US SEC plans to launch on-chain stock trading Stripe launches stablecoin issuance platform

Headline

▌The SEC plans to promote blockchain stock trading, but traditional financial institutions strongly oppose it

According to The Information, the U.S. Securities and Exchange Commission is developing a plan to enable stocks to be traded on blockchain technology, similar to cryptocurrencies. This move is a key feature of the Trump administration's regulatory agenda in support of cryptocurrencies, and in the future may allow investors to purchase tokens representing shares of companies such as Tesla and Nvidia on cryptocurrency exchanges. Currently, SEC staff are discussing the proposal with industry representatives. Companies including Coinbase (COIN.O) and Robinhood (HOOD.O) are actively pushing regulators for swift approval to conduct stock trading on blockchain platforms. However, the plan has encountered strong opposition from traditional financial institutions, which have established profit models within the existing market structure. Stripe Launches Open Issuance, a Stablecoin Issuance Platform. Stripe announced the launch of Open Issuance, a stablecoin issuance platform that allows businesses to create customized stablecoins and AI-powered commerce tools, integrating digital dollars and artificial intelligence into online transactions. Crypto wallet provider Phantom's CASH token will be the first to be issued through the platform. Decentralized exchange Hyperliquid's USDH and MetaMask's recently launched stablecoin mUSD will also be issued through the protocol, with more projects in the pipeline.

Market

As of press time, according to Coingecko data:

BTC price is $114,276, up or down -0.4% in the past 24 hours;

ETH price is $4,151.58, up or down -1.8% in the past 24 hours;

BNB price is $1,012.88, up or down -1.7% in the past 24 hours;

-2.1%;

DOGE price is $0.2325, with a 24-hour increase or decrease of -1.0%;

XRP price is $2.84, with a 24-hour increase or decrease of -1.6%;

TRX price is $0.3334, with a 24-hour increase or decrease of -1.1%;

The price of WLFI is $0.1966, with a 24-hour increase or decrease of -2.4%; the price of HYPE is $45.06, with a 24-hour increase or decrease of -1.5%.

Policy

▌The U.S. SEC allows registered investment advisors to use state trust companies to custody crypto assets

The U.S. Securities and Exchange Commission (SEC) recently issued a no-enforcement action letter, allowing registered investment advisors and regulated funds operating under the Investment Advisers Act of 1940 to use state-chartered trust companies as qualified custodians of crypto assets. This move means these financial institutions can hold and manage crypto assets like Bitcoin and Ethereum in the same way they manage cash, providing legal clarity for the digital asset market. Analysts say this is the regulatory clarification the industry has been waiting for for years, and it also signals a further relaxation of US regulators' stance toward the crypto market. U.S. Senator Lummis: Senate Making Progress on Crypto Tax Rules Senator Cynthia Lummis, a vocal advocate of cryptocurrency, stated that the Senate Finance Committee is making progress on legislation regarding how to tax digital assets. “My understanding is that the draft that the Senate Finance Committee is working on has 10 items, nine of which we proposed, plus one, so I think we’re making progress on that front,” the crypto-friendly Wyoming Republican said Tuesday while speaking at BTC in DC in Washington, D.C. The move comes after Cynthia Lummis in July introduced legislation to modernize the tax treatment of digital assets, including a de minimis provision excluding gains or losses on crypto transactions under $300 from taxation and a declaration that digital asset lending is not a taxable event, among other measures. EU Regulators Push for Ban on Multi-Issuer Stablecoins Over Fears of Collapse The European Central Bank is building support for a ban on stablecoins that are issued simultaneously in the EU and other jurisdictions, setting the stage for future clashes over how operators like Circle and Paxos manage their operations across borders. According to people familiar with the matter, the European Systemic Risk Board (ESRB), which is responsible for safeguarding the security of Europe's financial system, adopted a recommendation last week calling for a ban on so-called "multi-issuance" stablecoins. The guidance, approved by a high-level committee of central bank governors and EU officials, is non-binding but will put pressure on regional regulators to implement restrictions or explain how to maintain financial stability in their absence. US Senate rejects Democratic government funding bill, potentially forcing a federal government shutdown. According to CCTV News, the US Senate rejected a Democratic government funding bill on September 30th, local time, and a federal government shutdown could occur within hours. The Senate will reportedly vote on a Republican proposal passed by the House of Representatives. The proposal would provide seven weeks of government funding. If Congress fails to pass a temporary funding bill by the deadline, some federal agencies will be forced to shut down starting October 1st, forcing hundreds of thousands of federal employees to take unpaid leave and impacting the release of US economic data.

▌Fox News: The White House has officially announced an impending government shutdown

According to Fox News, the White House has officially announced an impending government shutdown due to the US Senate's failure to pass a federal agency funding bill.

Blockchain Application

▌Stripe will apply for a federal banking charter to comply with US stablecoin regulations

▌Stripe will apply for a federal banking charter to comply with US stablecoin regulations.

▌Payments giant Stripe will apply for a federal banking charter to comply with US stablecoin regulations. The company also plans to apply for a trust charter from the New York State Department of Financial Services. Stripe announced on Tuesday that it will allow any business to launch its own stablecoin. In a statement, Stripe said the new product, called "Open Issuance," "enables any business to launch and manage its own stablecoin with just a few lines of code." The new service will be powered by Bridge, which Stripe acquired last year for $1.1 billion. Stripe stated: "Businesses can freely mint and destroy tokens, customize their reserves to manage the ratio between cash and treasuries, and choose their preferred partners. Treasuries are managed by BlackRock, Fidelity Investments, and Superstate. Cash is held by Lead Bank to provide liquidity when necessary."

▌The Sandbox announces its vision for AI, Web3, and mobile, and launches SANDchain to empower the creator ecosystem

The Sandbox CEO Robby Yung announced the company's future vision, focusing on AI, Web3, and mobile development. The platform plans to use AI to improve operational efficiency and launch user-oriented generative tools to promote large-scale content creation; in terms of Web3, The Sandbox released the cross-platform infrastructure SANDchain (testnet launched on October 14) and launched a creator monetization mechanism; on the mobile side, the company is internally testing multiple products and is expected to open community closed testing. CoreWeave Signs $14.2 Billion Computing Power Agreement with Meta CoreWeave has signed a deal to provide Meta Platform with up to $14.2 billion worth of computing power, highlighting the enormous cost of developing and running advanced artificial intelligence models. "They liked our infrastructure in an early contract, so they came back for more," CEO Michael Intrator said in an interview. He said that as part of the agreement, CoreWeave will provide the social media giant with Nvidia's latest GB300 system. (Jinshi) The UK Financial Conduct Authority has approved IG Group for a crypto asset license. The UK Financial Conduct Authority has approved IG Group for a crypto asset license.

▌New York Stock Exchange Meets with US SEC Cryptocurrency Task Force to Discuss Tokenized Equities

Nate Geraci, President of The ETF Store, posted on the X platform that the New York Stock Exchange (the world's largest stock exchange) met with the SEC Cryptocurrency Task Force to discuss tokenized equities.

Cryptocurrency

▌Bitwise CIO: Tether Poised to Surpass Saudi Aramco as the World's Most Profitable Company

Bitwise Chief Investment Officer Matt Hougan stated in his latest client memo that Tether could surpass Saudi Aramco to become the most profitable company in history. Tether currently has over 400 million users, adds 35 million new wallets per quarter, and holds over $127 billion in US Treasury bonds. If its assets reach $3 trillion, its profits will exceed Saudi Aramco's $120 billion in revenue in 2024. Tether is actively expanding into sectors such as AI, telecommunications, and data centers, and has launched a new stablecoin, USAT, for US users. In 2024, Tether generated approximately $13 billion in profits with a team of less than 200 people and currently holds $11.4 billion worth of Bitcoin. Telegram founder Pavel Durov predicts Bitcoin will reach $1 million. Bloomberg Analyst: US SEC Allowing On-Chain Stock Trading Won't Significantly Impact Crypto ETF Market Share There are reports that the US Securities and Exchange Commission may allow stocks to be traded on the blockchain like cryptocurrencies. In response, Bloomberg Senior ETF Analyst Eric Balchunas wrote on the X platform that the scale of on-chain stock trading may not be as large as expected, as crypto-native users already have their own preferred methods for purchasing investment products, and therefore will not have a significant impact on the crypto ETF market share. Crypto.com to Launch $400 Million Solana Treasury Crypto.com, a cryptocurrency exchange, announced the launch of a $400 million Solana Treasury. Crypto.com is collaborating with STSS to increase market exposure and liquidity for SOL (Solana's native token) and promote long-term adoption by institutional investors.

▌Source: Solana Spot ETF Expected to Be Approved Next Week

According to Blockworks, several Solana ETF issuers are preparing for approval from the U.S. Securities and Exchange Commission (SEC), and there are reports that the Solana spot ETF could be approved as early as next week. A person familiar with the matter expressed "high confidence" that the S-1 form will take effect in the first half of October. The recently submitted S-1 amendment also involves staking functionality, but it is unclear whether it will be included in the final product. The only potential obstacle is a possible U.S. government shutdown, during which the approval process would be suspended.

▌DTCC lists 21Shares Polkadot ETF and Sui ETF

According to market news, DTCC (Depository Trust & Clearing Corporation) listed 21Shares Polkadot ETF (TDOT) and 21Shares Sui ETF (TSUI).

▌Ripple CTO David Schwartz announced that he will leave at the end of the year

Ripple CTO David Schwartz announced that he will leave at the end of the year. According to his LinkedIn information, he has worked at Ripple for more than 13 years, including 7 years as Chief Technology Officer and more time as Chief Cryptographer. Schwartz, who played a key role in writing the XRP Ledger, the blockchain associated with Ripple, said in an article on X on Tuesday: "I'm really looking forward to spending more time with my children and grandchildren and resuming my hobbies that I put on hold, but please note that I will not be leaving the XRP community."

▌Societe Generale's cryptocurrency arm deploys stablecoins on Uniswap and Morpho

Societe Generale's cryptocurrency arm deploys euro and dollar stablecoins on the Uniswap and Morpho platforms.

▌Bitcoin ATM service provider Bitcoin Well plans to raise $100 million to increase its BTC holdings

Canadian-listed Bitcoin ATM service provider Bitcoin Well announced plans to raise $100 million to support its Bitcoin treasury to increase its Bitcoin holdings. Republic Plans to Launch Animoca Brands Equity Tokenization Solution on Solana Investment platform Republic has announced plans to tokenize the equity of Animoca Brands, a global Web3 leader. This initiative will provide global investors with new access to Animoca Brands. Animoca Brands reportedly boasts a portfolio of over 600 leading Web3 companies and leverages tokenization and blockchain technology to provide consumers with digital property rights. Currently, Animoca Brands' stock is not listed on a public exchange, and investors traditionally access the company's equity through the over-the-counter (OTC) secondary market. Republic's equity tokenization solution will leverage blockchain technology to create a more efficient and transparent investment method, expanding investor access while adhering to regulatory requirements. Tokenized equity will be minted on the Solana blockchain and distributed to participating investors' wallets. Token trading will be facilitated through Republic's global marketplace. More details about the tokenization process will be announced later.

Important Economic Dynamics

▌Federal Reserve Collins: Further small interest rate cuts this year if data supports

Federal Reserve Collins said she is open to further interest rate cuts as she expects price pressures to begin to ease sometime next year. Collins pointed out: "It may be appropriate to further reduce the policy rate slightly this year, but this must be justified by the data." She said she supported the Fed's decision to cut interest rates by 25 basis points to a range of 4%-4.25% earlier this month because the move would help risk management in balancing employment and inflation targets. But she added: "I still believe that maintaining a moderate tightening stance is appropriate as monetary policymakers need to minimize the risk of further weakening in the labor market while restoring price stability."

▌The U.S. SEC notified employees that they need to make contingency plans for a possible shutdown

The email shows that the U.S. Securities and Exchange Commission (SEC) notified employees that they need to make contingency plans for a possible shutdown at midnight.

▌Federal Reserve's Goolsbee: The lack of Bureau of Labor Statistics data caused by the government shutdown will have an impact on the Federal Reserve

Federal Reserve's Goolsbee said that the employment report and CPI are crucial information for the Federal Reserve. The lack of Bureau of Labor Statistics data caused by the government shutdown will have an impact on the Federal Reserve. Fed Chair Goolsbee: We do not want to cut interest rates prematurely based on the expectation that current inflation is temporary. Fed Chair Goolsbee said he does not want to cut interest rates prematurely based on the expectation that current inflation is temporary. The probability of a 25 basis point Fed rate cut in October has risen to 96.2%. According to CME's "Fed Watch": The probability of the Fed keeping interest rates unchanged in October is 3.8%, and the probability of a 25 basis point rate cut is 96.2%. The probability of the Fed keeping interest rates unchanged in December is 0.7%, the probability of a cumulative 25 basis point rate cut is 21.9%, and the probability of a cumulative 50 basis point rate cut is 77.3%. What is a multi-signature cold wallet? A cold wallet is a method of storing cryptocurrency that is kept offline and disconnected from the internet. This setup makes it more difficult for hackers to remotely access funds. By keeping private keys offline, cold wallets reduce the risk of cyberattacks such as phishing or malware. Multi-signature technology requires multiple private keys to approve transactions, while single-signature wallets only require a single key. Think of it like a joint bank account, where any withdrawal requires approval from two or more signatories. This additional layer of security means that even if a single key is compromised, an attacker cannot unilaterally transfer funds. A multi-signature cold wallet requires multiple private keys from trusted parties to approve and authorize transactions, enhancing security by preventing a single point of failure. Despite the security advantages of multi-signature wallets, they are not immune to attack. Hackers often exploit weaknesses in implementation, human behavior, or third-party services. To make multi-signature cold wallets more secure, use higher signing thresholds, implement multiple layers of authentication, and store keys in secure, geographically dispersed locations. Multi-signature cold wallets remain one of the best options for those looking to protect their cryptocurrency assets from theft and fraud. However, their complexity and potential vulnerabilities should not be overlooked, especially in the event of a supply chain attack.