US Regulators Continue To Implement Digital Asset-Friendly Measures
The Daily Crypto Update for Institutional Investors
US regulators continue to implement digital asset-friendly measures, aiming to position the country as the ‘crypto capital of the world’ - In this AM’s note, we provide a summary of some of these efforts
‘Project Crypto’ and ‘Crypto Sprint: In July, SEC Chairman Paul Atkins announced ‘Project Crypto,’ a ‘Commission-wide initiative to modernize the securities rules and regulations to enable America’s financial markets to move on-chain.’ In the broadest terms, Project Crypto represents a range of regulatory reforms aimed at facilitating the adoption of blockchain technology and the integration of crypto with traditional financial markets. We described ‘Project Crypto’ as an ‘endorsement of crypto and its related tech.’ In August, the CFTC revealed a parallel effort to Project Crypto. The CFTC’s Crypto Sprint also aims to implement the Trump Administration’s crypto policy.
US-registered exchanges are not prohibited from enabling trading of certain spot crypto asset products: On Tuesday, the SEC and CFTC issued a joint statement, explaining that ‘current law does not prohibit SEC- or CFTC-registered exchanges from’ offering spot crypto trading services. The statement did not indicate which assets specifically are included in the guidance.
The SEC has issued guidance, clearing certain crypto activities from regulatory overhang: In February, the SEC issued a statement indicating that memecoins do not qualify as securities. According to the SEC, memecoins are ‘purchased for entertainment, social interaction, and cultural purposes, and their value is driven primarily by market demand and speculation.’ In May, the SEC asserted that ‘Protocol Staking Activities’ do not qualify as ‘the offer and sale of securities.’ This was followed up with guidance that expressed the view that ‘liquid staking activities’ do not ‘involve the offer and sale of securities’
In August, the US Fed announced it will end its 2023 Biden-Era program that increased supervision of banks’ involvement in digital assets: According to the Fed, since a 2023 program was implemented ‘supervise certain crypto and fintech activities in banks, the Board has strengthened its understanding of those activities, related risks, and bank risk management practices.’ As a result, the Board is folding this oversight back into its regular supervisory process and has withdrawn the 2023 letter that created the program. In April, the Fed rescinded its prior guidance requiring banks to seek supervisory approval before starting new crypto activities. The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. announced similar measures to remove prior restrictive guidance and allow banks to deal with crypto within broader risk management standards.
The SEC has wound down its crypto lawsuits: Heading into Trump’s second term in office, there were numerous ongoing lawsuits between crypto businesses and the SEC. The regulator has taken efforts to dismiss or otherwise end these proceedings. For example, the SEC has ended lawsuits involving Binance, Kraken, Coinbase (NASDAQ: COIN), Ripple, among others.
CRYPTO HEADLINES
European Central Bank President Christine Lagarde called for the European Union to impose equal reserve requirements on non-EU stablecoin issuers as on EU issuers. Lagarde described risks from regulatory gaps and potential arbitrage in multi-issuer stablecoin schemes under MiCA regulation. Separately, last week, the FT reported that EU officials are ‘considering running a digital euro on a public blockchain such as Ethereum or Eolana.’ - link - @CoinDesk
The CFTC issued a 'no-action letter' to Polymarket’s recently acquired QCX, enabling limited US operations without certain disclosures. This follows the Polygon-based prediction market’s regulatory exit in 2022, along with the regulator dropping its appeal against Kalshi, a non-crypto based prediction market. According to CEO Shayne Coplan, the venue now has the regulatory approvals it needs to launch in the US. - link - @CoinDesk
The Federal Reserve Board plans to host a payments innovation conference on October 21, focusing on emerging technologies in US payment systems. Panel topics will include stablecoins, AI applications, decentralized finance, and tokenization. The event will be livestreamed online. - link - @FederalReserve
SUI Group Holdings (NASDAQ: SUIG) acquired 20M SUI tokens, bringing total holdings to ~101.8M tokens valued at USD 344M. The firm holds USD 58M in cash for further SUI purchases and sources tokens at a discount from Sui Foundation. - link - @SUIG
Pointsville raised USD 10M in a funding round led by Valor Capital Group, valuing the digital asset management firm at USD 84M. Investors included Itau Unibanco (BOVESPA: ITUB) and Nu Holdings (NYSE: NU) shareholders, Tether, and Credit Saison. Proceeds will support expansion across Latin America and Asia. - link - @Bloomberg
Japan’s Financial Services Agency (FSA) proposed moving cryptocurrencies under the Financial Instruments and Exchange Act. The move aims to seek tighter regulation to improve investor protection and align oversight with securities law. The FSA report is described as an internal briefing and is not legally binding. - link - @Cointelegraph
TOP ARTICLES
OPEN-SOURCE RESEARCH / LONG-READ OF THE DAY
Hong Kong-Listed Firms Sharpen Digital Asset Investment Strategy Amid Rising Crypto Prices, SCMP, September 4, 2025
Hong Kong outlet South China Morning Post reviews crypto-related developments in the city.
CRYPTO MULTIMEDIA
Eric Trump, Hut 8 CEO on American Bitcoin Debut, Strategy, Bloomberg, September 3, 2025
Eric Trump, co-founder of American Bitcoin, and Hut 8 (NASDAQ | TSX: HUT) CEO Asher Genoot discuss American Bitcoin (NASDAQ: ABTC).
CHART OF THE DAY
Compared to 2021, and levels seen earlier this year, public interest in BTC, measured via Google search volumes, remains relatively tepid.
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Supportive regulation is key—but sometimes optimism turns into defensiveness against critics. I’d love your candid commentary on my recent analysis of such sentiment shifts:
https://beyondthecoin.substack.com/p/the-110k-bitcoin-reality-check-and