Brad Garlinghouse, Ripple CEO

Garlinghouse blamed Democratic politics for elevating what he called the “anti-crypto army” over substantive policy considerations. He called for a post-mortem examination of why the bill failed, yet expressed optimism that SEC Chair Atkins and CFTC Chair Selig will continue developing rules to address the legislative gap the failed bill would have closed.

Republican and Democratic Divisions Block Path Forward

Three Republicans voted against the measure: Susan Collins of Maine, Josh Hawley of Missouri, and Jerry Moran of Kansas.

North Carolina Republican Thom Tillis also voted no, though he did so specifically to preserve his ability to file a motion to reconsider and keep open the possibility of another vote. Delaware Democrat Chris Coons did not vote. Democratic Senator Ruben Gallego said Republicans should have worked more closely with his party on a version that included stronger ethics provisions, while Catherine Cortez Masto noted she had negotiated until the final moments but that important issues remained unresolved after Republican leadership ended talks.

The BlockWest read. The legislative defeat does not end the regulatory process; it redirects it. Both Armstrong and Garlinghouse signaled confidence that existing SEC and CFTC authority will yield rules that address market structure, custody, and trading standards. For institutional allocators and stablecoin operators, the timeline and scope of agency rulemaking now matter far more than Congressional action. The question is whether agencies can deliver clarity faster than a recalcitrant Congress.

The next inflection point is whether the SEC and CFTC move quickly to fill the regulatory gaps that CLARITY was designed to close. Garlinghouse specifically named SEC Chair Atkins and CFTC Chair Selig as the officials expected to continue rulemaking, making their next statements on digital asset regulation the concrete marker to watch for whether industry confidence in the administrative path is justified or merely hopeful.

Senate votes on CLARITY Act cryptocurrency regulatory framework today

Senate votes on CLARITY Act cryptocurrency regulatory framework today

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The Senate is voting on the CLARITY Act today, a comprehensive cryptocurrency regulatory framework that has evolved significantly in recent weeks to address ethics concerns and prosecutorial objections. Passage could reshape how digital assets and their participants are regulated at the federal level.

  • President Trump agreed to ethics language requiring removal of his name from family crypto ventures worth over $1 billion in profits since January 2025.
  • The revised bill dropped explicit criminal prosecution protections for developers but added safeguards for miners, validators, and non-custodial service providers.
  • A stablecoin circuit breaker provision allows the US Treasury to intervene if community banks face deposit outflows tied to digital assets.
  • $1B+ Trump family cryptocurrency profits since taking office in January 2025
  • Sept 15 Senate vote date for the CLARITY Act legislation today

The Senate is scheduled to vote on the CLARITY Act today, Tuesday (September 15), marking a pivotal moment for federal cryptocurrency regulation under the Trump administration. According to reporting by Watcher Guru, the bill has undergone substantial revisions in recent months to address concerns from lawmakers, prosecutors, and ethics advocates. The legislation reflects President Trump’s stated commitment to supporting the cryptocurrency industry, a position he emphasized during his presidential campaign and has maintained since taking office in January 2025.

Ethics Language And Trump Family Crypto Holdings Become Central Sticking Point

A major obstacle to the bill’s passage centered on ethics rules designed to prevent elected officials and their families from profiting from cryptocurrency market movements they influence through policy. Lawmakers raised particular concerns about President Trump’s family cryptocurrency interests, which have generated more than $1 billion in profits since he took office. The Trump administration resolved this impasse by agreeing to ethics language that would require President Trump’s name to be removed from his family’s cryptocurrency ventures.

This concession addressed a leading objection raised by multiple senators skeptical of the legislation.

Developer Protections Modified To Win Prosecutorial Support

The updated bill text reflects a strategic trade-off in how developer protections are structured. Explicit language shielding developers from criminal prosecution was removed from the legislation to address concerns raised by prosecutors and law enforcement officials. While this deletion might appear unfavorable to the cryptocurrency industry, it is expected to increase support among lawmakers concerned about carving out blanket immunity for software developers.

The revised version maintains substantive protections for developers, miners, and validators who do not hold customer funds directly. These actors, who facilitate network operations without controlling user assets, receive clearer regulatory treatment. The bill also introduces a stablecoin circuit breaker mechanism permitting the US Treasury to intervene if community banks face widespread deposit outflows resulting from stablecoin-related disruptions.

Senate Support Expected As Key Objections Fall Away

With the major points of contention resolved, legislative observers expect the Senate to vote in favor of the CLARITY Act today.

The removal of Trump family involvement from cryptocurrency ventures, combined with the removal of blanket criminal protections that prosecutors opposed, has narrowed the grounds for objection among senators from both parties. Should the measure pass, it would establish the first comprehensive federal framework governing how digital assets and their participants interact with banking, securities, and commodities oversight.

The BlockWest read. Markets have priced in growing odds of passage over recent weeks, but the language around institutional participation in stablecoins and the circuit breaker mechanism will shape how banks and deposit platforms compete with digital asset platforms in the coming months. The question is not whether the bill passes, but how quickly institutions conform to its requirements.

The Senate vote on the CLARITY Act takes place today, Tuesday (September 15), with the outcome expected to be announced before end of business. Passage would trigger immediate market activity and require Treasury, the SEC, the CFTC, and banking regulators to issue guidance on implementation timelines and compliance standards.

CLARITY Act’s Senate passage odds fall below 20% ahead of Tuesday vote.

CLARITY Act’s Senate passage odds fall below 20% ahead of Tuesday vote.

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The CLARITY Act, a landmark bill to restructure crypto market oversight, faces a Senate procedural vote on Tuesday (September 16) that requires 60 votes to advance; betting markets price its odds of passage at below 20%, down sharply from 34% the previous day. Republican and Democratic negotiators remain at odds over ethics provisions and banking safeguards, with key GOP senators uncommitted and the industry deployed to lobby wavering lawmakers.

  • Polymarket odds of CLARITY Act enactment fell below 20% after reaching about 34% in the prior 24 hours.
  • The bill requires 60 Senate votes to proceed; Republicans hold 53 seats and cannot advance it alone without Democratic support.
  • Senate Democrats delivered a counterproposal to GOP negotiators Monday night, rejecting the Republicans’ latest offer on ethics rules.
  • 53 Republican senators, insufficient to reach 60-vote threshold for Senate passage alone
  • 60 Votes needed to advance the bill past Tuesday procedural hurdle in Senate
  • 126 Additional substantive changes Democrats requested and negotiators incorporated into bill text
  • 600+ Pages in final CLARITY Act text after successive rounds of bipartisan negotiation

The CLARITY Act is headed toward a critical procedural test on Tuesday afternoon, according to CryptoSlate reporting, as Senate Republicans struggle to assemble the 60-vote coalition required to advance the crypto market-structure legislation. The bill, designed to replace the current regulatory patchwork by dividing oversight responsibilities across agencies, has deteriorated sharply in its odds of passage. With Republicans holding 53 seats, they cannot clear a procedural vote without support from at least seven Democratic senators, a target that has grown harder to reach as the two parties clash over ethics provisions and banking safeguards.

GOP Defections And Banking Concerns Erode Republican Support

The Senate path to 60 votes has narrowed considerably as Republican senators express reservations about the measure. Sen. Susan Collins has raised concerns that the bill could accelerate deposit flight from community banks, a key objection from the financial industry that opposes crypto firms competing more aggressively for customer balances. Sen. John Cornyn has also declined to commit to the legislation, and Sen. John Curtis has distinguished between supporting debate and voting for final passage, signaling he will not back the current text.

These GOP fractures prompted the White House to intensify outreach to Republican senators, attempting to prevent banking-industry opposition from eroding further support.

Democrats Reject Final Republican Package On Ethics Rules

Senate Democrats delivered their own counterproposal to Republican negotiators on Monday night (September 15), rejecting what GOP aides had described as their final legislative offer. Republicans had spent the weekend attempting to close a gap on ethics provisions by tightening rules governing financial conflicts involving senior government officials, changes meant in part to address Democratic concerns about President Trump’s crypto interests.

It’s becoming clear that some Democrats simply won’t get to yes, no matter what we put in the text. President Trump has now agreed to two historic ethics provisions — provisions these very members demanded. We’ve given you everything you’ve asked for, yet you keep holding the bill hostage, demanding more and more and more. It’s beyond frustrating. There’s nothing left to give.

Sen. Cynthia Lummis, via social media post

Sen. Mark Warner said Democrats who participated in negotiations concluded that the latest Republican package still fell short of their demands. The Democratic counterproposal has been delivered to GOP negotiators, though its provisions remain undisclosed.

Industry Makes Final Pitch As Coalition Strain Shows

With the procedural vote hours away, crypto executives are attempting to convince wavering senators that Democrats have already secured substantial concessions. Coinbase Chief Policy Officer Faryar Shirzad stated that the CLARITY Act addresses all seven principles Democratic senators outlined a year ago for acceptable crypto market-structure legislation, including regulatory jurisdiction, issuer oversight, illicit finance, conflicts of interest and consumer protection. Negotiators incorporated 126 additional substantive changes requested by Democrats, he argued, portraying the bill as the product of more than a year of bipartisan work rather than a Republican proposal Democrats are being asked to accept unchanged.

Ripple Chief Executive Brad Garlinghouse urged lawmakers to vote yes, warning that “perfect can’t be the enemy of good.”

The strain on the coalition extends beyond the Senate floor. Some House Democrats who backed crypto legislation earlier in Congress have grown concerned that major industry-backed super PACs may not support them in upcoming elections despite their votes, according to Semafor. That unease adds pressure to the standoff as crypto political groups decide where to deploy substantial campaign resources. A successful procedural vote would advance the bill to floor debate, where amendments on ethics, banking and stablecoin competition would likely consume much of late September. A procedural defeat could prove more damaging; Lummis warned such an outcome would “drive the digital asset industry overseas, leave consumers vulnerable, and sideline American leadership.”

The BlockWest read. The betting markets are pricing in Republican failure to hold their own conference, not Democratic intransigence. Lummis and industry executives are arguing Democrats have exhausted negotiating leverage, yet Democrats are delivering counter-proposals rather than signaling final positions, suggesting their public posture and private negotiating stance remain misaligned as the vote approaches.

The Senate is scheduled to vote on the procedural motion on Tuesday afternoon (September 16). If the motion fails to reach 60 votes, the CLARITY Act is unlikely to advance further this congressional session, ending the most serious legislative push to overhaul crypto regulation since the sector’s emergence.

Bitcoin Confronts 87% Probability of Federal Reserve Rate Increase on Wednesday: Can Treasury Intervention Sustain the Gains?

Bitcoin Confronts 87% Probability of Federal Reserve Rate Increase on Wednesday: Can Treasury Intervention Sustain the Gains?

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Bitcoin’s near-term price action hinges on a Federal Reserve decision Wednesday, but institutional observers suggest the Treasury Department’s bond management and digital asset regulation may matter more to long-term market direction. The outcome could reshape how digital dollars and stablecoins operate in the U.S. financial system.

  • Futures markets price an 86.5% probability of a quarter-point Fed rate hike on Wednesday, September 16.
  • Bitcoin has declined several thousand dollars from $82,000 in early September as hike odds rose from 50/50 on September 4.
  • Treasury’s GENIUS Act stablecoin rules take effect January 18, 2027, with Treasury and OCC having published proposals while the Fed has not.
  • 86.5% Probability of quarter-point Fed rate hike priced in CME futures for Wednesday
  • 3.4% Annual inflation rate following 0.4% August CPI increase versus 0.1% in July
  • $4B Treasury longer-dated bond buyback amount, doubled on August 19 announcement
  • Jan 18, 2027 Effective date for GENIUS Act stablecoin regulatory framework

Bitcoin trades near $77,250 as the Federal Reserve prepares to announce its interest rate decision Wednesday, with Chair Kevin Warsh set to deliver the call nearly four months into his tenure. Futures markets have priced an 86.5% chance of a 0.25-point increase, reflecting market reaction to recent inflation data that showed consumer prices rising 0.4% in August compared to 0.1% in July, pushing the annual rate to 3.4%. The cryptocurrency has retreated from early September levels when it approached $82,000, surrendering gains as the probability of a hike climbed steadily from 50/50 odds on September 4.

The cryptocurrency market has grown accustomed to Fed-driven volatility over the past several years. Interest rate decisions directly influence the opportunity cost of holding non-yielding assets like Bitcoin, as higher rates make traditional savings vehicles and fixed-income instruments more attractive to investors. Conversely, lower or stable rates tend to support riskier assets, including digital currencies.

Bitcoin’s sensitivity to monetary policy reflects its role as a hedge against currency debasement and inflation. When the Fed signals tighter policy, traders often reassess their positions in assets that benefit from accommodative conditions. The recent pullback from $82,000 highlights how shifts in rate expectations can trigger sharp moves across cryptocurrency markets, particularly among retail and leveraged traders.

Treasury Bond Intervention May Matter More Than Rate Decision

Caitlin Long, CEO of Custodia Bank, contends that Treasury Department actions in the bond market carry greater significance for digital assets than the Fed’s immediate rate decision. The Treasury demonstrated this influence in August when it announced a doubling of longer-dated bond buybacks to $4 billion per operation on August 19, causing yields to drop sharply. That program is currently running between September 9 and November 4, with Treasury Secretary Scott Bessent able to draw from a Treasury General Account holding close to $1 trillion.

Treasury bond market interventions operate through different mechanisms than traditional Fed policy. While the Federal Reserve typically controls short-term rates through its discount window and open market operations, Treasury buyback programs directly purchase longer-dated securities, flattening the yield curve and reducing borrowing costs across the economy. Such operations can signal the government’s commitment to supporting financial conditions even as the Fed tightens policy.

UBS strategists framed the operative question this month as not whether the Fed moves, but the conditions it moves into, with those conditions being set at the long end of the bond market.

This framework suggests that Wednesday’s Fed announcement may represent a sideshow compared to the structural shifts occurring in Treasury markets. If the long-end of the yield curve remains well-anchored through continued buybacks, asset prices including Bitcoin could weather a quarter-point hike more easily than historical patterns would suggest.

Treasury Gaining Regulatory Authority Over Digital Dollar Standards

Beyond bond markets, Long identifies a structural shift in financial rulemaking authority. The GENIUS Act, passed in 2025, governs dollar-pegged stablecoins and takes effect January 18, 2027. Treasury and the Office of the Comptroller of the Currency (OCC) have already published proposed rules under the law, while the Federal Reserve has not published guidance.

The regulatory framework represents a significant development in how the U.S. government approaches digital assets. Stablecoins, which are cryptocurrencies designed to maintain a fixed value relative to the dollar, have grown substantially in recent years as infrastructure for decentralized finance and international payments. The GENIUS Act codifies Treasury’s authority over these instruments, marking a departure from previous approaches where regulatory responsibility remained ambiguous across multiple agencies.

There’s no question Treasury is taking a lot more power from the Fed.

Caitlin Long, CEO of Custodia Bank

Treasury has also asserted authority to determine which foreign stablecoins can reach American markets. This extraterritorial reach reflects growing concerns about capital controls and financial sovereignty in an increasingly digital economy. Long expects tokenized deposits, which are bank dollars operating on blockchain infrastructure, to displace traditional stablecoins, a shift that banking groups warned would trigger deposit flight when the law passed.

Tokenized deposits represent an emerging category in the digital asset ecosystem. These instruments allow banks to issue their own digital liabilities on blockchain networks, bypassing traditional stablecoin intermediaries. If widely adopted, such systems could enable faster settlement, reduced counterparty risk, and more direct access to Fed payment infrastructure.

Wednesday’s Fed decision will settle the immediate rate question, but the broader contest over digital dollar architecture extends well into 2027, with Treasury’s regulatory framework and Long’s prediction about tokenized deposits versus stablecoins remaining key variables to watch as January 18, 2027 approaches.

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