1. Federal Reserve Chair Powell hints at potential interest rate cuts
Federal Reserve Chair Powell stated at the Jackson Hole Annual Meeting that the Fed is abandoning the flexible average inflation target framework established in 2020, stressing that stable inflation expectations should not be taken for granted, and the impact of tariffs on consumer prices is now clear. Just relying on uncertain estimates of employment possibly exceeding its maximum sustainable level does not necessarily require tightening policies. If a tight labor market poses risks to price stability, preemptive action may be necessary. Following Powell's comments, BTC surged over 3% briefly, and ETH rose over 7%; Coinglass data showed that over the past hour, more than $200 million was liquidated across the network, including $180 million in short liquidations and over $110 million in ETH liquidations.
2. Ethereum reaches a historic high, peaking at $4,881.50
OKX market data shows that Ethereum reached a historic high, peaking at $4,881.50, currently reported at $4,723.99, with a 24-hour increase of 9.69%.
3. The Hong Kong Monetary Authority plans to implement the Basel crypto asset capital regulation on January 1, 2026
The Hong Kong Monetary Authority recently issued a circular confirming that it will fully implement new bank capital regulations based on the Basel Committee on Banking Supervision's crypto asset regulatory standards in Hong Kong starting January 1, 2026. The new regulations set a maximum risk weight of 1250% for risk exposure to unlicensed public chain crypto assets, requiring banks to hold capital on a 1:1 basis. However, both the Basel Committee and the Hong Kong Monetary Authority have made it clear that the Basel crypto asset regulatory standards generally will not impose credit risk or market risk capital requirements on crypto assets held in custody for clients, provided that the client's crypto assets are segregated from the bank's own assets.
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4. Japan's financial authority plans to reform cryptocurrency taxes, proposing a flat tax rate of 20%
Japan's Financial Services Agency (FSA) plans to include cryptocurrency tax reform in its 2026 tax revision proposal. The reform plan consists of two key parts. First, it involves amending tax laws to classify cryptocurrencies the same as stocks. Second, it includes a legal amendment to reclassify cryptocurrencies as financial products, allowing the FSA to apply insider trading rules, disclosure standards, and investor protection measures under the Financial Instruments and Exchange Act. Currently, Japan taxes cryptocurrency gains as "miscellaneous income" at a progressive rate, which, once local taxes are included, could exceed 50%. In contrast, stocks and bonds are subjected to a flat tax rate of 20%.
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5. African crypto crackdown arrests 1,200 people, including Chinese citizens
The Interpol-led "Serengeti 2.0 Operation" has united law enforcement agencies from 18 African countries and the UK, resulting in the arrest of 1,209 individuals involved in crypto-related cybercrimes, with nearly 88,000 victims and $97.4 million recovered. During the operation, Zambia uncovered a $300 million crypto investment fraud scheme, and Angola shut down 25 illegal mining centers and arrested 60 Chinese citizens.
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6. Wu Says Weekly Highlights: Ethereum breaks historical highs, U.S. SEC considers 'very few' crypto tokens as securities, affluent Asian families increase cryptocurrency investments and news Top 10
This week's news Top 10
1. Ethereum breaks historical highs
Ethereum reached a historic high, peaking at $4,881.50, primarily influenced by Powell's remarks. Federal Reserve Chair Powell stated at the Jackson Hole Annual Meeting that the Fed is abandoning the flexible average inflation target framework established in 2020, stressing that stable inflation expectations should not be taken for granted, and the impact of tariffs on consumer prices is now clear. Just relying on uncertain estimates of employment possibly exceeding its maximum sustainable level does not necessarily require tightening policies. If a tight labor market poses risks to price stability, preemptive action may be necessary.
2. The U.S. SEC has once again postponed the approval of Truth Social and multiple crypto ETFs link
The U.S. SEC has postponed its decision on Truth Social's Bitcoin and Ethereum ETFs to October 8, and on Monday, it also routinely delayed the approval of CoinShares Litecoin ETF, CoinShares XRP ETF, and 21Shares Core XRP ETF. Related XRP trusts and 21Shares Core Ethereum ETF staking proposals have also been delayed. The SEC stated that it needs more time to review relevant rule changes and related issues.
3. U.S. SEC Chair: Only a "very small number" of crypto tokens can be classified as securities link
Paul Atkins, Chairman of the U.S. Securities and Exchange Commission (SEC), stated at the Wyoming Blockchain Summit that only a "very small number" of crypto tokens can be classified as securities, emphasizing that tokens themselves typically do not constitute securities. He pointed out that the SEC would modernize securities laws through the "Project Crypto" initiative to gradually bring the U.S. financial market on-chain. Atkins stressed that regulation should embrace innovation and proposed the need to build a long-term framework that can "guard against regulatory interference."
4. U.S. Department of Justice: Truly decentralized projects without third-party asset control will no longer be subject to 1960(b)(1)(C) charges link
Matt Galeotti, Acting Assistant Attorney General of the U.S. Department of Justice Criminal Division, stated at Jackson Hole that if software systems possess genuine decentralized characteristics, are fully automated, and facilitate peer-to-peer transactions without third-party control over user assets, even with criminal intent, the Department of Justice will no longer bring charges against third parties under (1960 clause) (b)(1)(C). This clause was previously used to charge Tornado Cash developer Roman Storm. Galeotti also stated that well-meaning innovators need not worry about losing their freedom.
5. Federal Reserve Governor Bowman: Regulators must adopt AI and crypto technology to avoid marginalization link
Michelle Bowman, a member of the U.S. Federal Reserve Board, stated at the Wyoming Blockchain Symposium that banks and regulators may face the risk of losing their status in the financial system if they do not actively adopt emerging technologies such as artificial intelligence and crypto. She called for the industry to assist regulators in better understanding blockchain and digital assets to explore their potential applications in combating fraud and other issues. Bowman also mentioned that she would promote reducing regulatory scrutiny related to "reputational risk" and is committed to changing the culture and attitude of regulatory agencies regarding technology adoption and product integration.
6. Australia orders an audit of Binance's local operations link
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has ordered an audit of Binance Australia due to serious issues with its anti-money laundering (AML) and counter-terrorism financing (CTF) controls. AUSTRAC pointed out that Binance's recent independent review was insufficient and raised concerns about high employee turnover, lack of local resources, and management oversight, questioning its compliance governance level. Binance Australia must nominate an external auditing agency within 28 days for AUSTRAC to review and select.
Binance Australia stated that it understands and respects AUSTRAC's decision to appoint an external auditor for an independent review of its anti-money laundering program, emphasizing that this is a regulatory review measure rather than an enforcement action. Currently, Binance has over 1,200 compliance personnel globally, accounting for nearly 22%, with compliance expenditures expected to grow by 33% this year.
7. Affluent Asian families increase cryptocurrency investments, with allocation ratios potentially reaching 5% of their portfolios link
Affluent Asian families and family offices are increasing their investments in cryptocurrencies, driven by bullish sentiment towards digital assets, increasing mainstream applications, and favorable regulations in major markets (especially the U.S. and Hong Kong). UBS indicated that some overseas Chinese family offices plan to increase their exposure to cryptocurrencies to about 5% of their portfolios. Wealth management professionals stated that the mindset of Asian clients has shifted from "just wanting a small allocation" a few years ago to "an essential component of the portfolio," exploring various tools to optimize returns.
8. MetaMask announces the launch of its native stablecoin mUSD on Ethereum and Linea link
MetaMask has announced the issuance of its native stablecoin MetaMask USD (mUSD), scheduled to launch later this year on Ethereum and Linea. mUSD will be issued by the Bridge platform under Stripe and minted through M0's decentralized infrastructure, fully backed 1:1 by cash and highly liquid assets such as short-term U.S. Treasury bonds. This is the first stablecoin directly launched by a self-custody wallet; MetaMask states that mUSD will serve as the default dollar unit in its ecosystem for recharges, exchanges, transfers, cross-chain transactions, and payments, with plans to support the use of MetaMask cards at Mastercard merchants by the end of the year.
9. Bernstein: The crypto bull market may continue until 2027, with Bitcoin potentially rising to $200,000 link
Bernstein analysts' latest report indicates that the crypto bull market is expected to continue until 2027, driven by U.S. policy support and accelerated institutional entry. Analysts predict that Bitcoin will rise to $150,000 to $200,000 within the next year and believe that the next phase of the bull market will no longer be limited to Bitcoin, but will also extend to Ethereum, Solana, and DeFi tokens, which will drive inflows to trading platforms and stablecoin issuers.
On Friday, BitMEX co-founder Arthur Hayes stated in an interview that he has repurchased ETH, reasoning that "the charts indicate prices will continue to rise." He expects Ethereum to potentially rise to $20,000 in this cycle and currently has a heavy position in ETH rather than SOL.
10. Windtree Therapeutics will be delisted from NASDAQ due to failing to meet the minimum closing price maintenance standard link
"BNB Microstrategy" company Windtree Therapeutics received a notification from NASDAQ on August 19, 2025, due to failing to meet the minimum closing price maintenance standard (Rule 5550(a)(2)), with its common stock scheduled to be delisted from NASDAQ capital markets and transferred to OTC markets on August 21. Previously, the company announced plans to raise up to $520 million through equity financing, of which 99% would be used to purchase BNB.
Key financing events
The on-chain RWA exchange DigiFT has completed strategic financing, raising a total of $25 million link
The on-chain stock trading platform StableStock has completed seed round financing, with participation from YZi Labs and others link
AI risk control platform IVIX announces completion of $60 million Series B financing link
London-based digital asset trading firm LO:TECH announces completion of $5 million seed round financing link
AI-native crypto platform Cointel announces completion of $7.4 million strategic financing link
Crypto startup Legion announces completion of $5 million seed round financing link
DeFi smart agent platform Almanak announces completion of $8.45 million financing link
Yield infrastructure protocol Hyperbeat announces completion of $5.2 million seed round financing link
For more industry financing events, please refer to crypto-fundraising.info.
